Marion discusses water options
Staff reporter
Marion City Commission narrowed their choices of water distribution by eliminating options of a wholesale water district and purchasing water from Hillsboro.
City administrator David Mayfield reported city officials, including Mayor Martin Tice, recently attended a meeting with representatives from Kansas Department of Health and Environment, Kansas Rural Water Association, USDA Rural Development, and the City of Hillsboro.
Mayfield explained the differences to the commission regarding choices available for the city. The choices are:
1) Create a wholesale water district. Mayfield said it could take two to three years to complete and form a district. Marion would be responsible for installing a water line from Marion to Nighthawk, where an existing water line provides water to Peabody residents. The cost of the five-mile line would cost more than $1 million. Marion would be responsible for maintenance to the line. A cost would be determined for sharing line use with Peabody. Total costs for the new water district could be from $6.5 to $7 million.
2) Establish a water district near the Hillsboro water plant.
3) Establish a water district near the Marion water plant.
The first three choices would require acquisition of land and existing operations. Mayfield pointed out the participating entities, Marion, Hillsboro, and Peabody, would not be compensated equally.
4) Purchase water from Hillsboro water plant. This option was proposed by Hillsboro officials but no contract had been drawn by Hillsboro for Marion's consideration.
Mayfield said it probably would be January before Hillsboro was ready to negotiate. Hillsboro would charge Marion an initial cost of $2 per 1,000 gallon water unit. Marion can produce water for $2.03.
However, Marion still would incur the cost of a water line to Nighthawk and use of the Peabody water line from Nighthawk to the Hillsboro water plant.
Other concerns noted were the investments already made in the Marion water plant.
"The plant is old but it's still in good shape," Mayfield said.
Other drawbacks to the Hillsboro option were Marion eliminating its second source for water, Hillsboro depending on electricity to pump water to the plant while water comes to the Marion water plant via gravity flow.
The city still would be required to test the water.
5) Make improvements to Marion water plant as proposed. In a verbal poll, commission members agreed this would be the best solution.
The city has been approved for a $800,000 loan with KDHE. Mayfield said more funds are available if the city wants to explore the option of additional upgrades.
The city also has an application with USDA Rural Development for a loan and grant. All financial options will be considered, Mayfield said.
The main concern was keeping the cost of water affordable for the city's customers. Improvements to the plant, other than the original $800,000 upgrade, will cause water rates to increase.
With a new wholesale water district at Marion Reservoir, the cost of water per 1,000 gallon unit could be as much as $3 to $4. Current city rates are $2.50 per 1,000 gallon unit.
If water was purchased from Hillsboro, the cost could be $3.22 per 1,000 gallon unit.
Mayfield stated his other concern was the plant compliance with KDHE. He was told by KDHE officials as long as the city was in the process of upgrading the plant, there would be no violation cited.
Water plant improvements originally included the necessary upgrades to meet new EPA standards, and the installation of an ozone disinfection system.
Upgrades to meet the required standards were estimated at $800,000. An ozone system would cost $1.6 million.
A meeting will be held with the city's engineers to discuss options before the commission will make a final decision.
