City council OKs plan to sell water to Marion
Hillsboro City Council met June 21 and approved a proposal for wholesale water purchases to the city of Marion.
The rough draft of the proposal was presented by city administrator Steve Garrett.
"We told them when we had a fixed price for our improvements, we would come back to them with a cost and a proposal," said Garrett.
According to Garrett, the city figured out the portion of the rural utilities services loan that applied to the water plant and the estimated annual cost of operating the plant. The selling price is $1.60 per 1,000 gallons.
The contract with Marion will be like the one with Peabody which allows Hillsboro to do a periodic review of the costs and make necessary changes.
"I have spoken to Jeff Benbrook at Peabody and he understands that all three cities cooperating drives the cost down," said Garrett. "They are willing to talk about using their line as a conduit."
"The cost of $1.60 per 1,000 is what the water would cost them when it leaves our plant," said mayor Delores Dalke. "It needs to be clarified. We all know what we are talking about, but I'd hate for it not to be seen that way."
"If the need for water goes up in Marion and Peabody, we can address it at that time," said Garrett. "If we all get on the same page, we'll all benefit."
According to Garrett, Hillsboro can produce enough water for three cities and the cheese plant if it moves to Hillsboro. The water plant will produce three million gallons per day.
"I know a question Marion might have," said council member Matt Hiebert. "What if they have a boon in their industrial park and need an extra 500,000 gallons? They did have that question when we talked about this the last time."
According to Garrett, Hillsboro would have to do some expansion to the line coming in to accommodate more raw water. All three cities are in the same position if the need for water goes up. The city then would have to make plans accordingly.
"Is there enough water with the upgrades if we are fortune enough that Cottonwood Cheese does come here, that we are not going to start that whole expansion process?" asked Dalke.
"We'll be fine for now," Garrett said. "We designed the plant for future growth."
If a large water user does move to any of the towns, a user fee could be charged to the user.
