A Special meeting to discuss a $7,000,000 loan at 1% interest and a 20 year loan term through the Department of Environmental Quality (DEQ) for water improvements was held on June 6, 2012 at 6:00 pm in the Gooding Municipal Building, 308 5th Ave West, Gooding, Idaho.
Present were Mayor Morton, Councilpersons Arkoosh, France, Houser and Magnelli.
Present were Public Works Director Todd Bunn, Deputy City Clerk Morri Hall, City Attorney Hobdey, City Clerk Carmen Korsen and City Treasurer Kathy Lehr.
Jim Mullen and Carleen Herring
The purpose of the special meeting was to discuss the priority of water improvements and how much of the loan offer the City feels they need to utilize for improvements.
Priority 1 improvements include basic improvements to the water system to meet water demands without a gravity irrigation system. These improvements include the purchase of 6.68 cfs of water rights, construction of two (2) new wells, and the installation of 7,000 feet of piping. Estimated cost of priority 1 improvements is $4,800,000.
Priority 2 improvements include improvements to meet future water demands of City growth estimated through 2017. These improvements include the purchase of 3.34 cfs of water rights, construction of one (1) new well, and the installation of 3,200 feet of piping. Estimated cost of priority 2 improvements is $2,260,000.
Priority 3 improvements include the installation of 52,000 feet of piping in order to meet fire flow requirements throughout the City. Estimated cost of priority 3 improvements is $5,109,000.
The City council agrees they should utilize the entire loan from the DEQ as the interest rates and construction costs are at an all-time low. The money from DEQ cannot be used to purchase water rights; therefore an additional loan for approximately $2,004,000 will need to be taken out for water rights. The $7,000,000 loan would cover Priority 1, 2, and part of 3. Mr. Jim Mullen from Keller Associates will put together a Priority 2.5 plan to utilize the entire amount of the DEQ Loan.
Councilman France moved to authorize the Mayor to write a letter to the Department of Environmental Quality accepting their offer of a $7,000,000 loan at 1% and a 20 year loan term for water improvements. Motion seconded by Councilman Arkoosh. Motion carried unanimously.
Special Meeting Scheduled
A Special meeting to discuss a $7,000,000 loan at 1% and a 20 year loan term through the Department of Environmental Quality for water improvements was scheduled for July 2, 2012 at 6:00 pm.
There being no further business, the meeting adjourned at 8:00 pm.