Prescott applies for funding to clean city well

Posted 2/20/23

PRESCOTT – The City of Prescott’s Well No. 3 has been shut down since September 2021 because of high nitrate levels. The city plans to make an application with the State Safe Drinking Water Loan …

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Prescott applies for funding to clean city well

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PRESCOTT – The City of Prescott’s Well No. 3 has been shut down since September 2021 because of high nitrate levels. The city plans to make an application with the State Safe Drinking Water Loan program to install a reverse osmosis system that will remove both nitrates and Perfluoroalkyl and polyfluoroalkyl substances (PFAS).

The city plans to seek approval for $3.8 million from the program, City Administrator Matt Wolf told the city council at its meeting Monday, Feb. 13, which forgives up to 70 percent of the total borrowed. The city would have to have interim financing for the project, and the council unanimously passed a resolution stating those funds can be repaid from water fund loan proceeds in the future.

The city has discovered a low level of PFAS, known as “forever chemicals” in all three of its wells. Testing has shown the PFAS level at between 4-8 parts per trillion. The maximum contaminant level is 70 ppt.

“However, it is expected that relatively soon the EPA will come out with new standards much lower that would be adopted by the DNR, causing us to address PFAS in all three wells,” Wolf said.

Options for filtration systems run from between $1.3 million to the $3.8 million.

“Until the city has a complete picture of a potential new PFAS maximum contaminant level, we are submitting to the program for option #3 with the ability to scale back if the new levels set by the EPA can be met with just reverse osmosis treatment or the city does not receive full funding,” Wolf said.

The other two options have lower filtering capabilities.

Bonding for streets

The city council approved a resolution executing the borrowing of $4.67 million to pay for the Locust Street rebuild happening this year and Elm and Washington streets in 2024.

Sean Lentz of Ehlers Financial said the bond sale was held the morning before the meeting, and that six bids were received for the debt issue. The city will be borrowing the money from TD Securities at an interest rate of 3.662 percent. The money will be repaid over 20 years.“It was good news. We were looking at a true interest rate of 4.65 percent. Thankfully, instead of continuing on the trend they were on, they have started to come down a little bit. The market has moved in our favor,” said Lentz.

The council also passed a resolution giving notice that it intends to

See PRESCOTT BOARD, PageA-11 put in place special assessments as part of the road projects. Residents will be assessed the cost of the curb and gutter portions of the projects, as well as new sewer laterals to homes.

Residents will receive notification of the special assessments, and a hearing will be held at the March 13 city council meeting.

Bid opening for the project is set for April 5 with construction on Locust starting May 1. Completion is planned by October.

The special assessment estimate for curb and gutter is $29-$30 per foot, while the cost for the new sewer laterals will cost property owners about $2,000.

Water rate study

The council approved a resolution to have Ehlers Financial work with the state Public Service Commission on a full water rate study. Ehlers will be paid $9,000, under the resolution.

Ehlers presented to the council last month, and they estimate the new city water rate after PSC review would increase about $102 annually for residents.

The PSC review will take place this year and rates won’t change prior to the PSC decision. The city last sought a full PSC water rate review more than two decades ago.