Basin may stop sewer project for now

The future of the sewer project was discussed at length at the Basin Town Council meeting on Oct. 9. The council contemplated if they should move forward with the project as it would likely mean sewer rate increases. Neither council members nor mayor want to increase the rates. 

Mayor CJ Duncan reminded the council that two weeks prior there was a discussion on funding options with USDA. With the U.S. government shut down, there is no one available at USDA. 

He asked the council whether the town should continue working with AVI Engineering or finalize the contract and move on. Councilman Brent Godfrey said he thinks the town should finalize the contract. Councilman Chuck Hopkin seconded. 

During the discussion portion of the motion, town engineer Jesse Frisbee from Eagle Engineering noted that if the town rejects the bid from Wilson Brothers, he believes that AVI would be done anyway. The town would reject the bid because they don’t have funding in place. 

Town attorney Kent Richins noted that the town does not need cause to get out of the AVI contract anyway. He added that if the town does need an engineer company for the project later, Eagle Engineering could fill the gap. 

Duncan said that the second part of the discussion under sewer is the funding. “The current funding we have for the sewer project, as soon as USDA is open again, we can notify them we want to close it out completely. If that is the case, we would have borrowed $1,887,000 with an annual payment of $70,144.” 

The second option would be to finish out the project with the funds that are earmarked for it. “If the project moves forward the town would have to fulfill the balance of $2,000,712. That is an additional $835,000 to the $1,887,000.” 

If the town opts for the $835,000 there is a grant portion available to the town for $1,412,000. This would turn the annual payment to $102,000 versus the $70,000. Duncan doesn’t believe the grant can be used to pay off the portion of the loan the town has already used. He added there are other options available, but they would only put the town into further debt. 

“Publicly we need to discuss what would happen if we continued with option two and our payment goes up to $102,000. That is an additional $32,000 a year we would have to collect from our sewer revenues. Which means a strong possibility, very strong possibility there would be a sewer rate increase.” 

It could potentially be about a $6 a month increase. Duncan said he is not comfortable with that, nor does he think anyone in the town would appreciate the increase. At the same time, the money must be paid back. 

“As a council. if that is decided that is the way we are going to go, the money has to be paid back and the only way to do so is to raise the sewer rate. That is my opinion.” 

He believes the first option is the best. There is around $450,000 in the sewer reserve account. It can be used on a project for the current sewer pond. The town would still have to work with Eagle Engineering, the Wyoming DEQ and EPA for said project. 

Richins asked if things turned around regarding funding could the town then proceed with the bigger project? Duncan indicated yes. 

“The current sewer design we have accepted has enough storage in it, it could serve Basin for 50-60 years easily at that size. Our annual growth is less than 2%. The size of the sewer lagoon proposed would be more than adequate to handle what we have now and in the future for a long time. Barring some huge boom.” explained Duncan. If funding becomes available, the town would have the design ready to go. 

Town administrator Deaun Tigner said that at a previous meeting regarding this project it was said that the town might have to check with the DEQ and/or EPA to make sure the town is meeting the requirements. 

Councilman Mike Dellos stated, “If you are going to go through a different process .... I think they will fall in line with this, but you’d probably have to go through a different process. Jesse would probably have to get a hold of DEQ.”  Frisbee would share with DEQ the town’s thoughts, and it would have to be OK’d. Duncan told Dellos he was 100% correct. 

Duncan stated he would like an answer from the council at this meeting. Frisbee suggested the town talk to DEQ prior to canceling the loan from USDA. “To make sure they are OK with us going a different route at this time.” 

Town Foreman Tony Harrison stated that the town could dump up to 2 million gallons per day with the current permit. His intention for the following week is to start dumping 1 million gallons a day. They are dumping about 500,000 gallons per day now. This will lower the lagoon, and he intends to shut it up for at least 60 days during the winter. He added that the e-coli count goes up because it freezes. 

The council voted to table the USDA funding decision until Frisbee could do further investigation. 

 ICE RINK/DOG PARK 

Hopkin said the idea was discussed at the Basin Rec District board meeting on Oct. 1. He added that a decision needs to be made about the location. The original idea was to build at Lions Field, west of town. Since then, several other locations have been suggested including near the Boat Dock Park and next to the swimming pool. 

When he inspected what is left from the old ice rink, he noticed there was a lot of scrap metal in area where the parts were stored.  He proposed that the metal be sold for scrap and that money used for the new construction. Currently when scrap medal is sold it goes into the general fund. Duncan said he believes that it does have to go back into the general fund and then it can be reallocated to a line item. The town will need to verify this with the town’s CPA. 

Hopkin continued that the cost for the new 52 x 104 rink is $7,800. There will be additional cost. The Basin Chamber had checked with the Wyoming Outdoor Rec office regarding a grant.  The project would qualify for a Land & Water Conservation Fund grant.  Councilwoman Linda Weeks and Town Administrator will work on the grant application. 

In other business:

• The council passed the dedication of West E Street. 

• The tenant in the previous town hall on South Fourth Street has given notice.