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Board approves broader water-project scope; members discuss potential rate impacts
Summary
The Utility Board approved a change in scope to pursue larger water projects to qualify for low-interest state funding and discussed the need for a rate study and possible future rate adjustments tied to Parkersburg utility charges.
The Utility Board voted to approve a revised scope for its water projects so the city can seek a larger state loan package and qualify for lower interest rates. Staff told the board expanding the project list for the loan application will improve the city’s chance of receiving favorable financing.
"We were trying to get a loan of $33,000,000-ish," Speaker 3 (Board member) said, describing the prior application. Staff explained state funding reviewers excluded the city because current water rates did not meet the program’s affordability metric; expanding project scope raises the amount the loan would cover and could move the proposal into the low-interest range.
The expanded scope discussed included small-diameter main replacements, reinforcements previously listed as Phase 2 work, valve replacements and a larger Thirteenth Avenue water-main replacement stretching from Ninth to Sixteenth Street with a tie-in at Grand Central. Staff said the Thirteenth Avenue/Main Street segment is urgent because records show repeated pipe breaks.
Board members discussed rate implications. Several members noted increases being considered by Parkersburg’s utility could raise the city’s costs under an interlocal agreement, and that the board will need a clearer estimate of the city’s share of any Parkersburg increases.
"When they get new pickup trucks, when they get new equipment, we're assessed a portion of that because that's being used to maintain our part of the system," Speaker 1 (Chair) said, describing the long-standing interlocal cost-sharing arrangement. Amy (Staff member) said she has not yet received a finalized Parkersburg rate decision and will report back when the utility board finalizes its changes.
Speaker 5 (Board member) moved to approve the scope change; the motion passed on a show of hands. The meeting transcript does not include a numeric roll-call tally.
Board members directed staff to work with accountants to revise and resubmit the loan application and to return with a rate-study recommendation at a future meeting. Staff said the board will consider a rate study and possible rate adjustments in the near term.
