Council considers modular housing for water, wastewater staff; staff to return with detailed plan

Saint Helena staff presented council members on June 24 with a proposal to rehabilitate existing on-site housing or install modular housing units at the city—ilter/water and wastewater treatment plants to address recruitment and retention challenges for certified operators.

Deputy City Manager Dusty Milton and Utilities staff said the city historically provided a trailer at the water treatment plant for on-site staff, but the existing unit is long-vacant and estimated to need roughly $100,000 in repairs to be habitable. Staff presented three funding options (enterprise funds, general fund, or grants) and three quality levels of factory-built modular units. Estimated per-unit installed costs ranged from roughly $88,000 to $162,000; staff's preferred scenario was to install three higher-range modular units (two adjacent to the water plant, one at the wastewater plant) at an estimated total cost of $486,000.

Milton and staff explained benefits: better emergency readiness for a 24/7 utility operation, lower reliance on expensive contract operators, reduced overtime and travel time for employees who currently commute long distances, and potential long-term payback through rent revenue. Staff also noted legal constraints: grants often require units to be available to the public and cannot be restricted to city employees, which makes grant use complicated if the council wants employee-only housing.

Council members pressed on funding and long-term maintenance. Finance and city staff said the water enterprise fund has some flexibility to support a unit at the water plant but using general-fund reserves for additional units would be a policy choice; staff said financing was not required and the city could pay from reserves but could also explore a mixed strategy. Council members discussed unit mix (1- vs. 2-bedroom), durability, payback calculations and whether the units could count toward affordable-housing obligations. Staff said such units could be considered accessory dwelling units for certain purposes and that each unit still would be subject to applicable housing rules.

After extended discussion the council gave staff direction to refine the proposal, with a leaning toward two units (to be split between the water and wastewater sites) and options for 2-bedroom units, favoring the approach that limits general-fund exposure while preserving flexibility to rent to city employees. Staff will return with updated cost estimates, a draft lease/policy for employee occupancy (market or subsidized rent), a maintenance plan, and options for funding and procurement to present for a formal budget decision.