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Commission tables Park Avenue revenue bond; engineers outline constraints on Highway 5 and Deadwood supply line

City Commission of the City of Lee · September 16, 2024
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Summary

Commissioners tabled Resolution 2024-11 (revenue bond for Park Avenue water) to allow a bonding briefing; engineers discussed upsizing the Deadwood supply line to 8 inches to meet expected flows, DNR review timelines and the need to update a 2006 facilities plan to meet new DNR requirements for the Highway 5 water/sewer project.

The commission voted to table Resolution 2024-11, a revenue-bond measure tied to the Park Avenue water project, and asked the Black Hills Council to brief commissioners on bonding requirements at the next meeting. Staff said the tabling will allow commissioners time to understand bonding mechanics and the in-and-outs of loan administration before committing the city to a bond issuance.

Engineers answered detailed questions about the Deadwood water-supply line and an associated project to upsize an existing 6" line to an 8" line. Staff said the design is based on flow projections provided by the City of Deadwood and the sanitary district; upsizing aims to accommodate expected peak flows and reduce cavitation, but tank ownership and decisions about additional tanks or valve modifications rest with Deadwood. Commissioners and residents asked whether valve sizing, a PRV, or a third tank would alter system dynamics; engineers described plans to add a PRV and emphasized that the design reflects the flows supplied to the project team.

On the Highway 5 water/sewer project, engineers said the city must update an older facilities plan (original submission circa 2006) to comply with revised DNR requirements. Staff signaled an October 1 window for state-plan placement, with the possibility that a refreshed or amended facilities plan could change the schedule; if submission slips into the next quarterly cycle, funding opportunities could shift into early 2025. Commissioners pressed for more detailed planning on lift-station siting and sewer capacity, raised alternatives (routing down Kirk Road or along Mickelson Trail) and warned that sewer design cannot be advanced without a clearer start/stop point or additional customers to sustain a lift station.

Because of these pending approvals and the need for a DNR/Black Hills Council review, staff recommended additional engineering and coordination before the commission proceeds with bonding or construction advertising.