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Manager reports tower repair, lead‑line funding opportunity and proposes in‑house tree crew
Summary
City manager reported a hole found in a northwest water tower requiring welding and interior inspection, said the city scored for another $5,000,000 lead‑service‑line funding offer with grant caveats, announced early payoff of an AMI meter lease and presented a detailed case for creating an in‑house tree‑trimming crew to improve reliability and control costs.
The Peru city manager told the board on July 15 that contractors found a hole at a joint in the Northwest (Gallahans) water tower and that the city will lower the tank for welding and a follow‑up internal inspection; staff said the tower remains operational at about 80% volume while repairs are planned.
The manager described a new funding opportunity for lead‑service‑line replacement: the city has been offered $5,000,000 that would close in fiscal quarter four, with at least 50% structured as a grant but a state caveat that 75% of previous grant funds must be spent to qualify. “We have been offered another $5,000,000,” the manager said. He explained this would be part of a two‑year, $10,000,000 project and flagged the risk that unless the state waives the 75% requirement the city may not qualify. Staff said they have roughly 50% of right‑of‑entry (ROE) agreements and are continuing door‑to‑door outreach and mail and media outreach to increase participation.
The manager also reported the utility's 10‑year AMI meter lease has been paid off two years early using debt service reserve interest, freeing up funds for other projects.
Why it matters: the tower repair affects local water infrastructure operations; the potential $5,000,000 SRF/grant award could reduce ratepayer costs for lead‑pipe replacement if the state conditions are met; in‑house tree trimming could change ongoing maintenance costs and service reliability.
Tree trimming discussion Board members and staff spent extensive time weighing whether to move tree trimming from contractors to an in‑house crew. Staff said recent contractors have been unreliable, producing a 16–17 year trimming rotation and inconsistent circuit coverage. The manager argued an in‑house crew could reduce long‑term costs and improve reliability while creating local jobs; staff outlined an example financing scenario in which an up‑front equipment investment (figured in discussion at roughly $500,000) would be depreciated over a decade to produce an annual cost roughly comparable to current contract spending but with year‑round availability. One board member cautioned the city should not speculate on costs without exact quotes; staff committed to return with firm proposals and vendor quotes.
On enforcement and ROEs Staff discussed the possibility that the city could adopt an ordinance to disconnect service for customers who refuse free lead‑service‑line replacement after notices and deadlines. The manager said an ordinance would likely be required and that legal staff must draft specific language and fee schedules; board members raised concerns about fairness and impacts on vulnerable residents and asked staff to review other communities' ordinances before proceeding.
Next steps Staff will continue ROE outreach, seek clarification from state SRF administrators about the 75% requirement, and return to the board with cost estimates and implementation plans for the in‑house tree‑trimming proposal and any recommended ordinance language before taking formal action.
