Ogden pumps $51.6M plan

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OGDEN -- After reviewing a flood of data, the city council decided Thursday night to pursue a scenario that includes $51.6 million in financing to upgrade Ogden's antiquated water system.

The scenario was among three options considered by the council during a work session to review results of a $67,000 draft study completed by Lewis, Young, Robertson and Burningham, a Salt Lake City consulting firm.

The city council plans to present the scenario to the public during a meeting later this month and may adopt the option by the end of the year.

The scenario calls for the issuance of $51.6 million in bonds next year to complete all necessary water distribution and sewer projects, purchase equipment to correct water odor and taste problems and partially fund stormwater projects.

It does not provide any funding to repair the city's water treatment plant.

Under the scenario, residents without secondary water who use 1,500 gallons would see their monthly water bills increase from $8.97 to $13.09 during the first year.

Bills for residents who use 6,500 gallons a month would increase from $14.35 to $19.29 a month, while rates for those who use 30,500 gallons would jump from $48.07 to $61.38 a month.

John Patterson, the city's chief administrative officer, said while the $51.6 million price tag for the scenario is a "huge chunk" of money, it would help address some of the city's most critical water infrastructure problems.

"It's a good start," he said. "It moves us forward."

Councilman Rick Safsten said the option does not include "any kind of luxury," but he seemed satisfied it would helping alleviate some pressing infrastructure problems.

The option was chosen by the city council over another proposal that called for $98.2 million in bonding in 2008 to complete all of the city's water projects, including repairs at the treatment plant.

The council also decided against a third scenario that called for $51.6 million in bonding next year and the issuance of $46.6 million in bonds in 2011 to upgrade the plant.

The study presented to the city council states that neither the city's water, sanitary sewer nor storm sewer rates produce enough revenue to sustain its infrastructure.

The rates also do not generate enough revenue to pay for the daily costs of producing water and sewer services for customers, the study says.

The city has borrowed from other funds to repair broken systems and pay for operational costs in its sewer fund, the study states.

Insufficient monetary reserves has resulted in the city using "stopgap measures" to address some of its infrastructure needs, according to the report.

"This practice has caused a difficult cycle in which structures need replacement more often," the report says, "thereby costing the city more money in the long run."

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