After the invocation, the pledge of allegiance, the approval of minutes from the November meeting and the examining of the financial report, and the reports, Mayor Terry Oliver moved to an agenda item he called good news. “We’ve been trying for a while,” he began. “When you’ve got old water and sewer infrastructure, you need money. And the Natural Resource Division of the [Arkansas] Department of Agriculture has approved a loan to Prescott for up to $3.047,705.75 from the Drinking Water State Revolving Fund.” The loan comes with a principal forgiveness amount of $350,000, meaning Prescott will not be billed for that amount of the loan.
The project for which the loan would be used is to replace the water intake valve used by Prescott Water & Light to gather water from the Little Missouri River and extend the new valve farther into the river to avoid taking in as much sand, which has been responsible for damaging the pumps. The Little Missouri’s shifting, beginning in 2014, is responsible for the increase in the sand.
Vice President of the Engineering Firm A.L. Franks, which would undertake the project, Kiron Browning told the council the project would cost about $3.5 million and would place the valve where the Little Missouri’s main channel is flowing. He added that the loan was for 20 years at four percent interest. Browning also said the Arkansas Natural Resource Division estimates a 143 percent increase in water rates would be needed over that time, but that the “final revenue increase will be determined at loan closing” and an independent study of water rates preparatory to an increase would be required as well.
Prescott’s Superintendent of Water and Sewer said the news is being presented now to meet a deadline by the end of the year for Mayor Oliver to sign an acceptance letter reserving the funds. The acceptance is not binding should the city decide to pull out of the deal, but fee payments could be imposed.
During discussion, whether the project would be effective and the prospect of the project’s cost to Prescott ratepayers brought up questions. Councilwoman Patricia Roberts asked whether the city could be sure the project was a lasting fix. Browning said he expected the placement of the intake valve farther in to the river would avoid sand and described an additional way the project would work, “We're also looking at putting in some different types of pumps that are not affected by the sand as much.” He estimated the problem would be abated for “another 20, 30 or 40 years, maybe.”
Nelson said Congressman Bruce Westerman has been approached with a request for help from the Army Corps of Engineers in dredging sand near the intake location. Neither Nelson nor Browning, when pressed, would say the solution is permanent, since there is the possibility the river’s flow could shift again.
Councilman Howard Austin asked if the city still had to go through with the loan and the project if the rate study found that the required rate increases would be too high. Browning said the city could back out even at the point of the signing of the loan documents, but would be liable for paying for what work, including bond work and designing work, that had already been done.
Councilman Ivory Curry asked whether the Prescott water system would be able to handle sudden new demand for water, perhaps from a business or an apartment complex. “That's a tricky question to answer,” Nelson said. “We have a two million gallon a day water treatment plant that can operate for up to two million gallons a day. If a plant comes in and wants more than that, you'll have to increase the plant no matter what. That's our size and that's all we can do. Hopefully if another business comes in and needs more water, then we would have incentive to increase it and economic development would help us with that.”
Browning then weighed in on what would occur should the present intake system fail. He asked Nelson how many days’ worth of water were in the city’s holding pond. Nelson replied, “About a month.” “Without the intake structure, the plant doesn’t produce anything, so that’s why this one was a high priority for the last couple of years,” Browning said.
Curry, addressing Nelson, said this was the project that Nelson had been working to try to find funding for for a long time only to come up empty. Other council members agreed that the council had heard about the need for the project for a long time. Curry said, “I want to make a motion we move forward to work towards an ongoing problem with sand and water.”
Asked if he could guarantee the project would solve the problem of sand intake in the valve permanently, Browning said he could not because of the potential future shifting of the river.
Austin seconded Curry’s motion, which was to allow Mayor Oliver to sign an agreement to accept the loan. Roll-call voice vote revealed the motion to pass, with one no by Councilman Susie Meeks.
The council next unanimously passed a 2023 budget amendment allowing for the change of the city’s profit in that year from $254,000 to about $200,000 because of expenses unforeseen by that budget. The amendment was presented by Carl Dalrymple, city accountant, who also reported that 2024 budget was still being worked on and would be presented soon.
The 2024 budget will omit paying for two things, Dalrymple said, the Nevada County Rescue Unit’s utilities and the Nevada County Depot because those two entities have been judged able to pay those expenses themselves. The parks budget would also be raised up $4,000 to $110,000. Dalrymple said at present the profit projected for 2024 is $255,591 but would likely be a different number once the budget is presented.
The next item on the agenda was to complete the committee that would choose the city’s next attorney now that seven candidates have applied. Mayor Oliver asked for volunteers. As a result the committee will consist of seven members, including department heads and three city council members. Forming that committee will be Bruce Bean, City Hall Office Manager; Larry Jones, Jr., Electric Operations Manager; Mary Godwin, Prescott-Nevada County Economic Development Director, along with council members Howard Austin, Ivory Curry and Satarra Williams.
A citizen complaint led to the final agenda item, to review the vicious animals ordinance. The citizen reported on hearing excessive loud barking at night from a neighbor’s pets. Members of the council agreed that the $5-25 fine range was a bit low for misdemeanor infractions but agreed to table any action pending research on neighboring Hope’s ordinances relating to the problem.
Before the agenda items, Prescott-Nevada County Chamber of Commerce Executive Director Jamie Hillery gave a report, saying the Chamber’s year of events is over, the chamber having participated in coffees, a Breakfast with Santa, a Christmas parade and providing necessities for 69 children through the project Giving Tree.
Prescott Police Chief Ann Jordan reported that one officer will be certified as a result of graduating Friday from the Arkansas Law Enforcement Academy in East Camden and another will be going to the academy in January. She also praised community sponsors for helping with PPD’s Blue Santa program which provided presents to 40 children.
She closed by thanking Mayor Oliver and members of her staff for their contributions to Jordan placing in the top ten for the city employee of the year award.