New Water Plant on Ames Horizon

Council members could finally seal the deal on a land exchange, making way for a new water treatment plant.

Members will be asked during the regular meeting Tuesday to approve three resolutions allowing the city to buy one piece of property and then trade it for a piece of federally-owned land that the city has eyed for a new water treatment plant for more than two years.

John Dunn, director, will also ask for the council's permission to take out an $11.4 million loan that will be used to design the new water plant. The total plant cost is estimated at $63.9 million.

As part of the deal, the city would buy two parcels northwest of the from H.R. Holdings, LLC. The parcels totaling, 43.4 acres, cost $825,000. The city would then trade the 43.4 acre parcel for a 40-acre parcel owned by the National Animal Disease Center south of 13^th Street and east of the Skunk River, as described in a press release from the city.

“I'm tickled that this all came together for us,” Dunn said.

Dunn said the land officials want from the disease center is appraised at $740,000. It's not exactly an even trade. However, the location is worth millions to the city because it's located across the river from the old plant, allowing the city to use some of the old plant's infrastructure like storage tanks, Dunn said.

The deal would have to be approved by the council and the USDA has to clean the property ensuring that it's not contaminated, as reported in the Ames Tribune.

The new plant would have a capacity of 15 million gallons, three million more gallons than the current facility, which has been in operation since 1924. The plant has been expanded and updated, Dunn said, but it's an 85-year-old facility at heart.

Currently, the plant takes water from 80- to 150-foot wells and treats it and softens it with lime, before distributing it for use. The new plant would do the same, but newer equipment would make it more efficient and less susceptible to terror threats and natural disasters.

The cost of construction is being paid for through a series of water rate increases that have already begun.

The city increased rates by 10 percent twice in the past two years and a third increase of 8 percent occurred in July bringing the average Ames residential bill to $20 a month, Dunn said.

Dunn anticipates two more water rate increases of 6 to 8 percent in the summers of 2012 and 2013 bringing the average Ames residential water bill above $22 a month.