With a pair of 3-2 votes, St. John city council members ended the debate over the nitrate removal plant by accepting two bids for building and water line construction work.
Council members awarded part one bid for waterline construction to APAC Kansas Shear Division, Hutchinson, for the amount of $523,255. In a separate motion, APAC was awarded part two of the project, plant construction, in the amount of $1, 666,387. Council members Bob Stimatze and Mark Bryant were the two dissenting votes.
"I don't think the community can afford it," Bryant said. "I don't think people on fixed income or low income can afford this debt over our heads. It's a debt that we're going to have to pay now."
The debt is a $3.2 million dollar grant that the city acquired through the Kansas Department of Health and Environment. There is a 30 percent "forgiveness" on the actually construction cost of the plant at the completion of the project.
The current total amount for the nitrate removal facility and connecting water lines stands at approximately $3,065,622, just over $3 million. Don Heller, EBH engineering consultant said that amount could fluctuate some if there are any big increases in material costs or if something unforeseen comes up during the construction process.
Member Troy Hanson introduced a motion to pay down the debt at the completion of the construction and post loan forgiveness with any expendable funds the city may have at that time. At Hanson's request, city clerk Johnna Stanford prepared a report estimating that the city should have approximately $750,000 available at that time.
"Now, don't quote me on this amount," Stanford said. "This could change between then and now, and we don't want to deplete any of our funds entirely."
Hanson's motion passed unanimously with a goal of a $750,000 payment at the time of completion if possible.
Stanford told members that it may be possible in the future to make additional lump sum payments when the funds are available.
"There is no penalties attached for paying the loan of early," she said.
With the estimated 30 percent forgiveness on construction and lump sum payment the total amount left on the loan with KDHE should be in the 1.5- to 1.75 million dollar range.
"This was the only way I was going to vote for it," Hanson said.
Stimatze stated he voted no on the project because he still did not feel the council had looked into all the options available.
"Personally, I think there may have been a better way to do it, (reduce nitrate levels,)" he said. "I think we could have reduced the nitrates by promoting more private water wells, drilling other wells in different places and at different depths."
Both Stimatze and Bryant felt the loan was a big burden on a small community with a dwindling population.
At the public hearing last week one resident stated that if Lewis could do it, why can't St. John. Lewis put in a similar nitrate removal plant, but most of the work was done by a city employee and the project cost in the $800,000 range.
"I was against it, but now that it's passed, it's time to get together (work together) and build the thing," Stimatze said.
Heller stated at the same public meeting that if a decision on the plant was reached this week it would be approximately one year before the plant would be in operation.