LINCOLN -- The city is looking at two pieces of property in trying to decide the best location for a new water storage tank that will hold 2 million gallons of water.
In a city meeting on the tank project last week, Matthew Dunn, vice president with Crist Engineers, presented the cost estimates for both sites.
Lincoln City Council already has an option to purchase two acres off Jackson Highway, contingent on a geophysical study showing the land would be suitable for a water tank. The city paid Marsha Hedge $500 to have the option to purchase the land for $22,000 any time on or before Dec. 31, 2019.
Hedge's property is located on the west side of North Jackson Highway.
The city also is looking at two acres on the east side of North Jackson Highway owned by Thomas Lee and Gloria Jean Hunton.
Rhonda Hulse, city business manager, said she would talk to the Huntons to see if they would be interested in selling two acres for the water tank. If so, the Council would consider the same agreement it has with Hedge for the Hunton property: paying $500 to have the option to purchase the land, contingent on a geophysical study to show its suitability for a tank.
The city is contracting with Crist Engineers Inc., of Little Rock, for a new elevated water storage tank and pumping station to improve the city's water distribution system. The city will pay Crist $265,000 for its services.
An estimated cost study shows the tank project would cost $4,724,000 on the Hedge property and $4,556,000 on the Hunton property.
Dunn said the cost is less on the Hunton property because it would allow a shorter pedestal for the tank. The elevated tank with an 115-foot-tall pedestal would cost $3.5 million on the Hedge property, compared to $3.3 million for a tank with an 80-foot pedestal on the Hunton property.
For both sites, the concrete pedestal will be 54 feet in diameter and the steel tank will be 98 feet in diameter.
The other main difference between the two is that the city would have to bore under Jackson Highway to install water lines to the tank on the Hunton land, an additional cost of $60,000.
For the Hunton property, the construction estimate is $3,855,000, a 10 percent contingency of $386,000, $50,000 for the land and $265,000 for engineering design for a total estimated cost of $4,556,000.
For the Hedge property, the construction estimate is $4,008,000, a 10 percent contingency of $401,000, $50,000 for land acquisition and $265,000 for engineering for a total estimated cost of $4,724,000.
The city will pay for the project by issuing bonds. Friday, Eldredge and Clark law firm will be bond counsel and Stephens Inc., will sell the bonds on behalf of the city.
The city will have to increase water rates to pay off the new debt but the increase is unknown at this time. Arkansas Rural Water Association is conducting a water rate analysis to help city officials determine how much rates will have to increase to generate enough revenue to make the bond payments.General News on 08/08/2018
Print Headline: Lincoln Considers Sites For New Water Tank