City to tap sales tax funds for pipeline

One new councilman was welcomed into the fold during the Carrington Reorganization meeting last Monday night.

During the meeting held on Monday, July 8, Mayor Tom Erdmann appointed Jesse Nelson to take Chase Pederson's seat. Troy Roundy was voted in to the council president's seat and Neil Fandrich into the vice president's seat.

The meeting was adjourned and the council meeting began.

During the meeting, Erdmann spoke about the Red River Valley Water Supply Project (RRVWSP) and shared a little bit of history.

"Carrington's involvement in the project started in 2016 when the economic development board recommended city council approval of a $21,982.50 grant to the Garrison Diversion Conservancy District (GDCD) to assist in a study of using a 6-foot diameter pipe to transfer water from the Missouri River south of Washburn to Baldhill Dam (Lake Ashtabula) on the Sheyenne River north of Valley City. The prime users of the water being the cities of Fargo and Grand Forks at 85 percent, and the balance of 15 percent to smaller users along the pipeline consisting of cities like Carrington, Jamestown, Cooperstown, Valley City, et cetera, and also all the local rural water districts. Initially, there were 35 entities that signed up for the project with different CFS [cubic feet per second] amounts of water," Erdmann said.

He continued saying, "At that time, the board and council indicated a potential need for 2.5 cfs of water from the pipeline. The 2.5 cfs of water equates to 650 million gallons of water annually available to Carrington."

The RRVWSP started construction in 2021 with a one and a half mile 6-foot pipe placed just south of Carrington under Highway 281 and the Red River Valley and Western railroad.

The Lake Agassiz Water Authority (LAWA) and the GDCD negotiated terms for financing this estimated $1.1 billion dollar project through the ND State legislature whereby the state has committed close to the $1 billion dollars on a cost share whereby the state has agreed to fund 75 percent as a grant with the balance of 25 percent to be paid by the users. The Bank of North Dakota has agreed to finance the users of the project over a 40-year period with an interest rate not to exceed two percent."

Erdmann went on to say, "The time has now come for the smaller users to declare their actual nomination of water which is now supported with some financial costs for the cfs amounts of water initially chosen. Carrington's original choice of 2.5 cfs was based on the potential for an agricultural value-added processing plant looking to locate near Carrington.

The RRVWSP and LAWA are asking the small users to declare their intentions to how much water and what the financial commitment towards this selection is estimated," said Erdmann.

He ended with saying, "Since our selection for the RRVWSP water is strictly for industrial use, and our existing water plant has the capacity to produce 720 million gallons of water annually, he is recommending the council pass a motion to reduce the initial cfs selection from 2.5 cfs of annual water to .5 cfs or 130 million gallons. This .5 cfs selection will put the city's financial commitment at $90,978.75 with interest only payments of $977.60 semi-annually starting in 2025.

The decision of selecting .5 cfs will reflect the financial obligation upon completion to the project in 2034 as follows: Our annual debt service, $28,861.40; operations, $1,034.80; maintenance and administration, $6,041 and near-term reserve, $1,752.60 for a total annual cost estimated at $37,689.80."

Erdmann said they don't see a need to pass any additional costs for industrial water onto the city's domestic water users, thus they are looking at this additional industrial water supply as an economic development enhancement and it should be funded through the existing economic development funds coming from the 75 percent of the 1 percent city sales tax. Motion passed.

In other business:

Committee Reports

FIRE:

• Carrington Fire Chief Ken Wangen reported his agency's response to the Canadian Pacific train derailment near Bordulac.

He also reported on a van fire in Barlow and noted that the department received four calls for service within city limits.

FINANCE & LEGAL:

• The city held the bid opening on the 1995 Chevy pickup, which was sold to Pam Jerome for $631.

CCEDC:

• The board received two applications for Uniting for Ukraine sponsorship/Supporter Grant Incentive from Tom Erdmann. One will bring Anna and Rodion (a Ukranian couple) to Carrington to be employed by Golden Acres Manor and Estates. They have arrived in Carrington and are currently taking their tests to become licensed CNAs. The other application is to sponsor Amir Perpiev and Anastaslia Miroshnychenko, another Ukranian couple that will be arriving once they both have their travel visas with planned employment at Golden Acres Manor and Estates. Motion passed to approve both applications.

• Erdmann and CCEDC Director Laurie Dietz are brainstorming ideas on a stay home or return grant, whereby Carrington High School graduates could receive an incentive grant to stay or return to Carrington and work at one of the many open positions in the community.

CVB:

• The CVB has a lease agreement with the property owner where the Carrington city sign will be located on Hwy 200 East.

• Gussiaas Electric has started work on electricity upgrades in city park, but the wet ground has caused setbacks.

POLICE:

• It was reported that there were 385 calls for service.

PUBLIC WORKS:

• Carrington Public Works Director Jason Wolsky reported that there was a water line break on Joal Drive and mowing issues due to the rain.

• Mosquito spraying will take place on Tuesdays and Thursdays.

• Gravel has been spread on 66th Avenue from Hwy. 200 to the pasta plant.

• Lift stations 2, 4 & 5 are in need of repair with parts costing approximately $18,640.

BUILDING OFFICIAL:

• Nine building permits were issued in the month of June.

NO MEETING:

• Organizational Review

• Airport

• Library

• Tree Board