City commissioners approved opening a new cell at the landfill and awarded a contract for the work, and also approved an impoundment on Brushy Creek for a second water source for the city. The commissioners also asked City Manager Bill Baker to begin the applications for water rights to Big Sallisaw Creek.
"I plan to start on that right away," Baker told the commissioners, who voiced their interest in having the creek as a back-up water source.
The commissioners were holding a special meeting Wednesday to discuss and vote on several items which were on the city's Dec. 10 regular meeting agenda. But the ice storm that hit most of the state last week prevented auditors and bidders on the landfill construction from traveling to Sallisaw for the regular meeting.
Landfill Expansion Approved
The city commissioners approved the bid for opening a new cell at the landfill. The bid was submitted by Fretco Inc. of Centerview, Mo., and was the low bid at $867,260.
Baker said, "This is a reputable firm."
He explained that John Smith, the city's landfill/sanitation supervisor, and Scott Neel, the city's engineer, had checked the company's recommendations and found the company was respected and came highly recommended.
Smith said, "The DEQ (Oklahoma Department of Environmental Quality) highly recommends them. They are doing cells for Ponca City and Ada right now I believe. They are probably one of the better contractors. This is all they do.
"And all the other bids were over $1 million," Smith said.
Baker said Keith Skelton, assistant city manager, had been checking on financing the project, and found that the best financial arrangement was for a five-year loan at a 4.88 percent interest rate from First National Bank, Sallisaw.
Baker said the city planned to ask for a $1.1 million loan to cover construction and other costs.
"And believe it or not," Mayor Shannon Vann said, "almost half of the bid was for sand."
The city commissioners are anxious to open another landfill cell because the Cherokee Nation Landfill near Stilwell in Adair County recently closed, and waste collectors are seeking another landfill to dump trash.
Skelton said, "John's phone has been ringing off the hook with people wanting to dump at our landfill."
Smith said he has received inquiries from the Cherokee Nation, which needs to dispose of 275 tons of trash per day, as well as several other waste collectors.
Vann suggested the city commissioners consider raising the landfill fee from $17 a ton to $20 or more per ton. He said getting a loan to open the new cell, instead of using the city's capital improvement money, would allow the city to have more cash flow.
"A loan will give us flexibility to open a landfill cell and still have money for other capital improvements," Vann said.
To questions about the $400,000 set aside in each year's budget for capital improvements, Baker and Vann explained that the money accrued over the year, and was not available in one lump sum. By obtaining a loan, and raising the waste dumping charge, the new landfill cell could be paid for within two years, Vann said, "without stripping the capital improvement fund."
Smith reported that the landfill was averaging about 350 tons a day at the present time. Others requesting to use the city's landfill could raise the daily tonnage to about 875 tons a day. Smith said that amount of garbage would fill up a new cell in two years, but the cell would be paid off by raising the fee, and could possibly provide enough money to open another cell immediately. That will depend on how many trash collectors sign contracts to use the Sallisaw landfill he emphasized.
Smith said the city has five cells open now and another three cells planned on what is called "the footprint," or the property designated at the present time for landfill purposes. At that point the city could ask that trash be piled vertically, or laterally.
Skelton said the city owns "several hundred acres" at the landfill site, and more area could be approved for landfill purposes in the future.
"This could be a moneymaker for the city," Skelton said.
Smith explained that the city now charges $18.25 per ton of garbage, and $17 goes to the city while the state gets a $1.25 fee for each ton.
He recommended that, to be fair to current users, they be informed about the rate increase at least four to six months before the cost rises.
He said it will take about 60 days, weather permitting, for Fretco to open the new cell.
New Water Sources
The commissioners also approved a proposed second water impoundment on Brushy Creek, north of Brushy Lake, which is the city's water source.
Baker noted that the Brett Peters with of Hawkins-Weir Engineers Inc. in Van Buren, Ark., has done two studies on a second water source for the city, and recommended the second impoundment be on Brushy Creek, north of the present impoundment, Brushy Lake, which also supports a state park.
Commissioner Don Randolph made the motion to approve the second Brushy Creek impoundment.
"We've spent over $350,000 on these two studies and got the same answer both times," Randolph said.
Commissioner Clayton Meadows seconded the motion, and the motion was approved unanimously.
Vann said that, after looking at all water-source possibilities, "I don't think we have another option."
Commissioner Randolph and Butch Lamb added that they wanted the city to also begin seeking water rights to Big Sallisaw Creek. Lamb said that if the city had water rights to Big Sallisaw Creek, a small pump station could be built there and a portion of the creek dredged for a holding pond. With that backup source, Lamb noted, the city would have an emergency supply of water if it faced another drought such as that which occurred last year.
Baker said, "I will begin working on that tomorrow (Thursday)."
The water rights must be obtained from the Oklahoma Water Resources Board (OWRB), Baker explained.
"We had temporary rights from the OWRB last year during the drought," Baker said, adding that if water had continued to become a concern during the drought, the city planned to pump water from the creek into Brushy Lake. "Maybe we can look at a small pump station there," Baker said.
In a report to the commission in October, Peters said the total cost of the second water impoundment on Brushy Creek would cost $38,120,000.__Other sources would cost more.
Baker said a decision on the second impoundment should be made quickly because construction costs would only continue to increase.
The water quality of the present Brushy Lake is rated as excellent, and water quality from a second impoundment up stream would be as good, Peters told the commissioners in October.
Peters said it is estimated that Sallisaw will need an additional 4.34 million gallons of water per day by the year 2060. Sallisaw now uses an average of 2.33 million gallons of water per day. Based on figures provided by the OWRB, the total average amount of water needed by the year 2060 will be 6.67 million gallons per day. Peters said engineers recommended the Brushy Lake proposal because of the cost and because the city's new water plant is near the site and is being built so that it can expand for future water treatment.
The proposed second Brushy Creek lake would be about two miles northeast of the present lake, and the lake could be as large as 540 acres. An early study showed the lake could meet the city's needs, and he recommended that a 24-inch water line be built to replace the present 16-inch water line.
Peters said the second impoundment on Brushy Creek "would be owned by the city, the property would be owned by the city and the water would be owned by the city."
But, even if construction began immediately, Peters said having the second Brushy Lake impoundment built and ready to deliver water within five years "is very optimistic."
Peters said, "I would say that you would need two to three years for design and a minimum of a couple years for construction."
Funding the large project will also be difficult, both Peters and Baker noted.
The city will be seeking federal funds and grants for the project, and any other sources available, Baker said. Baker noted that a new additional water source "will be a challenge to finance," and Vann has also asked for a water rate study.
Audit Report
Ron Cottrell, CPA, reported on the city audit for the 2006-7 fiscal year, which ended on June 30.
He noted that no irregular findings were discovered, and the auditors made only a suggestion that duty operations be separated for the DiamondNet service, which provides telephone, media and Internet connections to city residents.
Although the city did show a loss, or expenditure, of $2.7 million for the year, Cottrell said $2.4 million was for expansion at the Carl Albert State College, Sequoyah County Campus.
"And that's a good thing," Cottrell said.
He also said, "We think the city has good internal controls...which helps the city operate effectively, and eliminates fraud and other problems."
Cottrell praised the city's staff for their cooperation.
"They are always helpful," he said.
