LOGAN – At their regular meeting on Jan. 7, the members of the Logan Municipal Council will consider a resolution laying the financial groundwork for the city’s proposed First Dam Pipeline project.
Under “Action Items” on their agenda, the council members will consider Resolution 25-01, which is a parameters resolution, according to Rich Anderson, the city’s finance director.
“This parameters resolution refers to the financing of a project only,” Anderson explains. “It is meant to accommodate any route or specific options selected, not to select a specific project or the ultimate route (of the pipeline project).”
Under state code, the members of the city council must first adopt a parameters resolution outlining the conditions under which Logan is authorized to ultimately issue revenue bonds.
Anderson adds that the Logan Finance Department is requesting that the city issue no more than $60 million in bonds at no higher than 6 percent interest for a period not to exceed 31 years.
“We feel that these parameters should accommodate the bond issuance required for any reasonable option or route that has been discussed for the water tank and water lines,” he emphasizes.
The First Dam proposal has become controversial in recent months because city officials favor the installation of the pipeline down Canyon Road to the west side of the city, necessitating the removal of century-old ash trees along that route.
That plan is opposed by an ad hoc citizens grouping call itself the Canyon Road Coalition. Yard signs have sprung up throughout the city calling for the trees to be saved. The group has also collected more than 4,000 names on a petition opposing the project.
The city has been working with J-U-B Engineers for three years to plan and develop the project, which calls for a 10-million gallon water tank to be installed near First Dam with a transmission line to the west side of Logan.
Logan officials say that the project is needed to improve citywide water quality and delivery; to meet new state requirements for water system capacity; and to meet current and future drinking water and fire suppression needs.
The Canyon Road Coalition’s petition counters that the trees slated for removal to make way for those improvements are vital to “ … the character and unique identity of the Island neighborhood.”
Since being informed of the proposed project in October, the citizen coalition has been calling for a delay in the project’s schedule to allow for reconsideration, more transparency on the part of city planners and additional community input before a final decision is made.
While those concerns are being discussed, Anderson says financial planning for whatever project is finally approved must move forward.
“In the council adopts the parameters resolution at the Jan. 7 meeting,” he explains, “the city would then hold a public hearing on Feb. 4 asking for public comment on the parameters resolution and on the issuance of bonds.”
Anderson adds that the actual amount of the bonds finally issued is likely to be something less than $60 million for the pipeline project.
“It could be as low as $31 million,” he estimates, “but likely somewhere between $35 million and $51 million depending on many factors, include the route selected, known factors and conditions and – most importantly – the contractors selected and their bids for the project.”
The 5:30 p.m. meeting of the Logan Municipal Council will be held in their chambers at City Hall at 290 North, 100 West in Logan.