City sets hearing on dam-improvement payments

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February 1, 2012

JOE LoTEMPLIO Press-Republican The Press Republican Wed Feb 01, 2012, 02:28 AM EST

PLATTSBURGH — The City of Plattsburgh may add a monthly surcharge to water users to pay for repairs at its reservoir.

The Mead Dam off Rand Hill Road in the Town of Plattsburgh is in need of major reconstruction that will cost about $3 million.

The spillway at the 90-year-old dam does not meet state regulations and must be reconstructed.

A spillway is a structure that controls the release of water overflow to prevent damage to a dam.

The spillway chute also needs to be replaced. The chute is a long, concrete slide that carries overflow down into a nearby stream.

To pay for the work, the city would bond the project over 20 years.

The bond would be paid for with funds generated from an Infrastructure Investment Charge placed on water users.

Water users with a 5/8 meter would pay a monthly surcharge of 95 cents, and those with a 3/4 meter would pay $1.90 per month. Most residential users in the city have 5/8 meters.

The money raised through this charge would be put into a dedicated fund and cannot be used for anything else.

City Chamberlain Richard Marks said a 20-year bond is better than stretching the payments out over 30 to 40 years because the shorter period offers more competitive rates.

"Twenty years makes more sense for the infrastructure charge for the customers as well; otherwise, most customers won't ever see an end to the charge," Marks said.

"And that 20-year funding source fits the debt service needed for the bonding."

Councilor Chris Jackson (D-Ward 6), who proposed the surcharge, said it is similar to the way the city opted to pay for new water-storage tanks two years ago.

"I think an IIC is an appropriate way to pay for this type of capital expense since it does not raise the price per gallon of water used," Jackson said. "It is a defined charge for a specific purpose, and once the capital project is paid off, the charge will end.

"Ensuring a safe and secure dam system for the future is just another example of the long-range planning of the current administration."

The Common Council will hold a public hearing on the proposed charges at 5 p.m. Thursday. A vote on the issue will be held at the regular meeting, which begins at 5:30 p.m.

If approved, the charges will go into effect March 1.

Construction would begin later this year.

Email Joe LoTemplio at: jlotemplio@pressrepublican.com