The Italy City Council approved a resolution (#11-0719-01) to issue certificates of obligation, not to exceed $3.1 million, regarding a water project bond Tuesday evening at a called meeting in council chambers.

Dean Carrell, water superintendent, said two of the three city wells are down.

The water superintendent said he has been concerned about the water loss and chlorine issues that deteriorate equipment and said the city needs to taken action now.

He had a couple of sketches with an additional half-million gallon storage tank beside the water-holding tank located at the intersection of SH 77 and Simms Street.

Carrell stressed the need for a concrete tank which, he said, would last the city more than 30 years. He said the alternative, a steel tank, would not last more than 20 years.

Jimmy Hyles asked the council why they are considering a “band aid fix” to the city’s water problems. He questioned why the city was not looking into surface water from the City of Waxahachie.

Hyles said the city should get an engineer to compare the current operating costs with these wells versus going onto surface water.

Mayor Frank Jackson said the City of Waxahachie initially offered to pay the cost to run a water line from Waxahachie to Italy but have since backed off that offer. Now, the City of Italy would be required to pay the entire cost for the water line.

They mayor said water bills would increase about $60 per meter with surface water. Additionally, he said it would take at least three years to get the project completed.

Carrell said he understands that this proposed project is a quick fix. “Right now,” he added, “we are in dire need.”

Carrell said a concrete storage tank would last the city more than 30 years and could continue to be used when the city does choose to go with surface water.

He said the city would not need many of the current pumps and cooling towers currently in place, which would save the city economically.

Following financial presentations from Government Capital and First Southwest representatives, the council voted to approve the resolution to proceed with the water project with certificates of obligation with First Southwest.

Council members also approved a second resolution (#11-0719-02) which would reimburse the city any cost currently being incurred with the downed wells.

Questions surrounded the two bond proposals offered by Government Capital and First Southwest.

Darren Walloch with Government Capital briefly outlined options available to the city. They said water users would see an increase between $4 and $9 per customer based on which type of storage tank the city chose to construct.

Nick Bulaich with First Southwest projected customers would see a $14-24 water rate increase per customer.

Hyles questioned the extreme difference in the proposed increase per customer.

Teri Murdock, city secretary/administrator, said with quick calculation, she could not see how an increase of $5 per month per water customer could make the annual payment.

Carrell said the Government Capital proposal included how much the city would save.

Bulaich said his proposal was based on the money borrowed and did not include any savings the city might realize.

The council, who has done projects with First Southwest in the past, voted to continue working with the firm. Bond closing and delivery of funds is scheduled Oct. 18.

Comment by Adam Muirhead – July 21, 2011 9:08pm

In reality the city should be paying the customers to use the water not the customers paying the city. The water here in Italy is totally useless when it comes to drinking, bathing, and washing clothes. So what are we paying for when it comes to water? Recently the water has been slimy with a high odor of chlorine, and very murky. When you go to wash dark color clothing it makes the clothes have a red tint and totally ruins them. Just recently we bought my daughter new clothes and within one wash they were trash. So the city will be receiving a bill for all damages occurred by the water here. I strongly encourage the citizens to step up and demand action to be taken over the water issues. Gather all your worn out clothes that have been ruined and any appliances that have been destroyed and send them a bill to compensate for what is lost. The city is to be held responsible for damages and that’s plain and simple. If you pay out money for damages to the car wash then you have to do it for everyone else. You don’t get to pick and choose who you want to pay, its either everyone or no one. So stand on your feet or die on your knees. Its time to stop small government and city municipalities from getting away with everything. When you have to make a choice and don’t make it, that is in itself a choice.