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City calls for meeting with DUD
DUD w sm
While the proposed DeKalb Utility District water treatment plant is still being planned, DUD officials have asked the City of Smithville to formulate a proposal for a new 30-year contract to purchase water from the city.City aldermen voted to send members of the DUD board a letter requesting a meeting to discuss between the matter.Secretary/Treasurer Hunter Hendrixson told the board that he felt a face-to-face meeting was the best way for both agencies to come to a conclusion.“DUD has sent us a written proposal/contract asking us what we would like for the contract to be for a long-term purchase program of our water,” Hendrixson told the mayor and aldermen.“Rather than just go back and forth by letters, I think our board should have a sit-down with their board to just get down to it and figure out what they want and if they really want it,” he continued.“I would like permission from the board to send a letter to each of their board members asking for a sit-down to hopefully negotiate a long-term contract.”The city now sells water to the DUD for $2 per 1,000 gallons.The rate increases by five cents per 1,000 gallons every year in January.The contract, which was entered into in 2004, expires in 2014.One of the question marks in the matter is that the city has not done a study in several years to determine exactly what it costs them to produce a gallon of water.“I think we cannot in good faith negotiate any kind of contract until we can determine how much it costs us to produce a gallon of water,” Alderman Shawn Jacobs told the assembly.The proposed contract from the utility district not only calls for a cost study, Hendrixson said it specifies that the DUD will share the cost.“In their contract, I do like the fact that they are willing to split the costs 50/50 for a (cost) study on this and I'm willing to do that now if the board is,” Hendrixson said.“What it comes down to is that we need to know what a gallon of water costs, no matter what,” said Alderman Tim Stribling. “I commented on that a couple of months ago. There are so many factors involved.