Gayville, South Dakota

Written by Paul Dorwart, EFC Region 8 Category 2 Specialist

This report comprehensively assesses Gayville, South Dakota's water infrastructure, focusing on addressing the city's growing water storage needs. Gayville is a primarily agriculturally based community along Highway 50 in southeastern Yankton County. According to the 2020 Census, the city had a population of 382, marking a 6% decrease from the 2010 census data. Based on the American Community Survey, the city's median household income in 2021 stood at $71,250. Gayville purchases bulk water from Clay Rural Water System with a contracted maximum rate of 110,000 gallons daily.

Water Infrastructure Overview Gayville's Water Superintendent, Mr. Chuck Flemming, has served the city for six years and holds class one certificates in water distribution and stabilization ponds from the State of South Dakota's Department of Agriculture and Natural Resources. Mr. Flemming raised concerns about the city's water infrastructure's capacity, particularly in light of an upcoming real estate development project expected to add approximately 60 residential housing lots. Additionally, two smaller developments could introduce another 40 lots within the next decade. The current water storage tank, constructed in 1915, has a capacity of 50,000 gallons. A recent inspection conducted by H&H Contracting in 2021 identified several significant deficiencies, including interior tank coating issues, the need for drain plug replacement, OSHA-required ladder enhancements, tank roof platform improvements, and the addition of a cable safety climb system. Preliminary estimates for these essential repairs amount to $750,000. Consultation and Planning In response to these concerns, Training Specialist Paul Dorwart engaged in discussions with Water Superintendent Flemming, Council Woman Catalina Renteria, and City engineers Trent Bruce PE and Ryan Wood PE on August 23, 2023. The meeting explored various options for addressing Gayville's water infrastructure challenges. It was mutually agreed that conducting a formal Facility Plan was essential. The city's engineering firm, DGR Engineering, sought funding for this plan through the small Community Block planning grant, which will cover up to $8,000 of the preliminary engineering report's cost. In addition to the infrastructure assessment, Mr. Flemming requested a rate and revenue analysis for the city. There are concerns that current water rates may be insufficient to support infrastructure upgrades and maintenance. Mr. Dorwart committed to working with Finance Officer Leanne Cutts to address this and gather the necessary financial data.

Suggested Resolution The results of the preliminary engineering report point toward the need for an additional 40,000 gallons of water storage. Based on population growth projections and current daily usage, Gayville is estimated to require an average daily use of 56,000 gallons per day. Moreover, accounting for peak demand, a peak day might need as much as 172,000 gallons of water, surpassing the current daily usage limit stipulated in the Clay Rural Water System agreement. Three options have been proposed to address this: 1. Option One: New 100,000-gallon Elevated Tank: This entails replacing the existing tank with a brand-new 100,000-gallon elevated tank. The estimated cost is $2,022,000. 2. Option Two: Rehab Existing Tank with Ground Storage: This option involves rehabilitating the current elevated tank and adding extra storage capacity through a ground storage tank. The estimated cost for these repairs and the new tank is $1,650,000. 3. Option Three: Cooperative Agreement with Clay Rural Water: Collaborating with Clay Rural Water to construct a new elevated tank on the city limits. This approach promises cost savings for Gayville, enhances fire flow capabilities, and addresses peak demand concerns. Detailed cost and feasibility assessments are necessary to explore this option further.

Recommended Actions Training Specialist Paul Dorwart offers the following recommendations: 1. Infrastructure Investment: It is advisable to proceed with either Option 1 (new elevated tank) or Option 3 (cooperative agreement) to replace the existing 1915 tank. Although adding ground storage is an alternative, it will lead to higher long-term maintenance costs. 2. Rate and Revenue Analysis: A comprehensive rate and revenue analysis should be conducted to assess Gayville's current water rates. Preliminary findings suggest potential rate adjustments are needed to ensure the city's financial stability. The city's current rates will not meet this project's funding agency's requirements.

Project Timeline

• Present Facility Plan to City Council: September 19, 2023

•Facility Plan Submittal to SDDANR: September 30, 2023

• State Water Plan Application Due: September 30, 2023

• SRF Funding Application Due: December 31, 2023

• Project Design: Spring/Summer 2024

• Construction Phase: Summer 2025

Conclusion Gayville, South Dakota, needs to upgrade its water storage infrastructure to accommodate growth and ensure a reliable water supply for its residents and future developments. This comprehensive report offers potential solutions and recommendations, emphasizing the importance of informed decision-making that balances immediate costs with long-term benefits. Collaboration with experts and meticulous financial planning will be critical to the success of this vital project. DGR Engineering remains dedicated to assisting the City of Gayville in advancing the Facility Plan and securing the necessary funding. The South Dakota Association of Rural Water Systems (SDARWS) is committed to supporting the project, including conducting a rate and revenue analysis to address the city's rate structure concerns.

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