City Commissioners approved a $200,000 contract with Water and Environmental Technologies for a stormwater improvement project during their June 17 meeting.

The city is leasing about nine acres on the southeastern edge of the city, which includes three stormwater ponds called the Smith Ponds.

The city has contracted WET to provide engineering design for the reconstruction and improvements of the Smith Ponds.

The Smith Coulee Basin is about 180 acres and drains into the Smith Ponds, according to city public works staff, and the basin includes portions of the Berkner Heights Additions, commercial properties along the south side of 10th Avenue South from about 41st Street South to 51st Street South.

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Since the city leased the Smith Ponds land, it hired Morrison Maierle Inc. to assess the condition and capacity of the ponds. The evaluation was completed in February and provided the city with a “thorough investigation and understanding of the pond as it currently exists.”

With the contract approved during the June 17 meeting, WET will design the reconstruction and improvements of the Smith Ponds. The contract includes design, plans and specifications, and bidding phase services.

Bidding is expected to be done in the spring with construction planned for summer/fall of 2026, according to the city, and staff will likely submit an addendum to commissioners next year to add construction services to the WET contract.

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“Stormwater within this basin currently receives detention and treatment from the existing Smith Ponds which have been historically under private ownership,” according to city staff.

Staff indicated in the June 17 agenda report that the city had recently leaded the Smith Ponds land.

Commissioners approved the 15-year lease in November 2018, effective Jan. 1, 2019 through 2033, with the option to extend twice for five year periods.

In their November 2018 report, staff said the agreement would allow the city to install improvements to enhance stormwater retention and treatment from areas upslope of the city.

The lease agreement gives the city the option to purchase the land from owner Loren D. Smith.

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The annual lease payment and purchase price were set in 2018  based on the appraised value of the 8.965 acres.

The first annual lease payment was $8,290, increasing by 2.25 percent annually, to $11,320 in year 15.

Under the lease and city documents from 2018, this is year seven of the lease and the payment is $9,474.

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If the city were to have purchased the land in 2019, the cost would have been $80,685, with an increasing price annually to $110,174 in 2033.

If the city were to purchase the property this year, the price would be $92,209, according to city documents.

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At the time commissioners approved the lease in 2018, Smith didn’t wish to sell, but the lease was negotiated with the future purchase option, according to staff.

Chris Gaub, city public works director, said they’re just beginning to weigh purchase of the property as an object, subject to funding and other factors. A purchase would require commission action.

The primary objective of this lease agreement is to secure the use of this private property for the long term storm water retention and treatment. The current ponds, which were installed around 1950 as part of a gravel mining and processing operation, are in need of some routine maintenance. Modest upgrades will allow the ponds to more efficiently collect stormwater from upslope areas of the city as well as some county parcels,” staff wrote in their 2018 agenda report.

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Leasing the ponds would also allow the city to meet increasingly stringent state and federal requirements for stormwater.

The ponds will also allow the City to meet increasingly stringent State and federal requirements to treat storm runoff from urban areas.

The lease would secure city access to the ponds and “future enhancements will extend storm drain mains, stabilize the ponds and improve the treatment of stormwater” and those projects would be included in the public works capital improvements plan over the next several years.

At the time, staff said the city could opt to deny the lease but that would run the risk of the ponds being removed and the city losing a chance to manage and treat stormwater in a cost effective manner.