RAPID CITY - Instead of building water storage reservoirs within a quarter-mile of each other, Rapid City and Box Elder have started working on building one facility that would serve both communities.

Mayor Jim Shaw told the public works committee Tuesday that the joint storage facility would benefit development south of the Interstate near Elk Vale Road, which is the dividing line between the two cities.

Box Elder has preliminary plans to drill a well and put up a storage reservoir tank in that area to accommodate development using a tax increment district. Rapid City also has a long-term plan to put a storage reservoir in that same area.

Shaw said informal discussion has focused on what makes more sense: Building two similar types of storage facilities or for the cities to cooperate on one facility and save taxpayers money.

"I think it makes sense to look at it," Shaw said. "It seems to be something we should look at and move forward on."

When contacted Tuesday afternoon, Box Elder Mayor Al Dial said the proposal is in its preliminary stages and that there are a lot of details to be worked out, but the concept is a good one.

Elk Vale Road is where Rapid City and Box Elder city limits abut. Because both need a water storage facility, it makes sense to build one together rather than have separate facilities 400 yards apart.

"It's much cheaper and cost effective to the taxpayers to do a joint facility," Dial said. "Overall, it's cost effective to taxpayers to do a joint tank and both of us save some money."

Dial said that Box Elder is in the preliminary discussion phase. After the details are worked out, the agreement will go to both cities' councils for approval.

Shaw agreed that details are not finalized but said the basic idea is that Box Elder would build it using a $2 million tax increment financing district; Rapid City would operate and maintain it.

"If we don't do the agreement, Box Elder will drill a well in that area and put up a storage facility. If we do the agreement, we can build a storage facility with even greater capacity and share the water," he said.

Shaw said that Box Elder would buy water on a temporary basis, though it could be for some time, at a wholesale price of 85 percent of the retail price, the same provisions that the city sells water to the Rapid Valley Sanitary District.

Shaw said that essentially, Box Elder would tap into the city's water line at Cheyenne Boulevard near McDonald's and Arby's.

If the joint facility is built, it would free up about $1 million for Rapid City that would have been used to build its own storage facility, Shaw said.

"By building this joint storage facility, we don't have to drill a well; we'd just use existing supply," he said. "It would defer Rapid City's capital expenditure of $1 million quite a ways into the future, so we could use that money for other purposes."

Shaw said the cooperation with Box Elder moves Rapid City toward the goal of creating a regional water and sewer system, something local governments have been discussing for some time.

"That may be a ways off, but I think we want to continue to take steps in that direction," he said.

Alderman Malcom Chapman agreed.

"I think as budgets get tighter locally and nationally, communities - especially smaller communities - are going to be forced to look at some type of regionalization concept," he said.

Turf issues will be the "real demon" in making the regional concept work, Chapman said, "but moving down the road, I agree this is the right thing to do."

The public works committee directed city staff to prepare a draft agreement for consideration at a future meeting.

Contact Scott Aust at 394-8415 or scott.aust@rapidcityjournal.com