Sewer board discusses rate process for Waverly system – Reporter-Times

For more that two hours Thursday, members of the Morgan County Regional Sewer District board heard about the process that will establish a rate for uses of the Waverly Sanitary Sewer System.

Board members met with representatives from engineering firm Beam-Longest-Neff, accounting consultants Umbaugh and Associates, Strategic Development Group for publicity and Cornerstone Grants for grant funds to discuss the progress of the system.

At this time, financing for the project will come from several sources, including grants and low-interest loans. Most of the available grants are based on the income of people living in an area.

Due to the wide range of incomes in the Waverly area, some homes qualify for grants while others do not.

Board members discussed having a company do a study to determine how many residents want and will hook on to the new sewer system and to do an income study to help determine what areas qualify for grants.

Determining the number of residents who want the system is vital in helping to determine the user rate. The more users who connect to the system, the lower the rate will be.

According to Doug Baldasari from Umbaugh, who is working on establishing a rate, there are many factors to consider.

Baldasari said Umbaugh does a large amount of work for regional sewer districts. He gave the board a worksheet showing the items that have to be taken into consideration in establishing a rate.

One topic was final construction costs. At this time, the project has not been let out for bids. All construction costs are estimates only. Once the final amount is determined, the rate will have to include money to repay the construction cost.

Also to be considered are operational costs. Once the plant is built and the sewer lines installed, a private company will operate the system. The rate will have to include money to pay for the operation of the plant.

As for repair and expansion costs, according to Baldasari, the rate should reflect funding to pay for repairs of the plant and funding for future expansion.

Some board members expressed concerns that residents may not see the benefits of having a sanitary sewer system. According to BLN, having a sewer system eliminates any future septic system problems. It eliminates the pollution of ground water by septic waste. It also keeps septic waste out of the White River. Having a sewer system can add to the value of property.

There was discussion regarding, once Interstate 69 is complete, development around the Ind. 144/I-69 intersection. Board members said they felt development will depend on the availability of a sewer system.

Decisions to affect rates

Baldasari said the board will have to make some decisions before rates can be established. He said board members will have to determine if there will be a connection fee to hook onto the sewer line. If they decide there will be a fee, a decision will have to be made to determine the connection fee amount, and whether it can be paid upfront or in installments.

Due to the hills and valleys in the area, some homes will have to have a grinder pump to move waste into the sewer line. According to information from BLN, a grinder pump can cost between $4,000 and $5,000. Baldasari said the board will have to determine who the pays for the pumps. He said a decision will have to be made to determine if the district pays, then recovers the money though the user rate, or if the resident pays when the pump is installed.

Baldasari said another factor that affects the rates is whether the board has a part-time or full-time employee to take care of any problems that could develop or if it contracts with the company that operates the plant to deal will problems. That decision has to be made before a rate can be determined.

Amy Miller, of Cornerstone Grants, explained different grants available for the project. She said many of the grants depend on the income of those living in the area.

Scott Burgins of Strategic Development Group said he could assist with meeting with residents. His advice was, Be transparent and dont try to hide anything. Be honest with the residents.

Board members plan to meet with the Morgan County Redevelopment Commission, which is building the sewer plant, to see if there is funding available to do the income study and determine who is willing to connect to the system. They also want to begin the process to educate residents, not only in the Waverly area, but elsewhere in the county, about the benefits of a septic sewer system.

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Sewer board discusses rate process for Waverly system - Reporter-Times