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City may consider new sewer plant
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By Jeff Lundquist
NT Editor
ATLANTIC “ A preliminary review of possible sewer rate increases led to a discussion by the Atlantic City Council Wednesday night about the possibility of making additional improvements to the city’s waste-water treatment plant, including a new $16 million facility.
Two weeks ago, the council had asked to see a sewer rate study before making a decision on nearly $2 million in additional improvements to the city’s waste-water treatment plant improvement project. After meeting with James Merideth of Fox Engineering who asked the council to consider improvements to pumps, screens and other equipment that will make it easier to meet future Department of Natural Resources rules and possible plant expansion in the future. The improvements are estimated to increase the cost from around $5.7 million to $7.2 million.
But after reviewing that rate study Wednesday, which included several possible rate scenarios, the council seemed to agree that it might be prudent to take another look at the idea of building a new facility at the current site.
Councilman Dave Jones said that even if the city chose to do the minimum level of improvements as required by the state, it would still have to consider additional improvements in the future, the cost of which would no doubt increase. With that in mind, and considering that compared to area and state-wide sewer rates Atlantic’s rates would still be relatively low, Jones and others agreed that it might be wise to make the improvements now.
“If we do the minimum upgrade, we will require a major upgrade down the road,” Jones said. “Right now we’re on the low end of the state for rates. If we put these values in, we’ll still be on the low end of the higher rates. It makes sense to me to do it now.”
Last year, the city approved a Facility Plan that calls for the construction of a $5.7 million equalization basin near the existing wastewater treatment plant. The equalization basin, was a required element in all of the proposals considered, including three proposed new sites.
Two weeks ago Merideth asked the council to consider what amounts to a new plant, based on the plant in Oelwein, which several city officials toured earlier this month. That project could be built near the existing facility and would cost around $16 million.
Residential sewer rates are currently based on a $12 minimum fee for the first 3,000 gallons used a month and $2.25 for each 1,000 gallons used after that. Officials say the average water used for a family household amounted to just over 6,000 gallons a month which resulted in a water bill of around $19.20 a month.
The council was presented with possible rates for four different scenarios; doing the minimum work required which includes an equalization basin, pumping and UV treatment; upgraded pumping, screening and grit removal; treatment facilities and both the upgraded pumping and treatment options. The options both 20 and 30 year loan options.
Should the council do just the minimum required, based on a 20 year loan, rates would increase to $22.96 for the first 3,000 gallons and $2.25 for each 1,000 gallons after that. Based on the average useage of 6,200 gallons, a typical bill would equal just over $30.
Should the city decide to proceed with the option to build a new $16 million facility, rates would increase to $42.55 for the first 3,000 gallons and $2.25 for each 1,000 gallons after that. An average bill would cost just under $50 a month.
City officials say they plan to pay for the project with low-interest loans from state which will be repaid through increased rates. Should the city decide to go with a 30-year, rather than 20-year loan agreement rates would drop slightly.
The council took no action Wednesday but will discuss the issue further.
Two weeks ago, the council had asked to see a sewer rate study before making a decision on nearly $2 million in additional improvements to the city’s waste-water treatment plant improvement project. After meeting with James Merideth of Fox Engineering who asked the council to consider improvements to pumps, screens and other equipment that will make it easier to meet future Department of Natural Resources rules and possible plant expansion in the future. The improvements are estimated to increase the cost from around $5.7 million to $7.2 million.
But after reviewing that rate study Wednesday, which included several possible rate scenarios, the council seemed to agree that it might be prudent to take another look at the idea of building a new facility at the current site.
Councilman Dave Jones said that even if the city chose to do the minimum level of improvements as required by the state, it would still have to consider additional improvements in the future, the cost of which would no doubt increase. With that in mind, and considering that compared to area and state-wide sewer rates Atlantic’s rates would still be relatively low, Jones and others agreed that it might be wise to make the improvements now.
“If we do the minimum upgrade, we will require a major upgrade down the road,” Jones said. “Right now we’re on the low end of the state for rates. If we put these values in, we’ll still be on the low end of the higher rates. It makes sense to me to do it now.”
Last year, the city approved a Facility Plan that calls for the construction of a $5.7 million equalization basin near the existing wastewater treatment plant. The equalization basin, was a required element in all of the proposals considered, including three proposed new sites.
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Residential sewer rates are currently based on a $12 minimum fee for the first 3,000 gallons used a month and $2.25 for each 1,000 gallons used after that. Officials say the average water used for a family household amounted to just over 6,000 gallons a month which resulted in a water bill of around $19.20 a month.
The council was presented with possible rates for four different scenarios; doing the minimum work required which includes an equalization basin, pumping and UV treatment; upgraded pumping, screening and grit removal; treatment facilities and both the upgraded pumping and treatment options. The options both 20 and 30 year loan options.
Should the council do just the minimum required, based on a 20 year loan, rates would increase to $22.96 for the first 3,000 gallons and $2.25 for each 1,000 gallons after that. Based on the average useage of 6,200 gallons, a typical bill would equal just over $30.
Should the city decide to proceed with the option to build a new $16 million facility, rates would increase to $42.55 for the first 3,000 gallons and $2.25 for each 1,000 gallons after that. An average bill would cost just under $50 a month.
City officials say they plan to pay for the project with low-interest loans from state which will be repaid through increased rates. Should the city decide to go with a 30-year, rather than 20-year loan agreement rates would drop slightly.
The council took no action Wednesday but will discuss the issue further.
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