Town receives state loan for work
Columbus water and sewer customers will likely see rate increases as soon as next fiscal year in order for the town to complete $2,750,000 of needed upgrades to its aged wastewater treatment plant (WWTP).
Columbus made progress last week toward getting the plant up to date by directing the town manager, attorney and engineer to draft a contract to design renovations.
The town was notified April 4 that it was awarded a loan with an interest rate of 2.455 percent from the N.C. Department of Environment and Natural Resources (NCDENR) Construction Grant and Loans Section Clean Water State Revolving Fund Program. The town was one of 18 water and sewer providers to be awarded the loan, out of 51 applicants. There is a possibility the town could be awarded a portion of the loan at no interest.
Columbus Town Council met Thursday, April 21 with Brian Tripp of W. K. Dickson Engineers.
Engineer estimates are that water and sewer rates will need to rise approximately 20 percent to pay back the 20-year loan. Council will have to decide whether to implement the increases all at once or in smaller increments over the next few years. Actual construction will likely not begin until January 2013, with payments for the loan not due until 2014, so the town has some time to implement smaller increases gradually.
Tripp said the town’s original project included upgrades to the WWTP, putting a new well online and upgrades to the St. Luke’s Hospital pump station, but the state looked more favorably on the town’s application if it was specific to the WWTP upgrades.
Tripp said the town can seek other available grants and loans later to complete the smaller projects.
Some council members said they want to phase out payments to the engineers for needed documents such as the preliminary engineering report (PER), the environmental assessment (EA), engineering report (ER) and the design.
Council was comfortable going forward with engineers completing the PER, EA and ER, but expressed concern over the design phase, which is estimated to cost $170,000. The town has already paid W. K. Dickson $10,000 toward the PER, which is almost complete. The town owes W.K. Dickson between $25,000 and $30,000 to finish the PER, EA and ER.
Council approved directing staff to draft a contract with the engineers for the complete project and moving forward with the reporting phase of the project. Council will approve going forward with each step throughout the process.
Councilwoman Margaret Metcalf said council members visited the wastewater treatment plant and know what kind of condition it is in.
“We have been told that we need it pretty bad,” Metcalf said. “I think with that being, we need to figure out the best way cost-wise to do it and how we’re going to do it, not if we’re going to do it. If this breaks down, I think our citizens are going to be more upset with us than if we go ahead and take care of it now.”
The town’s plant is 40 years old and has well surpassed its expected life, officials said.
“Current issues with the wastewater system include an aging WWTP that is in a state of decline,” Tripp said in a report. “The WWTP, with a capacity of 800,000 gallons per day, has become deteriorated due to its age and does not comply with current design criteria. The WWTP was originally constructed in 1968 with the most recent partial plant improvements in 1987.”
Since June of 1997, the town has received seven letters of violation and/or administrative orders/penalties associated with its WWTP plant, according to Tripp.
“The WWTP upgrade project will benefit the town because it will upgrade the WWTP to current design criteria, provide a second, redundant clarifier, provide permanent back up power, upgrade and automate their disinfection system, improve headworks screening and improve solids handling capabilities,” Tripp’s report said.
Tripp also provided data on what increases will be necessary to pay back the loan. The town this fiscal year implemented a five percent water and sewer increase, which is not yet included in Tripp’s figures.
For town limit customers using approximately 6,600 gallons of water, rates would need to rise from the previous $24.17 per month to $28.52 for water. For sewer, rates would rise from the previous $32.19 to $37.90, or a total of slightly more than $10 per month.
For customers using 3,000 gallons per month, rates would need to rise from the previous $15.85 to $18.70 for water and $20.86 to $24.61 for sewer, or a total of $6.60 increase per month, according to Tripp’s figures. The increases would be higher for outside town limit customers and commercial customers.
Tripp said he will later present updated figures that include the recent rate increases.
Council will consider an engineering contract during its May meeting, which will be held on May 17 at 5:30 p.m. The May meeting time has been changed from its regular third Thursday of the month because of scheduling conflicts.