05-24-10 Council Agenda & Packet

Home Browse Search

CrrY oi-, Soui•ii 131,,,ND ST .FPHFN J. LuEcn,, MnYoR DEPARTMENT OF PUBLIC; WORKS May 19, 2010 Common Council Members — Subject: Sewer Rates 2010 -2013 We started this briefing in January 2010. We have had work sessions on the past 4 years of progress on the CSO Long Term Control Plan and what comes next in the next 4 years. We are now prepared to discuss the rates necessary to continue to move forward with environmental health stewardship and meet the federal mandate. We once again need to address rates to keep moving forward environmentally on controlling overflows from our combined sewer system, including basement backups, It is never popular to increase rates, but that Is the necessary task before us. It is over 4 years since the Common Council voted on sewer rates. It is time to review our progress, current status and make decisions on the next stage of implementing the plan we worked collectively as a community to create a 20 year roadmap for this major environmental infrastructure aspect of City Plan, We are facing a big $ 450 million CSO LTCP implementation ahead for the next 20 years. We will operate under Environmental Protection Agency, Indiana Department of Environmental Management and Federal Department of Justice Consent Decree for a long time (same as Mishawaka, Elkhart and many other communities in Indiana). Rates need to increase in 2010 and for the next 3 years (each year) to produce capital for sewer infrastructure investment of $70 million of dollars for the next priority group of projects. We continue to focus on public health as our priority most supported by the public - -- continuing to address chronic basement backup areas. There will be some more significant work to maximize our wastewater treatment plant wet weather capacity, both for higher flows and in terms of organic, nitrogen, solids and disinfection processes. This treatment plant aspect is the most cost- effective environmentally acceptable project to help everyone in the community. As local leaders, we want to avoid sewage backups into basements; we want to keep raw sewage out of the river after most rain storms. We also want to buffer rates. However, it should be communicated clearly that the EPA is mandating that we act and pushing us eventually beyond engineering break -even point - -- where each increment of cost produces an equal or greater increment of environmental benefit (called knee of the curve economic project scope). The EPA is eventually under the pending consent decree pushing us and other CSO communities under the 20 year plan to sewer rates that are above the guidance in the Clean Water Act of 2 % of median household income allocated to sewer bill (in the guidance in the Clean Water Act this is accepted as the level of "widespread economic hardship° due to high sewer rates), Department of Public Works Engineering Water Works Central Services Streets Fnviromne,1W Services Liar) A, Gilot, Director Carl P. C.ittrell. P.E. David'fungete Matt Chleliowski Sam Ilensley John J. Dillon, Ph.D. 574/735.92 1 574/235 -9251 574/235 -9322 574/235 -9316 574/235 -9244 5741277 -8515 .Fax 574/235 -9171 Fax 574/ 235 -9171 Fax 5741235 -5595 Fax 574/ 235 -9007 Fax 5741235 -9272 Fax 574/277 -8980