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Village awards $6.9 million contract for WWTP upgrades
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By ANDREW KUEHL
KEWASKUM- Sewer rates to begin quarterly 12% increases in October to pay for project, a total of over 90%.
After two years of discussions, proposals from dozens of engineering firms across the state and gripes from residents, Village Trustees accepted a proposal from C.D. Smith Construction of Fond du Lac for close to $7 million for the upgrade. Sewer rates for residents are expected to jump over 90% in the next two years to help pay for the project.
Before accepting the contract from C.D. Smith, Trustees consulted with their financial advisors from Ehlers & Associates on how the project, the largest the village has ever undertaken, would be paid for. Dave Wagner addressed financing options for the WWTP project and gave the board two options.
It was ultimately decided that the Village will finance the entire project (that is not paid yet) with a loan from the state’s clean water fund. Thus far, the village has paid over $38,000 to start the project.
To be eligible for the attractive financing provided through a clean water fund loan, the Village is required to provide documentation on how the loan will be paid back. The Village will do this by raising it’s sewer rates over a two-year period.
At Monday’s meeting trustees needed to commit in the form of a resolution to increase rates over the next two years by a little over 90%. All Trustees voted in favor of the increase with the exception of Trustee Kevin Scheunemann.
In addition to increasing sewer rates, the village will also increase impact fees, commonly referred to as connection fees to $3,900. The connection figure is based on the village having about 30 new connections annually.
According to Zoning Administrator Chad Cook, thus far, the village has had seven connections in 2008. A total of 16 occurred in 2007. Wagner explained that if 30 connections don’t occur, it doesn’t affect the plan much, half will still make the numbers work. The main issue is increasing the rates in the next two years.
Cook asked Wagner how Kewaskum’s impact fees compared with other communities. Wagner explained that Kewaskum would now be higher than most. “This is a significant increase moving forward,” he remarked.
Trustee Derek Peterson, who chairs the Public Works Committee, stated after reviewing four proposals, the committee voted to go with C.D. Smith. Only Scheunemann voted against the recommendation.
“I voted against this in committee. I do have to look at the events over the last month. I have to question as to why our community is being picked on on this mandate. We are one of the few communities that did not dump (raw sewage in the Milwaukee River) with the last flood waters, which says the dumping issue in 2004, which happened during construction in the (River Hill) park, and caused this mandate to come back on the table is no longer in play. There are a ton of other communities who dumped in the area (with the last rainfall), one right to the north of here. This would not be on the table if we were not being ham-stringed by the DNR and forced to do this. I question the value judgement of the DNR in this case because the issue of us dumping in 2004 was a temporary issue due to construction and has noting to do with the current capacity of the plant in my opinion. When you tell people of this community you are going to double their sewer rates no one cares how their sewer plant operates, as long as there is clean water at the end that’s the issue. I feel the current plant can do that for the next five years with minimum issues,” stated Scheunemann.
Pete Albers the former wastewater superintendent, addressed the board, “Two years ago the director of public works asked me if we need a new plant. He asked me if I knew anyone who could evaluate our plant. I found someone, president of an engineering firm, he did a study, came in, met with the past administrator and the operators. The first thing he said was, ‘you don’t need it and you can’t afford it’. You need a head works and some minor new equipment, there were not violations in the last 40 years except the so called violation in 2004. There were 120 communities who violated in 2004. We never found out what they did, if we are 40 miles south here, they can dump million of gallons every time it rains and keep on going, the average flow is not higher that it was 20 years ago. What happened to the guaranteed $3.4 million, how can that double? You have many senior citizens in this village on fixed incomes, what are they suppose to do? I don’t believe we need it, I’ve talked to many other engineers they agreed with me, all we need is a headworks, some other minor modifications.”
Judy Gottlieb, the DNR Basin Engineer for Kewaskum, did not deny the fact of bypassing or dumping by other municipalities. However, she explained that the bypassing in 2004 was not the only reason for the DNR coercing the village for a plant upgrade. “I brought up in my inspections in previous years about hydraulic deficiencies,along with lots of aging equipment. There are many pieces in that plant that all together, you need an upgrade,” she established.
“If you don’t do the upgrade now, you wanna wait five years, where do you think the prices are going to be for this same project? You have a sound project to move your plant forward. The costs are goin nowhere but up. I really think the village needs to take actions. You have heard from many engineers that believe you need enough work in enough areas of the plant to meet code requirements. You really don’t have another option,” Gottlieb explained.
Because of an agreed upon compliance schedule in the village’s permit with the DNR (the contract between the village and the state under the clean water act that allows the village to discharge), the village is required to award contracts for the upgrades by the end of year. “If you don’t, we will send a notice of violation, the village will be called in for an enforcement conference. If the village does not comply we would prepare a referral to the Department of Justice for non-compliance,” she threatened. Fines for the village would be in order as well.
Peterson introduced a motion to award the contract to C.D. Smith. Trustee Norman Kupfahl agreed with a second to his motion. Trustees Harry Roecker and Schuenemann voted no. Trustee Tom Piwoni and President Andy Pesch voted in favor of the motion. Trustee Steve Schuenemann was absent.
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