City of Byron Committee of the Whole met Aug. 18.
Here are the minutes provided by the committee:
CALL TO ORDER – Mayor Rickard called the meeting to order at 5:02 p.m.
1. ROLL CALL – Aldermen present: *Todd Isaacs, Emily Gerdes, Mittzi Fulrath, Cheryl Metz, Zeke Hobbie, Jessica Nehring, Michael Gyorkos, Christy Hanlin. Eight members present by roll call vote. Quorum established.
* - denotes start of the roll call vote
Aldermen Absent: None
PRESENT: Mayor John Rickard
City Clerk Caryn Huber
City Attorney Aaron Szeto
Dir. Of Public Works Aaron Vincer
Engineer Jason Stoll,
Matt Johnson (Fehr-Graham),
Collins Gerdes
2. APPROVAL OF AGENDA – Alderman Isaacs motioned to approve the agenda as presented. Motion seconded by Alderman Fulrath. Roll call vote: Gerdes, AYE; Fulrath, AYE; Metz, AYE; Hobbie, AYE; Nehring, AYE; Gyorkos, AYE; Hanlin, AYE; Isaacs, AYE. Motion passed: AYE, 8; NAY, 0; ABS, 0.
3. PUBLIC COMMENT – None
4. WASTE WATER TREATMENT PLANT PRESENTATION –
Engineer Johnson summarized the information from the last meeting and reviewed the current state of the waste water treatment plant. The system is aging and is not expected to be able to reliably serve the community much longer. He pointed out that much of the plant is in a flood plain. Headworks, constructed in 2016, is not serving the system well. The screening unit inside is responsible for removing large material that shouldn’t be in the sanitary sewer (plastic products, rubber products, etc.). He observed these pieces getting through the main screen to a bar screen right before treatment. He also noted that there is no grit removal system in Headworks, which he assumed was a result of budgeting. The fact that there is no grit removal means the grit remains in the treatment units and reduces the service life of components. The primary clarifier is non operational and the aerobic digester has not operated in many years. The disinfection tank is running at 2/3 capacity.
Currently, the system services a population of 3,700, and the capacity is rated at 5,700 people. He does not feel a capacity increase is necessary.
One option is to take no action. This will eventually mean more units failing, and our actions to rectify this would be dictated by the EPA. Regionalization is another option, where our water would be pumped to another community. The only place that is big enough to treat our water, Rock River Reclamation, is not close enough. We would need to build a station and a pipeline to move water there, and this option is not economically feasible. A more likely option is to use what we have but improve it, however, nothing new would be put in the flood plain, and the treatment system is landlocked.
The option they are recommending is a moving bed bio-reactor. It is a smaller footprint and is easier to operate. It will also fit on the existing land that is on the opposite side of the flood plain. There are still tanks that are in reasonable shape that they would repurpose and reuse. In every treatment plant, there is a liquid treatment train and a solid treatment train. The liquid treatment produces clear liquid, and the solid produces solids from the raw sewage. Problems with the liquid treatment train typically need immediate operator attention, whereas solids usually don’t. They can be stored and left alone for longer periods of time. The tanks in the flood plain are in reasonable shape and would be converted into solid storage. If new tanks need to be built, they would need to be built outside of the flood plain. Engineer Johnson explained that because land at the site is so limited, he recommends leaving space in the Northwest corner of the property available for the possibility of future regulations.
As part of the recommended plan, new screening equipment, a drum filtration system, a new digester, and a new control building would be built. Another new building would handle grit removal, and another would house the disinfection system.
Total cost of the project is $14,469,000. Current monthly water and sewer rates are $28.18/month plus $8.68/1,000 gallons after 2,000 gallons. New monthly rates (based on 85% loan) would be $34.43/month plus $9.23/month plus $7.96/1,000 gallons. The first number represents debt service, the second is reserves, and the third is operations and maintenance. The average monthly bill for water and sewer averages $60/month currently. After the full project, the average monthly bill would be $85/month, or 1.67% of the median household income. The affordability criteria for the loan requires that this rate be below 3%.
Alderman Isaacs asked why the rates are shown as increasing by the full amount immediately. Engineer Johnson explained that the rates could also be tiered, but that has not been determined yet. Tiering the rates would allow us to float design costs before construction. Alderman Metz asked how the EPA feels about tanks in flood plains – is this acceptable in other states? Engineer Johnson said the Rock River is regulated by FEMA, and is under federal regulations. Building is not allowed in the floodway (where water is in motion), but is allowed for storage in the flood plain. Alderman Metz asked if this could change at some point, but Engineer Johnson thought it would be unlikely due to the overall impact of a decision of that nature. Alderman Metz also asked about the affordability percentage, and asked what data is used to obtain the figure of 1.67%. Engineer Johnson said the EPA uses American Community estimates. 2020 census data is not available yet, but those numbers will replace the American Community estimates once received. Alderman Metz asked if there is existing assistance through the state for residents that don’t have the means to pay a $25 increase. Mayor Rickard said the city does not have a program. Alderman Metz feels the project is necessary, but is concerned about residents that cannot afford the increase. Alderman Fulrath agrees that the increase will be difficult, but if we do not do the project, and the system fails, the EPA will dictate our rate increase. Mayor Rickard also questioned whether the household income is based on our corporate limits, or on the 61010 zip code. Engineer Johnson said that if we were closer to 3%, additional steps would be taken to confirm this figure, but at 1.67% we still have quite a bit of room even if the percentage would move slightly due to the size and scope of the sample.
Director Vincer said the council will pass an ordinance that will determine how the rate increase will be structured. The increase can be done by a flat fee, or by an increase in water usage. There are three cost categories: Operations and Maintenance, which covers normal bills. Charges are based on how much water is treated; Debt Service, which retires debt and is a fixed cost until the note is complete; and Reserves, which is money to put aside for future repairs. Alderman Hobbie asked if these figures include our current rate increase. Director Vincer said no. The language of the ordinance can roll everything into one. Alderman Hobbie asked if this project will remove some of the need for the rate increase to cover reserves. Director Vincer said it is still good practice to stay in the black and plan for future repairs.
Alderman Isaacs asked why water usage has increased significantly. Director Vincer said this was primarily due to metering errors (Quality Metal, Fire Department, new household meters). We still have problems with water loss. 15% of capital improvement money will allow us to find and repair more places with water loss. Alderman Isaacs noted that if we increase the base on usage, and back down on the capital improvement annually, the overall increase will be lessened per household. By the time the decrease is complete, we should still have $1.1 million in the capital improvement account. This money could be used for engineering costs, and potentially save on interest expense. He noted that the state of the Exelon plant could affect these figures. Loan payments do not start until construction is complete in 2025-2026. Before we borrow the money, we will first submit an initial payment request. At the end of each fiscal year, the state requires an interest payment, or will roll that interest into the total amount of the loan. Range of the interest payment is $20,000-$40,000. Engineer Stoll added that the principal forgiveness comes off at the end. The loan is not closed until construction is complete. If there are any reserves, we also need to look at our collection system.
Mayor Rickard asked about the useful life of the three tanks in the flood plain. Engineer Johnson said that the tanks numbered 6 and 7 on the diagram are made of reinforced concrete and are currently used as clarifiers. Life expectancy is 20-30 years. Tank #11 is the painted/bolted tank constructed approximately 15 years ago. Estimated life expectancy is 35 years.
Mayor Rickard asked about the location of the Public Works building. Engineer Johnson said space is allocated in the Northwest corner of the site if we choose to keep the building on the site. A new building on the site can be added to the cost of the project at an approximate cost of $1.1 million. The building has mechanics bays and is used for equipment and parts storage. If the building is placed outside of the site, an additional loan would need to be taken out for construction.
Alderman Gerdes asked if Headworks needs to be rebuilt. Engineer Johnson said that the building is good, but the equipment inside needs to be replaced.
Alderman Nehring added that despite the increase, she feels the project needs to proceed as a whole instead of phasing. Engineer Johnson added that phasing will incur additional costs in mobilizing and demobilizing, inflationary costs, code changes, technology changes and permitting. Changes in interest rates are also a concern if several loans are implemented as opposed to one. Alderman Gerdes expressed concern over the possibility of the Exelon plant closing and would like to wait until that decision is made.
Alderman Gyorkos asked if the technology being recommended is being used elsewhere. Engineer Johnson said this is a technology that is not an experimental process, and it is being widely used successfully. He also added that there are two layers of protection – general contractor bond and manufacturer warranty. There will be performance testing – if it doesn’t perform as expected we will receive our money back. There was no performance testing done at Headworks.
Alderman Metz asked about the lifespan of some of the other buildings, such as the L shaped building located in the flood plain. Director Vincer said it was once used for drying beds, but, because the process is no longer used, it is currently used for equipment storage. She asked about building #13 – this is the electrical building that will eventually be removed.
Mayor Rickard asked if the WWTP plan is complete. Engineer Johnson said that there is about 10% left to do, and he is waiting for some direction from the city to complete the plan. Many alderman voiced the need to complete the project as a whole instead of phasing. Alderman Isaacs said we still have several months before we have to negotiate the rate increase. Engineer Johnson stated that if the council would make the decision now to proceed, the project could be complete by Fall 2025. The plan could be submitted to the EPA once the direction of the project is determined.
Mayor Rickard asked if there was any opposition to instructing the engineers to proceed, even if the decision is for Exelon to close. No opposition was voiced. Alderman Gerdes asked if the debt forgiveness could fluctuate if there are major changes in the median household income. Engineer Johnson said yes, but it would take time to see those changes.
Alderman Hanlin asked how much it would cost to pump the sewage to another community. Engineer Johnson said it would be very expensive and we would lose control over our sewer rates. In addition, Rock River Reclamation has already stated they are not interested in accepting our sewage.
Mayor Rickard stated that our next steps are to instruct the engineers to proceed with the rest of the plan, and to schedule a meeting to discuss how to structure the rate increase. A public hearing will follow in November or December of this year. A committee of the whole meeting will be scheduled for September 1 at 6:00 pm. Community Services will begin at 5:00 pm.
Alderman Fulrath asked if we will be able to review the plan prior to submitting to the EPA and asked if changes are accepted after submittal. Engineer Johnson said that changes are allowed if necessary. He will send the completed plan prior to September 1 for council to review.
5. ADJOURN – Alderman Gyorkos motioned to adjourn the meeting. Seconded by Alderman Metz. Roll call vote: Fulrath, AYE; Metz, AYE; Hobbie, AYE; Nehring, AYE; Gyorkos, AYE; Hanlin, AYE; Isaacs, AYE; Gerdes, AYE. Motion passed: AYE, 8; NAY, 0; ABS, 0.
Mayor Rickard adjourned the meeting at 6:29 pm.
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