Sewer Rates Recommended to Rise

Toledo City Council members were handed a bitter pill about utility rates at their April 10 work session when City Manager Michelle Amberg recommended a 22% increase in sewer rates. Although the sewer rate went up 10% in 2011, the city realized only a 4% revenue gain, due to conservation. Because sewer revenues are backed by bonds, the city is required by law to keep a minimum $150 thousand in a reserve account as collateral. Current rates are not keeping that fund at the required level, and would look bad during an audit. “Because conservation is having such a strong effect on revenue collection,” Amberg said, “the only way to counteract that is to increase the base rate.” She proposed the council approve a new base rate of $11.05 (up from the current $9.00), and increase the flat rate (per thousand gallons) to $14.65, from the current $11.95. The average family bill would increase about $14 a month as a result.

The hard reality is that even a 22% increase, if approved, would do nothing more than re-establish the appropriate reserve and provide nothing for emergencies or contingencies. “We have had so many emergency repairs this (last) year, our contingency funds are depleted,” Amberg said. Some council members expressed frustration that the public seems not to understand that utility revenues go into specific accounts that can only be used for utility work. Sewer bill revenue can only be spent on the sewer system, water charges only spent on the water system and so on. Several council members said Tuesday they have had people complain who think utility rates are somehow tied to recent pay increases given to some city employees. Councilor Terri Strom said “a lot of people think it’s all going to salaries and benefit, even people who should know better.”

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Good News on Water Intake Given to Council

Toledo Public Works Director Adam Denlinger had some good news for city councilors Tuesday on a proposed relocation of the city’s fresh water intake on the Siletz River. The existing intake is threatened by nearby ground movement triggered by Januariy’s heavy rains and its aging pump station remains in a near-failure status. The city has been looking at a piece of property just upstream from its current site, near the north end of Camp 12 Loop. Geotechnical work on the site is almost complete.

Moving a water intake upstream is normally much more complicated than moving downstream, but Denlinger said Oregon Fish and Wildlife views the upstream site in Toledo’s case as more beneficial to fish habitat and approves. Denlinger believes the joint permit process with the Oregon Department of State Lands (DSL) and the Army Corps of Engineers can move forward smoothly, because those agencies agree the continued ground movement make any other option unworkable. “The upstream site is far superior and more buildable” than any other option, Denlinger told the council work session. The city is negotiating with a private land owner and will move ahead with its engineering and design while permitting proceeds, if it purchases that property. Denlinger said that means when permits are approved, perhaps a year from now, construction could begin immediately.

In the meantime, ground movement continues to threaten the city’s fresh water line from the river. “One of the items that occurred as a result of the storm…when the slide occurred adjacent to the pump station, it took out a significant section of the water line. We met with FEMA (the Federal Emergency Management Agency), and we had to come in very quickly and put that line back together. That qualifies for FEMA cost recovery,” Denlinger said. He also told council members there could be funding through the federal and state disaster programs that could also help pay a portion of buying the new property under consideration.

Keeping the Siletz pump station operating is critical for the city because the Mill Creek portion of the fresh water system “fails regularly,” according to Denlinger. “I can’t tell you how long we’ll be able to use this pump station. We have material sitting on pallets as a contingency ready to come in and replace that line,” he said.

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Council Sets Water Rates, Will Consider Sewer Rate in April

The Toledo City Council Wednesday set higher water rates, effective April 21, based on a recommendation in the water rate study conducted by the city’s consulting engineer. Residential customers with a standard 5/8 inch meter will pay a base rate of $22.00 per month and a $5.00 service charge. The water usage rate will become $4.25 per thousand gallons. There are various multipliers for customers with larger meter sizes. The Seal Rock Water District, which purchases water from Toledo, will continue to pay Toledo the residential rate for its water. Connection fees for new service will start at $300. City Manager Michelle Amberg said in a report to Council members, “the new (water) rate is sufficient to meet the needs of the water system in the coming year, and pay the debt service on the upcoming water revenue bonds.” Rates will increase 1.25% every fiscal year, as recommended in the water rate study. Council members decided to set aside a proposed resolution adopting higher sewer rates. Amberg admitted that staff had spent so much time working on water rates it had neglected to address sewer rates, which she said also need to rise. Although sewer rates went up 10% in 2011, actual revenues only rose 4%. Council members will take up the sewer rate increase issue at its April 10 work session.

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Toledo Adopts Water Rate Study, Authorizes Bond Sale

The Toledo City Council Wednesday adopted a water rate study and passed a resolution authorizing the sale of $6.7 million dollars in revenue bonds. The bonds will finance the construction of Phases I and II of the city’s water system improvement project. Because it was passed as a “non-emergency measure,” the bonds cannot be sold for at least 30 days. The  study, from Civil West Engineering, recommends a rate increase sufficient to generate revenue to pay off the first two phases of the city’s water capital improvements. Although the study recommends rate increases, any actual change in rates will be discussed by the council later. The recommendation is for a base water rate of $27 per month and a water consumption rate of $4 per thousand gallons. If that recommendation is adopted, the average Toledo water bill would rise from $32.39 per month to $48.40 per month.

The idea is to set rates high enough to pay back bonds will be used to finance the projects. City officials stress that a future rate increase is only on the water portion of the city utility bill. Charges for sewer, lighting and street maintenance will not change. Copies of the water rate study are available at City Hall and will soon be posted on the city website. The changes proposed by the study would move Toledo from one of Oregon’s lower water rates to a rate near the statewide average. Council members spent almost an hour in Tuesday’s work session discussing the merits of a higher base rate versus a higher water consumption rate, which groups may be unfairly penalized by each, and whether some type of low-income assistance could be made available.

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Sewer Mainline Fails in Toledo

Toledo Public Works employees spent part of their New Year’s Eve repairing a section of sanitary sewer mainline on SE 7th Street in Toledo. Public Works Director Adam Denlinger said about 25 feet of mainline were repaired. The work included reconnecting a lateral line which serves several apartments and a single family home. Denlinger said “Due to the depth of the mainline (14 feet) special equipment was needed to safely excavate the line. As a result, the department needed to bring in a track excavator capable of reaching it.”

The line failed due to age or fatigue. “In fact,” Denlinger said, “after excavating down to the pipe, crews discovered that some sections were completely deteriorated. As a result, a manhole will need to be installed to allow the department to evaluate further reaches of the line, provide for future maintenance.” Future improvements may also be necessary in that area, he said. Crews barricaded the site and will monitor throughout the weekend. Manhole installation is scheduled for January 4.

(Read all the stories in our Water series here)

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