Nothing’s been officially decided, but it appears the Oxford Village Council is leaning toward constructing a new water treatment plant for approximately $2.7 million, which could translate into a 22 percent water rate increase for customers.
‘The time is right to do this thing and fix your problem for the next 40 years,? said Edward Kidston, of the Ohio-based Artesian of Pioneer, a builder of water treatment systems and potential bidder on the village project. ‘I think it’s your best option on the table.?
Council held a public hearing last week to seek input as to what to do regarding its 30-year-old water treatment plant on S. Glaspie Street, which includes softeners that aren’t functioning and other equipment that’s deteriorating due to age and undersized in terms of handling well capacity.
In three to five years, everything in the entire plant will have to be replaced.
Only three village residents spoke during the hearing, something that greatly disappointed council.
‘It’s unfortunate that there’s not more people here,? said village President Chris Bishop. ‘They probably will be here after they receive the first (water) bill with the new rate.?
Village Manager Joe Young was directed to send out requests for proposals (RFP) regarding the estimated $2.7 million plant option, which includes replacing, upgrading and expanding all existing equipment as well as installing an additional filter and softener to meet future water needs.
An additional 2,200 square feet of space would be added to the existing plant under this plan. Although the existing plant would still be utilized as a portion of this new plant, Bishop said it’s ‘virtually an entirely new building.?
The $2.7 million option would increase the plant’s ability to treat water from 1.1 to 2.2 million gallons per day (MGD). It could easily be expanded to treat up to 4.4 MGD if needed.
Young said he’s already sent out RFPs to 10 companies. Proposals are due by 2 p.m. Thursday, May 22 (see notice on page 26).
Officials are hoping to see bids come in lower than the estimated $2.7 million cost.
To finance this new plant, village water customers could expect to see a rate increase of 22 percent. Currently, the village charges each of its approximately 1,200 water customers a base charge of $17.20 per month for the first 2,000 gallons regardless of whether any water is actually used or not.
The village then charges $3.25 for every 1,000 gallons used after the first 2,000.
According to Young’s projections, with a 22 percent rate increase someone who uses 2,000 gallons could expect to see their monthly bill increase from $17.20 to $21 ($3.80 more).
Users who consume 4,000 gallons would see their monthly bill go up from $23.70 to $28.90 ($5.20 more). Those consuming 5,000 gallons would see a jump from $26.95 to $32.90 per month ($5.95 more).
However, it was noted by Bishop that money could be taken from the village’s sewer fund to help pay for the new plant and lower the potential water rate increase.
He said the sewer fund has a ‘substantial fund balance? and ‘it carries no debt,? so monies from it could be used.
Also in good shape is the village’s water fund, which has reserves of more than $500,000 or 25 percent of the annual operating costs.
The village is looking to refinance, at a better rate, approximately $1 million in existing water bonds from 1996 projects. This move could save the village more than $90,000 over the next 13-15 years depending on rates.
The public speaks
‘While I understand the problems and the need for it, I just don’t think that right now is the time to be increasing people’s bills,? said resident Sue Bossardet, who’s also a former village president.
Bossardet urged council to choose for the ‘lesser? option before it ? which was $300,000 to $350,000 to replace the existing softeners ? ‘so that it’s not such an impact on people.?
She said this is ‘what people could tolerate right now? given the poor economy. ‘I’m here to tell you that I don’t think it’s a good idea to go for the full amount,? Bossardet said.
Council does have a $1.7 million option before it, which calls for adding approximately 550-700 square feet to the existing plant and replacing all existing equipment.
This option, which could be financed via an 11 percent water rate increase, includes installation of new larger filters and softeners to treat a greater capacity of water (1.693 MGD) to meet the village’s summer demand.
In the summer, the plant runs 24 hours a day, cranking out approximately 1.1 million gallons, just to keep up with the demand, according to Water Plant Superintendent Jim Smith.
Resident Bob Brannon was in favor of pursuing a new treatment plant.
‘My opinion is do it now because it’s not going to get no cheaper down the road,? he said. ‘The more you let it go, the more you’re going to have to replace all at one time.
‘It’s gotta be done. There’s no doubt,? Brannon noted.
Oxford Twp. Supervisor Bill Dunn, who’s also a village resident, agreed ‘wholeheartedly? with Bossardet that ‘it’s a terrible time to raise anybody’s bills,? but noted, ‘there’s never a good time to do this.?
A couple extra dollars ‘might not be a lot to people that are fortunate enough to work, but for people trying to hang on? to a job or house, it adds to their overall burden.
Although Dunn feels ‘sorry? for people who can’t afford it, he told council, ‘If we need it, I think we should do it now.?
‘The time to build anything is right now,? Dunn said. This is due to low interest rates and loads of contractors hungry for work.
Now is the time
Council seemed to agree that now is a good time to build a new treatment plant given the ‘very attractive? interest rates of 2-4 percent.
‘Interest rates are low. Money is cheap to borrow,? said Councilman Tom Benner. ‘I don’t like to see any rates go up, but I think that’s pretty cheap for a 22 percent increase in your water rate.?
‘I don’t want to do it, but if now’s the time to do it at a low interest rate, now’s the time we should do it,? said Councilman Tony Albensi.
Bishop noted that even if the cost of building a new plant remained the same in 3-5 years, ‘which is unlikely,? should interest rates increase by ‘just 2-3 percent,? instead of facing an 11-22 percent water rate increase, village customers could be looking at a ?25-50 percent increase? in their bills.
‘I too would hate to see us not do anything right now and have to increase rates 75 percent because we’re in desperate need of a new water plant,? Albensi said.
‘I can’t imagine trying to pay for (a whole new water plant) two years from now when interest is a lot higher,? said Councilwoman Teri Stiles.
Based on preliminary numbers, Young said building the $2.7 million plant now ? replacing, upgrading and expanding everything all at once ? would result in a savings of approximately $600,000 in construction costs.
‘There’s a substantial savings in cost by doing the entire project at one time rather than doing it piecemeal,? Benner said.
‘In my opinion, to give government more money, regardless of whether times are good or not, is not something that I’m in favor of,? Bishop said. ‘But if it’s a necessity then we need to take a serious look at it.?
Bishop noted that given the village water fund has lost money over the last two years, a rate increase of ‘at least a small amount? would have been needed no matter what.
The village president also noted that in a 2006 survey of more than 20 communities, the village was the ninth cheapest with regard to water rates and in the top three when it came to the least expensive sewer rates.
‘If you combine the two, it’s a relatively affordable (amount) by comparison to other communities,? Bishop said.
No soft water here
Dunn mentioned he’s ‘tired? of all the ‘white? stuff on his dishes after they’ve been washed.
‘The softeners aren’t working properly so we get a lot of calcium and magnesium,? explained Smith.
According to Smith, the raw groundwater the village pumps from its three municipal wells has a hardness of 14-15 grains per gallon.
One grain of hardness is equal to 1/7,000 pound of rock.
When the softeners were working properly, the hardness was at 5 grains, Smith said.
But now that the softeners are ‘virtually not working? as Bishop put it, Smith said the last time the treated water was tested, the hardness was about 11-12 grains.
‘You’re drinking well water that’s been filtered (for iron and arsenic) and chlorinated,? Smith said. ‘Basically, that’s about it.?
As a temporary fix, council voted 5-0 to accept an offer from Artesian to basically rent a softener for $40,000 until the week of Oct. 6 when it would be removed. The village would have the option of purchasing it for $180,000.
However, should Artesian be awarded the $2.7 million project, the company would not charge the village for installation or use of the softener and will leave the tank on-line until the new treatment plant is ‘approved, built and operating.?
The softener can handle as much as 500 gallons per minute, while the remaining water being treated by the plant would have to be bypassed around the unit.
As a result, approximately one-half to two-thirds of the water received by customers would be softened. ‘This will solve your immediate problem of putting out hard water at the present time,? Kidston said. ‘You’ll be able to run the bulk of your water through that one unit.?
Kidston told council he can have the temporary softener installed and operational ‘within three weeks.?