News and Tribune

Clark County

November 3, 2009

Jeff council votes for sewer rate hikes

Two more votes needed before changes are final

Jeffersonville’s monthly sewer bills are expected to rise more than 200 percent during the next five years, from an average of $24 per month to around $73 per month.

The Jeffersonville City Council unanimously gave the rate increase preliminary approval during a Monday night meeting. The increases will have to be voted on twice more.

The increase will finance about $100 million in repairs, and expansions to newly annexed areas.

Mayor Tom Galligan said the increase is largely because of a recent legal agreement — known as a consent decree — with the U.S. Environmental Protection Agency, which has leaned on the city to correct problems with combined and sanitary sewer overflows. The consent decree mandates that the city eliminate the flow of untreated sewage “into the waters of the United States,” Galligan said.

“And to do that, we have to do a lot more reporting, we have to do a lot of checking,” he said.

Two problems brought the federal government into Jeffersonville:

• Combined sewer overflows occur during heavy rains and snow melts. During such circumstances, the stormwater drainage system becomes overwhelmed and discharges sewage into waterways, such the Ohio River.

• Sanitary sewer overflows occur as a result of busted pipes and faults in the system. And Galligan said during Monday’s meeting that such problems are being found regularly.

In the last two weeks, he said, city workers found a line that had caved in.

“The more we fix, the more we find,” he said.

Both of the problems constitute violations of the U.S. Clean Water Act. Under the consent decree, the city has 10 years to correct the problems.



Phased rate hikes

The rates will be phased in, but the biggest part of the hike will take place immediately. As soon as the ordinance gets a final vote, expected this month, rates will more than double, with the average monthly bill going to about $50.39.

Phase two of the increase will start in 2012, when average bills will rise to about $55; in 2013, they’ll go to about $60; in 2014, they’ll go to about $66; and in 2015, they will go to about $73.

Jeffersonville’s sewer rates last increased at the beginning of 2005 — that time by 35 percent — to pay for the first round of sewer improvements relating to negotiations with the EPA. The city has already spent about $23 million on sewer improvements since then.

When the initial rate increase takes effect, nearly half of a customer’s monthly sewer bill will fund the improvements necessary to comply with the consent decree. Bills will include a breakdown, so that customers know exactly how much of their monthly payment is allocated to combined-sewer-overflow-related improvements.

In addition to the rate ordinance, the council also approved about $47 million in bonds — financed by the rate hike — to start the work.

John Seever, a financial adviser hired by the city, said the money would go toward rehabilitation projects, expansion to newly annexed areas and the construction of a new sewer plant on the north end of the city. The new plant is proposed in order to relieve demand on the current, downtown plant.

In 2015, he said the council likely would consider a similar bond ordinance, which would allow for an additional $53 million for more sewer work



Reaction

“There was no question that the Clean Water Act would be enforced in Jeffersonville and the Sanitary Sewer Board made the right decision by negotiating the consent decree,” Council President Connie Sellers said in a press release from the city. “As expensive as this is, it would have been much worse had the sewer board taken the stance that the Clean Water Act is not applicable in Jeffersonville.

“[The] EPA could have recommended $8.1 million in fines for past Clean Water Act violations in Jeffersonville. Because the sewer board has made a good faith effort to work with EPA, the recommended fines were only $168,000 and we can get about $100,000 of that back, with certain kinds of mitigation programming.

“Evansville has decided not to cooperate, and EPA is seeking $120 million in fines there. Our money is better spent on solving problems than on fines.”

Parts of our sewer system are very old, Galligan said.

“What was acceptable when the oldest parts of our system were built is not acceptable now. So, the EPA is making Jeffersonville and the rest of the nation’s 772 [combined-sewer-overflow] communities fix these problems. “This isn’t a Jeffersonville issue, it’s a national issue that happens to affect Jeffersonville.”

“The bottom line is that this is a lot of money,” Galligan said. “We absolutely do not want to do this, but if we don’t take responsibility for our rates, a federal judge will.”



Tap in fees

The sewer rate ordinance also raised sewer tap-in fees, which are paid by new customers connecting to the system.

They’re going up from $1,525 to $3,300. However, the council expressed interest in pushing that rate increase back, so as not to penalize newly annexed residents.

Those changes will be discussed in more detail at the council’s next regular meeting at 7:30 p.m. Nov. 16 at City Hall, 500 Quartermaster Court.



IN OTHER BUSINESS

• With a contentious vote, the council changed its appointment to the Police Merit Commission, following a controversy over its validity. The vote removed Conrad Moorer, replacing him with Clay Smith.

The merit commission, which has the power to hire, fire, promote and demote officers, was supposed to be established at the beginning of 2009. However, a state statute gives newly created boards 90 days to adopt rules and regulations related to its duties. The members were chosen earlier this year, but they did not establish rules within that time period.

Over the summer, debate over the validity of the board ensued between the city administration and those who’d been appointed. Then last month, as a solution to the issue, the Jeffersonville City Council passed a resolution re-establishing the board. As a result, its members needed to be reappointed.

On Monday, the council decided with a 4-3 vote not to reappoint Moorer, who had been president of the board.

“I think it’s the right thing to do to allow both the fire and police appointees to get on with the job of what they agreed to do,” said Councilman Nathan Samuel, who voted in favor of Moorer.

“I think [Moorer] deserves the opportunity to fulfill the original appointment,” said Ron Grooms.

Samuel, Grooms and Councilwoman Barbara Wilson voted to keep Moorer. Council members Mike Smith, Ed Zastawny, Keith Fetz and Sellers voted against keeping Moorer.

The vote appointing Clay Smith went 6-1, with Samuel dissenting.

After the meeting, Moorer said there were “no hard feelings.”

“I wasn’t sure how it was going to go. I’m not surprised,” he said.

Fetz explained his vote, saying that the state was very clear on the rules. Two boards were established — one for police, one for fire — he noted.

“I feel like the police had the most dysfunction [one],” Fetz said.

The mayor’s office and the Fraternal Order of Police also have appointments to make — each with two. Those were unclear at press time.

Local businessman Jeff Frye was approved as the council’s appointment to the fire commission.



MORE INFORMATION:



AVERAGE JEFFERSONVILLE MONTHLY SEWER BILLS

• $24 — Currently

• $73 — in 2015, if sewer rate ordinance gets final approval later this month

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