Otsego city officials are planning sewer rate increases to allow for upgrades and repairs at the city’s treatment plant.
It is estimating a $1.9 million project.
City manager Thad Beard said, “The treatment plant needs to be modernized, upgraded and repaired for greater inefficiency.
“It’s such a complex system we aren’t able to do all of it.”
The total 20-year master plan calls for an estimated $20 million in improvements to the plant, but the city doubts it can do all of that.
To do even the smaller projected plan, the city believes its best deal is to borrow from the state’s Sewer Revolving Fund, which allows a 2.5 percent interest loan for the $1.9 million estimated total. That’s better than the city can do in the bond markets, officials estimate.
Because of the SRF loan, the city must estimate the total amount in the manner prescribed by the state which is very conservative.
“We’re hoping—and really expecting—it’ll be less; but we don’t know.”
The other requirement of using the SRF is that the city do a rate analysis to come up with the amount of increase that will cover the work.
“To help offset the pain, it looks like we can do this over two budgets,” Beard said.
If the city commission approves the plan, the sewer ready to serve fee will jump from $20.38 to $47 over the next two years, with the first increase coming in July.
That’s the plan, at least, but if, as officials expect, bids for the project come in below the conservative estimate, the second increase may not be as much.
Beard said, “The rates will only be set to pay back the debt.”
The room where sewage first enters the plant for treatment needs a lot of work, because of the use of a corrosive chemical called ferric chloride early in the treatment process to allow solids to settle out.
The project will change the way ferric chloride is made to be more efficient.
Beard said, “The equipment is if anything beyond its life expectancy. We need to get ahead of the curve on that.”
The planned improvements include:
• Disinfection: Replacement of aging scales used for gaseous chlorine and sulfur dioxide cylinders. Flow based chemical feed instrumentation added for accuracy, replacement of gas detectors, new chlorine and sulfur dioxide piping.
• Sludge Handling Storage and Disposal: Replacement of sludge pumps, heat exchanger and gas compressor/sludge mixer. Sludge store tank decant piping and valves are currently non-functional, leading to issues of sludge storage.
• Ferric Chloride: Replacement of chemical feed pumps, metering equipment and associated piping in the ferric feed room and around the site. Current piping is poorly arranged and partially plugged. Rerouting the piping will enable better employee access and employee safety in filling the tank. This also includes removal and replacement of the alarm station.
• Telemetry: Installation of supervisory control and data acquisition. This is a computer system for gathering and analyzing real time data, enabling real-time observation and manipulation though desktop or mobile terminals.
• WWTP Lab: Building addition to increase the size of lab, replace current 1989 work surfaces, cabinetry and equipment.
• Raw Sewage Pumps: Replacement of existing shaft driven sewage pumps with dry-pit pumps with variable frequency drives. This includes replacement of all piping and valves.
Contact Dan Pepper at dpepper@allegannews.com or at (269) 673-5534 or (269) 685-9571.
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