· Committee: Formed by the City Council last November and consists of: Larry Peery, J. B. Waggoner, Bruce Addison, Mike Frink, Kenneth O’Brian, R.G. Kirby, and Lt. Col Bill Holman. Other participants include: Mike Hall of MECO Engineering, Mayor Fisher, Council Members Georgette Koelker and Pam Hutsell, City Administrator Robin Overstreet, and City Developer Mary Hill.
· Have met weekly since November. Examined issues facing the community over the next 15 years. Interim report issued in January. Experience has been educational and enjoyable.
· General Findings:
· Fayette, and its employees, do a very good job considering the age and condition of the city water and wastewater infrastructure.
· Regulatory Issues
· Water and wastewater treatment requirements are becoming more stringent. The Missouri Department of Natural Resources must comply with federal Environmental Protection Agency guidelines.
1 Meeting new requirements for drinking water with the current plant reduces the rate of water production and makes storage capacity more critical.
2 Meeting regulatory requirements for drinking water is difficult given the age and condition of the water plant.
3 New requirements for ammonia levels in the discharge from the wastewater treatment plant may be impossible to meet with the current lagoon system.
· New permit proposed last summer, strict ammonia limits, proposed permit rescinded, new application submitted this month. A new draft permit will be issued in the near future. A discussion with Senator Stouffer’s office has been initiated on ammonia limits and possible courses of action with DNR However this is resolved, Fayette will have to demonstrate that the wastewater plant does not adversely affect the environmental quality of the Bonne Femme Creek beyond federal guidelines.
· Water Production and Supply
· Fayette has three reservoirs and their capacity is more than adequate for present and future needs.
1 The water plant was built in the 1940’s. The production capacity is limited because of the need for employees to actively monitor the production to achieve water quality. The water plant is “in the open” and has little in the way of security features.
2 Fayette has clear well storage and two elevated storage tanks. One is old. Storage capacity is marginal for emergency situations and could limit future city growth.
3 About 137 million gallons of water are produced each year. Approximately 100 million gallons are billed or accounted for. There are 38 million gallons unaccounted for. The unaccounted for water could be due to faulty meters. There are about 1,130 metered users in the system. The City will begin a program of meter replacement in the next budget year.
4 Fayette has made progress in improving water distribution and replacing old water lines.
· Wastewater Collection and Treatment
· The wastewater plant was constructed in the 1960’s. Average release from the plant is 479,000 gallons/day. When this is compared to the average water consumption of 220,000 gallons/day by Fayette users it is evident that the system has a major problem with infiltration and inflow. The City is looking into contracting for a study of this problem.
1 Sludge has built up in the lagoon and has not been removed since the lagoon was built. This affects its performance. Cost of sludge removal is on the order of $100,000.
2 Much of the sewer collection system is very old and in need of replacement. There are about 300,000 feet of suspect lines. The cost to camera these lines is $ 1 per foot and the cost to clean them is $1.50 per foot. Replacement costs are on the order of $100 per foot.
3 Improvements to the wastewater plant will be needed to meet the new ammonia standard. The stricter the standard, the more costly the improvements. A new plant would cost approximately $ 4 million.
· Rates, Revenue, Debt, and Grant Opportunities
· The water rates for Fayette are comparable to surrounding communities. Sewer rates are lower. Grant agencies use a benchmark for the “typical” residential consumer. This benchmark is that annual water and sewer rates for a user who has a 5,000 gallon/month consumption should each be between 1.75 and 2.0 % of median household income. This is called the “affordability index”. The median income for Fayette is $27,300 and water rates for the 5,000 gal/month user are 1.68% of MHI. Fayette sewer costs for the same user are 0.68% of MHI.
1 Water and sewer are managed in separate accounts. Water rates cover operating costs, debt retirement, and allow for contributions to a sinking fund for improvements. The debt was incurred for the new water tower and the balance is $855,000. Water rates generate about $500,000 each year and are enough for debt retirement and about $50,000 into a sinking fund for improvements. There is no debt on the sewer side. Sewer rates cover operating cost and little is left for a sinking fund for improvements.
2 Grants are available for water and sewer improvements. The Community Development Block Grant program provides up to $500,000 per project. The USDA provides both low interest loans and grants. The maximum grant that could be expected from USDA is on the order of $300,000 to $500,000 because of the limited grant funds made available to mid-Missouri.
· The Needs
· Improvements to the wastewater plant. Cost is upwards to $4 million dollars.
1 A new water tower. Cost is approximately $1 million dollars.
2 Improvements to the water distribution system. Cost is approximately $1 million dollars.
3 A new water treatment plant. Cost is up to $5 million dollars.
4 Improvements to the sewer collection system. Cost could be as much as $8 million.
· Needs clearly exceed the short term financial ability of the community. The needed work will have to be accomplished over a 25 to 30 year period. The community will need to fund some improvements on an on-going basis and rely on bond issues to fund large expenditures.
1 Grant funds will help but Fayette will have to pay its own way. A combination of CDBG grants and USDA grants could provide about 25% of a 4 million dollar project. Both of these grant sources are subject to federal spending and they may not be available in a few years.
2 Water and wastewater rates should be set at a level to provide for ongoing system replacements and improvements as well as sinking funds for major improvements. Our committee in only advisory and we will make some rate recommendations to the Council. The Council will have to make the difficult decision of rate increases. Further, the Council is the group that will have to make decisions putting any bond issue before the voters of Fayette. Fayette citizens will make that decision.
3 The following are seen as immediate needs:
· Water meter replacements over the next three years and on an on-going five year cycle after that.
1 An engineering study to determine losses from the water system. At present, the loss rate is 28%. Losses above 10% are a concern for most systems.
2 An infiltration and inflow study at the treatment plant. The excessive amount of infiltration and inflow make it difficult to operate the plant the way it was designed.
3 An infiltration and inflow study should identify problems in the sewer collection network. An on-going program to replace collection lines should be developed.
4 An engineering study of the current wastewater plant and a characterization of the Bonne Femme Creek. The community will need to determine the effect of the plant on the Bonne Femme Creek in order to negotiate permit limits with DNR.
5 The engineering study of the current wastewater plant should plan for sludge removal and an overflow basin to capture excess inflow during heavy rains. The study should plan on the likelihood that plant requirements will become more stringent in the future. Further, the study should identify the treatment options and costs that are available to meet new permit requirements.
· Community growth is a very important factor in future planning. At present, our water and wastewater infrastructure will not support much growth. New elevated storage and a new water plant will be needed to support major growth. Fees for new connections should reflect the cost of providing those services. If the community is proactive in promoting growth, the additional revenue would help to meet infrastructure needs and keep rates down.
1 Fayette will have to make wise decisions in order to meet as many needs as possible with the limited resources available. A failure to recognize the needs and to adequately fund them will only defer the problems, not solve them.