rates to go up in Osgood
The preliminary engineering report for
the Osgood wastewater plant was presented by David Mohler, Commonwealth
Engineers, at the October town council meeting for Osgood. According
to Mohler, the project will increase capacity at the wastewater
plant as well as address other issues such as hydraulics, pumps,
blowers and problems that occur after a heavy rain.
It was noted that the towns wastewater department is currently
out of compliance with the NPDES permit, which will result in
fines of $25,000 per day per violation. The estimated $3.6 million
project may be partially funded by grants through Rural Development
and Community Focus Fund. If the grants are approved, the Town
of Osgood can expect to pay approximately $1 million via a loan
from Rural Development.
According to Doug Baldisari, Umbaugh Associates, the current rate
interest for a Rural Development loan is about 2.625% for 40 years.
A wastewater rate increase of 43% was proposed in order to raise
funds to pay this loan.
Baldisari noted that there has not been a rate increase since
1999. The proposed rate increase would result in the minimum wastewater
bill going from about $24 to about $35 for 2500 gallons.
Council president Linda Krinop explained that state law requires
the town to have funding set aside each month for operation and
maintenance as well as for debt service. She presented Ordinance
2009-10 which will increase the sewer rates and provide funds
for operation and maintenance.
The proposed rates are: the first 15,000 gallons at $13.98/1,000
gallons; next 15,000 at $12.77/1,000; next 15,000 at $11.66 per
1000 gallons; next 55,000 gallons at $10.50/1,000 gallons; and
over 100,000 gallons at a rate of $7.64/1,000 gallons.
The minimum rate will be $34.95 for 2500 gallons. Tap fees will
be $800 or the actual cost of material and labor, whichever is
greater. The motion to accept ordinance 2009-10 was unanimously
approved with notice of the rate changes to be printed in the
newspaper. A public hearing regarding this issue will be held
at the November meeting.
The motion to adopt ordinance 2010-11, a non-interest bearing
loan for $79,385 from the Regional Revenue Sharing fund to the
Wastewater Utility Bond and Interest fund was approved. This will
allow the town to make the November bond payment as part of the
In other business, Andy Scholle presented a petition to the town
requesting the town vacate the alley between the BP Station and
the house south of it on North Buckeye Street.
All board members were in attendance along with town attorney
Mary Ann Gay to advise. The next meeting will be held on Tuesday,
November 17 beginning at 7 p.m. at the Osgood Town Hall.