Pictured is the city’s current water plant, which was first built in the late 1800s, according to historical documentation. The city is planning on replacing it in 2022 with a new plant on Raymond Road.
(Journal-Tribune photo by Will Channell)
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While Monday’s Marysville Finance Committee meeting was largely about next year’s budget, the city’s plans for a new water plant took some discussion time.
Officials said the project would cost about $70 million. About $48.5 million in debt would be issued to fund the project with a traditional 30-year payment plan. The rest would come from the city’s various water-related funds.
“We need to probably wrap up the design for the plant in 2019 and position ourselves to begin construction in 2020,” City Manager Terry Emery said.
The project would include a water plant on Raymond Road across from the reservoir, a new water tower near Costco and related infrastructure.
Emery noted that even if the city starts in 2020, there’s a 24-month construction process. That would put the completion date somewhere in 2022.
As it is, the city’s plant on Main Street is already aged past its effectiveness, according to Emery. Historical documentation provided by the city has the plant built in the late 1800s.
“If any of you want to go to the old water plant and see what we’re dealing with right now in some of the areas and some of the crumbling concrete,” he joked. “Still the fact that we’re still three years out from having that completed if we initiate this now puts us in a situation where we still need to make sure that this water plant is good and effective at providing (quality water).”
Emery said the city’s water and wastewater funds are strong. According to Emery, the city could keep its water and sewer rates the same for the next five years. Even with the new water plant in the works, officials said the water fund is healthy enough to keep rates where they are.
“We’ll be able to maintain our water rates at their existing level and still achieve that project,” Emery said. “Which is extremely positive.”
Utilities and services continued being the topic of conversation at the budget discussion, with officials discussing the possibility of various fee increases.
City Finance Director Justin Nahvi said Republic Services is charging the city a little over $16 per month per resident for trash pick up and that could go up soon to about $19. After 2019, that fee would go up three percent each year for the remainder of the five-year contract.
As it stands, the city charges residents $16 per month. Officials are proposing an increase to about $20.50 next year to offset that increased cost. After that, there would be a 50-cent per month increase yearly up through 2022.
“That’s to accommodate the cost that Republic is charging the city,” Nahvi said.
Committee member Nevin Taylor asked if the city has received quotes from any other waste management companies. Emery said in the waste industry, there’s no competitive market.
“When we’ve gone out and looked at our community partners around the area, they’re all looking at the same type of increases,” Emery said.
Officials said the rate has been at $16 for the past few years. Mayor J.R. Rausch asked if the city could save money by striking Republic’s bulk trash pickup service from the contract and pricing it somewhere else.
Emery said he’s not convinced that would mitigate the rate increase in any significant way.
Taylor also asked if the city can make it so apartments must use the city’s service.
As it stands, properties that are more than four residential units have to find their own waste management service.
Taylor said the contractors that some apartments find sometimes fall behind in their pickup schedule. Officials singled out the apartments across from American Legion Park as perpetrators.
Officials also discussed a desire to increase the city’s $3.75 per residence per month storm water fee by 75 cents from 2019 to 2021.
Emery said the heavy rain event in June brought several drainage problems to the forefront. The city is hoping to mitigate those problems over several projects over the next several years.
“It hits this fund hard,” Emery said.
Emery said if the city stays at its existing rate, it would likely take a decade or more to complete all those projects. Increasing rates would allow for a project per year or two.
“We just don’t think it’s prudent on our part to do a project about every two to three years and taking that long,” Emery said.
The city’s yard waste fee, which officials call the sanitation fee, could also go up. That fee is currently $6.50 per month. Officials are looking to increase that by 50 cents per month every year from 2019 to 2022.
That fee comes from Public Service Director Mike Andrako saying he’s not getting enough income for equipment maintenance.
Emery stressed that these numbers are not set in stone yet. Council will continue discussing the possibility of these fees in the coming months.
“We’ll hit these high points at the next work session,” Emery said. “All these numbers that we’re discussing tonight could be modified.”