Expensive choices put before Gravette council

Special town hall meeting called to discuss options and costs of sewer plans

Wednesday, September 1, 2010

— How to finance upgrading Gravette’s wastewater treatment facility to meet new federal/state discharge limits was a major topic at Thursday night’s city council meeting.

Gravette has been wrestling with the problem for months in an effort to ease the financial burden on the city and ultimately the users of the system.

The city’s engineering firm, McGoodwin, Williams and Yates (McGWY), had presented three alternative solutions to meet the phosphorus and nitrate discharge limits which the current treatment facility cannot meet.

Several weeks ago the Council requested McGWY to research the cost factor of another alternate system which council members Byron Warren and Terry King had discovered during a trip to Maine.

The three original alternatives would involve estimated capital expenditures of $7.9 million for plan 1, $8 million for plan 2 and $6.6 million for plan 3. Eachwould require major monthly sewer bill increases for customers. The two more expensive plans would utilize part of the current system; the third would involve transporting Gravette’s wastewater to Decatur for treatment.

Plans discussed

Engineers Thursday night discussed the three alternatives as to customer cost and added the fourth alternative which would involve total use of the present system and would also require construction of additional lagoons. The cost of this new alternate plan 4 is $12.5 million, the engineers estimated.

Jessica Keahey, representing McGWY, reported that her research involved contacts with numerous facilities in several states including Virginia, West Virginia, Maryland, Maine and Missouri.

She explained systems in those states are not subject to the extremely low phosphorus and nitrate discharge levels imposed on Northwest Arkansas systems, including Gravette. She told the council some statesdo not require the same testing procedures, and operation of plants in those states is different because of the more lenient discharge standards.

She said some systems also spread effluent on large acreages under regulations less restrictive than Arkansas. Some operate in winter conditions not applicable in Northwest Arkansas and the problem of sludge disposal is addressed differently than would be required in this area. She also pointed out that the so-called “reed type” lagoon systems of Maine utilize vegetation that is not germane to this climate.

Engineer Jeff Ritter elaborated further on the new plan 4 which would utilize the present lagoons. It would require construction of at least three additional large lagoons with appropriate buffer zones. Such a plan would have to meet state requirements and would require an estimated 55 additional acres of land. Cost of the land is estimated at as much as $660,000, he told the Council.

Jim Ulmer, McWY engineer, then explained at length the customer cost factor of the original three alternative plans and compared them with the fourth plan.

Customer Costs

Presently Gravette’s minimum sewer bill to customers is $12.21 per month, including $2.68 per thousand gallons, for a total minimum monthly bill of $12.21. Based on 4,000 gallons, the monthly bill totals $20.25.

The minimum bill for the alternate plan 1 would be $35.92 including $9.91 per thousand gallons or $35.92 per month. Based on 4,000 gallons the monthly bill would total $65.66.

The minimum bill for the alternate plan 2 would be $37.16 which includes $10.58 per thousand gallons or $37.16 per month. Based on 4,000 gallons themonthly bill would total $68.89.

The minimum bill for alternate plan 3 would be $28.33 per month including $8.73 per thousand gallons or $328.33 per month. Based on 4,000 gallons the monthly bill would total $54.51.

Under the new alternate plan 4, the minimum bill would be $66.33 per month which includes $10.52 per thousand gallons or $66.33 per month. Based on 4,000 gallons the monthly bill would total $97.88.

Sales Tax Possibility

Ulmer then presented two additional scenarios which would require approving an additional sales tax to help pay a major portion of the bonded indebtedness required to construct the system.

Using alternate plan 1 and adding an additional one and one-quarter cent sales tax, the minimum bill would be $8.33 per month including $8.33 per thousand for a total of $8.83. Based on 4,000 gallons the monthly bill would total $32.93.

Using alternate plan 3 and adding an additional one cent sales tax, the minimum bill would be $7.45 including $7.45 per thousand for a total of $14.90. Based on 4,000 gallons the total monthly bill would be $29.31.

Using different sales tax amounts and depending on which plan is approved the monthly minimum, the thousand gallon cost and the 4,000 gallon cost would be adjusted accordingly.

Public Meeting

The Council took the information under advisement and a special meeting, a town hall meeting, will be held at 7 p.m., Tuesday, Sept. 7, at the Civic Center. The Council will receive public input and comments before making a decision, which Ulmer said must be received by state agencies by Sept. 9.

News, Pages 1 on 09/01/2010