|
|
|
By Richard Kerns
rkerns@newstribune.info
Tribune Staff Writer
KEYSER – Even as it mulls several water and sewer projects that could increase residents' utility bills in the near future, the city of Keyser must move to raise water rates by as much as 30 percent, wholly independent of those projects, just to make the city's water system pay for itself.
Keyser Mayor Randy Amtower said at Wednesday's City Council meeting that municipal water and sewer systems by state law must be self-sustaining entities, and the city water system needs a significant infusion of additional revenue to meet that standard.
“That's the first thing that has to happen in proceeding with anything we do,” the mayor said in the midst of discussing a proposed $11 million water system upgrade.
A year ago the city went to the West Virginia Public Service Commission seeking a 30 percent rate hike as the first step to securing funding for the water system upgrade – a two-phase project that significantly differed in phase-one from the work now being proposed.
That increase – which had drawn formal opposition from the New Creek Water Association, which uses Keyser water – was turned down by the PSC on a filing technicality.
Amtower said Wednesday night that the common perception at the time was that the rate hike was tied directly to the project. He said that is incorrect. The rate hike was needed, the mayor noted, just to make the system “level,” so that it brings in enough revenue to cover expenses without having to draw from general city revenue.
Aside from the work now being proposed, the city of Keyser in the near future will seek such a rate hike to keep the water system solvent.
“One of the things no one wants to hear is 'rate hike,'” the mayor said. “It will be coming. We have no choice. It has to happen.”
Prior to Wednesday's meeting, Amtower met for more than an hour with a representative of the U.S. Department of Agriculture, seeking clarification on the city's ability to change the water system upgrade from its original design. Having been advised that the project can still be modified, Amtower and the Council
have moved to change elements of the first phase work.
Phase two, which involves replacement of the 80-year-old water treatment plant, would remain largely unchanged. However, much of phase one would be scrapped under the new plan, including replacement of the century-old water main on Limestone Road, and extension of water service to Hollywood Road.
The third element of the phase-one work would have replaced the existing water tank at Potomac State College, and installed a new one at a higher elevation. Following an inspection of the tank that found it could be repaired, the city now wants to repair that million-gallon tank, and erect a second, smaller tank at the same site – and at a higher elevation to address pressure issues in some neighborhoods – allowing the existing tank to be taken off line for repairs.
With the USDA indicating that the project cost must remain about the same as the original design, Amtower is proposing – with the consent of the city's Water Board – that a new element be added to phase-one by replacing about 5 miles of aging galvanized steel lines in the city. Most of the lines are located on the West End, and contribute significantly to treated-water loss that totals about 12 million gallons a month.
Amtower noted that the phase-two funding includes money from the recent federal stimulus package, and that the funding for that work has a deadline of September, 2015. The phase one work, to be financed through long-term loans, does not have such a deadline.
In other business Wednesday night, the mayor announced that the city has retained RK&K Engineers to design the breaching of the old Limestone Dam. Amtower said he has pressed the firm for a “no frills” project at the least possible cost to the city. However, in meeting with RK&K and the West Virginia Division of Environmental Protection – which has mandated the dam's decommissioning – he said a previous grant of $100,000 will not fully cover the cost of the work.
As with the water rate hike, though, he said the city has no choice but to take on the project. “We're either going to spend money on the project, or spend it on (DEP) fines,” he said.
The next meeting of the Keyser Mayor and City Council will be Wednesday, Sept. 28.
By Richard Kerns
rkerns@newstribune.info
Tribune Staff Writer
KEYSER – Even as it mulls several water and sewer projects that could increase residents' utility bills in the near future, the city of Keyser must move to raise water rates by as much as 30 percent, wholly independent of those projects, just to make the city's water system pay for itself.
Keyser Mayor Randy Amtower said at Wednesday's City Council meeting that municipal water and sewer systems by state law must be self-sustaining entities, and the city water system needs a significant infusion of additional revenue to meet that standard.
“That's the first thing that has to happen in proceeding with anything we do,” the mayor said in the midst of discussing a proposed $11 million water system upgrade.
A year ago the city went to the West Virginia Public Service Commission seeking a 30 percent rate hike as the first step to securing funding for the water system upgrade – a two-phase project that significantly differed in phase-one from the work now being proposed.
That increase – which had drawn formal opposition from the New Creek Water Association, which uses Keyser water – was turned down by the PSC on a filing technicality.
Amtower said Wednesday night that the common perception at the time was that the rate hike was tied directly to the project. He said that is incorrect. The rate hike was needed, the mayor noted, just to make the system “level,” so that it brings in enough revenue to cover expenses without having to draw from general city revenue.
Aside from the work now being proposed, the city of Keyser in the near future will seek such a rate hike to keep the water system solvent.
“One of the things no one wants to hear is 'rate hike,'” the mayor said. “It will be coming. We have no choice. It has to happen.”
Prior to Wednesday's meeting, Amtower met for more than an hour with a representative of the U.S. Department of Agriculture, seeking clarification on the city's ability to change the water system upgrade from its original design. Having been advised that the project can still be modified, Amtower and the Council
have moved to change elements of the first phase work.
Phase two, which involves replacement of the 80-year-old water treatment plant, would remain largely unchanged. However, much of phase one would be scrapped under the new plan, including replacement of the century-old water main on Limestone Road, and extension of water service to Hollywood Road.
The third element of the phase-one work would have replaced the existing water tank at Potomac State College, and installed a new one at a higher elevation. Following an inspection of the tank that found it could be repaired, the city now wants to repair that million-gallon tank, and erect a second, smaller tank at the same site – and at a higher elevation to address pressure issues in some neighborhoods – allowing the existing tank to be taken off line for repairs.
With the USDA indicating that the project cost must remain about the same as the original design, Amtower is proposing – with the consent of the city's Water Board – that a new element be added to phase-one by replacing about 5 miles of aging galvanized steel lines in the city. Most of the lines are located on the West End, and contribute significantly to treated-water loss that totals about 12 million gallons a month.
Amtower noted that the phase-two funding includes money from the recent federal stimulus package, and that the funding for that work has a deadline of September, 2015. The phase one work, to be financed through long-term loans, does not have such a deadline.
In other business Wednesday night, the mayor announced that the city has retained RK&K Engineers to design the breaching of the old Limestone Dam. Amtower said he has pressed the firm for a “no frills” project at the least possible cost to the city. However, in meeting with RK&K and the West Virginia Division of Environmental Protection – which has mandated the dam's decommissioning – he said a previous grant of $100,000 will not fully cover the cost of the work.
As with the water rate hike, though, he said the city has no choice but to take on the project. “We're either going to spend money on the project, or spend it on (DEP) fines,” he said.
The next meeting of the Keyser Mayor and City Council will be Wednesday, Sept. 28.
