A rate study for Georgetown Municipal Water and Sewer Services (GMWSS) is nearing completion, said Mayor Tom Prather who warned the approaching rate hike will be “substantial.”
The mayor shared his concerns during the mayor comments of the Oct. 24 council meeting.
“We have a responsibility to provide a rate structure to provide for the needs of GMWSS,” Prather said. “The rate increase is going to be substantial. It is simple math, but we have an aggressive set of improvements needed. The demands are large. The improvements are essential.”
Georgetown’s growth patterns over the past two decades have strained GMWSS, and that growth is expected to continue for at least another decade, he said.
The projected rate increase is due to four factors including changes in the financing of Waste Water Plant One, an aggressive capital campaign needed to meet the community’s continuing growth, current projects cost more due to inflation and federal regulatory updates, Prather said.
Last fall, construction on Waste Water Plant One was halted due to engineering errors in the design. The city and the engineering firm, GRW, are negotiating how to manage the costs associated with the errors and the time lost to the halt of construction. The statute of limitations is near, but city officials are hopeful a lawsuit will not be necessary.
“But there are limits to what we can reasonably recover,” Prather said about the negotiations.
Chase Azevedo, GMWSS general manager, agreed any new rate hike will be costly to its customers.
“It’s not fun, but it is necessary,” he said.
The impact of new federal regulations associated with the water crisis in Flint, Michigan, are going to have a “huge financial impact,” on all water companies, including GMWSS, Azevedo said. Massive amounts of lead and copper discovered in the Flint water system led to illness and a shutdown of the city’s water system.
“The regulatory updates involve testing for lead and copper in our drinking water,” Azevedo said. “The problem will not be testing what we own, but testing those connections of private property that we do not have access to. We have not determined how we are going to do this, but we will. Every water company will have to do this.
“There is no doubt this will bring a big price tag.”
GMWSS must adjust its model for determining sewer capacity going forward, Prather said. There are large areas of undeveloped land, some opened by the bypass, that will require initial trunk sewer systems, which are costly, Prather said.
“The magnitude of what needs to be done as we approach areas that have not been developed is huge,” Prather said. “There are lots of pressures to move into these areas, but we must be mindful of the costs. We have in place an effective privilege fee system for developers, but the cost for these trunk lines will be more than any single developer could likely shoulder.”
City and GMWSS officials are reviewing the rate structure study, but no timeline for a final decision has been made on new rates.
Before the council meeting, a public hearing was held for a Community Block Grant to rehabilitate five houses in the Boston area. Five houses were affected, including two homes that were rebuilt and three houses that were renovated. The cost of those five projects was a total of $436,165, with another $200,500 for planning, architecture and other administrative costs.
The households affected include nine people, including three disabled individuals and two female-led households.
In other business, the council:
—Presented checks to Elizabeth’s Village, Amen House, Gathering Place, Habitat for Humanity and Friends of the Parks from the American Rescue Plan Act. The amounts varied based upon expressed need to the council. A committee of council members interviewed each organization and made the determination of award from a pool of $100,000 designated previously by the council.
—Bluegrass Community Action presented photos and statistics regarding its plans to expand routes scheduled in Georgetown, including eventual inter-city routes with Lexington and Frankfort. The new buses along with new routes and schedules will be phased in, starting in November through the first of the year.
—Approved a lease agreement for the Jailer’s House with Scott County Fiscal Court. The location will be used for the offices of mayor, cheif administrative officer, human resources, payroll and the new affordable housing coordinator. Plans are to be moved into the Jailer’s House before Thanksgiving. The city clerk has already moved into the Rock House right before the bridge across Elkhorn Creek, near the city park and Cardome.
—Approved purchase of delineators to run down to the red light at the Walmart right-in, right-out entrance. Too many drivers are going around the delineators which are only a few feet down the road, creating a traffic hazard. The new delineators will force drivers to go to the red light.
—Approved a grant from the Kentucky Office of Homeland Security to purchase hazmat suits for the Georgetown Fire Department.
—Approved order to accept bids to replace roof at Fire Station 3.
—Approved order to bid for purchase of fire engines at about $1.5 million each. Due to supply chain issues the fire engines will not be ready for delivery for three years.
—Approved resolution accepting Law Enforcement Protection Program for grant to purchase $187,000 of firearms for Georgetown Police Department.
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