Council approves sewer rate increase

from The Sun

by: Aimee Henderson
December 5, 2008


HOLYOKE – After months of discussion and disagreement, the City Council voted on Tuesday night to raise the city’s sewer rates by 15 percent from $4.66 per 1,000 gallons to $5.40 per gallons of water used.

The Council voted 8-6 in favor of the increase, with one councilor absent. Voting against the increase were Councilors John Whelihan, Kevin Jourdain, Rebecca Lisi, Diosdado Lopez, Elaine Pluta and Peter Tallman. Councilor Timothy Purington was absent.

The sewer rate increase had been tabled at the council’s last meeting after a 9-6 vote in favor of tabling the report. The council had previously voted on the rate increase at their Sept. 2 meeting in a 7-6 vote favoring the increase, but a two-thirds vote was needed to pass.

The increase is needed to pay construction costs, which will prevent sewage overflow into the Connecticut River totaling closeto $9 million. There are also costs from outstanding loans, interests and user fees, since the wastewater treatment plant has been privatized.

Councilor John O’Neill led the discussion in favor of the increase, saying, “We are mandated as a council to fully fund the budget we have approved.” He added, “The deficit continues to grow because we are not adequately funding it.”

For years the sewage fees have brought controversial conversations, starting when the city hired AOS Operating Company three years ago to run the wastewater treatment facility. Last year the council raised sewer rates by 139 percent, which wasn’t enough and so the most recent increase was brought forward.

O’Neill argued that the increase was the only way to fairly fund the budget, ensuring money from free cash or the stabilization fund wouldn’t be used.

“We have to (increase rates),” said O’Neill. “That enterprise budget is bleeding.”

Councilor Jourdain did not see eye-to-eye with O’Neill saying the 15 percent increase in unaffordable to the average Joe during these economic times.

“Even through the last fiscal crisis in 1991 we didn’t raise rates,” said Jourdain, adding that the increase would only be good for the next couple years.

“The City Council should be setting the rate, not using this ‘take it or leave it’ approach.”

An order filed by Jourdain which would modify how rates are set passed later in the meeting.

Council to set sewer rates

from The Republican

Thursday, December 04, 2008
By JEANETTE DeFORGE
jdeforge@repub.com


HOLYOKE - For the first time in more than 50 years, the City Council will be able to adjust sewer rates instead of solely accepting or rejecting recommendations.

The council adopted the new ordinance in a 13-1 vote on Tuesday, shortly after deciding to accept a Board of Public Works recommendation to raise sewer rates by 15 percent to $5.40 per 1,000 gallons used.

Raising the rates has continually been controversial, even though the wastewater enterprise fund has a $250,000 deficit.

Most members agreed on Tuesday that some rate increase was needed, but argued against the 15-percent recommendation. It passed in a 8-6 vote.

Councilor Kevin A. Jourdain said he could accept a 3- or 4-percent cost-of-living raise, but found 15 percent too high.

"If we don't have the power to dispute the rate, what is the point of approving it?" asked Councilor Rebecca Lisi.

The procedure for setting sewer rates was developed in 1961. It called for the three-member Board of Public Works to recommend changes, and then for the City Council to approve or reject them.

At the time, wastewater was not treated, and the rate was 89 cents for 1,000 gallons of water used. It was rarely boosted, and in the 1980s, it was still $1.95 for 1,000 gallons and the department still had a $3 million reserve, said Jourdain.

But about seven years ago, the U.S. Environmental Protection Agency mandated that the wastewater treatment system be upgraded to prevent frequent overflows of untreated sewage into the Connecticut River.

The multi-million-dollar project has required the city to raise rates, and the Board of Public Works said it expects to have to continue recommending 15-percent increases every few years, said Jourdain.

"This way," he said, "we will have more control over the department and it will lead to more accountability and more transparency."

He argued that it is fairer to have 15 elected politicians set sewer rates than the three people appointees to the board.

Before rates are set, Jourdain said, public hearings will be called so that residents and the Board of Public Works can express opinions.

Public Works Superintendent William D. Fuqua said that he and the board will work with the council to make sure the wastewater treatment budget is funded adequately.

"It is a different procedure," he said. "We will have to work with them and provide the council any information to set the rates in the future."

Holyoke sewer fee increase fails

from The Republican; Wednesday, September 03, 2008
By KEN ROSS

HOLYOKE - A City Council move to increase the fee for sewer service failed by a narrow vote Tuesday.

The council voted 7-6 in favor of the increase. But because the motion requires a two-thirds majority vote, the proposed rate increase was not approved.

Voting in favor of the increase were Councilors Diosdado Lopez, Joseph M. McGiverin, John J. O'Neill, John P. Brunelle, Patricia C. Devine, Anthony M. Keane and James M. Leahy. Voting against were Councilors Rebecca Lisi, Todd A. McGee, Elaine A. Pluta, Peter R. Tallman, John E. Whelihan and Timothy Purington. Councilors Kevin A. Jourdain and Donald R. Welch were absent.

If approved, the sewer use fee would have been raised by 74 cents or 15.8 percent from $4.66 per 1,000 gallons to $5.40 per 1,000 gallons.

The increase is needed mainly to help pay off $6 million in debt for the city's new sewage treatment plant and $3 million for a combined sewer overflow abatement project on Mosher Street, William D. Fuqua, Department of Public Works superintendent, has said.

Several councilors spoke in favor of the proposed rate increase. "I certainly don't want to see an increase but I think it would be short-sighted for us to vote against this," Keane said.

"I think we have to do the responsible, fiduciary thing," Leahy said.

But opponents to the defeated rate increase mainly noted the way the sewer system is currently managed through a contract with a private company, United Water.

"We do have the capacity to manage it on our own," Lisi said.

That's why Pluta said she believed the city should investigate the possibility of getting out of the contract with United Water.

"We have no oversight as to what's going on," Pluta said.

Last month, Fuqua said he hoped to implement the increase as soon as it was approved by the council. "It's important because we're losing about $150,000 a month in anticipated revenue," Fuqua said Aug. 6.

On May 19, the Board of Public Works voted 3-0 in favor of recommending the rate increase.
The proposed increase was not a big surprise because public works officials planned two years ago to review sewer rates every two years, Fuqua said in May.

As a result, Fuqua said he does not envision rates going up again in the near future.