City of Troy Public Works Committee met Nov. 9.
Here are the minutes provided by the committee:
MEMBERS PRESENT: Dan Dawson (Chair), Nathan Henderson, Tim Flint, Debbie Knoll (substitute for Troy Turner)
MEMBERS ABSENT: Troy Turner
OTHERS PRESENT: Alderman Tony Manley, Alderman Elizabeth Hellrung, City Administrator Jay Keeven, City Engineer Tom Cissell, Public Works Director Rob Hancock, City Clerk Kim Thomas, Deputy Clerk Andrea Lambert
Chairman Dawson called the meeting to order at 5:00pm. Alderman Debbie Knoll substituted for Alderman Turner who was unable to attend.
Chairman Dawson made a motion to approve the minutes of the October 4, 2021 meeting as presented. Second by Alderman Henderson. The committee members approved the motion by unanimous voice vote.
Sewer Plant Replacement/Expansion
Chairman Dawson informed the committee that they need to determine whether it is more advantageous for the city and its citizens to sell our sewer plant or keep it and contract the rebuild and expansion. City Administrator Keeven informed the committee that Troy’s water/sewer rates are considerably lower than the other municipalities in Madison County. In fact, we have the lowest rates in the area. He believes keeping the plant would be in the best interest of the city. If we sell, the rates would be controlled for the first 3-5 years under the contract, but after that we would have no control over the rates charged. A chart was distributed, showing the Illinois-American sewer rates in other SW Illinois communities. Rates, beyond the initial contract period, are significantly higher than our current rates. In addition, if we sell the plant, we would lose control over the growth and growth pattern of the plant. Each additional subdivision or business build-up would require permission/concurrence of the plant owner. Once we lose control, our expansion is up to somebody else. We would lose the ability to grow in the direction we want to grow.
We can obtain the necessary funds for the rebuild and expansion by obtaining a loan through the Illinois EPA, with an interest rate of just 1.25%. The estimated cost of a new plant (rebuild/expansion) is estimated at $25-30 million. Customer rates would need to increase in order to cover the loan. The estimated increase would be 20% for the first 4 years and then an estimated 2-3% increase each year thereafter.
Per Mr. Hancock, Public Works Director, even with the increases, our rates would still be less for the minimum or average user (4800 gallons or less per month) than the other municipalities in the area, whether the plant is leased or owned.
After the completion of the new plant, the Public Works Department would need $3.2 million per year: $2.9 million for plant operation (loan payments, personnel salaries, etc.) and an additional $300K per year for system maintenance and repairs. He believes the proposed rate increases will cover these costs. If the council agrees to keep the plant, Mr. Keeven and Mr. Hancock recommend TWM for the project because we have already used them for multiple major water and sewer projects. They are already familiar with our plant. They would need to update the contract they provided to us in late 2020 and present it for our review. Then the council would need to authorize the mayor to execute the contract.
Once we sign a contract, it will be about a year to complete the design. Then we would be able to go out for bids. Construction would take 2 to 2 ½ years, completing sometime in 2025. Alderman Henderson suggested an article be written and placed in the local paper about the problems with our current system and why we need to increase capacity and make improvements. Mr. Hancock said our current system is not biologically overloaded, it is hydraulically overloaded. IL EPA has already reached out to us and TWM, wanting to know the status of the plant and plant expansion. His opinion is that we should keep the plant and work with TWM to complete the rebuild/expansion.
Mr. Keeven would like to have a recommendation from the committee so the council can authorize the mayor to enter into an agreement with TWM. The general consensus of the committee is to keep the plant. Mr. Hancock said we need to start discussions with TWM because there are filing deadlines if we plan to move forward. He believes the EPA loan application process starts in March.
Spring Valley Road, Phase 3
Mr. Cissell briefed the council on this project.
The project is for road work on Spring Valley Road, south of Hwy 40. We received a grant in the amount of $621,600 from IDOT to construct .4 miles of concrete road from 560 feet north of Austin Drive to 475 feet south of Charleston Drive. The road would be three lanes so that a left turn lane can be provided for entering the subdivisions. The grant was received about ten years ago. The project was put on hold. Mr. Cissell does not know why. We are at the point where we have to do the project or give the grant funds back to IDOT.
The engineer is TWM. Ten years ago, when they estimated the project, it was a $900K job. Now, the project is $1.5 million. TWM is requesting a fee of $41,660 finish the plans. They have also suggested a $7,400 resurvey because the survey is 14 years old. We would also have to by 17 parcels of land for right-of-way. To resume the design and purchase the right-of-way is $53,600, making total cost of pre construction efforts and work over $100,000. We have until 2024 to start/complete construction, but it will take that long to get all the pre-construction work done. The total cost of the project, including property purchase and utilities is probably close to $2 million.
We need to move on this or return the grant funds to IDOT/East-West Gateway. We have already requested and been granted an extension on this project. A request for a second extension could cause us to lose the grant. To receive a larger grant, we would have to turn this money back in and then reapply. We probably won’t get approved on the new application. It’s really hard to get a grant on this road because it is a county road and there isn’t enough traffic. There are no current plans for future development in the area.
This project is not in the city budget so it would take a 2/3 vote of the council to approve. Mr. Cissell said he will get an official cost estimate for the committee to review. He will also try to find matching grants.
There being no further business, Chairman Dawson made a motion to adjourn. Second by Alderman Henderson. The motion was approved by unanimous voice vote of the committee members. The meeting adjourned at 6:27 pm.
http://www.troyil.us/AgendaCenter/ViewFile/Minutes/_11092021-493
