ETNA GREEN - Passage of an ordinance Tuesday night at the Etna Green Town Council meeting allows for a 73.5 percent hike in sewer rates. Another ordinance increases water rates by 3.9 percent.
No remonstrators were present for the hearings on the ordinances, although some residents in attendance had questions about the increases.
The sewer ordinance reflects the analysis and suggestions made after John Julian of Umbaugh & Associates completed a rate study.
The town is about to undertake a sewage facility expansion project and the current rates are not enough to cover the $995,000 loan. The rate hike will allow the town to generate about $63,000 per year and that amount will cover day-to-day operating expenses, retire the debt with Rural Development, fund the debt service reserve and cover depreciation costs.
The increase will bring the monthly billing for an average user to about $16.75. It takes effect Feb. 1.
The water rate increase was needed because of an error in reading one of the meters at Schult Homes. Julian said that the additional 3.9 percent increase over a recent water rate hike will reflect about an additional 83 cents per month per bill.
Julian also said that the previous increase would have been 3.9 percent higher if the discrepancy in the meter reading hadn't occurred. "Without the misreading, we wouldn't be doing this tonight," Julian said. He also said that without fixing the discrepancy, the town wouldn't have enough revenue in the water to repay the bonds for the water project.
With the water increase, usage of 10,000 gallons of water will cost about $50, officials said, but the average residential customer uses between 5,000 gallons and 6,000 gallons per month.
In a related matter, the council voted to award the contract for the sewer project to HRP Construction Inc. of South Bend for $797,167, contingent upon approval of financing with Rural Development. HRP was the lowest of four bids received for the project.
The bids were received at the November meeting and reviewed by the town council members and engineers from Commonwealth Engineering.
Closing out the water project, Paul Donaldson of Foresight Engineering presented change orders, final billings and certificates of substantial completion that were approved.
Cripe Excavating will return in the spring to reseed any areas in which grass doesn't begin to grow and Ortman Well Drilling will be grading and seeding around the well house. Other than that, the project is virtually done.
In other business, the council:
Accepted the recommendation of incoming council members to hire Randy Cloud to replace Rich Walls as electric superintendent. The employment would begin Jan. 3 if Cloud accepts the contract and passes a background check. Cloud would receive a base salary of $23,000 and the town would pay for training fees. He would then be required to remain with the town for four years after receiving his certification or would have to pay back 25 percent of the cost of schooling for each year prior to the four years if he opted to leave before that time.
Announced that Robin Claussen was hired as deputy clerk at a cost of $6 per hour.
Approved membership in the Indiana Association of Cities and Towns for $522 for 2000 and the purchase of a modem for the computer to eliminate down time for repairs. The cost of the modem is $253.
Explained the town attorney's contract for the benefit of incoming council members who may not know what services the attorney provides. A $1,500 retainer covers the attorney's attendance at monthly meetings, routine questions and telephone calls and ordinary ordinances and resolutions. Matters outside of those covered by retainer will be billed at the normal hourly rate.
Voted to pay the $750 bill submitted by Hostetler Lawn and Landscaping of Middlebury for the repair of the baseball diamond. The Little League organizers were supposed to notify the town prior to the work being done, but the town was not aware of the repairs until the bill was received. In the future, the town must be notified in advance for the cost to be covered.
Tabled a decision on choosing a new carrier for health and life insurance for town employees. Quotes received from four insurance agencies will be reviewed and a decision is expected during the end-of-year meeting set for 7 p.m. Dec. 27 in the fire station meeting room.
Clerk-treasurer Laura Baker thanked outgoing council members Andy Cook, Keith Robbins and Russell "Pete" Miller for their eight years of service to the town. The three will be replaced on Jan. 1 by Ruben "R.B." Conley, Jeff Klinefelter and Eileen Hall. New members will be sworn in during January's meeting.
The next regular meeting is at 6 p.m. Jan. 11 in the fire station meeting room.