WINONA LAKE - For more than two hours of its 3-1/2-hour meeting Tuesday night, the Winona Lake Town Council discussed a clear water treatment plant for the town.
The town's sewer has been serviced by the city of Warsaw for a number of years, but in the past couple of years the town has challenged the rates Warsaw imposed on the town. Now Winona Lake is looking at having its own sewer treatment plant, claiming Warsaw is unfair with its rates it imposes on Winona.No decision was reached and no vote was taken Tuesday. However, toward the end of the discussion with the public, Councilman Jim Lancaster said one of the prevailing things that came out of the meeting would be for Winona Lake and Warsaw city council members, and maybe members of the public, to meet in a public forum on the issue. All the information and both sides of the issue could be hashed out then before the public.
Last night's meeting began with an overview of the clear water treatment plant.
Kenneth K. Jones, president, Wightman Petrie, said the total cost of the treatment plant for Winona Lake would cost $4.9 million. The Aeromod Wastewater Process Solutions facility would handle half a million gallons per day. It would service all the town's current customers plus have room for growth.
The treatment plant has a fementor tank, selector tank, aeration basin, aeration sequox and ClarAtor Clarifier.
"These processes are all computer controlled. It's an automatic system," Jones said. "... The treatment capabilities of this facility are so simple to understand for the operators as well as the non-operators. It's not a complicated process."
Sludge waste is minimal for the system, and it will save the town money over time, Jones said. The sludge waste is stored in the digester tank.
"One thing we like about the concept is every wall of the tank is sharing a wall with another tank. So we kind of like the square shape and we recommend it," Jones said. If it needs to expand, it will be less expensive than a round system.
Other areas with the Aeromod system include McCordsville, Monrovia, LaGrange, Fortville and Koontz Lake.
"Yes, this is a wastewater facility, but what it's making is clean water. That's what we're going to produce before it's released," Jones said.
He said it won't discharge into Cherry Creek, but will make its way to the Kiefer-Evans Ditch. The discharge will be "far cleaner" than what's in Cherry Creek and in Winona Lake now, he said.
Sue Sargent Haase, certified public accountant with London Witte Group, Indianapolis, began her presentation but didn't get to go through her entire presentation. She was told by one resident that he didn't want to hear the "demonizing" of Warsaw as that was what her presentation sounded like to the resident.
There currently is no written agreement between Warsaw and Winona Lake regarding sewer. The town is working under a 2002 agreement with Warsaw for a term of 20 years. The rate is for the receipt and treatment of Winona Lake sewage works effluent. The town currently pays a "negotiated, reduced commercial rate" per 1,000 gallons treated, Haase said.
Winona Lake agreed to pay capital costs to Warsaw amounting to $1,157,000, given that Warsaw needed to expand its treatment capacity and that Winona Lake wanted to assure that future treatment capacity existed for its current needs and possible future increases. The town paid the city $600,000 by March 1, 2002, and agreed to pay the remaining $557,000 on a monthly basis over the subsequent 20 years, equal to $27,850 per year. On a positive note, she said, there is no minimum monthly bill, so if the town doesn't send any flow for treatment to Warsaw, there is no monthly treatment billing.
According to the treatment agreement, Haase said, Warsaw has no responsibility for things like servicing or billing users of Winona Lake's sewage works, maintaining the town's sewage works, payment of expenses incidental to operations in the town or providing funds for debt service.
Haase provided a treatment rate history. Prior to July 2005, the Warsaw residential rate was $28. That increased by 10 percent to $30.80 in January 2007.
The Warsaw treatment rate to Winona Lake per 1,000 gallons was $1.82 prior to July 2005. That was raised 14.29 percent to $2.08 in July 2005 and 66.83 percent to $3.47 in January 2007.
The Winona Lake residential rate prior to July 2005 was $35, increased to $42 in July 2005 and to $44 in January 2007. That was a total percentage increase of 25.72 percent.
Haase said Warsaw also provides a low-income rate to its residents. It does not provide a low-income rate to Winona Lake.
With the estimated treatment plant cost being $4.95 million, Haase said the town has $1 million of cash on hand. That comes from a surplus Winona Lake has from its sewer rates. The remaining costs of the treatment plant would come from debt issuance of $3.95 million at an estimated 5 percent interest rate. The maximum annual debt payment would be $320,569 and a five-year debt reserve funding requirement equal to $64,114.
John Elliott asked how much of his $44 monthly bill goes to Warsaw and how much was retained by Winona Lake for current pipes. He was told that 60 percent of his monthly bill went to Warsaw, while 40 percent went to Winona Lake for its costs.
As a new resident of Winona Lake, Elliott said he doesn't think the town has really sat down and negotiated with Warsaw. "Good luck," said street superintendent Pete O'Connell.
The public in attendance at the meeting were told by the Winona Lake board members that there have been no negotiations with Warsaw. The city just tells the town what its rate is and doesn't negotiate.
Regardless of what the town does, Jerry Nelson said the town is obligated to Warsaw for $27,800 per year for the remainder of the capital expenditure. Haase said they were only obligated if they couldn't sell it back to Warsaw or to someone else.
Asked where the town was going with the treatment plant, O'Connell said they can control their own rates. Staying with Warsaw, the city could raise Winona's rates tomorrow and there would be nothing Winona could do about it.
Another resident said the sewage issue was another example of why there should be a referendum of the people to see if Winona Lake should join Warsaw. If the two boards can't get along, he said maybe they should join as one.
Later in the meeting, Kent Adams said some day there may be a Unigov system between Warsaw and Winona Lake like there is in Marion County.
Nelson said the analysis points out that if the town gets its own sewer plant, it's just going to break even at best. Once the town locks itself into the plant, they've locked themselves into at least a residential rate of $44 per month.
"With the debt service taken on for the town, I'm not sure as a citizen we're not better to stick with Warsaw," Nelson said.
Clerk-Treasurer Retha Hicks said they've tried to talk to Warsaw about the sewer rates for the past two years. Warsaw has not moved from square one. She said Winona hasn't been able to negotiate with Warsaw.
After further discussion, the council ended the night's meeting at about 9:30 p.m.
