By Michael Howell –
The Town of Stevensville got the word at its June 13 council meeting that, if bill collections for water and sewer services don’t improve, its massive wastewater system improvement project may come to a screeching halt. The Town needs to pass a Bond Resolution to fund the sewer system improvements that have already begun, but in order to receive those funds the town must meet an “additional bond test” demonstrating that revenues from the water and sewer services are sufficient to meet the debt service on the bond.
Dan Johnson of USDA Rural Development told the Council that its new water and sewer rates, which were raised significantly to help fund the improvements, were sufficient to meet the debt service, but only if the funds were collected in a timely manner. He said that with 91 percent of the fiscal year over, only 68 percent of the revenue had actually been collected. The Town has an $873,000 contract with HDR Engineering for the sewer project. Johnson said the ongoing work would require the town to pay out $88,000 to $100,000 this month and $200,000 next month. But before the bond to pay for the project is approved the town must demonstrate that it has the income to meet the debt. Right now it doesn’t pass the test.
“Time is of the essence,” said Johnson.
The Town’s bond counsel, Dan Semmons of Dorsey and Whitney, explained that the test is based on the previous year’s collections plus 10 percent. Semmons emphasized that with an ongoing project with bills to be paid it was essential that the town meet the bond test. Semmons said that interim financing through the state Board of Investments to keep the sewer project on track until the Bond Resolution could be passed was contingent on showing that the required amount of revenue was being collected.
“Your engineer needs to see that you will pass the test,” said Semmons.
He said that one possible solution would be to institute a monthly collection policy
“You did it on the water side,” he said. “You need to do it on the sewer side.” He said the problem was not insurmountable but an issue that needs addressing in a timely manner.
Semmons said that he needed the Town’s permission to sit down with its staff, with RD and with the Interim Financing people and see what they could do.
Public works superintendent Ed Sutherlin urged the Council to act.
“We’ve got people working on the sewer project and they need paid,” he said.
Semmons, Johnson and the town’s billing clerk left the meeting to discuss the collection numbers.
Discussion of the Town’s proposed Sewer Ordinance was the next agenda item.
The Town passed an Emergency Ordinance changing its water bill collection to a monthly process in early May and then began the process of passing a regular Ordinance as the emergency ordinance only lasts for 90 days. Changing the sewer bill collection policy was delayed to give Town Attorney Kiethi Worthington more time to work up a draft for the sewer collection policy, which she characterized as a more difficult procedure since sewer services cannot simply be shut off, as water service can, to force a payment.
Worthington told the Council that she had completed a draft of an amended Sewer Ordinance. She said that the proposed draft “parrots the Water Ordinance with only one change.” That change, she said, was due to the fact that the sewer can’t be cut off like the water can. Instead the Town has the option of filing a tax lien, taking it to Justice Court or turning it over to a collection agency.
A motion was made and seconded to approve the first reading of the proposed Sewer Ordinance.
The Ordinance was then read and approved unanimously.
At the end of the meeting Town Clerk Sue Gibson told the Council that Utility Clerk Denise Philley was working hard on collections and that work at the town hall was being seriously disrupted by the number of phone calls coming in about the water and sewer bills. She said some people were very angry and difficult to deal with over the matter.
Mayor Lew Barnett said that he would accompany the utility superintendent when it came time to shut off services. Councilor Desera Towle said she hoped the police would be notified when they were out doing shut offs. She was concerned about the possibility of serious hostilities erupting.
Discussion of a proposed Phosphorous Wastewater Discharge Ordinance was tabled.
Consideration of annexation of the properties belonging to John and Laurie Porter at 213 and 219 Charlos Street, was tabled at a previous meeting due to concerns that a moratorium on annexation might still be in effect. Town Planner Ben Longbottom said that his research showed that the moratorium was lifted in February of 2007. He said the Planning and Zoning Board was recommending annexation of the property and he presented a draft resolution to that effect.
The resolution of annexation required the Porters to hook the houses up to Town water but hooking up to the sewer would not be required until the existing septics fail.
Councilor Pat Groninger expressed concerns about not requiring hook up to the sewer.
Longbottom stated that there was an ordinance requiring hook up to the water system upon annexation but not the sewer. Utility Superintendent George Thomas said that was because sewer service was not always available.
Laurie Porter told the Council that they were seeking annexation in order to hook up to the Town’s water system because the well serving one of the homes had failed. She said the other well was in good condition and both septics had been examined by the County Sanitarian and were in good shape. She said the Sanitarian told her that when the septics did fail that the permits would not be renewed and the homes would have to be placed on the Town’s sewer system at that time.
Groninger made a motion to approve the annexation with the understanding that when the septics failed the homes must be hooked up to the sewer system.
Attorney Worthington said that an amendment to the Resolution of Annexation submitted by the Planning and Zoning Board would be required.
Longbottom said that such an amendment was immaterial. He said that once annexed the county could not issue a septic permit in the Town limits and the homes would necessarily have to be placed on the Town’s sewer system if the septics failed.
Worthington suggested asking for a letter from the sanitarian to the effect that a replacement septic on the property would not be allowed.
Longbottom stated that a letter from the sanitarian was not necessary because the county could not legally issue a septic permit in the Town limits.
Worthington said the town’s options were to either pass the resolution as written, or pass a line item amendment to the Resolution and then pass the Resolution, or table the matter.
Groninger then withdrew his motion, “so we can table it till we get the proper verbiage.”
In another matter Groninger asked that consideration of additional advertising in the Ravalli Republic about town business be placed on the next meeting’s agenda for a vote.
”We have discussed the facts as far as being able to advertise and on the issue of only once a week makes it difficult in getting them to the public.” He said additional publication of advertisements in the daily paper in addition to the weekly was needed.
“Only being able to advertise once a week made it difficult and we discussed many times before as far as being able to meet meetings and get them notified to the public and what not. I’d like to recommend we entertain it at the next meeting for a vote. This is just for discussion tonight but in regard to an additional publication using the Ravalli Republic being that they are a daily paper as far as Monday through Friday as well as the Bitterroot Star once a week to where we could accommodate ourselves with faster response to the public with regards to meetings.”
Councilor Robin Holcomb called it “a good idea” and the issue will be placed on the next meeting’s agenda.
In other business the Council:
• approved the recommendation of PCI to accept the low bid from 4G Plumbing out of Missoula to install water meters with automatic reading capability throughout the town for a cost of $384,855. The engineer’s estimate of the cost was $273,380. The higher bids were attributed to the uncertainties involved in the installation process.
• approved adoption of a new format for council minutes with a narrative style
• approved a Master Agreement for consulting services at the airport between the Town and Morrison-Maierle, Inc. a consulting firm out of Missoula.