Dunkirk rate hike OK'd (09/09/2008)

DUNKIRK - Water rates here will be increasing, as council members acted Monday to solve a variety of problems with the city's water distribution system.

Following about two hours of discussions and public hearings, council members approved a 19 percent water rate increase which will take effect as soon as the required state statutes can be met.

For an average residential water user who currently pays $25 for 533 cubic feet of water in a month, the 19 percent rate hike will increase that amount by $4.75 to $29.75, according to a report by the city's financial consultants, H.J. Umbaugh and Associates, Indianapolis.

The increase will be used to cover current water department operating expenses. A second increase of approximately 30 percent will be needed if water plant and pipe replacement projects, totaling an estimated $1.3 million, are undertaken, as proposed Monday night by representatives of Commonwealth Engineers Inc., Indianapolis.

Commonwealth representatives Steve Bender and Patrick Zaharako explained Monday that although the city's current water treatment facility is only eight years old, changes are needed to improve water quality and reduce the heavy iron content in city water.

They recommended switching from the current ozone treatment operation to a more conventional system they said would do a better job of removing iron from the water.

"In general, the treated water quality has been inadequate, and complaints from local residents have become a significant concern to water utility personnel and local officials," the Commonwealth engineers said in their report to the council.

To finance what they projected as $887,500 worth of improvements to the current water plant, they recommended applying for State of Indiana Revolving Loan funds through the Department of Environmental Management.

Also to help solve the city's rusty water problem, the engineers recommended adopting a selective water main replacement program, bringing their overall cost estimate to $1.3 million. Areas for water main replacements include sections of Moore Avenue, Hickory Street, Elm Street, Shadyside Avenue and Ohio Street.

The most expensive part of the work would be on Moore Avenue, and a large contingent of Moore Avenue area residents attended Monday night's hearing to express their concerns that such work is definitely needed. In recent years, there have been numerous water main breaks along the street.

The Moore Avenue work alone was estimated to cost $241,300, according to the Commonwealth report.

Regarding the water plant, Bender said the building and much of the equipment could be saved for future use.

Following his initial presentation, Bender said, "Are there any questions on the iron issue?"

"Just get rid of it," one of the approximately 50 audience members said.

Bender said the ozone process does not seem to work well with water where there is a high iron content, and he predicted that residents would notice an improvement in a relatively short time if Commonwealth's recommendations were acted upon.

Regarding how the city could afford to pay for such major improvements, Umbaugh spokesman Tom Michalak described the need for water rate increases as well as options for restructuring water and sewer bond payments.

Also he noted that the city's sewer utility had a substantial surplus and some of those funds could be loaned to the water department at a very low rate of interest.

The loan from the wastewater treatment fund could total as much as $700,000, Michalak said.

Several members of the audience urged council members to take action.

"I think this has gone on long enough," Dunkirk resident Pam Bunch said. Addressing the council members, she added, "I hope you do what needs to be done."

Council members voted unanimously to proceed with the 19 percent water rate interest and have Umbaugh take a look at restructuring the city's water and wastewater utility bond issues. They also unanimously gave Commonwealth the green light to proceed with its planning work.

In other business at Monday night's meeting, council members:

•Heard a report from councilman Tom Johnson that the Dunkirk Foundation had recently provided funds for a new, expanded sign at the Dunkirk City Park where local club emblems could be displayed.

•Learned that lighting and wiring improvements, totaling $1,700, had recently been installed at the Dunkirk Park's large shelter house by Dean Wilson.

•Heard a report from Johnson that the park caretaker's house needs some major repairs, and the search for a new caretaker has been narrowed to four finalists.

•Agreed to have the city do its own ammonia testing for the wastewater treatment plant. Superintendent Tim Kesler said this should save the city money.

•Approved the appointment of Kevin Hamilton to fill a vacancy on the Dunkirk Park Board.[[In-content Ad]]