Tap fees in question for project

By RACHELLE HAUGHN and STEVE GARBACZ
The Commercial Review
Negotiations on a sewage treatment agreement between the city of Portland and the Jay County Re-gional Sew-er District will remain in flux until both sides can resolve a fee issue.
Jim Forcum, a Hartford City attorney representing Portland, said Thursday to the Portland Board of Works that those who live in the district’s project area — properties along Foxfire Drive and Ind. 67 — be charged both a connection fee and an application fee.
But Gerald Kirby, president of the district board, says he is “stunned” the city is considering charging multiple fees when just one district-built sewer line will be connected to city-operated sewer mains.
Forcum told board members that the $500 tap-in fee, which in this case would be referred to as a connection fee, be charged for anyone in the district who connects to the city sewer. Also, he suggested that a $25 application fee (for the connection) also be charged.
He also suggested that anyone in the district who wants to connect a home to the sewer system must give 30 days notice, so the wastewater treatment plant superintendent has ample time to inspect the property.
Sewer district board president Gerald Kirby said Thursday afternoon that he was in shock that the city would ask for the $500 per property.
Kirby says that the sewer district’s contractor will install the taps at each location and the entire sewer district line will physically tap into Portland’s existing system at only one point.
“How the board (of works) could expect all of the houses to pay tap fees to the city of Portland when they’re not even tapping into their system is just beyond belief,” he said. “One industrial tap fee is what we would expect to pay.
“The tap fee is to put in the tap, buy the materials for the tap and maintain the tap,” Kirby said. “Portland is doing none of that. A tap fee isn’t an honorarium — ‘May I please dump my sewage into your system?’”
Portland Mayor Bruce Hosier said this morning, however, that the connection fee does, to an extent, pay for the privilege to send sewage to the city treatment plant but also covers costs of inspections.
“That’s part of it, that’s an element of it,” he said. “We have processing for each individual — it requires a representative of the sewage department … to go out and make sure those connections are being done in compliance with the city of Portland ordinance.
“We have time and resources invested in these hookups,” Hosier said of the fee and added, “They’re very fair.”
Hosier also said that these guidelines are in the city’s ordinance and that it is enforced equally among all connections, citing a similar situation in the past for property owners on county road 150 South, where a line and taps were already put installed but not connected.
“The connection fee is for the process that the city of Portland has to take responsibility for to bring on new customers regarding the sewage,” he said. “We have the responsibility to protect the integrity of our process. By having the paper trail we know who is connected in.”
Hosier said he was surprised that the sewer district board would seek to circumvent the city’s ordinance.
“We’re not going to arbitrarily pick and choose who we enforce,” Hosier said. “I find it interesting and somewhat disappointing that that’s the attitude of whoever, Mr. Kirby or the board.
“The city of Portland is doing the sewer district a huge favor,” he said.
Board members voted to have Forcum contact Steve Murphy, the attorney representing the sewer district, and to instruct him to add these charges to the sewage treatment agreement.
The board will review — and possibly vote on — the amended contract during a special board of works meeting Thursday, Dec. 9, at 10 a.m.
The sewer district area outside of Portland includes 31 houses, including all homes in the Foxfire Addition, and homes located along or near county road 125 South and Ind. 67.
City attorney Bill Hinkle is not representing the city in negotiations with the sewer district because he lives in Foxfire Addition.
Sewage usage in the district will be monitored by one meter. Residents will pay district officials, who will then, in turn, pay the city. The district will be responsible for maintenance.
In other business, board members voted to eliminate Monday curbside recycling collection in the city.
Buck Landrum of Best Way Disposal said the company currently collects recycling three days a week. “Most of the time, the truck is not even halfway full,” he said. He suggested one of the collection days be eliminated.
Board members voted to eliminate Monday recycling collection, and to only have recycling be picked up on Wednesdays and Fridays. Board members did not discuss when this change will go into effect.
After the meeting, city clerk-treasurer Randy Geesaman said the reduction will not alter how much the city pays the company for collection.
Also Thursday, board members learned that work along Massachusetts Avenue for the Steen Addition storm and sanitary separation project will begin Monday.
David Ayala of R.W. Armstrong said the work on the avenue is expected to last two weeks.
Bruce Hosier, mayor of Portland, said the schedule and updates for the project will be posted on the city’s Web site, which is www.thecityofportland.net.
In a related matter, board of works members approved both a change order for Bruns Building and Development Corporation and to pay R.W. Armstrong more money for onsite inspection work for the Steen Addition project.
Ayala said Bonor Group inadvertently failed to include elevations in the plans for the project. Bruns asked for an extra $1,200 for 11 days of inspection work.
Also, because city engineer Gene Amlin is unable to do onsite inspection every day for project, R.W. Armstrong officials asked for up to $56,250 for about 55 days of work. Ayala said the company will only charge the city for days its project manager works. This person will be doing the inspections and will be paid $170 per hour.
The base contract for the company is $103,900.
The Steen Addition storm and sanitary sewer separation project is expected to be completed in May.
Also Thursday, board members:
•Opened bids for environmental work at the Sheller Globe/Bailey Building, 400 S. Bridge St. The work will be funded through a $170,496 Brownfield Grant.
The city received the following bids: Bruce Carter and Associates, Indianapolis, $36,794; ATC and Associates, Indianapolis, $46,167; Creekrun LLC, Montpelier, $57,041.
Board members took the bids under advisement and will select one at the Dec. 9 meeting.
•Opened bids for asphalt, stone, petroleum products, fuel and lubricants.
Speedway America, which owns Village Pantry, was the only company that submitted a bid for fuel. The company offered the pump price minus tax.
The city also received bids from Meshberger Brothers, G&G Oil, Berne Ready Mix, AgBest and Ernst Concrete.
These also were taken under advisement and will be discussed at the Dec. 9 meeting.
•Approved a leak adjustment for a property at 640 E. Floral Ave.
The leak occurred between the water meter and the house. The sewage portion of the water/sewer bill will be adjusted down to a three-month average prior to the leak.
•Approved a tap-in application for Randy Mann for a new house at 099 West 200 South, Portland.
Geesaman said Mann has paid the tap-in fee and application fee.[[In-content Ad]]