City Council learns only way to get money to pay for repairs is through grant.
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Published: January 7, 2009
NEWTON - Months after Newton increased its water and sewer rates to qualify for a state grant, leaders may have to increase the rates again if the town receives that grant.
The City Council was disturbed to find out its water and sewer system will require $2 million in repairs and that a Clean Water Management Trust Fund grant, which may include a service rate increase, is the only way to get the money to pay for the work.
With the understanding they would have a certain amount of time to back out of the grant, and that a rate increase isn't a certainty, the City Council approved the application at its meeting Tuesday.
"I'll just address the 800-pound gorilla we all see in the room. We were told during our last budget session we would have to increase our rates dramatically to qualify for these grants, and we raised them 15 percent," Newton Mayor Robert Mullinax said. "Now we're being told that's not enough and that sticks in my craw."
All council members were upset at the prospect of an additional rate increase, about $2.50 per month for the average customer. The grant requires the applying municipality to allow for a rate increase if a grant calls for it.
The news that the city's water and sewer system needed $2 million in repairs, according to an evaluation conducted by McGill Associates of Hickory, also caught council members off guard.
"Our focus is not on the grant," Mullinax said, "but in hearing our pump station is inadequate and below the flood plain level for the first time. That's not good."
Councilmember Roy Johnson put the two issues together when he voiced his concern.
"I have a problem with the state requiring a rate increase after they identify problems that could potentially cause health problems," he said.
The city's system has experienced several overflows due to problems with the Burris Road Regional Pump Station, identified by McGill Associates. Andy Lovingood, P.E., principal with McGill Associates, said the city had experienced four sanitary sewer overflows at that station in 2007, resulting in three notices of violation from the state Department of Environment and Natural Resources.
The Burris Road station is one of seven such stations run by the city. It serves the northeast part of the city as well as receiving some wastewater from the city of Conover.
"The first problem with the Burris Road pump station is that it is below the 100-year flood elevation," Lovingood said.
The station has two six-horsepower pumps, the main one receiving such an inflow it puts a heavy demand on the second. Lovingood said both pumps switch on and off depending on the inflow, which puts wear on the pumps.
The system includes 8- and 12-inch force mains, taking effluent through a gravity sewer on Mount Olive Church Road. Lovingood said the 12-inch pipes have experienced several breaks.
"The part we saw out of the ground seemed to be bleached," Lovingood said of the pipes. "Then, it's close to Highway 16, so maybe it's the result of heavy equipment traveling over it. In my professional opinion, it appears it may be a material issue."
Councilman Wayne Dellinger requested the council table the decision on applying for the grant for city officials to look into the chances of compensation for faulty materials.
"I really wish we could think about this until the next meeting," Dellinger said, "So we can look into if we got what we were supposed to get."
The pipes were laid in 2003 or 2004 and may be beyond the warranty period.
Another problem listed by McGill Associates concerned the system's manhole, the collection point for the gravity sewer. Lovingood said the manhole is relatively shallow at 4 feet deep and during peak flows tends to overflow.
Before making a motion to approve applying for the grant, Councilwoman Mary Bess Lawing laid out the situation from her perspective.
"We have a problem and it will cost $2 million to fix that problem. The city of Newton does not have $2 million and the only way we can get that money is to apply for the Clean Water Management grant," Lawing said.
With the grant, which requires a 25 percent match from the city, the city's cost would be approximately $479,000.
Dennie Martin, with Martin-McGill, said the city would have time to back out of the application if they decided to approve application. However, he reminded them if they missed the Feb. 1 deadline, they would have to wait until next year to apply in the next round of grants.
"And with the current economic climate," he said, "there's no guarantee the money will be there next year."
Martin said representatives from the state would come out and look at the system and the plans for repairs. An announcement of the recipients would be made toward the end of the year.
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