I have been involved with preliminary planning, design and cost estimates for a sewer project for Seeley Lake since 1984. The current project, which began about 10 years ago, was agreed to provide a sewer treatment system for no more than $100 per connection per month. The current project design is estimated to cost $35 million to provide sewer service to approximately 515 customers. This results in the project construction cost to be estimated at $68,000 per connection. This sewer system is too expensive for our district.
The board has been unable to secure adequate grants to keep the customer portion of the cost to below $100 per month. The current figures are $130 per month. This is only accurate for the first two years, because the board is using $100,000 per year of our reserve account to subsidize the cost for the first two years, for the benefit of Phase 1 only. Year three the monthly amount increases by $55 per month to a total of $185.00 per month. This monthly cost most likely will be added into current rental rates.
A 40-year loan is being used for part of the funding which I believe is too long. Life expectancy for plant equipment and some processes is calculated at 20-25 years.
The bond for the treatment plant is being voted on by all four phases.
Board member Walt Hill stated at the candidate forum meeting last fall that Phase 3 and 4 may not even be connected to the treatment plant and instead would utilize an alternative method of septic collection and treatment. If this does happen why would they provide any funding for the treatment plant?
Also the Board and County Health Department stated several times that an unprecedented amount of grants have been awarded to our district. If this is true, and I believe it is, how can we expect to be able to afford the infrastructure construction costs for Phases 2, 3 and 4 in the future based upon the same ratios used for Phase 1.
Additionally, it will require a vote to approve the cost of construction by members in each phase. If the cost per month is as high or higher than the current estimate, passage is unlikely.
At the last Sewer Board meeting, the Health Department stated if the sewer system is not constructed, they may require all new and upgraded septic systems to be Level II Nitrate Reduction Treatment systems. At $185 per month times 40 years, the average connection will pay $88,800 out of pocket for their sewer service, not accounting for inflation and increased O&M costs.
I am not advocating for the Level II system, I’m only using it for comparison. Level II systems cost less than $25,000 installed. At 2.5% interest and $176.50 monthly payment, your septic system would be paid for in 14 years for a total of $29,665 out of pocket expense.
I am for an affordable, effective sewer system that would use traditional loan time frames and be economically feasible and fairly funded.
I have a 41-year career in the water and wastewater industry as an operator and in equipment and system design and distribution.
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