S T A F F  R E P O R T

For the business Meeting of: September 1, 2015 August 20,2015

TO: Douglas Adkins, City Manager

FROM: Scott Tadych, Public Works & Utilities Director

PURPOSE To adopt legislation approving a 10% user rateincrease in the sewer fund to be used solely for sewer infrastructureimprovements.

BACKGROUND and FINDINGS

Sewer rates are typically reviewed with City Council everycouple of years taking in consideration operational, maintenance, and capitalimprovement needs of the sewer system. The rates were last discussed in 2013with a rate increase of 10% effective January 1st of 2014.

Middletown’s water and sewerrates consistently rank in the lower half of communities in the annual OakwoodWater and Sewer Rate Survey for southwest Ohio. We are currently 25th out of 63communities surveyed for lowest sewer rates.

A significant factor affecting future sewer rate increasesare the need for major capital improvements to the system. Middletown, like many other older citiesacross the nation, has combined sewers that drain both rain water and sanitarysewage. The combined sewer flow is transported to the wastewater treatmentplant during dry periods. When there are significant rain events the combinedsewers are overloaded with rain water and discharge at several points along theriver. The City is in active discussions with the EPA on a solution to addresscombined sewer overflows. Multiple alternatives are being evaluated to reducethe number of overflows. The alternatives range is cost from approximately $80to $250 million over a 25 year period. During this same time frame majorrehabilitation will be necessary for our sewer collection system and wastewatertreatment plant. As you may recall there have been multiple sewer collapsesover the past several years. This is just the tip of the iceberg. Nearly halfof the City’s sewer system is 50 years old or older and will require extensiverehabilitation going forward. $142 million is needed to repair the sewer systemover the next 25 years. An additional $68 million will be needed forimprovements at the wastewater treatment plant as well. Most the majorcomponents of the plant were installed in the mid-50’s SEWER USER RATE INCREASE– INFRASTRUCTURE FEE All told the City is looking at $290 to $460 million infuture improvements to the system. Funding options for theseimprovements are limited mostly to user fees therefore it is necessary toadjust sewer rates accordingly.

ALTERNATIVES

Do not create the infrastructure fee.

FINANCIAL IMPACT

This fee will cost a typical residential user an additional$2.11 per month for sewer. The infrastructure fee will be a separate line itemon individual utility bills. The 10% infrastructure fee will generateapproximately $850,000 per year. EMERGENCY/NON-EMERGENCY

Non-Emergency

ATTACHMENTS

Sewer Rate Survey

MIDDLETOWN CITY COUNCIL AGENDA

TUESDAY, September 1, 2015

BUSINESS MEETING – 5:30 pm – COUNCIL CHAMBERS – LOWER LEVEL

1. MOMENT OF MEDITATION/PLEDGE OF ALLEGIANCE TO THE FLAG

2. ROLL CALL

3. PRESENTATION- Feed OhioDays Proclamation

4. CITIZEN COMMENTS, GUESTS, ORGANIZATIONS’ REPORTS Ann Munafo- Butler CountyElderly Services Program

5. CITY MANAGER REPORTS

6. CONSENT AGENDA. . . Matters listed under the ConsentAgenda are considered to be routine and will be enacted by one motion and onevote of consent. There will be no separate discussion of these items. Ifdiscussion is desired, that item will be removed and considered separately.

(a) Approve City Council Minutes: August 18, 2015

(b) Receive and File Board & Commission Minutes:Planning Commission- July 8, 2015

(c) Confirm Personnel Appointments: Sarah Baker-SeniorAccount Clerk- City Tax Division- Finance Department

(d) Receive and File Oaths of Office: Kevin Conrad, CynthiaCobaugh-Davis, Erica Priest

7. MOTION ITEM

(a) Authorize the City Manager to enter into a contract withJohn R. Jurgensen Co. to proceed with the 2015 Local Street Improvement Program,

Part 2. COUNCIL COMMENTS

 LEGISLATION

1. Resolution No. R2015-31, a resolution accepting the Amounts and Rates as determined by the Budget Commission and authorizing the necessary tax levies and certifying them to the County Auditor and declaring an emergency
2. Resolution No. R2015-32, a resolution authorizing the City Manager to submit an application to the Ohio Public Works Commission for Project Year 30 requesting funding for improvements to Yankee Road, to enter into agreements for such funding, and declaring an emergency. (No action requested until September 15, 2015)
3. 3. Resolution No. R2015-33, a resolution to make adjustments to appropriations for current expenses and other expenditures of the City of Middletown, Counties of Butler and Warren, State of Ohio, for the period ending December 31, 2015. (Nuisance Abatement Fund) (1st Reading)
4. Ordinance No. O2015-46, an ordinance amending Section 263.01 (Cemetery Board – Establishment; Members) of the Codified Ordinances. (1st Reading)
5. Ordinance No. O2015-47, an ordinance amending the sewer rates levied and assessed in Section 1040.03 of the Codified Ordinances by adding a surcharge to be applied to infrastructure improvements to the City sanitary sewerage system, including the pumping, treatment and disposal works. (1st Reading)