I am here. Only thing on the agenda is consideration of the ordinance approving the solicitation of qualifications and confidential bid proposals to purchase and operate the wastewater plant and wastewater system.
Here is the RFP https://drive.google.com/drive/folders/1aPHSz2NeSPV_rhs2aw4KMVN4IRKRbr6B
Remember, they are only looking at their options. This is not a decision on selling it either way.
Lawyer: At the last meeting the board had a presentation from a consultant who looked at the waste water project. Gave a summary of impact to pay for the project on village’s sewer rates. Consultant suggested they see if someone would want to purchase the system.
The proposal in front of the is a request for proposal which details what someone who would want to buy it has to do. They have until mid-January to turn in the proposal. It is not legally binding, the village can deny any offers.
The consultant estimates that if it is sold the sewer rates will go down. The village would have to raise sewer rates a substantial amount in order to pay for the project.
Some history from me: The village has had artificially low sewer rates for years. Like very, very, very low. For years, the general corp. fund was supplementing the sewer fund.
The village had to do upgrades to the sewer plant. The EPA told the village if updates were not done that during a heavy rain the south part of town would end up with sewage in their tubs and in their sinks, ect. It was not only done for expansion.
Some people argue that the village shouldn’t sell the waste water plant because it is the only means for the village to “make money” however it has never made money and historically sewer plants aren’t really a money making mechanism for municipalities. If anything, they should break even. It has been supplemented through the general corp. fund which takes money away from other projects in the village. To make money, the village would have to raise our sewer rates astronomically.
An audience member is asking why the rates are going up if they did upgrades, ect. Page is saying that he wasn’t apart of that decision and is not going to bad mouth previous boards.
Art is adding some clarification. They originally had bids for 6,8, 9 million. After COVID the bids were 19 million and the highest was 32 million. Art saying the original study was based on unrealistic growth, ect.
The sewer fees bring in 1.3 million a year. It costs 1 million a year. Jim saying they have about $300,000 a year to pay for anything that may be needed out there. So that means two employees, insurance, any capital improvements, ect.
Just a reminder: THE SEWER PLANT IS IN THE RED AND HAS BEEN FOR PROBABLY TWO DECADES.
Page saying its not sustainable to raise the rates enough to cover the cost. Talking about the expenses
Andrea talking about how they don’t run their own water or power plant.
Art saying that they may not get any bids. It’s just a “fishing” expedition.
So to confirm: The RFP is approved. Now they have to see if anyone has any interest in buying it.
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