BG eyes rate hike to keep up with wastewater expenses

BG wastewater plant

By JAN LARSON McLAUGHLIN

BG Independent News

A study of Bowling Green’s wastewater services has shown that revenues over the next few years are not sufficient to meet costs.

A report was presented to Bowling Green’s Board of Public Utilities Monday evening, suggesting incremental rate increases over the next three years.

The study also showed that residential users appear to be subsidizing the commercial and industrial wastewater customers in the city, according to John Courtney, who conducted the study.

It was recommended that rate increases be phased in over the next three years. The rate hikes will vary, with residential customers seeing a 3.6% increase, commercial and industrial customers seeing a 13% hike, and wholesale customers seeing a 20.7% increase.

The study shows that most of the costs for operating wastewater services are fixed costs yet a large portion of revenue comes from variable usage rates. The report recommended that most of the rate adjustments be made to the monthly fixed charges, to provide a more predictable revenue stream for the utility.

The study listed rate comparisons for some neighboring communities.

The proposed monthly residential rate in Bowling Green after three years would be $21.75. That compares to current residential rates of $65.89 in Napoleon, $40.71 in Perrysburg, $31.69 in Fremont, and $26.41 in Findlay.

The proposed monthly commercial rate in Bowling Green after three years would be $120.60. That compares to current commercial rates of $219.39 in Napoleon, $204.45 in Perrysburg, $166.94 in Fremont, and $97.36 in Findlay.

The proposed monthly industrial rate in Bowling Green after three years would be $990. That compares to current industrial rates of $2,044.50 in Perrysburg, $1,877.19 in Napoleon, $1,397.80 in Fremont, and $676.74 in Findlay.

Another project discussed at Monday’s Board of Utilities meeting was work on water and sewer infrastructure on West Wooster Street from Church Street to Haskins Road, and on Haskins Road up to Wallace Avenue.

BG Utilities Director Brian O’Connell said Poggemeyer Design Group was hired to update the city’s water distribution model. This analysis is mostly complete and indicated that a 12-inch water main would be adequate to serve this area. Valves, hydrants, and water service lines will also be reviewed for replacement.

There are multiple sewers on West Wooster Street and the staff recommends reducing this to one sewer while trying to reduce the use of two rear yard sewers at the west end of the project. The engineer hired for this work will need to determine an appropriate pipe size to serve this area. Manholes, catch basins, and sewer laterals will also be reviewed for replacement.

Due to the scope of this project, the city’s engineering division will not be able to perform the design work. Engineering fees are estimated at around $275,000 for the water and sewer work. A total of $2.2 million was included to cover these improvements but many details are still unknown. 

Another project addressed during the meeting was in the Village Subdivision, located on the north side of West Poe Road between Brim Road and BG High School. 

During recent hydrant flushing, several water main breaks occurred unexpectedly, O’Connell said. Water main breaks can occur when opening or closing a hydrant too quickly, however the staff knows to perform this operation slowly in order to avoid breaks. Water distribution operators made repairs to the breaks but they noted the poor condition and deterioration of the water main which is likely due to corrosive soils in the area.

All of the water mains in this subdivision were installed at about the same time frame using similar materials. Staff recommends replacing the water mains in the subdivision in order to avoid further damage and loss of water service to customers.

Approximately 6,000 feet of water main would be replaced. Revere Drive and a portion of Jefferson Drive has 12-inch pipe but the remainder of the subdivision is 6-inch pipe. At a minimum, the 6-inch pipe would be upgraded to 8 inches. Water valves will be replaced with this work and the condition of the hydrants will be evaluated. The city may also consider replacing its portion of the water service lines in the right-of-way.

Due to the scope of this project, the engineering division will not be able to perform the design work. Engineering design fees are estimated at around $200,000. The estimated project cost in the budget is $1.6 million, but many details are still unknown.

O’Connell recommended that the city apply for assistance from the Ohio EPA on the project.