City Council approves increase in recycling rate

By Kelly Terpstra, kterpstra@charlescitypress.com

Alan Powell says he is losing money.

His business in Charles City, Jendro Sanitation, has felt the effects of Chinese tariffs, import restrictions and a volatile recycling market, so he proposed — the City Council approved — a recycling rate increase for residential customers.

“I tried last year to keep up with the flow of material coming into my facility and literally could not pay the bills to process the material,” said Powell, president of Jendro.

The City Council agreed with Powell’s price increase proposal on Monday at a regular meeting and passed an ordinance to raise those rates via a contract change.

There will be a $1 per month increase in 35-gallon sized totes, $1.75 for 65 gallon and $2.50 for 95 gallons. The rates changes will go into effect for February billing and appear on March’s statement.

“The big driver here is China not taking as much recycled material,” said City Administrator Steve Diers.

There was another proposal of a flat-rate, across-the-board increase of $1.51 to customers that was rejected.

“I wish we weren’t doing this. … I really believe recycling is a good thing for the environment and for the city to continue with,” said council member DeLaine Freeseman, but, he added, “We can’t expect somebody else to go broke to help us with a program.

“I just hope that everybody in the community realizes this is a worthwhile thing to do and for right now we’re all going to have to pay a little bit more to keep it going,” Freeseman said.

The current pricing is a monthly charge of $12 for pickup of 35-gallon totes, $15 for 65 gallon and $18 for the largest size (95 gallon).

“I think we have a really good waste pickup service in our community,” said Mayor Dean Andrews. “It’s fairly easy to do and works out well. But you have to pay for what you get. Increased costs lead to increased fees and we try to keep those to minimum.”

There is a chance that the recycling market will bounce back on Powell’s end and the surcharges could be reversed at some point down the road.

“I’m hoping the markets have stabilized, that they aren’t going to drop dramatically,” said Powell. “We’ve kind of hit the bottom. I hope. I don’t know that.”

Council member Keith Starr said if the tariffs aren’t economically viable anymore, that Powell will let the council know about those changes that could in turn reduce residential customer costs.

“Then this could turn the other direction. I’m assuming that we’ll be able to take off this surcharge if we get to that point and you’ll make us aware of that,” said Starr.

The proposed new water resource recovery facility (WRRF) that is scheduled to be completed in 2022 will require a loan of $19 million for the $20.5 million project, according to Diers.

Diers said new Iowa Department of Natural Resources rules regarding wastewater nutrient reduction also need to be met, and the city’s aging wastewater plant can’t handle it.

“It’s 52 years old. It’s kept in fantastic condition — you’d never know it was 52 years old,” Diers said. “But the mechanics of it — none of it works toward any type of nutrient reduction.”

There are 102 communities across the state of Iowa that fall within a certain flow parameter and have to meet these new reduction standards.

“Nothing with our plant can meet those standards,” Diers said about the current facility.

Based on a 30-year loan with an interest rate of 1.75 percent, the city is looking to implement a 20 percent increase in the sewer rates to be effective upon a change in the ordinance.

The council approved a first reading of the ordinance Monday. After adjusting the time frame, that rate change could come as soon as March and be noticed on customer’s bill in April, according to Diers. Diers said this would be a one-time increase in addition to the annual 3.5 percent rate increase that has taken place since 2008.

“There’s a lot of things involved in this project that this is going to address,” said Diers.

“With the new wastewater treatment plant often comes the added cost of billing it. We’ve taken time to review our rates and to see what we’re going to need to do from a rate standpoint to make budget cash flow.”

Commercial rates will also increase if the ordinance is passed.

A customer who uses 6,000 gallons a month, for example, would see their current bill of $38.62 increase to $46.37.

The current base rate or monthly access fee for sewer use in Charles City is $9.52. With the 20 percent increase that would rise to $11.43. The current variable rate is $4.85 per 1,000 gallons of use a month, which will increase to $5.82 per 1,000.

The city also approved the final plans and bid for Visu-Sewer of Pewaukee, Wisconsin, to complete the 2019 Sanitary Sewer Lining Project for a low-bid cost of $183,520. Visu-Sewer was one of five companies to bid on the project.

The city has successfully utilized the cured-in-place pipe (CIPP) lining process which essentially inserts new pipe into the old. This year’s project will line 8,400 lineal feet of sanitary sewer on North Ohio, North Missouri, North Grand, 14th and 13th avenues.

Preliminary plans and specifications for the SW Development Park Drainage Improvement Project were passed by the council. A bid date of Feb. 14 was set and hearing for the final plans is scheduled for 6 p.m. Feb. 18.

The project helps with flood issues and will include new detention basins. A new culvert crossing under 11th Street will also be constructed.

In other action taken at the meeting:

– A final payment of $45,927.49 was awarded to Nolts Custom Concrete for completion of the 2018 Main Street Sidewalk Replacement Project around the McQuillen Place development. The costs will be assessed against the owners of the McQuillen Place property.

– A agreement was renewed and approved by the council between the Iowa Department of Inspections and Appeals (DIA) and the Charles City Housing and Redevelopment Authority. The purpose is provide assistance with fraud investigations under the Section 8 housing program.

– A new accountant was also approved to be used by the Charles City Housing Department.  That firm chosen was HA Accounting Specialties.

– In anticipation of the Charles City School District selling the 500 North Grand Building, the council approved a recommendation from the Planning and Zoning Commission to re-vacate and convey rights-of-way at Sixth Avenue between North Grand Avenue and B Street, the alley in Block Four and the alley lying between lots four and five in Block Three. A public hearing is set for this resolution on Feb. 4.

– The council accepted the second reading on property at 101 and 111 South Jackson Street to be rezoned for construction of the new law enforcement center. An additional second reading was also approved to vacate the South Jackson Street right-of-way from Gilbert Street and Court Street as aprt of the project.