Talkeetna water, sewage rates to increase

TALKEETNA — Residents will likely face several years of consecutive steep sewage and water rate increases, even as Mat-Su Borough officials move this week to examine the system for improper use, officials said.

The sewage utility was constructed in the 1980s on a high spot north of town, after severe flooding led to the contamination of numerous town wells. But the costs of operating the sewage plant and water pump-house have outpaced the rate since the plant’s construction, borough officials said.

As a result, the water utility operated at a $79,000 deficit in 2014, and the sewage utility has a $29,000 operating deficit, according to a rate study conducted last year. Projections developed as a result of the same study show that without a rate increase, the water utility would have a $101,000-deficit by 2019.

The sewer utility has a smaller deficit, and would post only a $45,000 operating deficit by 2019, putting the total operating deficit for both utilities at $146,000, according to projections.

As a result, borough officials are recommending the 2015 budget include a series of successive rate increases between 2015 and 2019. Even with a 13-percent increase in rates, the deficit will only be reduced to $3,000, not eliminated.

While 13 percent might not seem like a lot, each successive increase is added to the previous year’s rate uptick. For example, residential customers presently pay $86.96 for water and sewer combined. Under the proposed increases, that amount will increase by a total of 59 percent, for a 2019 amount of $138.32.

Commercial customer rates are a little more complicated. Most of their fee is composed of a meter service charge, according to the rate study. The water utility also presently tacks on a surcharge for heavy users, defined as those who use 8,000 gallons or more. Both parts of the water cost are set to in increase by 13 percent, meaning a heavy commercial user, who presently pays $54.84 would pay $101.04 by 2019, a cumulative increase of 84 percent, according to the rate study.

For now, borough public works director Terry Dolan says he will only propose a 13 percent increase for water and a 6 percent increase for sewage fees, meaning the total increase for the combined fees will be 9.5 percent for residential customers and 8.7 percent for heavy commercial users.

The ultimate decision for who pays, and what’s equitable is up to the assembly, Dolan said.

“What I’m making is an operational recommendation, if that makes any sense,” he said. “There’s certain things about this I would call our operational issues. One of them is: it’s not well funded. In terms of who funds the thing, that’s a political decision, not an operational decision.”

“I don’t get into those things,” Dolan added. “It’s really up to the assembly as to who’s gonna pay and how much.”

The two remaining members of the board charged with overseeing the operations of the plants — the board itself has only two members, and hasn’t met since December, meaning it can’t reach a quorum — generally say they wish the borough had taken more steps to reach out to them. They aren’t opposed to rate increases, but say they would have preferred a more thoughtful consideration of the rate structure instead of simple percentage increase.

“Increases are necessary,” said chairwoman Jane Steere. “In my opinion it should have been addressed sooner. The board has been saying no to arbitrary rate increases.”

Water and sewer board member Jim Kellard agreed. They’d like to see a greater burden put on heavy commercial and residential users.

“We’d like to see as much as possible based on the usage,” he said.

Kellard and Steere also said the borough had only reached out to contact the board via its e-mail address twice since the start of 2015.

“It’s kind of frustrating,” Steere said. “Members of the community are quick to point out problems, but are not willing to come forward and willing to help work out solutions.”

Steere and Kellard also say the role the sewer board is supposed to play in recommending or eliminating rate increases isn’t well-defined.

“In the paperwork, there’s a generic description of boards within the borough,” Steere said.

The system has also failed regular testing limits for fecal coliform established by the Alaska Department of Environmental Conservation, according to documents provided by Dolan. Official believe that’s in part because customers are depositing bacon grease down the pipes, and they plan to hire a contractor to send cameras through the pipes this week to see if they can identify those responsible. A spike in bacteria last fall coincided with numerous reports of plugged pipes around town, Dolan said.

“Since we had this spike in coliform bacteria in our effluent last fall, we received numerous calls from residents saying their pipes are plugged,” he said. “When we went and investigated it, we found out the sewer pipes were being plugged by grease.”

“I think there’s a very strong possibility what we find ultimately is the malfunction we had last fall was entirely the result of residents dumping grease, fat and oil into the sewer system when they shouldn’t do that,” Dolan said.

Contact Brian O’Connor at 352-2269, brian.oconnor@frontiersman.com, or on Twitter @reporterbriano.