 |
A contract was signed, commitments made and a rate structure approved for the new wastewater treatment plant now under construction.
An interlocal agreement between the city of Spokane Valley and Spokane County was inked Tuesday, which allowed for the county to move ahead with its new billing structure for the $170 million sewage treatment facility, which is being built near Trent and Freya.
“This agreement is a result of cautions and recommendations,” said Mike Connelly, Spokane Valley city attorney, but added that its main purpose was to satisfy the bonding requirements to get the plant built. “There are still questions that need to be resolved.”
Back on July 30, the City Council agreed with a tentative proposal to commit as a customer for the new plant. Some council members, however, wanted provisions that would allow for Spokane Valley to find an alternate provider if the county couldn’t provide sewer service for 120 days and an extra seat on an advisory board to oversee the plant.
For his part, county Commissioner Mark Richard said that neither issue was a hang-up to get the deal done. Without a written commitment from Spokane Valley, the county’s bond rating could slip and rates may have gone up considerably.
With the change in the board makeup, there will now be two Spokane County representatives from the Board of Commissioners, two from the Spokane Valley City Council, and one appointed position. Mayor Richard Munson said he wanted the change, since the city will use about 70-percent of the new plant’s capacity.
“Most of the details have been finalized,” Richard said. “I don’t really have a problem with (Spokane Valley) having another member. It’s just an advisory board.”
Also on Tuesday, the commissioners approved a rate increase from $35.34 a month for a typical household to $40.34 in 2010. Rates would rise incrementally to cover treatment plant construction costs and for upgrades to the system. For example, monthly rates would reach $40.54 per month in 2011 and $46.83 monthly in 2012.
The fees are based upon a 20-year payment plan of revenue bonds backed by sewer users. No payments will be made on the principle for the first five years. Total costs are expected to reach $281 million for the plan, upgrades and interest. That amount could drop if treated wastewater goes mostly to the Spokane River. Some could end up at Saltese Flats for a wetlands project during the warmer spring and summer months.
It was possible to stretch payments out another five years to lower users’ monthly sewer bills by $2 or so month. However, that would add another $47 million to the total cost for the plant.
The county is waiting on word from the state Department of Ecology on a new allowable minimum level for phosphorus that can be discharged into the river from the plant. That news could come as soon as this fall.
Spokane County now plans to move forward with bond sales for the treatment plant later this month.
|
|
By
Mike Huffman
