Council OKs sewer rate increase, cruise line deal

BY CHUCK VANDENBERG
PCC EDITOR

FORT MADISON - A Fort Madison City Councilman said he's disappointed in a new increase in sewer rates, not because of the increase, but because the city didn't keep pace with expenditures over the past three years.

At Tuesday's regular City Council meeting, the city council approved a final reading of a sewer rate increase that will bump city rates 13% over the next two years with recurring rate reviews built into the new rate structure.

The increase will effect all residential, business and industrial users within the city.

Councilman Matt Mohrfeld said the $150,000 the rate increase will generate isn't enough to cover the expenses in the city's waste water budget.

"As I look at this, and I've voted against this every time, I'm not happy how this has been pushed up so we're behind the eight ball," he said. "Three years ago we stuffed a $1 million extra expense into this budget and this increase doesn't have a prayer in covering what's going to happen in the next three years.

Mohrfeld said his statement was more of commentary on why the city didn't react three years ago when the extra expenses were added to the budget.

Public Works Director Larry Driscoll said the city did a rate survey and took a hard look at what residents would be able to afford.

"We did a rate study revenue-wise and we took into consideration what people could afford and tried to base our budget off that. I don't think it's the wrong approach," Driscoll said.

"It's slim pickings in that department and it's an efficient department. So there's no savings there for personnel. Our hope and prayer is to continue with these (sewer separation) in-house projects, otherwise financially we'll be wiped out. I think we're rolling the dice that my department will be able to perform these projects and not taking on anymore."

Mohrfeld said he felt the city is going to eventually have to trim expenses or find additional revenues on top of the new increases to save the department.

"This is kind of a commentary of why we didn't react three years ago. I'm sorry but that's remiss and I find it frustrating at a lot of levels," he said.

"Be forewarned this $150,000 is not going to cover that million additional expense. We're going to have trim the expenses in the budget or have another revenue source. How did we think this was going to get paid off?"

One glaring expense is debt reduction for the city's waste water treatment plant upgrades. Additionally the city is currently under Environmental Protection Agency mandates on additional sanitary and storm sewer drain separations.

The increase was approved 6-1 with Mohrfeld voting against the rate change.

In an unrelated issue, the council approved a 20-year agreement with American Cruise Lines to allow docking space on the city's current pier on the west side of Riverview Park.

The lease is only exclusive to American according to their schedule of stops. The pier's east side would be available to other boats at any time as American would dock on the west side. But American will have rights to the west side per their cruising schedule. American has also indicated there could be times when two ships would be in town at the same time.

The cruise line is expecting 10 stops this year and up to 30 annually in a six-month cruising season. The stop will be part of the company's St. Louis to St. Paul excursions.

"They turn the schedule into us and when they are scheduled it is exclusive to them and when they are not there anyone is open to use the dock. So it's only exclusive when they are here," City Manager David Varley said.

Councilman Chris Greenwald, serving as Mayor Pro-Tem in Mayor Brad Randolph's absence asked Varley if the docking agreement would still allow for Viking Cruise lines to dock on the riverfront, if $1.7 million in improvement funding can be located.

Varley said that would still be a viable option.

The cruise lines will bring 160-200 per ship running from St. Louis to St. Paul and, with the tour, passengers will get a local tour of Fort Madison, Varley said.

The cruise line will pay the city $1 per passenger as rent for the pier and that rate will increase by 25 cents every two years. The city will invest about $15,000 in pier improvement and American is contributing an additional $15,000 for the work.

The council approved the measure 7-0.

The council also approved a Jones Contracting bid of $470,000 for the reconstruction of Avenue L between 35th and 36th Street to take some of the curve out of the road. The engineering estimate for the project was $550,000.