MIDDLETOWN CITY COUNCIL AGENDA

TUESDAY, September 1, 2015

BUSINESS MEETING – 5:30 pm – COUNCIL CHAMBERS – LOWER LEVEL

1. MOMENT OF MEDITATION/PLEDGE OF ALLEGIANCE TO THE FLAG

2. ROLL CALL

3. PRESENTATION- Feed Ohio Days Proclamation

4. CITIZEN COMMENTS, GUESTS, ORGANIZATIONS’ REPORTS Ann Munafo- Butler County Elderly Services Program

5. CITY MANAGER REPORTS

6. CONSENT AGENDA. . . Matters listed under the Consent Agenda are considered to be routine and will be enacted by one motion and one vote of consent. There will be no separate discussion of these items. If discussion is desired, that item will be removed and considered separately.

(a) Approve City Council Minutes: August 18, 2015

(b) Receive and File Board & Commission Minutes: Planning Commission- July 8, 2015

(c) Confirm Personnel Appointments: Sarah Baker-Senior Account Clerk- City Tax Division- Finance Department

(d) Receive and File Oaths of Office: Kevin Conrad, Cynthia Cobaugh-Davis, Erica Priest

7. MOTION ITEM

(a) Authorize the City Manager to enter into a contract with John R. Jurgensen Co. to proceed with the 2015 Local Street Improvement Program,

Part 2. COUNCIL COMMENTS

 LEGISLATION

1. Resolution No. R2015-31, a resolution accepting the Amounts and Rates as determined by the Budget Commission and authorizing the necessary tax levies and certifying them to the County Auditor and declaring an emergency
2. Resolution No. R2015-32, a resolution authorizing the City Manager to submit an application to the Ohio Public Works Commission for Project Year 30 requesting funding for improvements to Yankee Road, to enter into agreements for such funding, and declaring an emergency. (No action requested until September 15, 2015)
3. 3. Resolution No. R2015-33, a resolution to make adjustments to appropriations for current expenses and other expenditures of the City of Middletown, Counties of Butler and Warren, State of Ohio, for the period ending December 31, 2015. (Nuisance Abatement Fund) (1st Reading)
4. Ordinance No. O2015-46, an ordinance amending Section 263.01 (Cemetery Board – Establishment; Members) of the Codified Ordinances. (1st Reading)
5. Ordinance No. O2015-47, an ordinance amending the sewer rates levied and assessed in Section 1040.03 of the Codified Ordinances by adding a surcharge to be applied to infrastructure improvements to the City sanitary sewerage system, including the pumping, treatment and disposal works. (1st Reading)

S T A F F  R E P O R T

For the business Meeting of: September 1, 2015 August 20, 2015

TO: Douglas Adkins, City Manager

FROM: Scott Tadych, Public Works & Utilities Director

PURPOSE To adopt legislation approving a 10% user rate increase in the sewer fund to be used solely for sewer infrastructure improvements.

BACKGROUND and FINDINGS

Sewer rates are typically reviewed with City Council every couple of years taking in consideration operational, maintenance, and capital improvement needs of the sewer system. The rates were last discussed in 2013 with a rate increase of 10% effective January 1st of 2014.

Middletown’s water and sewer rates consistently rank in the lower half of communities in the annual Oakwood Water and Sewer Rate Survey for southwest Ohio. We are currently 25th out of 63 communities surveyed for lowest sewer rates.

A significant factor affecting future sewer rate increases are the need for major capital improvements to the system. Middletown, like many other older cities across the nation, has combined sewers that drain both rain water and sanitary sewage. The combined sewer flow is transported to the wastewater treatment plant during dry periods. When there are significant rain events the combined sewers are overloaded with rain water and discharge at several points along the river. The City is in active discussions with the EPA on a solution to address combined sewer overflows. Multiple alternatives are being evaluated to reduce the number of overflows. The alternatives range is cost from approximately $80 to $250 million over a 25 year period. During this same time frame major rehabilitation will be necessary for our sewer collection system and wastewater treatment plant. As you may recall there have been multiple sewer collapses over the past several years. This is just the tip of the iceberg. Nearly half of the City’s sewer system is 50 years old or older and will require extensive rehabilitation going forward. $142 million is needed to repair the sewer system over the next 25 years. An additional $68 million will be needed for improvements at the wastewater treatment plant as well. Most the major components of the plant were installed in the mid-50’s SEWER USER RATE INCREASE – INFRASTRUCTURE FEE All told the City is looking at $290 to $460 million in future improvements to the system. Funding options for these improvements are limited mostly to user fees therefore it is necessary to adjust sewer rates accordingly.

ALTERNATIVES

Do not create the infrastructure fee.

FINANCIAL IMPACT

This fee will cost a typical residential user an additional $2.11 per month for sewer. The infrastructure fee will be a separate line item on individual utility bills. The 10% infrastructure fee will generate approximately $850,000 per year. EMERGENCY/NON-EMERGENCY

Non-Emergency

ATTACHMENTS

Sewer Rate Survey