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Ogdensburg plans to borrow up to $39 million to address problems at wastewater plant; hopes to offset costs with grants

Posted 1/24/17

By JIMMY LAWTON OGDENSBURG – Ogdensburg City Council plans to approve borrowing $39 million to address a host of issues at the wastewater treatment plant. Consultants from GHD gave the grim news to …

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Ogdensburg plans to borrow up to $39 million to address problems at wastewater plant; hopes to offset costs with grants

Posted

By JIMMY LAWTON

OGDENSBURG – Ogdensburg City Council plans to approve borrowing $39 million to address a host of issues at the wastewater treatment plant.

Consultants from GHD gave the grim news to the city, which is already struggling fiscally and recently raised property taxes by more than 13 percent.

The price tag includes a total overhaul of the plant, which has components that have long exceeded their lifespan according to Michael Tamblin who spoke on behalf of GHD.

Tamblin said most of the equipment in the facility is 40 to 50 years old and is becoming costly to maintain and dangerous for staff and the city in general.

Tamblin said the city’s digester is not producing the gas byproduct that would normally be used to produce heat and provide a cost savings.

He said the city is using chlorine gas to treat its wastewater, a method that has gone by the wayside at most sewer plants due to its volatility and high risk for creating an emergency situation that could affect city residents in a 1.2 mile radius should something go wrong.

Tamblin said three of the city’s six pump stations are in dire need of upgrades and repairs.

The city has also had nearly 20 violations of non-compliance with its State Pollutant Discharge Elimination System, which Tamblin says is likely lead to legal action from the state.

The cost for improvements was substantially higher than an earlier $15 million figure that was provided by Development Authority of the North Country engineers.

GHD suggested a variety of state and federal grants that might help offset the enormous cost, but added that deadlines for some of those options would come as early as March.

Carrie Tuttle, of DANC, told the council that they would need to approve a bond for the entire project costs if they wanted any chance at receiving federal or state funding.

The urgency brought quick consensus from the council, which is under obligation from the state to complete some of the work by December of 2019.

Deputy Mayor Michael Morley questioned whether the city had good enough credit to borrow $40 million after Moody’s downgraded the city’s credit last year.

City Manager Purdy said that while downgrade was not good for the city, investors are still likely to back the debt as municipalities have limited options for backing out of financial obligations.

The improvements to the plant are expected to have a 30-year life span. Morley estimated that sewer rates would have to increase by more than $1 million per year in order for to pay off the project. But, Purdy said the improvements would allow the city to bring in revenue that would help offset those costs.

She said the current state of the plant is causing the city to turn away customers, which could be bringing in major revenues for the city.

Council was prepared to approve the bond Monday, but because a resolution was not properly prepare the city will take that action at a special meeting Jan. 30