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Council moves to roll back recent sewer-rate hike while seeking EPA-approved phased alternative

3137481 · April 14, 2025
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Summary

Facing public concern over recent wastewater rate increases, council voted to prepare emergency legislation to revert rates to their Jan. 1, 2024 levels while staff pursues an EPA-approved alternative plan that could stretch work and costs over multiple years.

After extended discussion, the Vermilion City Council voted to direct staff to prepare emergency legislation to restore sewer rates to the levels effective Jan. 1, 2024, pending further technical work and negotiations with the U.S. Environmental Protection Agency (EPA).

Councilmembers described household stress from a large rate increase earlier in the year and expressed a desire to provide short-term relief. A council member opened the motion saying the EPA has signaled willingness to consider alternative, phased approaches to the expensive plant overhaul initially estimated at about $76 million, and that reverting rates now would give the city breathing room while it seeks a phased plan.

Administration and engineering staff briefed council on recent developments: the EPA emailed a letter authorizing the city to propose an alternative compliance plan, including a phased construction approach, provided the city continues to aggressively address infiltration and inflow, advance smaller plant upgrades and submit a full alternative plan by Dec. 31, 2025. The administration said the city’s wastewater fund balance and prior rate increases have been used to accumulate cash for potential projects.

On the motion to have legislation prepared reverting rates to the Jan. 1, 2024 schedule (and to open negotiations for the 2026 rate cycle later this year), the roll call recorded Councilmember Brian Holmes, Councilmember Terry Howe, Councilmember Worley, Councilmember Craig Drew, Councilmember Wes (last name) and Councilmember Harris voting yes; the motion carried. Council asked administrators to confirm legal implications related to loans and timing and to return detailed options in the utilities committee and via scheduled committee meetings.

Council also discussed longer-term options, including joining a regional solution (a proposed tie-in to a Lorain County regional plant, previously referred to as the "6119" option) and phasing capital improvements to reduce peak upfront costs. Staff emphasized that phase approval and precise cost estimates will determine the magnitude and timing of any future rate adjustments.