Aberdeen advises against buying Cosmopolis sewer system, offers repayment plan and billing options

On Sept. 4, Aberdeen officials told the Cosmopolis City Council they do not recommend Aberdeen purchase Cosmopolis’s sewer system and outlined a path to resolve arrears, including a repayment plan of up to five years and two rate options: a renegotiated contract that incorporates capital shares or Aberdeen’s existing commercial (wholesale) billing rate.

Ruth Clemens, identified in the meeting as Aberdeen’s city administrator, gave the presentation and said Cosmopolis accounted for "a little under 6%" of Aberdeen’s wastewater treatment in 2024. Clemens summarized the current contract and said the 10‑year contract (cited in the meeting as covering roughly 2013–2023) has expired and that the formula in the existing agreement resulted in rates that Aberdeen staff consider "artificially low." Clemens said Aberdeen would be open to a repayment plan so Cosmopolis could "start out fresh." (Clemens: S2)

Rick Sanger, introduced by Clemens as Aberdeen’s public works director during the presentation and speaking as the technical lead, said infiltration and inflow (INI) — stormwater and groundwater entering the sanitary system — is the primary driver of higher treatment costs. "Flows go up by about four times when it rains," he said, and added that dilute influent can be harder to treat: "It's much harder to treat when it's dilute." (S5)

Aberdeen staff walked the council through the 2024 annual statement shown at the meeting: Category A wastewater treatment about $219,000 and capital expenditures about $406,000, producing a combined total close to $640,000 for 2024 after staff removed debt service from the Cosmopolis bill. Aberdeen also offered a wholesale (commercial) calculation: based on Aberdeen rates and current INI, the wholesale estimate for 2024 was given as roughly $1,015,942 (rounded in discussion to about $1,015,000); staff said that without the INI component the wholesale figure would be approximately $325,000. (S2; S5)

On purchasing the system, Aberdeen staff listed practical constraints: the city would inherit Cosmopolis’s INI problems, would likely need an estimated initial capital investment (Aberdeen staff cited roughly $5 million) to bring pump stations and infrastructure to Aberdeen standards, and would lack a ready enforcement mechanism to collect nonpayment if Aberdeen did not also control water service. For that reason, Aberdeen’s recommendation to its council was not to buy Cosmopolis’s sewer system at this time. (S2; S5)

As a near-term option to address past-due charges, Aberdeen proposed bringing Cosmopolis current on arrears and offering repayment terms up to five years with modest interest. For future billing, Aberdeen presented two approaches: 1) negotiate a new agreement with a clearer capital‑share and timing structure (shorter than the multi‑year contracts previously used), or 2) move Cosmopolis onto Aberdeen’s existing commercial/wholesale billing ordinance so Cosmopolis would be billed by volume. Aberdeen staff said the commercial rate is already codified in Aberdeen ordinance and would be billed by gallons. (S2; S5)

Council members pressed why renewal talks were not begun earlier; Aberdeen staff said they had attempted outreach and that responsibility for initiating formal renegotiation fell on Cosmopolis as the contract-holder. Several council members said they preferred shorter term agreements going forward so the issue is not left to future administrations. (S3; S5)

A member of the public, identified by the mayor as "Mister David," asked about Cosmopolis’s sewer fund balance; the council reported approximately $300,000 in that fund and acknowledged the city will likely need to increase sewer rates. Aberdeen and Cosmopolis officials agreed their finance teams would work together to model repayment terms and future-year billing (including a 2025 projection). (S8; S1)

Next steps recorded in the meeting: Aberdeen and Cosmopolis staff will convene a monthly technical meeting (a "tech team") to share televised inspections and flow‑meter data, Aberdeen’s finance director will work with Cosmopolis staff on repayment scenarios, and the negotiation/contract team will draft options for the council to consider. The workshop concluded with thanks to Aberdeen staff and an adjournment. (S1; S2)

What remained unresolved in the workshop: whether Cosmopolis will accept a commercial billing rate or a renegotiated contract, the precise repayment schedule and interest terms, and the ultimate allocation of future capital‑expenditure costs. Aberdeen staff also noted that identifying and removing INI is a long-term program that can take years and that INI remediation materially reduces future bills if successful. (S5)

Note on transcript inconsistency: the mayor introduced Aberdeen’s public-works representative earlier in the meeting with a different rendering of the name. The presentation text identifies the public-works speaker as Rick Sanger; the meeting transcript also contains an alternate rendering ("Rich D'Erbs"). The council presentation and the technical comments in the record are attributed in this article to the public-works director as presented during the session. If Cosmopolis or Aberdeen publishes an official roster or minutes, that source should be consulted for a definitive spelling. (audit/clarification)

The council did not take a formal vote during the workshop; outcomes were limited to staff recommendations, a commitment to finance-team follow-up, and technical monitoring. The council will consider the options after finance and negotiation teams return with draft repayment terms and a contract or billing proposals.