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Iola staff outline $11.2 million lagoon upgrade and possible $27 monthly sewer charge increase
Summary
City staff described a proposed sanitary sewer lagoon upgrade — two nitrox aeration reactor systems — tied to an SRF loan application; estimated project cost is $11.2 million, with a projected $27/month customer charge based on an $855,000 annual debt payment estimate; staff said no action was required at the meeting and a formal public hearing is scheduled for the 23rd.
City staff presented details of a proposed sanitary sewer lagoon upgrade and the city's application for State Revolving Fund (SRF) financing.
Staff said the project would add two nitrox aeration reactors adjacent to cell four of the city's lagoon system to reduce ammonia and biochemical-oxygen-demand (BOD) levels in wastewater effluent discharged to the river. The estimated project cost cited in the meeting packet was $11.2 million. Based on a $855,000 annual debt-payment estimate, staff provided a preliminary projection that the upgrade could raise the monthly sewer charge by about $27 per customer; staff emphasized those are projections that depend on final loan terms and any grant awards.
Staff explained the city now faces enforceable ammonia limits cascading from EPA through KDHE; earlier monitoring-only requirements have shifted to numeric limits, increasing compliance urgency. Technical questions about treatment chemistry and potential byproducts were deferred to the project consultant; staff said they did not expect highly concentrated wastes that would require off-site hauling but committed to provide a written technical summary from consultants (Trevor/Toby) on the byproduct question.
Staff said the SRF application deadline is October 15 and that a formal public hearing on the SRF application will be held at the council meeting on the 23rd; no council action was required at the present meeting. Staff also noted the city had applied for a grant (application submitted July 31) and was awaiting notice of stage-two selection.
What happens next: staff will complete required paperwork for the SRF application, share consultant responses on technical questions, and present the formal SRF public hearing at the next scheduled meeting.
