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PLA outlines wastewater-plant phase and a proposed customer surcharge
Summary
Diana Snellan told the council the wastewater-treatment plant Phase 1 is estimated at $3.5 million; the PLA plans a surcharge to spread costs (notice expected in February, surcharge billing to start in April), with staff estimates of customer impacts ranging from $11.25 to $20 per billing depending on assumptions.
Diana Snellan, presented to the council as representing PLA, reviewed outcomes from a recent town hall and the rationale for a phased wastewater-treatment-plant upgrade.
"The phase 1 will cost 3,500,000. But when you add 6% interest to that over 20 years, you're $11.25 per month," Snellan said, describing one financing scenario. Earlier in the same explanation she noted a comparative estimate of "$20 a billing, which is $10 a month," explaining differences depend on financing and what portion is recovered through surcharges versus rate cases.
Snellan said the PLA plans to send a notice in the February billing (which she described as the effective date) and start the actual surcharge in the April billing. She explained the district is following a model commonly used in water rate proceedings—roughly a 30/70 split where 30% is addressed in rate cases and 70% in a surcharge—and said the PLA is proceeding with a phase 1 design to regain lost treatment capacity. She noted that nitrogen-related rules are still evolving and that a phase 2 may be required later.
Council members asked for additional detail on reserves, timelines and the design process; Snellan said engineers are refining numbers and the PLA is trying to limit costs while preparing a required general plan and designs before construction can begin.
