30 Jan 2005
PLEASE COME TO A PUBLIC HEARING ON SEWER RATE HIKES
The Holyoke Department of Public Works (“DPW”) has approved raising sewer rates from $1.95 to $3.55 per thousand gallons (an initial 82% rate increase). However, the rate hike needs the approval of the City Council. The DPW plans to increase sewer rates to $5.50 per thousand gallons (a 181% total increase). These rate hikes will pay for two things: (1) approximately $20 million for federally-mandated improvements to control Combined Sewer Overflows (“CSO”) in order to reduce pollution of the river during heavy storms; (2) a 20-year, $176 million privatization contract with Aquarion to operate and make improvements to the sewer plant. Many questions remain unanswered about whether this massive rate hike is needed, and whether privatization is the lowest cost alternative.
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Learn more and speak out at the rate hike hearing: Monday, February 7, 2000 at 6:30
Holyoke High School
Many residents of Holyoke are on fixed incomes, and cannot afford this series of rate hikes. Why isn’t the City demanding that the federal government pay 55% of the costs for compliance with this federal environmental mandate? Federal law authorizes a 55% match for financially distressed communities like Holyoke. Chicopee is seeking federal CSO design funds, but Holyoke has not launched a serious campaign to obtain meaningful amounts of federal funding from Congress.
The City is on the verge of signing a $176 million, 20 year contract with Aquarion (a British company) for CSO improvements and operations of the sewer plant. Aquarion is the only company to bid on privatization. Once this contract is signed, the city is married to 20-years of rate hikes. Holyoke did not develop a competitive alternative to privatization to see if the City can save money. Four city councillors have asked the DPW for an engineering and cost study to see if the city could to do it cheaper than Aquarion, and pass the savings to ratepayers.
Is the rate hike fair to residents of Ward 3? The DPW rate hike covers (1) CSO improvements and (2) sewerage treatment plant operations. There is no question that those who are connected to the sewer should pay for the sewer plant. But the CSO improvements are different. This $20 million CSO project will be treating surface water run-off from city streets, so that it doesn’t mix with sewerage during heavy storms causing excessive overflow in the river. Just like snow plowing, treating storm-water run-off is a cost of having passable city streets. CSO costs should be paid by all residents. But many residents in Ward 5 and 7 (in West Holyoke) with septic systems will avoid paying for the bill for CSO improvements. Should residents of Ward 3 (and Wards 1, 2, 4 and 6) pay the entire costs of the CSO improvements? Or should the CSO costs be shared equally by everyone in Holyoke, just like snow plowing or street paving? We don’t expect folks in West Holyoke to pay for our sewerage treatment. But isn’t it fair for everyone to pay a slice of the CSO costs since the streets are used by everyone?
What portion of the rate hike is attributable to CSO improvements vs. sewer plant operations? How much would ratepayers in Ward 3 save if the costs of the CSO improvements were shared citywide? How much could we save if the federal government covered 55% of the CSO improvements? Ask the DPW.
The bottom line:
The Mayor is pushing for the City Council to transfer funds to sign a 20-year privatization contract. The City Council needs to slow down and figure out if there are cheaper options. Once the privatization contract is signed, the city is married to rate hikes for 20 years. The Mayor and City Council need to work for a 55% federal match, before asking ratepayers for more money. The Mayor and City Council need to be sure that all Holyoke residents pay their fair share of the CSO improvements, and not make ratepayers in Ward 3 have to foot the bill for others who are getting a free ride.
Information: Helen Norris, Ward 3 City Councilor, 536-3858.
See also:
http://water.homestead.com
