Russellville council questions water rate charged to company

RUSSELLVILLE -- Even as it is currently in the midst of other various projects and considerations, the Russellville Town Council and town residents have their eyes on water issues.

During its monthly meeting which was rescheduled due to the Thanksgiving holiday, one of the most prevalent of those concerns Monday evening was a debate over whether the town should completely adopt metered rates for everyone using the town’s water to calculate utility costs.

Effectively, the issue revolves around how much is being paid by one local company in particular. In surveying utility rates for businesses using the town’s water, the council’s attention kept coming back to the rates being paid by Cash Concrete for the town’s water.

Currently, all residences inside the town limits pay a metered rate, with a $25 base and a half-a-cent cost per gallon consumed, meaning that the usage of 200 gallons would cost $1.

On its current flat rate, Cash Concrete invests about $1,900 per year, including tax, in water utilities, meaning that it pays about $159 per month after tax. For a comparison, Co-Alliance LLP pays approximately $6,361 a year after taxes, it also being understood at the meeting that the soil management company uses less water.

Prior to January 2015, the cost for everyone paying on a flat rate stood at $49.54. The metered rate was instituted at that time, and saw everyone using Russellville water except Cash Concrete, Co-Alliance, an apartment complex and the Russellville Community Center move away from that rate.

Besides what Clerk-Treasurer Martha Mandleco and the council viewed as a monetary discrepancy, the fact that Cash Concrete operates outside the town limits also brought another sticking point. A water line that Cash Concrete installed itself is connected to a meter pit located within the limits.

Mandleco and town officials have been making a case that money is being left on the table as far as metered rates are concerned. In a statement to the Banner Graphic, Mandleco said Cash Concrete is currently paying less than 25 percent than what it would pay on a metered rate. As such, the town of Russellville would see another $7,000 in revenue a year based on current consumption rates if Cash Concrete paid by the meter.

Mandleco also expressed to the Banner Graphic Tuesday that everyone using town water should be on a metered rate to ensure payments for water utilities are proportional. She also said a rate study would need to be done to gauge water usage and actual costs to the town’s residents.

At the meeting, Mandleco said conversations between the town’s water authority and the company had already taken place, but that loose ends would need to be tied up for both to be on the same page. As such, the council tabled further discussion and action on the issue until more dialogue can be had.

In another discussion that was not as involved, the council also heard an introduction by Eric Smith, who heads the water resources firm at HWC Engineering and is being consulted for the installation of a new water tank.

Smith provided two related avenues for completing the project and securing funding. The town could apply to the Office of Community and Rural Affairs (OCRA) for a study of its water system, which would cost $35,000. Afterward, town officials would work with HWC to engineer the tank’s design, which would cost from $600,000 to $700,000 depending on the town’s needs.

The council related that Russellville’s water system was fairly new and did not require a study. As such, Smith said that a planning grant for the new tank would not be needed. OCRA stipulates that a town can have one grant approved every five years. Mandleco provided that a previous grant which encompassed “water renovations” was awarded sometime in 2012 or 2013, but said she would have to confirm the exact date before the town further pursued this new application.

Smith said that his operations at HWC Engineering have successfully handled similar projects in towns such as Attica, Williamsport and Seelyville, and that the company was eager to help Russellville.

Another constant issue that the council briefly viewed was the persisting drainage issue at First and Fordice streets. Town officials said that local contractors were ready to begin work on installing a new drain to alleviate the issue and preserve the integrity of the road.

The council also considered a move to have local elections coincide with general elections every two years. Town Attorney Stu Weliever brought a preliminary draft of an ordinance outlining how those elections would line up. The overarching reason for the consideration is so that the town can avoid the costs of holding them separately on their own. The council will review the ordinance and vote on it at a time no later than its regular meeting next month.

The council finally reviewed its application for a Community Crossings grant, which will be directed toward repairing roads within the town. While the grant itself was accepted, council members saw that some of the roads needing work were not included or incorrectly labeled. Ron Shepard, who is a project manager for HWC Engineering, said the Indiana Department of Transportation (INDOT) had been having difficulties “lining up” street names in other towns like Farmersburg, and that the list of approved road projects would need revision. The council took no action on the grant.

The next regular meeting of the Russellville Town Council and Russellville Water Board is scheduled for Dec. 17 at 7 p.m. in the Russellville Town Hall.