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Tabling discussion about sewer options in an open session meeting July 11, the Sunrise Beach board of trustees then went into closed session and voted to fund a second preliminary engineering report with a different engineering firm in hopes of getting "better numbers," according to board chair Curt Mooney.
A sewer discussion was tabled in open meeting to seek more information on whether residential and commercial rates could be averaged to make residential rates lower and still satisfy U.S. Department of Agriculture rules regarding rate minimums. USDA was the main loan and grant source for the village's second phase of installing a drinking water system and would be a likely source for sewer funding.
Without waiting for that information, the board approved later that night in closed session an $18,000 contract with Olson Engineering to complete a new preliminary engineering report for a proposed sewer system in what is being termed the "City Hall Ridge" area of town.
The study can be paid for out of the capital improvements account, funded by a half-cent sales tax, he said, unless some of the businesses want to step in and help offset the cost.
With a preliminary engineering study already done for the village by another firm, Mooney called the action "getting a second opinion."
The report will be in addition to a study already done by Midwest Engineering of Sunrise Beach. Village engineer Matt Marschke has already done a preliminary engineering report for the entire Route 5 corridor and, more recently, worked with a committee of business people and village officials on how that large-scale project could be scaled back and done in phases.
Since last month's trustees meeting, the committee, chaired by Matt Sutcliffe of Bear Bottom Resort and also including developers and business owners Ron Cragun and Bruce and Jan Adams, has studied the sewer dilemma in the village. Under West Shore Landing, Cragun and the Adams are trying to develop a large commercial project on Route 5 at Lake Road 5-41.
The committee also included former trustee Charlie Bott and Bill McCaffree, a well-known water and sewer attorney connected to projects throughout the state. McCaffree is the village's phase 2 water attorney but has not yet been hired for the sewer portion and was not part of the closed meeting.
The committee recommended the village pursue funding to sewer the "Mid Town" area as its first phase, not City Hall Ridge, in order to get the most out of potential federal and state low interest loan and grant programs.
Tabling discussion about sewer options in an open session meeting July 11, the Sunrise Beach board of trustees then went into closed session and voted to fund a second preliminary engineering report with a different engineering firm in hopes of getting "better numbers," according to board chair Curt Mooney.
A sewer discussion was tabled in open meeting to seek more information on whether residential and commercial rates could be averaged to make residential rates lower and still satisfy U.S. Department of Agriculture rules regarding rate minimums. USDA was the main loan and grant source for the village's second phase of installing a drinking water system and would be a likely source for sewer funding.
Without waiting for that information, the board approved later that night in closed session an $18,000 contract with Olson Engineering to complete a new preliminary engineering report for a proposed sewer system in what is being termed the "City Hall Ridge" area of town.
The study can be paid for out of the capital improvements account, funded by a half-cent sales tax, he said, unless some of the businesses want to step in and help offset the cost.
With a preliminary engineering study already done for the village by another firm, Mooney called the action "getting a second opinion."
The report will be in addition to a study already done by Midwest Engineering of Sunrise Beach. Village engineer Matt Marschke has already done a preliminary engineering report for the entire Route 5 corridor and, more recently, worked with a committee of business people and village officials on how that large-scale project could be scaled back and done in phases.
Since last month's trustees meeting, the committee, chaired by Matt Sutcliffe of Bear Bottom Resort and also including developers and business owners Ron Cragun and Bruce and Jan Adams, has studied the sewer dilemma in the village. Under West Shore Landing, Cragun and the Adams are trying to develop a large commercial project on Route 5 at Lake Road 5-41.
The committee also included former trustee Charlie Bott and Bill McCaffree, a well-known water and sewer attorney connected to projects throughout the state. McCaffree is the village's phase 2 water attorney but has not yet been hired for the sewer portion and was not part of the closed meeting.
The committee recommended the village pursue funding to sewer the "Mid Town" area as its first phase, not City Hall Ridge, in order to get the most out of potential federal and state low interest loan and grant programs.
During discussion, McCaffree recommended the board apply for further grants for the Mid Town proposal to state and federal programs. Based on his experience and the numbers, he indicated it had a good chance of being successfully funded in a way that would be affordable for the village. He also indicated that the window of opportunity for the right "combination" (government low interest loans with very low interest rates of around 3 percent and grant money) to get this work accomplished were narrowing.
As it is, the Mid Town phase is already eligible for more USDA financing than City Hall Ridge due to the number of residential users.
Nevertheless, the board is starting by looking at City Hall Ridge, a less expensive total system cost than Mid Town.
The system cost reported in the engineering study by Midwest were "not suitable," Mooney said.
"We've got to make this affordable. This is just another option. We want to see what another engineer can come up with," he said.
This is a merely a starting point, Mooney added, it does not mean that it will be the option they pursue.
"We'll hopefully get better numbers," he said.
During the open session discussion, trustee Ted Hoover said the board was "up against a wall" trying to solve the sewer issue in town.
Many businesses need municipal sewer with some facing enforcement actions by DNR, yet residents are not feeling that crunch, he said.
A business of concern at last month's meeting was Captain Ron's Bar & Grill, but it is now pursuing other avenues than municipal sewer to fix its immediate need for wastewater treatment.
"We realize the potential problem (losing businesses to cost of enforcement action), but if we can't collect, we can't pay," Hoover said.
To get USDA financing, it is required to charge a minimum of 2 percent of the median household income. The concern is that residential users won't pay $38-$41 per month for sewer.
Sutcliffe indicated businesses might be amenable to paying a slightly higher rate to lower that residential rate. McCaffree said he would check to see if the village could use the average rate rather than an individual rate.
In addition to low interest loans and grants, the village has the half cent capital improvement sales tax. The village's revenue bonds are utilized as a way to back the low interest loans through user fees.
Contact WestSide Star Editor Amy Wilson at amy.wilson@westsidestar.net.
