The City Council has declined to sign a contract with Timpanogos Special Service District for a new sewer plant because it believes residents might be unnecessarily saddled with rate increases.
"I see in this document that we're socking it to the public," Councilman James Hansen said at a recent council meeting.The district intends to build a second sewer plant west of Lehi near the Jordan River. The estimated $50 million plant would be equipped to handle about 7 million gallons a day. The six northern Utah County cities in the district recently imposed a $1,000 fee on new residential connections to help pay for the new facility. The district will also bond for capital funds.
Hansen doesn't like contract language that calls for fee surpluses in any given year to be applied toward early redemption of the bonds rather than carried over to cover building costs.
In a year in which home construction is down, he said, cities would have to raise sewer rates to make up the difference. Hansen said that doesn't make sense if the district collects excess money in a previous year.
About 600 connections a year are anticipated districtwide, officials said.
Hansen said rates could double or triple if building dips. "I don't see (any reason for) saving money to pay off bonds early," he said.
Mayor Jess Green said before American Fork approves the contract it must ensure residents are not charged according to the ups and downs of building. The city intends to make changes in the proposed document before recon-sid-er-ing it.
In addition to American Fork, district members Lehi, Pleasant Grove and Alpine must approve the contract.
American Fork officials blame Micron Technology for accelerating the need for a second sewer plant. The district had discussed building another plant or expanding the current one's 10.4 million-gallons-per-day capacity prior to the computer company's arrival. Micron projects it will discharge 2.5 million gallons of wastewater daily. The new plant is projected to handle 6 million gallons a day.
The semiconductor company has agreed to pay $2.5 million toward construction of the new plant, which could be running by 1997.
"Micron can add to the valley, but at the same point we have to protect people who are here," Han-sen said.
But Hansen doesn't appear convinced the city can do that. "All I hear in the whole thing is, `Increase in sewer rates. Increase in sewer rates,' " he said.