DATE: October 14, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Mark Hilty, Water Management Director
Paul Holzen, Director of Engineering
SUBJECT:
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*Consideration of Resolution 2016-85, Authorizing the City of Franklin to Enter into an Agreement, Subject to Review and Approval by the Board of Mayor and Aldermen, With the Customers of the Goose Creek Sewage Treatment Plant (TN0060216) to Construct Sanitary Sewer Infrastructure to Connect to the City of Franklin Wastewater Collection System (11/22/16 WS)
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) in order to consider Resolution 2016-85 authorizing an agreement with the customers of the Goose Creek Sewage Treatment Facility that provides for the construction of sanitary sewer infrastructure to connect the customers to the City’s system.
Background
The Goose Creek Inn wastewater treatment facility (NPDES Permit TN0060216) is a small treatment facility that provides wastewater treatment for the Goose Creek Inn, B&G Rentals (property owner K&T Associates, LLC) and Mapco Family Centers, Inc. (currently inactive sanitary sewer service). These properties are presented in Exhibit A, included with the Board’s information. The plant has been in operation since the 1960s and has since deteriorated, no longer capable of providing adequate treatment for discharge into Five Mile Creek (mile 2.2). Looking at water use history, the three properties combined are using approximately 6,060 gallons per day or 2.21 million gallons per year.
The Tennessee Department of Environment and Conservation (TDEC) performed a Compliance Evaluation Inspection (CEI) in September 2011 and also in December 2015. On September 23, 2016 Commissioner Martineau issued a Commissioners Order and Assessment (Order) to Mr. Robert Moore Jr., owner of the Goose Creek Inn and treatment facility. In short, the Order requires an aggressive schedule to connect to the City of Franklin’s wastewater collection system and abandon the Goose Creek Inn wastewater treatment facility.
On October 12, 2016 City staff has met with the three impacted property owners and/or representatives to discuss moving forward. Since that time staff has worked with the affected property owners, the Law Department and Administration to refine options based on feedback received by the BOMA during the October 25, 2016 BOMA Work Session. These options include:
1. The City provides support to the entities in terms of plan review and connection to the system only. With this approach the entities would continue working privately with the state to resolve the situation. It is unclear what the results would be but it is anticipated that the treatment facility would be shut down.
2. During prior discussion staff proposed a special assessment district as the mechanism to connect the affected property owners to the City’s sanitary sewer system. Based on research performed through the Law Department, this mechanism will not provide adequate protection to the City as requested by the BOMA on October 25, 2016. In considering the limitations of the special assessment district, an alternative option would be an agreement outside of this structure to perform the work that would provide sanitary sewer to the three affected properties. This methodology would allow the City to have additional protections and provide for the City the ability to place a lien on the properties in the event of default. The three property owners have submitted a petition requesting the City to work through this option. As conceptually proposed by staff, the estimated cost of the project is $415,757.00 (not including interest) and would be paid off within a term no longer than 5 years. In addition, the property owners shall be required to pay all connection fees established in municipal code.
Financial Impact
The financial impact for this agreement would be a capital expenditure of the construction costs in the amount of approximately $416,000 to be reimbursed by the property owners over a period established by the BOMA that does not exceed five years and at an interest rate of 3.5%.
Recommendation
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In consideration of human health and environmental impacts staff recommends that the BOMA authorize Resolution 2016-85, reflective of option two above. Upon authorization of Resolution 2016-85 staff will draft an agreement to be presented to the BOMA for consideration at a future meeting.