Freeburg trustees decline Liberty Utilities’ water proposal

BY Linda Adkins
Posted 10/14/21

Freeburg trustees refused to entertain the idea of Liberty Utilities’ proposal to purchase the village water and wastewater systems. Mayor Darryl Haller’s request for “yea or …

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Freeburg trustees decline Liberty Utilities’ water proposal

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Freeburg trustees refused to entertain the idea of Liberty Utilities’ proposal to purchase the village water and wastewater systems. Mayor Darryl Haller’s request for “yea or nay” brought forth a chorus of “no” at Freeburg’s regular meeting on Oct. 4. 

However, trustees agreed that water and sewer rates need to increase. 

Mayor Haller reported he had received a call from Charlie Evans, one of the representatives from Liberty Utilities who presented a proposal for Liberty’s purchase of Freeburg’s water and wastewater utilities at last month’s meeting.

There was little conversation last month about the presentation. 

“So where are we at?” asked Haller, “I’m not saying we have to do anything, but (Evans) could give us some numbers.”

“My big thing is when they come in if they plan to apply for all these grants, we don’t currently qualify for grants because our rates are too low,” said Trustee Shane Zimmer. “So how high will they put the price on people’s water and sewer when they come in and start building this infrastructure?” 

Haller responded that this is a two-way street. “We are way low, and that’s why our stuff isn’t getting fixed,” he said.

Liberty would come in with five- and 10-year plans, Haller explained. “Here’s what it’s worth, here’s what we’ll offer you, here is what we will and will not do in five and 10 years,” he added. “I don’t want to do this and have the rates increase. They would hang me in town.” 

Zimmer said Liberty mentioned phasing out the lagoon. Haller acknowledged that will probably have to happen at some point and “somebody is going to have to pay for it.”

Public Works Director Todd Feeler says by owning the system, DNR is more lenient with restrictions, allowing them to “kick the can down the road” a little longer with the lagoon. Replacing the lagoon with a mechanical plant will cost a couple of million dollars, according to Feeler. 

“I know we have been raising our rates gradually, but why don’t we take a little bigger bump?” Trustee Dale Struemph asked.

“That’s the way I look at it also,” responded Haller.

Zimmer does not like the idea of selling a Freeburg asset, saying there is no reason the rates cannot be gradually raised and still make it affordable for the people in town while retaining ownership and control of the system. “It’s a more palatable avenue than us selling a Freeburg asset,” he added.

Haller asked that they “entertain the notion” of looking at the five-and 10-year plans at least during the initial phase, possibly gaining some insight into system deficiencies. “We need to somehow push to get more money in our water and sewer systems to do the big projects,” he said.

“I don’t think we will get better service with them,” said Struemph. “I am totally opposed to it.”

“What I’m getting at is when we do need to take on (the water/sewer lines from) church to Hilke’s, that will be a $3 or $4 million deal,” Haller replied. “It will involve a bond issue and take 20 years to pay back. I don’t know how much we want to work on it.” 

Struemph pointed out that Liberty would have to make those same upgrades plus make a profit. “We’re not trying to make a profit, just provide a service,” he said. 

Haller noted that if the village is going to keep the system, it needs to be taken care of. Some parts of the system have been in place since the 1960s. 

“We gotta keep costs down for our people and I understand this, but we need to keep the infrastructure built up”, said Haller. “We need to somehow push to get more money in our water and sewer systems to do the big projects.”

“Yea or nay on Liberty?” Haller asked, “if we’re not interested fine, he just needs an answer.”

Zimmer, and fellow trustees Glen Haller and Scott Knoll  quickly responded with “no.”

“I do think we need to raise the rates,” Glen Haller said.

“I would not be opposed to that as long as it is a gradual increase,” said Zimmer. 

Struemph suggested 20% over five years.

Haller recommended the village formulate a five-year plan, letting citizens know what trustees want to do. 

“Maybe they will vote in a sales tax increase,” he said. “We gotta be able to put something on paper to show what we’re going to do with the money to get the support we need.”

Haller also suggested a 15% increase over time, which “would take us to the medium.” He said that 30 years ago, Freeburg didn’t have to do that, but they are getting to a point where things need to be replaced. 

“At the end of the day, everybody in this town when they flush their stool, they want to see it go down the drain,” Haller said.

In other news, trustees decided that the water runoff situation at North Pine and Lewis Streets needed to be resolved with decisive action that night. Options were discussed with trustees acknowledging they are not professionals and need advice. 

Feeler said the surveyor is coming this week to determine their property line there. He will contact Jeff Stricklan, their usual concrete man, for advice on remedial action. Once the specifications are established, the job can be put out for bid. Haller wants to get this done as soon as possible, recognizing that cold weather will be a factor.

Zimmer suggested once they have the specifications, they could solicit bids before the next meeting. Struemph agreed, saying they could communicate by email.

* Roger Reinkemeyer appeared before the board asking for help with his water bill. Last month, a water leak on vacant rental property he owns resulted in the use of 365,800 gallons of water and a bill of $1,100. 

A precedent was mentioned in which a landowner had half his bill forgiven when an unattended cattle waterer the owner believed to be turned off ran endlessly. Trustees agreed to forgive half the bill.

* Mayor Haller updated trustees on what he learned with the meeting with the Meramec Regional Planning Commission (MRPC) about American Rescue Plan Act (ARPA) funds. Freeburg committed to MRPC handling the money and ensuring paperwork is done correctly. Haller suggested the whole board meet with MRPC before making any solid plans for the money.

Village Clerk Allen Gradel noted that $42,677.65 in ARPA funds has already been deposited to the village’s account with the other half of the money coming next year. Haller said the village has two years to decide and two more to get it done.

* Freeburg’s new Street/Water/Sewer Commissioner, Doug Hamacher of St. Thomas, attended his first meeting. He is replacing Feeler, whose resignation is effective Nov. 9. 

* Feeler will get a price quote on boring under the road and putting in a meter at the Zimmer Farm on Rt. P. Feeler does not expect the original quote of $2,500-$3,000 to be much different.

* Gradel invited trustees to attend the annual MRPC meeting and dinner on Oct. 21. 

* In financial news, Gradel presented figures showing general fund income for September totaling $21,086.57. The village had $34,980.30 in a general revenue checking account and $468,574.40 in a general revenue money market. Sewer system checking had a balance of $39,278.25 and the sewer money market amount was at $210,759.08. Freeburg’s purchasing account balance was $1127.57. The total on hand for all accounts besides water was $754,719.60. The water department had $616,285.82 on hand for a grand total of $1,371.005.42. 

*  General revenue bills were approved for $5825.15, and sewer bills totaled $324.64. 

* Water Clerk Cindy Struemph reported no water expenses and no one due for shut off at this point.

* Struemph reported a 1% water loss between Aug. 3 and Sept. 1, with 4,294,546 gallons produced and 4,267,100 gallons billed for a loss of 27,446 gallons.

* The next meeting will be on Nov. 8 at 7 p.m.