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Council approves $18 million in borrowing for sewer system repairs

February 25, 2013 By 28 Comments
Trina Baughn

Trina Baughn

After more than an hour of discussion, the Oak Ridge City Council on Monday approved the borrowing of $18 million in low-interest state loans to help pay for a $23 million project to fix the municipal sewer system.

Council voted 6-1 to borrow the money at a 1.23 percent interest rate through the State Revolving Fund program, which is administered by the Tennessee Department of Environment and Conservation.

The work is being done to comply with a U.S. Environmental Protection Agency order that requires Oak Ridge to repair all sewer system overflows by Sept. 28, 2015.

Oak Ridge City Council member Trina Baughn voted against the borrowing. She said the city has already spent $24 million to rehabilitate the 70-year-old system, but it is still “in trouble” with the EPA.

Baughn said Oak Ridge residents can’t take on more debt, and she unsuccessfully proposed several alternatives to the borrowing, including delaying the loan resolution by one week and having other experts review the city’s remediation plan to try to identify savings.

“We’ve been spending money at a rapid pace, and we are at our maximum,” Baughn said.

But other council members said the EPA has lowered the city’s potential fines—they could total $750,000 in periods of heavy rainfall—and the repair work could cost more if the city delays it.

“The EPA has given us as much time as they can,” Oak Ridge City Council member Charlie Hensley said.

“I’d, frankly, like for us to get on with it,” Council member Anne Garcia Garland said. “It has to be done. The longer we take to do it, the more it’s going to cost.”

The loans can be used for engineering and construction costs. Oak Ridge has received two earlier loans, one in 1998 and 2002.

The sewer system project will start in east Oak Ridge and move west. Besides the loans, it will also be funded by a $2 million Tennessee Municipal Bond Fund Loan and about $3 million in future debt or an amendment of the state loans.

Council actually approved two loans Monday. One was a $4 million subsidized loan that includes a 10 percent principal forgiveness, and the other is a $14 million unsubsidized loan.

The SRF project will include about 18 sewer and manhole projects.

The sewer system rehabilitation project included one rate increase effective May 1, 2012, and a second on Jan. 1. Ninety percent of customer bills increased $5 to $25.80 per month, and large commercial bills increased about 30 percent.

Prior to the September 2010 EPA order, Oak Ridge had been spending about $1 million per year to repair its aging sewer system.

Note: This story was updated at 10:25 p.m.

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  • Cranky

    Trina Baughn is a first class idiot.

    • Jack Pointer

      Could’nt be better said… She needs to be more open minded. She definitly brought HER OWN AGENDA. This city can’t take 4 years of her… She is working really hard at building a wall between herself and the rest of council. Even her friend is starting to distance herself… Come on Trina try working together and you might get more done. Being on the defense 100% of the time doesn’t work…. Also just because the city agreed to borrow the money doesn’t mean we still can’t work on cost saving measures as we move forward. This in’t a closed book…

    • http://www.facebook.com/coinsplus.kelsey Ck Kelsey

      I started to write( *&^$#$%^)) ,to JACK PERKINS ) .But hate is their favorite thing so I didn’t write that ! Uh oh maybe I did . Please refrain from namecalling CK. There I fixed that .

    • http://www.facebook.com/coinsplus.kelsey Ck Kelsey

      Jack did you say “FIRST CLASS IDIOT” to someone’s wife recently? Not smart to bully a married woman.

    • http://www.facebook.com/coinsplus.kelsey Ck Kelsey

      I dare you to say that in front of her husband.

      The problems we face today are there because the people who work for a living are outnumbered by those who vote for a living.

      • Steve Mason

        My, my, CK, are you implying a threat of violence by Ms. Baughn’s husband? Is that your normal path of resolution for disagreements?

    • http://www.facebook.com/denny.phillips.3956 Denny Phillips

      John: Clearly this post violates comment policies 1, 2 & 4

      • http://www.facebook.com/johnhuotari John Huotari

        I generally remind people of our commenting guidelines when they appear to be first-time commenters and haven’t followed the guidelines. I have banned and/or deleted comments from more flagrant violators.

  • Hendrix

    I think “Cranky” is a perfect name for you. I think Trina is correct in exploring other options and asking why nothing was done before now. It’s unexcusable that we now pay absurd amounts for property tax AND sewer!! No wonder our town in dying… who wants to pay those rates?! What business is going to want to pay a 30% increase in their rates?!!

    • Martha Gallian

      Remember that about half of what we pay for property tax is COUNTY TAXES of which I see no RETURN. I wouldn’t complain as much if all my $1500 went to the city.

    • http://www.facebook.com/coinsplus.kelsey Ck Kelsey

      Good points Hendrix .Let’s just attack the messenger ,especially if it’s a non Obama type Conservative woman. :)

  • http://www.facebook.com/johnhuotari John Huotari

    Hendrix and Cranky, please remember to use your real name when posting here, including your last name. Thank you.

  • Mark Caldwell

    “Baughn said Oak Ridge residents can’t take on more debt, and she unsuccessfully proposed several alternatives to the borrowing…”

    ______________________________________

    Did Ms. Baughn suggest for those residents that can’t take on more debt to “not flush?”

    PS: Thank you council member Anne Garcia Garland for your positive actions, both on the City Council and at the Anderson County court house last week.

  • Steve Mason

    Sort of interesting that Ms. Baughn’s buddy, Brenda Fellner, felt the need last night to stand before City Council and lie about her water and sewer bill (i.e., a 300% increase). When challenged, did folks who were watching notice how fast she backtracked (well maybe it was only 200%, then well – it did go up). Why the need to lie about something that is so easily verified? Because people remember the lie and not the retraction, an age old political ploy. And make no mistake, there are people in Oak Ridge who use this tactic over and over to manipulate public opinion. Then there’s Ms. Baughn’s rather irrational need to cast blame for the situation. It isn’t hard to understand what has happened. Past city administrations didn’t charge enough for water and sewer services and maintain the system. Why didn’t they? It wasn’t because they were incompetent or even because they were bad people, it was because of exactly the reaction that is seen today, an objection by the public to pay the needed amounts. While the city should have been refurbishing “2x” amount of sewer line each year, it was only refurbishing “x” (or none at all). It was easier to charge less, keep the public happy, and just let some future generation worry about it. Well, the future is here and now and we have to deal with it.

    • http://www.facebook.com/johnhuotari John Huotari

      Steve, please don’t make accusations in the comment section (I’m referring to the accusation about lying). Thank you.

      • http://www.facebook.com/coinsplus.kelsey Ck Kelsey

        That’s all he’s got apparently . LOL

      • Steve Mason

        It’s not an accusation John. It’s fact. If you attended or watched the City Council meeting last night (Monday, 2/25), you would have seen Mrs. Fellner stand before the Council and claim that her recent month’s water/sewer bill had tripled over last year’s bill. It’s on the video tape of the meeting so she can’t deny making the statement. You can call it what you like, but this was a patently untrue statement. NO water/sewer bills have tripled in the City of Oak Ridge with the instituted rate hikes, not even the commercial bills. And as I said, when she was challenged on it, it suddenly became, “well it doubled”, and when challenged again, it became, “well it went up”. Now how exactly would you describe something someone says that isn’t true?

        • http://www.facebook.com/johnhuotari John Huotari

          The issue here is the EPA order and the sewer system, not Brenda Fellner’s statement to council. I repeat what I said earlier, please refrain from making accusations here.

      • Steve Mason

        Apparently my postings aren’t going to be accepted for publication. Isn’t truth important to you Mr. Huotari?

  • Trina Baughn

    Thanks to all who have engaged in this discussion both here, last night and elsewhere. Your involvement is vital to our city’s future. Cranky, I hope you got some sleep. You were looking kind of rough last night.

    For clarification, I do have an agenda. It is quite simple, really. I represent the people who want transparency and accountability in their local government. Of equal importance, they and I want to make Oak Ridge competitive again so that we can all afford to live here for decades to come.

    I’ve provided the three motions I made last night. Though none passed, I appreciate that council allowed for discussion of each.

    MOTION #1
    Move that council table this item for one week to allow time
    for council, staff and the public to explore alternative funding solutions that do not further burden our rate payers AND to develop a total cost estimate to the public.

    MOTION #2
    Move that we make a public request offering any firm who is willing
    to review our remediation plan and provide suggestions of improvement with the understanding that funding for the firm or firms efforts will come from any cost savings they identify. This action could occur simultaneously as the current plan moves forward.

    MOTION #3
    Move that this council commit to develop a plan of action to seek out those who are accountable for the many failures that led to the EPA’s decision to place an administrative order on this city.

    Though none passed, I appreciate that council allowed for discussion of each.

    • Steve Mason

      Yes, Ms. Baughn, it is quite obvious that you do have a agenda. It just isn’t what you claim it to be. And the question always remains, why must you (and your apparent cronies) mislead the public in the pursuit of your “agenda”?

      • http://www.facebook.com/coinsplus.kelsey Ck Kelsey

        So ,what’s your agenda,BIGGER government ?

    • http://www.facebook.com/johnhuotari John Huotari

      Thank you for the additional information, Trina.

  • http://www.facebook.com/coinsplus.kelsey Ck Kelsey

    Why do liberals always go on full attack against Conservative women.

    • http://www.facebook.com/coinsplus.kelsey Ck Kelsey

      ? Should have been one of these at the end .

  • http://www.facebook.com/coinsplus.kelsey Ck Kelsey

    The problems we face today are there because the people who work for a living are outnumbered by those who vote for a living.