Janice McGinnis Archives - Oak Ridge Today

Oak Ridge closes on $20 million loan for new water plant

Posted at 2:25 pm October 21, 2019
By John Huotari Leave a Comment

An aerial view of the Oak Ridge Water Treatment Plant on Pine Ridge above the Y-12 National Security Complex. (Photo courtesy Y-12 National Security Complex)

The City of Oak Ridge closed on a $20.7 million federal loan on Thursday for a new water treatment plant in south Oak Ridge.

It’s a Water Infrastructure Finance and Innovation Act, or WIFIA, loan. The funds provided by the federal loan program will be used to design and build the new water plant, which will replace an aging facility on Pine Ridge that has served the community since the 1940s.

The total cost for replacement of the water treatment plant is estimated to be $42.2 million, the city said in a press release on Friday. WIFIA will provide about 49 percent of that cost, with the city using the Tennessee State Revolving Fund Loan Program to cover the balance, the press release said.

“After three years of application and planning, the City of Oak Ridge has reached a significant milestone in the funding needed for a new replacement water plant,” Oak Ridge City Manager Mark Watson said in the press release. “WIFIA has helped Oak Ridge with a low-interest federal loan, allowing us to avoid potential failures in a system originally designed for a different Oak Ridge. The financial terms will allow Oak Ridge to afford these much-needed improvements to serve not only our residents, but the national security and U.S. Department of Energy facilities located here.”

[Read more…]

Council approves initial bond resolution for Preschool, Senior Center

Posted at 1:27 pm September 11, 2018
By John Huotari Leave a Comment

A rendering of the new Oak Ridge Preschool at Scarboro Park. (Image courtesy City of Oak Ridge/Studio Four Design)

The Oak Ridge City Council on Monday unanimously approved an initial bond resolution of up to $16.5 million to build a new Oak Ridge Preschool and Oak Ridge Senior Center, and redevelop Scarboro Park.

It’s not the final bond resolution for the projects. The initial bond resolution approved in a 7-0 vote on Monday sets a ceiling amount for the debt issuance. A second resolution, a bond issuance resolution, will be brought to City Council, possibly at the October 8 meeting, for the actual bond issuance amount.

The City of Oak Ridge has opened the bidding period for the two projects, which have a total estimated cost of roughly $16 million. That announcement was made Friday.

But the city doesn’t know yet what the actual bids will be. And it’s not clear how steel tariffs might affect the projects, Oak Ridge City Manager Mark Watson said. [Read more…]

Council to consider $14.3 million debt resolution Tuesday

Posted at 10:00 pm September 18, 2017
By John Huotari Leave a Comment

The Oak Ridge City Council is pictured above in December 2016. (Photo courtesy City of Oak Ridge)

The Oak Ridge City Council will consider a $14.3 million initial debt resolution in a special meeting on Tuesday.

The debt could include about $5.87 million for projects known as ESCO Projects that appear to be related to energy-efficiency projects in the city and its school system; $4.1 million for software, including for financial management and utility billing; $3.4 million for a replacement and upgrade of the radio system used primarily by the city’s police and fire departments; and $1 million mostly for design and engineering costs for the Oak Ridge Preschool and Senior Center.

If it’s adopted, the initial debt resolution, which calls for issuing up to $14.3 million in general obligation bonds, will be published in the newspaper. That will start a 20-day period in which at least 10 percent of registered voters in Oak Ridge can petition for a referendum on issuing the debt.

The bond resolution for issuing the debt would come before City Council for possible adoption at a regular meeting on Monday, October 9. [Read more…]

City Council to consider $120,000 for golf course

Posted at 1:21 pm January 5, 2017
By John Huotari 15 Comments

The Tennessee Centennial Golf Course is pictured above in east Oak Ridge on Thursday, Dec. 10, 2015. (Photo by John Huotari/Oak Ridge Today)

The Oak Ridge City Council on Monday will consider approving $120,000 to continue operating the Tennessee Centennial Golf Course in east Oak Ridge off Edgemoor Road.

The request comes about one year after Council approved, in a 6-1 vote, a $325,000 transfer for operations at the golf course. About $225,000 of that transfer, a cash infusion, was for outstanding accounts payable, including for expenses that included clothing in the pro shop, a management fee, fertilizer, and irrigation costs. Another $100,000 was operational funding for the winter, including maintenance of the greens.

The request is smaller this year, but the golf course is still short of money needed to operate, despite all marketing efforts, Oak Ridge City Manager Mark Watson said in a Wednesday memo to City Council members.

“The slow winter season now requires funding to pay necessary costs and salaries through the winter quarter (January-March 2017),” Watson said.

Most of the $120,000 in funding—or $70,024 of it—would be used for accounts payable. The rest would be used for cash flow and salaries, Watson said. [Read more…]

City Council, DOE manager to discuss relations, hiring, housing; water rates also on agenda

Posted at 1:30 pm September 19, 2016
By John Huotari Leave a Comment

Kenneth R. Tarcza (Photo courtesy DOE Oak Ridge Office)

Some members of the Oak Ridge City Council and some residents have had a few concerns related to the U.S. Department of Energy and its contractors, including whether the DOE sites are doing enough to encourage new employees to live in Oak Ridge and whether DOE is paying enough on its payments in lieu of taxes to the City of Oak Ridge.

A more recent concern is whether DOE is paying enough for water supplied by the city to Oak Ridge National Laboratory and Y-12 National Security Complex, which are both federal sites.

On Tuesday, the Oak Ridge City Council could discuss these issues as it meets in a non-voting work session with Kenneth R. Tarcza, manager of DOE’s Oak Ridge Operations. The work session, which is open to the public, starts at 6 p.m. Tuesday in the Central Services Complex on Woodbury Lane (behind the Kmart shopping center).

Among the DOE-related items on the agenda are a discussion and review of city-DOE relations, local hiring for DOE projects, housing, and “other related issues.” [Read more…]

Council wants to roughly triple proposed water rate at ORNL, Y-12

Posted at 5:39 pm September 13, 2016
By John Huotari 3 Comments

The Oak Ridge Water Treatment Plant is pictured on Pine Ridge above the Y-12 National Security Complex. (Photo by City of Oak Ridge)

Note: This story was updated at 6:50 p.m.

Some Oak Ridge City Council members have questioned whether the federal government is paying enough for municipal water at Oak Ridge National Laboratory and Y-12 National Security Complex, and on Monday, four of them proposed roughly tripling a potential new high-volume water rate at the two federal sites in 2017.

The new water rate would apply to water consumption over 20 million gallons per month, which would limit it to ORNL and Y-12. The two sites use a total of more than 100 million gallons of water per month.

The new rate is expected to go into effect in April 2017 only if Oak Ridge and the U.S. Department of Energy aren’t able to agree on a contract for water at ORNL and Y-12 by the end of March. Those two federal sites now pay a flat annual rate but could default to what is known as a retail rate if the contract lapses.

The city staff had proposed a new default rate of $1.08 per thousand gallons for consumption over 20 million gallons starting January 1, 2017. The following year, in 2018, the staff had proposed a $1.35 rate.

But four City Council members—Rick Chinn, Charlie Hensley, Trina Baughn, and Chuck Hope—voted to raise the $1.08 rate in 2017 to $3 per 1,000 gallons. Oak Ridge Mayor Warren Gooch, Mayor Pro Tem Ellen Smith, and Council member Kelly Callison voted against the increase. [Read more…]

Council to consider water rate, sewer rate, trash fee increases

Posted at 10:21 am September 12, 2016
By John Huotari 1 Comment

The Oak Ridge City Council is pictured above in 2014. (Photo courtesy City of Oak Ridge)

Note: This story was updated at 10:38 a.m.

The Oak Ridge City Council will consider increases in the water and sewer rates that would go into effect in January 2017 and January 2018 during a regular meeting tonight (Monday, September 12). Council will also consider a trash fee increase that members endorsed during budget deliberations in June.

A 6 percent increase has been proposed for both water and sewer rates starting January 1, 2017. The next year, effective January 1, 2018, a 4 percent increase has been proposed for water rates and a 6 percent increase has been proposed for sewer rates.

A home that uses the minimum amount would pay an extra $2.26 per month for water and sewer starting in 2017 and an additional $2.17 per month in 2018.

A home that uses 5,000 gallons per month would pay $5.33 more per month for both water and sewer in 2017 and another $4.87 in 2018.
[Read more…]

City approves water contract extension for Y-12, ORNL, but DOE rates questioned

Posted at 8:03 pm March 29, 2016
By John Huotari 5 Comments

The Oak Ridge Water Treatment Plant is pictured on Pine Ridge above the Y-12 National Security Complex. (Photo by City of Oak Ridge)

Note: This story was last updated at 9 a.m. March 30.

The Oak Ridge City Council on Tuesday approved a one-year, $2.1 million contract extension for water supplied to Oak Ridge National Laboratory and Y-12 National Security Complex, but a few members questioned whether the U.S. Department of Energy is paying a fair rate.

The one-year extension is expected to give the city time to have a qualified third-party engineering firm study the city’s aging water plant on Pine Ridge above Y-12, consider what is needed, and develop options that could help Oak Ridge decide whether to renovate the 70-year-old facility—or build a new one at a new site.

City officials said bringing the existing plant up to code could cost $16 million or more. It was transferred to the city from DOE in 2000, more than 15 years ago. Officials declined to estimate how much it could cost to build a new one, although it’s also said to be in the multi-million-dollar range.

Among the challenges at the water plant now are a leak of 3,000 gallons per day. The city staff is not sure where the leak originates or whether the water that is leaking has already been treated, and so far they haven’t been able to stop the leak. [Read more…]

City, Schools Preschool Building Planning Committee to meet April 9

Posted at 9:44 pm April 1, 2015
By John Huotari Leave a Comment

Oak Ridge Preschool and School Administration Building

The Oak Ridge City Council has agreed to use $150,000 in unspent red-light camera to repair the lead-based paint on the Oak Ridge Schools Preschool and Robert J. Smallridge School Administration Building on New York Avenue. Officials say the building needs to be renovated or vacated for the Head Start program to receive funding in the 2015-2016 school year. (File photo)

The new joint city-school committee that could lay the groundwork for a new preschool by the 2016-2017 school year will meet on Thursday, April 9.

The meeting of the Joint City/Schools Preschool Building Planning Committee will start at 1:30 p.m. April 9 in the School Administration Building conference room.

Members of the committee are Charlsey Cofer, Keys Fillauer, Bruce Borchers, Lee Ann Shelton, Jessica Hill, Allen Thacker, Mark Watson, Janice McGinnis, Ellen Smith, Shirley Raines, Pat Fallon, and Jon Hetrick.

The joint city-schools committee for the Preschool was endorsed earlier this year. For now, officials have agreed to use $150,000 in red-light camera money to repair the lead-based paint on the city’s Preschool, providing what officials hope will be a temporary fix while they develop a plan to permanently repair, replace, or move the Preschool. The city-school committee could work to determine space needs, develop an affordable finance plan, develop a project timetable, and make a public education plan.

Council considers ORPD review proposal, ORHS stoplight, amendment for Main Street project

Posted at 10:37 am March 9, 2015
By John Huotari 1 Comment

The Oak Ridge City Council on Monday, Feb. 9, agreed to a third-party review of turnover and morale in the Oak Ridge Police Department but rejected requests for two other probes. On Monday, March 9, the Council will consider a proposal from the Municipal Technical Advisory Service to conduct the review, which will also include administrative policies. (File photo)

Note: This story was updated at 1:10 p.m.

The Oak Ridge City Council on Monday night will consider a proposal to use the Municipal Technical Advisory Service to review turnover, morale, and administrative policies in the Oak Ridge Police Department.

The Council will also consider a contract to install a stoplight on Oak Ridge Turnpike in front of the Oak Ridge High School.

Also on tonight’s agenda is a resolution to appoint members of a joint city-school committee that will study options for repairing, replacing, or moving the Oak Ridge Preschool.

And Council members will consider a zoning ordinance amendment that could help the Main Street Oak Ridge project, which will redevelop the former Oak Ridge Mall. [Read more…]

Guest column: The Oak Ridge High School debt chronicles

Posted at 11:23 pm February 26, 2014
By Trina Baughn 9 Comments

Trina Baughn

The Oak Ridge High School Debt Chronicles—How a $40 Million Project Will Cost Taxpayers Over $126 Million (So Far)

It appears that the nearly three-year long debate between the Oak Ridge City Council and the Board of Education (BOE) over who owes what on the high school renovation project—the single largest financial expenditure that this city has ever made—is about to be resolved once and for all (or so some hope). To many, this will provide a welcomed relief. For all, it will once again extend and increase a debt obligation far beyond what anyone ever imagined.

Just over one week after the initial public revealing, council will vote on a resolution to end the debate on the high school mortgage issue. The root problem that this resolution will address is not ambiguity in the 2004 referendum or in any “gentlemen’s agreements.” No, the reason that this resolution is necessary, according to the fifth “Whereas,” is “changing community economics and increasing educational needs.” The need for this resolution, which will violate the original understanding and intent of the 2004 referendum, boils down to an implied need by the Oak Ridge schools for more money.

If passed, this resolution will allow the BOE to retain the portion of the half-cent sales tax revenues collected outside of the City of Oak Ridge and will accomplish the following: [Read more…]

School officials say millions in state funding at risk, could close schools Oct. 1

Posted at 8:04 am September 11, 2013
By John Huotari 4 Comments

Oak Ridge Schools Superintendent Bruce Borchers, left, and City Manager Mark Watson have had a series of meetings concerning the school system’s failure to pass a state maintenance of effort test, and a possible resolution of a $250,000 shortfall to avoid a potential loss in state funding of up to $1.87 million per month.

Schools want city to cover $250,000 shortfall, could require 2.5-cent tax increase

It’s a high-stakes battle between the city and the schools, with a potential loss of up to $1.87 million per month in state funding—and a possible shutdown of the school system on Oct. 1.

School officials said the Oak Ridge system has failed a state maintenance of effort test that requires local funding to remain at least the same from year to year. After some budget adjustments, there is a $250,000 shortfall, school officials said, and they want the city to cover it. It’s the equivalent of a 2.5-cent property tax rate increase.

“Unfortunately, we’re just in the position to ask the city to help us,” Oak Ridge Superintendent Bruce Borchers said Thursday. “They’re going to have to find that $250,000.” [Read more…]