Tough Choices

 

Why do we suddenly have a streets problem?

---

It’s not sudden. Our streets have been getting worse for a long time.  Previous City Councils knew about it, but they didn’t have a stable source of funding for maintenance.  So we just kept putting it off.

 

So what’s changed?

---

Last year the city formed a Streets Task Force, made up of local business people and neighborhood representatives, studied the issue and made some recommendations.

 

What are the recommendations?

---

The first recommendation was to update our 2002 streets condition assessment. We know our streets need work, but we don’t know how much the repairs will cost.  In response to the Task Force's recommendation, we've hired an engineering firm to update the assessment and evaluate exactly what needs done.  (As of March 23, 2015, the final report was pending.)

Second, the Task Force recommends coming up with revenue to pay for improvements.

 

How much money are we talking about?

---

That will depend on what the updated assessment says.  It also depends on how much of a burden our citizens are willing to tackle. That’s another reason the City Council wants to hear the opinions of city residents.

 

What about the Oregon gas taxes we already pay?  Why can’t the city use that money?

---

The gas tax has not kept pace with inflation.  Additionally, people are buying less fuel.  So the gas tax revenue has fallen behind the costs of materials, energy and labor needed to maintain streets.

 

Why now?  Why not just wait a few more years to address this problem?

---

We could do that. But streets in poor condition can pose safety hazards, slow emergency responses, and discourage economic development.  Also, waiting means it will cost more when we finally do make the repairs.

 

 

 

Why do we need a sewage plant upgrade?

---

Like cities throughout Oregon and nationwide, Coos Bay is dealing with antiquated, deteriorating infrastructure.  Our two aging wastewater treatment plants have major components that need replacing.  We need plants that can handle increased wastewater flow and meet new environmental regulatory requirements.  Our 26 pump stations are aging as well.

 

How old are the two plants?

---

One was built in 1954, the other in 1964. Both were upgraded in the early 1970s and again in the early 1990s.

 

Our population hasn’t grown significantly. Why is there more wastewater?

---

It’s primarily because our sewer pipes are old and leaky. They’re subject to “infill and infiltration” (I&I), a term for groundwater and stormwater seeping into sewer pipes. This condition is worse in the winter, when groundwater may rise and storms produce significant runoff.  The runoff and groundwater enter our leaky pipes and contribute to the increased flows that our wastewater plants receive and treat. The majority of our sewer pipes are about 60 years old, and some were installed more than a century ago.  It is not uncommon for our pipes, pump stations, and treatment plants to be overwhelmed during intense or back-to-back storms.

 

What happens when the flow exceeds plant capacity?

---

When this happens, the plant is not able to treat the wastewater to the required environmental standards. This can hurt water quality in the bay.  In extreme cases, untreated wastewater may discharge to the bay.

 

Why not replace the leaky pipes?

---

The city is working on that. We have more than 90 miles of public sanitary sewer and 26 pump stations within the city.

As funding has allowed, we’ve been replacing the worst pipes, and we’re gradually working our way down the priority list. However, this is an ongoing endeavor. The gases and solids in raw sewage gradually erode pipe. After about 40 years, the pipe is subject to holes, failures, cracks, pipe joint failure, and lateral connection failures. These problems let more stormwater and groundwater enter into the pipe and overwhelm the sewer system, pump stations and plants.

But even with the efforts to replace leaky pipe, we still need more treatment capacity.

 

What’s the plan?

---

The main project is to replace Plant No. 2 in Empire. After that, we’ll upgrade Plant No. 1 in Coos Bay. As funding allows we’ll also update one pump station a year, and we’ll upgrade the bio-solids treatment systems. And, of course, we’ll continue replacing worn-out sewer pipe.

Now, dozens of communities throughout Oregon have replaced their treatment plants, or are working on it. Nearby examples are Winchester Bay, Newport, Gold Beach, and Yachats.

 

How do Coos Bay’s rates compare with other places?

---

There’s a lot of variation from place to place. Sewer rates depend on a lot of factors, including geography, climate, past investment and interest rates. (See Chart) Coos Bay residents are fortunate to pay lower rates than much of the country for both drinking water and wastewater treatment.

 

Why are our rates so much higher than North Bend’s?

---

Coos Bay operates two wastewater treatment plants, as opposed to just one in North Bend.  Our two plants are older, and we need to rebuild one plant and refurbish the other. In addition, Coos Bay’s topography requires significantly more pump stations than North Bend’s system.

 

How much will the project cost?

---

The city has created a 20-year master plan to upgrade portions, but not all, of our system at an estimated cost of $80 million. We have saved and borrowed some money already, but the unfunded portion is still nearly $69 million.

 

Why is it so costly?

---

Cleansing wastewater for safe return to the environment (in our case, the bay) isn’t easy.  As environmental regulations have become more stringent, the cost of meeting those standards has soared. Additionally, wastewater treatment has become increasingly complex. Advanced systems are costly to design, build and operate, usually increasing the overall cost of wastewater treatment.

 

Where will the money come from?

---

We’ll have to borrow it. We have a couple of options for how to do that.

One option is general obligation bonds. Bonds are basically IOUs with interest, and we would raise property taxes to pay them off.  That’s probably not going to be popular.   One problem is, this option doesn’t spread the burden among everyone using the system. Churches, nonprofit organizations, schools, hospitals and government agencies don’t pay property taxes.

Another option is revenue bonds, which we would pay off with higher sewer rates. That approach spreads the burden among everyone who uses the sewers.

A third option would be some combination of the first two.

 

How high would we have to raise the sewer rates?

---

Unfortunately, it’s substantial – about 7% every year for the next several years.

 

Why wasn’t this planned for years ago? Were you guys asleep at the switch?

---

No, the city hasn’t been napping.  Previous City Councils saw this problem coming for many years. But the South Coast has lived through decades of hard times.  Money is always tight, and city leaders have been reluctant to burden struggling taxpayers with additional costs.

In the past few years, the city has begun raising sewer rates to sock away money for future construction. We’ve saved up more than $3 million.  It’s not nearly enough, but it cushions the shock.

 

What happens if we do nothing?

---

That’s not an option.  The existing system is a pollution problem, and it’s getting worse. We have a responsibility to take care of our bay.  This waterway is a precious resource for fishing, shellfish harvesting, and recreation.

Besides, even if we were willing to pollute our bay, we have a state mandate to perform these upgrades.  In Coquille, the state put a moratorium on new wastewater hookups until they upgraded their treatment plant.  Theoretically, the state could upgrade the plants and send us the bill.

 

Don’t we have any choice?

---

Yes and no. We definitely have to upgrade our wastewater treatment.  But we want everyone to have a say in how we pay for it. We hope you will voice your questions and opinions. We care about what you have to say and encourage you to talk to your mayor and City Council.