Neenah/Menasha Sewerage Commission Building Project...Steam Plant 2?

With such an important issue at hand, a one hour workshop before a scheduled council meeting seems to bind the hands of discussion to a determined timetable when a subject such as the Neenah/Menasha Sewerage Commission Building Project is at the table.  Full disclosure and discussion are trumped by a stopwatch and many questions have been left to float in an abyss until a later date.  Mayor Merkes was able to quantify some of the issues that disturb many of the council members and I do not want to cart off with his very valid points and comments, the following are a few brief uncertainties and matters of concern, out of many, that I feel need to be included in the discussion.

A) Sonoco uses a service that is provided by the Neenah/Menasha Sewerage Commission and as with any other utility service any customer would expect the billing to include a set amount for expected repairs, upgrades and replacements.  It would be of concern if any customer that pays for a service to be approached by the provider requesting a sizable “donation” to the retrofitting of their facility because there was an absence of a pro-active mechanism to deal with a known and pending life expectancy of the equipment and machines used to provide the service.

B) As with all technology, when a device or production capabilities from the mid 1980’s is replaced or compared with modern technology from 2011 there should be an expected (and drastic) increase in productivity and a decrease in expenditures to operate the equipment resulting in a savings.  With a 2 ½ decade difference in equipment there is a reasonable assumption that the equipment to be installed will require less manpower to operate than the replaced antiquated equipment.  Areas yet to be discussed include how the new equipment will provide a positive efficiency in man hours to the overall operation of the system.  There needs to be concern, if after the upgrade, the same numbers of employees are required to work relatively the same amount of hours as the old system.  This revamping of the treatment plant should bring about great efficiency, requiring less man hours to operate allowing for a greater cost savings. 

C) Was there, or is there, a government regulation that prevented the NMSC from implementing a pro-active means of dealing with known factors such as complete equipment life expectancy?  If the NMSC was prevented from taking a pro-active posture by government regulations then a late response to an impending situation is a bit more understandable.  However, if no such obstacle stood in the way of developing a well thought out plan for such a large known depletion of mechanical life, then a scrutinizing eye must be focused on the reason for the lack of insight or planning.  On average, if the equivalent buying power of the U.S. dollar every year was used, and an equivalent of $4 today was added for every month on each NMSC utility bill starting in the mid 1980’s ($1.90 in 1987 = $4 in 2011) and placed in a separate trust account drawing 1% to 2% interest, the need for any loan for this project would not exist.  If this was an overlooked viable option in the past, is there a pro-active program being constructed for the subsequent 25 year equipment end-of-life replacement in 2037?

The committee’s soothing words about the project and its components has not quelled my overall apprehension with the course this issue has been taking.  I thank Mayor Merkes for the trepidation he displayed during the workshop and I fully share in the unease.  Our own steam plant is not the only regrettable mishap that has occurred in the Fox Valley when it comes to municipalities revamping a complete structure or service, a recent water treatment plant in a neighboring community went afoul costing those taxpayers more than they bargained for.  The Neenah/Menasha Sewerage Commission is basically asking the City of Menasha, and all other involved parties, to take out loans for their use, which the taxpayers will be ultimately liable for if the utility cannot make the loan payments.  There are no guarantees that the commission will keep wages and the number of employed personnel reasonable…there is no guarantee that operating expenditures will be kept at a minimum.  The only guarantees that seem to exist include change orders that will add extra expense to the final cost of the project, and when something goes amiss the taxpayers of the participating communities will be paying the bill. 

All municipalities were assured in the not too distant past that every component of the project was scoured over and all needed replacements were addressed.  Thirteen months later the municipalities are informed that new components are now targeted for upgrades even though one year earlier they were not singled out as needing replacement.  Tonight the City of Menasha was again assured that all troubled components have been identified and no others are in need of upgrades…I will stress the word AGAIN. 

It boils down to two options:

1)      Menasha uses the Clean Water Fund to obtain its share of the project cost at a 3% interest rate and allowing your utility bill to rise to an appropriate amount to cover the loan payments…but signs the Menasha taxpayer on the dotted line for ultimate responsibility for a direct loan.

2)      Menasha allows the Sewerage Commission to pursue its own financing for the project on the bond market at a 4.5%+ interest rate and allowing the utility bill rise even higher to cover the loan payments…but excludes the Menasha taxpayer from ultimate responsibility on a direct loan.

If ever there was a subject to contact your Alderman to voice your opinion it would be the Menasha Sewerage Commission Building Project.