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Pope County Tribune - Starbuck Times
Written by Tim Douglass - Pope County Tribune Publisher   
Friday, 06 August 2010 10:59

Glenwood, Long Beach to choose arbiter to help determine sewer charges


The cities of Glenwood and Long Beach last week agreed to seek an independent arbiter to help resolve a disagreement over Glenwood's calculated charges for treating Long Beach sewage.

Both cities have been working to resolve the sewer treatment issue since a 20-year joint-powers contract expired in 2008.

Long Beach Councilmember Terry Duhn addressed the Glenwood City Commission last Tuesday to suggest that Glenwood was charging Long Beach about twice the amount that it should charge for sewer treatment. He provided Glenwood commissioners with flow numbers from 2007-2009. Carrying the numbers through 2010, Duhn's figures estimated that Long Beach was responsible for about 5 percent of the sewage flow to the Glenwood treatment plant, but was about 11 percent of the total expenses if he used the city's calculation of $4.61 per 1000 gallons treated from Long Beach. In his figures, Duhn explained that about 209,032,000 gallons would be treated and about 9,803,000 of those gallons came from Long Beach (or about 5 percent of the flow).

Using the city's charge for the flow at $4.61 per 1,000 gallons times the Long Beach portion (9303), he came up with a cost to Long Beach of $45,191. The total expenses estimated by the City of Glenwood for sewer treatment costs were at $418,000.

"We both know what is going over the hill. We know 5 percent is coming into Glenwood (from Long Beach), but at the $4.61, we're paying 11 percent of the total cost," Duhn said.

City Administrator Dave Iverson said there are other factors, like capital outlay and infiltration, and reiterated that the two cities need to get a contract in place. "Right now there is no contract," Iverson said.

Iverson said that the city has explained the calculations done, using one with inflow and infiltration and one without and "we provided you with options," he said. "We know you don't trust the numbers, but we did the calculations openly using figures from Minnesota Rural Waters...as you suggested," Iverson said.

Iverson said he thinks the discussion is at the point that we have an independent consultant come in because of the lack of trust, and we just don't care to have a finger pointed at us because we've always tried to be fair and do it right."

The main disagreement between the two entities is over what the city terms "billable flow."

After some discussion about Equivalent Dwelling Units (EDUs) and how best to figure the calculations for charges, Mayor John R. Stone asked Duhn, and Long Beach Mayor Duane Majors if they would be agreeable to bringing in a neutral consultant to look at the entire situation.

"Because our situation is unique we get someone independent that we both agree on that doesn't work for either city, but works for both of us... and get some dollar figures so that we can deal with this issue," Stone said.

Duhn said he believed that "the Minnesota Rural Waters guy came in with his mind set." He then said he had no problem with it if "we find someone totally neutral."

Stone suggested that the independent arbiter, with expertise in effluent flows, rate analysis and treatment, would help the two cities agree on a rate as well as how to come to a long-term contract.

Both cities will be directing their engineers to propose a couple of possible individuals for that job, and once a few candidates are identified, officials from both cities will get together and choose the arbiter.

City Attorney Bruce Obenland said that he liked the idea of an arbiter and "if both cities agree to abide by the (arbiter's) decision, it's a good one,"

Both cities will have suggested arbiters by the next meeting in August. And it was suggested that the full Glenwood city commission be at that meeting as well as the full Long Beach Council.

"I don't want to get into a he said, she said situation again, so I think we all need to be present at the meeting," Iverson suggested.

Duhn agreed and Long Beach officials did state that they, of course, are willing to share in the cost of the sewage treatment.