From The Mountain Mail (Casey Kelly):
Salida Wastewater Treatment Plant Manager Randy Sack sent a letter to nearby residents July 19 apologizing for an odor coming from the plant at the time, stating the smell was caused by “a couple” of incomplete projects that are being wrapped up at the plant. He said he had heard complaints from “a couple people” about the smell, yet he also heard from other residents that they didn’t notice any odor coming from the plant. He said it’s normal for some smell to come from a wastewater treatment plant. City Administrator Dara MacDonald said Monday the city had also received complaints abut the smell “several weeks ago,” around the time the letter was sent to nearby residents. Sack said Monday that the odors have “diminished a lot” since the letter was sent to residents in July. He said he is still waiting for parts for the inspection hatch on the plant’s digester.
MacDonald and Sack said they both hoped the project would be complete in time for the city’s scheduled grand opening for the plant from 10 a.m. to 12:30 p.m. Aug. 15. “They’re completing the projects as quickly as they can,” MacDonald said.
As previously reported in The Mountain Mail, the total cost of the Wastewater Treatment Plant upgrade project is $17.6 million. The project is being financed through a $12.1 million loan from the U.S. Department of Agriculture, a $1.35 million Department of Local Affair grant (with matching funds from the city) and a $2.6 million USDA loan the city received in 2009.
The term of the loan is 40 years with an interest rate of 2.5 percent, below the market rate, City Finance Director Jan Schmidt said Monday. At the time financing was originally approved, the interest rate was set at either 3.25 percent or the rate in effect at the time of the loan’s closing, whichever was lower. When the loan closed in February, the city secured the lower 2.5-percent interest rate.
MacDonald said in April when the city adjusted sewer rates, it was done in anticipation of the facility upgrade and the debt service that would come along with it. She said then that revenue from the city’s sewer enterprise fund is projected to cover the cost of the annual payments, along with the plant’s operation and annual maintenance costs.
The city is required to make a minimum payment of $480,405 each year, but it can make higher payments to lower the amount of total interest paid over the life of the loan. If the city makes only the minimum payments, it will pay $7.1 million in interest over the life of the loan. Schmidt suggested at a February city council meeting that the city make payments of $542,844, which assumed the previous higher interest rate, which would have the city paying off the loan 8 years earlier and saving nearly $2.5 million in interest. Council will decide each year during the annual budget process whether to pay the minimum or the higher annual payment. She said the city is scheduled to make its first annual payment of $542,844 in September.