Rust Issues May Color Water Rate Discussion

Editor's note: The proposed increase would only impact residents of the village of Montgomery, not Boulder Hill, according to Finance Director Jeff Zoephel. The story has been updated.

Tonight, trustees will decide whether to enact a three-percent increase in water rates for the village. But before they do, they’re likely to hear from some Boulder Hill residents, ones who have been dealing with rusty water issues since November.

The proposed rate increase would bring village of Montgomery water to $4.90 per 1,000 gallons used, an increase of 15 cents. Those who live in Boulder Hill—an unincorporated area that gets its water from the village—would not seen an increase. They would continue to pay $6.03 per 1,000 gallons used.

If a household uses 10,000 gallons in a billing period, Zoephel said, their bill will rise by $1.50.

The increase is based on a five-year plan adopted in 2009, following a water rate study conducted by Engineering Enterprises Inc. That plan called for an increase of 70 cents per 1,000 gallons of water used in 2010, 50 cents per 1,000 gallons in 2011, and a three-percent hike in 2012, 2013 and 2014.

The increase would bring in about $75,000 to the village’s water fund, according to Finance Director Jeff Zoephel. That money is used for infrastructure and other expenses related to the water system.

It’s that very infrastructure that has some people upset, however. In November, one of the village’s wells—Well 14, on the west side—failed, and village staff was forced to pump water to Boulder Hill from other sources.

This change in direction shook loose rust deposits in the older cast-iron pipes beneath Boulder Hill, according to Public Works Director Mike Pubentz, and that rust has been flowing out of taps and showers ever since. The village paid an additional $7,600 to expedite repairs of Well 14 by Jan. 20, and though several residents have said their rusty water problems have since cleared up, others report no change.

And some, like Bill Dobran, have said their water cleared up for a week or two, and then reverted back to an orange color and a foul smell. Trustees are debating providing some form of compensation to residents who experienced rust problems, and Dobran attended last week’s Committee of the Whole meeting to hear .

After that meeting, Dobran said that a water rate increase “shouldn’t be talked about now.”

His fellow Boulder Hill resident, Pat Stiles, said it is "ridiculous" to talk about a rate increase after the past few months, in which he has bought bottled water, and scrubbed sinks, tubs, showers and curtains to get rust stains out.

"This is definitely ridiculous at this time. Charge us more?" he said. "This whole thing is costing me more money, and they feel they should raise the rates."

At the last board meeting earlier this month, when the ordinance had its first reading, Trustee Andy Kaczmarek on a water rate hike, but Zoephel explained that doing so would require retooling the Fiscal Year 2013 budget, since several expenses are set to be funded with the increase. Trustees are discussing the budget now, with an eye toward approving it in April.

Trustees are divided on the issue. Kaczmarek has spoken out against the increase, while Trustee Denny Lee has supported it, saying at the last board meeting, “I can’t see why a dollar and a half would hurt anybody that much.”

Trustee Stan Bond said he has struggled with the issue, but will likely vote no. He is concerned that the village is not developing a long-term plan to deal with replacing the old pipes beneath Boulder Hill (a task village officials have estimated at $50 million), and said he is reluctant to raise the cost of living for anyone, given the economic situation.

"I would prefer to table the vote until we have sufficiently discussed short and long term solutions for Boulder Hill and until we have adopted a budget," he said. "If I am forced to vote Monday night, in the absence of the above, then it's a 70% chance of a no vote."

The rate increase anchors an extensive agenda for tonight’s meeting. Other highlights:

• The board is scheduled to vote on an intergovernmental agreement with the Fox Valley Park District and a special use permit to expand Stuart Sports Complex. Details are .
• Board members will consider an extension of a contract with Pizzo and Associates to maintain the natural grass basins throughout the village. That contract extension has a not-to-exceed amount of $432,085.
• Trustees will discuss a proposal to build out the Fieldstone Place subdivision. Details on that are .
• Trustees will also decide whether to grant a special use permit to Aurora Tree Service, a business looking to relocate to Lake Street.
• The board will consider a resolution supporting a new economic plan developed by the Kendall County Board.

The meeting begins at 7 p.m. at , 200 N. River St. It is free and open to the public.