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THE CITY REBORN FROM THE ASHES OF AMERICA'S MOST DISASTROUS FOREST FIRE
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Peshtigo Council Adopts Increased Sewer Rates

Issue Date: December 22, 2020

Effective Friday, Jan. 1, customers of the City of Peshtigo Water and Sewer Utility will be paying more for wastewater disposal. The price increases will show up on the first quarter Water and Sewer bills.

After a public hearing at its meeting on Thursday, Dec. 17, Peshtigo City Council unanimously approved changes to the sewer user rates spelled out out in the city's Code of Ordinances as recommended by the Water and Sewer Committee to deal with the high disposal costs for PFAS-contaminated sludge.

For general customers, Class A and B, the charges include a set fee based on meter size, plus $9.86 per 1000 gallons of metered water used

. Estimates are that the new rates will increase bills for regular residential sewer users by approximately $37.77 per quarter, from an average quarterly bill of $76.58 to $114.29.

Impact on commercial and industrial sewer users and Class D wastewater haulers will be much higher. Jim Koronkiewicz, General manager of BPM Inc., the utility's biggest customer, had told the Council at previous sessions that had these rates been in effect in 2019 the mill's cost for wastewater would have been $424,858 higher than they actually were. Bills for Class C industrial users like BPM Inc. are based on a fixed charge plus volume of flow and specified contents.

Other action at the meeting included approval of a debt service levy of $236,000 for 2021, accepting the resignation of Sandra Eklund from the RLF/UDAG Committee and approving Tom Gryzwa to replace her; approving payouts and carryovers of vacation time for several city employees, and approval of a $500,000 loan to Bessettte Properties LLC at 2 percent interest for 15 years as recommended by the city's RLF/UDAG Committee for Arimon Technologies, which is seeking to relocate its wiring harness manufacturing and assembly business to a site in Peshtigo.

With Mayor Cathi Malke now back on the job after a long illness with Covid-19 and Alderman Mike Behnke back after a surgery that kept him from attending the last Council meeting in person, all members of City Council were present. Among other officials present were City Attorney David Spangenberg, several department heads, and Water and Sewer Committee members Tom Gryzwa, Dan Seymour and Fred Meintz.

The evening started at 6:30 p.m. with a public hearing on the sewer rate increases, and Koronkiewicz was first of the speakers to address the Council.

"I think it is widely known that BPM Inc. is adamantly against these increases," Koronkiewicz declared. He said there is a lot of information still needed, and cautioned, "I think this is a stop-gap ... Be prepared, there is more coming!"

He said BPM is in the process of constructing its own on-site wastewater treatment facility, and plans to have it operating by October of 2021. He said when that happens the city will lose the revenue that BPM provides for the Sewer Utility and the price paid by the remaining users will have to go up again. "Be prepared...It's going to happen folks!" he repeated.

Next to speak was Lisa Middleton, owner of Brookview Village Mobile Home Park, who was concerned about the impact the price hike will have on her residents. "I'm against this!" she declared. "It will hurt our residents." She said most are on limited incomes, and the price increase will cost them a minimum of $100 more a year. "I don't know how to explain it to them," she declared. In a separate conversation, she said the increase will be $40 per quarter for a family of four - $160 a year. For one larger family that is already struggling to make ends meet, the price will increase by $72 a quarter, or $288 a year.

"I think this is a little drastic," was the comment from Bob Ellison.

Sole speaker in favor of the increase was Gryzwa, who explained the reasons behind the price hike request, which is based on the high cost of disposing of sludge with high content of PFAS. A PFAS problem in the Peshtigo/Marinette area is believed to have come mainly from manufacturing and testing a fire fighting foam produced at the JCI/Tyco factory in Marinette.

Gryzwa explained in spring of 2019, because of the JCI/Tyco PFAS issue, and because JCI/Tyco had been renting a building from BPM Inc. on Pine Street and levels of PFAS from that building were high, the DNR had asked the Peshtigo utility to have its sludge tested.

When the tests showed the PFAS content of the Peshtigo Wastewater Treatment Plant sludge came in high the DNR told them that land spreading was banned until more studies were done.

"Prior to that, we had been land applying our sludge to farm fields at a cost of approximately $70,000 annually," Gryzwa said. He said since that order, for the past two plus years, they had been storing the sludge at the WWTP. They now have nearly 3 million gallons stored with nowhere to go. Al storage areas are nearly full.

They have been seeking ways to dispose of the sludge, and found only two companies that accept it, one in Oregon and one in Canada. Cost of disposing of 1 million gallons, roughly the amount produced each year, is $875,000.

Gryzwa said they have been asking the DNR to set standards for land spreading, but so far nothing has been done. They have been looking for alternatives and other ways to get the high cost down, and intend to keep looking, but in the meantime, "We need to start now." He repeated they are running out of storage space, and asked what would happen then.

"It's not easy being on that committee," Malke declared, and thanked Gryzwa, Seymour and Meintz for all their hard work.

Alderman Archer Leupp asked if there is any hope of a resolution from the DNR.

"They promised," Gryzwa replied, "But they are working from home and nothing much is being done." He said local politicians also had been asked to help, but they too have gotten nothing done. He wondered if it might be different if the problem was faced by a more metropolitan area, like Milwaukee or Madison.

He told everyone, "Contact the DNR, contact your representatives...Tell them they need to do something about this!"

Leupp asked Gryzwa if anyone knew about any other constructive things the city could do about this. He was told they had looked at compressing the sludge, drying it to cut hauling and disposal costs, but repeated, "We allowed the DNR to test our waters and now we're stopped from land spreading!"

Katie Berman, speaking from the audience, wondered: "Since we know the contamination came from Tyco, can we just send them a bill?"

"I like that idea," Leupp replied, "but do we know enough to take them to court?"

Gryzwa said they know some of the PFAS came from Tyco, but ther are many other sources. "It also comes from everywhere.. your homes...your cookware..."

Public works Director George Cowell said another city is pursuing compression of sludge to solidify it, and Peshtigo has approached them to find out if this s something they could do with them in future. Peshtigo also has segregated the bio-solids in separate tanks, but even after the Tyco facility closed the PFAS content in Peshtigo wastewater is higher than the DNR currently allows for land spreading.

"We're still waiting for rules," Cowell said. "If we can apply it to fields at safe levels, that may be the answer." However, he cautioned, when the DNR does come out with rules, "That might be good news, and it might not."

Alderman John Berendt asked if the $800,000 that would be generated by the rate increase would take care of the whole disposal problem, and Gryzwa said it would cover just one million gallons - one year of sludge. "We are still looking to do something with the other two million gallons," he said, and then asked, "If we don't have the money to pay for hauling it, what do we do? Do we go bankrupt?"

Middleton asked if there was a chance the sewer rates could go down if the disposal costs go down, and Gryzwa replied that could and would happen, if the DNR allowed them to again field spread it.

Berman asked if someone could open a PFAS disposal plant in Peshtigo, or at least somewhere in Wisconsin.

Gryzwa said that was a possibility, but getting it going would probably be slow, since the DNR and EPA would both be involved. "I don't know if they would even allow it in Wisconsin," he added.

With no more public comments Malke declared the public hearing closed, and called a five-minute recess before calling the Council meeting to order

When Malke's long bout with Covid began, Behnke, as Council president, had taken on the responsibilities of mayor. At the start of the regular meeting Malke noted Behnke had not been present at the last meeting, her first in many months, so she had not been able to thank him publicly for all he had done, and told him in a formal statement, "Tonight, Alderman Behnke, I want to thank you personally for stepping for me during my health concerns. It is not easy stepping in for someone, different filing system, business at present and for the future. Mike, I want you to know I appreciated everything you did during my absence. Thank you on behalf of myself and the City of Peshtigo."

Malke announced that Sandra Eklund was resigning effective Jan. 1, after approximately 25 years of excellent service on the RLF/UDAG Committee, which governs economic development funding efforts for the city. Behnke commented Eklund's work had been "more than helpful," and Malke agreed, adding, "She helped maintain the economic stability of the city!"

Malke the said she had asked Gryzwa to fill the vacancy and he had agreed.

Alderman Richard Berth asked why she had not filled the post with someone from the City Council.

Malke told him the city already has a Council member on the Committee, which is supposed to be made up mainly of business people, bankers, and others.

Vote in favor of seating Gryzwa was unanimous.

Next on the agenda was time for public comment, and Berth wanted to speak. Malke said that time was for the public, not Council members, and he should bring up his concerns at a committee meeting and then come to the Council.

However, Berth said he needed to talk now, so Malke agreed.

Berth then said people had been asking him about all the desks in the hallways of the Municipal Building, and that Malke had told him they would be given to the YMCA. Furniture in the clerk's office has been replaced, and the old desks had been moved to the hallway, awaiting a decision on what to do with them. The building has been mostly closed to the public since the start of the Covid pandemic.

Berth said he did not understand the decision to just give the desks away and declared, "We have to go through the procedure. We can't just give it away."

"With the pandemic, we can't have people walking through here to bid, just to make a couple of bucks," Malke told him. "My first concern is the safety of our employees!"

Alderman Brigitte Schmidt, who is employed by the YMCA, said while she appreciated the thought, the YMCA will not be accepting the furniture, and she wanted to clear up that idea.

No action was taken, and apparently disposal of the furniture will be discussed at a future committee meeting.

Cowell reported the City's Christmas decorations and seasonal flags are up, a boat dock was pulled, four sewer breaks had been repaired in the past month, and the city workers had been able to get pot holes in alleys filled in but had not gotten them graded this year.

He reported a concrete slab at the wastewater treatment plant had been cleaned up and several city vehicles are being stored on it. A pile of excess blacktop material had been cleaned up and hauled to a private property.

Cowell said he had met with contractors and Immel Architects in regard to the fish viewing platform, boards were placed on a path in Badger Park, and locks were changed at the Park garages.

Schmidt thanked him and the employees for all the additional work they have been doing around the city and in the parks.

"The crew has been great," Cowell agreed.

Several employees had asked to have unused vacation time carried over to 2021. Some of them were approved, and others were approved but in altered form with cash payouts replacing a portion of the vacation days due.

Behnke explained due to his surgical recovery it had been hard to schedule a Personnel Committee meeting, and due the fast approaching end of the year decisions on vacation carry-overs had to be made soon, so the vacation requests were being brought directly to the full Council without going through the committee process.

Requests were from Police Patrolman Ryan Nemetz, Public Works Director George Cowell, Clerk/Treasurer Tammy Kasal, Police Lt. Jared Phillips and Police Chief Rick Badgley.

A request from Nemetz to carry over 48 hours of vacation was unanimously approved after very brief discussion. Explanation was that the need was due to difficulty of getting the vacation in before the end of the year due to his hiring anniversary date. The situation will not come up again for eight years, when he will gain another week of vacation very near the end of the year.

On Dec. 11 Cowell had asked to use 40 hours of carry-over vacation in the first half of 2021 to take a long-awaited road trip, and said if the carry over is not available he would need to take the time off within the next three weeks. Behnke commented it had been very hard for Cowell to take time off in the last few months, and his request was approved with little discussion and no dissent.

Kasal's request to carry over 160 hours of vacation, part of it left over from 2019, drew some strong objections from Alderman Richard Berth, and ended with a decision to pay her out for 80 hours of vacation and allow her to carry over 80 hours. Berth voted no, while Behnke, Debbie Sievert, Archer Leupp, John Berendt and Brigitte Schmidt voted in favor.

In her letter requesting the carry over, Kasal said Covid-19 issues had compounded a shortage of staff in her office. There were four elections in 2020, three of them after the pandemic started and caused a large increase in absentee ballots to be processed in her office. In addition, Kasal said she had spent a lot of time coordinating Routes to Recovery, WE CARES, Center for Life and Civic Life grants related to Covid programs. Also, installation of new computers, network server, telephone system, computers and desks in her office had caused a disruption in normal office activities.

Kasal said she had worked a lot to help get the city $60,000 in Covid grant funding.

Also, a state inspector had found problems with some of the electrical cords in her office and they had spent time rearranging things to resolve those issues.

"I don't think the work is getting done in that office," declared Berth. He noted Behnke had sent a memo in October reminding everyone to take their vacation hours.

"Everything that happened happened after I wrote that," Behnke replied.

Berth asked if Tracy Jandt was asking for more time, and Kasal said Jandt is not salaried and she cannot make her work overtime.

"I've been in that office, and I've seen all the work she's done, declared Schmidt. "I applaud her for doing the work that she has done."

Sievert then moved to pay Kasal for 80 of the hours and allow her to carry over the other 80 to be taken in 2021. That motion was seconded by Berendt and approved, with Berth casting the sole "no" vote.

Phillips asked permission to carry over up to 24 hours if necessary, but said he will still try to take the time off this year. He said he is currently trying to get a project done that is a state requirement. On motion by Behnke, seconded by Berendt, his vacation carry over of up to 24 hours was granted without dissent.

The last request on the list also drew objections from Berth. Police Chief Badgley asked to carry 179 hours into 2021 due to a shortage of staff. He said this request included time still left from last year when he also had been unable to take his full vacation.

There has been a policy that one-time carry-over requests are generally approved, but repeated requests are strongly discouraged.

To questions raised by Berendt, Badgley explained he had a hard time taking vacation due to Covid, "because when somebody calls in sick we have to cover, whether we're on vacation or not." He said with Covid, it had been hard to get any of the part time officers to come in.

Malke agreed this had been a hard year due to Covid, but also referred to past policy and the city's traditional one-time vacation carry-over limit.

"If we're going to blame it on Covid, let's give it to him"We can't do it for one and not for the other," Berth declared. He asked where the money was going to come from to pay for the pay-outs this year and the extra vacations next year.

Behnke said he did not care to go into the reasons for some of the carry-over requests.

Berendt agreed 179 hours was a lot of vacation to carry over, and suggested carrying over 36 hours and paying out a portion of the remaining 143 hours.

Badgley said he was often called in for emergencies, including some deaths, this year, and added that investigations take time and have to be done when it happens, not later.

Schmidt said she is not on the Personnel Committee, but strongly suggested that next time these issues should be discussed at a committee meeting before they come to the full Council. Behnke agreed the committee should do the discussing, and recommended that they take a new look at the entire vacation carryover policy. He said it will be on the agenda for the next personnel Committee meeting.

Badgley stressed they need to consider changes carefully. He said if an officer puts in for two weeks of vacation and then cannot take it because something happens, if it ends up getting entirely taken away from them, "they are not going to be happy!"

Berendt then moved to pay out the Chief for 142 hours and allow him to carry over 34 hours for next year.

"We need to let it be known that we can't be doing this again next year," Malke declared before there was a second. She added that the motion should say where the pay-out money will come from.

Behnke commented the Police Department is way over its overtime budget already.

Berendt then retracted his motion and moved to pay out up to 143 hours and allow carryover of 36 hours, with Chief Badgley to be strongly encouraged to take whatever he vacation he can before 2020 ends.

Berendt noted Badgley is salaried and wondered how that works with vacation payout.

Leupp advised they should be sure that pay-out is made at the 2020 rate, not the higher pay scheduled for 2021.

Before the meeting adjourned, Kasal thanked everyone for the kindness and concern, cards, thoughts and offers to help that were shown to her and her family after a fire in November destroyed their home near Coleman.

Malke again thanked Behnke for stepping in while she was ill and wished everyone a Merry Christmas and a Happy New Year.

"It was an honor for me to do what I had to do this summer," Behnke commented before he also extended Holiday greetings for all.


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