RUSS ready to end dealings with Mt. Union, seeks bids to remove sewer lines

BY BROOKS TAYLOR

Mt. Pleasant News

?The end is near.? That is what Bruce Hudson, executive director of the Regional Utility Service Systems (RUSS) told his board of directors regarding the wastewater treatment plant in Mt. Union during the board?s regular meeting Wednesday.

After hearing that RUSS continues to fall behind on its financial systems regarding the system, the board passed a motion requesting that Hudson gain bids from two independent contractors to remove the sewer system lines from Mt. Union residences.

?If we ever reach the point where we can?t pay the invoices, it is end game,? Hudson said. ?We never dreamt it would get to this point?At some point you have to pull the plug.?

In December, the RUSS board voted to double Mt. Union user fees from $75.85 per month to $150 per month, beginning with the January billing, in hopes of being able to meet its financial obligations as owner of the system.

Thus far, the results have not been encouraging. Payment is not due from Mt. Union residents until Jan. 15, but thus far, 15 users have paid the $150 fee, one has paid $75.85 and four have paid $69 (the fee RUSS charged before raising fees to $75.85 in July 2015).

There are 62 users in Mt. Union. Hudson said 14 of those users are considered non-payers and have not paid one cent since the system was installed, Hudson related. Those users owe between $3,000 and $3,500 in delinquent payments.

That leaves 28 users who were in good standing up to this month who have not paid the January bill. Simple math relates that at least 24 residents would have to pay the $150 monthly fee for RUSS to collect as much monthly as it did when fees were at $75.85.

Hudson said, collectively, Mt. Union?s debt to RUSS is $44,612.

The dilemma surrounding the RUSS-Mt. Union problem is that no one knows the proper course of action, if any, to take. RUSS has consulted with Iowa Department of Natural Resources and United States Department of Agriculture (USDA) officials and they, too, are stumped.

?We are continuing to go backward,? Hudson told the board. ?We don?t have enough (customers) paying to offset those who are not paying. Those who are now paying do not offset what we were collecting before. I told the USDA in December that if we raised rates, this would happen and they said we have to take that chance.

?We will not go in the red on Mt. Union,? Hudson continued. ?For us to go in the red is in violation of the bond. We don?t even have the money to pay for the operation and maintenance of the system (utilities, water testing, etc.).?

RUSS Director Lee Dimmitt said he sees no light at the end of the tunnel. ?This is about as black and white as it can be. The question that keeps coming back is what can we do to resolve this? I hold out no hope that the Mt. Union City Council would have a change of heart and pay the bill.?

Hudson said there are no winners in this case. ?The one who gets hurt in this is us. Even if everybody gets everything they want, everybody still loses.?

RUSS fears that if it defaults on its USDA loan for the Mt. Union sewage system it could have a serious impact on its bonding rate and RUSS projects in the future.

Dimmitt suggested having county workers remove the lines, saying he felt this is a much safer way to do it.

Other board members didn?t share the same opinion, though, and said they felt independent contractors were a better option.

RUSS board members will meet again on Wednesday, Feb. 10, at 1 p.m., in the Henry County Emergency Management Building, in Mt. Pleasant.