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Regional Water Resource Agency Executive Director Joe Schepers said at Monday’s board meeting that it will cost about $39.3 million to upgrade the Max N. Rhoads water reclamation facility and another $29.3 million for enhancements at the David W. Hawes plant.

Add in the roughly $35 million for debt service over 20 years, insurance and other fees, and the total project is expected to cost nearly $104 million, Schepers said.

Such upgrades are not optional — at least not if the RWRA wants to comply with an order from the Kentucky Division of Water to fix its plants by no later than 2024. Schepers explained that the RWRA received numerous notices of violations over the last three years because the treatment facilities have been operating at around 120% capacity.

“We’ve received so many violations over the last three-fours years that we have a court order requiring us to upgrade the plants,” he said.

The executive director said rate hikes will be necessary to fund the project, including a 31% rate increase that will take the average customer’s bill from $47.37 a month to $61.85 next July, followed by a 6% increase in 2024, back-to-back 4% increases in 2025 and 2026, and a 3% increase in 2027 — making the customer service fee $72.95 by July 2027.

Schepers said the RWRA is still meeting with major industry players to discuss potential rates ahead of a December Rate Review Board meeting.

“We’re not receiving any negative comments back,” he said.

Schepers told the Messenger-Inquirer that the upgrades include replacing numerous conference room-sized fans used to aerate the wastewater to a “fine bubble aeration” system, which entails releasing tiny bubbles that rise to the surface of the wastewater. He said this system will use about 10% of the energy required to fuel the 200-horsepower engines that run the current giant aeration fans.

In other business, the board announced the retirement of GIS coordinator Chad Gish after his 21 years of service. Garret Gordon also received a promotion to director of engineering — he had been the acting director.

Additionally, the board voted to approve a compensation increase for its board attorney, Charlie Kamuf, from $165 an hour to $180 an hour, and from $495 per meeting to $540.

The next board meeting will take place on Sept. 19, after which the RWRA will provide its board of directors with tours of both plants.

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