ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, November 5, 1996 TAG: 9611050065
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
SOURCE: DAN CASEY STAFF WRITER
Governments of the Roanoke Valley are preparing to pour another $7.4million into an expansion of the area's sewage treatment plant.
Underestimates four years ago and delays since then have pushed up the price of the project from $41.5million to $48.9million, an 18 percent increase, City Council and the Roanoke County Board of Supervisors were told Monday.
"What you had is an estimate in 1992, and now we have construction drawings, which means we have more accurate estimates of costs," said Kit Kiser, the city's director of utilities and operations. "Plus, we had inflation over three to four years."
Costs may go even higher because most of the bids for the project aren't in yet, he added.
The added costs will be shared by the city, county, Salem, Vinton and Botetourt County, the five governments that are partners in the project to increase the valley's sewer capacity.
The current plant, beside the Roanoke River in Southeast Roanoke, is running close to its capacity of treating 35 million gallons of sewage each day, which has limited economic expansion in the valley.
The planned upgrade, which includes two major new sewer lines, would allow for treatment of 62 million gallons per day on average.
The five jurisdictions announced an "agreement in principle" for the sewage plant expansion in 1993.
But wrangling over how costs would be apportioned and how the contract would be worded delayed signing of the document about a year. It was signed at a ceremony at Roanoke Regional Airport in the fall of 1994.
That came after an official from the Roanoke Regional Chamber of Commerce publicly complained that the delay was bound to push the price up.
"The price has got to be higher," chamber Vice President Bud Oakey said in 1994. "There's not many things going down.''
The difference is not being split equally among the localities because each owns different shares of the three major projects that make up the plant expansion.
Salem, which expected to pay $10.46million for the project, may issue bonds to cover its additional cost of $1.44million, said Frank Turk, Salem finance director.
"We haven't made a final decision yet," Turk said. Although Salem city officials expected an increase, the bill they've been hit with is greater than expected.
Roanoke County, which increased its sewer rates years ago in anticipation of the project, has banked the cash and probably will use that to fund the $2.2million in additional costs it will have to pay.
Botetourt supervisors in October approved borrowing up to $3million, enough to cover its $2.6million total share of the project.
"We have no choice here." County Administrator Jerry Burgess said.
Kiser said the nearly $3million in additional costs for the city will be paid for out of earnings from a sewer rate increase years ago. Using the money to make up the difference will delay other sewer-line projects, he added.
LENGTH: Medium: 63 lines ILLUSTRATION: GRAPHIC: Chart by staff: Sewer upgrade costs. KEYWORDS: MGRby CNB