INTRODUCTION

Oldham County is a predominantly residential suburban community still noted for its rural characteristics and impressive natural resources. Between 1970 and 2000, the County's population has increased from 14,687 to 47,305 people.  Sewage disposal in Oldham County is accomplished by three different methods – septic tank/lateral lines, privately owned package type treatment plants and publicly owner sewer systems.  About 40% of existing homes and nearly half of all new homes built yearly in Oldham County have on-site sewage disposal systems.

From a water resource perspective, Oldham County is situated along the Ohio River for it entire northern boundary.  There are two major watersheds in the County, Floyds Fork and Harrods Creek and each of these watersheds has documented water quality problems.  Effluents from sewage treatment plants and malfunctioning septic tanks contribute to stream pollution in the County.  There are 28 wastewater treatment plants with discharge permits in the County.  The State Division of Water (DOW) recognizes a need to eliminate small package sewage plants in Oldham County which continue to deteriorate water quality of streams.

History - With continuing requests for regional sewer service within Oldham County by developers, small cities, county government, and the State Division of Water, County Judge/Executive John Black took the first step toward creation of a public sewer district.  In December 1993 Judge Black succeeded in the development of an interlocal agreement between Oldham County Fiscal Court and the Louisville and Jefferson County Metropolitan Sewer District (MSD). The primary purpose of that agreement was to provide sewer service to GlenOaks, a residential development and golf course located in both Jefferson and Oldham Counties. Another interlocal agreement of cooperation for wastewater service was made and entered into on September 3, 1996 between Oldham County Fiscal Court, the City of Crestwood and MSD.  The Hite Creek regional treatment plant alternative is recommended to provide sewer service to Crestwood and surrounding areas in that part of Oldham County.

In addition to providing a mechanism for conveyance of wastewater to the nearby Hite Creek treatment plant, the first interlocal agreement with MSD also authorized performing a comprehensive study to define potential regional, sewer service areas in Oldham County. MSD and Oldham County agreed to jointly manage this study and in 1994 commissioned engineers to prepare the Oldham County Action Plan (OCAP).  A draft copy of OCAP was completed in March 1996.  After an extensive review by various citizen groups and public officials and modifications to fit various needs and governmental implementation requirements, a final edition of the Oldham County Action Plan (OCAP) was published in March 1998. This plan is a framework that defines wastewater service needs in Oldham County and is used as a guide for OCSD to develop a regional sewer system.

Creation and Service Area - In December 1996, Oldham County government, as empowered by KRS 67.083 ET. Seq. and KRS 220.140 formed an agency, Oldham County Sanitation (now renamed Sewer) District (OCSD), to construct, acquire, operate and maintain sewers.  Boundaries of OCSD jurisdiction, as established by Fiscal Court Ordinance No. 96-830-26, follow and are the same as those of Oldham County and include all territory therein, except that the Cities of LaGrange and Crestwood are not be included as part of or within District boundaries.  Further, those properties within described boundaries, which are currently served by or have contract for service with the Cities of LaGrange and Crestwood and their municipal sewer boards prior to enactment of this ordinance, or contract for said service within ninety days (anything outside the Crestwood and LaGrange boundaries after March 3, 1997) of the enactment of this ordinance are not subject to the OCSD except to acquire necessary easements, etc.

Mission and Goals - The mission of OCSD is to provide more comprehensive solutions for wastewater service in Oldham County.  It is intended that OCSD facilitate sanitary sewer service where needed or requested within a planned and regional context to benefit the customer, community and environment.  The major focus of OCSD is in three distinct areas of Oldham County: Goshen, Crestwood and Buckner. Development of wastewater facilities in these areas by OCSD follows controlled planning and construction phases that can be modified to fit specific needs dictated by growth during the planning period.  OCSD goals are:

• Develop a wastewater management system, construction schedule, and financing alternatives to provide public sewer service to areas of Oldham County in a cost effective and timely manner.

• Reduce stream and groundwater pollution by eliminating package sewage treatment plants with regional systems and where requested by property owners and the Oldham County Health Department providing sewers to replace on-site sewage disposal systems.

• Provide County and City officials, commercial and industrial interests, private developers and the general public with alternatives for wastewater disposal systems within a reasonable time frame to allow orderly growth and development.

Now with cooperation of numerous entities, a joint planning area is created by the MSD/OCSD Regional Wastewater Facilities Plan approved by the State Division of Water.  The Joint MSD/OCSD Wastewater Facilities Plan allows expansion and regionalization of sewer service in Oldham County without regard to political boundaries.  The OCSD Board and Oldham County Fiscal Court have approved the Joint MSD/OCSD Wastewater Facilities Plan.  Under this planning document OCSD will be able to extend sewer service to unincorporated areas of the County similar to that accomplished with the Buckner Area Wastewater Facilities Plan.  An important objective of OCSD is to treat all parts of the County equally when sewer service issues are addressed.

The creation of OCSD was an interim recommendation to the Oldham County Fiscal Court as the means to provide more comprehensive design and operational solutions for wastewater service in Oldham County.  Now, it is intended that OCSD facilitate sanitary sewer service, where needed or requested, within a planned and regional context for greater benefit to the customer, community and environment. Further recommendations for OCSD in accomplishing its mission and intent are listed below:

• Regionalize all treated wastewater discharges through a package treatment plant acquisition and elimination program.

• Develop countywide authority for sanitary sewer service.

• Establish strategies, policies and procedures relative to wastewater facility planning, design, construction and operation.

• Continue to modify and develop inter-local agreements of cooperation with MSD, municipalities and others for regional wastewater facility planning, design, construction, operation and maintenance.

• Develop a permanent, annual budget to cover administrative, operation, maintenance and program costs with charges equally distributed to users.

Accomplishments - Just a few years ago there were about fifty-eight sewage treatment plants in Oldham County.  Eliminating package sewage treatment plants through a regional planning program was achieved with construction of the Crestwood wastewater collections system.  Through efforts of OCSD and the City of Crestwood, nearly half of the plants in Oldham County have been eliminated. A regional wastewater facilities plan for the Buckner area of Oldham County was completed in December 1997.  County Judge John Black, OCSD Board President Richard Chadwell and our State legislators, Ernie Harris and Tim Feeley obtained a $3,000,000 grant from the State Department of Local Government to fund construction of a central sewer system in the Buckner area.  Using this plan as a guide and the much needed grant funds; OCSD constructed a system of sewers, pump stations and regional wastewater treatment plant in Buckner.  Five small package treatment plants that operated for decades were taken out of service and eliminated.   Plans are underway to phase out two other wastewater treatment plants in the Buckner area.  Planning has also begun on projects to provide sewer service to homes and businesses in the Buckner area.  Sewers were also installed to serve Dynegy in the Oldham County Business Park.  Since 1996 OCSD has accomplished the following. 

1. Eliminated five small treatment plants serving Oldham County Schools and Clayton & Lambert manufacturing plant in the Buckner area.
2. Acquired ten privately owned sewage collection and treatment systems in various parts of the County.
3. Increased customers served from zero in 1996 to 3,974 residential and 55 commercial customers in 2003.
4. Constructed a regional wastewater system in the Buckner area including a new treatment plant, interceptor sewers along KY 393 (north and south), in the Oldham County Business Park and along Mattingly Road.

OCSD is firmly committed to a program of regional wastewater facility construction, unified sewer rates, equal service requirements and economical system expansion.

ORGANIZATION

Oldham County Fiscal Court granted approval for the County Judge/Executive to establish a special district, OCSD.  OCSD was created and formed to have all powers and duties to reasonably, necessarily and effectively implement provisions of and carry out duties prescribed by KRS Chapter 220.  . Proposed work of the OCSD is necessary and conducive to public health, comfort, convenience and welfare.  OCSD is established for providing for collection and disposal of sewage and other liquid wastes produced within the service area.  OCSD is to construct laterals, trunk sewers, intercepting sewers, siphons, pump stations and treatment works.  OCSD is also responsible to maintain, operate and repairs the wastewater facilities.

Structure - OCSD is structured consistent with provisions of KRS Chapter 220.  As required by KRS 220.140, there are three members on the OCSD Board of Directors which are appointed by the County Judge/Executive, subject to approval of Fiscal Court.  Board members must be residents of the district at all times.  These three Board members control and manage the affairs of OCSD.

Director Terms - The term of office of the first board of directors was two, three and four years for the date of appointment with the length of each member established in the first meeting which was held in January 1997.  Board members are now appointed to a term of four years.

Supervision - Oldham County Fiscal Court reserves power and authority to review and approve, amend or disapprove proposed OCSD land acquisitions, capital improvements, service charges or user fees and budget.

REGIONAL EXPANSION PROGRAM

OCSD was established to facilitate regional wastewater systems planning and implementation across political boundaries within its service area, which includes all of Oldham County.  There are a number of public, private and institutional wastewater systems that operate within the service area of OCSD. Future wastewater collection, conveyance and treatment facility projects will be reviewed by the District for conformance to OCAP and regionalization objectives.  Efforts to complete regional systems are underway in areas where OCSD owns the wastewater facilities.  Acquisition of private systems controls the success in other areas of the County.

System Acquisition - In 2000 with approval of Fiscal Court OCSD borrowed $4,000,000 from the Kentucky Association of Counties Leasing Trust program.  The purpose of this loan was to purchase twelve privately owned sewer utilities throughout Oldham County.  A program fund of approximately $2.8 million was established to purchase privately owner sewer companies and their facilities.  Another $1.2 million was set aside for capital sewer projects in the Buckner area and to make improvements to acquired treatment facilities.

OCSD is now approximately half way through the acquisition process and has actually expanded the list facilities to eventually encompass.  Approximately 2,800 sewer customers have been secured by OCSD through the utility acquisition process.  To date a total of $2,324,700 has been spent to acquire private sewer utility companies.  Ten sewage treatment plants have been acquired by OCSD in the last three years.  Application has been made with the Public Service Commission to purchase two other treatment systems. The following table provides a summary of the OCSD private utility acquisition program.

124,100

When the acquisition process is completed OCSD will own sixteen treatment plants and be in a position to further the regional system program.

Capital Improvements – In 1997 OCSD initiated a five year, $3.7 million capital construction program in the Buckner area.  This program was initiated to bring sanitary sewers to the Oldham County Community Center in Buckner.  The program was also necessary to provide sewers to the Oldham County Business Park and construct the first phase of a regional wastewater treatment facility.  A $3.0 million grant was used to fund a substantial portion of the project cost.  Buckner area wastewater facility projects and total costs are listed below. 

1. KY 393 Sewer, Pump Station & Force Main - $209,015
2. KY 393 North & South Interceptor Sewer - $528,424
3. Buckner Area Regional Wastewater Treatment Plant - $1,260,687
4. Business Park Interceptor Sewer, Pump Station & Force Main - $795,404
5. OCBE Sewer, Pump Station & Force Main - $471,929
6. Mattingly Road Interceptor Sewer - $391,031

Work on all these projects was completed in 2002 with 5 small package treatment plants being eliminated.  Using funds from a $75,000 Department of Local Government grant, sewers were also extended to all County buildings in Buckner.   Septic tanks and on-site sewage disposal systems at buildings in Wendell Moore Park and approximately a dozen other nonresidential buildings in the Buckner area were eliminated.  Because a central sewer infrastructure was created in the Buckner area, OCSD was able to offer sanitary sewer service to other properties.

There are five wastewater treatment plants and numerous pumping stations that serve primarily residential development in the Goshen area of Oldham County. After years of negotiations and effort, OCSD now owns Cardinals Harbour, Covered Bridge and Trails End wastewater treatment plants. River Bluff and Paramont Estates sewage treatment plants are still privately owned.  OCSD wastewater treatment plants serve portions of the Estates of Hunting Creek, Countryside, Covered Bridge Farms, Hillcrest, Harmony Lake Estates, Lakeview Estates, Trails End, Settlers Point, Goshen Hills, Goshen Woods, Spindletop, Huckleberry Hill, Harmony Landing Road, Cardinal Harbour, Yacht Club Estates and Barbizon Place. OCSD plants in Goshen area have a combined treatment capacity of 564,000 gallons per day and serve approximately 2,000 homes.  Construction of a regional treatment facility near the Ohio River has the highest priority and is the most cost-effective wastewater management plan for the Goshen area.  A regional wastewater treatment facility in the Goshen area will allow OCSD to phase all smaller treatment plants out of service.  A joint MSD/OCSD wastewater regional facilities plan is complete and approved for capital improvements in North Jefferson County and Goshen and Crestwood areas of Oldham County.  OCSD capital improvements scheduled over the next five years are listed below.

OPERATIONS

There are approximately 50 miles of sewer, 35 pumping stations and 11 wastewater treatment plants, serving OCSD customers.  Total treatment plant capacity is approximately 1.3 million gallons.  Six OCSD wastewater treatment plants have a capacity exceeding 100,000 gallons per day and have 80% of the total plant capacity.  The largest is Trails End treatment plant with a capacity of roughly 314,000 gpd.  The next largest are Ash Avenue at 300,000 gpd, Covered Bridge at 140,000 gpd, Buckner at 135,000 gpd, Cardinal Harbour at 110,000 gpd and Lakewood Valley at 100,000 gpd.

Federal and State regulations limit amounts of pollutants that can be discharged into streams and rivers.  Discharge permits typically limit the amount of biochemical oxygen demand, total suspended solids and ammonia nitrogen as well as the level of fecal coliform bacteria.  Biochemical oxygen demand is a qualitative means to measure the organic waste in the water in or out of a treatment plant.  Total suspended solids and ammonia nitrogen are is a quantitative measure of the undissolved waste in the water.  Measurements for these pollutants levels over 2002 indicated that all of OCSD treatment plants consistently met or were less than permit discharge limits.

FINANCIAL SUMMARY

The financial integrity of OCSD changed dramatically in 2002.  Acquisition of Goshen Utilities wastewater system increased the number of OCSD customers threefold.  The OCSD budget for the fiscal year beginning July 1, 2003 and ending June 30, 2004 is $1,259,349.  For the previous fiscal year the annual OCSD budget was $176,000.  In 1996 the OCSD budget which was funded by Oldham County Fiscal Court, was $25,000.  OCSD budget and customer growth since 1996 is depicted below.

In the current fiscal year OCSD projected revenue and income is $1,041,570.  Annual operating costs of $446,549 are estimated along with $332,732 administrative cost and $212,486 in interest expense.  OCSD now has seven full time employees.  Due to significant costs for maintenance and repair of acquired wastewater systems and annual debt service on the $4,000,000 loan with the Kentucky Association of Counties, OCSD total annual expense exceeds annual revenue.  The deficit is currently covered with revenue from capacity charge collected from new development.

Over the next five years OCSD revenue is expected to increase to approximately two million dollars.  This revenue increase can be attributed to implementation of equal sewer rates, customer growth through new housing connections and private sewer utility acquisitions.  In Fiscal Year beginning July 1, 2004 OCSD revenue should exceed total annual expenses.  Reducing annual operation expense over the next several years is possible with elimination of the number of treatment plants being operated.  The average monthly sewer rate for an OCSD customer using 6,000 gallons of water per month is $26.87.  An OCSD revenue and expense projection with current monthly sewer rates is shown below.