Skip to content
You are here: Home Area News Archive
Lowry discusses Wastewater Facility
Pope County Tribune - Starbuck Times
Written by Valerie Schmidt   
Thursday, 19 February 2009 18:35


Anderson presented an overview of the project noting there was a need for such a system in the city, and that the city had taken appropriate steps in finding a location for the ponds and had also reviewed user rates once the system was up and operational.

According to Anderson the collection system is not doing the work it was designed to do. Aging pipe has defects, which allow for inflow and infiltration into the system which means the city is actually paying to treat clean water. This also causes overloading of the current stabilization ponds. In some instances there is inadequate pipe depth allowing freezing to occur.

The purpose in replacing the current system would be to correct the deficiencies currently plaquing the system. All existing pipe would be replaced with new, the depth would be changed to enhance the system, and also it would allow the city to provide sewer to properties northwest of Highway 55.

New stabilization ponds would be constructed to meet state and federal regulations and these ponds are also designed to accommodate moderate growth in the city. The old ponds would be abandoned by dredging the sludge and filling the ponds in.

During the presentation it was noted the current ponds do not meet MPCA water table separation regulations, and the existing clay liner is leaking. There are also areas where excess sludge had accumulated allowing for the pond system not to work as originally designed.

Currently the surveying of the pond system has been completed and it was hoped the soil borings would be starting the first week in February. By mid-February Anderson is hoping to submit the preliminary design to Rural Development. Upon their comments, the next step is to submit the final design to Rural Development by April. At that point it is hoped Rural Development would authorize bidding of the project in April or the first part of May.

Bid opening would then be scheduled in May or June with construction beginning in June or early July. Sewer construction would then be anticipated to be complete in November 2009, with all construction being completed by June of 2010. Of course, this is all based on a perfect world. As of yet, the city does not know if all the financing prices are in place. That is the big question.

Funding sources for the project came mainly from the federal government and state. On the federal level is USDA Rural Development funding the project through loans and grants. The state funds come from grants from Small Cities, and the Public Facilities Authority is grants and loans.

The proposed funding looks something like this: Rural Development grant of $830,000 and loan of $1,203,000; Public Facilities authority a grant of $830,000 and Small Cities a grant of $600,000 with a loan of $130,000. This totals $3,593.000 for the total cost of the project.

Broken down the estimates for the project look something like this: Collection system $1,434,000; stabilization ponds $1,480,000; Engineering, administration, legal and land purchase estimated at $679,000.

At this point it is estimated user fee be approximately $40-$50 a month.

One question asked is what happens if we need more loan if we don't get the grants. If that were to happen, user fees would certainly be increased it was noted. However, it is likely the city would delay construction feeling it would be something they could not afford.

Mayor Bruce Larson said it was a good question, but at this point stated, "We don't have an answer."

When asked how long the city would have to repay the grants, Mayor Larson indicated it could be up to 40 years with an interest rate of 3.625 percent. Anderson said the interest was figured based on the obligation at the time of loan closing. The interest rate could go down, but not above quoted rate.

"You've got about 2/3 grant financing," Conroy said. "You probably have as good a package as you'll ever get."

"The driving factor behind that schedule right now," Anderson said, "is that bids are coming in much lower than expected."

However, that also has a down side. If the project comes in considerably under budget when bids are opened, Rural Development will decrease the amount of the grant, meaning the loan amount is not as likely to be decreased. Rural Development will use the grants from

Small Cities first, then to the Public Facilities Authority before dipping into their funds.

Currently, the city has the word they have received the Small Cities grant. They are waiting to have a letter of obligation from Rural Development to know if the project is funded.

In other business:

• Authorized the hiring of an appraiser to appraise the land where the ponds will be located. A legal description needs to be completed before the land can be purchased.

• Learned the resident with a frozen water meter was out of town and had requested a delay in meeting with the council to resolve the issue until March.

• Approved an application for bingo for the Legion Auxiliary for March 22 and April 5.

• Agreed to find someone to sand/gravel intersections to allow for safe braking at intersections and also crossing streets for pedestrians.