City seeking grant for wastewater engineering

Published 9:53 am Tuesday, September 19, 2006

By By ANDY HAMILTON / Niles Daily Star
NILES – City of Niles Utilities Manager James Lehmkuhl said engineering work could begin at the Niles Wastewater Treatment Plant in 2007 if Niles can secure additional funds from the state of Michigan.
He added construction at the plant may not start until 2008 or 2009.
The Board of Utilities Monday agreed to pursue another grant from the Michigan Department of Environmental Quality. The funds would only be able to cover engineering costs, Lehmkuhl said.
"This is strictly engineering. This is not construction," he said.
This is the second time the city will attempt to tap into a $40 million Michigan Department of Environmental Quality fund. A similar process completed in June netted the city $200,950 toward engineering costs, Lehmkuhl said.
The second application is due Oct. 1.
The S2 Grant Program would help to pay for 90 percent of the cost of engineering studies and design at the wastewater plant. Niles can obtain up to $1 million of the fund on a first come, first serve basis.
A 10 percent matching of city funds is required to be eligible for the S2 Grant Program. Niles hopes to pay the remaining costs with a 20-year, low interest loan from the State Revolving Fund, which Lehmkuhl said the city may apply for in July 2008.
Lehmkuhl said the Department of Environmental Quality has until the end of 2006 to approve the application. Lehmkuhl said the city is required to complete the capitol improvements at the plant once Niles signs paperwork agreeing to accept the grant.
"Really, we have no obligation at this time," Lehmkuhl said.
The first repairs at the wastewater treatment plant would be made to headworks, biosolids and disinfection processes, which are "improvements we are saying are very important to be done," Lehmkuhl said. He added the total cost of revamping the three areas was estimated at $8 million by Grand Rapids consulting firm Fishbeck, Thompson, Carr and Huber.
Jack Rafter, a consultant with FTCH, recommended in March the city pursue the S2 Grants to help cover the cost of engineering work. The Niles City Council June 12 unanimously voted to contract with FTCH to prepare a project plan and apply for state funds to cover the plan and design activities.
Lehmkuhl also said the city may have to determine by the end of 2006 the size of the bond issue needed to revamp the wastewater treatment plant. The results of a cost of service study would determine the effect on taxpayers, he added.
A resolution from the Niles City Council is needed to apply for the S2 Grant. A proposal to complete the second application for the grant will be presented on Monday, Sept. 25 at the regular meeting of the city council.
Jack Rafter will address the council at a committee of the whole meeting the same day at 6 p.m., prior to the regular council meeting.