Quincy to borrow for water project
QUINCY — After receiving over-budget bids in June, the Quincy village council voted Tuesday night to borrow $970,000 to complete improvement to its water system.
The 15-year loan allows the village to take advantage of a $1,747,900 American Rescue Plan Act grant from Michigan’s Department of Environment, Great Lakes, and Energy.
The borrowing will increase the recently approved monthly water rate hike of $5.60 to about $8, Village Manager Brittany Butler told the council.
“Our rate study goes out five years,” Butler said. An updated rate study will be needed.
“Once we get the bond, we will see where we’re at and go from there, unfortunately," she said.
Trustee Christy Berry said, “It’s cheaper than buying bottled water.”
Trustee Wendy Sayler told the board, “We need clean water.”
Counsel will prepare a request for 15-year bonds or a loan to pay the bid contract amount that exceeds the grant.
With ARPA money coming from federal appropriations during COVID-19, the village will not likely receive the grant if the project is canceled.
Andy Campbell, a director with accountant Baker-Tilly, told the council the bond or loan might be structured to pay just $46,000 yearly interest for the first three years until a current utility bond is paid off.
“Then the full payments would kick in at call it $106,000 a year for the remaining term," he said.
The accountant suggested local banks might bid on the loan.
Work includes:
Taking apart the wellhouse
Upgrading water filtration
Installing an iron removal system
Updating the electrical, including adding variable frequency electric motors
Village Utility Manager Bill Poole rejected an option to replace high-capacity motors used to fill the water tower.
"They actually push water to the city when the towers down for maintenance," he said.
The bid price of each motor was $450,000.
The grant is $425,000 to replace lead water service lines in 28 homes. Poole is still determining how many exist in the village. A separate state grant received last year will allow the department to locate others.
After the Flint water crisis, Michigan required replacing all lead water lines.
The companion sewer project bids came in under budget at $3,010,000. Half is a grant; the other half is from the state Clean Water revolving loan fund. Sewer rates will pay back $1,505,000 at 1.875% interest.
According to Poole, the sewer project will replace the problematic Pleasant Street lift station. At the treatment plant, the project adds rip rap to lagoon pond #1, replaces pond diffusers, and replaces a gate valve on cell #3.
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After legal counsel prepares requests for funding, the village council will cast a final vote.
---Contact Don Reid: dReid@Gannett.com.
This article originally appeared on Coldwater Daily Reporter: Quincy to borrow for water project
