Article submitted by Jamie Fleury, The Pilot News Staff Writer
The Bourbon Town Council held a public hearing regarding funding the Water Improvement Project. The purpose of the hearing was to discuss applying for an Indiana Office of Community and Rural Affairs (OCRA) Grant to provide $700,000 in additional funding for the $5.3 M project. There were no public comments made during the public hearing.
The application for OCRA funding had the potential to delay the project for six months or more. Project Engineer from Wessler Engineering Adam Sitka attended the meeting to provide a summary of the project and answer questions.
Sitka has been working with the town for approximately a year to determine the needs of the town moving forward. The town’s water system consists of two existing ground water wells, a water treatment plant, an elevated storage tank and a distribution system.
“Our main objective was to come through all these assets and look for first of all any immediate problems but also evaluate any needs that could present themselves over the next 20 years.
It was assumed that the town would pursue financial assistance for the project, though the scope of that need was not immediately known. Most funding agencies require municipalities to assess projects for 20 year sustainability. “Not just fixing the problems today but being ready for problems that could occur in the next 20 years.”
The team found that the distribution system and elevated storage tank were in good working condition and did not identify any pressing needs.
The problems identified were within the ground water wells and the water treatment plant. Shortly after Wessler partnered with the town, Well #1 failed and quit producing water. The well was cleaned, the pumping equipment was replaced and the well is back in service. “But having that one well off-line kind of opened everyone’s eyes to what the risk would be if it happens again. Particularly considering Well #2.”
Well #1 and Well #2 were very different. Everything for Well #1 was above ground and for that reason problems were easier to detect by sound or sight. Well #2 and the pumping equipment are approximately 100 feet below ground.
The age of both wells were a concern with Well #1 being drilled in the sixties and Well #2 being drilled in the 80’s. With a 20 year planning period, both wells are dated.
The Water Treatment Plant, which was the original reason Wessler got involved with the town, is leaking. The treatment unit is an all-in-one unit made of steel. “Unfortunately because of how and where it’s leaking, it’s not something that you can repair.” That failure required a replacement.
All the supporting devices were then evaluated for current condition and twenty year sustainability including the pumps, electrical controls and chemical feed equipment. All the equipment was outdated or obsolete. Finding replacement parts would be difficult. The base of the unit was cramped making assessments or repairs difficult. “I will say however that the town’s staff has done a great job maintaining the unit. It was built in 1965 and those things typically last 30 years on a good day. So the town has very much gotten their money out of that plant.”
The solutions identified for Well #1 and Well #2 were to rehabilitate them and get them in good operating condition. The goal is to clean Well #2 and bring all the pumping equipment above grade to maintain it and be pro-active with maintenance. Planning for a third production well has been discussed due to the age of the first two. The decision to pursue a third well can be made if bids come in favorable.
The Water Treatment Plant needs replaced. The vessel would be built out of stainless steel which will prolong the life of the unit, possibly double it. The plant itself was designed more spaciously to accommodate maintenance and rehabilitation needs.
Project costs include the following: The constructions costs include the rehabilitation of the wells estimated at $230,000, the new well construction is estimated at $450,000, the water treatment plant is estimated at $3.5M, and the soft costs including legal fees, rate consulting, grant administration are estimated at $1M for a total project cost of $5.3M.
The schedule was dependent on the pursuit of multiple funding options. Sitka said that they are currently looking at bidding the project next Spring / Summer and starting construction in the Fall with a construction duration of approximately 12 months.
President Ward Byers asked what the rate through the state of Indiana would be with securing a low-interest loan to finance the project; Sitka answered historically the rate was approximately 2%. That rate has been increasing recently.
Member Terry Clemens made a motion to move forward with the State Revolving Fund Loan to avoid delays to the project by applying for supplemental OCRA funding.
Residents would see an average increase of $5 per month on their water bill without securing the OCRA funding; but with the cost of construction increasingly on the rise and the condition of the water treatment plant, time was of the essence. Byers pointed out that water rates would increase to fund the necessary project. Sitka emphasized there was some level of time sensitive urgency to repairing the leak.
Member Les McFarland asked if it was possible to split the project and use both funds. Because OCRA requires the local match to be secured prior to approving additional funding and that splitting the project up could cause issues with SRF, it was not a feasible option for this particular project at this time.
Byers said that a portion of American Rescue Plan Act (ARPA) funding has been set aside to fund the project in the amount of just under $200,000.
After discussion, the council approved securing SRF funding at a low interest rate and move forward with the project without delay.
