The Bremen Town Council members were updated on the upcoming Wastewater Treatment Facility project when they met August 14.
The new plant would include a new maintenance building, control, chemical feed and blower building, and a sludge storage structure. The project also includes a new effluent outlet to the Yellow River, and the reconstruction of the town’s interceptor sewer through the wetland area and the manufactured home park.
Jeff Rowe from Baker Tilly said the current project estimated cost is about $17.3 million with $14.5 million of that in construction costs and $2.7 million in non-construction costs. The town was considering a State Revolving Loan or a loan through USDA to fund the project.
Engineer Ken Jones from Jones Petrie and Rafinski said costs are higher than initially estimated when discussions first started in 2021 in order to keep up with inflation, but there is not anything happening in the project that is extra than what the operation actually needs. He mentioned that the length of the interceptor sewer has been shortened by about half to minimize costs.
Rowe noted that the council previously approved rate increases ahead of this project to be able to pay for the project. The first phase went into effect June 1 of this year which represented a 20 percent increase and the second phase would reflect another 20 percent increase January 1, 2024. Another increase will be determined once financing is determined.
Going with a Rural Development loan means the town can pay off the loan without pre-payment penalty. Rowe explained that the town could consider a 40-year Rural Development loan with USDA and set sewer rates at a level to pay off the loan in 30 years instead of 40 years. That way the town has the benefit of an extended loan period and a reduced sewer rate increase in the last phase of increases.
In the end, the council unanimously voted in favor to move forward with a Rural Development loan through the USDA.
Jones commented that project is expected to go out to bid in October, although a few easements will be needed to move forward with the project. Bids are anticipated to be opened by the end of the year with construction to begin in the spring, if all of the processes move forward with no issues.
