DANVILLE – Estimated expenses related to the Northwest sanitary sewer project to be included in a loan request have increased by almost $3 million.
City Engineer Sam Cole said the city will include some costs that have already been paid, such as for design and construction engineering, due to the potential for up to 30 percent forgiveness with the loan.
“It’s more of a strategy to get more (costs) paid …,” Cole said, adding the partial loan forgiveness is not guaranteed.
He said they’re including possible extra cost contingencies. Even if they receive a similar construction bid, issues can happen in construction resulting in additional costs, but then the city might not need the entire loan amount.
Members of the city council’s Public Works Committee tonight will consider authorizing the city to borrow about $9.3 million from the Water Pollution Control Loan Program through the Illinois Environmental Protection Agency. With loan approval, construction could start this fall.
According to the resolution, the estimated cost includes construction, installation, engineering, legal, financial and other related expenses. The principal and interest payment will be payable semi-annually, with the loan maturing in 20 years which is within the 25-year useful life of the project.
The city will repay the loan from its storm and sanitary sewer fund.
The project includes sanitary sewer improvements within the Northwest Sanitary Sewer Service Area Reconstruction to include renovating two existing lift stations, decommissioning an existing lift station, constructing a new lift station with a control building and rerouting sanitary force mains and gravity sewers. The rerouting will save power and provide a more efficient flow scheme over the existing layout, according to the resolution.
Active residential, commercial, industrial and other service connections in this area total 11,686.
The project schedule: submit IEPA certification of plans and specifications March 15, 2020; advertise for bids June 1, 2020; open bids July 7, 2020; initiation of construction Sept. 1, 2020; and completion of construction Sept. 1, 2021.
Aldermen in June 2019 rejected a $6.2 million contract with Cross Construction of Urbana for the new gravity sewer, force main, pump stations, a pipe/pedestrian bridge and bridge joint replacement. The improvements were to take place through Chateau Estates and along Old Ottawa and Denmark roads.
A previous estimate for construction and other related expenses had been $7.5 million.
Cole said a previous $6.5 million loan application had not been sent in for the project.
City officials hope to find out in June if the loan is included in the IEPA’s fiscal year 2021 allocations. Funds could be released in late July, according to Cole.
This project doesn’t yet address any roadway improvements.