Engineers offer funding updates on regional water project

By MICHELLE MCLEAN

Hillsboro city commissioners considered a $1.3 million contract with Advanced Engineers and Environmental Services to see the city through the planned construction of a new water treatment plant.

AE2S president Charles Vein hand-delivered the 35-page draft contract to commissioners Monday night.  It outlined in detail the relationship between Hillsboro and its engineering firm as the city moves toward completion of a regional water system in conjunction with Traill Rural Water Users and the City of Mayville.

The city has had a working relationship with the Grand Forks company for more than a decade and the firm has overseen multiple infrastructure improvement projects for the city.

Under the terms of the contract, the city would pay $870,000 for the design of the project (nine months); $355,000 for construction administration and observation (12 months); and $42,800 for post-construction services (12 months). The bill also carries a $5,000 fee for permit work performed by AE2S and $35,000 for “piloting” the new plant once it begins operation.

The contract also offers a $120,000 option to have a professional firm set up the initial instrumentation and controls for the computerized plant.

“We think it’s what it will take to get the job done right,” Vein told commissioners. 

Under the three-phase $23.7 million regional water supply system plan, the city will construct an $8.7 million new water treatment plant to receive raw water from Traill Rural Water’s well field and treat water for city and TRW customers. The regional system, which is already under construction, is anticipating about 70 percent of the cost of construction to be covered by state and federal grants. Hillsboro anticipates spending about $2.5 million for its share of the project’s construction.

Commissioners opted to review the engineering contract and vote on the matter at their May 4 meeting.

Vein also outlined changes in potential funding for the project. He noted that Hillsboro’s project was not chosen by the Bureau of Reclamation for funding. The federal agency received $59 million instead of the $20 million expected, Vein said.

“Nobody in the state had any input,” he noted. He added that some project managers already reported that they can’t use all the new money allocated.

The numbers could be “reworked” in Hillsboro’s favor, Vein speculated, but nothing was definite.

The State Water Commission decided to fund four projects with federal stimulus money, Vein reported. The move freed up about $5.6 million, of which $2.8 million was assigned to the Traill project.

“The water line to Hillsboro is now funded,” Vein said.

Vein urged the commission to “go forward with design” of the water plant. “You’ll be ready” however future funding “shakes out,” Vein added.

To be eligible for funding through the federal stimulus package, projects must be bid and awarded by February 17, 2010. Vein urged commissioners to keep that deadline in mind as the process moves forward.

“You’re not dead in the water,” Vein said. “If you wait, it will be difficult to meet the deadline.”

He noted that funding options will remain uncertain until the Legislature completes its work in early May.  Vein said he is concerned that flood control projects might garner a big share of funding through the state water commission, the same body that’s helping develop an improved regional drinking water supply system in Traill County.

Portions of the three-phase Traill project have already been funded by the state. City supt. Jim Anderson offered, “The state is smart. They’re not going to give money for a pipeline and not for the (Hillsboro) plant at the end of the pipeline.”

Vein said he remained hopeful that the state revolving loan fund would still offer one-percent loans for Hillsboro’s project, potentially saving the city $1 million in interest in the long term.

As part of his visit to Hillsboro Monday, Vein introduced AE2S engineer Perry Johnson, who will serve as project manager for the Hillsboro water treatment plant project.