In a recent government meeting, Vice Mayor Sinclair moved to approve the award of a significant drinking water project aimed at replacing lead service lines throughout the city. The project, which has an estimated cost of just under $8 million, will be executed by Gustafson and is contingent upon successful financial arrangements with the Drinking Water Revolving Fund (DWRF) program.
Dan Vanderheide, the city's Director of Public Works, provided an overview of the project, highlighting that it is part of a broader initiative to comply with state and federal regulations mandating the removal of lead service lines. The funding for this project is bolstered by federal dollars from the bipartisan infrastructure law and the American Rescue Plan Act (ARPA), which includes a notable offer of 50% principal forgiveness—effectively a grant—reducing the city's financial burden to approximately $4 million.
Vanderheide clarified that the remaining amount will be financed through a 20-year bond at a 2% interest rate, resulting in an estimated increase of $1.21 per month in debt service fees for residents. He emphasized the importance of this project for public health and safety, noting that the city is required to replace all lead service lines by 2039, with potential federal regulations tightening this timeline to 2033.
As of now, the city has replaced about 2,000 of the estimated 11,000 service lines that may contain lead materials. The current project is expected to replace nearly 1,000 additional lines, bringing the total to approximately 4,000. Vanderheide acknowledged the ongoing challenges and the need for continued advocacy for additional funding and support from local, state, and federal leaders to address this critical infrastructure issue.
Commissioners expressed gratitude for the efforts to secure funding and reassured residents that the projected fee increase is manageable, given the necessity of the work. The meeting underscored the city's commitment to improving water safety and compliance with regulatory requirements while navigating the financial implications for its residents.