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Council approves KDHE loan increase to finance headworks and lift-station work at wastewater plant
Summary
The City of Hutchinson approved Loan Agreement Amendment No. 1 with the Kansas Department of Health and Environment, increasing the existing State Revolving Fund loan from about $3.5 million to just over $5 million to finance permanent headworks repairs and lift station rehabilitation at the wastewater treatment facility.
The Hutchinson City Council on April 15 approved an ordinance to amend its loan agreement with the Kansas Department of Health and Environment (KDHE), increasing the city's SRF loan from about $3.5 million to just over $5 million. City staff said roughly $1.5 million of the increase will fund a permanent repair at the headworks building to improve grit removal at the wastewater treatment plant.
Why it matters: The amendment supplies funds to complete long‑planned repairs at the wastewater treatment facility, addressing items identified in a 2018 limited site assessment and advancing work started in 2022. Funding approval moves the city from design and pre-construction into execution of the headworks improvements while the lift station rehabilitation work is already under contract.
Details from council discussion
- Scope and history: Matt Williams, director of community development, told council the headworks and lift-station projects have been in process since 2022, and the initial limited site assessment that flagged the headworks issue dates to February 2018. The lift-station rehabilitation project has been underway and the joint-venture construction partner started field work approximately two weeks prior to the meeting.
- Loan amount and use: The existing KDHE SRF loan was about $3.5 million. Amendment No. 1 would increase the loan to just over $5,000,000; the additional approximately $1.5 million will fund the permanent fix at the headworks building for grit removal.
- Repayment and terms: Staff said no portion of the additional loan is forgivable. The first payment will be due one year after completion; the construction schedule discussed at the meeting assumes roughly a 15‑month timeline after awarding the contract.
- Emergency-preparedness elements: Council asked about backup power and bypass valves at lift stations. Williams said HDR (consultant) will evaluate overall emergency preparedness and that a couple of the five lift stations have emergency generators included in the scope.
- Capital-improvement plan (CIP): Council members confirmed the work has been on the CIP in prior years and that the loan amendment does not appear to free up relevant CIP funds in the near term.
Council action and next steps
A motion to approve the KDHE Loan Agreement Amendment No. 1 ordinance passed by roll-call vote. Staff will proceed to finalize loan documents with KDHE and enter into the construction contract with the joint-venture construction partner for headworks improvements once KDHE approval and contract execution permit.
Ending: The amendment enables the city to proceed with both the lift-station rehabilitation (already under contract) and headworks improvements to address a long-standing operational deficiency at the wastewater treatment facility.
