Lynn Water Commission: $75 million plant near completion but state SRF reimbursements delayed, contractor unpaid

The Lynn Water Commission heard an update that the wastewater treatment plant rebuild is roughly 92% complete and on schedule, but staff warned that state reimbursements through the State Revolving Fund (SRF)/Clean Water Trust for invoices submitted in November and December remain unpaid, leaving the contractor without expected payments.

Commission staff said the project invoice for January was $1,300,000 and that about $3 million to $5 million of work remains. Dan, a staff member, told commissioners, “you can see we're 92% complete.” He added that the construction contract is roughly $75,000,000 and that anticipated change orders should remain a small fraction of the total—“less than, you know, a third of 1%,” with estimates of possible additional costs of “2 or $300,000” being discussed in consultant invoices.

The nut of the matter is financing: the work is funded through SRF/Clean Water Trust loans and reimbursements are submitted monthly. Dan said invoice number 28 (from November 2024) has not yet been reimbursed and that the design‑build partner has therefore not received payment. “We have yet to receive reimbursement,” he said, adding that staff have reached out to Greg Devine, identified in the discussion as the head of the Clean Water Trust, but had not yet obtained a resolution. Dan described the delay as “unfair that they have to go from since November without getting the paycheck.”

Commissioners and staff outlined the expected repayment structure once SRF proceeds are finalized: the loan will be repaid over 30 years. Staff said the $75 million financing is likely to be split into two ~ $37.05 million phases, each with its own repayment schedule. Staff cautioned that while the commission has not yet felt the debt‑service burden, that cost will arrive when funds are drawn and repayments begin.

Supporting details and context from staff: the project package includes three years of invoice history; progress meetings are scheduled (a March 4 progress meeting was noted); some pump station issues with National Grid and Comcast have been resolved; and major treatment plant components (sludge thickeners, primary scum pumps, grid screenings) are proceeding. Dan said the contractor's unpaid invoices are “from this November and December,” and that requests 29 and 30 were in the queue but not yet far along.

Commissioners asked clarifying questions about the state billing and repayment mechanics. Staff explained the SRF financing process: the commission submits invoices, SRF pays, and the commission ultimately repays the loan over decades. Dan warned the commission will begin to feel debt service when the loans are closed and payments begin under the long‑term schedule.

The update closed with staff noting they are continuing to press for reimbursement and will report further as the Clean Water Trust responds.

Ending — The commission did not take a formal vote on financing changes at this meeting; staff said they will continue outreach to state contacts and update commissioners at future meetings.