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City manager says wastewater digester-pipe failure now estimated at $1.2 million; local match needed for state funding

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Summary

The interim city manager told council the previously estimated repair cost at the wastewater treatment plant has risen to about $1.2 million and the city must identify roughly $227,000 in matching funds to qualify for a public-works funding package.

Sunnyside’s interim city manager told the council on May 5 that a recent digester-pipe failure at the wastewater treatment plant has revealed a larger scope of damage than originally estimated and that the repair cost has risen to about $1.2 million.

Why it matters: The city is preparing an application to the Public Works Trust Board; staff said the program offers a package in which up to $1 million is available (described by staff as a combination of a 50% grant portion and a long-term loan element). To qualify, the city needs to identify approximately $227,000 in matching funds. The manager said the Public Works Trust Board application is due May 9.

Options and next steps: Staff said they will meet with Yakima County Development Authority (YCDA) to explore seed funding options. If YCDA cannot provide the match, staff indicated the city would need to reallocate existing budget lines or prepare a budget amendment to cover the local share. The manager described the funding terms discussed with the Public Works Trust Board as a 50% grant and a 20-year payback at about 0.8% interest on the loan portion.

Other updates: The manager said an additional plant component (a separate work item) will be reinstalled and returned to service after a pending lab sample is confirmed, freeing up roughly one million gallons per day of capacity. He also reported a separate pipe/retaining-wall repair on Dayton Street was fixed for about $12,000, well below an earlier estimate of roughly $225,000.

Ending: Council asked staff to pursue YCDA seed-funding options and prepare contingencies. No formal council vote was taken tonight; staff will return with a funding plan and any budget adjustments needed to secure state funding.