Water Sector Commission approves multiple grant adjustments, asks Saint Bernard Parish to rework demolition plan

The Water Sector Commission on an unspecified date approved time extensions and additional funding adjustments for several water-system projects and asked Saint Bernard Parish to return with more value engineering before the commission will consider its large funding request.

The commission approved two two-month extensions for Delcom and Generate to provide match-fund documentation for loans through the Louisiana Department of Environmental Quality (DEQ) revolving fund. Will Bartlett of DEQ told the commission, “We believe they'll be able to move forward. Yes,” after confirming the projects have submitted environmental plans and are progressing through the program.

The commission also approved an administrative correction to AME City’s local-match calculation after staff said $35,000,000 previously listed as local match was capital outlay and not used in the match calculation; staff said AME City did not request additional funds and the correction reduces its reported match percentage.

Several award adjustments and supplemental requests were approved with no recorded roll-call votes. The commission approved an additional funding request for Greenbrier Prairie water system after the applicant reported it secured a $249,000 USDA loan to preserve its original match percentage; Heath McGuffey, representing Greenbrier, said the extra USDA loan helped the system “maintain our previous match percentage.”

Point Blue Chetanion Water System was granted an additional $1,075,768 after the applicant said an earlier presentation to the commission misstated the amount requested; Ronnie Lanterano of Lancherneau and Associates said the earlier paperwork mistakenly requested the larger figure and the current request corrects that error. Representative Butler moved to approve the request and the motion passed by unanimous voice approval.

Southeast Waterworks District No. 2 received an additional $473,510 to cover bid shortfalls on a water treatment plant contract; the district committed additional local matching funds and reported it had implemented the system’s rate study. Senator Womack moved approval; the motion carried with no objection.

Saint Bernard Parish requested $2,490,467 in additional Water Sector funding to cover cost increases in a phased project that includes a high-service pump replacement and demolition of a 3,000,000‑gallon concrete ground storage tank and associated clarifiers. Donald Bourgeois, capital project supervisor for Saint Bernard Parish, said phase 1 is under construction and that the demolished tank has a large crack and is leaking. Bourgeois said the demolition work requires selective methods because the tank is adjacent to a neighborhood and connected to active plant piping.

Commission members expressed concern about the scale of the requested increase (about 84%) and asked Saint Bernard to pursue additional value engineering, look for other local or grant funds and consider whether abandonment of some underground piping could be deferred or handled with parish funds. The commission did not approve Saint Bernard’s supplemental request at this meeting and directed the parish to return when it has further cost-reduction options; the chair said the item would be scheduled for a future meeting.

Votes at a glance

- Extension approvals — Delcom and Generate: Motion by Chairman Zarang to approve two-month extensions to provide match documentation; outcome: approved (no roll-call recorded). Referenced program: DEQ revolving fund.

- AME City match correction: Motion by Chairman Ziering to approve corrected match calculation (capital outlay excluded); outcome: adopted (no roll-call recorded). No additional funding requested.

- Greenbrier Prairie Water System supplemental funding: Motion to approve additional funds to maintain original match after securing $249,000 USDA loan; outcome: approved (no roll-call recorded). Applicant representative: Heath McGuffey.

- Point Blue Chetanion Water System supplemental funding ($1,075,768): Motion by Representative Butler to approve; outcome: approved (no roll-call recorded). Applicant representative: Ronnie Lanterano.

- Southeast Waterworks District No. 2 supplemental funding ($473,510): Motion by Senator Womack to approve; outcome: approved (no roll-call recorded). Applicant representatives: Todd Vasson and Clint Duga.

- Saint Bernard Parish supplemental funding ($2,490,467): Discussion and direction to pursue additional value engineering and local funding options; outcome: deferred/tabled for resubmittal with more cost-reduction analysis. Parish representatives: Donald Bourgeois and Rob Delon.

Why it matters

The commission’s approvals and corrections free or reallocate Water Sector and DEQ revolving funds that support small and regional water systems’ ability to complete construction and maintain service. Approvals that increase grant amounts may trigger Joint Legislative Committee on the Budget (JLCB) review; staff flagged JLCB approval requirements where applicable. The deferred Saint Bernard request — an 84% increase for demolition and related work — illustrates the commission’s scrutiny when supplemental requests significantly raise project costs.

Details and background

- DEQ documentation and program status: DEQ staff said both Delcom and Generate have submitted environmental plans and are progressing in the DEQ revolving fund loan process; DEQ supported two-month extensions for match documentation so the loans can proceed.

- Buy American and USDA loans: Greenbrier reported that an additional USDA loan of $249,000 would not trigger further Buy American requirements because USDA advised projects under $250,000 avoid those extra domestic requirements.

- Bid and value‑engineering context: Point Blue said errors in paperwork had led to a mistaken supplemental request in August 2024; the corrected figure requested at this meeting reflects the award amounts after value engineering and phasing. Several applicants said they had used value engineering and phasing to reduce scope and costs before seeking additional commission funds.

What’s next

Saint Bernard Parish will return with additional value engineering and potential alternate demolition approaches; the commission suggested the parish explore less invasive demolition methods, phased abandonment of underground piping or local funding alternatives before the commission considers approval. Other approved supplemental awards will proceed through DEQ and may require JLCB review where increases exceed thresholds.

Speakers quoted or referenced in this article appear in the accompanying speaker list and were present in the meeting record.