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City manager outlines grant progress for wells and Munson site; explains loan/grant mechanics
Summary
City officials updated the council on pursuit of grants and loans for Well 6 and Well 7 rehabilitation, a $1.6 million Drinking Water State Revolving Fund (DWSRF) award/loan application, and development funding options for the Munson property with Yakima County Development Association support.
At the Feb. 18 Sunnyside City Council study session, the city manager reported recent lobbying and grant activity in Olympia and outlined progress on multiple infrastructure priorities.
The city manager said the council and staff recently met with state lawmakers and consultants to pursue capital funding for municipal needs, including rehabilitation of Well 6 and Well 7. He said the city has a $1.6 million award/loan scenario through a state program and expects documentation in the coming months. "We are still probably a couple months out before we actually get the funding," the city manager said.
Raul Sanchez explained the grant/loan mechanics: "Yes. So this loan is through the DWSRF, which is the Drinking Water State Revolving Fund. ... It's all on a reimbursement basis." Sanchez said the application specifies the expenditures and that the agency rates projects; invoices must be submitted and approved before reimbursement, and the award will indicate the portion granted versus loaned.
Staff told the council that initial engineering for Well 7 reduced an early $880,000 estimate to roughly $120,000 for the work they have identified so far, though other well work remains under study. Funding for other projects is still being pursued; staff listed Tina Knopf Park soccer-field improvements, gazebo enhancements and seed money for a Boys & Girls Club as additional grant targets.
Officials also described ongoing work with the Yakima County Development Association (YCDA) on a seed (SIED) infrastructure grant that staff said could provide up to $2 million for the Munson property to make the site more marketable for developers. Staff described multiple consulting relationships—Colton Consulting, Casa Arteaga and outside grant writers such as RGI—and said those partnerships have helped the city refine cost estimates and pursue different funding buckets.
Councilors asked for clarification about whether grant funds could be repurposed; staff explained that most awards are project-specific, include match or loan components and are reimbursed after invoiced expenses are approved. Staff noted the loan portions are typically low-interest (staff cited examples around 1%) and that capital funding could be used to pay or offset loan components.
