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New Shoreham moves to secure additional USDA funds after water project bids exceed original estimates
Summary
The Town Council authorized the town manager to sign USDA paperwork and expressed intent to ask voters to authorize up to $942,000 in borrowing to complete a multi-phase water system upgrade after construction bids came in higher than projected.
The New Shoreham Town Council voted Aug. 20 to authorize town manager Amy (last name not specified) to sign documents to obligate USDA funding and to express the council's intent to seek voter authorization at the next financial town meeting to borrow up to $942,000 for completion of the town's three-part water-improvement project.
John (surname not specified), representing the water company, told the council the project is in three parts: new treated-source wells and well-field infrastructure, storage (a tank that is already online and helping with peak demand), and upgraded treatment capacity at the water-treatment building. The tank is complete and operational, and two well borings were successful after one unsuccessful borehole was abandoned. Bids for the next construction phase — a 20-by-30 well control building and related site work — came back at about $1.45 million, higher than earlier estimates.
To close the financing gap, staff and the water company pursued additional USDA assistance. The council authorized the town manager to sign a document obligating a USDA package the presenters described as a mix of loan and grant funding (discussion referenced a $625,000 grant and a $942,000 loan allocation). Councilors approved a separate motion expressing their intent to place a warrant article on the next financial town meeting authorizing borrowing up to $942,000; that borrowing would be repaid from water rates, though the council noted that any borrowing requires voter approval because town borrowings for the water company are borrowings of the Town of New Shoreham.
Councilors and staff discussed the cost increases and stressed contingency planning: USDA paperwork obligating funds was prepared quickly because of program timing; if voters do not authorize borrowing at the financial town meeting, USDA said the obligation can be cancelled. Presenters emphasized the project addresses a capacity and reliability issue for the island: failing private wells and weekend peak demand create public-health and business continuity risks for inns and others that rely on safe, steady water supply. The council asked staff to continue reporting project milestones and financial updates as the project proceeds.
