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Escalon staff: failed Bureau of Reclamation grant leaves $4M surface‑water gap; wastewater upgrade to be phased
Summary
City staff told the council an application to the Bureau of Reclamation was unsuccessful, creating an estimated $4,000,000 funding gap for the surface‑water project. Separately, a $40,000,000 wastewater‑treatment upgrade is being phased with industry partners to spread costs and limit ratepayer impact.
City staff updated the council on major infrastructure capital projects, reporting a stalled application for Bureau of Reclamation funding that leaves an approximate $4,000,000 shortfall for the surface‑water project and pausing further major work until additional funds are identified.
"We are unfortunately not successful in that grant application," staff said, noting the city will pursue additional grant sources and low‑ or no‑interest loans. Council directed staff to halt forward progress on the surface‑water project until the funding gap is narrowed or alternate financing is secured.
On the wastewater treatment plant, staff described an aging facility and a previously issued notice of violation. The overall upgrade was characterized as a roughly $40,000,000 project that staff intend to phase, working with industrial users that share a portion of the system so the domestic side can be completed in stages. Staff said phasing could reduce ratepayer burden by allowing a later rate study and spreading improvements over more years.
Staff also reported progress on smaller capital projects (sidewalks, library, pavement rehabilitation) and on six annual CIP projects expected to be completed by year end.
