Warren Council Accepts EDA Grant to Repair Wastewater Plant; Town Will Need Short-Term Cash for Reimbursement Process

The council voted to authorize the town manager to accept a federal Economic Development Administration reimbursement grant to repair and upgrade electrical systems at the wastewater treatment plant following flooding damage. The grant, described in the meeting as approximately $3,100,000, covers repairs and a concrete channel intended to prevent future flood damage.

Town staff explained the grant is a reimbursement mechanism: the town must fund work up front and submit invoices to draw down federal reimbursement. The manager and finance director warned that cost overruns would be the town’s responsibility because the EDA reimbursement grant is fixed; contingency and inspection-line items were discussed in detail.

Finance Director told the council that some inspection/professional fees (roughly $750,000) and contingency (about $414,000) are included in the project budget; council members asked whether the town can absorb overruns and how large interim draw requests might be timed. A consultant noted the contract requires completion within 43 months, giving an approximate monthly cash flow estimate for planning.

Following discussion, the council approved the manager to accept the grant by voice vote.

Quote: "This grant has to be accepted by the town... it has to be accepted by the authorized agent," the town manager said, noting the reimbursement process and potential need to front payments.

The council also asked staff to prepare further details about payment timing and the town's capacity to handle intermittent draw requirements before large invoices were submitted.