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Monte Vista authorizes $1 million DOLA grant application as wastewater plant costs rise
Summary
City council approved staff to apply for a $1,000,000 DOLA Energy and Mineral Impact Grant to help cover a growing shortfall for the wastewater treatment plant; staff said USDA funds would serve as the local match and estimated construction costs have climbed to $42–48 million.
Monte Vista city council voted to let staff apply for a $1,000,000 Department of Local Affairs (DOLA) Energy and Mineral Impact Grant to help plug a funding gap for a new wastewater treatment plant.
The motion, moved and seconded by council members during the meeting, passed on a voice vote. City staff said the DOLA grant allows the city to use secured USDA funding as the required match rather than drawing directly from city reserves.
Public works staff summarized the project’s history and current status: the city received a consent order in 2022 related to effluent metals limits, design work has been underway, and the new mechanical plant is needed because the existing lagoon systems cannot meet metals and ammonia treatment requirements in winter. Staff told council that the original estimate of about $30 million has risen and that current construction estimates are between $42 million and $48 million.
Staff described the procurement timeline: questions for bidders close late February, bids are due March 12, and award could occur in April; construction could begin as early as August 2026 with completion in 2027, depending on funding and CDPHE approvals. Because CDPHE has not finalized effluent limits, engineers are designing under current best assumptions and staff warned there remains regulatory uncertainty.
City officials said they will continue pursuing multiple funding sources and may seek phased compliance schedules from the Colorado Department of Public Health and Environment (CDPHE) to spread some decommissioning costs over time. The council’s authorization allows staff to submit the DOLA grant application immediately while staff pursue other grants and funding strategies.
The council did not take a final construction award at the meeting; the next procedural steps are bid opening and later contract award once funding is in place.
