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Council adopts lead service‑line inventory grant and $3.69M Cherry Run loan, authorizes engineering contracts
Summary
Council adopted a $460,000 lead service line inventory grant (90% forgiveness up to $414,000) and a $3,694,925 Clean Water SRF loan for Cherry Run pump station and force main replacement, and authorized engineering agreements with Rivers and Associates including a $310,500 purchase order.
The Washington City Council voted Sept. 9 to accept a $460,000 grant from the North Carolina Division of Water Infrastructure to inspect the drinking water distribution system and develop a lead service line inventory (DWI Project No. SRF‑D‑LSL‑0103). According to the materials presented, up to 90% of the loan (maximum $414,000) may be forgiven, the remainder would be repayable at 0.00% interest, and a loan fee of 2% applies; debt is contingent upon Local Government Commission approval.
Council also adopted a grant project ordinance to accept $3,694,925 in Clean Water State Revolving Fund financing for replacement of aged infrastructure and rehabilitation of the Cherry Run Pump Station and 5th Street force main (Project No. SRF‑W‑0004). The loan terms presented indicate a 2.04% interest rate and a 2% loan fee to be invoiced after bids are received.
Following both ordinance approvals, Council authorized the Mayor to execute engineering agreements with Rivers and Associates for each project and approved related purchase orders: $460,000 for the lead service line inventory project and $310,500 for engineering on the Cherry Run project. Motions to adopt the resolutions and authorize agreements passed by recorded votes with four yes votes and one absence (Councilmember Antwan Horton).
Meeting minutes state the City Manager and staff will pursue required approvals and bid processes; the minutes note the debt associated with the lead replacement program is contingent on LGC approval and that the developer of the replacement work will follow SRF requirements.
