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Lowell council closes out 2018 CDBG sewer grant as residents press to reuse funds for local sewer repairs

City of Lowell City Council · November 13, 2024
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Summary

At a Nov. 12 council meeting, a city presenter outlined the FY2018 CDBG sewer project closeout and said $1,008,251.59 will be returned to federal authorities because the funds were restricted to a defined project area; residents pressed council to redirect unspent money toward broader sewer and wastewater plant repairs but staff said federal rules and timing prevent repurposing.

A presenter for the City of Lowell told the City Council on Nov. 12 that the FY2018 Community Development Block Grant (CDBG) infrastructure project—originally awarded for sewer rehabilitation—spent $688,228.41 of a $1,696,480 award and that $1,008,251.59 in unexpended funds will be deobligated and returned to the federal granting agency.

The presentation outlined the original scope (evaluation and rehab or replacement of vitrified clay sewer lines, CCTV inspections, and manhole work), subsequent amendments that added roughly 2,570 linear feet of work, and four change orders that left the final construction contract at $475,950.11. The presenter said the project provided area‑wide benefits to low‑ and moderate‑income residents and remained in compliance with federal program requirements.

Why it matters: some residents and council members urged the city to try to retain or redirect the unspent funds to other urgent sewer needs in Lowell, including work tied to the wastewater treatment plant and collection lines. Richard Lynch, a Lowell resident, told the council the city "committed to a contract of $588,000 to Withers Ravenel to have a study done to decommission a plant that we never voted on to decommission," and asked whether remaining grant money could be used elsewhere in the sewer system.

Staff and the presenter responded that federal CDBG funds are bound to a project area and detailed project criteria established at application; because the project area and LMI (low/moderate income) maps govern eligible uses and a federal seven‑year deadline applies, the unexpended funds could not be reallocated within Lowell for a different project and therefore must be returned. The presenter also said the grant administrator received $106,913.30 for administration of the project.

Council members pressed for data demonstrating the project's effectiveness. Residents asked whether inflow and infiltration (I&I) volumes were materially reduced after construction; staff said meter‑by‑meter pre/post comparisons were not available for the specific project segments, and that improvements were measured by CCTV inspection and repair records rather than a single plant total. The presenter acknowledged Covid delays and contractor changes that affected the schedule and bidding environment.

The council moved and voted to accept the closeout report and approve the deobligation, while the presenter noted public grant documents are available at City Hall and written comments would be accepted through Nov. 15, 2024. Several attendees asked the city to pursue other funding paths—state or grant applications—targeted to the plant and collection system but staff said those would require separate applications and are not automatic transfers of the CDBG balance.

The council's action: Council voted to approve the closeout of the 2018 CDBG infrastructure project and associated administrative report. The presenter recorded the final expended amount and the unexpended funds to be returned to the federal program.

What comes next: Staff said residents may request project documents at City Hall and that the city can pursue other, eligible grant opportunities in the future; citizens urged the council to study whether municipal revenues or low‑interest loan programs could be used to address the wastewater plant and broader collection system needs.