Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Infrastructure topic
No spam. Unsubscribe anytime.
Low bid for Cherry Valley water treatment system is $2.59 million; city staff say state loan forgiveness could cover costs
Summary
Staff reported the low bid for a new water treatment system at $2,594,276 and said the project is structured as an 80/20 loan forgiveness program that, if conditions are met, would be paid for by the state; staff also noted municipal water and sewer loan balances and an increase in a municipal account.
Water-department staff reported that bids for a new water treatment system opened on the 9th and the low bid received was $2,594,276. Staff said the financing would be structured under an 80/20 loan forgiveness program: if the city complies with required laws and project conditions, the state would ultimately cover the cost.
The council also heard an overview of the municipal water account, which staff said has grown since a 2025 rate increase; staff cited approximately $68,000 in the municipal order account and referenced existing debt obligations (a roughly $300,000 sewer loan and a roughly $200,000 water loan). Staff said they will continue pursuing state grant/forgiveness opportunities and will monitor award timelines, which can be slow once grants are awarded.
Council members stressed the need for continued oversight of compliance conditions and timely project management to ensure the city qualifies for loan forgiveness. No formal award or contract was signed during the meeting; staff said they will follow up with the bid results and next steps to ensure compliance and to return details to the council for authorization before proceeding.
