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Underwood council hears wastewater plant update as electrical redesign, permits and $750,000 in grants shape timeline
Summary
Engineers told the council MidAmerican Energy declined a south-side electrical route, BNSF now requires a new utility accommodation, and Iowa DNR placed the construction permit on hold pending an environmental review; the project has $750,000 in grants and staff expect design revisions and bid planning to follow.
Underwood City Council received a technical update Feb. 11, 2025, on the city's wastewater treatment plant upgrade, where engineers said an electrical redesign and a delayed state permit are the principal factors shaping the project timeline. The council was told the project currently has $750,000 in grants that help offset rising costs.
The update matters because the electrical routing decision and the pending state review affect whether the city can start construction as planned and whether rate changes may be needed to cover increased costs. Municipal advisor Nate Summers said the grants' $250,000 from the Iowa West Foundation and $500,000 from an Iowa Finance Authority WTFAP grant ' reduce immediate pressure but that the city should complete bid letting before committing to an ordinance-based rate increase for debt service.
Jeff Godwin, engineer with Snyder & Associates, told the council MidAmerican Energy declined to route electrical service on the south side of the lagoon, leaving the only feasible tie-in near the existing transformer on the west side of the railroad tracks. That change means the city must secure a new utility accommodation from BNSF before the electrical work can proceed. Godwin said the electrical engineer must revise the design after Lemna reported a blower-size increase that requires 480-volt service instead of the originally planned 240/three-phase configuration; once the electrical-design update is complete, Godwin will forward it to the railroad for review.
Godwin also reported that the Iowa Department of Natural Resources issued a construction permit but cannot act further until a second environmental review is completed. The DNR requires a 30-day public comment period associated with environmental surveys after the review; council materials indicate the new outfall location is roughly 150 feet south of the original diffuser, and the permit is valid for three years. Godwin advised that if the city does not have a clear construction go-ahead by June, staff should coordinate with SRF and consider taking bids for seasonal sludge removal in fall 2025.
Nate Summers walked the council through debt-service scenarios and said the combination of increased project costs and the $750,000 in awarded grants "evens out" the current budget picture for now, but cautioned that future rate adjustments could be needed depending on final bids and borrowing. Engineer Dave Sturm briefly reviewed probable engineer costs associated with other projects the council has discussed, including road work and a potential fire-station expansion.
Godwin noted he will retire soon and that Erik Jorgensen will be the point engineer for the city as the WWTP upgrade proceeds. The next expected procedural steps are an updated electrical design submitted to BNSF, completion of the DNR environmental review and comment period, and moving toward bid letting once design and permitting uncertainties are resolved.
