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Pulaski council urged to move ahead on $6.6 million sewer interceptor design despite grant timing uncertainty
Summary
Engineers told the council the town is eligible for a $6.6 million loan and possible grant funding but must be 'shovel ready' by November 2026 to receive principal forgiveness; the consultant recommended beginning design now and scaling construction to the loan the town can afford if grant amounts are lower.
Stevie Steele, an engineer with CHA, told the Pulaski Town Council the planned rehabilitation of a failing sewer interceptor carries an estimated cost of $6,600,000 and that the town has been granted hardship status that makes it eligible for state loan and possible grant assistance.
Steele said the state is currently announcing loan terms but will not disclose final grant (principal-forgiveness) amounts until June 2026. ‘‘If you want this money, you have to be out to bid by November ’26,’’ he warned, noting the agency’s deadline for shovel-ready projects. He recommended council authorize moving forward with design now so the town will have the option to scale construction up later if grant funds arrive.
Council staff and Steele described a risk-managed approach: design the full project, advertise bids with unit pricing and a base bid sized to fit the local rate revenue and loan terms, and add grant-funded scope later if principal forgiveness is awarded. Steele said that approach allows the town to do ‘‘as much of that work as you can afford,’’ and if grant money is awarded in June it can be used to expand the contract.
Steele also described how CHA would carry soft costs and engineering expenses in the near term and be reimbursed from loan proceeds at closing to avoid the town taking on interim bank debt. Town staff said preliminary engineering (PAR) and field investigations, including camera inspections and manhole testing, have already been completed to support the cost estimate.
Council members sought clarification about bidding, the extent of existing engineering work and what would happen if principal forgiveness were smaller than expected. Staff replied that the rate increases already adopted by the council were set in anticipation of some level of principal forgiveness but that the project can be cut back in length if needed and still proceed.
The next step identified was to begin design early in the new year so the town can be shovel ready and preserve its position for grant consideration in June 2026.
