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Peru board approves multiple SRF disbursements, OKs $317,857.91 for excess sludge removal
Summary
Peru pproved a series of State Revolving Fund disbursements for water and wastewater projects, including lead-service-line work and a $317,857.91 expenditure to remove excess sludge from wastewater tanks; members were told Wheeling Brothers will handle biosolid storage and land application and staff expect reimbursement from contract savings.
The Peru city board on July 15 voted unanimously to approve several State Revolving Fund (SRF) disbursement requests covering water and wastewater work, and agreed to fund a $317,857.91 sludge‑removal cost from operating reserves while seeking later reimbursement.
The approvals covered SRF disbursement requests listed as attachments 6a through 6g, including a phase‑2 engineering request tied to lead‑service‑line replacement and multiple phase‑1 and construction disbursements. The board recorded motions and seconds on each item and the chair called unanimous votes.
Why it matters: the items collectively fund core upgrades to Peru nd allow the utility to continue its lead service line replacement program and wastewater plant work without delaying construction and maintenance schedules.
During discussion of item 6g, staff said the tank cleaning produced more solids than initially estimated and that the work is outside the original project scope. The manager told the board the city would cash‑fund the expense and then seek reimbursement from remaining contract savings, saying, “$317,857.91.” He added staff expect to recover the amount from contract excesses and estimated an available excess of about $1,200,000, but said the city will have to pay the sludge removal cost up front for roughly four to six months.
Board members asked how the solids would be handled. A staff member answered that Wheeling Brothers, the contractor, maintains a biosolid storage facility and applies biosolids to farm fields under its own permits: “They take it to this facility, and then they have their own land application permits where they apply it to farm fields.” The board sought and received clarification that the material would not be land‑applied on city facility grounds.
Votes at a glance - Item 6a (Peru municipal water utility SRF disbursement request #5): motion made and seconded; approved unanimously. Purpose discussed: phase 2 engineering for lead‑service‑line replacement (part of a $10,000,000 funding "bucket"). - Item 6b (SRF request #22): motion made, seconded; approved unanimously. Described as part of an initial $5,000,000 pool for phase 1. - Item 6c (SRF request #23): motion made, seconded; approved unanimously. - Item 6d (SRF request #24): motion made, seconded; approved unanimously. Noted as filter media replacement work. - Item 6e (Sewage Works SRF request #84 to Hazen and Sawyer): motion made, seconded; approved unanimously. - Item 6f (Sewage Works SRF request #8527 – Construction): motion made, seconded; approved unanimously. - Item 6g (Excess sludge removal, attachment 6g): motion made, seconded; approved. Staff explained cost and temporary funding plan.
The board did not record individual vote tallies in the transcript; each item was announced as approved or described as unanimous by the chair.
Next steps and follow-up: staff will cash‑fund the sludge removal and pursue reimbursement from contract savings at project closeout. The board also directed staff to continue standard reporting on SRF draws and to provide documentation showing reimbursement when received.
The board set its next regular meeting for Aug. 5, 2026, at 4 p.m.
