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Sewer project bids come in about $1.5M over estimate; board explores funding options
Summary
Bids for a Johnsburg sewer project exceeded the $7.6 million authorization, leaving an estimated $1.5 million shortfall; the board discussed USDA constraints on laterals, possible user agreements and the need for additional funding or a revised map, plan and report.
Board members reported that bids for the sewer project exceeded the $7,600,000 amount the district had authorized. The town has held conversations with USDA; while USDA initially raised concerns about laterals on private property, staff said a user agreement would allow grant funds to be used for hookups if done during initial construction. "We can use funds from the grants to hook up the properties...as long as that's being done during the initial construction," said a board member involved in the sewer report (speaker 5).
The larger problem is cost. Speaker 5 said bids came back higher than expected and the town faces roughly a $1,500,000 gap to reach the authorized spending level. The board discussed options including seeking additional funding, creating a new map, plan and report, or pursuing permanent easements so the town could own laterals. No bids have been awarded and the board said it will continue to explore funding pathways and USDA approvals before moving forward.
