City forced to put utilities expansion on hold

Changes with Safe Drinking Water Loan will not affect construction of Northeast Water Treatment Plant

By Kellen Olshefski

SLN Staff

A slight hiccup in the DNR’s Safe Drinking Water Loan process has the City of Elkhorn making some slight changes to help move along an offsite project tied to the city’s water treatment facilities.

According to City Administrator Sam Tapson, the latest issue that has come up has to do with a planned $1.1 million allowance embedded in the design contract tied to an expansion to the city’s Electric and Water Utilities site on Koopman Lane.

Tapson said both the Wisconsin Public Service Commission and DNR don’t approve of that expansions connection to the loan.

“For whatever reason, it’s not going to be allowed and it’s just something we have to deal with,” he said.

Tapson said the city is taking the allowance out of the project and the city has been notified it can apply for a waiver to the deadline for submittal of intent to apply, which was in December 2015.

To be clear, Tapson said this won’t deter progress on the city’s Northeast Water Treatment Plant project as the city has already accepted the approved loan for that portion of the project. Tapson said as the addition is off premises from the new treatment plant, the DNR and PSC are requiring the city to withdraw it from the funds provided through the loan, though the plant will continue to move along as planned at this time.

Tapson said if the city were to submit the waiver, it would hold the city’s place and the city would then submit a request for funding by June 30. He said city staff is looking at what it can do differently with the project, though the city needs to act now on the waiver, even if they decide not to apply for funds

“We can’t take the time to do that evaluation and let this waiver opportunity pass,” he said.

Tapson said this would not commit the city to anything at this time, only hold a place for the city if it were to choose to go that route.

“They’re not saying you’re getting the money, we’re not saying we want to take money, but if you don’t get in line, you can’t play,” he said.

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