Al Stong, the president of Commonwealth, will serve as the senior project manager for the New Palestine wastewater expansion.
NEW PALESTINE — The actual cost for an expansion to the New Palestine wastewater treatment plant and rate increases are both still up in the air. However, one thing town officials know, an expansion to handle growth must happen as soon as possible.
Town officials are in the process of ironing out the details to determine how much of an expansion they want and what kind of rate increases might come for customers following the recent approval of a preliminary-engineering report.
Once the engineering report is approved by state officials in early 2023, the final project cost and rate increase will be determined, officials said.
Town officials heard details of the major project from Commonwealth Engineers, Inc. Indianapolis, last week at the council meeting, Wednesday, July 20. The plans and costs for the massive project range from $22.6 to $46.1 million, depending on the scope.
Town officials noted the likely rate increase will end up being only a few dollars from the current rate of $67 to a mid-70-dollar price.
An accountant from Krohn & Associates, Jarrod Hall, spoke on rate increases and said the worst-case scenario, with no growth, would call for a rate increase from $67 to $149, but Hall said that is based on zero growth in New Palestine and is highly unlikely.
“I know that’s a lot, but this assumes nothing, no grants, no growth or anything,” Hall said.
Another scenario, which considers growth and fee charges, lowers rate costs and would call for an increase from $67 to $95. But, even that estimate would more than likely be lowered with grant monies, Hall said.
“We’ll apply for everything,” Hall said. “Their threshold is $65, so you already meet it meaning this project would qualify for a grant.”
The president of Commonwealth Engineers Inc., Al Stong, serves as the senior project manager for the town’s project. He noted the town was hearing worst-case scenarios on the rate numbers, and said there is no way the state would allow for the worst-case rate increase. He said there is a good chance, if the growth continues, rates may not go up.
“Nobody is going to proceed with a project that shows a $150 or $95 rates,” Stong said. “These are worst-case scenarios.”
Stong’s engineering firm created a preliminary engineering report for the town to submit to state revolving loan fund officials. Part of the process for this type of project calls for presenting the project to the council and community before submitting the proposal to the state.
Commonwealth engineer, Meghan Pintozzi presented the contents of the report and said one of the larger issues facing the town is the rapid growth in the area.
“We took a large examination of the population growth and home development likely to occur with a five-year phase approach and a 20-year design,” Pintozzi said.
Population projections show there is steep growth anticipated for the area as well as the county. While the town did have a renovation of the wastewater facility plant in 2018, the rapid growth indicates need for a much larger operation.
From high capacity levels to overloaded lift stations, the town needs to move forward with an expansion as soon as possible, officials said.
In addition to the town’s main treatment plant, they acquired a smaller plant (Gem Utility) on the north side of town from Cumberland, one they plan to shutdown and push the flow to their main facility. Pintozzi noted there are also several county residents on much older septic systems that will be looking to the town for service in the not too distant future, both are things town officials must consider.
The engineering firm presented several options with the one cost estimated at $22.6 million, another at $20.1 million and a third option at $14.8 million. However, the engineering firm noted work associated with the Gem Utility would also cost an estimated at $5.2 million while the county area regionalization part could cost as much as $25.9 million.
Pintozzi noted without the regionalization part, the full project would cost an estimated $22.6 million, or some $46.1 million with it.
Hall and Stong both noted state officials are in favor of regionalization projects, and they would help the town obtain grant funding to pay for that part of the project.
“We are pursuing the top project and the only way we would pursue the bottom part of the project (the regionalization) is if we get state funding,” Stong said. “There will be money available for that.”
Council president Bill Niemier said they must move forward with the project or run the risk of violating state capacity standards. The rest of the council agreed voting unanimously for the project to move forward.
