(10/4) The town will receive a total of $3,150,859 as part of the American Rescue Plan Act to combat COVID-19 pandemic hardships, according to a briefing provided to the Town Council by Town Manager Cathy Willets.
Allowable usages for the money include investing in water, sewer and broadband infrastructure that support public health expenditures and effect negative economic impacts.
"Due to the state of the water budget," the majority of the American Rescue Plan money will go towards the purchase and installation of a new water clarifier and a replacement for the Creamery Road sewer pump station," Willets said. She said the funding for the two infrastructure projects was "desperately needed."
The current Creamery Road Sewer Pump Station is showing its age, at 55 years old, it has already exceeded its 50-year life expectancy. The station does a preliminary screening of large items, like diapers, handy wipes, &c before pumping sewage to the sewage treatment plant.
The water clarifier is needed as the town’s reservoir, Rainbow Lake, experiences "high turbidity from algae in warm seasons," according to Willets. The clarifier will remove a vast majority of algae before the water reaches the water treatment plant’s filters, thereby reducing the need to frequently shut the facility down to clean them.
The estimated cost for the pump station is $3,657,000 and the water clarifier $2,360,000.
The estimated cost of the water clarifier increased from the original estimate of $1.5 million to $2,360,00 due to issues found during the preliminary engineering and environmental reviews, according to Willets.
The preliminary report for the pump station detailed aspects such as environmental resources present, existing facilities, need for project, and alternatives considered. The conclusion stated that the alternative approved is New Creamery Road pump station, USDA will fund project and estimated cost is $3,627,630.
To pay for the new pump station, the town received a loan from the United States Department of Agriculture (USDA) for $1,987,000. In addition, the USDA provided additional grants totaling $866,000, leaving the town with a budget shortfall of $807,000 for the pump station.
To help pay for the water clarifier, the town received a $1 million grant from the State of Maryland, leaving a project budget shortfall of $1,360,000 for the water clarifier.
To complete the two projects the town needed to find a total of $2,167,000 more in funding. The answer came in the American Rescue Plan Act.
On July 26, the town received $1,575,429 from the Federal Government, with the additional $1,575,429 to be awarded within the next 12 months. "The monies [from the American Rescue Plan Act] will be used to cover shortfalls from both projects," she said.
Willets did not indicate what she would recommend the remaining $983,859 from the American Rescue Plan Act should be applied too.
Following the briefing, the Town Council unanimous approved the applying of funds received to date, from the American Rescue Plan Act, to the water clarifier and a pump station projects.