BRIEF LOAN DEADLINE EXTENSION- New Sewer Option Being Evaluated

Wednesday, July 14, 2010

— The City of Gravette recently was warned that July 29 is the deadline for the city to retain a 2.2275% low interest loan to upgrade or replace the city’s wastewater treatment facility.

At a meeting with the City Council last Thursday, Dale Fenter, finance manager for the Arkansas Natural Resources Commission (ANRC), the agency which authorized the loan, agreed to an extra two weeks to allow the city’s engineering firm to study an alternate plan for consideration.

No Plan Approved

The ANRC warning indicated the loan, for up to $9,000,000, would be deobligated if the city has not submitted an acceptable plan by that July date.

Gravette has failed to approve either of three plans submitted by Mc-Goodwin, Williams and Yates, which the engineering firm developed for reducing phosphorus and ammonia nitrates in the effluent discharge.

Engineer Jim Ulmer saidhis firm will complete an evaluation of a later plan proposed after City Council members Byron Warren and Terry King outlined observations of a system utilized by a Maine community.

The pair visited the Maine facility several weeks ago and reported that town uses a “reed bed” vegetation system to neutralize the offending chemicals and a “beltpress” system for disposing of sewage sludge.

History of the Problem

Gravette had received notification in March, 2007, that a plan to reduce phosphorus and nitrates would be required by the end of October, 2010, the date a state permit to operate the sewer plant would be renewed.

If an acceptable plan to meet that requirement is not met by that date, the city faces fines for each day the system discharges without a permit.

Losing the low-interest loan would also result in a higher-interest loan,increasing the pay-back cost for bond issues. Those costs would have to be borne by consumers.

The Fayetteville firm was initially retained by the city to evaluate the system and their report was presented to the Council in November, 2007. At that time, given a go-ahead by the Council, the firm prepared alternatives to solve the problem.

Project Expensive

Those options were received by the city in February of this year. A later alternative was added when the City of Decatur offered to treat Gravette’s sewage.

The city has failed to agree on a final solution while searching for a cheaper solution which would reduce the estimated $7 - $8 million price tag and the resulting increased costs to customers.

The ANRC letter/action came after they failed to receive the city’s final plan of action. The meeting Thursday and the subsequent action was a result.

News, Pages 1 on 07/14/2010