Cranberry supervisors lock in funding for $42M upgrade at Brush Creek Treatment Plant
CRANBERRY TWP — Township supervisors made several moves that will finance the majority of a multimillion dollar solids handling project at the Brush Creek Treatment Plant during a meeting on Thursday, April 3.
A vast majority of the roughly $42 million project will come from a $35,960,000 loan from the Pennsylvania Infrastructure Investment Authority, or PennVEST.
The financing authority is prepared to supply the township with a low interest loan that will charge 1% for the first five years and 1.74% from years 6 through 20.
According to township manager Dan Santoro, officials will now need to receive approval of the debt issuance from the Pennsylvania Department of Community and Economic Development, which should happen in the next 30 days.
Supervisors also approved a plan to fund the project prior to the PennVEST loan being issued.
As contractors complete work at the facility, they’ll initially be paid through the township’s sewer fund. However, when the township receives funding through PennVEST, the resolution will allow the township to reimburse the sewer fund over time.
Along with the PennVEST loan, officials have secured other sources of funding for the project.
Those include a $5 million grant through the Environmental Protection Agency and a $1.75 million grant from the H20 PA Act, which provides multiyear grants to assist with the construction of drinking water, sanitary sewer and storm sewer projects.
Additionally, the township will receive about $6.3 million from the Marshall Township Municipal Sanitary Authority as part of an intermunicipal service agreement.
All of those efforts will help soften the blow after bids for the project came in 20% higher than anticipated, which amounted to a $6 million rise in total costs.
It’s still undetermined how the township will account for that increase, but one method will be to look at sewer rates.
“We’re going to look at the sewer rates here in order to help cover that additional cost,” Santoro said. “That’s something we’ll be looking at in the future and seeing if we need to do that or not. That decision has not been made, but it’s something we’ll be looking at.”
While the township has the authority to adjust sewer rates at any time, Santoro said it wouldn’t occur immediately, if at all.
“More than likely, you’re talking about late this year or next year before that could happen,” he added. “Again, though, that’s an unanswered question at this point.”
In anticipation of work beginning later this summer, supervisors awarded six contracts of varying amounts.
The largest contract, worth $31,777,777, was awarded to Kukurin Contracting for general contracting services.
McCurley Houston Electric received a $3,306,000 contract award for electrical work.
GHD was awarded a $1,333,075 contract for construction management and inspection services. That company also received another contract for engineering services worth $861,540.
Finally, Lugaila Mechanical was awarded $1,703,000 for HVAC work and Shipley Plumbing acquired a $210,641 contract for plumbing work.
The project, which is scheduled to commence sometime in June, is expected to take two and a half years to complete.
