Village inks contract for new utility plant

Plans to construct a new wastewater treatment facility in the Village of Grafton are moving forward.

The Village Board on Monday approved an $8.5 million construction contract with Fond du Lac-based C.D. Smith Construction, which submitted the lowest of three bids for the work. 

The board also approved a $852,300 contingency budget for the project. 

The board voted 6-1 in favor of the construction contract. Trustee Sue Meinecke cast the dissenting vote but did not provide an explanation or return a call from Ozaukee Press.

Village Administrator Jesse Thyes said construction will begin in spring, but he is not certain when it will be complete. 

“This is a pretty significant project, and it’s going to take some time,” he said.

The total cost for the project is $9.4 million, and the village will consider borrowing and other financing options at a later date, Thyes said. The village is seeking a loan from the Clean Water Program through the Department of Natural Resources with 1.6% interest rate.

“We will be on the phone tomorrow with the state of Wisconsin to get the financing instrument in place,” Thyes said. 

“The program is very similar to a new-home construction loan. It’s a low interest rate, and we’re pretty excited about this opportunity.”

The project is expected to cost $1.69 million more than anticipated last year. The village has $7.7 million budgeted for construction.

“All of our construction projects over the last couple of years have gone up,” Public Works Director Amber Thomas said.

“Contractors are busy and a lot of municipalities have projects going on. That definitely affects the cost.”

The current facility at 1900 Ninth Ave. is about 40 years old and is no longer efficient, officials said. Typically, water-treatment facilities have a 20-year lifespan.

Utility Supt. Tim Nennig said the new facility will have enough capacity to accommodate growth in the village for the next 20 to 30 years. 

The proposed 11,574-square-foot facility will be built on the west side of the current site near the railroad tracks.

Equipment in the existing building will be removed. The future use of the building hasn’t been determined, officials said.

In 2018, the Village Board approved a 16.9% increase in sewer and water rates to support maintenance and construction of the facility. Rates are expected to continue increasing over the next couple years to pay for the project. 

MSA Professional Services conducted an infrastructure evaluation that revealed each level of the wastewater treatment facility has deficiencies. 

Last year, the village Plan Commission approved the site plan and a conditional-use permit for the new facility.

In addition to the new building, the project includes updates to screening equipment and electrical and generator upgrades. 

The wastewater treatment facility is the first of three projects for the Water and Wastewater Department that will be supported by revenue from the rate increase. The other two projects are buying new equipment to filter biosolids planned for 2023 and an activated-sludge treatment scheduled for 2028.

“We’re looking forward to moving ahead with the project. Our current facility is at the end of its life with machinery that runs constantly,” Thyes said.

“We’re looking to increase efficiency and capacity to meet the DNR guidelines on treatment plant operations.”