PENDLETON - The Pendleton City Council on Tuesday night authorized entering into a $4 million loan agreement with the state Department of Environmental Quality. The money will help finance the city's planned wastewater treatment plant upgrade set to begin construction early next year.
The loan falls under the Clean Water State Revolving Fund. Half of it qualifies for federal stimulus money, given at zero percent interest.
But those stimulus dollars have certain strings attached:?Much of the equipment, material and prep work falls under the program's "buy American"?provision, meaning the city must go through American companies for those services. There are, however, exceptions to that clause.
Pendleton Public Works Director Bob Patterson told the council those requirements likely mean more paperwork, and thus more costs. But the loan agreement provides a "very large savings" to Pendleton taxpayers, said City Manager Larry Lehman.
The first phase of the upgrade is estimated at $15 million - $10 million from 2007 bonds, $4 million from the loan and $1 million from city reserves. The second phase of upgrades should happen in 7-10 years, Patterson said.
Construction on the project's first phase is expected to last 14-18 months. The council unanimously approved the loan.
- Eric Florip
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