Public meeting and hearing required for wastewater plant loan

HAYS WASTEWATER TREAMENT PLANT — The Hays wastewater treatment plant must be extensively renovated by 2018 to meet stricter KDHE effluent guidelines.

By BECKY KISER
Hays Post

A public meeting about the Hays wastewater treatment plant renovation will be held next Thursday, July 16, during the Hays City Commission work session.

A public hearing will also be scheduled, during which commissioners can take action. Commissioners are expected to approve the August 13 date during their meeting this Thursday evening, July 9.

Commissioners will also approve an amendment in the contract with Olathe-based HDR, the city’s owner representative for the project. The language change will not affect costs or work schedules, according to Johnny O’Connor, Assistant Director of Utilities.

The steps are required in applying for financing through the state revolving loan fund (SRF) for the project, currently estimated to cost $28 to $30 million–one of the biggest projects ever undertaken by the city of Hays.

“Going through all of this doesn’t lock us into the state revolving loan fund,” according to Hays City Manager Toby Dougherty.

“If there are other options when it’s time to seek financing, we can still get out (of it.) But if we don’t do all this ahead of time, we can’t use state revolving loan funds,” Dougherty explained.

“Johnny and Bernie (Director of Utilities Bernie Kitten) told staff the state is very eager to get us in this program. They utilize some federal monies for this program–hence all the hoops we have to jump through…a lot like the FAA (Federal Aviation Administration) (airport) monies we get, there’s always five more steps in an FAA project than a regular project,” he said.

“The state needs to justify that they’re actually utilizing this (federal) money and doing good with this money. So they want us in this program and they’re being very accommodating.”

If commissioners decide to apply for the SRF loan, they will do so shortly after the public hearing.

“Once we’re approved, then we can lock in an (interest) rate,” according to City Finance Director Kim Rupp.

“It it time sensitive. You keep hearing they’re going to raise rates…whether they do or not, the rates are good now so we want to get moving and get as far down the road as we can as quickly as possible,” Rupp said.

Hays has used the SRF previously.

“We actually just paid off a state revolving fund loan last year. It was taken out in the ’90s for the last upgrade at the wastewater treatment plant,” said Dougherty.