HAGERSTOWN, Md. — Hagerstown is once again seeking state funding for the Edgemont Reservoir rehabilitation project, even as it moves forward with other major water and wastewater infrastructure investments.
During a work session on Sept. 15, Hagerstown city staff members updated the mayor and city council on funding applications sent to the Maryland Department of the Environment. They noted the city’s unsuccessful request for about $34.1 million for the Edgemont Reservoir. The request included a local share of about $4.1 million. Staff members explained that the application did not rank high enough to receive funding this cycle.
Since then, city officials have met with state representatives and received advice on how to strengthen the application before resubmitting it in January.
Staff members explained that Edgemont is difficult to fund because the rehabilitation project fits into several funding categories but doesn’t match any one category exactly. Maryland Department of Environment officials said the relevant programs lacked enough funding during the last cycle.
State officials advised the city to improve the wording of its next application for Clean Water Act funding, especially by emphasizing the possible effects on downstream waterways if the reservoir structure fails. Staff said officials with the state agency believe these changes could help the project rank higher in the next funding cycle.
Despite the funding setback, officials said the Edgemont project is still moving forward. The agency has approved the probable maximum precipitation study, so design work can continue. Hazen is working on the design, and officials hope the project will be almost ready for bidding in three to six months.
The goal is to start construction around this time next year, or possibly sooner. City and state officials also plan to meet every four to six weeks to review progress and keep the project moving.
Wastewater projects receive over $35 million
While Edgemont did not receive funding, Hagerstown had much more success with several of its wastewater projects.
Staff members said the funding decisions for Phase 2A and Phase 2B improvements at the city’s wastewater treatment plant are positive. The two projects will receive over $35 million in total, with more than $13 million expected from principal forgiveness. The presenter said this level of principal forgiveness is higher than any previous funding package he has seen in nearly 30 years of working on funding applications.
He told the council that in similar cases, the maximum principal forgiveness is usually $3 million. However, the council did not approve funding for the city’s Pump Station 13 project during that cycle.
Officials also discussed another phase of improvements to the wastewater treatment plant, for which the city received three construction bids. The lowest bid was just under $25 million, while the other two bids were about $28.3 million and $36.99 million.
Staff members described the bidding process as competitive and said they have requested more information from the apparent low bidder. The project will be sent back to the mayor and council for review. Hagerstown will also work with the state agency on a bond-funding package for the project. It is still unclear how much principal forgiveness that financing will include.
$3.1 million expected for lead service lines
The city also expects to receive about $3.1 million for its lead service line program.
Staff members said the Environmental Protection Agency has identified the funds, although the money had not yet passed through the state at the time of the meeting. The full $3.1 million is expected to be covered through principal forgiveness.
As explained in the meeting, Hagerstown would repay the loan over 10 years. However, staff members said that according to the state environmental agency, the city would not have to pay any principal, interest or administrative fees during that time if the project meets the requirements. Officials said this arrangement works like a grant, even though it is technically a loan.
Staff members told the council that the city would not have to pay any principal, interest or administrative fees during the 10-year term. City officials said they plan to keep seeking state and federal funding as Hagerstown continues major improvements to its water and wastewater infrastructure.
The application for the Edgemont Reservoir is expected to be resubmitted to environmental officials in January, while design work will continue regardless of the latest funding decision.
