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Weirton is moving forward on the next phase of financing for a planned expansion of the city's water treatment plant.
As part of its meeting Thursday afternoon, the Weirton Finance Committee recommended an ordinance authorizing the issuance of "not more than $12,000,000 in Original Aggregate Principal Amount of Water Revenue Bonds."
"Basically, this is to approve the third leg of the financing of the water project," explained Jasen Havens, assistant water director.
The Weirton Area Water Board is in the process of implementing a project to expand the treatment capacity of the existing plant from its current 4 million gallons of water per day to 8 million gallons per day.
To assist with the project, the board previously received approximately $22.4 million from the U.S. Environmental Protection Agency, and $5.6 million from the State of West Virginia, neither of which have to be repaid. A third funding source, in the amount of $5.6 million from the West Virginia Infrastructure and Jobs Development Council, is coming in the form of a loan.
The issuance of the bonds, Havens explained, will help, not only to meet the remainder of the anticipated costs, but also provide an additional 20% to cover unanticipated costs or if bids come in higher than expected.
"It's going to give us a $6 million cushion," Havens said.
Weirton Council previously implemented a two-stage increase in the city's water rates to support the costs of the project, with passage coming prior to the receipt of many of the funding sources.
"We did a worst-case scenario," Fracasso said.
The first stage of the rate increase went into effect last year, with the second stage to begin once the expansion project is completed. Officials have noted, it is possible some of that rate increase could be reversed based on the final costs of the project.
According to Havens, the ordinance must go through three readings by council, as well as a public hearing, during which time Water Board officials anticipate completing the bid process for the expansion project and being able to have more firm costs available.
The first reading is scheduled to take place during Monday's city council meeting.
Other items recommended by the Finance Committee Thursday included:
– An ordinance modifying Ordinance 1313 establishing a new maximum salary level for a specific non-union municipal employee within a specific department of the City of Weirton General Fund. Discussions indicated the position is within the city's police department. The recommendation also came following a discussion on the progress of a contract the city has with AlignHR to update its human resources manual and procedures.
– A resolution authorizing an agreement with CivicPlus for maintenance and hosting of the city's website, and AudioEye's website accessibility and ADA compliance software. City Manager Mike Adams said he has not received the final contract, but anticipates a cost of $14,545.89.
– A resolution to make a financial contribution to the Weirton Area Chamber of Commerce's citywide Christmas lights restoration project, at a cost of $5,250. The funds are coming from the charitable contributions allotments provided to Fracasso and Councilwoman Flora Perrone.
– A resolution for an agreement with Aqua Filter Fresh Inc. For water cooler and bottle services, at a cost of $4,064.20. Officials noted this will cover seven water coolers and the delivery of 38 bottles per month.