Sherwood board approves Appleton wholesale water deal and moves forward with $2.26M pipeline contract

The Village of Sherwood moved this year to secure a new long-term source of treated water, approving engineering contracts and awarding bids to build a transmission main that will link the village to the City of Appleton.

The board and its Utility Commission first approved McMahon engineering contracts for preliminary and design services in March; commissioners explained the work was needed to meet the April 30 Safe Drinking Water application deadline, and to create the documentation contractors require for competitive bids. The board later authorized several construction contracts and authorized financial agreements to borrow and to seek state loan/grant funding.

Why it matters: Sherwood’s aging groundwater source and scattered pressure problems led the utility to pursue a wholesale supply that officials say will stabilize service and support growth. The project carries multi-year spending and borrowing implications for the village and its water rates; the board directed staff to pursue Safe Drinking Water Fund assistance that could cover roughly half the construction cost.

Details: In late summer the board awarded the transmission main contract to Donald Hietpas & Sons, Inc., and the metering station and Well #5 pumphouse modifications to Miron Construction Company after the Sept. 1 bid openings. McMahon and village staff added a bid alternative to address a low-pressure pocket in the village; the board subsequently approved the alternative and authorized River Valley Testing to perform proctor and compaction testing along the route. Work began in October and, by mid-December, the construction report showed roughly half the pipe installed and directional boring and casing operations underway.

Financing and next steps: Trustees authorized initial bond/refunding resolutions in June and later approved the sale of general-obligation promissory notes and the Safe Drinking Water loan documents needed to receive state financial assistance. The board voted to enter the financial assistance agreement that commits the village to its 50% share of eligible project costs and to sign related loan documents; bond counsel and financial advisors were engaged to finalize the borrowings. Construction will proceed through winter as weather allows; the village will continue to file required state paperwork and to post required ARRA/SDW signage where appropriate.

Statements and context: Village Engineer Jennifer Schaff reported that applications and project documents were time sensitive because of federal and state funding deadlines. Utility and finance advisors told trustees the DNR program could provide low-interest financing and grant support, reducing the amount borne directly by Sherwood ratepayers and taxpayers.

What’s next: The village will continue construction, monitor testing and compaction reports, seek final grant/loan awards, and adjust budgets and rates that reflect the new wholesale supply once price and timing are firm.