Crescent City will use state grant dollars to conduct the first rate study of its water and sewer systems in years, and state forgivable loan dollars to address much-needed projects at the wastewater treatment plant.

The most recent water rate study was conducted in 2013, City Manager Eric Wier told Councilors on Monday, and the last time staff conducted a sewer rate study was in 2015.

Though the study could result in rate increases, Wier said it will also analyze the systems’ operating expenses, capital improvement needs and debt service.

“As a utility we should be doing a rate study every five years to check in and make sure we have enough resources to manage and operate our utilities to the satisfaction and reliability of the public we serve,” Wier said. “It’s been over eight years for the water system and it’s been since 2015 on the wastewater side of things.”

Four members of the City Council authorized staff to work with the State Water Resources Control Board’s consultant to develop the rate studies for the water and sewer systems. Mayor Jason Greenough was absent.

According to Public Works Director Jon Olson, the grant is worth roughly $80,000. But instead of that money coming to the city, State Water Resources Control Board staff will contract with a consultant who will conduct the work, Olson said.

According to Wier, a typical rate study would cost between $30,000 and $40,000 each for the water and sewer systems.

City staff are also working with the State Water Resources Control Board to get started on three projects at the wastewater treatment plant — an upgrade to its rotating biological contactors; replacing the membrane on its “technologically advanced” filtration system and determining if there’s a way to avoid sending the plant’s biosolids to the landfill, according to Olson.

The Council approved the loan agreement with the State Water Resources Control Board “with 100 percent forgiveness.” Mayor Pro Tem Blake Inscore also authorized staff to send out a request for qualifications for the project.

According to Olson, the city had applied for a grant under the state’s Water Quality, Supply and Infrastructure Improvement Act of 2014, but that funding source ran out of money. After modifying the application, State Water Resources Control Board officials directed the city to the state revolving loan program.

“Each year the water board has some amount of state revolving loan funds they’re allowed to provide to communities. It’s called a loan, but it’s a forgivable loan,” Olson said. “What this grant covers will take us halfway through the design of the subject projects and give us some specifications. It will provide good engineering estimates and get us through our environmental (permitting) for these projects.”

According to Olson, about $400,000 in forgivable loan dollars will be coming to Crescent City. He said he’ll likely also work with the water board to find funding for the next phase of the project.

According to Wier, the three projects the city is starting with these state dollars began a number of years ago.

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