Canandaigua officials are taking the next step toward a major overhaul of the city’s aging wastewater treatment system, approving nearly $19 million in potential borrowing while pursuing millions of dollars in state grants to reduce the local cost.
City Council approved the financing authorization Monday night after a lengthy discussion about the city’s growing infrastructure needs, future sewer rates and the uncertainty surrounding state funding.
Council authorizes borrowing for major wastewater improvements
The centerpiece of Monday’s meeting was authorization to issue up to $18.879 million in serial bonds for improvements at the city’s Water Resource Recovery Facility.
The project includes replacing aging primary clarifier equipment that has exceeded its useful life and completing the design of biological treatment upgrades needed to comply with state wastewater discharge requirements.
Before voting, council members also approved resolutions allowing the city to apply for multiple state funding programs, including the Water Infrastructure Improvement Act, Water Quality Improvement Program and Pro-Housing Supply Fund grants.
Environmental Committee Chair Doug Merrill said the resolutions authorize the city to move forward with the project, seek grant funding and pursue bonding or Clean Water State Revolving Fund financing for any costs not covered by grants.
Council unanimously approved all three environmental resolutions before separately approving the bond authorization.
Officials hope grants will significantly reduce local costs
The bond resolution generated the night’s most extensive discussion, with council members seeking more information about the city’s long-term debt obligations and what happens if grant funding falls short.
City Manager John Goodwin explained that the $18.879 million authorization represents the project’s maximum cost and is required before grant applications can be submitted.
If grants are awarded, the city would borrow substantially less.
Goodwin estimated grants could cover between 40% and 60% of project costs, leaving the city responsible for roughly $10 million in borrowing.
Councilmember Guy Turchetti said he would like future bond proposals to include more detailed discussions of the city’s debt picture before reaching the full council.
Goodwin agreed to provide additional financial information during future Finance Committee meetings and noted that the city remains well below its constitutional debt limit. He also said water and sewer debt is treated differently from tax-supported debt under state law.
Mayor Thomas Lyon noted the city may not learn whether it receives grant funding until late this year or early next year.
City faces mounting pressure to upgrade aging treatment plant
Goodwin acknowledged the city faces significant infrastructure challenges regardless of whether grant funding is approved.
He said the Water Resource Recovery Facility ultimately needs approximately $65 million in improvements, including upgrades to biological treatment systems, primary and secondary clarifiers and administrative facilities.
The city also faces increasing regulatory requirements from the state Department of Environmental Conservation.
Without outside funding, Goodwin said officials would likely have to reduce the project’s scope, increase sewer rates or postpone other capital projects to finance the required work.
“We’re not in a great situation,” he told council members, explaining that inflation has dramatically increased construction costs since earlier capital plans were developed.
Goodwin also said the city expects it may be unable to meet some state compliance deadlines because of the scale of work required.
Regional partners will share project costs
Council members also discussed how the project affects communities outside Canandaigua that send wastewater to the city’s treatment plant.
Goodwin said Ontario County Sewer District and participating municipalities already contribute toward the facility’s capital costs through a long-term intermunicipal agreement based on wastewater flows and other factors.
The city is also evaluating whether those cost-sharing formulas should be updated based on current system usage and loading.
Goodwin said the county and its municipal partners have “plenty of skin in the game” and will continue contributing toward future improvements.
Other water and sewer projects approved
Council also unanimously approved several additional infrastructure projects.
The city will seek 100% grant funding to complete a lead service line inventory required under federal Lead and Copper Rule Improvements. The project will identify lead and galvanized water service lines that must ultimately be replaced by 2034.
Council also awarded a $132,765 contract for construction of a new security fence around the Water Treatment Plant. The project will establish a secure perimeter around critical drinking water infrastructure serving more than 40,000 people.
Additional budget amendments approved Monday include:
- A $35,000 replacement of a damaged 30-inch water treatment plant flow meter after an electrical brownout rendered the existing equipment inoperable.
- An $18,000 repair project at the Roseland Pump Station to replace three valves needed to keep one of the station’s pumps operating reliably.
Officials said both projects will be funded using savings from other completed capital projects.
Residents receive Main Street and Jefferson Park updates
During his report, Goodwin said letters will be mailed this week to residents in the Jefferson Park neighborhood inviting them to participate in discussions about a proposed rezoning initiative.
He also provided an update on the long-awaited resurfacing of Main Street.
The New York State Department of Transportation plans to begin milling and paving work in mid-August. The project will extend from Tops Plaza to the City Pier and will be completed primarily during overnight hours.
If work stays on schedule, Goodwin said motorists should have a newly paved Main Street before Labor Day.
Downtown BID celebrates successful festival
Before council business began, Downtown Canandaigua Business Improvement District Executive Director Denise Chaapel thanked city staff, the Department of Public Works and the Police Department for helping make last weekend’s downtown arts festival successful despite smoke and severe weather.
Chaapel said the event featured more than 150 artists, food vendors and three days of live music.
She also announced the city’s Unity in the Chosen Spot festival will return Aug. 8 with an attempt to set a Guinness World Record for the largest group simultaneously playing singing bowls.
The BID also recently unveiled a new public mural by Courtney Austin of Paints and Rec on the transformer boxes near City Hall depicting Canandaigua’s history of transportation.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to news@fingerlakes1.com.
