MEDORA

Medora learned about a new stimulus grant funding opportunity in the nick of time.

Jon Craig, business development manager for Midwestern Engineers Inc. of Loogootee, recently talked to the Medora Town Council about the State Water Infrastructure Fund program.

The Indiana General Assembly via House Enrolled Act 1001 has allocated $100 million of federal Coronavirus State and Local Fiscal Recovery Funds to the Indiana Finance Authority to provide grant funding to state utilities for wastewater, drinking water and stormwater projects.

The goal of the program is to finance projects that protect and improve public health and water quality, satisfy a regional solution and provide substantial rate relief to Indiana utility customers most in need.

The deadline to apply was three days after the council’s recent meeting, and the three members unanimously approved to have Craig move forward with submitting the grant application.

Medora is eligible to apply for up to $5 million. Craig told the council during a meeting in January that it will cost more than $3 million to perform work on the wastewater, stormwater and drinking water system.

“Of course, that’s like hitting the lottery if you would get the entire system paid for,” Craig said. “There’s no reason not to ask for it.”

Within the past year, Midwestern Engineers studied the system, which was installed in the 1960s, and submitted the findings to the state.

Craig said the town scores well based on the four criteria for the grant, including the community’s income level and rates.

“Your rates aren’t super high, but your income level does meet the criteria for the lower income tier, which makes you a higher priority for funding,” he said.

Medora also meets the readiness to proceed requirement.

“You have two things going for you there,” Craig said. “Your preliminary engineering report is complete. You’ve got that documentation on that. And secondly is the fact that you are essentially your current system, so you don’t have a lot of new land to acquire. It’s within previously disturbed areas.”

The town meets the environmental health or safety component with marginal areas of concern on Indiana Department of Environmental Management reports.

“You won’t score as high as someone who is under an agreed order, but you do have some documentation there that’s going to help your cause,” Craig said.

Medora won’t score high on the regional component since the system isn’t hooked to another one or doesn’t have another one hooked to it.

“We tell that story, as well, that you just don’t have that as an option right now, but it is the smallest scoring criteria of the four,” Craig said.

The state will award the grants in August.

“If you’re selected, you will get an offer back from the state. It could be 100% of what you asked for. It might be part of what you asked for,” Craig said. “That’s when you would get your scalpel out, if you will, if we don’t get the entire project funded and you want to phase it or make cuts or if you might want to do the whole thing and not finance the rest of it or have to finance the rest of it.”

Craig said he anticipates the state will make some 100% awards to smaller communities that are low income and high need.

“So with that, we’re suggesting you apply for as much grant as possible,” he said. “Then if they come back and ask for your finance part of this, then … you would look at how to put those pieces of the puzzle together.”

The funds will be provided in the form of co-funded grants to communities. Funds on hand, a community’s allocation of their own American Rescue Plan Act funds or a State Revolving Fund loan may be used to co-fund an awarded SWIF grant.

Medora is supposed to receive $150,000 in ARP money.

Craig said the Indiana Office of Community and Rural Affairs is suspending infrastructure grant applications for the next couple of rounds because of the avenues now available through SWIF and Indiana Finance Authority. OCRA is prioritizing some of its money into community facilities projects, he said.

“But there might be more infrastructure money coming if Washington, D.C., continues to pass things down to where you’ll have these opportunities,” Craig told the council.

If Medora receives funding, around $1.3 million of the project would be for the sewer laterals.

Steve Ingle, who manages the town’s sewer and water departments, said the system comprised of clay pipes has lived its life.

Since it’s a sanitary sewer, nothing should be going in there except sanitation out of people’s home and businesses, Craig said. Clay tile has a lot of cracks the older it gets, and that allows more groundwater to get in, he said.

Ingle said some sections of the system are clogged because of tree roots. Plus, he said people have sump pumps and downspouts hooked to the sewer, and they shouldn’t be.

Craig said Ingle told him the drinking water system is in the best shape, but a lot of work is needed on the wastewater and stormwater sides.

With Medora being in a low area, Craig said there are problems with inflow and infiltration and water getting into the system that shouldn’t be there. That should be taken care of through stormwater management and separating parts of the system.

“What does it hurt to apply for this?” council President Jerry Ault said.

“Might as well apply and see what we get. You’ve got to start somewhere,” Councilman Jim Davers said.

“Cross our fingers and hope we get anything,” Ault said. “Might as well try to get our piece of the pie.”

Craig agreed.

“Kind of like the lottery,” he said. “You’ve got to play to win.”