Water Treatment Plant Replacement Costs Rise From $11 Million to $13.2 Million

“Costs have gone up a little, $11 million to $13.2 million.” That is how an increase in the estimated cost for a replacement of the Centennial water treatment plant on Amherst Road in Pelham was described in the minutes of a recent Water Supply Protection Committee meeting. Built in 1981, Centennial is the oldest of three water treatment facilities supplying water to Amherst. The plant is currently not functioning after being hit by lightning in 2018.

At the January 21st Committee meeting, which was attended by Assistant Superintendent of Public Works Amy Rusiecki and Town Engineer Jason Skeels, the updated $13.2 million cost estimate was shared. If correct, this represents a 20% increase from the $11 million estimate from 2019, and a 77% increase from the 2017 estimate of $7.44 million. An email to Rusiecki asking about this latest increase was unreturned by press time.

Town Manager Paul Bockelman, in response to a question on January 25th from Councilor Mandi Jo Hanneke about the Centennial project, seemed to indicate the cost had increased. However, when asked for clarification via email, Bockelman said the Town is “still working to the $11,000,000 budget” and that he will notify the Town Council if it looks like that number has to change. “This project is still in the design phase. When we have finalized everything and have a preliminary approval from the DEP, we will have a better number,” Bockelman said.

In 2019, when Public Works Superintendent Guilford Mooring was asked by Town Councilor Andy Steinberg why the cost of the project had gone up by so much (from $7.44 million to $11 million), Mooring responded, “two years ago we used ballpark figures to come up with the numbers. What you have now is a much more thoroughly fleshed-out project.” (See Indy coverage here and here.) 

In October 2019, the Town Council authorized borrowing $692,000 for the engineering and design work for the project. Some councilors asked for the design to include an exploration of the use of solar energy to reduce future operating expenses and help address town climate goals. According to the recent water committee meeting minutes, “because the plant is in Pelham, the net zero energy bylaw does not apply, and since it is an industrial building, it would be hard to achieve.” The minutes noted that “the Town will do what it can to make the building as energy-efficient as possible, e.g., the roof will support solar panels.”

Capital improvement projects for the water system are paid from the water enterprise fund, which is separate from the town’s operating budget and is supported by water bills. For the first half of this fiscal year, up to December 31st, 2020, water fund revenues were down 11% compared to the same time last year.

To cover the cost of replacing the Centennial plant at the $11 million estimate, water rates were projected to rise from $3.90 (per 100 cu ft) in 2020 to $5.46 by 2026 (Water rate history can be seen here.) At the current rate of $4.20, the average water bill is $504 per year, lower than the state average of $595 and Northampton’s $633. Debt service on the $11 million construction project had been estimated to begin at more than $900,000 annually. At a cost of $13.2 million, debt service may exceed $1 million per year, necessitating further increases to water rates.