OBSERVER Photo by J.M. Lesinski The former Subway restaurant on Routes 5 and 20 in Hanover, where work on a nearby troublesome water line is slated to begin once funding from the U.S. Department of Agriculture - Rural Development is secured.

HANOVER — Two major town projects have made further development, according to GHD Engineer Paul McGarvey, who updated the town board on the plant improvements at the latest meeting in May.

“Phase 4 of the wastewater treatment plant improvements is wrapping up,” McGarvey began. “We expect to go through start-up on the new equipment that was installed later this month and into June.”

Reserve funds are still available for the project through a town bond, and McGarvey noted that further improvements will be made as well. “As we’ve talked about previously, it does appear there are additional funds remaining in the bond that was passed by the town,” he stated. “That will allow us to bring in portions of the project that had been previously set aside due to cost concerns.”

McGarvey continued on to say, “We have been in contact with the New York State Environmental Facilities Corporation, who has indicated that they will extend the loan to the Town of Hanover for an additional 12 months that will allow us to explore, get prices and potentially move forward with the installation of the Supervisory Control and Data Acquisition (SCADA) component at the wastewater treatment plant.”

Transitioning from the wastewater plant project, McGarvey also announced that funding for the town’s water line project on Routes 5 & 20 was close to being secured. “After a number of months, if not years, that we’ve been pursuing funding. We were notified that the town will likely receive funding from the Rural Development (RD) of the U.S. Department of Agriculture (USDA) for a 38-year loan at 2.5% interest rate.”

McGarvey went on to say, “We moved forward with the supervisor and started that process, we received a letter of intent as well, as followed up by their letter of conditions, which we are going through right now, making sure everything is in line. We hope to finally be moving that project from the design phase to the construction phase.”

Supervisor Todd Johnson then provided an outline of where the project would reach. “This should take us from all the way from Allegany Road all the way down to Buffalo Road,” Johnson stated. “The previous project went all the way to started at Allegany Road and went west up Route 20 to the village line.”

When Deputy Supervisor Louis Pelletter asked about a timeline, McGarvey responded that the bidding process would likely take a few months. “We’ll have to work through some of the final bid documentation to incorporate RD’s requirements,” he noted. “Probably go out to bid in another couple months, go through receiving bids, evaluating them, so probably in the fall we’d be able to have recommendations.”

Town Attorney Jeffrey Passafaro then reminded McGarvey that the project would require a public hearing once things get rolling. “You’re going to give us an amended map plan and report because this will be your 202-B project for this district,” he commented. “You’ll have to hold a public hearing on it and approve the map project, maximum cost, etc.”

Johnson then noted that any public hearing would be contingent only upon a certified letter of approval, not just expectations.

“Last week when I met with Thomas Becker from RD, the biggest thing that he indicated to Mr. Passafaro was that we would have to follow all of our local laws that pertain to special districts, but not to do anything prematurely until we receive their certified congratulations letter. Even though we have been approved…he said do not do anything prematurely. Until we receive that, we will not proceed with any such public hearings.”

Off that note, Johnson went into detail on why the RD loan was a better option than a private town loan. “After further discussion, we did feel as though it would be beneficial to go with the RD loan at 2.5% that is based on 38 years versus if we did go out to market we’d be looking at 3.75 to 4.5% depending on what the current rate would be, and that would be the 30-year note.”

Johnson went on to say, “Interim Municipal Solutions has offered a short-term bond anticipation note (referred to as a BAN), if we did need any up front borrowing to get the project going. By going with the 38-year note with RD versus a 30-year private sector about a $50,000 annual payment versus a $75,000 annual payment, which would not reflect any increases within water rates or any special district taxation.”

For those who weren’t familiar with the locale where construction would occur, Johnson reiterated the final results desired from the project. “So hopefully once and for all we can get that nice beautiful section where the old Subway is, and between the Colony House restaurant fixed and we won’t pay $20,000 in road repairs every time (it breaks).”

The Silver Creek Village Board also approved an amendment proposal to the Village of Silver Creek for professional engineering services associated with the Consent Order/SSES/Sewer Repairs Priority 4 from GHD Consulting Services, with the exception of the flow metering for Oak and Buffalo streets, making the new fee total $187,000.

The vote was 3-2 in favor, with Mayor Jeffrey Hornburg casting the tie-breaking vote. Trustees John Burt and Stephen Romanik voted no, while Trustees Warren Kelly and Marv Cummings voted yes at the village’s May 6 board meeting.