HART - Tuesday, Oct. 13, the Hart City Council voted unanimously to approve a $24,000 proposal from the city’s engineering firm, Prein & Newhof, to complete required preliminary engineering, environmental reports and application assistance for a USDA Rural Development financing opportunities application. If received, the USDA financing would fund in part an estimated $18 million for necessary water, sewer and related infrastructure improvements.
In an effort to make up financial ground and build up balances in the city’s water and sewer funds, a graduated schedule of fee increases was approved and has been implemented over the past several years. Higher sewer rates were put into place beginning July 2023, and higher water rates started in July 2026.
The council’s approval that evening does not authorize the project’s construction or financing, but is a required step before the project can move any further forward.
In a work session prior to the city’s regular council meeting, Barbara Marczak and Matthew Hulst of Prein & Newhof outlined the city’s capital improvement plans/projects to date, providing information and suggestions for the best way to fund those projects. The city has completed the necessary sewer and water asset management plans (a 2020 initial sewer plan and a 2026 updated water plan), developed a long-term capital improvement plan, and is now ready to move forward with these plans. The city has a reported 20 miles of water main, 10 miles of which are estimated to be 80-plus years old or older.
The proposed project includes the replacement of 70 lead service lines per year for approximately five years. The lines to be replaced are located in areas with old, smaller-diameter water mains, poor sewers and areas with known upcoming road funding: Orchard Street from Johnson Street to Main Street; Main Street from Courtland Street to Hart Street, Hart Street to Oceana Drive; and State Street from Polk Road to Lincoln Street.
“Replacement of all city lines will be forever ongoing,” said City Manager Nichole Kleiner in a follow-up interview. “The projects we're proposing over the next five years should have been done 20 years ago.”
In addition, the project would include replacement of what is known as the “Flood Well," as well as the repainting and minor repair of the “Old City Tank."
The anticipated schedule for the project technically began last Tuesday, with the approval to pay Prein & Newhof for the engineering work and USDA application services. Other important anticipated dates include a USDA review and approval by April 1, 2027; open bidding in January of 2028; with construction expected to begin in November of 2029. The city has until 2037 to complete the required lead service line replacements.
At present, finding a way to pay for this long overdue project is the city’s main focus. Prein & Newhof’s presentation indicated the money for the project would come from the following sources: $9.45 million from a USDA Rural Development water bond; $3.45 million from a USDA Rural Development sewer bond; $2.45 million of MDOT State Street turnover monies; a TIFA Bond (amount yet to be voted on); and $750,000 from the city’s road fund.
Andy Campbell of Bendzinski & Co., the city’s financial planner, provided the council with various funding options and scenarios, ultimately recommending the council allow Prein & Newhof to pursue USDA grant funding. “The downside is time. It takes 18 months to get through, but financially it's the better option. There is more red tape, which is a pain, but it comes down to the interest rates,” said Campbell.
If the funding comes through, the city would have certain requirements that would have to be met, including adhering to the Build America, Buy America Act, allowing open bidding, and being required to take the lowest qualified bid. Campbell also noted that the USDA manages their funds using a “draw system," meaning they hold the funds until they are needed. In exchange, the city wouldn’t be paying interest on any funds they may ultimately be awarded.
In other city business, the council awarded the diesel plant roof replacement and insulation project to Versatile Roofing Systems, Inc., in the amount of $40,200. They also awarded the South Plum Street road alignment, part of the Safe Routes to School project, to Wadel Stabilization, Inc., based on its $21,375 base bid and submitted unit pricing. The estimated start and end date for that project is spring 2027.
In her city manager’s report, Nichole Kleiner informed the council she was part of a very productive Hart Historic Preservation Group Community Engagement meeting on Sept. 28 at the Hart Historic District. A new board has been formed, and they have held their first meeting. The newly established board plans to meet bi-monthly and to host community visioning events in the opposite months, where they hope to gather ideas, suggestions and volunteers for a reimagined historic district.
