SANDPOINT — City councilors voted unanimously Wednesday to submit a letter of interest seeking $130 million of state money to fund the construction of a new wastewater treatment plant.

If successful, Sandpoint would receive some or all of the requested amount as a below-market-rate loan with a potential for principal forgiveness. 

The city has recently emphasized the importance of rehabilitating its aging wastewater plant that officials say has reached the end of its effective lifespan. Sandpoint formally illustrated the need in a 2019 facility plan and contracted with civil engineering firm Keller Associates in August 2024 to create a preliminary engineering report for an improved treatment center. 

Kyle Meschko, Keller Associates engineer and project manager, said letters of interest help Idaho Department of Environmental Quality understand how to distribute funds. 

“It's really painting the picture that there's a need here and that the city is interested in trying to solve this need,” he said. 

During the meeting, councilors and city staff examined strategies to improve the application’s competitiveness, and councilors voted to mark a box on the form that indicated the city would evaluate becoming an Environmental Protection Agency green power partner — a program in which organizations can voluntarily commit to using renewable energy. 

Councilor Kyle Schreiber noted that the designation doesn’t require any obligation to ultimately join the program: “It seems like a pretty low bar to make our application more competitive,” he said. 

Councilors also examined other opportunities to indicate interest in environmentally friendly design elements that may help the application’s competitiveness, but Meschko emphasized the risks of added technologies.

“As civil engineers protecting the environment, we would love to do the best thing possible with technology, with infrastructure,” he said. “The reality of it is we are all bound by cost,” he added. “It's a tough balancing act.” 

Meschko also warned that the state funding process is “extremely competitive.” Sandpoint applied for the same program last year but failed to receive funding, ranking No. 29 out of 73 candidates. According to Meschko, only three applicants were funded. 

Meschko noted that other funding sources exist and expressed optimism for the prospect of securing U.S. Department of Agriculture Rural Development funds in spring: “I'm actually much more bullish with their funding avenue.” 

After councilors voted to submit the letter of interest, Meschko updated attendees on the status of Keller Associates’ engineering report. 

“The project is proceeding as scoped and planned. We are making really good progress,” he said. 

Meschko shared a concept layout for improvements to the facility and gave an up-to-date estimate on the ultimate cost of a new wastewater plant: $129,433,000. 

The figure is a sharp uptick from the $60-70 million forecasted in the 2019 facility plan, and Meschko attributed the increase to inflation, industry trends, a geotechnical investigation that found poor soil conditions at the site and the state’s population boom. 

“Idaho has been one of the fastest growing states, and as a result, there's a lot of construction ongoing that stretches the contractors’ availability,” said Meschko. 

He emphasized that while he expects the preliminary report to be ready by the end of spring, progress toward design and construction is dependent on funding procurement, including the outcome of a bond ballot measure Sandpoint has expressed interest in bringing to voters next fall. 

“We are doing our best to plan for contingencies and be able to react to whatever the funding success is,” said Mayor Jeremy Grimm. 

As the wastewater project moves forward, city staff intend to conduct public outreach and facilitate community input. 

Public Works Director Holly Ellis said Sandpoint will begin hosting biweekly open houses and intends to update the city’s website to provide detailed information about the project.

“We really have to bring everybody up to speed,” she said.