LAKE STATION | A groundbreaking ceremony will be held at 10 a.m. Monday to mark the start of the first phase of the city's water improvement project, Mayor Keith Soderquist said.
The ceremony will be held at 2898 Union St., on an empty lot where the future treatment plant will be built.
Construction on the first phase will be handled by Thieneman Construction Inc., of Westfield. The Board of Works last year awarded a $7.7 million contract to Thieneman, the lowest of four bids.
Phase one improvements will include the new water supply wells, a new groundwater treatment plant and water main improvements, Soderquist said.
Most of the work is being done in the first phase, Cara Boyles said.
Boyles is project manager for American Structurepoint, the Indianapolis/South Bend company hired in 2008 by city officials to study and make recommendations on Lake Station's aging water system.
The anticipated completion of the first phase of the water improvement project is July 1, 2014, Boyles said.
To pay for the improvements, water rates in Lake Station will go up to $21.42 per month the first year and $23.71 the following year, Soderquist said.
A third and final increase of another $3 a month is proposed but not certain at this time, Soderquist said.
The city received approval for an $11 million low-interest loan through the Indiana Drinking Water State Revolving Fund to pay for the water improvement project, Boyles said.
The Board of Works recently held off awarding bids for the second phase of the project due to some questions, Soderquist said.