Norwich – The City Council on Wednesday will hold public hearings and potential votes on ordinances for two Norwich Public Utilities projects, including a $19.9 million water system upgrade that would extend a water line into Sprague and qualify NPU for higher levels of grants through the state Clean Water Fund.

The water system bond ordinance includes $16.7 million in upgrades to the city's water system to address state-mandated water quality improvements and a $3.2 million water line to provide the Baltic section of Sprague with a needed backup water supply during emergencies. The $19.9 million package would not affect NPU water rates until 2020 and would result in an initial 4 percent increase at that time, NPU General Manager John Bilda said.

The second ordinance covers a proposed $2.4 million sewer project to separate combined sewer and storm drains in the East Side section of the city, including Smith Avenue, Mowry Avenue and Donahue Drive. The combined sewer-rainwater system causes raw sewage pollution into local rivers and streams during heavy rains, when the system overflows. NPU has been eliminating combined systems over time throughout the city.

The City Council public hearing will be held at the start of the 7:30 p.m. meeting in Council Chambers at City Hall.

The proposed improvements to the NPU water system have been in the utility's long-range plan, Bilda said. But the project had to be moved up in priority after the state Department of Public Health tightened water quality standards, leaving NPU on the borderline of meeting or falling short of the new state standard.

The utility entered into a consent agreement with state regulators calling for filtration and water circulation upgrades at the Stony Brook and Deep River reservoirs and the Occum water tank, along with replacement or rehabilitation of water mains, costing a combined total of $16.7 million.

Since the state also is pushing for regional water system solutions to problems, the Department of Public Health sweetened Norwich's financing package with a proposal that NPU extend an emergency water system line into the Baltic section of Sprague to provide a much-needed backup water supply.

The $3.2 million Sprague Emergency Interconnection included in the $19.9 million ordinance would be funded through a 50 percent Clean Water Fund grant, and a 50 percent low-interest loan through the program. If Norwich agrees to the project, NPU would receive a 30 percent grant and 70 percent loan package on the other $16.7 million upgrades.

Without the regional component, Bilda said, Norwich would receive only an 8 percent grant and would need to finance 92 percent by loan.

Norwich would build and own the Sprague water line, and would sell water to Baltic if the system is used in the future, Bilda said.

Sprague First Selectwoman Cathy Osten, also the Democratic state senator for Norwich and Sprague, said NPU approached Sprague with the emergency water line proposal as part of the regional solution, and the town agreed to it. The line would run 10,000 linear feet along Route 97 from the Canterbury Turnpike junction in Occum to Main Street in Baltic.

In 2004, Sprague suffered a water main break in Baltic that caused long-term damage to the well that supplies the village water system, Osten said. By 2007, silt had built up in the system, leaving the town with an estimated 10-day supply of water. Emergency measures, including another well, were constructed, but the system still has no reliable backup water supply. The new Norwich water line would solve that problem.

“We've since stabilized, but we have no backup,” Osten said. “This wouldn't give us any water currently, but this helps out if we had a need.”

c.bessette@theday.com