Lycoming County Water and Sewer Authority board members Wednesday night approved a $1.5 million PennWorks grant from the state Department of Community and Economic Development.
If approved, the grant would be used for the construction of two 300,000-gallon water storage tanks and installation of 5,400 feet of water main lines that would be used for commercial and industrial businesses.
One tank would be elevated, while the second would be at ground level, according to the application.
The total cost of the project is estimated at $2.7 million, according to Christine M. Weigle, authority executive director.
Lycoming County commissioners have committed $370,000 to the project from Act 13 natural gas drilling funding, she said.
The grant application, which would be acted upon in September, Weigle said, was prepared in conjunction with the county's planning and community development department.
Board members also approved final construction bond payments for the authority's Montoursville Regional Sewer System wastewater treatment upgrade project and new administration building project.
John C. Brickhart, authority engineering services manager, said both projects came in well within budgetary estimates. The sewer system upgrade project's final cost was $9.23 million -just about 1 percent more than the original contract amount.
The administration building project totaled $3.86 million - or .14 percent under the original contract amount.
Weigle thanked the authority's staff, engineers and contractors for keeping costs contained.
"It was a complete team effort. They kept the budget in mind," said Jan. V. Ransdorf, board vice chairman.
Final payment for a water line extension in the Fairfield Road area also was approved.
The final tab for that project was $1.072 million.
Weigle also reported that a $250,000 loan with Woodlands Bank is being secured for the Limestone Township Municipal Water Authority for compliance-related projects.
Board members also approved rental rates for outside organizations to use the authority's new board and conference room at its new facilities at 380 Old Cement Road, Montoursville.