NEWPORT-A one-half million dollar grant from the federal government will be used to extend water lines and tie in customers to the water system in Point Pleasant, it was announced Tuesday, Nov. 17.

The announcement was made at the monthly board meeting of Newport Utilities.

The $500,000 Community Development Block Grant (CDBG), and a Newport Utilities matching grant of $61,000, will likely result in about 65 customers in the Point Pleasant community signing up for water, said Ron Fugatt, NU General Manager.

The project is expected to be completed by the end of 2010.

In other action, the NU board:

• Accepted the lowest bid of $58,531 from Papp to build steel poles to support distribution lines at the new Wilton Springs substation;

• Announced an agreement with Dillard Smith Construction Company in the case of emergency work needed done, such as a storm that knocks electrical lines down;

• Was informed that NU would present an EPA "streamlined" ordinance to the City of Newport that includes tougher restrictions on the amount of heavy metals in wastewater that can be discharged;

• Learned that two pump stations will be relocated due to road construction on Highway 411;

• Was told that health insurance rates for the 2010 calendar year for employees will not go up (for the second year in a row), thanks to no catastrophic illnesses incurred by employees and the fact that they "are using their benefits wisely," Fugatt said; and

• Recognized two employees -- Carrol Profitt, manager of the wastewater system, and Linten Atkins, superintendent of the water treatment plant - for outstanding service.