The Redevelopment Authority began assisting the City of Johnstown in 1986 with its planned upgrade to the Dornick Point (Greater Johnstown) Wastewater Treatment Plant. The plant had been providing primary treatment (separation of solids) since its construction in 1961. The United States EPA had ordered the upgrade of the plant in 1976, however the project was indefinitely delayed following the catastrophic flood of July 19-20, 1977.

The City negotiated a consent decree with the USEPA in Federal Court in late 1987. The order called for a nine-month design period and a 24-month construction period. The City delegated financing and construction to the Johnstown Redevelopment Authority. PENNVEST, the Pennsylvania Infrastructure Investment Authority, loaned $30 million to the City for the project. During the first nine months the condition of the existing collection system and treatment alternatives were evaluated and a design selected. The design was submitted and approved by the Pennsylvania DEP and construction began.

Beginning in 1990, the Johnstown Redevelopment Authority maintained all oversight and management of the operations of the City Bureau of Sewage. Plant construction was completed 1992 and the new plant was placed online.

From the beginning, problems in the system were discovered. During the same time period as the construction, over $7 million of the $30 million was spent in upgrading the main interceptor transmission lines through the City.

During the construction project additional problems were identified in the operational aspects of the system. Unidentified restaurants in the downtown area had made a practice of dumping cooking grease into the sanitary sewers to such an extent that the main conveyance siphons (3 separate pipes) under the Stonycreek River were blocked with plugs of grease more than 20 feet in length. A new ordinance and some work with the City plumbing inspector curbed this problem.

A large amount of billing delinquencies had also accrued in the Department of Sewage. The Authority instituted a water shut-off program in conjunction with a new policy to secure payment agreements. Since its institution, the amount of current delinquencies has dropped and several hundred thousands of dollars have been collected from the older delinquent accounts.