Agenda - 10-20-2009 - 6c - Laserfiche WebLink

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3 EPA grants from Congressional appropriations in 2003 and 2005 amount to $1.4 million. Three percent (3%) of that amount is released to DENR to assist in the administration of the grant. The grant is yet to be secured pending the full funding program for the entire project. Tonight's agenda item, if approved, will act as the complement to the EPA 55% grant match in the form of a commitment to pursue NC State Revolving Loan Funds (SRF). These funds in the amount of approximately $3.5 million can act as a local match. Debt capacity schedules previously provided by staff with the Capital Investment Plan have anticipated the issuance of $1.9 million in additional Alternative Financing for this project. The Efland Sewer Project in the County Capital Project fund has approximately $900,000 remaining for Central Efland sewer improvements. In addition, the County has spent over $400,000 on the design (with CJT) of sewer facilities and Gravelly Hill Middle School water system in the Efland-Buckhorn area. These monies would not be sufficient to create a 45% match nor would they be sufficient to complete the total project of $4.7 million. The County would need to pursue other funding sources as noted by former County Engineer Paul Thames in the March 2008 presentation to the BOCC. The $900,000 will be necessary to conduct and/or purchase/negotiate easements, encroachment agreements and acquisitions of land for a sewage lift station if necessary. In addition, this County money will be suggested to be used for an upgrade to the primary Efland sewer system lift station at McGowan Creek which is 20 years old. Design for this upgrade has not been agreed upon nor authorized nor is suggested to be part of the EPA SPAP/SRF project. The peer engineering review suggested in this abstract recommendation will assist in developing strategies for the lift station upgrade. Attachment 4 is a spreadsheet that illustrates construction costs and how costs were required to be shown in the project's Preliminary Engineering Report (PER). As a related note, conversations with EPA and DENR officials suggested that grant monies be focused. on construction line items and not design and procedural support (i.e. easements, acquisitions, etc. ). FINANCIAL IMPACT: State Revolving Fund loans are not due until project completion which is anticipated in late 2012 or 2013. The existing loan interest rate is presently 2.5% and the maximum term of the loan is 20 years. The payment would be approximately $235,000 a year based on repayment over 20 years with level debt service payments. Debt service capacity is anticipated to be in a better position in these ensuing years. The debt service payments on the loan would be approximately $70,000 greater than the debt service projected in the debt capacity schedules for the additional $1.9 million in Alternative Financing. RECOMMENDATION(S): The Manager recommends the Board: 1. Authorize the Manager to apply for NC SRF to complete: a. Central Efland Sewer b. North Buckhorn Sewer In the amount of $3.5 million; 2. Authorize the County Attorney and Planning Department to pursue acquisition of easements and/or right-of-way encroachment for Central Efland and North Buckhorn; and 3. Authorize the Planning Department to hire a peer review engineering firm not to exceed $10,000 for the Central Efland and North Buckhorn projects to examine all alternatives and design standards for these projects.