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