Agenda - 02-10-1998 - 2 - Laserfiche WebLink

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Insofar as grant funding is concerned, the most likely existing source of funds is the High Unit Cost Grants in the State Clean Water Revolving Loan Fund program. The County's 1996 CDBG infrastructure grant application will be reconsidered in early 1998, but I am advised by Tara Fikes, the Director of OC Housing and Community Development, that the County's prospects of obtain these grant funds aze poor. The Clean Water Trust Fund grants, federal rural development and economic assistance grants and other newly created state grant funds aze also potential sources of funding. Most require that finalized or neazly finalized construction documents be submitted with the grant application as a prerequisite for qualifying for grant funding. In addition to the difficulty a relatively wealthy county such as Orange County has in competing for grants, timing for the grant application and awazd process may also prove to be an impediment. For example, the next application deadline in the High Unit Cost grant cycle is the end of March 1998, for grant awazds in late June or eazly July 1998. Construction documents for any phase of the Efland sewer cannot be ready for submission by that deadline. The alternatives are to apply for the grant at September deadline, which represents the lowest funding availability segment of the grant cycle, or to apply in March 1999 when the maximum funding is again available. The Mazch 1999 deadline may not be as much of a delay as it might first appear. For example, a tentative schedule for building only the sewer for the central Efland azea should be something nearly like the following example: 12/15/97 County creates and sends out RFP's (requests for proposals) to engineering consultants 1/15/98 to 2/1/98 Proposal evaluation team receives and evaluates proposals, conducts interviews, makes recommendation to BOCC 2/1/98 to 3/1/98 County staffnegotiates consultant contract, BOCC awazds contract, notice to proceed issued 3/1/98 to 11/1/98 Construction and easement documents prepared, construction project advertised 1/1/99 Bids opened 3/1/99 Construction contract finalized and executed, notice to proceed issued 3/1/99 to 5/1/2000 Project constructed and becomes operational It is possible that the County would be advised if it would be awazded grant funding by late May. This could represent a three month delay in issuing the construction Notice to Proceed. If the BOCC so desired, some delays could be mimm;~ed by bidding various project phases as add alternates to be constructed if and when funds, through either agrant, aloan/assessment process or some combination of the two became available. It might also be possible to plan to build additional phases using only bond and assessment funding with grant funding, if it became available, used as a windfall which would reduce the amount which would have to be recovered though sewer assessments. I hope that this information, and any other information that I can provide and that you deem necessary, can be shazed with the BOCC to initiate the policy and decision making process that will define the scope of and financing for the expansion of the Efland sewer system. If I may provide additional information, please advise.