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A.2 CENTRAL EFLAND — PHASE 2 NORTHERN BUCKHORN STATE REVOLVING LOAN <br /> SEWER FUNDING <br /> PURPOSE: To ratify a Resolution reiterating the Board's decision from June 21, 2011, <br /> approving the offer of a State Revolving Fund (SRF) Loan to fund the construction of the <br /> Efland and North Buckhorn sewer extensions. <br /> BACKGROUND: The BOCC was previously presented with the opportunity to accept a SRF <br /> loan in the amount of $3,500,000 for the construction of sewer improvements in the Efland and <br /> North Buckhorn communities. The loan is from the North Carolina Department of Environment <br /> and Natural Resources. The BOCC approved this loan offer on June 21, 2011. Since that <br /> time, staff has been notified that in order to formally accept the loan, the loan approval must <br /> take the form of a Resolution. <br /> Attachment 2 is a Resolution, dated June 21, 2011, that states the BOCC's acceptance of the <br /> SRF loan and conditions. Staff requests the BOCC ratify this Resolution to formally accept the <br /> SRF loan on Project No. CS370884-01, STAG Project No. XP95456411-01. <br /> FINANCIAL IMPACT: As noted in the abstract from the Board's June 21, 2011 meeting, there <br /> is a $70,000, or 2%, closing fee for the SRF loan that will be due in September. The payments <br /> for the SRF loan are anticipated to begin approximately in June 2013, or six months after <br /> construction is complete. The annual loan payments would be approximately $225,000. Both <br /> the closing fee and the debt service payments are included in the County's Capital Investment <br /> Plan. <br /> A-3 BUDGET AMENDMENT # 1-A <br /> Total estimated project costs included in the Capital Investment Plan were $4,727,101, which <br /> did not include the $475,000 planned for the McGowan Creek Pump Station planning for <br /> FY2012-13. Since receiving very aggressive bids for the Central Efland/North Buckhorn <br /> Project, both projects can be combined with the McGowan Creek Pump Station Project with an <br /> overall project cost of $4,848,400. Budget Amendment #1-A below provides details of the <br /> proposed budget. <br /> Central Efland and Northern Buckhorn Sewer Project: <br /> Project#30042 <br />