Agenda - 04-01-2008-5a - Laserfiche WebLink

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2 The latest cost estimates for both remaining elements of the project (the central Efland and _ northern Buckhorn communities are contained within the preliminary Engineer's Report) indicate that the total cost of the project will approach approximately $4.3 million. This sum exceeds earlier estimates and the project budget by more than $1.72 million. The projected budget overrun problem is compounded by the fact that the County's existing and allocated debt capacity is at its maximum limits through FY 2009-10. The BOCC has several alternatives to chose from as it addresses the projected funding shortfall, including: • It may elect to reduce the size of the project to fit the budget (this reduction would have to occur in the central Efland portion as the STAG funding was earmarked primarily to address the wastewater system for the Buckhorn Community); or • Should the Board elect to move forward with the entirety of the project as currently planned, the Budget Director has indicated that the County could cover the projected cost overruns by essentially borrowing money from a FY 2010-11 alternative debt financing process to cover costs incurred in the prior fiscal year; or • The Board may have the County apply fora 10-year low interest loan from the State Revolving Loan and Grant Fund (these funds, avail at a 4% interest rate would be repaid over a ten year period. The costs of repaying this loan can be included in the sewer rate base over the ten-year period; or • The County can seeking additional funding through the CDBG (low probability of success) and/or the Rural Communities Assistance Program (moderate probability of success) funding process; or • The County may chose to break the central Efland portion of the system down into core (pumping station and some portion of the collection lines and optional components (remaining portions of the collection lines) and structure the bidding process such that the core system represents the base bid and the optional components become add alternates. Should construction bids come in lower than anticipated, more of the add alternates could be included in the construction project. However, it is critical to take note of the fact that whatever the project scope, either the full project or the portion of the project that is designated as core (prior to add alternates), that is submitted to and approved by the various review and funding agencies, if approved, must be built. As the design for the full project has been completed, it should be possible to modify the project documents as necessary fio break the system down into core and add alternatives and expand the scope of the project to include the add alternatives, should additional funding become available or bids come in lower than expected; or • The County may utilize some combination of the alternatives outlined above as deemed necessary to maximize the project's final service area while minimizing the financial impact on the Efland system's customers or County taxpayers The process involved for State and Tribal Assistance Grant (STAG) funding of the Buckhorn utility project requires that a public hearing be held on the Preliminary Engineering Report. The requirements for that hearing and for reporting the outcome of the hearing are as outlined below under the heading "Public Participation" are in the form and layout as specified by the STAG funding process requirements. The term "selected alternative" as used below for the purpose of "information presented during the public hearing" .means the project layout that would provide gravity sewer service to as much of the northern Buckhorn and central Efland service areas previously delineated and approved by the BOCC. The scope of the project that is ultimately submitted for state and federal review will be that which is selected by a formal BOCC decision based on public input and project funding availability or strategies. Orange County does not