Agenda - 05-01-2008-5a - 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 $4.32 million compared to currently available project revenues totaling $2.5 million. This sum exceeds earlier estimates and the project budget by more than $1.82 million. On March 12, 2008, the County Manager shared tentative County debt issuance plans with the Board at their budget work session. Included in those plans was a proposal to include the additional funding for Efland Sewer in a future debt issuance. The Board may also want to consider other project construction alternatives: 1. 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 2. Apply fora 10-year low interest loan from the State Revolving Loan and Grant Fund (these funds, available at a 4% interest rate would be repaid over a ten year period. The costs (or some portion) of repaying this loan could be included in the sewer rate base over the ten-year loan period; or 3. Seek additional funding through the CDBG process (low probability of success) and/or the Rural Communities Assistance Program (moderate probability of success) funding process; or 4. Phase system construction by breaking the central Efland portion of the system down into an initial phase or core (pumping station and some portion of the collection lines and later phase(s) or optional components (remaining portions of the collection lines). The County may also 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. As the design for the full project has been completed, it should be possible to modify the project documents as necessary to 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. 5. 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 BOCC consensus that emerged from its discussion and public comment at opening of the public hearing at its April 1, 2008 meeting appeared to be to fund and construct the entirety of project as it is currently conceived with the budget shortFall financed by a planned debt issuance, potentially supplemented by grant funds should any be found to be available. McGowan Creek Pumping Station Update Another potential cost element that could be added to the sewer expansion project is upgrading the equipment in the existing (as of the original Efland sewer project) McGowan Creek pumping station. According to OWASA's standards for replacing wastewater pumping station related equipment (pumps, motor controls, standby power generators, etc.), the useful lifespan of this equipment is in the 15-20 year range. The equipment at the Efland system's McGowan Creek pumping station will be twenty years old as of this summer.. Replacement of this equipment is scheduled in the Efland Sewer System CIP (system operating permit-required) for FY 2010-11.