Action 2.
Special Board of Supervisors Meeting
Board of Supervisors
- Meeting Date:
- 07/12/2011
- Title:
- BDI Water Projects
- Submitted By:
- Katie Howard, Board of Supervisors
- Department:
- Board of Supervisors
Presentation:
No A/V Presentation
Recommendation:
Document Signatures:
# of ORIGINALS
Submitted for Signature:
Submitted for Signature:
NAME
of PRESENTER:
of PRESENTER:
LH Hamilton
TITLE
of PRESENTER:
of PRESENTER:
Project Manager
Mandated Function?:
Source of Mandate
or Basis for Support?:
or Basis for Support?:
Agenda Item Text:
Authorize an application be made to the U.S. Department of Agriculture (USDA) Community Facilities Loan Program to finance the engineering and construction for the Bisbee/Douglas International Airport (BDI) water system improvement project.
Background:
As the Board will recall, the County and Department of Corrections (DOC) met and agreed to move forward on a Preliminary Engineering Report (PER) to determine the scope of the project and assign probable costs for the engineering and construction. With the PER in hand, staff has met with DOC Director, Charles Ryan, and his staff on several occasions. Our final meeting occurred June 16, 2011 and final scope was set. It included the following:
1. A ground storage tank (500,000 gallon) and booster pump station.
2. A new perimeter transmission line which eliminates the old transmission line network.
3. Provides new motor controls and relays and upgrades the current chlorination system for greater security and safety.
The estimated cost of engineering and construction for these elements is $3 million. This estimate is $2 million lower than the original estimate.
1. A ground storage tank (500,000 gallon) and booster pump station.
2. A new perimeter transmission line which eliminates the old transmission line network.
3. Provides new motor controls and relays and upgrades the current chlorination system for greater security and safety.
The estimated cost of engineering and construction for these elements is $3 million. This estimate is $2 million lower than the original estimate.
Department's Next Steps (if approved):
The loan application will be submitted to USDA.
Impact of NOT Approving/Alternatives:
The County will continue to operate a 70 year old water system and the Arizona State Prison, Douglas will not have adequate fire protection.
To BOS Staff: Document Disposition/Follow-Up:
n/a
Fiscal Impact
- Fiscal Year:
- One-time Fixed Costs? ($$$):
- Ongoing Costs? ($$$):
- County Match Required? ($$$):
- A-87 Overhead Amt? (Co. Cost Allocation $$$):
- Source of Funding?:
Fiscal Impact & Funding Sources (if known):
It appears that USDA is the best funding mechanism for the project is under the Community Facilities Loan Program. Interest rates for this loan program are currently at 4.75%.
The estimate for engineering and construction is $3 million as currently scoped. The PER set a water usage rate of 87% for DOC and 13% for the County of all water pumped. Principal and interest payments to USDA would be $205,248 per year. Using the 87/13 formula, DOC would be responsible for $178,566 and the County would be responsible for $26,682 on an annual basis. DOC is currently paying $1.43 per 1,000 gallons. This rate would need to increase an additional $1.52 per 1,000 gallons in order to meet their financial obligation. The $2.95 is the basic increase. The final rate will be determined by USDA based on what their requirement will be for repair and replacement funding.
The estimate for engineering and construction is $3 million as currently scoped. The PER set a water usage rate of 87% for DOC and 13% for the County of all water pumped. Principal and interest payments to USDA would be $205,248 per year. Using the 87/13 formula, DOC would be responsible for $178,566 and the County would be responsible for $26,682 on an annual basis. DOC is currently paying $1.43 per 1,000 gallons. This rate would need to increase an additional $1.52 per 1,000 gallons in order to meet their financial obligation. The $2.95 is the basic increase. The final rate will be determined by USDA based on what their requirement will be for repair and replacement funding.