Transcript Sewage Collection and Treatment System

Freeland Water and
Sewer District
Sewer and Water
Reuse Project
Public Meeting #3
April 5, 2011
and associated firms
MEETING AGENDA AND PURPOSE
Agenda
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6:00 pm – Open House Welcome
6:15 pm – Introductory Comments by District
6:30 pm – Project Status
7:00 pm – Project Costs and Funding
7:30 pm – Q&A
8:00 pm - Adjourn
Purpose
• For Community Members to get answers to
questions regarding:
– Project Status
– Why the project is needed
– Project Cost and Financing
– Next Steps
PROJECT REVIEW:
Where are we on this project and how did we get here?
Project Review
• What water quality issues?
• Why does the Freeland Sub-Area Plan require
sewers?
• What is the status of the sewer project?
DOE Water Quality Assessment
DOE Water Quality Assessment
Holmes Harbor SPD
DOH Shellfish Safety Closures
Media
• NRDC Report
• 20% Samples
Contaminated
Project Review
• Why does the Freeland Sub-Area Plan require
sewers?
Project Review
• What is the status of the sewer project?
Project Complexities
Freeland Sewer and Water Reuse Project:
Activities Related to Pre-design, Design, Construction, and Operation
Pre-Design Phase
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Complete easement acquisition to 80 acres
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Pre-Design Studies:
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Complete hydrogeology study of 80 acres and drainage basin (HWA)
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Survey for right-of-way, treatment plant site and reuse site.
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Develop and acquire STEP system access, pipeline, and side sewer
easements
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Treatment plant and reuse site geotechnical investigation and report.
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Suitability (incl. locating/documenting) of existing on-site systems for
STEP conversion
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Secure potable water supply to treatment plant site
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Electrical supply coordination with PSE for STEP systems
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High voltage 3-phase electrical supply coordination with PSE for
treatment plant site and reclaimed water site
Detailed Design for Construction
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Design & bid phase contract amendment; assume scope & budget
negotiations.
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Design and bid for membrane system equipment procurement.
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Detailed design of plans, specifications & estimate for construction
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Construction Management and Quality Control Plan required for
Ecology Approval.
Permits, SEPA, Review & Approval of Construction Documents
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Project action SEPA review (by District)
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Right of way plans & permits to construct in WSDOT & Island Co.
right of way
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Washington State Department of Ecology plan review and approval
as lead agency
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Washington State Department of Health (WDOH) review and
approval
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Washington State Department of Archaeology and Historic
Preservation
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Island County permits
Bid Phase
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Call For Bids with 30 day bid period
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Open and evaluate Bids, recommend for award
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Notice to proceed with construction.
Construction and Startup Phase
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Construction (potentially multiple contracts)
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Reclaimed water treatment plant
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STEP collection & conveyance system
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On-site system modifications/replacements converting to STEP
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Effluent reuse system
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Conveyance pipeline
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Effluent reuse site construction.
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Startup and testing
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Project on line and operational
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Project completion approvals—WDOE & WDOH
Operation Phase Planning and Policies
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Operations and Maintenance Plan drafted during
design/construction phase
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Administrative and maintenance policies
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STEP system access and maintenance policies
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Reclaimed water use policy
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Connection and developer extension policies
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Cross Connection policy
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Sewer System Rate Structure and Policy
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LID Assessment and Collection
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Debt Service
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Rates & billing
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Low income, deferred assessment policy/program
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On-site site STEP system maintenance program
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Emergency callout
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Testing reporting and compliance monitoring to WDOE per NPDES
permit
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Hire & train administrative, operations & maintenance staff.
Complete before system startup.
Ecology Water Quality Draft
Fund Offer
• #5 Ranked
Project on
Draft Offer
List
• $3.5 M
Request
for Design
Continued Conversations
• Public information & outreach
• With our funding partners
• Value Engineering process
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– Review current plan and determine most cost effective approach
– Refine/re-examine some program decisions
– District hires independent engineering team of experts
– Engage key representatives of community in process
Costs involved, need Agency buy-in
Possible plan revision and approvals
No guaranteed outcome
Will impact schedule
Will require more planning costs
FUNDING
The Funding Dance –
Government/Community Partnership
• Government investment
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Appropriations from federal and state elected officials
Grants and low-interest loans from funding programs
Require project to be approved, designed, constructed & maintained
Grant/loan programs are not willing to contribute further without
LID formation (the dance)
• Community investment
– Local Improvement District (LID) formation
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mechanism for repayment of debt
allows FWSD to attract further grants to bring the sewer cost down
is one step in a long process
construction requires a separate discrete series of decisions
– Connection charges
• not a reliable source of payment/repayment for a new system
– Monthly rates
Sewer Funding Plan
Capital Funding
State/Federal Appropriations
State/Federal Grants & Loans
Interim: Bank Line of Credit
Debt Repayment /
User Recovery
LID Assessments,
Island County Rural Sales Tax, $100k/yr
O&M / Admin /
Short-Lived Assets
Monthly Rates
Goal:
Most Advantageous
$$ for Ratepayers
Project Cost
• Please refer to project cost sheet available on FWSD website
Sample: How LID payment works over 15 years
SAMPLE LID ASSESSMENT REPAYMENT SCHEDULE
ASSUMPTIONS:
USDA-RD rate 3.25% as of Jul 1, 2010
ANNUAL PAYMENTS
15
INTEREST RATE
3.75% includes 0.5% for administration
Without Grant
With Add'l $10M Grant
No Existing
Home
LID ASSESSMENT:
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
YEAR 6
YEAR 7
YEAR 8
YEAR 9
YEAR 10
YEAR 11
YEAR 12
YEAR 13
YEAR 14
YEAR 15
TOTAL PAYMENTS
$19,100
1,990
1,942
1,894
1,846
1,799
1,751
1,703
1,655
1,608
1,560
1,512
1,464
1,417
1,369
1,321
$24,830
With Existing
Home
$29,600
3,083
3,009
2,935
2,861
2,787
2,713
2,639
2,565
2,491
2,417
2,343
2,269
2,195
2,121
2,047
$38,480
No Existing
Home
$11,300
1,177
1,149
1,121
1,092
1,064
1,036
1,008
979
951
923
895
866
838
810
782
$14,690
With Existing
Home
$21,800
2,271
2,216
2,162
2,107
2,053
1,998
1,944
1,889
1,835
1,780
1,726
1,671
1,617
1,562
1,508
$28,340
Prepayment
$0
$0
Caution: This is a sample comparison and is not intended to indicate what an actual assessment or interest rate
may be. This is for discussion and amounts and terms will be determined at final financing.
Low-Income Assistance
• CDBG grant for low-income property owner
assistance for sewer capital cost
– FWSD/Island County to apply
• State program senior/disabled low-income
property owners can defer assessment
– administered by Island County
• USDA-RD Housing Program for income
qualified assistance for on-site connection
– apply as individuals
Federal/State Funding Assistance
• Each program has its own process
• Funding outlook may change every year
• Success improves by staying in touch and involving
funding program administrators
• An organized Funding Program Tech Team
established to assist the project in funding
• Met in Wenatchee Oct.‘10, in Freeland Mar.‘11
• State/Federal Funders are interested in this project
Target Appropriations for Funding
• Federal appropriations
– earmarks not allowed this year, better next year
– pursuing Water Smart Program under Bureau of
Reclamation
• Federal State and Tribal Assistance Grant
– applications not accepted this year
• State appropriations
– remain hopeful for potential this year
Targeted Funding Sources
• DOE water quality programs
– grant/loan application due October 2012
– draft offer for design loan (not grant-eligible)
– potential $5M grant for severe hardship
– potential $1.75M grant for Green Project Reserve
• USDA-Rural Development
– grant/loan application planned October 2012
– potential $1.5M grant with $3.5M loan
More Targeted Funding Sources
• Community Development Block Grant
– Grant for qualified low-income assessment relief
– $1M would provide 45 homes at $21,800
– Island County would be applicant
• Community Economic Revitalization Board
– Design/construction assistance for service to
manufacturing sector
• WA State Public Works Trust Fund
– Low-interest loans, maximum $10M per
biennium
– 5-year deferral for new systems
Funding – Where We Are Now
• Remain hopeful for potential appropriation
to fund design process
– Can delay LID formation
– Avoid borrowing funds until construction
• Continue to work with funding program
administrators
– LID formation will be required for additional
grants/loans
– Meet with Funding Tech Team in October
• Seek to reduce costs through design process
Next Steps
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Website: www.freelandwsd.com
FAQs
Water Lines newsletter
Upcoming public meeting topics:
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Finance, Project Cost Overview and LID
Sub-Area Planning & Population Growth
Water Quality Issues & Water Supply
Project Plan Alternatives & On-site STEP System
Design & Cost Control
What Questions Do You Have?
Freeland Water &
Sewer District
New Sewage
Collection and
Treatment System
Public Meeting #3
April 5, 2011
and associated firms