July 23, 2014 at 2:10 p.m.
Sewer projects move forward (03/10/2009)
Jay County Regional Sewer District
By By STEVE GARBACZ-
The Jay County Regional Sewer District moved forward on three sewer projects Monday as it authorized its engineers to begin working on finances and final engineering.
The district board approved three steps to keep its sewer projects - the Foxfire project south of Portland, Barbier Street project south of Dunkirk, and Skeens Addition project north of Dunkirk - moving Monday night after holding an abridged public hearing about the Foxfire project.
The board entered into a contract for Commonwealth Engineers to work on final engineering for the Dunkirk programs and gave Commonwealth the green light to begin securing funding and find a financial firm to conduct a rate study.
Ben Adams and Wayne Bailey of Commonwealth said they will begin moving forward on all three areas. They will contact H.J. Umbaugh and Associates, a highly-regarded financial firm, to conduct a rate study, which will determine monthly costs to users.
Adams estimated Monday that users will be paying about $60 for debt repayment and treatment charges once the sewers are completed. H.J. Umbaugh will crunch the numbers further and report its suggestions to the district.
The board also approved a $40,000 contract to continue working with Commonwealth on the engineering for the two Dunkirk projects, despite only having about $7,000 in the district coffers.
"Once we get financing we'll be able to settle up," Adams said. He joked that they will begin working on securing financing quickly because, "In order for us to get paid we need to get that funding."
Bailey will continue to explore all financial avenues and is constantly checking in with government agencies regarding grant funding. Since many of those agencies are receiving federal stimulus money, Bailey said they might have more to spend on infrastructure projects.
"Something could happen along the way and bail us out," he said.
A public hearing on the Foxfire project was scheduled for Monday, but affected residents of the area were not notified by mail, as required. Five residents showed up to ask questions despite not being notified.
"We had intended to get letters out to the Foxfire and (Ind. 67) area - that letter did not get sent," explained Adams, who said he will send notices and they will try again at the next meeting on April 13.
As opposed to the two prior hearings about the Dunkirk projects, the tone of the Q&A between board and residents was calm. But like the Dunkirk residents, most of the residents' questions revolved around monthly payments.
Adams stressed the $60 per month figure he presented is only a preliminary estimate. The debt repayment portion of that payment will likely move down, while the treatment charge could move up over the years depending on charges from the city for sewer service.
"Our estimates are taken from industry standards," Adams said, based on projects that are "extremely similar in nature.
"The pricing here ought to be better," he continued. "I feel really good about the numbers we have out to the board."
Adams said the last handful of projects he's been involved with have all bid in about 15 to 20 percent less than the engineering estimates. The county is likely to receive 45 percent or more of the project cost in grant funding, which will cost down user costs. He had also estimated about a 4 percent interest rate on the project, but suggested the county may get lower than that, even the possibility of a 0 percent rate.
"You're dealing with an extremely hungry market," he said. "You couldn't have picked a better time to do it."
Adams told the residents on hand there will be more concrete financial data once the rate study is completed.
Board president Gerald Kirby invited any affected resident in any of the three project areas to attend the district meetings, which are held on the second Monday of every month. Once the rate study is completed, Kirby said he would be willing to discuss those numbers.
"We're not going to shut (these hearings) down," he said. "These questions are legitimate concerns."[[In-content Ad]]
The district board approved three steps to keep its sewer projects - the Foxfire project south of Portland, Barbier Street project south of Dunkirk, and Skeens Addition project north of Dunkirk - moving Monday night after holding an abridged public hearing about the Foxfire project.
The board entered into a contract for Commonwealth Engineers to work on final engineering for the Dunkirk programs and gave Commonwealth the green light to begin securing funding and find a financial firm to conduct a rate study.
Ben Adams and Wayne Bailey of Commonwealth said they will begin moving forward on all three areas. They will contact H.J. Umbaugh and Associates, a highly-regarded financial firm, to conduct a rate study, which will determine monthly costs to users.
Adams estimated Monday that users will be paying about $60 for debt repayment and treatment charges once the sewers are completed. H.J. Umbaugh will crunch the numbers further and report its suggestions to the district.
The board also approved a $40,000 contract to continue working with Commonwealth on the engineering for the two Dunkirk projects, despite only having about $7,000 in the district coffers.
"Once we get financing we'll be able to settle up," Adams said. He joked that they will begin working on securing financing quickly because, "In order for us to get paid we need to get that funding."
Bailey will continue to explore all financial avenues and is constantly checking in with government agencies regarding grant funding. Since many of those agencies are receiving federal stimulus money, Bailey said they might have more to spend on infrastructure projects.
"Something could happen along the way and bail us out," he said.
A public hearing on the Foxfire project was scheduled for Monday, but affected residents of the area were not notified by mail, as required. Five residents showed up to ask questions despite not being notified.
"We had intended to get letters out to the Foxfire and (Ind. 67) area - that letter did not get sent," explained Adams, who said he will send notices and they will try again at the next meeting on April 13.
As opposed to the two prior hearings about the Dunkirk projects, the tone of the Q&A between board and residents was calm. But like the Dunkirk residents, most of the residents' questions revolved around monthly payments.
Adams stressed the $60 per month figure he presented is only a preliminary estimate. The debt repayment portion of that payment will likely move down, while the treatment charge could move up over the years depending on charges from the city for sewer service.
"Our estimates are taken from industry standards," Adams said, based on projects that are "extremely similar in nature.
"The pricing here ought to be better," he continued. "I feel really good about the numbers we have out to the board."
Adams said the last handful of projects he's been involved with have all bid in about 15 to 20 percent less than the engineering estimates. The county is likely to receive 45 percent or more of the project cost in grant funding, which will cost down user costs. He had also estimated about a 4 percent interest rate on the project, but suggested the county may get lower than that, even the possibility of a 0 percent rate.
"You're dealing with an extremely hungry market," he said. "You couldn't have picked a better time to do it."
Adams told the residents on hand there will be more concrete financial data once the rate study is completed.
Board president Gerald Kirby invited any affected resident in any of the three project areas to attend the district meetings, which are held on the second Monday of every month. Once the rate study is completed, Kirby said he would be willing to discuss those numbers.
"We're not going to shut (these hearings) down," he said. "These questions are legitimate concerns."[[In-content Ad]]
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