Freeland Water and Sewer District Sewer and Water Reuse Project

1
Freeland Water and Sewer DistrictSewer and
Water Reuse Project

• Public Meeting 3
• April 5, 2011

and associated firms
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Meeting Agenda and Purpose
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Agenda

• 600 pm Open House Welcome
• 615 pm Introductory Comments by District
• 630 pm Project Status
• 700 pm Project Costs and Funding
• 730 pm QA
• 800 pm - Adjourn

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Purpose

• For Community Members to get answers to questions
  regarding
• Project Status
• Why the project is needed
• Project Cost and Financing
• Next Steps

5
PROJECT REVIEW Where are we on this project and
how did we get here?
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Project Review

• What water quality issues?
• Why does the Freeland Sub-Area Plan require
  sewers?
• What is the status of the sewer project?

7
DOE Water Quality Assessment
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DOE Water Quality Assessment
9
Holmes Harbor SPD
10
DOH Shellfish Safety Closures
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Media

• NRDC Report
• 20 Samples Contaminated

12
Project Review

• Why does the Freeland Sub-Area Plan require
  sewers?

13
Collection and Conveyance
Wastewater System Elements
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Project Review

• What is the status of the sewer project?

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Project Complexities

• Freeland Sewer and Water Reuse Project
• Activities Related to Pre-design, Design,
  Construction, and Operation
• Pre-Design Phase
• Complete easement acquisition to 80 acres
• Pre-Design Studies
• Complete hydrogeology study of 80 acres and
  drainage basin (HWA)
• Survey for right-of-way, treatment plant site and
  reuse site.
• Develop and acquire STEP system access, pipeline,
  and side sewer easements
• Treatment plant and reuse site geotechnical
  investigation and report.
• Suitability (incl. locating/documenting) of
  existing on-site systems for STEP conversion
• Secure potable water supply to treatment plant
  site
• Electrical supply coordination with PSE for STEP
  systems
• High voltage 3-phase electrical supply
  coordination with PSE for treatment plant site
  and reclaimed water site
• Detailed Design for Construction
• Design bid phase contract amendment assume
  scope budget negotiations.
• Design and bid for membrane system equipment
  procurement.
• Detailed design of plans, specifications
  estimate for construction
• Construction Management and Quality Control Plan
  required for Ecology Approval.

• Bid Phase
• Call For Bids with 30 day bid period
• Open and evaluate Bids, recommend for award
• Notice to proceed with construction.
• Construction and Startup Phase
• Construction (potentially multiple contracts)
• Reclaimed water treatment plant
• STEP collection conveyance system
• On-site system modifications/replacements
  converting to STEP
• Effluent reuse system
• Conveyance pipeline
• Effluent reuse site construction.
• Startup and testing
• Project on line and operational
• Project completion approvalsWDOE WDOH
• Operation Phase Planning and Policies
• Operations and Maintenance Plan drafted during
  design/construction phase
• Administrative and maintenance policies
• STEP system access and maintenance policies

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Ecology Water Quality DraftFund Offer

• 5 Ranked Project on Draft Offer List
• 3.5 M Request for Design

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Continued Conversations

• Public information outreach
• With our funding partners
• Value Engineering process
• 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

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Funding
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The Funding Dance Government/Community
Partnership

• Government investment
• 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
• 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

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Sewer Funding Plan
Capital Funding State/Federal Appropriations State
/Federal Grants Loans Interim Bank Line of
Credit
Goal Most Advantageous for Ratepayers
Debt Repayment / User Recovery LID Assessments,
Island County Rural Sales Tax, 100k/yr
OM / Admin / Short-Lived Assets Monthly Rates
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Project Cost

• Please refer to project cost sheet available on
  FWSD website

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Sample How LID payment works - over 15 years
SAMPLE LID ASSESSMENT REPAYMENT SCHEDULE SAMPLE LID ASSESSMENT REPAYMENT SCHEDULE SAMPLE LID ASSESSMENT REPAYMENT SCHEDULE SAMPLE LID ASSESSMENT REPAYMENT SCHEDULE    
ASSUMPTIONS   USDA-RD rate 3.25 as of Jul 1, 2010 USDA-RD rate 3.25 as of Jul 1, 2010 USDA-RD rate 3.25 as of Jul 1, 2010  
ANNUAL PAYMENTS 15  
INTEREST RATE 3.75 includes 0.5 for administration includes 0.5 for administration includes 0.5 for administration  
  Without Grant Without Grant With Add'l 10M Grant With Add'l 10M Grant  
  No Existing Home With Existing Home No Existing Home With Existing Home Pre- payment
LID ASSESSMENT 19,100 29,600 11,300 21,800 0
YEAR 1 1,990 3,083 1,177 2,271 -
YEAR 2 1,942 3,009 1,149 2,216 -
YEAR 3 1,894 2,935 1,121 2,162 -
YEAR 4 1,846 2,861 1,092 2,107 -
YEAR 5 1,799 2,787 1,064 2,053 -
YEAR 6 1,751 2,713 1,036 1,998 -
YEAR 7 1,703 2,639 1,008 1,944 -
YEAR 8 1,655 2,565 979 1,889 -
YEAR 9 1,608 2,491 951 1,835 -
YEAR 10 1,560 2,417 923 1,780 -
YEAR 11 1,512 2,343 895 1,726 -
YEAR 12 1,464 2,269 866 1,671 -
YEAR 13 1,417 2,195 838 1,617 -
YEAR 14 1,369 2,121 810 1,562 -
YEAR 15 1,321 2,047 782 1,508 -
TOTAL PAYMENTS 24,830 38,480 14,690 28,340 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.
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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

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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

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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

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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

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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

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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

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Next Steps

• Website www.freelandwsd.com
• FAQs
• Water Lines newsletter
• Upcoming public meeting topics
• 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

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What Questions Do You Have?
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Freeland Water Sewer DistrictNew Sewage
Collection and Treatment System

• Public Meeting 3
• April 5, 2011

and associated firms