1/29/1991 - Laserfiche WebLink

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s� , . `, 1 BOOK � P,1,E ANALYSIS• Due to the delays caused by the City's withdrawal from the initial project, Indian River County could not comply with the original Grant Agreement time schedule for bidding. Indian River County is �. losing a percentage of the grant funds equal to the increase in the ENR Construction Index after the original bid date for bidding of the project, which was September 30, 1989. The redesign of the project was completed September 1990 and has been submitted to DER for final approval. The total estimated redesigned project costs are $6,720,000, less estimated grant of $1,350,000, leaving the estimated local share of the County's cost at $5,370,000. The estimated bond issue to finance the local share would be $6.2 million. A $6.2 million bond issue at 8% interest rate over a 20 year period would equate to an estimated $630,000 per year debt service requirement. The projected operation and maintenance cost is estimated at $204,000 per year. The estimated increase in sewer• revenues required in 1992 to support the debt service and annual operation and maintenance cost would. result in an increase of $5.22 on an average monthly water and sewer bill with 5,000 gallons of usage. This equates to a 15 percent increase on a monthly water and sewer bill of $34.78 with 5,000 gallons of usage at current rates. The Department would propose to advertise the project for bid within two weeks of Board of County Commissioner's approval to stop further erosion of the grant funds. RECOMMENDATION: The Department of Utility Services recommends that the Board of County Commissioners approve the attached Engineering Report and Feasibility Study and authorize the Department of Utility Services to advertise the project for bid. MOTION was made by Commissioner Eggert, SECONDED by Commissioner Scurlock, to approve the Engineering Report and Feasibility Study and authorize Staff to advertise the project for bid. Commissioner Scurlock referred to the statement in Staff's memo that the estimated increase in sewer revenues to support the debt service, annual operation and maintenance cost would result in an increase of $5.22 on an average monthly water and sewer bill. He noted that in the upcoming workshop on water and sewer rates, we will be looking at an increase of something over $6.00 and this $6.00 includes the $5.22. Director Pinto believed the project is self-explanatory. He noted that it doesn't carry the dignity of a library or the prestige of -a courthouse, but as far as the need, it is probably far superior to most of the things we have done in the county. We cannot continue building our wastewater treatment plants without this facility. It is a major support facility; it is expensive; and it will be part of our rate structure. He informed the Board that we have talked about several different -ways of funding this 36