Members Present: Chairman Marshall L. Harris, V. Chairman Stephen C. Lobik, Clerk Douglas R. North
Superintendent: Craig W. Jalbert
Secretary: Dale Barnes-Johnson
Open the Meeting: The meeting was called to order at 7 a.m.
State Revolving Fund (S.R.F) ~ The spreadsheet for estimated points per project and estimated costs prepared by Karen Pighetti from T&H were reviewed and discussed. Engineering Design is not included in the required SRF funding, and must be financed by the Water & Sewer Department. The combination of a new water storage tank and improvements to the Bethany Road Well prove to be the most point worthy and thereby give us the best opportunity to secure the low interest loan. The Bethany Road Well project would include removal of the diesel and its fuel tank, a new building, corrosion control, flow meter and security upgrades. The total SRF loan amount would be $1,952,000.
Discussion took place on different tank designs, concrete vs. bolted steel, and how a raised tank would cut down on water main costs for the Bunyan Mountain location, although it would add to our life cycle cost. $560,000 is estimated for the 5,000 feet of water main, $150,000 just to run power to the site. Alternative sites were on Wales Road and Brimfield Road but they also would require a similar amount of piping. Discussion took place on the possibility of expanding our existing tank site to make room for the new one. Craig explained that would save us a great deal of money because the piping, electricity and communication lines are already there. Craig will follow up on that possibility.
Financial aspects of the projects in addition to the logistics were discussed. A payment plan was reviewed; and it is obvious a rate increase would be required to pay back the loan. Based on roughly $2,000,000 for 20 years at 2%, the $3.25/1000 gallons rate would need to increase to $4.45/1000 gallons. Total interest payout over that period would be $200,000, which is less than half of what it would be at present bonding rates. We should have a determination on our application by February 2007 (Tank and Bethany Road). If the S.R.F. loan is not secured, the department will have to get the projects done when possible, in FY2009 the Thompson Street payment would be complete, and FY2013 Bunyan Well Improvements & Hospital Road will also be
completed. The USDA still offers a 40 year loan program but the interest rates are only slightly better than bonding rates. The Commission agreed the S.R.F. loan is the preferred way to go.
Craig will continue to work with Karen at T&H to finish the S.R.F. application, which is due at the end of the month.
ADJOURN: Meeting adjourned at 8:30 a.m.
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Douglas R. North, Clerk
cc: Selectmen
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