Lake City Report - March 5, 2010
WWTP Financing - The
Blanche -- Master Plan
Columbia County, FL (Posted March 6,
2010 • at 05:00 am)
by City Manager Wendell Johnson and
staff
From City Manager Wendell Johnson
Waste Water Treatment Plant (WWTP) financing
Following Council approval of the bond
refinancing proposal on March 1, 2010, the
Gollahon financial consultant will meet next
Tuesday with me, the Utilities Director and the
City Engineer to discuss financing for the new
WWTP.
Although the State Revolving Fund (SRF) was
previously viewed as the most viable financing
option, we will evaluate the potential for use
of a new form of bonds known as Build America
Bonds (BABs). These “taxable” bonds were created
by the Economic Recovery and Reinvestment Act
and through Federal subsidies are intended to
reduce municipal borrowing costs.
BABs differ with financing that can be
extended over a 30 year period vs. the 20 year
SRF loan period. BABs are available only through
December 31, 2010, but this timing is
well-suited for our WWTP funding needs.
Subject to eligibility, the financial
advantages of using BAB financing for the new
WWTP will be determined by the Staff within the
next few days.
Blanche Structural Analysis
An owner representative of the Blanche
contacted me late this week and delivered the
“as built” construction plans. These plans
will be provided to Jones Edmunds at their
request for use in completing the structural
assessment and contribute to a significant
savings in service costs.
The notice to proceed with the assessment was
issued to Jones Edmunds on March 4, 2010 and
they will begin before mid-March.
The IBI Group of Sarasota, Florida was
selected by the CRA as the top firm to prepare
the plan.
Staff will meet on March 9, 2010 with IBI
Representatives to discuss the scope of the plan
update and the associated fee schedule.
It is anticipated that a recommendation for
contract award will be presented to the CRA on
March 15, 2010.
The City Staff Report is available in pdf format
here.
