CENTER — Center Water and Sanitation Board President George Welsh reported Tuesday that the recent reception of the $1 million grant from the Department of Local Affairs (DOLA) places the district on third base to home in the plant construction project.
Estimated costs for the project are $7.68 million in construction, $769,000 in contingency, $350,000 for engineering, $466,000 for construction management, $252,536 in legal expenses, bonding and interim interest (during construction). Total constructions costs for the upgrade will come to $9,517,944.
So far grants already received include: a $250,000 Colorado Department of Public Health and Environment (CDPHE) design and engineering grant, a $100,000 Department of Local Affairs (DOLA) design grant, $101,000 CDPHE water quality improvement grant and most importantly, the recently received DOLA construction grant.
“We’d given up hope on the DOLA grant,” Welsh said Tuesday. “We much appreciate receiving it but were very surprised. Moe Jones did a great job of talking to them at that meeting.”
The district also is seeking a U.S. Department of Agriculture (USDA) grant (to hopefully cover a minimum of 40 percent of the project) and a low interest or no-interest USDA loan for any remaining amount. Welsh said that grant might also come in at $1 million.
If enough USDA grant and loan money can be obtained, this will help the district keep water and sanitation rates at the lower end of the spectrum, he added.
The current residential rate is $24.20 per month. If no USDA grant is received, rates will increase by $41.82 to $66.02. If the district receives a 40 percent grant (and in the district’s opinion, this is highly likely) the monthly user rate will increase by $30.25 to a total of $54.45.
Current residential rates in other communities like Center’s run as follows:
• Fairplay is $65 per month,
• Del Norte is $40 per month and will soon increase and
• East Alamosa is $60 per month.
If Center chooses not to do this, Welsh cautioned, it will be interpreted as a violation, a nasty letter will arrive in the mail, and the district may be fined $10,000 per day. Then a cease and desist order will be issued, the state will ask the district to give them a timeline for completion, and this work will have to be done anyway.
The district has been informed that Del Norte was once fined over $200,000 for a similar violation.
The district has completed the design process and is waiting for CDHPE approval of its plan as well as the grant and loan package from USDA. As for bidding and construction, this will hopefully begin in June 2019 with construction underway by July 2019 through July 2020.
“We’re getting close to being able to pull the trigger and do it,” Welsh concluded.