MCSD City of Burgin Sanitary Sewer Improvements Project Update

Project Basics:

• The project is fully funded, as previously reported. Funding sources include: a grant from the Kentucky Infrastructure Authority to MCSD; a Rural Development grant/loan package, also to MCSD; and a CDBG grant to the City of Burgin from the Kentucky Department for Local Government. A $50,000 local match includes pledges from the Burgin City Council, MCSD, Mercer County Fiscal Court, Mercer County Industrial Development Commission, Farmers National Bank, Little Zion Baptist Church, the Village Inn and Burgin Depot. These pledges will not be required to be honored until construction begins.

• As previously discussed, the service area includes essentially all residences and businesses within the city limits, the only exception being in outlying areas which are too sparsely populates to be served economically.

• Up-front costs to residential customers include a $500 tap-on fee, if applicable (1) payable to MCSD, and the cost of constructing the lateral sewer from the house to the public sewer. (The owner hires his own plumber for this.)
(1) Since the project is partially funded by HUD (CDBG), the tap-on fee will be waived for all low-to-moderate income (LMI) households. To receive this waiver, the property owner / resident must complete a form similar to the one which was used to determine that the City was eligible for the grant. It was found that over 60% of those households surveyed are LMI. This form is currently available at the MCSD/LVWA office. Property owners / residents are encouraged to stop by the office and complete the form, and will then be advised if they qualify for the waiver. Anyone who is unable to do so can call 748-9654 and request a home visit.

• Monthly costs to residential customers: $40 minimum for 2,000 gallons and $6.50 per 1,000 gallons above 2,000. These rates were established by Rural Development as a requirement for their participation in the project, and the District has adopted these rates for all existing customers, effective August 1, 2014.

• The project will be constructed, owned and operated by MCSD. The City, as the CDBG grant recipient, will receive periodic (monthly, during construction) payments from DLG, and transfer these receipts to MCSD for payment of invoices from all vendors (engineer, contractor, grant administrator, etc.) for all expenses incurred during project development.

• DLG requires a certified Grant Administrator for its portion of the funding. The City has signed a contract with Bluegrass ADD to provide these services.

• Both DLG and RD require monthly progress meetings during construction. Attendees will include representatives of MCSD, the City of Burgin, Strand Associates, Strand Associates, BGADD, the Sanitation District’s Resident “Inspector and the construction contractor. During these meetings there will be an opportunity to discuss any issues arising during the previous month. All project costs eligible for reimbursement will be reviewed and approved for submittal to the appropriate funding agencies.

• Once the system is in operation, the City’s only obligation will be to provide monthly water usage data to the District. It is anticipated that the District will bill customers direct (i.e.: separate bills for water and sewer).

Project Status:

• Since we last met, the archaeological survey has been completed by the University of Kentucky. This is the next to last step in achieving DLG approval and release of CDBG grant funds. Bob Casher is here tonight, and will address this in more detail.

• About half the +/-200 easement forms have been prepared, and will be ready to be signed within a week to 10 days. Those easements which are ready for signature are generally in the Pleasant Hill and Ash-Dan areas. We expect the remainder to be ready within 2 to 3 weeks. The easement acquisition team will be meeting next Tuesday, October 21st at 4:30 at the District’s office to start this process. We will notify those property owners where easements are needed and either (a) set up an appointment for them to come in to the District office to sign, or (b) have a member of the easement acquisition team make a home visit.

• Three pumping station sites will have to be purchased in fee simple. The main pumping station, which will deliver flow to Danville for treatment, is located on Pat Lear’s farm, along Kennedy Bridge Road. Two smaller stations will be constructed on the Dunn property at Water and Peach Streets, and on the Conover property adjacent to Lake Village.

• About 3 ½ miles of the new sewer lines will be constructed in city streets. Where this is the case, the streets will be repaved, full-width, so any future plans for pavement work on these streets by the City should be delayed, if possible, to avoid unnecessary expense by the City.

• The District needs the City to adopt a resolution authorizing the District to construct within the rights-of-way of city streets, as indicated on the project plans.

• Further progress is now totally dependent on how fast we can complete the easement acquisition process. Once all easements are obtained, it will take 6 weeks to 2 months to advertise and receive bids and award the construction contract. Construction will take 15 to 18 months. Earliest probable date for the system to go on line is late 2016 – early 2017.

• A set of the final plans, showing the location of all sewer lines, is available for viewing at the District’s offices, and the District / Lake Village staff will be happy to answer any questions from council members or the general public.

• The District is in the process of creating a web page on the County’s web site. Once it is in place, information about the District, and progress on current projects, including Burgin, will be posted. It will be accessed by going to mercercounty.ky.gov and clicking on the Sanitation District button in the left hand side of the home page.

For more information regarding any information contained in the herewithin, please contact Mr. Mike D. Sanford, General Manager, MCSD at (859) 748-9654.

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