HUDSON LAKE COMMUNITY WELL WATER PROTECTION PROJECT

Transcription

1 COMMUNITY WELL WATER PROTECTION PROJECT (CONSIDERATION FOR A PUBLIC SEWER SYSTEM) June 6, 2015 Public Information Meeting AGENDA: 1. Introduction JPR Team Planning Committee ISDH 2. Format 30 Minute Presentation Q&A 3. Guidelines Be Respectful Make Comments at Microphone Written Questions are Welcome 2 Hour Max Limit

2 WHAT IS THIS ALL ABOUT? Late in 2013 a small group of Hudson Lake residents took the initiative to consider the future of Hudson Lake as a community including the concern for the lake and the area s drinking water supply. They contacted the Koontz Lake RSD Board to ask for advice The Board recommended they speak to JPR JPR offered to assist the group with a Preliminary Investigative Report The report was completed in late 2014 The planning committee decided to wait until summer of 2015 to seek community input so as to make sure part-time residents are available to participate

3 WHAT IS INCLUDED IN THE WORK? The completed report provides a financial feasibility analysis of a single option for a community sanitary sewer collection and treatment system. Additional alternates will be explored if the community supports the concept and decides to proceed. There was no environmental study completed relative to lake or ground water quality issues. WHAT AUTHORITY DOES THE PLANNING COMMITTEE HAVE? None, they exist only to complete this initial step; all are volunteers and cannot compel a public works project in any way.

4 PROJECT AREA

5 WHY WOULD WE CONSIDER THIS? The average American home generates 210 to 310 gallons of wastewater per day. At Hudson Lake, approximately 157,500 gallons of waste water are deposited into the soil each day. At some point the community will not have many viable options Risks to health are possible Risks to the environment are possible Preservation of housing stock and home values WHAT ABOUT THE LAKE? Human encroachment can affect water quality in lakes over time. We are not aware of such an issue at Hudson Lake (that s good news, for now). WHAT CAN BE DONE? There are very few things homeowners can do on their own to protect and preserve the drinking and surface water resources. Working together can have a positive impact.

6 COMMUNITY AND STUDY AREA CONCERNS/FACTS The study area at Hudson Lake includes as many as 750 residential equivalents (270 more at Saugany Lake). The estimated population of the Hudson Lake study area is just less than 2,100 persons (729 more at Saugany Lake). 55% of the soils within the study area are rated very limited for construction and operation of septic systems (USDA, NRCS Soils Inventory, the Hudson Lake LDS (2008)). Many (if not most) of the home sites within the study area are under the minimum size as stipulated in the County zoning ordinance for use of on-site septic systems (min. 24,000 square feet, by ordinance). Based on the density per acre, water well isolation and system sizing as required by code cannot be achieved in many cases - this could lead to very high repair expenses, a holding tank requirement, use restrictions, or prohibited occupancy. The La Porte County Health Department advises that it faces serious challenges in achieving minimum health standards when permits for septic system repair or replacements are requested. The reality is that for many home sites, repair or replacement is not possible. The Indiana State Department of Health has advised that it is critical that the sewage disposal problems in these lake areas be addressed as soon as possible. Direct exposure to septic waste is a high risk situation, long term and indirect exposure can be risky as well. The United States Geologic Society (USGS) says that in residential areas effluent recycling can occur if wells are shallow or septic systems are improperly placed...

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8 HEALTH, SANITATION AND WELFARE By the Numbers... Homes average 53 years old Septic system life expectancy is years (longer in part-time residential communities) 710 residential properties Less than 100 documented septic systems Average age of documented systems is 18 ½ years Undocumented failures and/or poorly functioning systems, coupled with less than ideal soil conditions, can contribute to public and environmental health risks. In addition to the obvious concerns, there are several other factors that should be considered. The average home site needs to make space for the home, garage, driveway, sidewalks, patio/deck, storage shed/building, initial septic system, replacement septic system, and a 100-foot diameter (50-foot radius) isolation area for the water well under current standards. From review of the Laporte County GIS and zoning ordinance many of the home sites in the service area are far smaller than 12,000 sft, which is half the Laporte County standard of 24,000 sft for a building site without sanitary sewer. The on-site septic systems appear to have matured to the point that on-site treatment will either become too costly for homeowners to replace or not possible. The Outcome With the provision of public sewers... Each home s septic system can be abandoned allowing homeowners more flexibility in the use of their land. The need for a public water distribution supply is reduced, as the aquifer is no longer threatened by septic waste discharge. Historical data indicates that property values normally increase proportionately to the capital cost of the sewer system for each home. Community-wide, home and business values will elevate bringing increased revenue to the local tax base and an improved local economy. Overall reduced risk to health and human welfare. Waste borne pathogens are eliminated and wastewater is recycled to the highest degree possible and released back to the environment with no negative impact to surface or groundwater resources.

9 HEALTH, SANITATION AND WELFARE

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11 HEALTH, SANITATION AND WELFARE By the Numbers... Homes average 53 years old Septic system life expectancy is years (longer in part-time residential communities) 710 residential properties Less than 100 documented septic systems Average age of documented systems is 18 ½ years Undocumented failures and/or poorly functioning systems, coupled with less than ideal soil conditions, can contribute to public and environmental health risks. In addition to the obvious concerns, there are several other factors that should be considered. The average home site needs to make space for the home, garage, driveway, sidewalks, patio/deck, storage shed/building, initial septic system, replacement septic system, and a 100-foot diameter (50-foot radius) isolation area for the water well under current standards. From review of the Laporte County GIS and zoning ordinance many of the home sites in the service area are far smaller than 12,000 sft, which is half the Laporte County standard of 24,000 sft for a building site without sanitary sewer. The on-site septic systems appear to have matured to the point that on-site treatment will either become too costly for homeowners to replace or not possible. The Outcome With the provision of public sewers... Each home s septic system can be abandoned allowing homeowners more flexibility in the use of their land. The need for a public water distribution supply is reduced, as the aquifer is no longer threatened by septic waste discharge. Historical data indicates that property values normally increase proportionately to the capital cost of the sewer system for each home. Community-wide, home and business values will elevate bringing increased revenue to the local tax base and an improved local economy. Overall reduced risk to health and human welfare. Waste borne pathogens are eliminated and wastewater is recycled to the highest degree possible and released back to the environment with no negative impact to surface or groundwater resources.

12 COMMON QUESTIONS & ANSWERS Q: How would this project affect me? A: If local officials decide to move forward with a project, homeowners and businesses within the service area will be required to connect to the new sewer. Q: When might this project proceed? A: That depends on the community, possibly within the next 36 months. Q: How is the project cost estimated? A: Through the development of a detailed study and preliminary design completed by a licensed engineer who has experience in many Indiana projects. Preliminary estimates are based on the study s information and include a variety of factors. These typically include final design, routing, road restoration, construction market conditions and changing material costs. Q: How will the project be funded? A: A large portion of the project s cost can be funded through a USDA grants or an infrastructure grant through the State of Indiana (OCRA) (for example: 45% federal/state, 55% local). The local share of the cost will depend on community demographics. A revenue bond or a long-term low interest loan will cover the local share (these are typically issued by the local wastewater district). Q: How will the bond be repaid? A: Through rates and charges paid by the new sewer system s customers. No landowners beyond the area served by the system will be affected. Q: Is it mandatory that I connect to the system? A: Yes, if you are within the approved district. Q: What about those of us who recently installed a new septic system or completed our new home with a septic system? A: The law allows you to seek a temporary exemption based on the age and condition of your septic system. To qualify, your system must be no more than ten years old, and be inspected by a qualified expert as to operational condition and serviceable life. If the project proceeds, all homeowners will receive (by direct mail) details on how to prepare, file and procure the exemption. Q: What would be my share of the project cost? A: Final rates will be determined by the actual costs of the project. Each property owner will pay his fair share. The next few slides provide this information.

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15 ESTIMATED PROJECT COSTS Total Project Costs Summary OPTION NO. 1 OPTION NO MGD WWTP HUDSON & SAUGANY LAKE MGD WWTP Construction Costs Collection System $7,020,100 $9,530,300 Treatment System $1,992,400 $2,353,100 Sub-Total $9,012,500 $11,883,400 Construction Contingency (10%) $901,300 $1,188,300 Total Est. Construction Costs $9,913,800 $13,071,700 Non-Construction Costs Legal Fees $22,000 $28,000 Bond Counsel $25,000 $35,000 Fiscal Consultant $38,000 $45,000 PER & ER $48,000 $55,000 Anti-degradation Study $30,000 $30,000 Collection System - Eng. & Permitting $575,000 $725,000 Treatment System - Eng. & Permitting $205,000 $260,000 Construction Administration $80,000 $90,000 Resident Project Representation $230,000 $330,000 Survey - Control Network $29,000 $33,000 Aerial Photography & Mapping $19,000 $30,000 Easements $204,000 $280,000 Easement Payments to Grantors $30,600 $42,000 Fees, Bonds & Misc Admin. Costs $8,000 $10,000 Total Est. Non-Construction Costs $1,543,600 $1,993,000 Total Project Costs $11,457,400 $15,064,700 USDA RURAL DEVELOPMENT INCOME TIER LEVELS AND INTEREST RATES Interest Rates Tier Level Max. Grant % MHI Levels 3.50% Market 0% >$55, % Intermediate 45% $44,627 to $55, % Poverty 75% <$44,627 SERVICE AREA INFORMATION Service Area (Township Location) Homes Commercial/Businesses MHI Hudson Lake (Hudson Township) $46,176 Saugany Lake (Galena Township) $63,045 TOTAL NOTE: Detailed cost estimates are available upon request

16 ESTIMATED HOMEOWNER COSTS Description OPTION #1 - PSS MGD WWTP Various Funding Options NO GRANT W/ CAPITAL BUY-DOWN 45% USDA GRANT 45% USDA & OCRA GRANT USDA RD Loan $11,457,400 $9,732,400 $6,301,570 $5,901,570 USDA RD Grant (45% of Costs) $5,155,830 $5,155,830 OCRA GRANT $400,000 CAPITAL BUY-DOWN ($2,500/REU) $1,725,000 Total Project Costs $11,457,400 $11,457,400 $11,457,400 $11,457,400 Annual Revenue Requirements O&M - Collection System $98,300 $98,300 $98,300 $98,300 O&M - Treatment System $105,700 $105,700 $105,700 $105,700 Principal & Interest Expense Loan (1) $542,900 $461,200 $265,400 $248,600 Billings & Misc. Administration $50,000 $50,000 $50,000 $50,000 Debt Service Reserve (10%) $54,300 $46,100 $26,500 $24,900 Est. Annual Revenue Required $851,200 $761,300 $545,900 $527,500 Estimated Monthly Sewer Bill (Based on 690 REU's) (2) O&M - Collection System $11.87 $11.87 $11.87 $11.87 O&M - Treatment System $12.77 $12.77 $12.77 $12.77 Principal & Interest Payment $65.57 $55.70 $32.05 $30.02 Billing & Administration $6.04 $6.04 $6.04 $6.04 Debt Service Reserve $6.56 $5.57 $3.20 $3.01 Estimated Total Monthly Sewer Bill $ $91.94 $65.93 $63.71 (1) Interest Rate without grants: 3.5% & 39 year term; Interest Rate with grants 2.75% & 39 year term (2) REU Count reduced by 10% for rate estimate (assumes 3% reduction for septic system exemptions & 7% margin adjustment) Description OPTION #2 - HUDSON & SAUGANY LAKE PSS MGD WWTP Various Funding Options NO GRANT W/ CAPITAL BUY-DOWN 45% USDA GRANT 45% USDA & OCRA GRANT USDA RD Loan $15,064,700 $12,735,950 $8,285,585 $7,885,585 USDA RD Grant (45% of Costs) $6,779,115 $6,779,115 OCRA GRANT $400,000 CAPITAL BUY-DOWN ($2,500/REU) $2,328,750 Total Project Costs $15,064,700 $15,064,700 $15,064,700 $15,064,700 Annual Revenue Requirements O&M - Collection System $135,500 $135,500 $135,500 $135,500 O&M - Treatment System $126,600 $126,600 $126,600 $126,600 Principal & Interest Expense Loan (1) $713,900 $603,500 $349,000 $332,200 Billings & Misc. Administration $62,000 $62,000 $62,000 $62,000 Debt Service (10%) $71,400 $60,400 $34,900 $33,200 Est. Annual Revenue Required $1,109,400 $988,000 $708,000 $689,500 Estimated Monthly Sewer Bill (Based on REU's) (2) O&M - Collection System $12.12 $12.12 $12.12 $12.12 O&M - Treatment System $11.33 $11.33 $11.33 $11.33 Principal & Interest Payment $63.87 $53.99 $31.22 $29.72 Billing & Administration $5.55 $5.55 $5.55 $5.55 Debt Service Reserve $6.39 $5.40 $3.12 $2.97 Estimated Total Monthly Sewer Bill $99.25 $88.39 $63.34 $61.68 (1) Interest Rate without grants: 3.5% & 39 year term; Interest Rate with grants 2.75% & 39 year term (2) REU Count reduced by 10% for rate estimate (assumes 3% reduction for septic system exemptions & 7% margin adjustment)

17 *No grants were qualified

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20 PLAN OF ACTION: Assuming that the community considers the project further, we recommend the following steps going forward: Complete the public information step Hold public input meetings within the community Develop a statement of need Submit all developed information to the Laporte County RSD Request the Laporte County RSD consider the project area as a sub-district Select an engineer to commence the Preliminary Engineering Report and Environmental Report (USDA requirement) Submit funding applications (USDA, OCRA) Design Engineering & Permitting Project Bidding & Construction Likely timeline 36 months QUESTIONS?

21 HELPFUL LINKS FOR LAKE AREA RESIDENTS (Laporte County septic system requirements) (Laporte County septic system ordinance) (re: septic systems) (water well standards) (re: septic system location and care, etc.) (re: septic system care, etc.) (re: septic system location and care) (re: water well information location and care) (re: septic systems and water wells) (re: statewide ground water monitoring network survey)