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HomeMy WebLinkAbout07282021 Port Hadlock Project Meeting.Meeting.Summarybw Date: July 28, 2021 – 10:00 – 11:30 am  Meeting Location: MS Teams Meeting  Group Attending: Monte Reinders – Jefferson County Public Works Bob Wheeler – Jefferson County Public Works Kevin Dour – Tetra Tech Katy Isaksen – Katy Isaksen & Associates  Meeting Topic: Funding & Finance Strategy  Project: Port Hadlock Funding, Finance, and Public Outreach Project Number: 200-12562-20003   Funding Scenarios: Review Scenarios prepared by Katy. Grant Funding Opportunities: Senator Murray $2.5M request/ - Katy assumes there will be an 80-20 match for ($500K match amount is typical). Question is whether it is reimbursable or if they pay cash. The County will need cash for cash flow for interim construction funding. Borrowing interest rate would be 3.25% or similar for Jeff Co. (assume 4%). USEDA: Email of programs from Laura Ives. Kevin to put together a figure to show the Old Alcohol Plant area and project elements for discussion with EDA. Plan is to meet with EDA and if decision from that meeting is to move forward with grant application to bring Gina, TT, back into the team to work on application and process. CDFI Fund – New Market Tax Credits (NMTC’s) Program and Craft3 Agreement. They have been around for a while. Advice is Want to focus on getting the system in place and going and use this for potential later phases of project. They can be beneficial, but they are complex – will need to get a group of consultants to manage. Essentially selling bonds. Not sure if it is beneficial for governments since the credit comes back from IRS tax credits refunded to the borrower. May be an avenue for the Economic Development Council. Agency holding the bond is on the hook if the credit does not cover the payment. Plan is May want to c heck in with Foster GarveyPepper to see if this is a fit for a municipal government since they are bond counsel for the County. Craft 3 is a Financial institution, but they are not a regulated bank. Monte mentioned whether we should have another Tech Team meeting. It was not concluded whether/when we would have this meeting. This may be informed around when/if we apply for DOE funding. The 0.09 Tax – Katy encouraged to the County to keep lobbying to get this reinstated as it can have significant economic benefits to Jefferson County. Especially since the UGA will have the capacity to generate more sales tax revenue in the future once the sewer is in place and more economic and development opportunities in the UGA develop. Updating O&M Estimate: Information from 60% Design Cost Estimate. – In October. Old Alcohol Plant Area likely to be higher than what is anticipated in the facility plan. HDD installation, WSDOT requiring HDD, and Centrifugal Pump Station. County has a Draft Interlocal Agreement in Place with the PUD in process for approving. Expect to get an agreement in-spirit by September. This is not an agreement into details but rather more focused on intents of both parties to work together and work toward PUD actively involved in effrots and ultimate operations and maintenance. Kevin’s Team to update the “Tetra Tech Spreadsheet to incorporate OVIVO’s Spreadsheet. Information updates from Ovivo’s proposal. Kevin and Katy will develop a work plan for updating O&M Estimate at 60% and subsequent design submittals. Budget and Contract for doing the O&M Estimate update. Kitsap PUD. Request meeting, Get operating Data, Warm relationship. Get Jefferson PUD folks out there. Pope Resources’ agreement, operating costs, maintenance costs. Tetra Tech to reach out to Kitsap PUD. End of August to first week in September. Kevin to work with Monte to set up a meeting. Kevin and Katy to provide a FTEmanpower estimate for the O&M to give them a budget level summary of costs and where it comes from. County Budgeting: Budgeting County costs for the next 2 years (2022 – 2024). Other outside consulting not included in the County’s existing contracts. Other Items Discussed Bob and Monte are giving a presentation of Public Works Issues to BOCC on Wednesday, August 4th – Bob may have some questions on costs, etc for the design team. Overall, property owners within the Phase I area that Bob and Heidi Eisenhour have spoken with areeverybody is supportive of the project but still need cost information that Bob and Heidi Eisenhour have spoken with. The only supporter with any outspoken concerns is Mr. Burns who owns Ferino’s Pizza and Valley Tavern – he is supportive but has concerns about connecting Valley Tavern since he just installed a new on-site system for that business. Sewer Ordinance: How to write the draft ordinance? Would it be Foster GarveyPepper? Or are there other consultants that do it? Or our design Team? Katy – in years past did research on local examples/codes. Developed an outline and we did it during the sewer working groups in the past. May want to check in with Marc Greenough. He may have a model sewer ordinance and we go through it and customize it – Katy to check in with Marc. Katy will also check in with him on the Craft3 approach. It would be good to get a sense from Marc the effort/cost so Monte can then develop a budget item to develop the ordinance. Other details discuss/to consider in the ordinance is language that makes connection within Phase I mandatory and to describe and define a connection/incentive program and whether people can pre-purchase their connection early and build their property and connect later. Next Steps/Action Items Kevin to put together a figure of the Old Alcohol Plant pump station and force main to be used for communicating this aspect of the project for a possible EDA grant application. Monte/Bob to request a meeting with EDA to discuss the NOFOS. Evaluate whether it makes sense to submit an application based upon program requirements for job creation, criteria, etc. Have Kevin, Katy and Gina in that meeting. Kevin and Katy to provide a FTEmanpower estimate for consulting services to update the O&M cost estimate after 60% Design is complete and the construction cost estimate has been updated. Kevin to reach out to Kitsap PUD and request a site meeting. Also want to bring along Jefferson County PUD staff to see the plan and hopefully start a discussion about operators/staff to see if there is an opportunity to partner with Jeff Co. PUD for operation of the Pt. Hadlock Plant. Katy to check in with Marc Greenough to discuss process for drafting an ordinance. Is there a standard framework and ‘go by’s’ that he uses to get a draft started? Or is it by scratch? And, ask about Craft3/NMTC approach.