Desert Messenger

July 13, 2016 www.DesertMessenger.com 15 Council updates June 28, 2016 ME HOW TO BUILD A LASTING RELATIONSHIP: 1. Cut on dotted line 2. Rotate 180 degrees IF YOU WANT A STRONGER BUSINESS COMMUNITY, WORK TOGETHER Join the Quartzsite Area Chamber of Commerce & Tourism 1240 W. Main St., Quartzsite • www.QuartzsiteTourism.com • 928-927-5200 During the regular meeting of Town of Quartzsite Council on June 18th, Financial Consultant Mark Reaaer and Engineering Consultant Mike Krebs updated Council on Waste Water Treat- ment Plant Project, USDA Loan, and other long-term debt of the Town. From minutes of the meeting: Mark Reader with Stifel Nicolaus and Greenberg Traurig said his company was retained by the Town to assist with financing, through the United States Department of Agriculture, some funds to be used for a wastewater utility project. He noted he had attended a meet- ing regarding the same matter last year, and since then he and his firm had been working with the Federal Government relative to funding for the Town. He explained that things had progressed more slowly than what he and the Town had wanted. He said he and his firm were opti- mistic should the Town choose to continue with the project. Mark Reader gave a presenta- tion and an update in terms of moving forward. He reviewed the Town's outstanding debt; princi- pal amount of bonds outstanding; long-term debt; and the project budget, funding sources, and uses of funds. There was an in-depth review of the wastewater economic model – net operating revenues and debt service structure, as well as the legal structure of the pro- posed transactions for the funding of the project. Mr. Reader explained the cost of the project had gone up an esti- mated $1.9 million over the years due to increased costs for materi- als and labor. He said that if the Council would like to continue to proceed, it could be in a position to close on the funding in September or October. Mr. Reader said he and his firm would try to obtain more grant money for the Town to help with the costs of the project. Coun- cil Member Orgeron asked if the Town needed to look into refinanc- ing the GADA loan. Mark Reader said they would take a look at refinancing the GADA because the interest rates continue to go down. Mr. Mike Krebs with PACE said his company had been working on this project for the Town for a number of years. He provided an update on the project with a presentation. There was a brief discussion of the nitrate plume caused by sep- tic tanks in one area of the Town. Mike Krebs spoke of the extremely high seasonal flows and how that affects the effluent quality. Town Manager Miller said all the permits had been updated for the expan- sion for the project. Mr. Krebs said the existing basin is large enough to be used as two completely sepa- rate basins with a wall going down the middle. He told of benefits to such a system, such as doubling the horsepower; having a redun- dancy to be able to run one side if the other goes down; reduction of power costs; and the improvement of the effluent quality. He spoke of additional upgrades: the lift station upgrades (because currently, it is in very poor condition), and new head works screening to remove large debris and grit. Mr. Krebs reviewed the construction sequence which would be to shut the basin down during the summer when the flows are down, obtain the approval for the project in the fall, and the contractor could work on the sur- rounding area of the basin before summer comes, and then work on the basin in the summer. Mr. Krebs stated the total proj- ect cost, not just the USDA loan amount of $6.4 million, would be estimated at $8 million. Mr. Krebs said fifteen manholes in Tyson Wash were included in the project. Council Member War- ner asked how the manholes would be protected, and Mr. Krebs re- sponded that a wall would protect them so that they stay together. Mr. Krebs reviewed the project funding listing the USDA funding of approximately $6.4 million of which $3 million is grant money and approximately $3.4 million is a loan; and the WIFA loan of $1.6 million – partially expended. He said approximately 37% of the total project funding is grant funds. Mr. Krebs said the construction plans were basically completed, and the USDA has the bid documents for their review. He said ADEQ had approved the updated permits, and a schedule for the project would be made when more was known. We have great lunch menus, serving at 12 noon sharp! Suggested donation is only $3.50. There's cards, books, games, puzzles, pool table, Wi-Fi available. Community Services, Volunteers Needed! Come join the fun at Quartzsite SENIOR Center 40 Moon Mountain Ave. For more information call 928-927-6496 Senior Center open all year! Monday - Friday, 9am – 3pm

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