City Council approves loan package for WPCP expansion
City Council June 29, 2022
PICKENS COUNTY, Ga. — The Jasper City Council held a special called meeting on June 29, 2022 to approve a USDA Rural Development loan package that will allow the city to move forward with their Water Pollution Control Plant expansion project.
During June’s council meeting, Assistant City Manager Kim Goldener explained that bids for the Water Pollution Control Plant expansion project came back unexpectedly high, leaving the city in need of over $11 million in additional funding. Goldener also told the council that reapplication for further funding from the USDA would be necessary. The urgency of that reapplication was also stressed because interest rates were set to change after July 1, 2022.
On June 29, 2022, Mayor Steve Lawrence noted the council was meeting in “emergency circumstances” to approve the new loan package, which would “allow the city to lock in a lower interest rate for the additional funding before rates change on July 1, 2022, and allow the city to continue to provide this service.”
Goldener discussed the USDA RD loan package with the council.
“I am pleased to announce they were able to provide us additional funding,” Goldener said while speaking to the council and representatives from the USDA. She shared that the city will receive two more loans from the USDA, totaling $10,879,000. Goldener explained that there is a $10 million limit on USDA loans, so the additional funding is divided into two loans of $9 million and $1,879,000. She then noted that the two new loans will bring the city to a total of three for the project and “will require three bond issuances.”
“Should council decide to proceed with this,” Goldener said, “there are some documents USDA will need this evening in order to obligate funds in time to meet that before July 1 deadline when rates change.” Those documents include two new requests for obligations of funds, the execution of a loan resolution for each loan, and a letter of intent to meet the loan conditions, according to Goldener.
Goldener also discussed the payment of the loans: “With all three loans we’re looking at $43,112 a month. We will also be required to pay $4,311 and some change each month into a debt reserve account.” She clarified that the loan term would be forty years and the debt reserve payments would be made for ten years.
Before moving to vote, City Manager Sonia Jammes said: “This is something that we definitely need to process with. I would like to take a moment to commend Kim [Goldener] on such a great job at spearheading this and pulling staff together and getting all the data that she needed, and that we needed, so that we can proceed in this endeavor.” The council then voted unanimously to approve the loan package.
City needs additional $11 million to complete Water Pollution Control Plant expansion
City Council June 7, 2022
PICKENS COUNTY, Ga. — After receiving bids for the Water Pollution Control Plant expansion and sewerage system improvements project, the Jasper City Council approved the redistribution of ARPA funding and a reapplication for additional USDA funding. The unexpectedly high bids left the city over $11,000,000 short of the total funding necessary to complete the projects, according to Assistant City Manager Kim Goldener.
Assistant City Manager Kim Goldener discussed bids received for the WPCP expansion and a sewerage system improvements project. “Unfortunately, the bids came back significantly higher than, I think, anyone was anticipating,” Goldener told the council, “but these are needed. It’s a needed project. We must do this work.” She read the low bids for the plant expansion and sewer system improvements project that totaled $14,051,781.52 and $3,197,632, respectively.
While the city will enter renegotiations on the sewer system improvements project, Goldener said “we do need to go to USDA, though, and ask for additional funding.” She explained that the current funding the city has received, whether in grants or loans, is over $11,000,000 short of the necessary funding to complete the project. Goldener did say, however, that number will decrease after the city’s redistribution of ARPA funding.
In an earlier discussion, City Manager Sonia Jammes explained to the council that the city was set to receive $1,484,036 from The American Rescue Plan Act (ARPA) that was passed in 2021. She further explained that the city would receive the funding in two portions, with the first, totaling $742,018, being received in October 1, 2021. Jammes said the initial funding was originally approved for an automated metering project, but the council had decided to designate metering as a service. Because the ARPA money is no longer set to be used for the project, the council voted to redistribute it towards the upcoming Water Pollution Control Plant (WPCP) expansion.
The city will also reapply for additional funding from the Department of Agriculture, Goldener said, before interest rates are set to increase on July 1, 2022. She explained that additional funding received by the USDA is typically provided as a loan, but added the USDA has said “they will look at what additional amount, if any, could possibly be given as grants, because they know that this additional amount will be a burden.” The city council approved both the tentative award of contracts for the WPCP expansion and sewerage system improvement project, as well as the resolution allowing the reapplication.
Other Business
During the June 6 meeting, Assistant Police Chief Mike Davis was sworn in by Police Chief Matt Dawkins. Chief Dawkins then introduced the new Assistant Chief to the council, calling him a great addition to the City of Jasper. Dawkins also noted that Davis has 21 years of experience in law enforcement and has worked with both East Ellijay and Fannin County. The council also oversaw the recognition of Greg Buchanan who recently received his GED, and approved a $15,400 payment to A&S Environmental Services to explore the possibility of additional groundwater wells in the city.
Jasper approvese $7.7 million for water treatment expansion
City Council, Community April 28, 2020
The Jasper City Council approved an $7.725 for water treatment expansion. The money, a combination of a loan and grant is with the Department of Agriculture at Tuesday’s called meeting.
The loan for $4.748 million, and the grant for $2.977 million will fund the upgrades to the water plant. Interest on the loan will be 1.375-percent. The city’s monthly payment will be $12,868.
Chris Poje said the interest rate was incredible.
“I haven’t seen it that low in 30 years,” he said.
The city will have to borrow the money from an interim lender, such as a local bank. The USDA will reimburse the interim lender.
To learn more about the City of Jasper Water and Sanitation, visit here.
He said the money would pay for expanding water services in Jasper to meet current and future needs. Included among the plans are doubling the capacity to 1.6 million gallons from 800,000 gallons.
The structures were laid out conceptionally about 40 years ago, said Poje. Another part of the project will include moving the discharge water from a tributary of Pole Cat Creek to Long Swamp Creek. This will take care of a couple of issues, said Poje.
“Pole Cat Creek is a trout stream, and will eventually require permits and a certain temperature for water to be discharged into it,” he said. This would end up costing the city more money. Long Swamp Creek is not a trout stream, which would eliminate those future fees.
Because Long Swamp Creek is where water is currently drawn from, there are limits in place, by placing the discharge down stream of the collection, that will keep the creek levels consistent.
To read about Jasper’s recycling plant, read FYN’s story here.
“I know that’s not related to waste water, but it is related to drinking water. You are limited to how much you can take out from the creek,” said Poje.
Other projects include adding another aeration base and two more clarifiers, doubling the filters. There will also be $15,000 alloted for the purchase of land.
“We already had provisions in place for the filters and a pump station and second sludge holding tank,” said Poje. “That’s about as far as $8-million will take you these days.”