SIERRA BROOKS WATER SYSTEM Improvements Assessment District presentation of the Assessment Engineer’s Report was given at the Sierra County Board of Supervisors’ meeting held in Downieville on Tuesday, August 7th. Sierra County Planning Director Tim Beals gave a brief introduction on the topic and stated the document once approved will establish the beginning of the completion of this project in order to use the funds by April of 2019. He said the timeframe has been established by USDA, which will allow them to use the once in a lifetime opportunity to have a very high leverage grant with a 39-year pay back at a rate just above 2%. Beals explained there are five steps remaining. First step is the approval of assessment engineering report, then establishing the assessment that will be required from all Sierra Brooks residents. Beals asked the board to just receive the report and hold over any action until the next meeting in Loyalton to provide Sierra Brooks residents the ability to attend. He said once the report was adopted, special counsel, John Cristy, will move the process forward and perfect the implementation debt service on the loan. Beals continued and stated the 3rd step will require the Board to amend its ordinance of governing water delivery in Sierra Brooks and all questions will need to be outlined in ordinance. 4th step will be the operations and maintenance side of the grant. He said they are predicting the combined total for debt service and operations and maintenance at $50-$60 a month for water, adding it could be lower. Beals stated what constitutes final numbers is the adoption of the engineering report which will be translated into the assessment, costs to maintain the structures, and are building in additional costs for additional maintenance of capital improvements, and for the Treasurer-Tax Collector to take on billing. All of which will need to be put in an operations budget, but felt the total number will be very competitive. He said the last step would be getting construction drawings in a position to be approved by the Board to go out for public bidding and be in a position for construction contract early 2019. Beals concluded by stating he feels they are on a good track, but need to be proactive and diligent to keep these steps moving. Beals introduced Keith Knibb of Sauers Engineering. Knibb stated Sierra County hired them in to 2007 to do an engineering report. He said the preliminary report was amended in 2013 and again in 2018, each time reflecting construction costs based on requests by USDA. Knibb stated an assessment district had to be used because project funding is being provided by USDA Rural Development and they require as security for the loan an assessment district be created. USDA will issue bonds for the funding. Total project funding is $3,783,034.00 and of that $2,125,000.00 is the amount of the loan and USDA also requires a 10% debt service reserve. Total annual payment is $90,387.16. Board Chair, Scott Schlefstein, was happy to see solid numbers to look at and asked Knibb to come to the next meeting on the 21st in Loyalton to answer questions Sierra Brooks residents might have.
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