Written by Art Astarita, Maine State Lead
Funder: USDA Technitrain and HHS OCS
RUMFORD MAINE – Infrastructure Upgrades
RCAP Solutions was very successful in facilitating this much needed communication between the town of Rumford and the Rumford Water District which serves about 1,700 of the town’s total population of 5,840 people.
RCAP Solutions created an asset management plan for the Rumford Water District and encouraged the superintendent to share the plan with the town planner. Timing of this communication was advantageous as the town was planning a large-scale improvement to the downtown business district. Initially, the town was looking to repave the streets and to replace sidewalks, lighting and other “superficial” improvements. The sewer department and water district represented the “out of sight” infrastructure located under the business district.
The total project cost is estimated at $5 million for the downtown improvements of which the water district will reimburse the town $990,000 for its’ part of the project. Although the vertical asset analysis broadened the scope and cost of the project, the necessary replacement of water, sewer, and storm-water pipes will ensure a final product that will serve residents for many years into the future and help to attract business to a revitalized downtown. The project is expected to be completed in 2019.
BRIDGTON MAINE – Water Rate Adjustments
Normally, water rates are adjusted at a time when the utility is incurring a new debt to fund a capital improvement of the system. The new improvement is frequently planned and based upon an asset management program.
Bridgton Water District, located in western Maine, serves about 2,000 people of the 5,200 residents of the town of Bridgton. In 2017, the town of Bridgton decided to upgrade their sewer system, including reconstructing sidewalks, installing energy efficient lighting and traffic safety measures and providing an appealing streetscape. The project is estimated to cost approximately $22 million when everything is said and done.
RCAP Solutions assisted the town in conducting an income survey of the sewer users to ensure an accurate income is used to determine the system’s optimum loan and grant funding package. During the initial phases of the survey, RCAP Solutions visited the water district to ensure they were aware of the project and asked if any of the water pipes would be impacted. RCAP Solutions suggested they submit households in their impacted area to be included in the income survey. Unfortunately, the water district was not prepared and subsequently not ready to make such decisions. The survey was completed in January 2018 and revealed that the median household income (MHI) of the project area qualifies for at least a 50% grant from the USDA Rural Utilities Service (RUS). In November 2018, the town authorized issuing a general obligation bond or note not to exceed $13,528,000 to fund the balance of the project.
In December 2018, the water district had their engineering firm estimate water pipe impacts within the sewer project area. It was estimated that $600,000 of pipe should be replaced during the sewer work. This cast iron pipe replacement is mainly due to age and construction work in immediate proximity. The water district inquired to RCAP Solutions about the survey coverage and if there could be a subset of the survey that covered the water users within the sewer survey. Upon analysis, there were still 22 households requiring response within the 43 water-user household target area. The water district thought it would be best and most efficient to canvas the households themselves. Due to the sensitive nature of the questions (“what is your household income?”), many did not answer. RCAP Solutions recently spoke to RUS and it was determined that the town and water district specifically already qualifies for up to 45% grant funding. Since there is not an imminent health hazard, there is no possibility of a lower rate or additional grant percentage.
The District is working with the engineer to complete the RD-apply application process for the 2020 construction season for this project. Once the application is submitted and approved, the District will realize the funding assistance available and RCAP Solutions can complete the rate adjustment to fund repayment of the new debt.