The Fremont Sanitation District is considering a pair of options to complete the financing package for the proposed North Canon Sanitary Sewer project. Sanitation District Manager George Medaris presented a progress report on the project to the Fremont County Commissioners at the board's November 13th meeting.
Medaris said the latest cost estimate for the North Canon sewer project has increased to $2,949,417. He said the escalated cost is due to a central vacuum system that would be needed to make the gravity flow sewer functional on at least 27 homes in the north Canon area. Medaris said the sewer lines would flow to a pot where it would be drained by a switch activated vacuum.
The Sanitation District has already secured a $600,000 Community Development Block Grant from the Colorado Department of Local Affairs to assist with the project. The rest of the $2.94 million project will have to be financed through a mix of grants and loans.
Medaris said he has been talking with the Rural Development agency about federal grants and loans. He said based upon a 25 percent grant from Rural Development, the rest of the project would have to be financed through a loan with an estimated payoff of $61.77 in monthly sewer fees for each residence. Medaris said that amount is still within the $62 maximum monthly cost listed in the residents' contract agreements.
The other alternative financing being explored is through the Colorado Water Protective and Development Association. But Medaris said because that agency requires any loans be paid off within a 20 year period the monthly charge would climb to over $75 which is outside the maximum cost listed in the contracts.
Medaris said next March is probably the earliest the proposed North Canon Sewer project could come before the county commissioners for a public hearing to consider formation of a public improvement district. Medaris also said that if everything stays on schedule the earliest that construction could begin would be in June of 2008.
Medaris said the latest cost estimate for the North Canon sewer project has increased to $2,949,417. He said the escalated cost is due to a central vacuum system that would be needed to make the gravity flow sewer functional on at least 27 homes in the north Canon area. Medaris said the sewer lines would flow to a pot where it would be drained by a switch activated vacuum.
The Sanitation District has already secured a $600,000 Community Development Block Grant from the Colorado Department of Local Affairs to assist with the project. The rest of the $2.94 million project will have to be financed through a mix of grants and loans.
Medaris said he has been talking with the Rural Development agency about federal grants and loans. He said based upon a 25 percent grant from Rural Development, the rest of the project would have to be financed through a loan with an estimated payoff of $61.77 in monthly sewer fees for each residence. Medaris said that amount is still within the $62 maximum monthly cost listed in the residents' contract agreements.
The other alternative financing being explored is through the Colorado Water Protective and Development Association. But Medaris said because that agency requires any loans be paid off within a 20 year period the monthly charge would climb to over $75 which is outside the maximum cost listed in the contracts.
Medaris said next March is probably the earliest the proposed North Canon Sewer project could come before the county commissioners for a public hearing to consider formation of a public improvement district. Medaris also said that if everything stays on schedule the earliest that construction could begin would be in June of 2008.