Council directs rate review after FEMA BRIC cancellation leaves $66 million financing gap for water plant

Grants Pass City Council members directed staff on May 1 to begin a formal rate review after staff said the city must borrow roughly $66 million to complete the replacement water treatment plant following the April 4 cancellation of FEMA’s BRIC program.

City staff presented updated costs and financing options for the replacement water treatment plant, including a previously approved guaranteed maximum price (GMP) of $98,817,005.74 and a revised estimate for remaining construction and related costs. Jason, the city’s staff presenter on the project, told the council that the BRIC cancellation removed $50,000,000 from the project plan and that staff have since refined intake structure costs and other scopes. He said the intake work was estimated at $9,240,000 (a 30% estimate) and the team has identified remaining funding sources and gaps.

The financing picture, as presented, includes a mix of cash on hand, confirmed and uncontracted loans, grants and future deposits. Jason said the city has about $24,000,000 in cash, confirmed Business Oregon loans totaling roughly $4,000,000 and other expected sources such as congressionally directed spending and state drinking‑water loan funds. After accounting for those items and expected…