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Engineers outline $12 million plan to replace Bear Creek pump station; USDA Rural Development funding pursued
Summary
Engineers told the board the Bear Creek pump station and its force main require replacement after repeated leaks and a spill of about 1 million gallons; preliminary cost estimate is $12 million and staff will pursue USDA Rural Development funding, which could include long-term low-interest loans and potential grant assistance.
Consultants from Willis Engineers told the Mocksville Town Board the Bear Creek pump station and a 3'to-4'mile force main to the wastewater plant have a history of leaks and repairs and should be replaced.
"Last year we had a spill that was somewhere around a million gallons of sewage," Chuck Willis said, describing a failure in the existing pipeline that was largely contained in a farmer's pond. Willis gave a preliminary cost estimate of $12 million for replacing the pump station and force main and noted additional improvements will be needed at the downstream treatment plant to receive the upgraded flow.
Willis said the town selected his firm to help develop the substantial USDA Rural Development application the project will require. He described USDA's Rural Development program as a source for large-scale water and wastewater financing with long-term notes (40' and 50'year options) and the potential for partial grant funding (he said USDA may provide at least 25% grant funding in some cases). The consultant cautioned that USDA's application process is intensive, requiring a preliminary engineering report, an environmental assessment and other documentation; he estimated a rolling process and federal award decisions could take about 15'16 months.
Willis also noted that much of the required environmental and engineering work is tailored to USDA application requirements and might not carry forward to other funders if USDA declines to award funds. His firm will coordinate with Hazen and Sawyer for technical support and the manager indicated an initial budget item will be included to fund the application phase.
Why it matters: The pipeline failures include a major spill and repeated repair costs; replacing the pump station and force main is a large capital project affecting wastewater reliability and environmental risk. USDA financing could reduce borrowing costs for the town but requires lengthy application and compliance work.
What's next: Staff proposed including an appropriation in the upcoming budget to fund initial application work. The board received the update; no formal action was required at this meeting.
Quote: "They offer very long-term financing, 40 and 50-year notes, and they do it at extremely low interest rates," Willis said of USDA Rural Development.
