Committee reviews finance options for line
Posted on Thursday, October 2, 2008
ELKINS -- Members of the Elkins Water and Sewer Committee along with city consultant Steve Davis met Thursday with Dave Fincher of Arkansas Natural Resource Commission to discuss improvement funding for a new main water line.
Davis reviewed the meeting with the committee Thursday afternoon. "We asked for $ 4 million so we can do entire water line along Highway 16. We gave him the population and customer forecast and explained that what Elkins is trying to do is replace its water backbone."
Davis said he and committee members also talked to Fincher about the manholes problem," so we can knock the excess flow problem down."
He explain two possible programs for the city -- a federal program with 2. 5 percent interest with a 12 month time table as the city takes bids, has engineers oversee the project and three levels of environmental reviews.
The other program has a higher interest rate but no environmental review, which Davis and Committee chairman Mike Lemaster agree was probably not needed since the new water line consisted of moving the line from the ditch along Arkansas 16 to the edge of the ditch.
You could take the higher interest rate and get started now," Davis said. "With inflation costs with materi- als going on up you could be looking at an increased construction cost, so the difference in the two interest rates wouldn't make a big difference. "The higher interest rate with the state would be 4. 75 percent interest.
Committee member Fred Tober said the numbers would need to be crunched but he didn't want to wait a year for all that had to be done with the federal program.
"The reason the federal rate is low is because they know there's more paper work that has to be done," Davis said. "I think when we do a financial analysis, we'll come out about even."
"I would hate to jump through hoops for a year to get the lower rate and then know there's more to do," Tober said.
Vice chairman Joyce Bunch said she preferred the state plan with the higher interest rate.
Mayor Jack Ladyman said the punctured tires on the city's vehicles, which included a water utility pickup, backhoe and a new New Horizon tractor totaled $ 2, 700. "I did get a price for tubes and boots for $ 970," he said. A discussion followed on which would be best.
"This is the second vandalism in four months," Lemaster said. "All hydraulic hoses were cut on one truck -- now the tires. This is an attack on the citizens of Elkins."
Bobby McGarrah said he would check the tubes out for the tractor -- if it would work on it -- and check other prices.
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