Item Coversheet
 REQUEST FOR COUNCIL AGENDA
The City of Hartsville 
Agenda Date: 
9/8/2020

To: City Council

From: City Manager


Ordinance Number:   Resolution Number: 09-20-02 - REGULAR MEETING


ORDINANCE/RESOLUTION CAPTION: 
APPROVAL TO APPLY FOR A SOUTH CAROLINA RURAL INFRASTRUCTURE AUTHORITY GRANT


BACKGROUND SUMMARY: 

This project is a priority for the city's capital improvements plan (infrastructure) and proposes to install a well on the high pressure side of the city's water system.  Currently, the well at the low pressure side serves the high pressure zone and is reaching the end of its useful life.  There are two wells that produce 90% of the city's drinking water.  If either of these two wells fail, the city would be unable to produce enough water to supply demand.  Once the tanks emptied, there would be little fire protection. Since these wells have outlived their useful life, repairs are continuous.

SCDHEC has included this project in their 2021 Provisional Project List for the SC State Revolving Loan Funds.  This RIA grant along with these SRF funds (still in public hearing phase) would fund the project if awarded.



IMPACT IF DENIED: 
Repairs will continue to be costly until one of the two wells experiences a total system failure.  Construction costs at that time would be several hundred thousand dollars more as we have seen them rise over the last two years.  In addition, the city would be placed in a vulnerable position not being able to meet demand or provide fire protection.  


IMPACT IF APPROVED: 
If approved by council and RIA, the city would receive the grant award notice around the time that SCDHEC would approve the SRF allocation of funds.  If not approved, the city would need to find a way to fund this project within the next year or two, prior to system failure and rising construction costs.


FINANCIAL IMPACT: 
Total project $1,497,000.  RIA grant $500,000 and SRF loan funding $997,000 (contingent upon October approval).  These two funding sources work closely together to fund critical infrastructure needs.

ATTACHMENTS:
Description
Resolution 09-20-02