Wastewater board finds uses for federal funds

Two projects benefit from Corps money

Clogged in a “use it or lose it” funnel on federal funds, the DeSoto County Regional Utility Authority board this week voted to obligate $1,161,000 through the Corps of Engineers toward two timely wastewater projects totaling $5.4 million.

The projects include an effluent pipeline tying the Short Fork plant and the Coldwater River, and closeout of three offline western facilities.

Set for closure under the funding plan are the old Walls, Twin Lakes and Lake Forest plants whose functions have been absorbed by the $13.8 million Johnson Creek treatment facility that began taking flow in 2013.

The projects were recommended by the board’s technical committee. The panel reviewed various “scenarios” ranging from an $18 million expansion of the Short Fork treatment plant in eastern DeSoto County — to double flow capacity to 8 million gallons a day — to closeout only of the three western facilities at an estimated $2,326,972.

The options urged, committeeman Wade Carter told fellow board members, fit available funds and have deadlines that could be costly if unmet.

The closeouts, including all sludge removal and dirt replacement, have to be completed by the end of 2015, noted board president B.J. Page, while the outflow line to the Coldwater River is a priority to address new rules that will be in effect in 2016.

The latter project, a prelude to Short Fork plant expansion, would end flow to Short Fork Creek, a move “encouraged through regulation” by the Environmental Protection Agency and the Mississippi Department of Environmental Quality, said consulting engineer Tracy Huffman of the Waggoner firm. The authority “could continue to discharge into the creek, but it would be more costly due to new filters and other requirements,” Huffman said.

When the authority began operating a decade ago, “the Corps would let us bank money until we had enough to do a project,” said Page. “But now, whatever we get, we have to obligate by the end of the fiscal year.”

The award of $1,161,000 from Corps general construction fund was announced by U.S. Sen. Thad Cochran, R-Miss., in March while a county team that included Huffman and utility authority executive director Bill Austin were meeting with the lawmaker and other members of the state’s congressional delegation.

“I think it’s a good move that matches funds available,” Huffman said of the selected scenario. “It’s not all that we wanted, but we can move forward.”

Work is expected to proceed this summer on the closeouts. While funds for the Coldwater line will be obligated this fiscal year that ends Sept. 30, work will extend to next year “so we possibly can add some funds” from noncounty sources, said Page.

The projected total for the projects is $5,404,339, with the county portion needed — the nonfederal share — at $4,243,339. The latter amount is requested as a loan from the State Revolving Fund.

Annual debt service is estimated at $260,249, with the rate impact forecast as a 13-cent increase to the treatment fee of $3.19 per 1,000 gallons of treated wastewater charged to the authority’s five municipal customers: Olive Branch, Southaven, Horn Lake, Hernando and Walls. The authority has no control over how much each city, in turn, may charge residents or businesses.

Board member Barry Bridgforth lamented that the projects, while worthy, “are not revenue-producing.” He pointed to the Lewisburg area of eastern DeSoto County and its school district “as the hot ticket now” for development, and urged consideration of a gravity line from Byhalia Road to the Short Fork plant to meet anticipated needs. Page asked for some preliminary cost estimates “so we can look at options.”

In other matters, the board approved biosolid disposal contracts with the Denali and Synagro firms and was pleased to get an Oct. 1-March 31 utility budget summary and flow report that showed revenue for the period at $3,960,834, or 58 percent of the total fiscal 2014 forecast of $6,802,698. After expenses, net income for the six months was $1,113,605, well above the forecast total of $392,248 for the entire year.

Board member Donnie Chambliss, a Southaven Realtor, said he was glad to see requests for wastewater tie-in permits from two developments — Hawks Crossing Phase 3 and Retreat at Center Hill. He said this reflected an ongoing rebound in recent months of housing activity, long chilled by the recession.

For more information, visit eaa.org.

Toni Lepeska