Engineer Explanation of CIP Final Amount (CIP Attached)
Newport MUD Capital Improvement Plan – Explanation of Increase from the Draft Amount of $53,000,000 to the final amount of $70,000,000
June 25, 2019
The Draft Newport MUD Capital Improvement Plan (CIP) was presented to the Board of Directors at the Newport MUD Special Meeting on June 25, 2019. All potential projects identified by the District’s Operator, Engineer, Lawyer and Directors were listed, as was the vetting process to determine the priority of need. Projects which were deemed necessary in years 2020 – 2030 were included in the CIP. The Draft CIP included funds –
- To purchase new water, sanitary & drainage systems in the new housing developments,
- To fulfill the District obligation to provide water & sanitary sewer service to the Compass Tract Defined Area & HCMUD #525
- To expand the wastewater treatment plant,
- To Rehabilitate approximately 30% of the sanitary sewer system and all of the lift stations,
- To construct an approximately 2,000 square foot District administration building
- For 10% of construction cost contingencies
- For engineering services to include all planning, design, plan development, bidding and construction phase services
- For bond issuance costs
As explained to the Directors, the potential expansion of the District’s Surface Water Plant within the year 2020 – 2030 timeframe had not yet been evaluated in light of the new projections of connections. This would be completed and submitted to the Board at the August meeting.
In June, the District had a balance of $8,090,000 of voter approved bonds. An additional $53,000,000 of voter authorized bonds would be needed to fund the approximately $61,000,000 of expected projects identified in the CIP.
August 15, 2019
From June to August, the evaluation of the projected connections and the District’s Groundwater Reduction Plan revealed that the Surface Water Plant would need to be expanded no later than year 2025. Additionally, an evaluation the water quality results for one of the District’s water wells resulted in a determination that funds should be established for a replacement water well. The result of these projects increased the need of voter authorized bond funds from $53,000,000 to $70,000,000. The new potential new bond authorization and the $8,090,000 of existing authorization would fund approximately $78,000,000 of expected projects.
William G. Rosenbaum, P.E.
Vice President – Lockwood, Andrews & Newnam, Inc
Engineer for Newport MUD