HomeMy WebLinkAboutSo Co Well Testing ProgramCommunity Development Department
Ptanning Division Building Safety Division Environmental Soils Division
117 NW Lafayette Avenue Bend Oregon 97701-1925
(541)388-6575 FAX (541)385-1764
http://www.co.deschutes.or.us/cdd/
MEMORANDUM
To: Board of County Commissioners
From: Tom Anderson, Director
Date: September 26,2011
Re: South County Well Test Funding -Groundwater Partnership Fund (296)
BACKGROUND
The United States Geological Survey (USGS) work with respect to southern Deschutes County
groundwater included predictive models which assessed cumulative long term impacts of
nitrates entering area groundwater. The models estimated the directional flow and volume of
nitrates over time and their potential impacts on area drinking water resources. The data fed into
the models was derived from a variety of sources, including samples taken from approximately
130 wells throughout the study area at different times during the course of the work. In order to
assess the predictive accuracy of the models as well as update the future estimations of nitrate
contamination, the study also recommended that additional well sampling be done in
approximately seven to ten year increments.
The Advisory Committee working with the Department of Environmental Quality (DEQ) is very
interested in a new round of well sampling and has urged DEQ to undertake the work. However,
DEQ is under severe budget constraints and has indicated that no funds are currently available.
DEQ has prepared a possible well sampling scope of work and believes that a smaller set of
well samples of approximately 70 would provide adequate data to accomplish what is required.
Total cost of the project, including sample collection, lab analysis and interpretation is estimated
at $25,000.
COUNTY FUNDING
The Groundwater Partnership Fund (296) was created to account for revenues derived from the
Newberry Neighborhood in the City of La Pine, including land sales and Pollution Reduction
Credit (PRC) assessments. Use of the money is intended to provide financial assistance to area
property owners in reducing nitrates entering the groundwater, as well as other projects which
would assist in reducing nitrate contamination on a broader level. Over the past several years,
in addition to providing low interest loans to homeowners required to install nitrogen reducing
Quality Services Performed with Pride
septic systems, and issuing cash rebates to those who have done so, Fund resources have
been used to help fund a sewer feasibility study in the Sunriver area. In the opinion of staff, well
sampling to support an updated assessment of nitrate contamination is therefore an appropriate
use of resources from Fund 296.
As development within the Newberry Neighborhood has stagnated within the regional slowdown
in new home construction, no new monies are accruing to the Fund at the present time, and it is
not anticipated that new revenue will be forthcoming in the near future. Thus, in committing
resources to well sampling, the Board must understand that funds designated for other
purposes, primarily financial assistance, will be reduced. Attachment A provides an analysis of
money currently available in Fund 296, and what the impact would be of designating funds for
well sampling.
The Newberry Neighborhood Fund (297) was created to ensure that the County has adequate
resources to meet debt service requirements on bonds that were in part issued to help finance
the expansion of the La Pine sewer plant to serve the Newberry Neighborhood. In addition, as
capital improvements may be necessary in the future to prepare the Newberry Neighborhood for
continued development, Fund 297 also reserves money for this anticipated purpose. However,
the Board may choose to transfer funds from Fund 297 to Fund 296 to support well sampling, if
it determines that adequate reserves are in place to accomplish the two objectives outlined
above. Attachment B provides an analysis of resources currently available in Fund 297.
BOARD DIRECTION
It is requested that following discussion, the Board provide direction to staff in the use of Fund
296 resources for South County well sampling, either directly from Fund 296 or in combination
with Fund 297.
Attachment ~
V.2: PRe Purchases & Sunriver FY 2011
SeDt. '11 Feasibility + Well Testing FY 2007 FY 2008 FY 2009 FY 2010 Actual FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Beginning Net Working Capital
Transfers In -NPA Land Sales
Transfers In -NPA PRC Fallback (1)
DEQ loan -SR Feasibility
COCIB grant
EPA Grant for loan program (2)
Interest (3)
Total Revenues
$ 92,469
359,109
5 1348
456,926
$ 456,926
20,507
477,433
$ 477,433
12,689
490,122
$ 486,556
25,000
5,083
516,639
$ 291,360
40,000
1/49
333,109
$ 224,113
1,250
225,363
$ 81,195
750
81,945
$ 22,745
75,000
250
97,995
$ 13,795
150,000
250
164,045
$ 4,845
250,000
375,000
250
630,095
$ 371,095
380,000
1,000
752,095
PRC Purchases (4) 101,250 48,750 50,000
Direct assist.lloans to prop . owners (5) 60,000 60,000
Sunriver ;{DEQ Loan Payments (6) 246 9,168
Feasibility County payment Sunriver Feasibility (7) 3,566 124,029
Well Sampling -2011 25 ,000
Total Expenditures 3,566 225,279 108,996 144,168
Ending Fund Balance 456,926 477,433 486,556 291,360 224,113 81,195
Notes & Assumptions:
(1) Number of PRCs paid for by developer/builder using fallback price of $7,500 (N1/N2):
(2) These grant funds specified for loans to property owners.
(3) Assumed 1 % interest rate beginning FY 2009
(4) County PRC purchases assumed to decline when NPA developers begin purchasing credits again
Number of PRCs purchased by year: 27 in FY 2010,13 in FY 2011,14 in FY 2012, and 7 in 2013.
(5) Assumed assistance fund is capitalized using 80% of the fund balance beginning in 2012. FY 2010 & 2011 are capitalized at a flat rate.
Number of households served per year at $9,000-$16,000 per upgrade: 4-5 4-5
(6) DEQ Loan assumed terms: 1.25% interest, max repayment period is 5 years
(7) The County payment for the Sunriver Feasibility study includes $65,000 granVloan funds and $62,500 of county funds.
25,000
25,000
9,200
59,200
22,745
2-4
75,000
9,200
84,200
13,795
5/5
5-8
150,000
9,200
159,200
4,845
10/10
10-15
250,000
9,000
259,000
371,095
25/25
15-25
750,000
750,000
2,095
25/25
50-75 158
283
Attachment B
Sept. '11 Fund 297-New Neighborhood
FY 2010
Actual
FY 2011
Actual FY 2012 FY 2013 FY2014 FY 2015 FY 2016 FY 2017
Beginning Net Working Capital $ 237,178 $ 443,827 $ 465,878 $ 408,107 $ 349,896 $ 216,043 $ 156,623 $ 71,552
Land Sales -Pahlish
Land Sales -LPUSD
Sewer SDC's-LBUSD
Sewer SDC's-Deschutes Lodge
18,765
171,000
74,100
79,999
350,000
Interest 4,291 3,235 3!550 3!000 2,500 2!000 1,500 750
Total Revenues
Bond Debt Service
Future Capital Improvements (1)
Fees & Permits
Transfer to Fund 296
505,334
61,107
400
527,061
61,183
469,428
61,321
411,107
61,321
61,211
352,396
61,353
75,000
218 1043
61,420
508,123
61,571
125,000
250,000
72,302
61,631
Total Expenditures
Ending Fund Balance
Notes & Assumptions:
61,507
443,827
, 61,183 61,321 61,211 136,353
465,878 408,107 349,896 216,043
(1) Related to New Neighborhood -May include traffic improvements, water/sewer infrastructure, perimeter trail.
61,420
156,623
436,571
71,552
61,631
10,671