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News January 31, 2008
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WashCo to make history with rural sewerage system
By Ellen Williams SA Reporter

Washington County will make history when the proposed sewerage system in the McIntosh area becomes reality.

Probate Judge Charles Singleton announced at a meeting in McIntosh Town Hall, Jan. 23, "This will be the first rural sewerage system in Alabama. All other sewerage systems have been created under the auspices of a municipality. Ours will be the first truly rural system."

The group, led by Singleton and the Washington County Commissioners, has been meeting since October. The first-evertruly rural sewerage system is much closer to reality since the last meeting. William Luker of Speaks and Associates, Consulting Engineers, presented the results of a feasible study on the 23rd showing the estimated costs of the three phase system, plus a map of the service area.

Singleton reported that the Alabama State Health Department (ASHD) will allow the new system to temporarily store waste in holding tanks which will be pumped at intervals. This will be done on a "case by case basis," and ASHD will grant this permit for a year and then has authority to grant an extension. Eventually the system will construct a treatment plant.

"We will have to satisfy the Health Department that we are going to put something in eventually that will be permanent." Singleton explained.

Luker's study estimated the total cost of Phase One at $9,809.545.80. The sewerage authority expects to finance Phase One with: USDA loan -- $5,885,727.48; grant funds - $3,923,818.32; $10,000 local funds. There will be 800 customers served by Phase One. The annual note for this project (Phase 1) is $297,229.24 with a month note for $24,769.10. The average monthly bill per customer will be $39.61.

Phase Two's total estimated cost is $5,768,709.22 with the following breakdown: USDA loan - $3,454,025.53; grant funds - $2,302,683.69; local funds - $10,000. Additional annual note for the new project $174,428.29 with another $14,535.69 monthly obligation. Phase Two will serve 495 customers and the average monthly sewerage bill per customer is estimated at $37.77

Phase Three will serve 425 customers and will cost $5,543,693.50 to be financed by USDA - $3,320,216.10; grant funds - $2,213,477.40; local funds $10,000. This will add a third annual note of $167,670.91 and a third monthly note of $13,972.58. The average monthly bill to the customers of Phase Three will be $41.51.

The next important step for the sewer authority to become reality is the creation of a legal entity with a name and a board to manage it. The initial step is for five citizens of the service area to petition the county commission for the creation of said entity. At that point McIntosh City Council, McIntosh Water Authority, South Alabama Utilities and the county commission will each recommend a person to sit on this board. The county commission will appoint from the recommendations. The fifth person will be an at-large appointee from within the service area.

Jerry Luker of Speaks and Associates emphasized that the environmental study is the controlling document in getting the USDA application approved. He also said, "We can't judge the impact of private development. Sometimes there is a lot, sometimes not any at all."

Stacy McKean of Galbraith and Associates, grant writers, stressed that Luker's estimate/study is based on USDA funds only. The county commissioner will soon make a trip to Washington to lobby for the USDA funds.

Singleton said the county will be responsible for the estimated $30,000 local funds. The city of McIntosh will not contribute to the local monies. They were asked to pass a resolution stating their agreement to a joint effort with the county.

The judge said he expected the customer fees to be an adequate cash flow for the debt.

It is important to note that all of these figures are estimates and can have a margin of error of 20 percent. The group will meet next at 2 p.m., Feb. 26.
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