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Village Vision News

Project stalls while waiting for financing

Thursday, June 30, 2011

Construction startup remains in limbo for an eight-mile water pipeline from Forsyth’s water treatment plant to a midpoint between Greenswitch and Brush College roads.

“Oreana has not yet awarded a construction contract. We recommend Forsyth hold their bids until Oreana takes action,” Village Engineer Chuck Hunsinger advised trustees during a June 6 Board meeting. Village Administrator Heather Kimmons said it was questionable at this point whether Oreana has the financing in line to award a bid for its portion of the project.

The pipeline extension is designed to serve 300 homes in Oreana and is in fulfillment of a 2007 water purchase contract that would allow Oreana residents to purchase water at the same rate as Forsyth residents. Government officials encouraged regionalization after the Village received $500,000 in federal monies to help pay for the construction of its $5.9 million water treatment plant.

In the intervening years, costs for the pipeline’s construction have escalated with the estimated cost placed at $487,400 in 2010. Both communities worked to gain land easements, and Forsyth trustees budgeted $552,000, more than 40 percent of its 2011-12 capital budget, for completion of the project this fiscal year. The Village has received six bids for its portion of construction and engineering costs for the project.

Kimmons said the Village will have to formally reject the bids received if Oreana is not able to come up with sufficient financing. “There is still some hope that they may obtain the financing, and we can continue to hold the bids open for another month,” she said.

In the meantime, trustees concurred with her suggestion for a resolution requiring Oreana to pay Forsyth for all costs associated with bidding out the water line project if that community fails, in a timely manner, to provide financing that would award a bid for its portion of the project.

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