Richland Creek Water Supply Program Bid Recommendations Paulding County, Georgia Board of Commissioners Work Session February 23, 2016

2 Bid Award Item 2 – GA 61 Improvements and Entrance Road Project Project will install a shoulder and turn lane on 61 to provide safer access Joint use entrance road for the WTP and Park Access Clearing of the WTP site and stockpiling of 350,000 CY or material to be used for the Dam Will allow the Reservoir contractor an WTP contractor to begin immediately once authorized in August

3 Bid Award Item 2 – GA 61 Improvements and Entrance Road Project

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7 Bid Award Item 3 – Timber Harvesting Timber rights were part of the sale of the property Due to the sensitivity to water quality impacts County elected to administer harvesting and offset the cost of the timber rights payable to the seller of the property. Program Consultant Coosa Forestry developed sale and will oversee contractor Contract is based upon actual tonnage harvested Two initial areas harvested – remainder will be harvested toward the end of reservoir construction.

8 Bid Award Item 3 – Timber Harvesting

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10 New Business Item 4 – Rate Resolution Rate Increase necessary to support RCR Program implementation County has developed a Financial Plan for the program Having a multi-year rate adjustment in place will assist in getting lower rates and obtaining financing for the project beyond what has been received by GEFA

11 New Business Item 4 – Rate Resolution Water rate increase of 4.75% annually in addition to any rate increase set forth by CCMWA. Sewer rate increase of 4% annually. These annual rate increases are effective for five (5) years beginning January 1, 2017 to fund the RCR program. Includes the following Monthly Base Rate Charge Changes Residential, dollars per month Commercial and Irrigation, dollars per month Base Charge effective January 1 Water Sewer Water Sewer 2017$6.00$2.50$9.00$ $6.00$2.50$9.00$ $7.00$3.00$10.00$ $7.00$3.00$10.00$ $7.50$3.00$10.50$6.00

Long-Term Customer Impacts Average monthly water bill for a customer using 4kgal per month

GEFA Loans 13 GEFA Loan NumberAmount Interest Rate Term First 3 years after initiating Drawdown 3 years after initiating drawdown until Project Completion After the earlier of Project Completion or 10/1/21 WS12L13WR $ 29,100,0000%1%1.82%40 Years WS13L04WR $ 21,600,0000%1%1.40%30 Years WS14L03WR $ 6,000,0000% 2.03%40 Years WS15L01WR $ 8,206,2500% 2.03%30 Years

14 GEFA Loans GEFA Updated to provide more favorable conditions for Paulding County: 1.GEFA has updated project description and budget to allow Paulding County to draw down one loan at a time. 2.Paulding County can draw down this loan completely before using local funds, 3.GEFA has extended the deadline for the first draw from 6 months after execution to 24 months after execution. 4.This loan will not go into repayment until the earlier of (1) the completion of the transmission project and all other components of the Richland Creek Reservoir or (2) October 1, 2021.