McLean County Regional Water Consolidation Project

On the Green River in the 1971 John Prine Folk Song “Paradise” Won't you take me back to Muhlenberg County Down by the Green River where Paradise lay Well, I'm sorry my son, but you're too late in asking Mister Peabody's coal train has hauled it away Population: 9500 MHI: $30,000 Per Capita Income: $16,000

McLean County

Six Water Providers in County Cities of Calhoun, Livermore, Island and Sacramento North McLean Water District and Beech Grove Water Association

Issues One 80 Year Old Plant - Out of Compliance One Plant with Limited Capacity Costly Operations with Poorly Trained Operators Inconsistent Medium to the High User Rates Out of County Wholesalers Raising Rates Lack of Control Over Treated Water Supply

KY CDBG Program Split of Funds 2016 Amount for Distribution 22,519,635 Public Facilities 6,600,000 Economic Development 4,400,000 Housing 3,000,000 Community Projects 5,419,635 Public Services 3,100,000 Community Emergency Relief Fund T B D

Public Facilities Program Area Priority Given to Water and Sewer Projects Project Selection is Competitive - 50% of Applications Funded Projects Ranked Based on Project Need, Project Effectiveness and Necessary Use of Funds $1,000,000 CDBG Participation Ceiling 50/50 Match CDBG to Other Funding

Community Goal and Initial Steps “To serve as the sole source of treated water for all citizens of McLean County” Mayors Began Meeting Regularly to Discuss Water Needs Beech Grove Water Association and McLean County Water District Join Meetings Consortium Created and Interlocal Agreements Signed Consortium Issued RFQ for Water Needs Assessment Consortium Received $150,000 from Kentucky Infrastructure Authority for Assessment Assessment Completed Meetings With Regional Providers Public Forums PER Completed Regional Water Commission Created Funding Applications Submitted

Water Needs Assessment Project Planning Water Needs Assessment Phase I – Rehab or New Construction - Which Communities Could and Would Participate Phase II – Forming Legal Structure to Own/Maintain Project - Rate Determination - Public Participation re: the New Utility and New Rate Structure

Ready to Go Aspects of Project Due To Planning Efforts Environmental Review Complete Design 60% Complete USDA Funding Pending Permits Prepared Regional Water Commission Formed and Meeting Regularly LMI Benefit Documented via Survey

Project Description Design and Construction of 2 MGD Wastewater Treatment Plant 10,000 LF of Water Lines, 650 GPD Pump Station, and Bore Under Green River Purchase of Existing Water Plant and Elimination of Malfunctioning Water Plant

Project Budget $7.4 Million USDA Rural Development Grant/Loan (68%) $2.5 Million Kentucky Infrastructure Authority Loan (23%) $1.0 Million Community Development Block Grant ( 9%) $10.9 Million Total

Expected Project Benefits Source of Quality Water for Future Lowered Operating Costs Affordable User Rates Economic Development Potential Construction Jobs Pride of Community and Accomplishment

Quotes from Local and State Officials KY Dept Environmental Protection – “McLean County is taking a proactive approach to ensure sustainability of their water systems and communities.” Letter of Support County Judge/Exe. Thurman – “We cannot do this locally, the CDBG funding is pivotal. It will make a tremendous difference having the ability to turn a valve and furnish the area with water in a split second.” Messenger - Inquirer Green River Area Development District – “This is a perfect example of regionalism at its best.” Messenger-Inquirer Sacramento Mayor Howard – “It’s been everybody’s effort. State Officials were just blown away by the way we all came together for this issue.” Messenger-Inquirer

Recognition Earth Day Project Announcement - USDA State Director Fern – “Today we invest in clean, safe and reliable water for families and businesses in McLean County. This is one of the highest amounts of USDA funding provided to any of the 144 Earth Day Projects. “ 2015 Governor’s Spirit of Kentucky Award for Cost Effective Coordination of Public Resources Among Multiple Government Groups 2016 NADO Award for Innovative Regional Project

Project Hurdles Midway - Bids Significantly Over Budget Current - Prime Contract Files Chapter 7 Bankruptcy

Kentucky Department for Local Government Office of Federal Grants 1024 Capital Center Drive Suite 340 Frankfort, Kentucky 40601 502-573-2382