The Tennessee Department of Environment and Conservation (DOEC) released a revised Finding of No Significant Impact (FNSI) Amendment for public review concerning DeKalb Utility District plans to construct its new raw water intake structure and raw water pump station Monday.
While the total project cost presented in a previous Environmental Assessment (EA) was $12,000,000. The DUD has requested a $4,000,000 loan increase to cover the increased project costs resulting from bid overruns, and a new EA was required. The loan increase is scheduled for funding in fiscal year 2015.
In a letter dated March 16, the DOEC said:
"The National Environmental Policy Act requires federally designated agencies to determine whether a proposed major agency action will significantly affect the environment. One such major action, defined by Section 511(c)(1) of the Clean Water Act, is the approval of a facilities plan prepared pursuant to Title VI of the Clean Water Act. In making this determination, the State Revolving Fund (SRF) Loan Program assumes that all facilities and actions recommended by the plan will be implemented. The State's analysis concludes that implementing the plan will not significantly affect the environment; accordingly, the SRF Loan Program is issuing this Finding of No Significant Impact (FNSI) Amendment for public review.
A previous FNSI, dated March 28, 2014, included a new raw water intake structure and raw water pump station on the Holmes Creek Embayment of Center Hill Reservoir (Caney Fork River); an 18-inch diameter raw water transmission line from the raw water pump station to the new 2.0 million gallon per day (MGD) water treatment plant (WTP) located along Holmes Creek Road; an 18-inch diameter finished water transmission line along Holmes Creek Road, Allen’s Ferry Road, and U.S. Highway 70; and new 8-inch diameter water distribution lines along Big Rock Road, Dry Creek Road, Game Ridge Road, Turner Road, Titsworth Road, and Walker Lane. A finished water pumping station will be constructed to deliver water from the Snow’s Hill Water Tank to the Short Mountain Water Tank. The new 2.0 MGD WTP will include clarification, mixed media filtration and backwash systems, and a 250,000 gallon clearwell. A copy of the previous FNSI may be viewed at the offices of the SRF Loan Program.
"This FNSI Amendment addresses the amended need for the project and an increase in project costs. The original estimated project cost was $12,000,000. The increased estimated project cost is $16,000,000.
A. PROPOSED FACILITIES AND ACTIONS; FUNDING STATUS
A previous Environmental Assessment (EA) statement, dated March 28, 2014, included a new raw water intake structure and raw water pump station on the Holmes Creek Embayment of Center Hill Reservoir (Caney Fork River); an 18-inch diameter raw water transmission line from the raw water pump station to the new 2.0 million gallon per day (MGD) water treatment plant (WTP) located along Holmes Creek Road; an 18-inch diameter finished water transmission line along Holmes Creek Road, Allen’s Ferry Road, and U.S. Highway 70; and new 8-inch diameter water distribution lines along Big Rock Road, Dry Creek Road, Game Ridge Road, Turner Road, Titsworth Road, and Walker Lane. A finished water pumping station will be constructed to deliver water from the Snow’s Hill Water Tank to the Short Mountain Water Tank. The new 2.0 MGD WTP will include clarification, mixed media filtration and backwash systems, and a 250,000 gallon clearwell. A copy of the previous EA may be viewed at the offices of the State Revolving Fund (SRF) Loan Program.
This EA Amendment addresses the amended need for the project and an increase in project costs. The project description remains unchanged. The figures showing the DeKalb Utility District Service Area (Planning Area) and the locations of the proposed project are attached.
The revised estimated project costs are summarized in the following tabulation:
COSTS
• Administrative & Legal: $10,000
• Design Fees: $475,000
• Resident Inspection: $120,000
• Construction: $14,791,000
• Miscellaneous: $80,000
• Contingencies: $524,000
• TOTAL: $16,000,000
• SRF Loans: $8,750,000
• Amount Designated for Principal Forgiveness (Will not have to be repaid): $500,000
• Other Funds: $6,750,000
The total project cost presented in the previous EA was $12,000,000. The DUD has requested a $4,000,000 loan increase to the DWF 2014-143 loan to cover the increased project costs resulting from bid overruns. The loan increase is scheduled for funding in fiscal year 2015.
Two Drinking Water State Revolving Fund (DWSRF) loans totaling $5,250,000 were presented to the Tennessee Local Development Authority (TLDA) Board on May 6, 2014, and approved. Loan No. DW3 2014-142 was approved for $2,500,000 with a $2,000,000 loan and $500,000 in principle forgiveness that will not have to be repaid by the DeKalb UD. Loan No. DWF 2014-143 was approved for $2,750,000.
Additional funding for the project includes a Rural Utilities Service loan for $5,000,000, a Rural Utilities Service grant for $1,250,000, and an Appalachian Regional Commission grant for $500,000. B. REASONS FOR CHANGE
The DUD was purchasing water for its customers south of Center Hill Reservoir from the City of Smithville at a rate of $2.05 per 1,000 gallons through a water purchase agreement. When the water purchase agreement expired at the end of 2013, the DUD and the City of Smithville could not come to an agreement for the rate to purchase drinking water. The City of Smithville decided to raise the rate to $5.00 per 1,000 gallons. The DeKalb UD determined that it could produce drinking water at a rate less expensive than $5.00 per 1,000 gallons.
The previous EA stated that the need for the project was based upon a financial analysis that revealed it would be less expensive for the DeKalb UD to produce its own drinking water than to purchase drinking water from the City of Smithville at a cost of $5.00 per 1,000 gallons.
When the DUD requested a $4,000,000 loan increase because of the bid overrun, the SRF Loan Program performed a financial review and decided a rate increase was necessary to approve the loan increase. The DUD decided to pass the required rate increase, effective January 1, 2016.
The DUD completed a facilities plan amendment entitled "Amendment One to Facilities Plan for DeKalb Utility District, 2013 Water System Improvements, Proposed Water Treatment and Distribution Improvements, January 2015" including a new cost-effective analysis to prove that the chosen alternative of the original facilities plan was still the most cost-effective. The new cost-effective analysis concluded that the DUD could produce drinking water for its customers south of the Center Hill Reservoir at a cost of $2.32 per 1,000 gallons, and is still cost-effective. C. ENVIRONMENTAL CONSEQUENCES; MITIGATIVE MEASURES
During the construction phase, short-term environmental impacts due to noise, dust, mud, disruption of traffic, runoff of silt with rainfall, etc., are unavoidable. Minimization of these impacts will be required; however, many of these minimization measures will only be temporary. Using the following measures to prevent erosion will minimize impacts on the environment:
1. Specifications will include temporary and permanent measures to be used for controlling erosion and sediment.
2. Soil or landscaping maintenance procedures will be included in the specifications.
3. The contractor will develop an Erosion Control Plan. It will contain a construction schedule for each temporary and permanent measure controlling erosion and sediment. It will include the location, type, and purpose for each measure and the times when temporary measures will be removed or replaced.
These measures, along with requiring the contractor to return the construction site to as-good-as or better-than its original condition, will prevent any adverse impacts due to erosion.
The State Historic Preservation Officer has reviewed the project and determined that the project will not impact known significant cultural resources.
The DUD will be required to submit a source water protection plan to the DWR’s Drinking Water Unit within 12 months after the new WTP initiates operation. D. PUBLIC PARTICIPATION; SOURCES CONSULTED
A second Public Meeting was held on February 26, 2015, at 6 p.m., local time. The selected water treatment and distribution plan and user charges were described to the public, and their input was received. This agency is not aware of any unresolved public objections that may have been voiced before or after the public meeting regarding this project.
The annual median household income for the DeKalb UD is $38,259. The current water user rate for the typical residential user (5,000 gallons per month) will increase from $47.53 to $48.96 per month on January 1, 2016. The total incremental annual cost for this project is $17.16, which is less than one-tenth of one percent of the current annual household median income.
E. SPECIAL CONDITIONS
The DUD is required to submit a source water protection plan to the DWR’s Drinking Water Unit within 12 months after the new WTP initiates operation. Any questions should be directed to Mr. Scotty Sorrells (scotty.sorrells@tn.gov or 615-532-9224). A copy of the approved source water protection plan must be submitted to the SRF Loan Program.
Comments supporting or disagreeing with this proposed action received within 30 days of the date of this FNSI Amendment will be evaluated before we make a final decision to proceed. If you wish to comment or to challenge this FNSI Amendment, send written comments to:
Mr. Sam R. Gaddipati, Environmental Manager, State Revolving Fund Loan Program Tennessee Department of Environment and Conservation, William R. Snodgrass Tennessee Tower, 312 Rosa L. Parks Avenue, 12th Floor
Nashville, Tennessee 37243-1102
Call (615) 532-0462 or or e-mail (sam.gaddipati@tn.gov)."
