Fisher Commissioners agreed in February to approve bids for the county-sponsored grant project in Sylvester-McCaulley despite a significant funding shortfall. The court is also looking at possibly offsetting the shortfall with federal relief funds but continues to review spending options.
The Sylvester-McCaulley Water Supply Corporation was awarded a 2018 Community Development Block Grant for replacing water hundreds of feet of water line. However, due to the pandemic's effect on material costs since the grant was awarded, officials knew going into the bidding process there would be a shortage of funds.
With a $422,000 base bid, Bo Simon, Inc. out of Canyon was the lowest of five bidders on the project. Even though the bid was more than $70,000 less than the next in line, the total cost still exceeded the warded grant funds by roughly $200,000.
Representatives with Grantworks — the grant writing company the county has worked with for years — began looking into alternatives to provide pricing options. By going with a lower quality pipe and omitting road repair along the county road from Hwy 180 McCaulley — a roughly $56,000 cost alone — the county could reduce the shortfall.
An alternative presented called for using SDR 26 pipe instead of the originally bid C900, and by removing road repair would reduce the overall cost but would still leave the county short. Additionally, Precinct 1 Commissioner Gordon Pippin said as the project was going to be in his precinct, he recommended moving forward with using the higher quality, C900 pipe, and he would absorb the cost of the road repair out of his precinct’s budget.
His fellow commissioners agreed that given the vegetation and soil in the project area, the C900 was better for the long-term infrastructure, and the court’s approval of the bid leaves the county with a remaining $213,000 shortfall. However, with the possibility of using other federal funds, the county could cover the deficit and still have funds available for use elsewhere in the county.
The county received its first half of a total $740,000 in federal funds associated with the American Rescue Plan Act (ARPA) in July. With $371,000 already in the bank and the second half anticipated in the upcoming months, the county will be looking into areas to spend the unanticipated revenue.
Officials were reluctant to spend funds early on, but as spending areas have broadened, new opportunities have emerged. Grantworks representatives assured the court that the water project would qualify for using a portion of the funds and would only take a bit of paperwork to make the adjustments to track the funds within the grant.
There are essentially four main categories designated for using the funds. One area is under the umbrella of public health. This expands to include EMS, fire department, police and sheriff’s departments. ARPA funds could be used for vehicles, equipment, etc.
The court could also use a portion of funds for personnel, as another category allows for providing premium pay for essential workers. In this way, the county could offer a wide range of salary bonuses for some employees.
Another area for use is infrastructure, which can have anything to do with water, sewer, or broadband. While several governmental entities that have looked into broadband, Grantworks representatives said many are discovering expanding broadband networks to be cost-prohibitive.
Offsetting the roughly $213,000 shortfall in the CDBG water project could be offset by using a portion of ARPA funds and leave the court with roughly $525,000 to spend assisting other parts of Fisher County.
Commissioner Preston Martin said in early February the court should table further discussion at that time, as the commissioners would soon be attending an educational forum where ARPA funds were to be a focus. The court unanimously agreed it prudent to see what was learned from the class before committing any funds.
It is anticipated more discussion into designating the ARPA funds will be a part of future court meetings, as well as any alternative ways to offset the CDBG shortfall. The next meeting of the Fisher County Court is scheduled for Mar 14.