Job Creation Council Notes on Sewer Stakeholder Meeting

March 11, 2011

Purpose of the Garden Valley Job Creation/ Retention Council:
Create and retain jobs in Garden Valley, including Crouch.

Process – Define the community’s assets and needs. Then match
them and prioritize the resulting projects.

Purpose of the Sewer Stakeholders Group Meeting –
A. Present the opportunities available to Garden Valley for a
centralized sewer.
B. Present a conceptual layout of the proposed sewer and discuss
its Rough Order of Magnitude (ROM) costs.
C. Solicit input from the meeting participants with regard to the
concept, costs and community demand for this type of centralized
sewer service.

I. ASSETS & OPPORTUNITIES

A. Old school site, an opportunity for:
1. National Guard YCP school – 60 professional jobs.
~(a. It was reported during the meeting that this opportunity was
awarded to another city, due to lack of waste water treatment
capacity and the condition of the school. )

2. CuMo mine off-site office – 30-60 professional jobs.
3. GV Radio – A few volunteer jobs + student internships.
4. Fledgling businesses – few jobs initially, but lots if successful.
5. “GV Center for Business Excellence”:
~a. Business incubator to provide assistance to fledgling businesses.
~b. Adult education to provide residents with skill sets needed by
existing and new employers.
6. Possible site for an assisted living facility for the elderly.
7. Issue for most opportunities of size – Waste water treatment
capacity

B. Old school site waste water, an issue for resolution:
1. Failed septic system on site is not classed as a hazardous waste
site (Central District Health)
2. Central District Health comment after the meeting:
~~“At the old school site, the septic tanks would need to be
pumped, crushed and filled. I imagine if you were to place a
building over the old drain field, it would need to be removed
and filled as well, where a foundation footer may sit. This would
likely have to be done under a geotech's supervision for compaction
purposes. The drain fields should be old enough that they have
dried out, so I would imagine odor would not be a problem with
them. I believe every drain field up there has been out of use for
2+ years at this point.”

3. The old school site sewer is connected to the new school site
waste water treatment (WWT) plant that is expandable.
~a. To expand it would require a bond election to finance the
expansion.
~b. Unlikely the Board of Trustees would approve.
~c. Issue for resolution -- Better to sell the WWT plant to pay off
the bonds or to finance lost school programs.
4. The old school site was to be sold, but with the CDHD thoughts,
it is apparent that the complications of the failed septic systems
make the site difficult to sell, as evidenced by the lack of serious
consideration after being for sale for 2 years.
a. So we all understand how a buyer might look at that site, CDHD
commented:
~~“There are multiple old drain fields on the school property.
From what I am told by the previous EHS's that covered the area,
these systems are scattered all over the school site. Many have been
abandoned for years due to past failures, and obviously there
are a few that were in use when the school was in operation a
couple years back.

"CDHD considers all systems on this property
to be abandoned under IDAPA 58.01.03.003.01 Abandoned System.
Any new use in the school would be required to install new systems
designed for their intended use. The septic tanks that are on-site
would be the only components we would let be re-used in a new
system design (though the tanks would need to be inspected to
ensure their condition).

"I am told finding a drainfield location on the property may be
difficult, due to limitations on space from the old drain fields that
are on the property. Due to groundwater, any operation exceeding
600 gallons per day flow would be requiredto run a nutrient
pathogen study as well, per CDHD's NP Policy.”

C. Dynamis Energy Network Operating Center (NOC):
1. Dynamis Energy designs and builds trash-to-energy plants
(gasification process) around the world and has $100 million
of signed projects to date. They will use a single operations center
(NOC) to operate all of them. Local crews will maintain each one.
2. It will provide 50 hi-tech jobs. The normal economics multiplier
for total jobs is roughly 2.5 for each core job. Supporting
employers supply the rest. That ultimately means 125 new jobs in
Garden Valley.
3. They will be an anchor tenant for a hi-tech business park near
the GV Post Office if GV is awarded the NOC. Two other cities are
competing for it.
4. It will be a “green” facility (no pollution), to attract hi-tech
employees, so it will not use any kind of septic facility contributing
effluent to the ground water or rivers.
5. It will provide internships for high school students.
6. Issue -- It needs grant funding for a sewer so connection cost will
be lower.

D. Empty health clinic building
1. Opportunity for a “group home” facility – a first step to an
assisted living facility
2. Dr. Mike was contacted 2 years ago by the operator of
“The Cottages” in Meridian, with interest in beginning an assisted
living facility in Garden Valley ~so we have a resource for that
opportunity.
3. Central District Health commented after the meeting:
~~“The system for this clinic is not likely sized for this type of
operation. A new system would need to be installed and,
depending upon facility size, the system would need to likely be
an engineered drain field with pretreatment tanks. Due to
groundwater, any operation exceeding 600 gallons per day flow
would be required to run a nutrient pathogen study as well, per
CDHD's NP Policy.

Just an FYI: Each bed space in a facility of this
type is sized at 125 gallons per day, so 5 beds would put you over
the NP requirement limit.”

4. Issue – Inadequate WWT system; sewer would solve that.

E. Soon to be empty old Merc building:
1. According to co-owner Greg Simione, it’s use is severely limited
by lack of adequate WWT system ~capacity to just a few toilet users
(employees).
2. Issue – Need increased WWT capacity. A sewer would solve that.

F. Soon to be empty Les Bois FCU building:
1. Same problem and issue as with the old Merc building.

G. City of Crouch:
1. The City of Crouch was favorably disposed to the concept, but
they had a plan and the funding to proceed with their own sewer
system which they must execute quickly to maintain business
operations and remain compliant with IDEQ health directives.
2. Crouch’s engineer, Forsgren, stated after the meeting:
~~“The City of Crouch is not opposed to businesses in Garden
Valley developing infrastructure allowing utilization of the SFL
wastewater treatment plant. However, due to funding and
regulatory constraints, they have chosen to continue focus on
the plan they developed funding and regulatory approval for.

"It sounded to me like no one was opposed to submittal of the EDA
grant. It does sound like a good review of cost estimate would be
helpful for your efforts. We'll be helpful where we can.”

3. There was discussion of Terrace Lakes sending their waste
water to the Crouch system, but that would cause further
engineering, financing and regulatory approval delays and the
city needs to get the system operating.
~a. Central District Health commented after the meeting:
"I am not sure where we would stand on the Crouch sewer system.
It would depend on the option that they chose. If there is
subsurface disposal involved then CDHD would be involved, and
DEQ will be involved either way.

"The effects of adding Terrace Lakes to this system would depend
on the option they chose. As is, Terrace Lakes requires roughly
14,500 gallons of flow design for what is attached to their failing
system. As stated earlier, the maximum design per LSAS is 10,000
GPD. The savings in this option may come in how they treat the
sewage (I am not clear on their proposal to do this yet). I will
contact Forsgren and request a copy of what they have for my
knowledge. "
4. Issue – The City of Crouch is well along in designing and
financing their WWT system. A GV sewer system would apparently
be a welcome addition, but independent from the City of Crouch’s
system to avoid delays in that system.

H. Extension to Terrace Lakes from Crouch:
1. Assumption is that the trench will go up Middlefork Road.
~a. There is a question that there is sufficient easement beside the
road.
2. Terrace Lakes was favorably disposed to the concept, but they
are required to execute a septic system quickly, to maintain business
operations and remain compliant with IDEQ health directives.
3. After the meeting, Central District health stated:
~~“CDHD does have responsibility for the Terrace Lakes system.
The current status is that we have issued a Notice of Violation to
the owners due to the failure of the community drain field you
are referring to. This was issued over a year and a half ago.

"We spent a good chunk of that time identifying an acceptable
place for replacement. The rest has been in the design phase.
The failedsystem serves too many structures flow-wise to be
replaced with one system. LSAS type systems, i.e. what they are
installing for the Merc, have a maximum flow rate of 4,500 GPD.
We have compromised to replace what we consider the high-flow
structures on the system (basically all the resort facilities) with
a new LSAS, designed at 4500 gallons per day flow. In doing this,
we are allowingthem to keep the remaining 42 structures
(dwellings) on the existing system, in hopes that the reduced
flow will allow the oldsystem to function properly; if it does not,
then these structures would need their own system designed and
installed for roughlythe maximum 10,000 gallons per day.

"The plans for the first replacement system are being reviewed by
DEQ and will be going back to the engineer for final revisions soon.
Once the plans are complete, CDHD and DEQ expect the system to
be installed ASAP, pending funding I imagine. The failed system
has been patched, so it is no longer leaking on the ground surface;
but this has proved to be temporary in nature, as it must
continually be monitored.

"If the system continues to leak this summer without installation
(or progress being made), CDHD has informed Terrace Lakes
that we will suspend their food service license, pool license and
issue a cease and desist for operations of the resort buildings, to
prevent the public health threat. This is why Lonnie Bramon was
stating he needs a solution for the resort ASAP, not down the road.
If he can get the resort taken care of, the residential portion will
need to be taken care of eventually too, but hopefully not for awhile.
Again, these are more LSAS type systems he is looking at doing (the
new Merc site will have one, Tim Mussel has one for his sub by
Terrace Lakes, Terrace Lakes will need two, and this is what I
heard Crouch is looking into for their independent system).
Tim Mussel and the Merc could probably provide a cost on these
types of systems.

" I believe you are looking at anywhere from 250,000 to 500,000
per system, depending on flow design and drain field size. These
systems will likely always require some sort of extended treatment
with them (yearly testing and maintenance fees for these units),
and the LSAS drain field is required to have a maintenance entity
monitoring it monthly and a yearly report must be submitted to
the health district with the required monthly info.”

4. After the meeting, IDEQ commented:
~~“We could not hold off on the Terrace Lakes project based on
the mere possibility of a sewer system; but if the project to connect
Terrace Lakes to a sewer was funded and under design then that
would be a different story.”

I. Mandates – Failing septic systems:
1. IDEQ noted that they would mandate the use of the 2 FORK sewer
only in cases where a business or residential septic system or site
was out of health code compliance.
2. CDHD commented:
~~"It should be noted that connection will only be required under
these conditions if the property is within 200 feet of the existing
sewer line and the sewer district provides CDHD a letter stating
that they can provide a connection."

J. Broadband:
1. Frontier will run fiber optic cable in conduit right down the
same trench as the sewer for about $30,000, a small part of the
total cost.
2. After the meeting, a Library Board representative indicated that
the Library was planning their own grant application for a
broadband cable, so the sewer project would solve that problem
for them.
3. A scope of work change would have to be incorporated into the
2 Forks registration to include broadband, but that didn’t seem
to be a concern on 2 Forks’ part.

II. COST

A. Route from 2 Forks WWT plant under the South Fork of the
Payette River to Banks Lowman Road.
1. Tap off to Project Patch.

B. Branch to Dynamis Energy NOC and then to City of Crouch.
Thatbranch can go on up the Middle Fork Road to Terrace Lakes,
that must have a new WWT system.

C. Branch up Banks Lowman Road to about the Chevron station.
1. Connect to both the old and new school sites and serve both, as
well as other projects on Banks Lowman Road.
2. 2 Forks buy the new WWT system from the new school.
~a. Funds go to pay off existing bonds or provide lost school
programs.
~b. New school WWT plant serve as a lift station for the sewer.

D. Construction cost only, and rounded up.
1. Line to Crouch from 2 Forks WWT plant = $900,000
2. Crouch to Terrace Lakes = $600,000
~a. If easements are not available on Middlefork Road, then
re-paving adds significant cost.
~b. No costs for a line through the City of Crouch or required lift
stations is in this number.
3. Project Patch tap = $60,000.
4. Line to Chevron station = $210,000.
5. If easements are not available on Middlefork Road, then added
costs will occur to repave it where the trench might go up the
middle.
6. Idaho Power costs not defined yet, but are probably pretty
small relative to the others.
7. Frontier costs are about $30,000 for fiber optic cable in conduit
in the same trench.
8. No engineering costs included, only raw construction costs.
Final number needs to include all costs.
9. Investigate the need to resize the sewer to one size larger pipe,
to allow for growth.
10. Purchase of new school WWT system not included.
11. Intent is to follow Crouch’s lead and apply for a grant covering
all capital costs so that there will be no connection fee, only a
monthly fee.

III. FUTURE ACTION
A. The GV JCRC has done all it can in gathering all the stakeholders
into one room to describe all the stakeholders’ situations and
preferences. It must now turn over the responsibility for completing
the sewer to those involved. It is their business and their decision.
The GV JCRC can only help facilitate actions by stakeholders.

We have asked 2 Forks to:
1. Talk to all the possible customers of the sewer to learn their
interest in a 2 Forks sewer, assuming grants cover as much of
capital costs as possible. 100% of capital costs were accomplished
by the City of Crouch, but that does not mean that 2 Forks will be
able to do that. Professionals in the grant industry will know how
to maximize grant awards.
2. Join Sage Community Resources to get guidance in obtaining
the necessary grants. Jerome Mapp, who was the grant consultant
for Crouch, is another resource. They are grant professionals.
3. Submit the sewer project and costs to Sage, before April 1, for
inclusion in the 2011 Southwestern Idaho Comprehensive
Economic Development Strategy (CEDS) document showing its
importance to the other job creation/retention opportunities
in Garden Valley.
4. Submit grant applications for as much of the capital costs of the
sewer, as the rules will allow to reduce the connection cost for
customers. It will be a Garden Valley community and Boise County
effort to be successful. Support from all will be required.