Allegany County to Upgrade Georges Creek Wastewater Treatment Plant

Allegany County Government is undertaking an important, far-reaching project to improve the Georges Creek Wastewater Treatment Plant (GCWWTP, 25018 Old Reynolds Road, Westernport, MD). The Department of Public Works led by Director W. Stephen Young and Deputy Director Paul F. Kahl and its Utilities Division, managed by Mark W. Yoder, are spearheading this important project. All are Professional Engineers.

MARYLAND DEPARTMENT OF THE ENVIRONMENT

The Maryland Department of the Environment (MDE) has required Allegany County Government to correct deficiencies in the Georges Creek Wastewater Treatment Plant. Specifically, Allegany County entered into a Consent Order with the Maryland Department of the Environment to correct the permit violations and to upgrade the plant. MDE also enacted more restrictive treatment requirements to remove nitrogen and phosphorus from the wastewater: Biological Nutrient Removal (BNR) and Enhanced Nutrient Removal (ENR).

This plant and the associated collection system were constructed in the 1980’s. Over the years, technology has improved and regulations have increased. In recent years the plant has experienced high flows from inflow/infiltration. Overall, the plant’s performance is now poor.

COMPLEX ENGINEERING PROJECT

The Allegany County Department of Public Works and Stearns and Wheler, an engineering firm from Bowie, Maryland, began the design process for the plant upgrade in 2004. The project is complex and the design process was challenging. Since that time, different treatment alternatives were evaluated, associated bid documents were developed, and funding options were reviewed with MDE on numerous occasions. 

FUNDING SOURCES

The funding, like the project itself, is complicated. The total project will cost $28.4M. The low construction bid was $24.4M. In addition to construction costs, there are engineering, legal, and administrative costs. The State of Maryland is paying for over two-thirds of the total cost; specifically, the State is providing $19.4M (68%) of the $28.4M.

The funding sources of the Georges Creek Wastewater Treatment Plant  upgrade are:

• ENR Requirement: 100% State of Maryland grant (i.e., a gift, grants are not repaid). These grant funds are provided by the Chesapeake Bay Restoration Fund (i.e., flush tax).

• BNR Requirement: 50% State of Maryland grant and 50% local users. The Maryland Department of the Environment gave Allegany County Government a 1% 20 year loan for $8.9M. This loan will be repaid by the local users of the Georges Creek Wastewater Treatment Plant.

LOCAL USERS

• Loan Repayment: the average annual cost to repay this loan is $530 for every local user (i.e., household). NOTE: This is based on current sewer rates.

• This debt service will appear on the local user’s annual property/real estate tax bill (NOT on the quarterly sewer bill) as an ad valorem.

• The major portion of the loan payment will not be on the tax bills until July, 2010.

• The local user’s quarterly sewer bill will not be impacted by this loan. The quarterly sewer fee is the same everywhere in Allegany County. NOTE: There is an annual adjustment based on the actual cost of operation.

ALTERNATIVE RE-EVALUATED

After the nearly $25 million dollar construction bid was received for the Georges Creek Wastewater Treatment Plant, Allegany County reevaluated the option of pumping flow to another plant, Upper Potomac River Commission (UPRC), near Westernport.

The Allegany County Commissioners and the Allegany County Department of Public Works staff had multiple discussions with representatives from the Maryland Department of the Environment, the Upper Potomac River Commission, and Stearns & Wheler about this alternative. After this review, the Department of Public Works staff advised and the Allegany County Commissioners agreed to proceed with the Georges Creek Wastewater Treatment Plant upgrade.

MINIMAL-NO SAVINGS AND SIGNIFICANT RISK

The UPRC alternative offered minimal or no savings to local users; the local users would pay the same ad valorem for both alternatives. The amount of the project to be funded by loans to Allegany County and paid by local users was similar for both alternatives. The UPRC alternative had a lower total project cost but significantly lower grants as well. Therefore, the cost to local users was nearly equal.

The UPRC alternative had significant risk. The UPRC plant was not designed for either BNR or ENR; although some nitrogen and phosphorus removal would be achieved under the UPRC alternative, the project, once completed,  could fail to meet Maryland Department of the Environment’s BNR-ENR requirements.

CONTRACT AND TIMEFRAME

Allegany County Government had a competitive bidding process and awarded the contract to Galway Bay Corporation, Mount Braddock, PA.  The Georges Creek Wastewater Treatment Plant upgrade construction will begin this spring and is expected to take two years.

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NOTE: Forbes Media, www.investopedia.com, presents information on ad valorem, click to dictionary on the homepage.