Britt reports on city projects

Larry Britt, with Elliott and Britt Engineering, apprised the Holly Springs Mayor and Board of Aldermen on several projects at the July 15 board meeting.

He was asked by mayor Charles Terry to review ongoing projects that the city has.

A major project that may need looking at is the gas cast-iron replacement project that has been mandated to be phased out and be replaced by polyethylene or high density polyethylene.

Britt said the city was mandated to replace 164,000 feet of cast-iron natural gas line. At the end of Phase 1 all cast iron located on the east side to the railroad tracks, 44,000 feet, was replaced.

Britt said funds for that work came out of the gas surcharge fund. A rural development loan was applied for to do Phase 2 and Phase 3.

“You did Phase 1 by yourselves,” he said.

In 2018, a Rural Development Loan was submitted where the city pledged $800,000 to match a $3.78 million loan.

In 2021, former mayor Kelvin Buck, at the end of his term, took over the project and Mid-South Boring won the contract.

Britt said the audit was not completed and Rural Development guarantees for interim financing through local banks for money was not available.

Some materials for the project were purchased out of the $800,000 match the city put up, but, after one, year prices of materials had increased and the project got dropped, because the audit was not done for the interim financing at the bank.

Britt said Rural Development will be de-obligating the loan unless a letter is sent by the mayor asking that it not be de-obligated.

Britt said he has a meeting set up with Rural Development’s loan specialist Melanie Balducci, area director of USDA Rural Development, to try to get the project loan back on the rails.

“The problem is increased cost,” Britt said. “You will have to come up with more money to cover additional charges.

“I don’t have a good firm estimate of what the extra costs will be,” Britt said. “Where I am at tonight, the reason you started this, you got a mandate in 2011 from the Public Service Commission. In 2011, you started a ten cent tax to help pay for replacement and to match funds.”

That 10 cent increase in the customer’s gas bill has been accruing, but the money account has not been located yet, according to Wayne Jones, general manager of HSUD.

Britt said the money in the fund has built up over the last four or five years.

Phase 1 was going to cost about $1 million.

“You are still under a mandate,” he said.

Terry asked HSUD general manager Wayne Jones if he found an account set up for the project.

“Nothing in writing,” Jones said.

Britt said he doesn’t know how much money is in the gas fund.

Mid-South Boring said it still has the contract and wants to work with the city to get the project started back up.

If the project is not de-obligated, Britt said he hopes extra money can be found to complete the project. The city could use the money in the gas tax fund to start rolling on Phase 2 which would give the city more time to work on plan to get the money to complete Phase 3.

The board approved the mayor sending a letter to Balducci requesting the project not be de-obligated.

West Valley Avenue street repair

Britt said he thinks the cost to repair the street and sidewalk and replace the storm drain on West Valley Avenue will come in under $75,000. He said that will allow him to obtain quotes for the repair rather than go through a more lengthy bid process.

Hill Street/Cuba Street erosion control

“Hill Street’s moving along,” Britt said.