Repairs from flood discussed at Ashland meeting

Jul. 31--ASHLAND -- The Ashland Area Municipal Authority will repair damage near its reservoir caused by last year's flooding with funding from the federal and state governments.

Alfred Benesch & Co. project manager Jennifer M. Kowalonek provided an update on the situation to the AAMA board during its meeting Monday.

The Federal Emergency Management Agency issued a disaster declaration for Schuylkill County for the Aug. 12 and 13 storm. Kowalonek said Benesch has been working with Borough Manager Raymond Jones Jr. and has attended the exploratory call, recovery scoping meeting and site inspection for the projects to repair damage at the authority reservoir in Butler Township.

The funding is being provided by FEMA through the Pennsylvania Emergency Management Agency.

The two tasks will be for the weir design and access road repair at the dam, Kowalonek said.

"We have submitted preliminary cost estimates for the work to FEMA in the amount of $127,000 for the weir and $28,000 for the roadways," he said.

Kowalonek said FEMA officials have told him how the funding process depends on the size of the project. For those under $128,000, following FEMA review, the municipality receives 75 percent of funding by direct deposit and the other 25 percent at completing. The projects must be bid.

Projects costing more than $128,000 receive funding after completion.

"The FEMA review is moving forward, and we will advise when that approval is received and when your money will be released," she said.

The authority plans to obtain interim financing. Authority solicitor S. John Price contacted banks for proposals on a line of credit for $300,000 and opened the two sealed responses Monday. Mid Penn Bank offered a 3.15 percent fixed interest rate for a two-year term. The Gratz Bank offered 2.95 percent fixed for the same term.

Price will compose a memo on the offers for board members to review.

"The way this will work is that if we draw down $50,000, we pay interest on the $50,000. We can pay any amount we want against principal, but we must pay it within two years," Price said.

The line of credit will be paid when the funding is received.

Kowalonek said PEMA will contact the borough about directly depositing the money to a borough account.

Contact the writer: jusalis@republicanherald.com; 570-628-6023

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