MORGANTOWN, W.Va. — The Morgantown Utility Board (MUB) will greenlight a study involving Strand Associates to help with financing efforts for ten projects across their system.
The MUB Board of Directors unanimously approved a contract with the firm to create detailed engineering reports, which could be used to support financing for the ten projects valued at approximately $64 million. MUB General Manager Mike McNulty calls the move that was approved during MUB’s regular meeting Tuesday an effort to create a financing package that can then be pitched to a variety of public and private sector contacts.
“Going out to the market, it’s better to just go out and try to acquire funding for multiple projects than just try and do one project,” said McNulty on the need to move forward on a bundle funding package for investment opportunities.
According to McNulty, the ten projects subject to the preliminary engineering report by Strand Associates include five projects that could get complete design and construction cost projections and five large-scale projects that would be focused on designs. The five small-scale projects include the rehabilitation of two elevated storage tanks located on the Mileground and Greystone, a water line replacement on Monongahela Boulevard, and the installation of a generator at the Wiles Hill Booster Station, among other projects. The large-scale projects focused on design-only funding would include upgrades to the Robert B. Creel Water Treatment Facility, a new booster station in the Union District, as well as improvements to the Sabraton District Booster Station.
“There will be several smaller construction projects, and then we’ll be looking to fund the design of the other half of the projects,” said McNulty.
McNulty also stated after the meeting that the design of the planned upgraded maintenance shop garage will also be included in the funding package.
The aim for the agreement with Strand Associates is for MUB to have a funding package that can be pitched to both potential private and public sector investments within the same time frame. This will allow for projects to be selected on an individualized basis, if need be, with costs for each project estimated to vary from as expensive as $15.4 million (booster station work) all the way to around $1.3 million (storage tank rehabilitation). McNulty stated that a combination of state contacts and private sector connections will be used during the initial financing process.
“We’ll probably look at both at probably around the same time,” said McNulty in regard to how private and public sector funding opportunities will be sought after. “I think we’ll be making our contacts with various groups in the private sector, and we’ll also be talking with the WVDA and the West Virginia IJDC (Infrastructure and Jobs Development Council) as well.”
The hope for MUB administrators is that the preliminary engineering reports and projected designs will be completed within the next 90 days. Any funding sources found after the ten-project package is delivered will be considered for a full vote by the MUB board of directors ahead of any project moving forward entirely. With around $46 million worth of work expected to be accounted for in the Strand Associates study, the hope is that it will allow some crucial projects to move forward.
“We’ll just be looking for the best rate for our customers, and that’s how we will proceed,” said McNulty.
The contract with Strand Associates to conduct the study is valued at approximately $40,000.