Sebring gets $2.07 million stimulus grant

The city of Sebring has received a $2.07 million stimulus grant to loop its Sparta Road and Lakewood Road water lines.

Only 10 cities statewide were awarded the monies, given as part of the 2009 American Recovery Rehabilitation Act drinking water state revolving fund.

"It's going to loop our system," Bob Hoffman, assistant city administrator, explained.

"This will take our system where it ends on Sparta near Bassage Road and will tie in the system where it ends at Cracker Trail (Elementary School)." Lakewood Road runs parallel to Sparta Road, which runs west of U.S 27 in Sebring.

Looping the system is a good thing because when a waterline ends in a dead end, an automatic flush valve must flush out the system periodically so that the water does stagnate. This process wastes water, Hoffman said.

This project also will allow people on well water to connect into the system, he added.

The city's 85 percent grant amount is $2.068 million.

Sebring, which was ranked fifth of all applicants, received more grant money than any other city in Florida. It also received two separate grants from the Florida Department of Environmental Protection to pay for all aspects of the project, including planning, administration and design.

The total estimated cost for the project was projected at $2.9 million, according to one document provided by the city.

All of the other cities had to pay out-of-pocket expenses to get their projects to "shovel ready" status, the city's Sept. 1 agenda item stated.

In addition to the grant, there is also a $365,000 low-interest loan.

Along with the city, Winter Haven-based Envisors LLC, applied for the grant.

An e-mail sent from Steven Elias, vice president of engineering for Envisors, Aug. 13, states that "assuming a four-fold economic multiplier effect, this project can have more than a $10 million economic impact on the city."

Elias explained the principle on Monday.

"When spending takes place in a community, money changes hands four or five times according to economists (I am not one and don't know the exact theoretical multiplier for this type of project)," he said.

The city will hire contractors, who buy equipment from vendors, pays taxes, fees, hires employees, hires subcontractors, and buy things to stimulate the local economy, he said. These employees, vendors, and subcontractors all buy homes, pay taxes, buy groceries, and buy materials locally. Then the people they buy from do the same several times as the money trickles down through the community.

The city makes money by attracting new potable water customers.

The city won't know how many new water customers it will get until they actually tie in, Utilities Director Marty Roepstorff said Monday.

The cost for a residential customer to tie in to a three-quarter inch meter is about $965, he said.

The city will now have to move quickly to get the project bid and under construction by the mandatory Dec. 1, 2009 deadline.