CLIPA White Paper - Financial Projections

Capitol Lake will be managed for water quality, sediment management, habitat, and various multi-purpose uses by the community. The maintenance dredging program anticipates a five-year maintenance dredge of the "sediment trap” in Capitol Lake (North basin) of about 100,000 cy or $2.0 million every five years, with long-term permitting planned in 2011-2013. An additional $200,000 is included every five years for water quality and sediment management research, sampling, monitoring and reporting through the coordinating board. The plan also considers a ten-year cycle for the marine water maintenance dredging between the dam and the Port Turning Basin of about 50,000 cy or $1.0 million.

 

The plan does not include maintenance dredging for the Mid basin, as that will need to be determined based on the timing of the first dredge, upstream sediment management, and other considerations. The plan also does not include costs of dredging the South basin. We advocate for that work, believing it might best be done in the second decade. However, there is much to consider in these cost estimates, beyond the information we presently have available. We recommend the predesign study consider these activities and their costs as potential options in the out-going years after the first decade.

 

Subject to the water quality management objectives and the ability to manage sediment upstream, the amount of sediment removal should continue to be reduced, reducing overall costs and extending the timing of dredges. The cost estimate of $20/cy is used with the premise that the long-term maintenance and permitting issues would be addressed in 2011-2013. The total cost of this 40-year span (years 11 – 50) would be about $18.0 million for the lake, $1.8 million for environmental monitoring and enhancement, and $4.0 million for the marina/small boating area of lower Budd Inlet.

 

The 50-year cost of this program is anticipated to range from about $43.3 to $47.3 million using the above assumptions and estimates. The assumptions include the accepted State approach for some contingency budgeted. A more rigorous long-term budget will be verified after the predesign studies and permitting program, which provides for routine maintenance dredging, are outlined and negotiated.

 

As part of the coordinating board’s work in the first few years, a cost sharing approach should be identified and implemented to ensure that the entire lower Budd Inlet boat basin dredging occurs simultaneously, and thereafter the maintenance dredges reflect a cost sharing in an equitable manner by the State, City, Port, marinas, and Yacht Club. For example, the marinas and Yacht Club pay the State for lease costs (funds are deposited in the Aquatic Lands Enhancement Account), and these funds could be appropriated by the State to partially fund some of the coordinating board’s ongoing activities.