Milton solicits vendors for water meter replacement program
The Town of Milton is soliciting vendors for qualifications to conduct a water meter replacement project throughout town.
The town is looking for vendors who can install advanced metering infrastructure, a program that would combine smart meters that can automatically collect readings with a network that can transmit data wirelessly, and can store and analyze data in real time. Vendors are being asked to submit their qualifications to be able to deploy more than 1,900 meters and build a full-service data hosting system within a short time frame.
In July, town council elected to use $1.5 million in funds from the Granary at Draper Farms special development district to replace the current radio-read water meters throughout town. A special development district is a special tax levy to be paid by Granary residents.
As part of the special development district, the town agreed to issue special obligation bonds – bonds developer Convergence Communities says are backed by Granary residents, not the town – up to $42 million. The proceeds from that tax will be put into a special fund to be used for public infrastructure improvements within and potentially outside the Granary. The special tax does not preclude developer Convergence Communities from paying town-required performance bonds, which set aside money to ensure roads and other infrastructure are completed.
The first bond issuance, which closed July 11, is actually two sets of bonds: one that matures in 2044 and another that matures in 2053. These are maturity bonds, designed to earn the investor interest until the maturity date, in which the investor will be repaid at face value. The difference is the 2044 bonds will earn at a 5.7% interest rate and the 2053 bonds will earn at 5.95%. Convergence will use the money from the bonds to pay for infrastructure projects benefiting the public, which could include streets, sidewalks, and parks and recreation facilities. Convergence has agreed to give the town up to $5 million from proceeds raised by the special development district to use on other infrastructure projects in three tranches, with the other two tranches coming in 2030 and 2035.
The first phase of the Granary project, proposed as a 1,350-unit development on a 450-acre parcel on Sand Hill Road, broke ground this summer and will include 175 units. Site work on Phase 2 of the development has begun, and is planned for 110 home sites. The total build-out is scheduled to take place over 20 years in 10 sections.
Council had narrowed its list of potential projects down to four, which included land acquisition, a basketball court and a shared-use path between Cannery Village and Heritage Creek. Replacing the meters was chosen in part because the project can be brought to bid quickly.
Firms looking to submit qualifications must do so by 10 a.m., Monday, Dec. 2. More information for submitting qualifications can be found at milton.delaware.gov.
