HomeMy WebLinkAboutA010 - Council Action Form dated September 13, 2016 ITEM # 19
DATE: 09-13-16
COUNCIL ACTION FORM
SUBJECT: APPROVAL OF LOAN AGREEMENT FOR STATE REVOLVING FUND
CLEAN WATER DEBT IN AN AMOUNT NOT TO EXCEED $797,000 FOR
LIFT STATION IMPROVEMENTS
BACKGROUND:
The City's capital improvement plan includes a $797,000 project to make significant
improvements to two wastewater lift stations, referred to as the Orchard Drive Lift Station
and the Highway 30 Lift Station. Both lift stations are nearing the end of their useful lives
and are in need of upgrades to ensure safe, reliable, and efficient operation.
A State Revolving Fund (SRF) Clean Water Loan in the amount of$797,000 was identified
as the funding source for the lift station improvements. Repayment of the loan will be from
wastewater utility revenues. A public hearing was held on August 9, 2016, and a Council
resolution is now required to enter into the agreement and receive the funds for the project.
ALTERNATIVES:
1. The City Council can approve the State Revolving Fund Clean Water Loan
agreement in an amount not to exceed $797,000.
2. The Council can deny approval of the loan agreement and direct City staff to identify
other sources to fund the project to improve the wastewater lift stations.
MANAGER'S RECOMMENDED ACTION:
Approval of this loan agreement will ensure that funding is available to carry out the
wastewater lift station improvements as previously approved by Council.
Therefore, it is the recommendation of the City Manager that the City Council approve
Alternative No. 1 as described above.