HomeMy WebLinkAboutA010 - Council Action Form dated October 9, 2018 ITEM # 8
DATE: 10-09-18
COUNCIL ACTION FORM
SUBJECT: APPROVAL OF LOAN AGREEMENT FOR STATE REVOLVING FUND
CLEAN WATER DEBT IN AN AMOUNT NOT TO EXCEED $5,700,000 FOR
SANITARY SEWER SYSTEM IMPROVEMENTS
BACKGROUND:
The City's Capital Improvements Plan includes an ongoing program for rehabilitation and
reconstruction of deficient sanitary sewers and deteriorated manholes at various locations
throughout the City. This program will reduce the amount of inflow and infiltration (I & 1) that
must be treated at our Water Pollution Control Facility. The program is expected to continue
for at least the next six to seven years; and State Revolving Fund (SRF) Clean Water
Loans are the annual funding source for these improvements.
A SRF Clean Water Loan in the amount of $5,700,000 is needed to finance the next phase
of these improvements. Repayment of the loan will be from wastewater utility revenues. A
public hearing was held on September 25, 2018, 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 $5,700,000.
2. The Council can deny approval of the loan agreement and direct City staff to identify
other sources to fund the project.
CITY MANAGER'S RECOMMENDED ACTION:
Approval of this loan agreement will ensure that funding is available to carry out the
rehabilitation and reconstruction of deficient sanitary sewers and deteriorated manholes 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.