HomeMy WebLinkAboutA019 - Resolution No. 22-378 adopted July 12, 2022 i
RESOLUTION NO. 22-378
RESOLUTION APPROVING THE FINAL CONSTRUCTION LOAN APPLICATION
TO BORROW AN AMOUNT NOT TO EXCEED $3,500,000 IN WATER REVENUE
BONDS (SRF LOANS) FOR DEMOLITION OF THE
OLD WATER TREATMENT PLANT
FOR THE CITY OF AMES, IOWA
WHEREAS, during the design of the new Water Treatment Plant, City staff made a
commitment to demolish the old treatment facility as soon as practical to prevent it from becoming
an abandoned eyesore for the neighborhood; and,
WHEREAS,the new Water Treatment Plant started operation in Fall 2017, and it is time to
demolish the old Water Treatment Plant; and,
WHEREAS, the project will demolish the filter building, chemical feed building, external
treatment basins, administrative offices, and 3/4 million gallon ground reservoir; and,
WHEREAS, improvements to the site distribution and raw water piping will be included in
the project; and,
WHEREAS,the high service pump station,two-million-gallon storage reservoir, and five-
million-gallon storage reservoir will remain; and,
WHEREAS,a State Revolving Fund(SRF)Drinking Water Loan in an amount not to exceed
$3,500,000 has been identified as the funding source for the demolition of the Old Water Plant and
repayment of the Loan will be from water utility revenues; and,
WHEREAS,the not-to-exceed amount was established to cover any potential cost increases
and change orders; the City will only borrow the amount actually needed to fund the project; and,
WHEREAS,a public hearing to proceed with the SRF loan was held on June 14,2022,,and
staff has now completed the loan application and it is ready for approval; and,
WHEREAS, the cost breakdown regarding the loan is shown below:
Engineering Services (design/bidding/const.) $277,200
Loan Origination Fees (0.5%) 17,413
Construction 2,398,000
Contingency 807,387
Total Project Cost $3,500,000
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the final construction loan application to borrow an amount not to exceed$3,500,000 in Water
Revenue Bonds (SRF loan) for demolition of the Old Water Treatment Plant is hereby approved.
ADOPTED THIS 12" day of July, 2022.
L1az.1-
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by: Junck
Seconded by: Beatty-Hansen
Voting aye: Beatty-Hansen, Corrieri, Gartin, Junck, Rollins
Voting nay: None Absent: Betcher
Resolution declared adopted and signed by the Mayor this 12" day of July, 2022.