HomeMy WebLinkAboutA005 - Motion authorizing Mayor to sign the $500,000 Grant Contract with the Iowa Finance Authority for the Wastewater and Drinking Water Treatment Financial Assistance ProgramITEM #:7
DATE:02-24-26
DEPT:W&PC
SUBJECT:GRANT CONTRACT WITH THE IOWA FINANCE AUTHORITY FOR THE
WASTEWATER AND DRINKING WATER TREATMENT FINANCIAL
ASSISTANCE PROGRAM (WTFAP)
COUNCIL ACTION FORM
BACKGROUND:
The Water Pollution Control Facility is nearly 50% complete with modifications to its treatment
processes. These modifications are the first of two construction phases that will ultimately
enable the facility to achieve the goals of the Iowa Nutrient Reduction Strategy.
The authorized budget for the project is $62,540,000. Of that, $59,777,282 has been
expended or encumbered, leaving a remaining contingency of $2,761,718.
Staff applied for a grant from the Wastewater and Drinking Water Treatment Financial
Assistance Program (WTFAP), administered by the Iowa Finance Authority. The application
staff submitted requested the maximum award amount of $500,000. The nutrient reduction
project qualified for the grant program under three different funding priorities established by
the program:
Projects whose completion will provide significant improvement to water quality in the
watershed
Communities employing alternative wastewater treatment technology
Communities employing technology to address the goals of the Iowa Nutrient Reduction
Strategy.
On February 4, 2026, staff was informed that the application was successful, and the
City was being awarded $500,000. The payment of the grant funds will be made on the next
State Revolving Fund (SRF) loan disbursement request. The first $500,000 will be from the
grant award, then the balance will come from the SRF loan. The net impact would be a lower
principal on the SRF loan at the end of the project.
The Grant Contract, attached, has been reviewed by the City Legal Department and been
found acceptable. The Contract is now ready for the Council to authorize the Mayor to execute
the contract on behalf of the City.
ALTERNATIVES:
1. Authorize the Mayor to execute the attached Grant Contract, accepting the $500,000
award that will be applied to the State Revolving Fund loan for the Water Pollution
Control Facility Nutrient Reduction Modifications project.
2. Do not authorize the Grant Contract and forego the $500,000 grant award.
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CITY MANAGER'S RECOMMENDED ACTION:
Given the impact of large capital projects on ratepayers, staff is continuously seeking
alternatives to control those impacts to the greatest extent possible. Accepting the $500,000
grant award would result in a lower principal balance on the SRF loan that is financing the
WPC Nutrient Reduction Modifications project, which in turn will lower the debt service
payments on the loan. Therefore, it is the recommendation of the City Manager that the City
Council adopt Alternative #1 as described above.
ATTACHMENT(S):
Ames - WTFAP - 26-01 - Grant Agreement_not_encrypted.pdf
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