Memorandum 10-06 Authorize Increase ARRA Loan Amount for Vacuum Type Street Sweeper

MEMORANDUM 10-06

TO: Walt Wrede, City Manager
FROM: Carey Meyer, Public Works Director
DATE: January 5, 2010
RE: Authorize Increased ARRA Loan Amount Vacuum Type Street Sweeper
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The City Council passed Resolution 09-97, authorizing the City Manager to apply for and accept an ARRA (90% forgiveness economic stimulus) loan in the amount of $100,000 to help purchase a vacuum type street sweeper for $145,355. The City used reserve funds to cover the remaining portion.

Additional ARRA funds have been identified that would provide complete funding (90% forgiveness loan) for the entire purchase price. A new resolution is required to authorize the City Manager to apply for and accept a loan for the total amount.

Recommendations: The City Council approve a resolution (10-06) authorizing the City Manager to apply for an ARRA the loan for the purchase of a vacuum type sweeper in the amount of $145,355, 90% of which will be forgiven when the City successfully completes the purchase of the sweeper, and authorize the City Manager to execute all appropriate loan documents.