Memorandum 11-153 EPA Special Act Appropriations Project (SAAP) Grant Recommendation to Utilize Available Funding Kachemak Drive (Phase II) Water & Sewer Project

CITY OF HOMER
PUBLIC WORKS TELEPHONE (907)235-3170

3575 HEATH STREET HOMER, AK 99603 FACSIMILE (907)235-3145
 

MEMORANDUM 11-153

TO: Walt Wrede, City Manager

FROM: Carey Meyer, Public Works Director

DATE: November 16, 2011

RE: EPA Special Act Appropriations Project (SAAP) Grant
Recommendation to Utilize Available Funding
Kachemak Drive (Phase II) Water & Sewer Project
__________________________________________________________________________________

EPA has indicated that federal grant monies are available to the City of Homer for use in completing a water/wastewater project. The amount of available funding is $485,000. These funds require a 45% matching contribution.

Projects that have already been started are eligible for reimbursement under the grant conditions; if contract procurement is in compliance with Federal Regulations (40 CFR Part 31) and have a complete NEPA environmental review.

The Kachemak Drive (Phase II) Water & Sewer Improvements Project appears to meet procurement and environmental review requirements. EPA is expected to determine that the project is eligible to be funded by the SAAP grant.

The grant is expected to cover a portion of the City’s costs associated with the project. The portion of the $3.5 million project that the City is responsible for exceeds $1.0 million. The Council has previously authorized the expenditure of Homer Accelerated Water and Sewer Program (HAWSP) funds to cover the City’s share of the project. The required SAAP grant matching contribution would come from these HAWSP funds; the $485,000 grant would be used to cover the City’s cost of construction.

Recommendations: The City Council pass a resolution authorizing the City Manager to apply for the EPA SAAP grant and execute a grant agreement for the Kachemak Drive (Phase II) Water & Sewer Improvements project.