Memorandum 16-106 Authorizing ADEC Alaska Clean Water Fund Loan Execution

Memorandum ID: 
16-106
Memorandum Status: 
Backup

Details

Memorandum 16-106

TO:                       Katie Koester - City Manager

FROM:                 Carey Meyer – Public Works Director

DATE:                  June 8, 2016

SUBJECT:         Resolutions Authorizing ADEC Alaska Clean Water Fund Loan Execution

                              Kachemak Drive (Phase III) Sewer Extension and

                             Lillian Walli Subdivision/Eric Lane Sewer Extension                       

 

 

The City Council has approved the creation of a Special Assessment District (SAD) to install the last portion of  sewer main on Kachemak Drive (Resolution 16-042)and to extend sewer main to properties fronting Eric Lane in the Lilian Walli Subdivision (Resolution 16-047).

 

An ADEC/EPA 20-year, low interest loan (currently 1.5%) is available to finance both the City and property owners’ share of the cost of the two projects.

 

As the two SAD resolutions were being acted upon, the Council evaluated the health of the Homer Accelerated Water and Sewer Program (HAWSP). It was determined that sufficient funds were available to complete these two projects, but that any additional projects would lower the Program fund amount below levels approved by the Council.

 

Twenty-five percent (25%) of the Kachemak Drive sewer project is directly funded by the HAWSP; 75% by the benefitted property owners. The benefitted property owners will be assessed 100% of the cost of the Eric Lane sewer project.

 

Loan payments for both projects will be made from the Homer Accelerated Water and Sewer Program (HAWSP) over a 20-year period (with assessments collected from property owners over this same time period).

 

Recommendation

 

The Homer City Council pass Resolutions 16-070 and 16-071 authorizing the City Manager to apply for, accept, and execute an Alaska Clean Water Fund low interest loan to finance the cost of the Kachemak Drive Sewer Extension (Phase III) and the Lillian Walli Subdivision/Eric Lane Sewer Extension project in the amounts of $801,100 and $262,000 respectively, and execute all appropriate related documents.