CITY OF HOMER
PUBLIC WORKS TELEPHONE (907)235-3170
3575 HEATH STREET HOMER, AK 99603 FACSIMILE (907)235-3145
TO: Walt Wrede, City Manager
FROM: Carey Meyer, Public Works Director
DATE: January 5, 2011
RE: Homer Sanitary Sewer Rehabilitation Project
Status of Funding – Establishment of Original Budget
In September 2009, the City Council authorized applying for and accepting a $1,800,000 ARRA economic stimulus loan (90% forgiven) to rehabilitate old sewer mains. The original project budget is shown in the first column of the table below.
ADEC required that we de-obligate a portion of the original funding (to be used to cover overages on other statewide projects). The project budget after was adjusted by the City Council in February 2010; the current budget is shown in the second column of the table below.
Bid Preparation $ 50,000 $ 44,000
Inspection $ 50,000 $ 68,000
Construction $ 1,600,000 $ 1,171,386
Contingency $ 100,000 $ 121,259
Total Project Funding $ 1,800,000 $ 1,404,645
Proposed City Responsibility $ 180,000 $ 140,464
ADEC has found it possible to add $395,355 back into the funding for the project, which will re-establish the budget for this project to its original amount. This will allow us to rehabilitate 3600 linear feet of sewer pipe in the Central Business District and repair corrosion in sanitary sewer manholes along Ocean Drive and Lake Street that were previously identified.
Recommendations: The City Council approve a resolution re-establishing a budget of $1,800,000 for the Sanitary Sewer Rehabilitation project and authorizing the City Manager to execute all appropriate documents.