MEMORANDUM 03-133

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: August 4, 2003

Subject: Request Council Action

Authorizing Alaska Clean Water Fund Loan Application

Authorizing the Acceptance of a Loan Offer

Awarding of Water/Sewer Master Plan Design Contract

All agree that the City needs to complete a water/sewer master plan. To that end, the City has applied for grants and loans to fund the preparation of the plan, and issued an RFP to identify the most qualified firm to complete the work. The current water plan is over twenty years old and no formal City wide comprehensive sewer plan has ever been prepared.

With the help of our state representative, Mr. Seaton, partial funding for the Homer water/sewer master plan was included in the list of capital projects in next years state budget ($175,000). Unfortunately, most of these capital projects, including the master plan were eliminated from the State’s budget. The City made an application for Alaska Clean Water/Drinking Water fund loan ($240,000), but the City did not score well enough to be awarded any of the available 2004 loan funding. Recently ADEC suggested that we could use left over 2003 Homer project loan funding from the 2.5% loan we qualified for last year, for the water portion of the master plan. They encouraged us to make application for the use of loan funds left over from other state projects, to fund the sewer portion of the master plan. This new application was submitted on July 31 and is attached for your information.

Public Works expects that at least $150, 000 will be left over from the previously awarded Alaska Drinking Water fund 2.5% loan amount (water LID’s are under budget), and these funds can be used to pay for the water portion of the plan. The attached application requests an additional $150,000 in Alaska Clean Water fund loans to cover the sewer portion of the plan. Combining these two loan funds will provide a $300,000 budget to complete the water and sewer master plan. The loan would be for 10 years at 2.5% and be repaid from the HAWSP account.

Bristol Environmental & Engineering Services Corporation was selected as the most qualified firm to complete the plan based on the evaluation committee’s ranking of the seven firms that submitted proposals. Public Works developed a scope of work and established the cost of preparing the master plans at $291,126.

The scope of work includes:

preparation of mapping of future water main extensions and improvements needed to effectively expand the water system within the expanded City limits,
preparation of mapping of future sewer main extensions and improvements needed to effectively expand the sewer system within the expanded City limits,
evaluate sewer treatment capacities and water source and treatment capacities and recommend options to serve the area over the next 20 years,
obtain GPS survey data on all manholes, valve, hydrants, and mains and incorporation of all water and sewer infrastructure data into the City’s GIS software. This effort includes installing a GIS base station to support the wetlands study being undertaken by the planning department and will assure that all future GIS information obtained within the City is collected cost effectively and is compatible with the City’s GIS data base,
prepare a computer model of the water and sewer system to provide City staff with a tool to evaluate future planned modifications to the water and sewer systems,
purchase all necessary software and hardware required,
provide training to the Public Works and Planning departments,
provide for public meetings to inform the public of the plan, obtain input from affected residents, and answer questions of interested parties,
establish the costs associated with the improvements needed.
preparation of final Water and Sewer Master Plan report, maps and recommendations

Recommendation:

A resolution be passed by the City Council that authorizes the $150,000 Alaska Clean Water Fund loan application (attached) and specifying that an additional resolution will be issued to authorize the acceptance of a loan offer from the Alaska Clean Water Fund. Authorize the City Manager to execute all appropriate documents.

An ordinance be passed that establishes a $300,000 budget for the Homer Water and Sewer Master Plan.

A follow-up resolution will be presented to the Council that will award the master plan to the firm of Bristol Environmental & Engineering Services Corporation, Anchorage, Alaska and authorizing the City Manager to execute all appropriate documents.

(Fiscal Note: up to $150,000 from the 2003 Alaska Drinking Water Fund loan to fund the water portion of the master plan; and up to $150,000 from the 2003 Alaska Clean Water Fund loan to fund the sewer portion of the master plan; with the 2.5% loan paid off over 10 years from HAWSP funds.)