MEMORANDUM 06-06

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: December 29, 2005

Subject: PRV Vault Replacement Project

Mid Hill and Hilltop Stations

Request to Expend HAWSP Funds

Completion of Access Improvements

Background: The City Council has accepted a grant from the Alaska Department of Environmental Conservation in the amount of approximately $1,500,000 for the design and construction of a 1.0 million gallon water tank and transmission main improvements. This grant required a 30% City match which brought the total funding for these projects to approximately $2,200,000.

In 2002, the City initiated the design of the 1.0 MG water tank. In 2003, the City constructed the water tank. The total cost of this portion of the project was approximately $1,500,000.

In 2005 the City initiated the second phase of the project; the design of transmission main improvements (PRV Station replacements). The City Council awarded this project in the amount of approximately $650,000. The access improvements were not awarded based on the cost (another $250,000). This leaves approximately $50,000 left in the budget for the projects.

Discussion: Public Works and the Contractor have reevaluated the access improvements and have come up with an alternative. These PRV stations are located on very steep terrain and require routine and constant maintenance. The cost of this alternative is $98,000. The original access improvements consisted of an 8’ foot wide access road and a permanent elevated steel staircase. The new alternative consists of an 8’ wide trail and a simple timber stairway.

Recommendation: The City Council authorize the expenditure of HAWSP funds to provide additional funding for the alternative access improvements in the amount of $98,000. Should some of the remaining $50,000 contingency be available at the end of the project it will be used to reduce this required additional funding.