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CITY
OF
PUBLIC WORKS TELEPHONE
(907)235-3170
MEMORANDUM 07-190
To:
From:
Date:
Subject: Homer
Water Treatment Plant Improvement Project
Request for ADWF Loan
Application Authorization
The City (starting
in 2005) secured funding for this project.
In the State’s FY 06 budget, $480,000 was obtained (70% State/30% City)
for design. In the State’s FY 07 budget, $2,072,000 was obtained (50% State/50%
City) for final design and construction. In the State’s FY 08 budget, $2,500,000
was obtained (50% State/50% City) for construction. The City has requested an additional $2,400,000
(50% State/50
Total funding in
place (with the FY 09 requested funding) - $7,452,000 ($3,822,000 State/$3,630,000
City). The City can secure low interest
loans (2.5%) through the Alaska Drinking Water Fund (ADWF) for the City’s share
of the funding already secured and the remainder of the cost of the project. The expected construction cost of the project
is $9,172,848.
The total budget for
this project is as follows:
City Admin./Support Contracts $ 250,865
Design $ 842,645
Construction $ 9,172,848*
Inspection $ 650,000
Contingency (5%) $ 458,642
Total Project Budget $ 11,375,000
The schedule for the
project is anticipated as follows:
Complete Final Design of WTP
facility December,
2007
Open Bids for Construction of WTP
facility February, 2008
Award Bids for Construction of WTP
facility February,
2008
All Grant and Loan Funds in Place February,
2008
Issue Notice to Proceed for WTP
facility March,
2008
Start Construction of WTP facility May,
2008
Procured Treatment Equipment Arrives
in Homer June,
2008
Construction of WTP facility
Complete November,
2008
Funding for the
project is anticipated as follows:
City
Portion State Portion Total
ADEC FY 06 Grant $ 144,000 $
336,000 $ 480,000
ADEC FY 07 Grant $ 1,036,000 $ 1,036,000 $ 2,072,000
ADEC FY 08 Grant $ 1,300,000 $ 1,300,000 $ 2,600,000
ADEC FY 09 Grant $
1,200,000 $ 1,200,000 $ 2,400,000
ACWF Loan (remaining) $ 3,823,000 $ 0 $ 3,823,000
$
7,503,000* $ 3,872,000 $ 11,375,000
* - This is
the anticipated ADWF loan amount
Recommendations:
The City Council approve
a resolution authorizing the ADWF loan application and the acceptance of the
future loan offer from the Alaska Department of Environmental Conservation.
With the approval of
the resolution, the City will apply for the ADWF loan in December, 2007and
accept the loan offer in February, 2008.