MEMORANDUM 09-47

TO: Walt Wrede, City Manager

FROM: Carey Meyer, Public Works Director

DATE: April 20, 2009

SUBJECT: Economic Stimulus – Midhill PRV Station Stairway Construction

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Early this year, Public Works made application for American Recovery and Reinvestment Act (ARRA) funding to construction a metal stairway to the Midhill PRV Station. Public Works was informed last week that our request for the funding for this project scored very well and that the City should move forward immediately to utilize the money requested. The City had requested $190,000 to construct stairs up a very steep portion of the bluff above Homer to access an important water system facility. This funding will come from the State of Alaska’s revolving loan fund. This fund is also known as the Alaska Drinking Water Fund (ADWF). The application scored well enough place this project in Category 1; eligible for first priority funding.

The construction of this project is eligible to be financed by a $190,000 “loan”. Upon a successful purchase, 100% of the loan principle would be “forgiven”.

The City has already designed the stairway; it was included in the Midhill PRV Replacement Project completed a few years ago, but was not awarded due to budgetary constraints. A construction contract must be formalized before June 17, 2009.

The award of the construction contract for this project will be based on a competitive bid process.

Recommendation:

1) The City Council authorize the City Manager to apply for, accept and execute an ADWF loan agreement, containing the loan conditions described above, for the construction of this project .

2) Authorize the City Manager to execute a construction contract with the successful competitive bidder per the requirements of the loan agreement and Homer procurement regulations without additional Council action..

Fiscal Note: 215-867-4992 Loan / PRV Station Stairway $190,000