MEMORANDUM #09-84

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: June 16, 2009

Subject: Midhill PRV Station Stairway

Expenditure Authorization

In previous correspondence with the Council, Public Works has stated that the cost to construct the Midhill PRV Station Stairway project would be funded using economic stimulus funds and that the loan for this project would be 100% forgiven. Since that time it has been determined that the “loan” is eligible for only 90% forgiveness.

The Council has authorized the acceptance of the loan with the understanding that 100% would be forgiven. The City will actually be responsible for 10% of this loan, or $19,000. The City is eligible for a 1.5% loan to finance this portion of the funding (over a several year period), or the City can pay off the loan by making a $19,000 payment at the end of the project.

Public Works suggest that this $19,000 portion of the project funding come from the Water Reserve Fund.

Recommendation: The City Council pass an ordinance authorizing the expenditure of $19,000 from the Water Reserve for the 10% loan match required to complete the Midhill PRV Station Stairway project.

(Fiscal Note: 265-378)