HomeMy WebLinkAbout2007-053 South Airport - Ahtanum Industrial Area Sewer Extension Project; Budget Amendment and Appropriation ,`.
ORDINANCE NO 2007- 53
AN ORDINANCE amending the 2007 budget for the City of Yakima, and making an
appropriation of $530,450 within the 476 — Sewer Construction
Fund for expenditure during 2007 to provide for a Sewer Extension
Project in the South Airport- Ahtanum Industrial Area.
WHEREAS, the amount of $530,450 must be appropriated within the 476 — Sewer
Construction Fund for expenditure during 2007 to provide for a Sewer Extension Project in the
South Airport- Ahtanum Industrial Area, and
WHEREAS, at the time of the adoption of the 2007 budget it could not reasonably have
been foreseen that the appropriation provided for by this ordinance would be required; and the
City Council declares that an emergency exists of the type contemplated by RCW 35 33.091
and that it is in the best interests of the City to make the appropriation herein provided, now,
therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA.
Section 1. The amount of $530,450 is hereby appropriated from the Unappropriated
Fund Balance in the 476 — Sewer Construction Fund to the following accounts as a 2007
appropriation
Resources
SIED Grant -------------------------- - - - - -- 476 -476- 218 - 2237 - 33700 -ILG -- $253,875
SIED Loan 476 -476- 218 - 2237 - 39180 -COU — $253,875
Developer Contributions - -- 476 - 476 - 218 - 2237 - 37900 -CNT -- $22,700
Total Resources $530,450
Expenditures.
S Airport- Ahtanum Sewer Extension - -- 476 -476- 218 - 2237 - 59435 -650 -- $530,450
Section 2: This ordinance is one making an appropriation and shall take effect
immediately upon its passage, approval and publication as provided by law and by the City
Charter
PASSED BY THE CITY COUNCIL, signed and approved this 16 day of October 2007
Ziaea&
David Edler, Mayor
ATTEST
A ..
City Jerk
First Reading 10 -2 -2007
Publication Date 10 -19 -2007
Effective Date 10 -19 -2007
Cje ORD NO 2007 -53 S Airport Ahtanum SIED approp 07 12/2/2007
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No ' 1 GI
1'
For Meeting Of• October', 2007
ITEM TITLE Consideration of legislation regarding a Sewer Extension Project:
A. A resolution authorizing the City Manager to execute and submit
a grant/loan application to the Yakima County Supporting
Investments in Economic Diversification (SIED) fund for the South
Airport- Ahtanum Industrial Area Sewer Extension Project.
B An Ordinance amending the 2007 budget and Making an
Appropriation in the 476 — Sewer Construction Fund
SUBMITTED BY Bill Cook, Director of Community and Economic Development
Cindy Epperson, Financial Services Manager Cam.
CONTACT Michael Morales, Deputy Director 575 -3533
SUMMARY EXPLANATION
Adam and Elizabeth Smith have proposed to construct a 4,300 linear foot extension of
12' city sewer main to serve properties in the south Airport area between South 26
Avenue and Airport Lane to South 38 Avenue and Sorensen Road The project will
have the capacity to serve 355 acres of Light Industrial zoned property which currently
does not have sewer services available, and is estimated to cost $530,450
CONTINUED ON NEXT PAGE
Resolution X Ordinance X Contract _ Other Grant & Loan Application
Funding Source Yakima County SIED Fund - -Sewer Collection Fund
Approval for Submittal
City Manager
STAFF RECOMMENDATION
A. Approve the attached Resolution authorizing the City Manager to execute and
submit a SIED grant/loan and take additional actions to complete the project.
B Read the attached Ordinance by title only at the October 2, 2007 meeting Pass
ordinance after second reading at the October 16, 2007 Council Meeting
BOARD RECOMMENDATION
COUNCIL ACTION A. Resolution adopted. RESOLUTION NO. R- 2007 -142 (SIED grant)
B. Ordinance read by title only; second reading scheduled 10 -16 -07
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As direct route to Interstate 82 is completed by the Valley Mall Boulevard Project and
the realignment of South 16 Avenue to connect Ahtanum Road to Valley Mall
Boulevard, the viability of, and demand for industrial property along the south side of
Yakima Airport will increase. The project is consistent with millions of dollars worth of
infrastructure improvements to the area that have taken place over the past 10 years
Ultimately, this sewer line could be extended to the west as far as South 64 Avenue
(approx. 8500 If), which will help spur development on approximately 500 additional
acres of property While the westernmost properties will be primarily residential, the
properties adjacent to, and directly affected by, this project will be developed for
industrial, commercial and aviation related businesses
Upon award, the City will enter into a loan agreement with Yakima County for
repayment of the loan portion (50 %), estimated to be $253,875 and will also enter into
an agreement with Adam & Elizabeth Smith for repayment to the City of the
aforementioned obligation (The current project estimate is approximately $22,700
more than the total of the loan and grant. The Smiths have agreed to reimburse the City
for any costs in excess of the SIED revenue )
The SIED program is a Yakima County funding source for economic development that
originates from a refund of County tax revenue from the State of Washington SIED is
administered for the County by YCDA/New Vision, and the advisory board is appointed
by the County, with nominations from the cities.
SIED funds are available only for construction of public infrastructure, and only in
association with new private sector development that creates or retains jobs. SIED
funding consists of a loan and grant award from Yakima County to the applicant
municipality or port district.
The project will be accounted for in the 476 = Sewer Construction Fund The attached
appropriation is balanced, as revenues consisting of the SIED grant and loan of
$253,875 each, and a contribution from the developer of $22,700 equal the project
expenditure budget of $530,450 Therefore, the capital reserves for the sewer
collection system are not proposed to be used for this project.
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