HomeMy WebLinkAboutR-2005-167 (Department of Ecology) Washington State Water Pollution Control Revolving Fund Construction Loan ApplicationRESOLUTION NO. R-2005- 167
A RESOLUTION ratifying the authorization of the City Manager to execute
applications, certifications and agreements pursuant to an application for a
construction loan from the Fiscal Year 2007 (7/1/06-6/30/07) Washington State
Water Pollution Control Revolving Fund (SRF), administered by the Washington
State Department of Ecology, in the amount of $4,000,000 for improvements to the
Wastewater Treatment Plant and other documents related to this project.
WHEREAS, the City of Yakima has developed a mandatory plan for wastewater
collection, treatment, disposal for the Yakima Regional Urban Area; such plan being
necessary to determine the needs of the area for health, safety and well being of the
people; and
WHEREAS, the mandatory plan was developed in accordance with the
requirements of WAC 173-240; and
WHEREAS, the mandatory plan identifies facilities and systems required to be
constructed, improved and rehabilitated at the Yakima Wastewater Treatment Facility
that address present and future growth and mandated (regulatory and renewal/safety)
requirements; and
WHEREAS, the Washington State Water Pollution Control Revolving Fund (SRF)
has made low interest loan funds available at 2.6% interest for sanitary sewer
construction projects; and
WHEREAS, the cost of construction of the Wastewater Treatment Facilities are
eligible for Washington State Water Pollution Control Revolving Fund (SRF) loan
financing; and
WHEREAS, it is necessary that certain conditions be met as part of the
application process; and
WHEREAS, RCW 43.155.060 requires that the project will be advertised for
competitive bids and administered according to standard local procedure; and
WHEREAS, any loan arising from this application constitutes a debt to be repaid,
and Max Linden, Wastewater Division Utility Engineer has reviewed and concluded it has
the necessary capacity to repay such a loan; and
WHEREAS, the information provided in this application is true and correct to the
best of the government's belief and knowledge and it is understood that the state may
verify information, and that untruthful or misleading information may be cause for
rejection of this application or termination of any subsequent loan agreement(s); and
WHEREAS, the City of Yakima certifies that it meets these requirements, and
further that it intends to enter into a loan agreement with the Washington State
Department of Ecology, provided that the terms and conditions for a Washington State
Water Pollution Control Revolving Fund (SRF) loan are satisfactory to both parties; now,
therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
To ratify the City Manager as the duly authorized designee to sign the application, loan
agreements and amendments, and other documents relating to Wastewater Facility
construction projects for the Fiscal Year 2007 (7/1/06-6/30/07) Washington State Water
Pollution Control Revolving Fund (SRF) loan program.
ADOPTED BY THE CITY COUNCIL this 1st day of November, 2005.
Paul P. George, Mayor
ATTEST:
City Clerk
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting Of: November 1, 2005
PURPOSE: Consideration of a resolution ratifying the authorization of the City
Manager to execute documents and agreements pursuant to a loan
application to the Fiscal Year 2007 Washington State Water Pollution
Control Revolving Fund (SRF) for $4 million to implement the first
project phase of construction improvements at the City of Yakima
Wastewater Treatment Facility.
SUBMITTED BY: Doug Mayo, Wastewater Division Manager
Max Linden, Wastewater Division Utility Engineer
CONTACT: Doug Mayo, 575-6077
Max Linden, 249-6814
SUMMARY EXPLANATION:
The Wastewater Division of the City respectfully requests permission to apply for a $4
million (2.6% interest) construction loan from the Washington State Water Pollution
Control Revolving Fund (SRF) to supplement the 2003 Revenue Bond for improvements to
the Wastewater Treatment Facility. This first group of projects recommended to be
constructed were identified in the adopted mandatory 2004 Wastewater Facility Plan as
priority improvements in the 0-6 year near term portion of the overall 20 year Facility Plan.
Continued
Resolution X Ordinance Contract Other:
Funding Source: Fund 473 - Wastewater Operation Fund
Approval for Submittal:
City anager
STAFF RECOMMENDATION:
Staff respectfully requests City Council approve this resolution ratifying the authorization of
the City Manager to execute documents and agreements pursuant to a loan application to the
Washington State Water Pollution Control Revolving Fund (SRF) for $4 million.
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2005-167
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Along with revenues generated from the current wastewater rate structure additional
funding assistance for this package of projects comes from bonds. Approximately
$10 million in proceeds from sale of the Series B Bonds is being used to fund this
package of projects and capital improvements involving the City's Wastewater
Treatment Plant.
The improvements have been identified as part of the near term (0-6 yrs.) priority
improvements in the mandatory 2004 Wastewater Facility Plan, and are being
packaged as one project. This package includes having our engineer upgrade the
plants SCADA system (currently under way), two bid packages to pre -purchase
blowers and a centrifuge (ready to go out for bid) and a construction bid package
planned to be advertised for bid in October of 2005. The construction package
includes buildings for the pre -purchased equipment, emergency power, converting to
Ultra Violet disinfection, adding a grease receiving facility, and upgrades to digester
piping. The total cost of this will be approximately $13,796,000.
With the $10 million bond available an additional $4,000,000 low interest loan (at
2.6%) from the Washington State Water Pollution Control Revolving Fund is required
to complete funding for this $13,796,000 package. This is the first opportunity we
have had to apply for this low interest loan in several years and cannot afford to miss
this opportunity. With existing revenues and payment of existing loans and
bonds in 2008 the Wastewater Division will be able to make debt payments for
the $4 Million loan without raising existing monthly wastewater service rates or
connection charges.
This package consisting of the bond and loan will provide funding for improvements
to the Wastewater Treatment Plant through 2008, then additional funding for
identified future required improvements to the Wastewater Treatment Plant over the
20 -year planning process would continue to be required. Long term financing
strategies will include continuing to apply for grant and low interest funding, where
appropriate, and maintaining current and equitable connection charges and fees so
that growth can finance required system expansions.
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