HomeMy WebLinkAboutR-2006-060 Washington State Public Works Trust Fund Loan AgreementRESOLUTION NO. R-2006-60
A RESOLUTION to authorize the City Manager to execute all necessary documents to
complete and submit an application for a loan from the Washington State
Public Works Trust Fund in the amount of $1,995,630 for the replacement
of the City of Yakima's Ranney Well, and, if the loan application is
approved, to execute all necessary certifications, agreements and other
documents to complete the loan transaction.
WHEREAS, the City of Yakima recognizes that the provision of infrastructure is
important to all residents and businesses of the community; and
WHEREAS, in the 2004 Water System Plan Update an evaluation of the domestic water
system identified deficiencies in the water supply for the City of Yakima, including the need for a
new water supply well to replace the Ranney Well; and
WHEREAS, the City has the necessary ground water right for a new supply well; and
WHEREAS, replacement of the Ranney Well will help correct the deficiencies identified
in the aforementioned plan to optimize the water supply, meet the domestic water supply needs
for Yakima, and increase the reliability of the City's water supply system; and
WHEREAS, these improvements are consistent with both the 2004 Cost of Service and
Rate Study and the City's Capital Improvements Plan (CIP); and
WHEREAS, the Washington State Public Works Trust Fund has made low-interest loan
funds available for the construction and repair of water utilities; and
WHEREAS, the City will generate local funds from the Water CIP budget and reserves
to be used as a local match for a Public Works Trust Fund loan in the amount of $352,170; and
WHEREAS, the amount of local match funds provided will afford to the City a generous
interest rate of 0.5% on the $1,995,630 loan; and
WHEREAS, based on the foregoing, the City Council has determined that it is in the best
interest of the City to apply for funding from the Washington Public Works Trust Fund to replace
the City's Ranney Well, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized and directed to execute all necessary documents
to complete and submit an application for a loan from the Washington State Public Works Trust
Fund in the amount of $1,995,630 for the replacement of the City of Yakima's Ranney Well and,
if the loan application is approved, to execute all necessary certifications, agreements and other
documents to complete the loan transaction.
ADOPTED BY THE CITY COUNCIL this 4th day of April, 2006.
ATTEST:
,4
City Clerk
David Edler, Mayor
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 1C1
For Meeting of April 4, 2006
ITEM TITLE:
Consideration of a resolution authorizing the City Manager to exec!ite documents and
agreements pursuant to a loan application to the Washington Public Works Trust Fund for
$1,995,630 to drill a new 3,000 gallon per minute water supply well.
SUBMITTED BY: Dave Brown, Water/Irrigation Division Manager
CONTACT PERSON/TELEPHONE: Dave Brown, 575-6204
SUMMARY EXPLANATION:
The City of Yakima Water/Irrigation Division requests Council approval to apply for a $1,995,630 loan
from the state Public Works Trust Funds for a new 3,000 gallon per minute water supply well. This
application would be for 2006-07 funds, with the work scheduled to be completed from 2007 to 2008.
In order to secure the lowest program interest rate of 0.5%, the City is required to provide a local match
(from non -grant sources) of at least 15%. The Water/Irrigation Division is proposing the match of
$352,170 be provided from its Capital Improvements Program budget (reserves). The total project cost
is estimated at $2,347,800.
The scope of work for the includes:
• Conduct study to determine exact location for well, including hydrogeology and distribution system
analysis and preparation of drilling bid specifications.
• Design of well including pump and building
• Drilling well, installing casing and screens
• Installing pump
• Building new pump house
• Mechanical and electrical connections
• Telemetry connections
Cont... next page
Resolution X Ordinance Other (Specify)
Contract Mail to (name and address):
Phone:
Funding Source 474 Water Operating Fund & Public Works Trust Fund
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION:
Staff respectively requests adoption of resolution
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2006-60
Cont.. from first page
• Connection to water distribution system
• Install Disinfection
• Install Fluoride
• Backup Generator
• Treatment for taste & odor and/or iron & manganese
• Define Wellhead Protection area and modify Wellhead Protection Program
• Decommission Ranney Well
These improvements are consistent with, and identified in, the 2004 Cost of Service and Rate Study, as
well as the 2004 Water System Plan.
With Council approval staff will submit the application by May 8, 2006. The project funding list will
be announced this fall and must be approved by the legislature in the 2007 session.