HomeMy WebLinkAboutR-2007-060 Washington State Public Works Trust Fund Loan Application (re: replacement of the Ranney Well)RESOLUTION NO. R-2007-60
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 $2,257,200 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 $400,000; and
WHEREAS, the amount of local match funds provided will afford to the City a generous
interest rate of 0.5% on the $2,257,200 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 $2,257,200 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 17th day of April, 2007.
ATTEST:
David dler, Mayor
City Clerk
PUBLIC WORKS TRUST FUND
CONSTRUCTION LOAN AGREEMENT
NUMBER PC08-951-051
City of Yakima
PART 1: ENTIRE AGREEMENT
This agreement, and incorporated attachments contains all terns and conditions agreed to by the
WASHINGTON STATE PUBLIC WORKS BOARD (referred to as the "BOARD") and the
City of Yakima (referred to as the "BORROWER") and no other statements or representations,
wntten or oral, shall be deemed a part thereof. This contract includes ATTACHMENT I:
SCOPE OF WORK, which consists of a description of local project activities, certification of
the project's useful life, estimated project costs and fund sources; and ATTACHMENT II:
ATTORNEY'S CERTIFICATION. These attachments are, by this reference, incorporated into
this agreement as though set forth fully herein.
The PUBLIC WORKS BOARD and the BORROWER have executed this agreement as of the
date and year last written below.
e
Date
APPROVED AS TO FORM ONLY
This 6th Day of March, 2007
Rob McKenna
Attorney General
By: Signature on File
Andrew Scott
Assistant Attorney General
CITY CONTRAC f NO: does --52-
RESOLUTION NO' /►;��D7 ��
City of Yakima
Page 3
Print Name
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Title
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Date
-4 001 2q3
Federal Taxpayer Identification Number
I /24/2005
PART II: INTRODUCTION
This loan agreement is made and entered into by and between the BOARD, or its successor,
and the BORROWER.
Acting under the authority of Chapter 43.155 RCW, the BOARD has awarded the
BORROWER a Public Works Trust Fund loan for an approved public works project.
PART III: PURPOSE
The BOARD and the BORROWER have entered into this agreement to undertake a local
public works project that furthers the goals and objectives of the Washington State Public
Works Trust Fund Program. The project will be undertaken by the BORROWER and will
include the activities described in ATTACHMENT I: SCOPE OF WORK. The project must be
undertaken in accordance with PART IV: TERMS AND CONDITIONS, and all applicable
state and local laws and ordinances, which by this reference are incorporated into this
agreement as though set forth fully herein.
PART IV: TERMS AND CONDITIONS
The parties to this agreement agree as follows:
4.01 Rate and Term of Loan
The BOARD, using funds appropriated from the Public Works Assistance Account, shall loan
the BORROWER a sum not to exceed $2,257,200.00. The interest rate shall be 0.50% per
annum on the outstanding principal balance The term of the loan shall not exceed 20 years,
with the final payment due July 1, 2028
4.02 Eligible Project Costs and Local Project Share
The BORROWER pledges to use an amount of local funds as local project share of not less
than 15.0% of the total eligible portion of the project cost not funded by federal or state grants
as identified in ATTACHMENT I: SCOPE OF WORK. The amount of the local funds will be
verified at project closeout. Any increase in the percentage of local funds may require an
adjustment in the loan amount or interest rate charged, or both. The interest rate adjustment
will apply to the remaining payments beginning the fiscal year of closeout. The BORROWER
agrees to execute the Certified Closeout Amendment as an amendment to this agreement
adjusting the loan amount or interest rate, as appropriate
Eligible project costs must consist of expenditures eligible under WAC 399-30-030 and be
related only to project activities described in ATTACHMENT 1. SCOPE OF WORK. Only
those costs incurred after execution of this loan agreement can be reimbursed with Public
Works Trust Fund monies. Expenditures made up to twelve (12) months prior to the execution
of the loan agreement and verified at the time of project close out may be used as match for
local project share.
City of Yakima
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4.03 Disbursement of Loan Proceeds
The availability of funds in the Public Works Assistance Account is a function of tax
collection, loan repayment, and legislative appropriation. If funding or appropriation is not
available at the time the invoice is submitted, or when the agreement is executed, the issuance
of warrants will be delayed or suspended until such time as funds become available. Therefore,
subject to the availability of funds, warrants shall be issued to the BORROWER for payment of
allowable expenses incurred by the BORROWER while undertaking and administering
approved project activities in accordance with ATTACHMENT I: SCOPE OF WORK. In no
event shall the total Public Works Trust Fund loan exceed 85 00 % of the eligible actual project
costs. The BORROWER shall initiate a loan disbursement using a Washington State Invoice
Voucher form. The loan funds will be disbursed to the BORROWER as follows.
Upon formal execution of this agreement, a sum not to exceed 20% of the approved Public
Works Trust Fund loan may be disbursed to the BORROWER. Moores shall not be used for
any construction costs incurred prior to compliance with Executive Order 05-05 Archaeological
and Cultural Resources as referenced in Section 4.22 or Section 106 of the National Historic
Preservation Act, whichever applies to this project.
Upon execution of a Public Works Trust Fund Notice to Proceed, which follows the formal
award of a construction contract, and documented compliance with Executive Order 05-05
Archaeological and Cultural Resources as referenced in Section 4.22 or Section 106 of the
National Historic Preservation Act, whichever applies to this project, a sum not to exceed 25%
of the approved Public Works Trust Fund loan may be disbursed to the BORROWER.
When the BORROWER certifies that 35% of the Public Works Trust Fund loan amount has
been spent, a sum not to exceed 25% of the approved Public Works Trust Fund loan may be
disbursed to the BORROWER.
When the BORROWER certifies that 60% of the Public Works Trust Fund loan amount has
been spent, a sum not to exceed 25% of the approved Public Works Trust Fund loan may be
disbursed to the BORROWER.
At the time of project completion, the BORROWER shall submit, to the BOARD, a Certified
Closeout Amendment certifying the total actual project costs and local share.
The final Public Works Trust Fund loan disbursement shall brng the total loan to the lesser of
85.00 % of the eligible project costs or the total of $2,257,200.00 The Certified Closeout
Amendment shall serve as a contract amendment determining the final loan amount, local share
and interest rate
In the event that the final costs identified in the Certified Closeout Amendment indicate that the
BORROWER has received Public Works Trust Fund monies in excess of 85 00 % of eligible
costs, all funds in excess of 85.00 % shall be repaid to the Public Works Assistance Account by
payment to the Department of Community, Trade and Economic Development, or its
successor, within 30 days of submission of the Certified Closeout Amendment.
City of Yakima
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4.04 Interest Earned on Public Works Trust Fund Monies
All interest earned on Public Works Trust Fund Monies held by the BORROWER shall accrue
to the benefit of the BORROWER and be applied to the eligible costs of the approved project.
Benefits shall accrue in one of two ways.
1. Reduce the amount of the Public Works Trust Fund loan, or
2. Pay any part of eligible project costs that are in excess of ATTACHMENT I. SCOPE
OF WORK estimates, if there is an overrun of project costs.
The BORROWER shall establish procedures to ensure that all monies received from the Public
Works Trust Fund loan can be readily identified and accounted for at any time during the life of
this loan agreement. Such procedures shall consist of the establishment of a separate fund,
account, sub -account or any other method meeting generally accepted accounting principles. In
event of termination, all principal, interest earned on invested loan principal, and accrued
interest payable shall be repaid in full within 30 days by the BORROWER.
4.05 Time of Performance
The BORROWER shall begin the activities identified within ATTACHMENT I: SCOPE OF
WORK no later than three (3) months after loan agreement execution. No later than Twenty-
four (24) months after loan agreement execution, the BORROWER must issue a Public Works
Trust Fund Notice to Proceed, which follows the fon-nal award of a construction contract. No
later than forty-eight (48) months after the date of agreement execution the BORROWER must
reach project completion.
Failure to meet Time of Performance shall constitute default of this agreement. In the event of
extenuating circumstances, the BORROWER may request, in writing, that the BOARD extend
the deadline for project completion. The BOARD may, by a two-thirds vote, extend the
deadline.
The term of this agreement shall be for the entire tenn of the loan, regardless of actual project
completion, unless terminated sooner as provided herein.
4.06 Repayment
Loan repayment installments are due on July 1St of each year during the 20 -year fixed term of
the loan. The first loan repayment is due July 1, 2009. Interest only will be charged for this
payment if a draw is made prior to this date. All subsequent payments shall consist of principal
and accrued interest due on July 1't ()leach year during the remaining term of the loan
Repayment of the loan under this agreement shall include an interest rate of 0 50% per annum
based on a 360 day year of twelve 30 day months Interest will begin to accrue from the date
each warrant is issued to the BORROWER. The final payment shall be on or before July 1,
2028, of an amount sufficient to bring the loan balance to zero
The BORROWER has the right to repay the unpaid balance of the loan in full at any time or
make accelerated payments without penalty
City of Yakima
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1/24/2008
The BORROWER will repay the loan in accordance with the preceding conditions through the
use of a check, money order, or equivalent means made payable to the Washington State
Department of Community, Trade and Economic Development, or its successor.
4.07 Default in Repayment
Loan repayments shall be made on the loan in accordance with Section 4.06 of this agreement.
A payment not received within thirty (30) days of the due date shall be declared delinquent.
Delinquent payments shall be assessed a monthly penalty beginning on the first (1st) day past
the due date The penalty will be assessed on the entire payment amount. The penalty will be
one percent (1 %) per month or twelve percent (12%) per annum. The same penalty terns shall
apply at project closeout if the repayment of loan funds in excess of eligible costs are not repaid
within 30 days as provided for in Section 4.03.
The BORROWER acknowledges and agrees to the BOARD'S right, upon delinquency in the
payment of any annual installment, to notify any other entity, creditors, or potential creditors of
the BORROWER of such delinquency.
The BORROWER shall be responsible for all legal fees incuflTed by the BOARD in any action
undertaken to enforce its rights under this section.
4.08 Loan Security
This loan is a revenue obligation of the BORROWER payable solely from the net revenue of
the Water system. Payments shall be made from the net revenue of the utility after the
payment of the principal and interest on any revenue bonds, notes, warrants or other
obligations of the utility having a lien on that net revenue. As used here, "net revenue"
means gross revenue minus expenses of maintenance and operations. The BOARD grants
the BORROWER the right to issue future bonds and notes that constitute a lien and charge on
net revenue superior to the lien and charge of this loan agreement. This option may be used
only if the entire project is a domestic water, sanitary sewer, storm sewer or solid waste
utility project.
Nothing in this section shall absolve the BORROWER of its obligation to make loan
repayments when due, and to adjust rates, fees, or surcharges, if necessary, to meet its
obligations under this agreement.
City of Yakima
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4.09 Recordkeeping and Access to Records
The BOARD, the BOARD's agents, and duly authorized officials of the State shall have full
access and the right to examine, copy, excerpt, or transcribe any pertinent documents, papers,
records, and books of the BORROWER and of persons, firms, or organizations with which the
BORROWER may contract, involving transactions related to this project and this agreement.
•
The BORROWER agrees to retain all records pertaining to this project and this agreement for a
period of six years from the date of project closeout. if any litigation, claim or audit is started
before the expiration of the six-year penod, the records shall be retained until all litigation,
claims, or audit findings involving the records have been resolved
4.10 Reports
The BORROWER, shall furnish the BOARD with quarterly progress reports, a Certified
Closeout Amendment and other periodic reports at such times and on such forms as the
BOARD may require, pertaining to the activities undertaken pursuant to this agreement.
Failure to file periodic reports as requested may result in termination of this agreement as per
Section 4.13.
4.11 Indemnification
The BORROWER will defend, protect, indemnify, save, and hold harmless the BOARD, and
the state of Washington from and against any and all claims, costs, damages, expenses, or
liability for any or all injuries to persons or tangible property, arising from the acts or omissions
of the BORROWER or any of its contractors or subcontractors, or any employees or agents in
the performance of this agreement, however caused. In the case of negligence of both the
BOARD and the BORROWER, any damages allowed shall be levied in proportion to the
percentage of negligence attributable to each party.
4.12 Amendments, Modifications, Assignments, and Waivers
BORROWER may request an amendment to this agreement, which does not increase the
amount of the loan, for the purpose of modifying the ATTACHMENT 1: SCOPE OF WORK
or for extending the time of performance as provided for in Section 4 05. Neither this
agreement nor any claims arising under this agreement may be transferred or assigned by the
BORROWER without prior written consent of the BOARD. No conditions or provisions of
this agreement may be waived unless approved by the BOARD in writing. No amendment or
modification shall take effect until approved in writing by both the BOARD and the
BORROWER and attached hereto
4.13 Termination for Cause
If the BORROWER fails to comply with the terms of this agreement, or fails to use the loan
proceeds only for those activities identified in ATTACHMENT 1: SCOPE OF WORK, the
BOARD may terminate the agreement in whole or in part at any time. The BOARD shall
notify the BORROWER in writing of its determination to terminate, the reason for such
termination, and the effective date of the termination. Nothing in this section shall affect the
BORROWER's obligation to repay the unpaid balance of the loan.
.City or Yakima
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4.14 Termination For Convenience
The BOARD may terminate this agreement in the event that federal or state funds are no
longer available to the BOARD, or are not appropriated for the purpose of meeting the
BOARD'S obligations under this agreement. Termination will be effective when the
BOARD sends written notice of termination to the BORROWER. Nothing in this section
shall affect BORROWER obligations to repay the unpaid balance of the loan.
4.15 Governing Law and Venue
This agreement shall be construed and enforced in accordance with, and the validity and
performance hereof' shall be governed by, the laws of the state of Washington. Venue of any
suit between the parties arising out of this agreement shall be the Superior Court of Thurston
County, Washington. The prevailing party is entitled to recover costs in accordance with
Washington State Law (Chapter 4.84 RCW).
4.16 Severability
If any provision under this agreement or its application to any person or circumstances is held
invalid by any court of rightful jurisdiction, this invalidity does not affect other provisions of
the agreement which can be given effect without the invalid provision.
4.17 Project Completion and Certified Closeout Amendment
The BORROWER shall initiate a Certified Closeout Amendment when activities identified in
ATTACI-IMENT I: SCOPE OF WORK are complete. The BOARD will supply the BORROWER
with the Certified Closeout Amendment documents upon request.
The BORROWER shall provide the following information to the BOARD:
1. A certified statement of the actual dollar amounts spent, from all fund sources, in completing
the project as described.
2. A certified statement that the project, as described in the Loan Agreement's Scope of Work,
is complete and has been designed/constructed to required standards.
3. Certification that all costs associated with the project have been incurred. Costs are incurred
when goods and services are received and/or contract work is performed.
4 Provide status of performance measures identified in ATTACHMENT I: SCOPE OF
WORK.
5 In accordance with Section 4 03 of this agreement, the BORROWER will submit, together
with the Certified Closeout Amendment, a request for a sum not to exceed the loan amount
or refund of any excess loan funds. Any final disbursement shall not occur prior to the
completion of all project activities
6 Repayment of excess loan funds disbursed to the BORROWER must be made within 30
days of completion of the Certified Closeout Amendment.
City of Yakima
Page 9 (/24/2003
4.1 8 Contractor Requirement
The BORROWER shall be responsible to ensure that their contractor(s) are in compliance with
the Department of Revenue and the Department of Labor & Industries requirements.
4.19 Audit
Audits of the BORROWER'S project activities may be conducted by the Municipal Division of
the State Auditor's Office in accordance with state law and any guidelines the Department of
Community, Trade and Economic Development, or its successor, may prescribe Payment for
the audit shall be made by the BORROWER.
4.20 Project Signs
If the BORROWER displays, during the period covered by this agreement, signs or markers
identifying those agencies participating financially in the approved project, the sign or marker
must identify the Washington State Public Works Trust Fund as a participant in the project.
4.21 Nondiscrimination Provision
During the performance of this contract, the BORROWER shall comply with all federal and
state nondiscrimination laws, including, but not limited to Chapter 49.60 RCW, Washington's
Law Against Discrimination, and 42 U S.C. 12101 et seq, the Americans with Disabilities Act
(ADA).
In the event of the BORROWER'S noncompliance or refusal to comply with any applicable
nondiscrimination law, regulation, or policy, this contract may be rescinded, canceled, or
terminated in whole or in part, and the BORROWER may be declared ineligible for further
contracts with the BOARD. The BORROWER shall, however, be given a reasonable time in
which to cure this noncompliance
4.22 Historical and Cultural Artifacts
Borrower agrees that Borrower is legally and financially responsible for compliance with all
laws, regulations, and agreements related to the preservation of historical or cultural artifacts
and agrees to hold harmless the State of Washington in relation to any claim related to such
historical or cultural artifacts discovered, disturbed, or damaged as a result of Borrower's
public works project funded under this agreement.
The BORROWER agrees that, unless Borrower is proceeding under an approved historical and
cultural artifacts monitoring plan or other memorandum of agreement, if historical or cultural
artifacts are discovered during construction, the BORROWER shall immediately stop
construction and notify the local historical preservation officer and the state's historical
preservation officer at the Washington State Department of Archaeology and Historic
Preservation (DAHP).
The BORROWER shall require this provision to be contained in all contracts for work or
services related to ATTACHMENT 1 SCOPE OF WORK.
City of Yakima
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In addition to the requirements set forth in this agreement Borrower agrees to comply with
Revised Code of Washington (RCW) 27.44 regarding Indian Graves and Records; RCW
27.53 regarding Archaeological Sites and Resources; RCW 68.60 regarding Abandoned and
Historic Cemeteries and Historic Graves; and, Washington Administrative Code (WAC) 25-
48 regarding Archaeological Excavation and Removal Permits.
In addition to the requirements set forth in this agreement Borrower shall, in accordance with
Executive Order 05-05, coordinate with DAHP, including any recommended consultation with
any affected tribe(s), during project design and prior to construction to determine the existence
of any tribal cultural resources affected by the proposed public works project. Borrower agrees
to avoid, minimize, or mitigate impacts to the cultural resource as a continuing pre -requisite to
receipt of funds under this agreement.
Borrower agrees to furnish to the Board copies of any monitoring plan or agreement arising
from Borrower's coordination and consultation with DAHP or an affected tribe.
Failure by Borrower to fully comply with the requirements set forth in this provision to the
satisfaction of the Board shall result in a suspension of loan disbursements or termination of
this agreement if not timely cured.
PART V: SPECIAL CONDITION
None
PART VI: SPECIAL ASSURANCES
The BORROWER assures compliance with all applicable state and local laws, requirements,
and ordinances as they pertain to the design, implementation, and administration of the
approved project. Of particular importance are the following:
5.01 Competitive Bidding Requirements
The BORROWER shall comply with the provisions of RCW 43.155 060 regarding competitive
bidding requirements for projects assisted in whole or in part with money from the Public
Works Trust Fund program.
5.02 Eligible Project Costs
The BORROWER assures compliance with WAC 399-30-030 which identifies eligible costs
for projects assisted with Public Works Trust Fund loans.
City of Yakima Page 1 1 1/24/2008
ATTACHMENT 1: SCOPE OF WORK
PUBLIC WORKS TRUST FUND
CONSTRUCTION LOAN PROGRAM
PC08-951-051
Yakima
New Water Well For City of Yakima Water System
Scope of Work:
Complete preliminary engineering, finalizing the hydrogeology and distribution system analyses
and preparation of drilling bid specifications.
Design of well including pump and building and preparation of bid documents
Apply for and obtain all necessary permits
Drilling well, installing casing and screens
Installation of pump
Construction of new pump house
Mechanical and electrical connections
Telemetry connections
Connection to water distribution system
Installation Disinfection equipment
Installation of Fluoride feed equipment
Installation of Backup Generator
Provide treatment for taste & odor and/or iron & manganese
Define Wellhead Protection area and modify Wellhead Protection Program
Decommission Ranney Well
SCOPE OF WORK
PC08-951-051
t Revised Performance Measures:
REVISED Performance
Measure (For
Construction and
Emergency applicants
only):
Describe how the success of the project will be measured Be sure to identify
how the change will be measured, the standard against which the change will
be noted, the amount of change that is expected, and when the change will have
occurred.
1. The new Yakima well will augment water levels during drought
conditions by 17.2%
2. Ranney water right change requires the decommissioning of the Ranney
Well.
3. Allow two or more emergency wells to remain in backup status for
emergencies during drought conditions
How is the Measure to be Measured: Such as reduce outflow by 20% or Reduce accidents by 5%
1. By adding 4.3 MGD to the year round supply
2. ' Documentation of decommissioning of the Ranney Well through Washington Department of Ecology
3. By using the new well as normal supply and insuring at least two of the three emergency wells are in
backup status during drought conditions.
When is the Measure going to be Measured: Such as measurement will be accomplished after project
completion or by the end of a particular year.
1. Upon Project Completion
2. Upon decommissioning project completion
3. After project completion and during the next drought
Date Planned to Complete Performance Measure
7/1/2011
J
SCOPE OF WORK
Estimated Project Costs:
PC08-951-051
'COSTACATEGORY==;,.
Engineering Report
Environmental Review
Historical Review
(Section 106 or 05-05)
Land/ROW Acquisition
Permits
Public Involvement/Information
Bid Documents
Construction
Other Fees
Contingency
Other: Wellhead Production
Other: Decommission old well
Other:
Other:
TOTAL ESTIMATED COSTS
,. •
REVISED BUDGET
•
$ 22,000.00
$ 5,000.00
$ 1,500.00
$ 0.00
$ 6,000.00
$ 1,500.00
$150,000.00
$1,970,000.00
$0.00
$431,200.00
$ 20,000.00
$ 50,000.00
$ 0.00
$0.00
$2, 657,200.00
SCOPE OF WORK
PC08-951-051
Anticipated Funding Sources:
Type of Funding Source 1 Revised Budget Amount
Grants
Grant #1 $0.00
Grant #2 $0.00
Grant #3 $0.00
Other Grants
(list sources) $0.00
Total Grants 0.00
Loans
This PWTF Loan Public Works Board $2,257,200.00
Request _
Other Loan #1 $0.00
Other Loan #2 $0.00
Other Loans
(list sources) $0.00
Total Loans $2,257,200.00
Local Revenue
Source #1 City of Yakima $400,000.00
Source #2
Source #3
$0.00
$0.00
Other Local
Revenue (list
sources)
Total Local
Revenue
Other Funds
Total Other
Funds
Sun,mary Totals
Total Funding
$0.00
$400,000.00
$0.00
$0.00
$ 2, 657, 200.00
1
SCOPE OF WORK
PC08-951-051
Page 5
Calculating Local Percentage:
Note: Grant funds cannot be counted as local match.
Calculate as follows:
Total Local Revenue
PWTF Loan + Total Local Revenue
The local contribution must be at least:
= Local Percentage 15.0%
Five percent (5%) for a loan interest rate of 2%
Ten percent (10%) for a loan interest rate of 1%
Fifteen percent (15%) for a loan interest rate of 0.5%
•
I,
ATTACHMENT II: ATTORNEY'S CERTIFICATION
Public Works Trust Fund
, hereby certify:
I am an attorney at law admitted to practice in the State of Washington and the duly appointed SR•AssisT C:)o
attorney of the City of Yakima (the BORROWER); and
I have also examined any and all documents and records which are pertinent to the loan
agreement, including the application requesting this financial assistance.
Based on the foregoing, it is my opinion that:
1. The BORROWER is a public body, properly constituted and operating under the laws of the
State of Washington, empowered to receive and expend federal, state and local funds, to
contract with the State of Washington, and to receive and expend the funds involved to
accomplish the objectives set forth in their application.
2. The BORROWER is empowered to accept the Public Works Trust Fund financial assistance
and to provide for repayment of the loan as set forth in the loan agreement.
3. There is currently no litigation in existence seeking to enjoin the commencement or
completion of the above-described public facilities project or to enjoin the BORROWER
from repaying the Public Works Trust Fund loan extended by the DEPARTMENT with
respect to such project. The BORROWER is not a party to litigation which will materially
affect its ability to repay such loan on the terns contained in the loan agreement.
4. Assumption of this obligation would not exceed statutory and administrative rule debt
limitations applicable to the BORROWER.
Z'6 •O
Si; i e •f Attorney Date
Name
Ad� dress L , �,, its
ZooS4dS71 ,14L7 989w
PLYING FOR: (Check Only One) �(
❑ Planning ❑ Pre -Construction Lr J Construction ❑ Emergency
Borrower
City of Yakima, Water/Irrigation Division
Municipal Corporation Agency (MCAG) Number.
Federal Tax ID #:
Street Address:
Mailing Address:
•te:
County:
0
8
5
7
9
1-
9
6
0
0
1
2
9
3
2301 Fruitvale Blvd.
2301 Fruitvale Blvd.
WA
Zip Code:
9
8
9
0
2-
1
2
2
5
Yakima
Congressional District:4th
Legislative District(s):
14th
Has the local government experienced severe fiscal distress resulting
from a natural disaster or emergency public works need in the past five
years?
❑ YES
ONO
If "Yes," describe the event, when it occurred, and the fiscal distress it caused.
•
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In order to qualify for financing through the Public Works Trust Fund, Board staff will verify that the
applicant meets the following conditions:
A. Real Estate Excise Tax Imposition:
For counties, cities, and towns, the applicant must be imposing the one-quarter of one -percent Real
Estate Excise Tax (REET) as allowed by RCW 82.46.010/2\ at the time of application.
B. Growth Management Act Conformance:
For counties, cities, and towns planning under the Growth Management Act (GMA), the applicant must
have adopted a Comprehensive Plan and Development Regulations by the Act's designated deadline
or by the Public Works Trust Fund application deadline, whichever is later The applicant must not
have any Findings of Non -Compliance or lnvalidity Orders pending. For questions regarding your
GMA status, contact the Growth Management Unit in the Department of Community, Trade, and
Economic Development at (360) 725-3000.
Growth Management Act — Exception:
Counties, cities, and towns planning under the Growth Management Act that are not in conformance with4
the Act may request an exception to this requirement when the pject is necessary to address a public
health need or a substantial environmental degradation issue. To qualify for the exception, the jurisdiction
must have a letter from the appropriate agency stating that the exception has been granted.
The Ietter must be postmarked on or before the application deadline. Attach the letter to the
application If you do not have a letter, contact the appropriate state agency and your Client Service
Representative betore submitting your application.
C. For Cities and Counties not planning under the Growth Management Act
Jurisdictions not planning under the Growth Management Act, must have adopted a Capital Facilities
Plan for all systems it owns on or before the application deadline that meet the following criteria
• The plans provide an inventory of mjor system components, show their locations and capabilities,
and assess the overall capital needs for the systems;
• The plans identify, prioritize, and coordinate major capital improvement prjects over a six-year
period;
• The plans estimate capital project costs and/Or identify financing alternatives for each project
identified;
• The plans have been updated in the last six (6) years;
• The planning process provides opportunity for early and continuous public participation;
• The plans are consistent with elements of the Comprehensive Plan formally adopted by the
governing body of the Iocal jurisdiction;
• The plans are consistent with the Comprehensive Plans of neighboring jurisdictions; and I
The plans must forecast future needs for capital facilities and show their location, and estimate the
capabilities of the expanded or new facilities.
"°- x ;�, tea.
FARMATION &Ontinuec
Special Purpose District Consistency with Local Comprehensive Land Use Plans:
li. Capital Improvement Plans of special purpose districts must show consistency with the
Comprehensive Land Use Plans of the local jurisdiction(s) in which they reside.
E.
Emergency Project Only
Jurisdiction must have declared an emergency and attached the resolution to the application.
F.
Sanitary Sewer projects only:
Does the project include repair and/or replacement of side -service
sewer connections on privately owned property?
If "Yes", the applicant must have in place a
mechanism to meet the charge back provisions of
RCW 35.67.360, and at the time of loan agreement
or loan amendment execution, must have in place
an ordinance or resolution declaring a finding of
enhanced conservation or efficient use, and taken
the necessary measures to implement that
mechanism."
❑ Yes
❑ No
.MEASURES'OFFISCAL-CAPACITY
venue Information
What is the current monthly rate charged to a single family residence for
the use of 1,000 cubic feet of water?
$21.10
What is the current monthly sanitary sewage utility rate charged to a
single-family residence? (this is based on use of 1,000 cubic feet of
water)
$36.78
What is your jurisdiction's maximum revenue -levy property tax per
$1,000 valuation?
$3.60 (less library levy of $0.58)
$3.12 for 2007
What is the current regular -levy (non-voter approved) property tax rate
per $1,000 assessed valuation (exclude port, hospital, fire, cemetery,
etc.)?
$3.12
Does the current rate reflect a tax increase equivalent to the 101
percent limit?
_
q: ;Yes_'
:No
No -1St year of
Library
Annexation to
Rural/County
District
For systems that do not charge by cubicfoot of water,convert your rate into a charge for cubic feet or
estimate the charge on that. basis. .Use the residential- rate' for all utilities.
Identify the rate for:
Type of Tax
Current Rate
Statutory Maximum
Local Option Sales*
1.00 %
1.00%
Real Estate Excise (local only)
0.50 %
1.00%
Electricity*
6.00 %
6.00%
Natural Gas*
6.00 %
6.00%
Telephone*
6.00 %
6.00%
Cable TV
6.00 %
- N/A
B&O
0 %
N/A
Water (cubic feet)
$0.0121 cf
NIA:
Sanitary Sewer (cubic feet)
$0.0234 cf
Storm Sewer (cubic feet)
None cf
Storm/Surface Sewer (cubic feet)
None cf
" :N/A
Solid Waste/Recycling
$0.286 cf
:N
*excluding state and municipal transit system taxes
_a_
Primary system affected by
this project. (Check only
one)
El Bridge , 0 Road
RI Domestic Water
0 Storm Sewer 0 Sanitary Sewer 0 Solid Waste/Recycling
- -
Population within jurisdiction: I 82,000 ! Percent affected by this project:
Contact Person:
Street Address:
Mailing Address:
Telephone:
email Address:
David Brown
2301 Fruitvale Blvd.; Yakima, WA 98908-1225
2301 Fruitvale Blvd. .; Yakima, WA 98908-1225
(509) 575-6204
FAX:
(509) 575-6187
dbrown@ci.yakima.wa.us
NOTE: The following questions are used to report to the Governor and the Legislature, but are not rated.
Please respond only to the questions for the system you are applying for.
-- y,
V.4"::44f$44.44-W941447Rat-zitiSsA4flOtginfait,W4tW,).--.:44';414.4Y.A'V,41St,,,,i4.444,-,57*:WWUrAPV,-74h.,PTP.*to47../AM,,S.ticrMi
MGD of treated wastewater
.„.
Curra-rit ,i6j6Cfed•OpOn: Prbjebt-
L; 'b�rnpIetion
Number of onsite septic systems eliminated # Existing onsite
systems
Is the system currently under any regulatory orders or court Yes
orders?
If so, please explain
Number of CSO events in the last 12 months
Amount of MGD per event
# Onsite systems to be
eliminated
No
- s -
5 Amount of I/1 the system is experiencing (MGD) Current
Projected upon project
cornpletion
6 Are you currently meeting your NPDES limits?
If not, what limits are your exceeding (please identify)
Yes No
7
8
Is there currently a moratorium on hookups?
Is so, will this project enable you to lift the moratorium?
Does the system currently impact shellfish?
Will this project reduce or eliminate beach closures?
Yes No
Yes
Yes
No
Yes No
If so, please explain
Number of feet of pipe replaced or added by project
10 Is project in response to an emerging regulatory mandate?
If so, please explain
Yes | No
How many MGD of treatewater
does the system generate?
2 What is your operating status?
(please check one)
Designed Capacity
Current
36.6
26.0
Projected upon project
completion
40.9
Yellow Green
Blue [ Red
3 / Is the system currently under any regulatory orders or court
orders?
X
Yes
No
If so, please explain. The water right change approved by the Department of Ecology in September of 2006
requires the decommissioning of the Ranney Well
4 | |othere currently amoratorium onhookups? - ----- Ye ------- No
«
5
Is so, will this project enable you to lift the moratorium? Ys1 No
Has the system experienced a boil water order in the last 12
months?
6 Are you doing this project to comply with the Safe Drinking
Water Act?
If so, please explain.
To maintain an adequate supply of drinking water
7
Is the system experiencing unaccounted for water loss?
If so, how much?
No
X
Yes
Yes
No
No
X
Before Project
16.7% 2.1 MGD
After project
16.7% 2.1 MGD
8 Is project in response to an emerging regulatory mandate? it' Yes
No
TORNMEW RtztfearAWK3'.F.4,.. 441;tga'sV.'141V,Vigl CPPVV:fe'
MGD of treated water
:PrOjectpd after pi-ojeCt
completion
2 Is the system currently under any regulatory orders or court Yes
orders?
No
If so, please explain:
3— Amount of I/I the system is experiencing (MGD) Current _
,Projected.after project
_
completion
Are you currently meeting your NPDES permit? ' Yes
[ No
If not, what limits are your exceeding (please identify)
5 Does the system curreritly contribute to environmental
degradation?
If so, please explain
Yes
No
6 Number of feet of pipe replaced or added by project
7 1 Is the system impacting the transportation system?
! If so, please explain
8 Is project in response to an emerging regulatory mandate?
If so, please explain.
Yes
Yes
No
No
2
4
What is the cut and future LOS of the road/bridge being 1 Current
applied for?
How many lane miles of pavement or resurfacing will the
project complete?
How many accidents have beeri reported on this road/bridge
bein applied for in the past five years?
Projected after project
completion
Are there currently any weight Iimits or road restrictions? | Yes | No
Will this project lift those restrictions? Yes No
5 Is projecin response to an emerging regulatory mandate? Yes No
If so, please explain:
^
1
^
Is the system currently under any reguatory orders
or court orders?
-
Does �houyutemcurrently contribute to
environmental degradation?
Yes
N�:
yes
. . ,
No
3 Is projecin response to an emerging regulatory
mandate?
If so, please explain:
Yea_
'
- ' �No
Project Title: New Domestic Water Well for City of Yakima Water System
Project Description: In 150 words or |eaa, please describe the project to be completed. (This is
earyinformation used inpublications)
_____________________________
The prjeotpurpoaeiotodeaignanddave|opa3.U0OgaUonparminutadomosticvva1ervveUatoneof
three authorized locations. The scope includes drilling the well, placement of casing, construction a new
pump house, activation and connection to the existing water distribution system. The well is necessary to
augment to current domestic water supply during periods of drought affecting the City's primary surface
water source of supply.
Work: Describe in detail what will be done as part of this project. (Number of feet and size of:pipe
o be laid, etc.) (For Pre -Construction applications, please limit to pre -construction activities.)
• Complete preliminary engineering, finalizing the hydrogeology and distribution system analyses and
preparation of drilling bid specifications.
• Design of well including pump and building and preparation of bid documents •
• Apply for and obtain all necessary permits
• Drilling well, installing casing and screens
• Installation of pump
• Construction of new pump house
• Mechanical and electrical connections
• Telemetry connections
• Connection to water distribution system
• Installation Disinfection equipment
• Installation of Fluoride feed equipment
• Installation of Backup Generator
• Provide treatment for taste & odor and/or iron & manganese
• Define Wellhead Protection area and modify Wellhead Protection Program
• Decommission Ranney Well
Section_:3:
Proposed Performance Measure (For Pre -Construction, Construction and Emergency applicants
only):
Describe how the success of the project will be measured. Be sure to identify how the change will be
measured, the standard against which the change will be noted, the amount of change that is expected,
and when the change will have occurred.
Project success will be measured by compliance with the water right change by decommissioning of
Ranney Well and replacement of the Ranney source with completion of a well producing 4.3 MGD of
' domestic water by 2/2010 that meets or exceeds all current drinking water standards. The completion of
this new well will make it possible for one or more of the existing emergency wells to remain available and
ready for emergency use. Under drought conditions which have occurred in two out of the past five years
(2001 and 2005) it has been necessary to operate all three of the emergency wells nearly continuously
during the summer months so that none of these supplies would be available for the kind of emergencies
for which they are intended.
_in_
•
Attach Project Map (required)
•
•
•
Total Project Cost:
PWTF Loan Request:
$2.857.200.00
$2.257.200.00
Does the financing or development of the pject involve any
other jurisdiction? If yes, please identify:
/
Applicant certifies that the improvement has a minimum life
expectancy of 20 years.
[Zi Yes EI No
If the pject you are applying
for has a previous PWTF loan,
please identify:
Project Title
•
•
�d��— E�T|N �
�-,, ' �=�-_- `'� �� "'=^ ..-��"�===�--
11111rOjeCt S01100 410'' ,
'
Indicate the month and year when the activities were or will be completed.
For Pre -Construction Applications, please limit schedule to Pre -Construction Activities.
For Planning Applications, list activities in "Other" categories below.
' ^/
'~�» '
� ^, * ` '
'r^^~°~ ~~`.-
| '
. ~~'''~�-�,��,._
Engineering Report
Complete (WSP Update)
3/2004
Environmental Review
Complete
4/2005
Cultural and Historical Resources Review
(Executive Order 05-05)
Submitted with
Application
6/2008
Land/ROW Acquisition
N/A
N/A
Permits Obtained
In Progress
10/2008
Public Involvement/Information
Complete (WSP Update)
3/2004
Preparation of Bid Documents
Not Started
10/2008
mrd Construction Contract
,Not
��
Started
12/2008
Start Construction
Not Started
3/2009
Complete Construction
Not Started
12/2009
Project in Use
'`«Not
Started
2/2010
Other: Water Right Transfer
Complete
9/2000
Other: SEPA
Complete DNS Issued
5/2005
Other:
__/___
Other:
__/___
•
Section 3: PROJECT; INFORMATION -. continued
Project Costs
For Pre -Construction Applications, please limit cost estimates to pre -construction
activities. For Planning Applications, list costs in "Other" categories below.
Engineering Report
$ 22,000
Environmental Review
$ 5,000
Cultural and Historical Resources
Review (Executive Order 05-05)
$ 1,500
Land/ROW Acquisition
$ 0
Permits
$ 6,000
Public Involvement/Information
$ 1,500
Bid Documents
$ 150,000
Construction
$ 1,970,000
Other Fees
$
Contingency ( 20 %)
$ 431,200
Other• Wellhead Protection
$ 20,000
Other: Decommission old well
$ 50,000
Other
$
Other:
$
TOTAL ESTIMATED COSTS
- 1 d -
$ 2,657,200
•
•
a.7w«e
recti
:or
Project F nano g
O.RMATI:Q
- continue
e of. Funding
Grants.
Grant#1
Grant #2
Grant #3
Total Grants
''
,� '�Amount:,
d ,�i"y,. -, ''.•
3}?:. ..,�,��i '.` Y: Tu.„ ��. �.. 9'a --d
oans.,=��"��y��,t:,=s���Id_ entif:Y�Source"�t.<a_`
'•s:-if"3jy`ip''x.':e% " , u� zk:`!: ��'` s 'a. ix#, 4s ":� - .--
This PWTF Request PWB ; $2,257,200
Other Loan #1
Other Loan #2
Total Loans E
l k
ocal`Revenu"e;`'='z
'Identif ;Source' :Amount`:
ource #1
City of Yakima $400,000
Source #2
Source #3
Total Local Revenue
$2,657,200
Other Funds
Total Funding
$2,657,200II
r,,a
nterest,Ra�
Minimum of 5%
Local Match linked to Interest rate
15% Local Match='h% Interest Rate
10% Local Match = 1% Interest Rate
5% Local Match = 2% Interest Rate
Minimum of 5%
Local Match linked to Interest rate
15% Local Match = 1/2% Interest Rate
10% Local Match = 1% Interest Rate
5% Local Match = 2% Interest Rate
No Match Required 3% Interest Rate
No Match Required 0% Interest Rate
_1F_
amen
20 years or life of the
improvement, whichever is less
5 years (extended up to 20 years if
construction funding is secured by
the second loan repayment date)
20 years or life of the improvement
whichever is less
6 Years
Section 3: PROJECT INFORMATION - continued
Loan.Security
Please indicate which option will be used for securing repayment of your loan. If project is approved
by the Board, the selected option will be inserted into the loan agreement.
1. General Obligation: The loan will be secured by general obligation of the Borrower
2. X Revenue Obligation: The loan will be secured by utility revenue payable solely from
the utility system indicated below. Payments shall be made from the net revenue of the utility after
the payment of the principal and interest on any revenue bonds, notes, warrants or other
obligations of the utility having a lien on that net revenue. As used here, "net revenue" means
gross revenue minus expenses of maintenance and operations The Board grants the Borrower
the right to issue future bonds and notes that constitute a lien and charge on net revenue superior
to the lien and charge of this loan agreement.
If Choosing Revenue Obligation, please choose one of the following utility systems:
X Water
Sanitary Sewer (Wastewater)
Stormwater
Water/Sanitary Sewer
Stormwater/Sanitary Sewer
Solid Waste
NOTE: This option may be used only if the entire project is a domestic water, sanitary sewer,
storm sewer or solid waste utility project. Borrower performing a storm sewer project that has not
created a storm sewer utility or a combined sanitary sewer/storm sewer utility may not use this
option. Projects providing for a mixture of bridge, road, domestic water, sanitary sewer, and storm
sewer activities may not use this option.
3. Local Improvement District: Pursuant to RCW 35.51.050, the Borrower pledges to
repay this loan from assessments collected from a Local Improvement District, Local Utility District
or other similar special assessment district in which the improvements financed by this loan are
located. The name of the special assessment district is
•
Section 4 is where you will describe the public works problem you are proposing to solve or
the benefit you wish to achieve through this project. Be thorough and complete in your
responses. Include any additional backup data if necessary to clarify the degree of the
problem. This is your opportunity to tell us what is happening, and how it is impacting your
community.
The table below shows the Board's priorities used in selecting projects.
PRIORITIES
ealtha&Safe
PROBLEM STATUS DOCUMENTATION
nvr��ronmenta
Lt+Z' .XTe �.x 41; }:a. '+.
SOLUTION
Solution clear
meesneed
ibn
SaIutdoesino
.el ' m
•
•
5. Aware of Problem
- 17 -
cojecf°atego
rn
po nts maximum for eonstruction:,an
hof theisystem(s)idirectly affecte-
❑ Principle Arterial
❑ Minor Arterial
❑ Major Collector
❑ Minor Collector
❑ Local/Other
om esticNVater`'°`'"a'R=
. - ..
Q Supply/Source-Primary
Q Supply/Source-Secondary
onstruction
oposedgproje
SprI tar
❑ Treatment
❑ Interceptor/Trunk Line
❑ Pump/Lift Station
❑ Collector
❑ Telemetry/Equipment
❑ Conservation/Other
Q Treatment
▪ Storage
Q Transmission
E Distribution
Q Telemetry/Equipment
❑ Conservation/Other
❑ Storage/Detention
❑ Treatment
So l tlWaste/R ecyc l i n g s;
❑ Waste Reduction/Recycling
El Remedial Action
El Final Disposal
El Transfer Station
❑ Other
❑ Interceptor/Trunk Line
❑ Collector
El Other
Do you have a separate storm
sewer utility?
El Yes
❑ No
ieW
•
B: How old is the system you are applying for: 100 years
Please describe the age/condition/and material used for the component of the system you are applying
for: (example: 40 year old AC pipes that are deteriorating)
This is a new well, not a replacement
-1R-
Section 4: tPROJECT NEED/SC/WTI N -'1continued
•
•
(Attach additional pages fry.)
,
I. COriatructiOn,and preCOn$titiCtion"' tiliCantS, :--,,'; , .., - ,,:.
(34.:,Pciiiri*IVIaiiriVill: for P9nW4plipn,arkO.Pre4.CcinpUtUOipri)
Describe in detail 'Why thkilboal-bOV'erriMenstintendstd-cornplgte thisTprojabt..: Describe the
„
''seriousness of The prOble44:you.are proposing tOr'$OlvaahathOariafit„yOu'WisKito,a-Ohievg...:
with this project Describe in sPelcifieterniS the threat, to,publio'naalth and Safaty;'and/.pr ,
SeOuritys,the anvirorimarit,the,parldernar),op of tnO,SySterryorina 10Oal economy that the project
will avert, orde,sqn00,11-ie.aPbortiinity'that the Ilboal goVernnientril(bapfUrk'byt4ingthe::!
Arfop90:,aption,atjnis.tinle24A)SejhiS.,s'sebti9n tO,d'eSbribe-thp,prOjeOtl\fT
2-.,s.:Ossm4genci (No The Public Works 13pard defines 'ert'Orriergericy=e-S.:
: . . , .. •
"A public works project made necessary by -a natural disaster, or an
:
- immedie;e:004ernergerit thrOattope;OubliC!,,beeitb and safety due to
unforeseen Or unavoidable circumstances"
Describe:
„.,
• the natttr&Of tha,eniergancy in terms of a natural disaster or other :tinfbreSeen and
unavoidable circumstances beyond the control of the iddai gOvernMent.
_Eli ' The =nature and extent of the threat to the public health and safetyincluding..,.
•', ' the number of 0e001.6 'affected,'-'-''''
, . ,..
, .
# --;areaaffebted, atb.
i: Whether the situation is pieseritlitausin'g substantial harm, or whether and how it,pbSes.:an
-. 'eMerdeht threat to life..and:propartYsdr bOth,
#, ,Why this problem needs to be-atldr90,1petbre the next regular application 'cycle for Public
Works Trust Ririld Construction loan:100s.
3. Planning Applicants (No Points):
Describe the conditions the community wants to create, enhance, or change. Describe the
community's situation, the opportunities or problems it faces.
- 1Q-
.Project =Need and 0luti0n4=4Maximum''ofs34spomts
The City of Yakima water system currently serves a population of approximately 65,000. The
current normal source of domestic water supply for the City is the Naches River Water
Treatment Plant (WTP) with a nominal capacity of 25 million gallons per day (MGD). This
supply is adequate to meet the current (2006) projected maximum day demand (MDD) of 24.5
MGD (reference March 2004 City of Yakima Water System Plan Update). The three active
wells (Kiwanis, Airport, and Kissel Park) have been designated in the adopted Water System
Plan as emergency use supplies. Historically, examples of emergencies under which these
wells would be placed into service might include a mechanical or electrical failure at the water
treatment plant, icing conditions during severe winter weather, and high turbidity events in the
Naches River. The emergency wells would also provide a contingency water supply in the
event of a natural disaster such as the 1980 eruption of Mt. St Helens or contamination of the
WTP source water with chemical or biological toxins resulting from accidental releases or
malicious acts. These types of emergencies for which the Kiwanis, Airport, and Kissel Park
wells are intended would generally last for only a few days or, under rare conditions, for a few
weeks at the most.
However, during two of the last five years (2001 and 2005), the Yakima Valley has experienced
severe drought conditions. As noted above, the physical capacity of the WTP is 25 MGD which
also corresponds to the water rights available for the plant in a normal water year. However, all
but 10 CFS (6.5 MGD) of the WTP water rights are subject to proration or interruption during
low water years. The other two natural flow water rights of 3 CFS (1.9 MGD) and 29 CFS
(18.74 MGD) are post 1905 rights and in the past have been subject to interruption whenever
the Bureau of Reclamation declares a water short year. At that point, the 29 CFS contract
water right can be used, but it is also subject to proration. On January 20, 2005, the Court
issued a Revised Order Limiting Post -1905 Diversions During Periods of Water Shortage. This
order stipulates that whenever the Bureau projects less than 100% availability of water for the
year, all post -1905 water rights are to be immediately curtailed.
As a result of the prorations and interruptions imposed in 2001 and again in 2005, the output of
the water treatment plant was reduced to 11.9 MGD In 2001 and to 12.5 MGD in 2005. In order
to meet the water system demands during the summer months during these water short years,
it was necessary to run all three of the emergency wells almost continuously. Including the
emergency wells, the total supply capacity during 2001 was 23.5 MGD and in 2005 it was 23.6
MGD. While drought conditions could be considered an "emergency", these emergency wells
were never intended, nor were they designed for continuous duty as was necessary during
these extended drought periods. They are not equipped with stand-by generators and are not
set up to add fluoride as is required by a 2001 voter referendum. The current maximum day
demand (MDD) together with the current sources of supply and the proposed new well are
shown graphically in Figure 1.
As Figure 1 illustrates, the total supply capacity with all three emergency wells in operation was
about 1.0 MGD less than the projected 2006 MDD. Such a relatively small shortfall in supply
capacity could most likely be handled by managing the available reservoir storage capacity.
However, if one or more of the emergency wells failed, if there was additional proration or
interruption of the surface water rights, or if there was a mechanical problem at the WTP, there
_ 9n _
would likely be significant water shortages which could not be handled by reservoir storage
management.
`The addition of the proposed well will not eliminate the possibility of shortages during drought
years, but it will be a significant step towards improving the reliability of the water supply for the
City of Yakima. It would also allow at least one of the existing wells to be maintained in a true
emergency use status even during severe drought conditions as were experienced in 2001 and
2005.
30.0
25.0
20 0
C7 15.0
2
10.0
5.0
0.0
�� eo�o �
°°ae\ o
�fiafifi° fide
�a��e
y co� °s 6
�x �
` i._\* ,:_se
t,_01.
°`oe`o'
ee�\y
r1 Q o z`.
�� x4'
Figure 1 Current water supply sources and proposed new well in relation to
current (2006) Maximum Day Demand (MDD). All quantities are in MGD except as
noted.
The alternatives for developing new supply sources for the City of Yakima water system are
limited by water rights considerations. As mentioned above and as explained further in the
2004 Water System Plan Update, the City of Yakima holds a number of water rights that supply
the City's domestic and municipal irrigation distribution systems. All of the City's surface water
rights are currently under the jurisdiction of the Yakima County Superior Court as part of the
surface water rights adjudication, Ecology v. Acquavella, et al. On November 21, 2002, the
Court issued a Conditional Final Order that approves a proposed settlement of the City's
Naches River water rights diverted at the Naches River Water Treatment Plant and at Nelson
Bridge. As previously noted, each of these surface water rights is subject to proration or
interruption with the post -1905 rights being the most vulnerable.
Ideally, any new source of normal water supply would not be subject to proration during low
water years and would be available year around as a large portion City's current surface water
- 91 -
25.0
24.5
4.3
4.2
4.0
4.2
°4 3?
4 0
3.4
Xi -IV,
dao
119
—
11 9
!11.9
`'.;
01.9
t;
4 0
4.2
4.3:
3.4
�� eo�o �
°°ae\ o
�fiafifi° fide
�a��e
y co� °s 6
�x �
` i._\* ,:_se
t,_01.
°`oe`o'
ee�\y
r1 Q o z`.
�� x4'
Figure 1 Current water supply sources and proposed new well in relation to
current (2006) Maximum Day Demand (MDD). All quantities are in MGD except as
noted.
The alternatives for developing new supply sources for the City of Yakima water system are
limited by water rights considerations. As mentioned above and as explained further in the
2004 Water System Plan Update, the City of Yakima holds a number of water rights that supply
the City's domestic and municipal irrigation distribution systems. All of the City's surface water
rights are currently under the jurisdiction of the Yakima County Superior Court as part of the
surface water rights adjudication, Ecology v. Acquavella, et al. On November 21, 2002, the
Court issued a Conditional Final Order that approves a proposed settlement of the City's
Naches River water rights diverted at the Naches River Water Treatment Plant and at Nelson
Bridge. As previously noted, each of these surface water rights is subject to proration or
interruption with the post -1905 rights being the most vulnerable.
Ideally, any new source of normal water supply would not be subject to proration during low
water years and would be available year around as a large portion City's current surface water
- 91 -
rights are subject to seasonal time of use limitations. The one existing groundwater right, which
is currently not fully utilized, is the Ranney Well right. The original Ranney Well water right was
for 5000 gpm and can be used year around. Of this 5000 gpm, 2000 gpm will be transferred to.
the Kissel Park Well. This leaves 3000gpm, which could be transferred to a new well. Under
current regulations, the Ranney Well would likely be considered groundwater under the
influence of surface water and therefore not suitable for domestic use without additional
treatment. A new 3,000 gpm deep well would enable the City to beneficially use this existing
water right, thereby providing the additional year round source which is needed and assuring
that this right is not lost in the future for failure to put it to use as required by state water law.
The Ranney Water Right Transfer Application and Report (Golder & Associates, 2005)
identified three potential sites for the proposed new well. The sites considered were Elk's Park,
Gardner Park, and the Southeast Yakima site, two of which are currently owned by the City.
The Southeast site would need to be acquired. Of the three, Gardner Park is recommended as
the preferred location. The preference for the Gardner Park site is based on hydrogeological
engineering considerations as well as its location in the distribution system. Since it is located
in the southeastern section of the service area it could satisfy demand in this area which might
otherwise require additional reservoir storage and/or additional distribution and transmission
mains. The new well would include a standby generator and a fluoride feed system to insure
that it would be available for uninterrupted year around operation. Engineering work related to
the water right transfer and preliminary engineering for the new well are on-going with
completion schedule for July 2006. All three of the sites evaluated for the new well together
with the Kissel Park and Ranney Well site are shown on the attached Project Map.
111
The immediate need for the proposed new well is to improved the reliability of the City's water
supply for meeting current demands during water short years such as 2001 and 2005. The
construction of this new well, by itself, will not avoid the need to develop additional sources of
supply to meet future demands as described in the 2004 Water System Plan Update and as
summarized below in Figure 2.
Aquifer Storage and Recovery (ASR) has been identified as a feasible means to provide
additional groundwater supply capacity in the future to further increase the reliability of the
existing water supply during drought conditions or other emergencies and to meet future
demand (Aquifer Storage and Recovery Pilot Test and Feasibility Study, Golder & Associates,
2002). The City's on-going Conservation Program is also expected to be an important factor in
enabling future water system demands to be met within the service area (reference March 2004
Water System Plan Update).
- 99 -
35
30
25
0 20
2
c
10
5
0
2000 2005 2008 2010
2015
2020 2022
2025
Figure 2 City of Yakima Water System projected Maximum Day Demands (MDDs) through
2025 (source: March 2004 Water System Plan Update).
•
2022 Total MDD = 30.66 MGD
-12008 Total MDD =25.04
MGD
&j •l S+
2i;
':w :is
2000 2005 2008 2010
2015
2020 2022
2025
Figure 2 City of Yakima Water System projected Maximum Day Demands (MDDs) through
2025 (source: March 2004 Water System Plan Update).
•
Section 5::Local Mane erke:ncl,Total Points 60).
General Instructions:
Local Management Performance:
•
It is the policy of the Public Works Board to promote properly maintained, administered and managed
infrastructure systems. Please Note. If you are applying for a storm water project but do not have a storm sewer
system, you may refer to the road/street system when answering these questions. Or if you have a combined
storm/sewer system, you may reference sewer system when answering these questions.
There are two sections within the Local Management Performance section:
A. Ready -to -proceed status
1 For Construction Applicants (maximum of 6 points)
2 For Pre -Construction Applicants (maximum of 6 points)
3 Not required for Planning and Emergency Applicants
B Local Management Effort
1 System Maintenance and Operations (maximum of 18 points)
2 Administrative, Financial, and Planning (maximum of 18 points)
3 System Capital Improvements (maximum of 18 points)
a. Each component has two questions, one dealing with past Improvements/Activities and one dealing with
future Improvements/Activities
b A restorative option allows the jurisdiction to explain why it did not have four past Improvements/Activities
or is not planning to make three improvements/Activities in the future.
Examples of when to use the restorative option:
a. If the system was formed in the last year, it may not have past improvements. If the situation is
adequately explained, the newly formed system may receive all of the points.
b A jurisdiction may not need to make capital improvements to the system in the next five years other than
the proposed project •
c
Construction and Pre -Construction Applicants:
This section is worth a total of 60 points.
Restorative Points may be awarded for the answer if the reason is legitimate and adequately explained
Emergency Applicants:
This section is not scored, but is required.
Important Notes:
* All questions are important and must be answered
* All answers must stand-alone
* Fill out all questions completely
* Do not submit plans or similar documents, but clearly reference them
1 Do not separate one Improvement/activity into multiple components For example, if four streets are repaved under
one contract, then the repavement project is considered one improvement, not four. However, if a system is being
upgraded through a number of phases and each phase will be contracted for independently, then each phase is a
separate improvement. If you have questions about making this determination, contact your Client Service
Representative
2 Do not use the same Improvement/activity more than once. A pipe replacement is either a maintenance project or a
capital improvement project. It cannot be considered both
3 Jurisdictions applying for storm sewer system improvements which do not have a storm sewer utility or which have
created a utility in the last year may use road system improvements to respond to the Local Management
Performance questions, or if you have a combined storm/sewer system, you may reference sewer system when
answering these questions
4 Use a specific START DATE for all Improvements/Activities (month/year) for both past and future
5 Cite four and only four Improvements/Activities in the past activity area, and three for future The first four/thre
Improvements/Activities listed in the application will be used to determine the score for the question.
6 Include planning activities in the Administrative & Financial/Planning Section.
7 If a system is taking over another system, use the "history of the system that is acquiring the system" to respond to
the appropriate questions
_9d_
SOctiori'5;'LoCat-Mai-i4gpolieOf`—:cpt4foRpcf,
-A. -,Fieat1inei-r6=Proceecl (Maxirnqm qffi points)
•
-,, 1. For Coilptryctign Applicppons„ only
Readiness,To:Proceed.c6odinth,maxi.'rr:.i:t4rTly
Tim01i110`far All 1-00.pprIpe*6„t!vAt:Tirne'Of'Appli6ati6ri7..:
Applicant certifies that all applicable permits are in hand (6 points)
---
Applicant certifies that engineering/design is complete (5 points)
Applicant certifies that Cultural and Historic and or Environmental Review
is complete (3 points)
Applicant certifies that engineering/design is started (2 points)
Applicant certifies that project is in a current and adopted Capital Facilities
Plan (which meets the Boards criteria on page 8 (C.)) (1 point)
Project is in concept stage (0 points)
2: ,,FOi•.Pepit,C9iittitictipti:-ApplicOgn$, Only,
Readiness-Tordce-ed-(6-1Doint&rilaxitilurr)1„,
Applicant certifies that project will get permits approved (6 points)
(These activities must be in the Scope of Work)
Applicant certifies that project will complete engineering and design
(4 points)
Applicant certifies that project will complete cultural and historic review
(3 points)
Applicant certifies that project will start engineering and design (2 points)
Applicant certifies that project is in a current and adopted Plan (which
meets the Boards criteria on page 8 (0.)) (1 point)
Project is in concept stage (0 points)
(Applicant certifies by signing the Applicant Certification form on page 30)
•
Section`5 Local Managerpent'= contiriyc
g ..,.:.,,en (, ,.x.... ,, um:';of X54 poi nts)
. B. Local Mana ement ;Effort Maxim "�
stem. am eranceY& Operations ==Maximum>o
onsesmustberfor-thesystemwhic`
dints
applyin
De'scribe°fou , (t4) distinct improvement§.- ade -toahe
oron-going?actiuities:undertaken'by the;systeiam in the
maintain'or,imp'roue the,sytem s$•r�eli'ability or-perfq"rm
month nci ea`rtlaf, z ..,°: .:,...,,.:,,,. _ ..3
a y. the examples:..1 b an or. occurreEd
r�Pastlmprov ernent/activity
rorty=Janua j1; 20024ol.a c plicationosubmi.
1 Distribution System Leak Detection
2. Install Chlorine Residual Analyzer at Second Level Pump Station
3. Replace Filter Effluent Turbidity Meters
4. Replace Telemetry Radios and Antennas
Restorative: If you are unable to give four examples, please explain why:
7/2002
1/2005
2/2005
3/2006
1. Distribution System Valve Testing and Exercising Program
6/2007
2. Fire Hydrant Testing
6/2007
3. Large Water Meter Calibration and Testing
8/2007
Restorative: If you are unable to give three examples, please explain why:
•
_9R_
Li
eage me n ,
.nti nue,
,,, O.14!
)(!rflUtTlipt, ffii1E§,
IXMV''';',V•dietN.V.4.iraalitaA4'..'Wk4griF ,e, bgAIV,:egtzt.,•-.I'
' litesponsesmupttie6for3thd.systemiw,, ' ou-Af.e.a001;:ifi Ori 0a,nbial-;:a'§!:t
' .
..,71" ",i.k.'W''...1.: 4;4... '•• . :,'•,,
••,-4::<•'4 S:01,:tik,.. • "i ' !
isXnetim.,,,r,OSippb
eRtkorAhia,-0,19 eti.,:(100,S.g.,14-r.?-rij-9, ,,P,PP:9§0P----,0110,0,i12:j.7„
Wrs.'igi'eifrillii,t elStako,rdiffire.e:clk:85.Prit:.c.th-,:ettr#6il ',..,,4tjf34.o.:40-.:41:;:00,-(00:411,0-*siofil$,:tihar41440e ,,,
---4,Stri'4,-L,*;,-,-1•,,,,ki:W.1 'i.Viil.w.-,,4..1,..1,-) , 4: .4-4-,., 4v. --.2,4-Ni • • '-•- - '' - ... 4.. 4-- , 4.4.- .-.. ,:.4';..,..- ..q) , ,:
iniSltatiVeJan .Or: anriih'g'idtatUsWBesurAo-,;indiCate,,.; ARTInonth,an - earthat,t'
,57a,-alzi.-r .1,,,,,„,„rd.,„,.,,w4.-rms.,Ariai-4,41,4%:,,.
ekam a I e_Sii e cutre 'iorowillitb,e0inioroccr,,, ,,:t•,,,,.„.A.„.-,,,--....,- - ,,,
rnent/Activity
,
,ronrjanua12OD2t»asTlidthiMe'u mi
1. Update to the Water System Plan as required by RCW 43.20.050,
RCW 90.54.180
3/2004
2. Cost of Service and Rate Study 7/2004
3. Ranney Water Right Transfer to New Well for this Application 9/2006
4. Report and needs analysis for new utility billing system 10/2006
Restorative: If you are unable to give four examples, please explain why:
lic,,,dtro'h7T1AslirnititialhblEY4cember.,-3i.
1. Update the Water System Emergency Response Plan
7/2007
2. Cost of Service and Rate Study
10/2008
3. Update to the Water System Plan as required by RCW 43.20.050,
RCW 90.54.180
3/2010
Restorative: If you are unable to give three examples, please explain why:
•
- 97 -
Section 5 ;Loca
ana,gement.—ontinues
System;Capital Improvement�-aximokii,v 18 -,points.
=(All responses:imust` be3for :the systen%wtich you are,a
escribe four
at:maintain
e exam ill es
is Inc ,ca
de ar ex an e, systerhi
eoan er ceeurred or wi
rriJantii
ee imer/we,
rovemgnt/ ttivi
a a a plpatiort submit
recto in
1. Design and construct fish barrier (screens) at the Water Treatment
Plant river intake
2. Construction of improvements to the Water Treatment Plant
Chemical Feed Systems, including Chemical Containment
3. Design and construct improvements to the Water Treatment Plant
filter pipe gallery
4. Phase 1 of Pipe Replacement for 2nd Level Reservoir System
Restorative: If you are unable to give four examples, please explain why:
.Fu (mprovemeent/ t vi11..464
tt'
hcation,.submittaI4tti ecernber
1. Design and construct New groundwater well
10/2002
11/2004
2/2005
2/2007
2. Design and construct improvements to the Water Treatment Plant
filter backwash water storage lagoon and wastewater recycle
system
6/2008
10/2008
3 Design and construct enhanced ultra violet disinfection at the water
treatment plant
8/2009
Restorative: If you are unable to give three examples, please explain why:
-7R-
P.LICANT'CERTI FLCATi
enREAS, The City of Yakima, is applying to the Washington State Public Works Trust Fund program for a low-interest loan
eligible project; and
WHEREAS, RCW 43 155 070 requires that applicants planning under RCW 36 70A.040 must have adopted
comprehensive plans in conformance with the requirements of chapter 36 70A RCW, and must have adopted
development regulations in conformance with the requirements of chapter 36.70A RCW, and
WHEREAS, RCW 70 95 requires a comprehensive Solid Waste Management plan be adopted by the city or county; and
WHEREAS, RCW 43.20 050, requires that applicants have a current water system plan, and
WHEARAS, the applicant certifies that it has a currently adopted plan for each and every one of the systems it owns and
operates and that these plans fully conform to the specifics within this application, and
WHEREAS, RCW 43 155.070 requires that county and city applicants must have adopted the local optional one-quarter of one
percent Real Estate Excise Tax, as described in Chapter 82 46 RCW; and
WHEREAS, the applicant states that their Capital Facility Plan is consistent with the Comprehensive Land Use Plan of the
jurisdiction in which they provide service, and
WHEREAS, the local governing body has approved submission of this application for a Public Works Trust Fund loan, and
WHEREAS, the applicant recognizes and acknowledges that the information in the application forms is the only information,
which will be considered in the evaluation and/or rating process Incomplete responses will result in a reduced chance of
funding In order to ensure fairness to all, the Public Works Board does not accept any additional written materials or permit
applicants to make presentations before the Board, and
EirilEREAS, it is necessary that certain conditions be met as part of the application process; and
REAS, RCW 43.155 060 requires that the project will be advertised for competitive bids and administered
according to standard local procedure, and
WHEREAS, the loan will not exceed the maximum amount allowed by the Board of eligible costs incurred for the project; and
WHEREAS, any loan arising from this application constitutes a debt to be repaid, and
Rita DeBord,.Director of.Finance and Budget; 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
NOW THEREFOREtTI:CatitOtYakiMai certifies that it meets these requirements, and further that it intends to enter into a
loan agreement with the Public Works Board, provided that the terms and conditions for a Public Works Trust Fund loan are
satisfactory to both parties
Signed:
Title:
Phone Number
Date
ATTEST
•
R A. Zais, Jr. City Manager
509-575-6040
-9c-
ember or Cona 4, OM)
WHEREAS, David Brown has prepared this application for a Washington State Public Works Trust
Fund loan; and
WHEREAS, the preparer recognizes and acknowledges that the information in this application is the only
information that will be considered in the evaluation and/or rating process. Incomplete responses will result in
a reduced chance of funding, and that in order to ensure fairness for all, the Public Works Board does not
accept any additional written materials or permit applicants to make presentations before the Board; and
WHEREAS, the information provided in this application is true and correct to the best of the preparer's belief
and knowledge; and
NOW THEREFORE, David Brown recognizes and acknowledges the above declarations and certifies
that this application meets the above requirements.
Signed.
Title.
Phone Number:
Date:
ATTEST:
Water/Irrigation Division Manager
509-575-6204
•
•
•
Are you using the correct application
(2007-2009) PWTF Program Application
Have all questions that apply to the project you are
requesting funds for been answered?
Have you attached a Project Map?
Has someone else reviewed the application?
Have you attached any relevant resolutions or
ordinances?
Have you signed the Applicant Certification?
Have you signed the Preparer Certification?
Have you made and included the appropriate copies
and 1 original?
O
s
•
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No 2-0
For Meeting of April 17, 2007
ITEM TITLE:
Consideration of a resolution authorizing the City Manager to execute documents and
agreements pursuant to a loan application to the Washington Public Works Trust Fund for
$2,257,200 to drill a new 3,000 gallon per minute water supply well.
SUBMITTED BY: Dave Zabell, Assistant City Manager
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 $2,257,200 loan
from the state Public Works Trust Funds for a new 3,000 gallon per minute water supply well. This
application would be for 2008-09 funds, with the work scheduled to be completed from 2008 to 2009.
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
$400,000 be provided from its Capital Improvements Program budget (reserves). The total project cost
is estimated at $2,657,200.
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
o Installing pump
o 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 Opting Fund & Public Works Trust Fund
APPROVED FOR SUBMITTAL: ���`� City Manager
STAFF RECOMMENDATION:
Staff respectively requests adoption of resolution
BOARD/COMMISSION RECOMMENDATION.
COUNCIL ACTION
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
well as the 2004 Water System Plan.
identified in, the 2004 Cost of Service and Rate Study, as
With Council approval staff will submit the application by May 7, 2007. The project funding list will
be announced this fall and must be approved by the legislature in the 2008 session.
•
•
1069
CONTRACTS
Contract Title
Public Works Trust Fund Construction Loan Agreement
Contracting Party
Washington State Public Works Board
Purpose
New Water Well for City of Yakima Water System
Originating Division
Water
Staff Liaison
Dave Brown
Amendments
Effective Date
Eff. Date Explanation
Approved 3/18/08
Expiration Date
07/01/2028
Exp. Date Explanation
Dollar Amount
2,257,200.00
Dollar Amt Explanation
Contract ID
2008-052
Resolution ID
R-2007-60
Insurance (yes/no)
Insurance Expires
Insurance Name
File Location No.
C 08 051
Archive Info
Comments
Approved in 2007 but no contract until 2008