DATE: April 17, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Mark Hilty, ACA Public Works
SUBJECT:
title
Consideration of Resolution 2017-29, A Resolution to Approve Financing for the Water Reclamation Facility Upgrades and Expansion Project with the State Revolving Fund. (04/25/17 WS, 04/25/17 BOMA Deferred to May 9, 2017 BOMA 7-1)
body
Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning a financing agreement with the State Revolving Fund (SRF) to finance the upgrade and expansion of the Water Reclamation Facility.
Background
The Water Management Department has proposed an upgrade and expansion of the City's Water Reclamation Facility from 12 million gallons per day (MGD) to 16 MGD. Among the many improvements designed, the project provides substantial improvements to the liquids treatment processes with the addition of a fermentation zone and chemical treatment capabilities for enhanced removal of nutrients. The project also provides for significant improvements to the biosolids processes which will enable the City to produce Class A, Exceptional Quality (EQ) biosolids providing a range of disposal options that includes a beneficial reuse product.
The State Revolving Fund has agreed to finance a portion of the expenditure for this project at particularly favorable interest rates, which the City would be unlikely to obtain in the municipal bond market. The project, proposed to be funded largely through the SRF, will provide operators and supervisory staff much needed treatment capabilities in terms of current and future regulatory requirements.
Financial Impact
The estimated project cost is $112,875,000, including construction, contract administration services and resident project representative services. The SRF funding is in the form of two loans:
1. CG5 2017-375: Loan amount is $1,275,000 with $225,000 principle forgiveness. (CO...
Click here for full text