DATE: June 5, 2017
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Mark Hilty, Assistant City Administrator - Public Works
SUBJECT:
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Consideration of Contract 2017-0136 with the Tennessee Department of Environment and Conservation (TDEC) for a State Revolving Fund (SRF) Loan in the Amount of $1,500,000 with Principal Forgiveness of $225,000
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the SRF loan agreement in support of Resolution 2017-28 approved by the BOMA on May 9, 2017.
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.
Contract 2017-0136, in support of Resolution 2017-28, is one of two loan agreements to fund $80,000,000 of the Water Reclamation Facility project.
Financial Impact
The estimated project cost is $112,875,000, including construction, contract administration services and resident project representative services. The SRF fundin...
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