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HomeMy WebLinkAboutReg 2004-05-03 Item 3H - Loan Acceptance - Public Works Trust Fund Loan for Allentown / Foster Point Water and Sewer ConstructionCAS Number: 04-061 Agenda Item Title: Original Sponsor: Timeline: Sponsor's Summary: Recommendations: Sponsor: Committee: Administration: Cost Impact (if known): Fund Source (if known): Meeting Date 4/26/04 Meeting Date 4/26/04 5/03/04 COW; COL TOIL AGENDA SY_ ()PSIS Meeting Date 4/26/04 5/0.9/04 o'4 -Olo\ Prepared by MC IBb for Council Admin. Initial: 1 Mayor's review I Council review 1 it 1 I I I I ij f X AT IQN I Original Agenda Date: April 26, 2004 ITEMNO. 3. In Accept Public Works Trust Fund loan of $5,700,000.00 for construction of Allentown/Foster Point Water Sewer Project. Public Works The Public Works Trust Fund has approved our application of a loan for $5,700,000.00 to construct water, sewer, and storm water improvements for the Allentown and Foster Point neighborhoods. Authorize Mayor to sign the loan agreement with Public Works Trust Fund. Forward to COW and the Regular Council with approval. Same as sponsor. $5,700,000.00 loan at 2% per annum for a term of 20 years. Water (403.01), Sewer (403.02), and Surface Water (412) 6 WO at Action May 3, 2004 Regular meeting for action. Attachments Information Memo dated April 12, 2004 Loan Agreement with Public Works Trust Fund Utility Committee Meeting Minutes from April 20, 2004 Memorandum to Mayor datdd April12, 2004. Discussion. Council consensus existed to forward the item to the INFORMATION M~.MO To: Mayor Mullet From: Public Works DirectOr~~ Date: April 12, 2004 Subject: Allentown/Foster Point Water and Sewer Project Public Works Trust Fund Loan Acceptance ISSUE In May 2003, the City of Tukwila Public Works Department applied for a $5,700,000 Public Works Trust Fund (PWTF) loan to construct neighborhood water and sewer improvements for the Allentown and Foster Point areas of Tukwila. This loan was recently approved by the Governor and now awaits formal acceptance by the City. BACKGROUND Design of the Allentown/Foster Point Water and Sewer Improvements Project - Phase 2 is nearly complete. The Allentown and Foster Point neighborhoods anxiously await the completion of these much needed improvements. Current estimated costs for Phase 2 are: Construction, Contingency, and Taxes $5,400,000 Land Acquisition 125,000 Construction Management Engineering 475,000 TOTAL $6,000,000 The PWTF loan is in the amount of $5,700,000 at 2% interest per annum over 20 years. The City of Tukwila is contributing $300,000 in local funds toward the project. The total funding is $6,000,000 for the project. The water, sewer and surface water funds will share the debt service of approximately $365,000 per year but will not be confirmed until after the project has been constructed and the costs are finalized. RECO~IlVIENDATION Forward to Council with the recommendation to accept the loan from the Public Works Trust Fund for the Allentown/Foster Point Water and Sewer project. MC:lw attachment: Loan Agreement with PWTF file: 95-SW02,2