HomeMy WebLinkAboutUtilities 2011-07-12 Item 2B - Loan Application - 2013 Public Works Trust Fund Loan Application for Rehabilitation of Central Business District Sanitary Sewer Repair City of Tukwila
s Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Utilities Committee
FROM: Bob Giberson, Public Works Director
DATE: July 8, 2011
SUBJECT: 2013 Public Works Trust Fund Loan Application
Project No. 90540207
Rehabilitation of the CBD Sanitary Sewer Repair
ISSUE
Approve Public Works Trust Fund (PWFT) low interest loan application for the rehabilitation of
sanitary sewer system in the Central Business District (CBD).
BACKGROUND
The original asbestos concrete sewers in the CBD were installed in the middle 1960's and are
nearing the end of their useful life. The City has experienced two major asbestos sewer line
collapses in the last four years. The collapsed sewer line this year cost the City over $500,000
and took more than two weeks to repair.
ANALYSIS
The City is applying for a 20 -year PWTF loan to rehabilitate the existing asbestos sanitary
sewer in the CBD. The project will improve sewer system reliability by eliminating extraneous
flow entering the system through cracks and joint separations. Additionally, the project will also
eliminate backups, reduce or eliminate high maintenance costs, and reclaim capacity in the
system.
The cost of the project is approximately $1,000,000. The City currently has a capital
improvement project (CIP 90540207) which would replace existing sewer lines between
Andover Park E and Andover Park W at 1075 Andover Park E. The PWTF loan would enable
the City to rehabilitate /replace more of the asbestos concrete sewers.
The loan of $750,000 requires a city match of $250,000 with an interest rate of 2 The total
annual payment is approximately $46,000 for the 20 year period.
The impact to the sewer fund and future sewer rates by not applying for this low interest loan
would be potentially catastrophic. If the existing sewer lines in the CBD were to fail, the cost of
repairing the sewer lines by open cut excavation could be over five million dollars based on the
construction costs from the February 2011 sewer repair.
RECOMMENDATION
Authorize staff to pursue approval of the PWTF loan application which is due July 21, 2011.
WAPW Eng \OTHER \Mike Cusick \Info Memo- PWTF.doc
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