Title
Approval of a Resolution Authorizing a Loan Agreement with the Department of Ecology for Replacement of a Wastewater Lift Station
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a Resolution authorizing a loan agreement with the Department of Ecology for replacement of a wastewater lift station.
Report
Issue:
Whether to approve the Resolution authorizing a loan agreement for financial assistance to replace critical infrastructure.
Staff Contact:
David Dunn, Wastewater Planning Engineer, Public Works-Water Resources, 360.753.8562
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The Old Port 1 lift station is critical infrastructure for the Wastewater Utility. The sewage lift station is located on the shore of Budd Inlet at the base of the Old Port development. The station was constructed in 1970, is at the end of its design life, and is at risk from both sea level rise and landslides.
The Department of Ecology administers the State Revolving Fund (SRF) loan program under section 6 of the federal Clean Water Act. The SRF program exists to provide low-cost funding for clean water infrastructure, like the Old Port 1 lift station. The Wastewater Utility was awarded a loan in the amount of $3,229,920.00 with a 30-year term at 1.6% interest.
This loan will finance the construction of the new lift station. The Wastewater Utility is currently reviewing the 90% plans for the lift station. The schedule is to bid the project in early 2024 and construct during summer of 2024.
Climate Analysis:
The existing lift station is at risk from sea level rise. The existing hatch to the pumping vault is at an elevation of 13.7 feet above sea level and was underwater during the King tide flooding in December 2022. The electrical panel and controls are mounted next to the lift station, so the flooding did not reach the level of the electrical equipment. The replacement lift station is designed around 50-year sea level projections.
The Wastewater Utility also purchases Green Power for its electrical needs, therefore the operation of the new Old Port 1 lift station is not expected to have an impact on greenhouse gas emissions.
Equity Analysis:
The Old Port 1 lift station is critical infrastructure for the Wastewater Utility. Failure of the lift station would result in a sewage spill into Budd Inlet, negatively impacting all members of our community. Financing the construction with a low interest loan also reduces the Wastewater Utility’s expenses compared to other financing methods, which benefits utility rate payers.
Neighborhood/Community Interests (if known):
The Old Port 1 lift station is co-located with the private boat dock owned by the Old Port Community Homeowners Association. They are aware of, and are interested in, the project.
Financial Impact:
The loan will provide financing for the construction of the replacement of the Old Port 1 lift station. The Old Port 1 lift station is already included in the approved capital budget. The loan award is for $3,229,920.00, but reimbursement and repayment will only be made for the actual cost of the lift station.
Options:
1. Approve a Resolution authorizing a loan agreement with the Department of Ecology for replacement of a wastewater lift station. This will allow the Wastewater Utility to replace the Old Port 1 lift station, which is vulnerable to damage from sea level rise and landslides, thereby reducing the risk of a failure and causing a sewage spill into Budd Inlet.
2. Do not approve the Resolution authorizing a loan agreement to replace the Old Port 1 lift station. Instead, the completion of the project will be delayed until an alternative source of funding for the project is secured, such as a rate increase or postponement of another project.
3. Take other action.
Attachments:
Resolution
Agreement
Opinion of Recipient’s Legal Counsel