ITEM TITLE:
#16-42 - Amending the 2016 Budget in the Capital Improvement Project Fund by Reducing the Amount of Grant and Loan Funds Received and Authorized for Expenditure from the Municipal Matching Grant Program and the Alaska Clean Water Fund for the Sewer Treatment Plant Outfall Project
SUBMITTED BY: Lisa Von Bargen, CEDD Director
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
Approve Resolution #16-42 Amending the 2016 Budget in the Capital Improvement Project Fund by Reducing the Amount of Grant and Loan Funds Received and Authorized for Expenditure from the Municipal Matching Grant Program and the Alaska Clean Water Fund for the Sewer Treatment Plant Outfall Project.
SUMMARY STATEMENT:
In 2013 the City of Valdez was awarded a Municipal Matching Grant (MMG) and an Alaska Clean Water Fund (ACWF) Loan, both for the Sewer Treatment Plant Outfall project. The original project was estimated to cost $2,935,432. The City first applied for the loan and was awarded $1,230,675 in loan funds toward the project. The City then applied and was awarded $2,054,802 in grant funds. This represents 70% of the project budget - the maximum allowed under the grant program. The timing of the loan application was prior to the grant. Not knowing if the City would be awarded grant funds the total amount of loan and grant funds exceeded the original project construction estimate.
Harris Sand & Gravel was awarded the bid for construction, and was ultimately paid $ 1,924,112.31. This amount is almost one million less than the original project estimate. In addition to the outfall construction new telemetry controls had to be purchased for the Sewer Treatment Plant. A portion of that purchase and installation related to the outfall project and so a percentage was authorized as eligible for grant/loan funding. In all $598,340.43 in loan funds and $1,510,869.95 in grant funds was expended totaling $2,109,210.38.
This leaves $543,932.95 in grant and $632,334.57 in loan authorizations unexpended and therefore also not available for reimbursement. These funds were restricted for use on this project so unused funds may not be used toward another project. The grant and loan have both been officially closed out with the state. This resolution is a housekeeping function to reduce the authorized expenditure and the anticipated revenue associated with the grant and loan. The attached resolution addresses this and zeros out the balances in the CIP expenditure and revenue accounts associated with the grant and loan.