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Home My Public Portal AboutResolution 2019-13, Authorizing An Interfund Loan From Unallocated General Fund Money to Sewer Fund For Certain Sewer Improvement Project Uses For The City RESOLUTION NO. 2019-13 A RESOLUTION AUTHORIZING AN INTERFUND LOAN FROM UNALLOCATED GENERAL FUND MONEYS TO THE SEWER FUND FOR CERTAIN SEWER IMPROVEMENT PROJECT USES FOR THE CITY OF RIVERDALE, IOWA WHEREAS, The City Council of the City of Riverdale("City") has acknowledged that certain improvements to its sanitary sewer system need to be made to correct for inflow and infiltration by groundwater, as reported in the"Report of the Evaluation of Sanitary Sewers of Concern"prepared for the City by its civil engineer MSA Professional Service, Inc. ("MSA"), dated February 2019, and discussed at its regular Council meeting of March 26,2019; and, WHEREAS, With said February 2019 report, MSA also prepared an estimate of costs of improvements needed to address the shortcomings in the sanitary sewer system, with said estimate listing repairs and correction to sewers in Haven's Acres,on Fenno Drive and Valley Drive, and at Bellingham Street,totaling$141,600; and, WHEREAS,the City's financial reports indicate a steady diminution in its Sewer Fund balance due to its sewer rates not providing sufficient revenues for operations, maintenance and improvements expenses to the system, and therefore not having funding available on hand within the Sewer Fund to carry out such repairs noted herein; and, WHEREAS, repair,maintenance and capital improvements to the City's sanitary sewer system are an essential corporate purpose per Iowa Code Chapter 384.24(3)(d), interfund transfers are referenced in Chapter 384.18(1)(c)of the Iowa Code, interfund loans are not prohibited by the Iowa Code and the City is authorized by Chapter 384.7 of the Iowa Code to set aside funds for both current and future capital improvements projects for the benefit of its constituents; and, WHEREAS,the City can borrow money between its own funds at a much lower rate,which interest shall be paid back to the general fund at the same rate it is earning as of the date of this resolution, and said loan can be made without loan initiation costs,all at a lower cost than from a private or public issuer of debt,and the City has unallocated general fund moneys currently available; and, WHEREAS, since it is a best practice to establish appropriate borrowing interest rate and repayment terms, limitations on the use of the borrowed funds, and a term limit,therefore this resolution shall set those terms forth and those terms shall be implemented and followed. NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF RIVERDALE, SCOTT COUNTY, IN THE STATE OF IOWA: Section 1. That the February,2019 cost estimate from MSA for$141,600.00, entitled"Riverdale I & I Evaluation(Modified)"is attached to and hereafter made a part of this Resolution. Section 2. That the proceeds of the interfund loan of up to$150,000.00 shall be used solely for the improvements noted within or directly related to said cost estimate. Section 3. That within a month following the acceptance of a contract to make the improvements to reduce inflow and infiltration to the sewer system,the City Clerk/Treasurer shall make an interfund loan Prepared by City Administrator Tim Long April 3, 2019 Resolution 2019-13 Page 2 $150,000 Interfund Loan from General Fund to Sewer Fund from unallocated General Fund moneys to the Riverdale Sewer Fund in the amount of up to$150,000.00 at the rate of interest then currently paid on the City's deposits by its depository, that amount being 2.15% at present, in simple interest on the balance outstanding, and providing for the repayment of the interfund loan in full, plus interest, over a period not to exceed ten years. Section 4. That the Sewer rates and/or charges shall be set and maintained to provide sufficient revenues dedicated to repayment of the interfund loan for the term designated, with said rates amended within the City Code by ordinance in the manner prescribed by law, at a future date reflective of the date of the interfund loan as set forth in Section 3 above. Section 5. That the terms of this interfund loan may be altered only by an amending resolution of the Council and only if there should be such unforeseen exigencies as to cause there to be insufficient revenues to meet the repayment schedule, and only after due consideration of amendments to the City Code for the adjustments to the Sewer rates and charges. Section 6. That the City Clerk Treasurer shall set up accounts in the City's budgetary software and on the Treasurer's Report to the Council to reflect this interfund loan at such time as it is executed. PASSED AND APPROVED this I th day of ( ,2019. ((.\ ichael Bawden, ayor ATTEST: 'onald Fullerlove, City Clerk Prepared by City Administrator Tim Long April 3, 2019 2018 Riverdale I & I Evaluation (Modified) City of Riverdale Scott County, Iowa For the Havens Acres Area of Riverdale-Including Wisteria Lane,South Kensington Street,and Sycamore Lane *Note: This Opinion of Probable Construction Cost incorporates those sanitary issues rated 4 or 5 in priority ESTIMATE YEAR: 2019 CONSTRUCTION YEAR: 2020 ITEM NO. DESCRIPTION QTY. UNIT UNIT PRICE TOTAL PRICE General 1 MOBILIZATION, BONDS AND INSURANCE 1 LS $5,000 $5,000 2 TRAFFIC CONTROL 1 LS $1,000 $1,000 3 EROSION AND SEDIMENT CONTROL,SWPPP 1 LS $1,000 $1,000 Project Specifics Wisteria Lane 4 Sanitary Sewer CIPP Lining(8-inch) 753 LF $28 $21,084 5 Sanitary Sewer Lateral Connection Reinstatement 12 EA $130 $1,560 6 Sanitary Sewer Lateral Connection Grout Seal&Test 12 EA $610 $7,320 South Kensington Street 7 Sanitary Sewer CIPP Lining(8-inch) 395 LF $28 $11,060 8 Sanitary Sewer Lateral Connection Reinstatement 5 EA $130 $650 9 Sanitary Sewer Lateral Connection Grout Seal&Test 5 EA $610 $3,050 10 Manhole Lid and Casting Replacement on Manholes 10893, 3 EA $2,000 10894,and 13889 $6,000 11 Repair Cleanout/Plug Lateral 1 EA $750 $750 Sycamore Lane 11 Sanitary Sewer CIPP Lining(8-inch) 370 LF $28 $10,360 10 Manhole Lid and Casting Replacement on Manhole 13890 1 EA $2,000 $2,000 CONSTRUCTION TOTAL $70,834 Inflation 4% per year $2,833.36 CONSTRUCTION TOTAL( 2020 ) $73,667 Contingency 10% $ 7,400 Design Engineering& Bidding 13% $ 9,600 Construction Engineering 6% $ 4,500 trZi c RA G`. A V 2018 Riverdale I & I Evaluation (Modified) City of Riverdale Scott County, Iowa For the East Area of Riverdale including,Fenno Road,Fenno Drive,and Valley Drive 'Note: This Opinion of Probable Construction Cost incorporates those sanitary issues rated 5 in priority ESTIMATE YEAR: 2019 CONSTRUCTION YEAR: 2020 ITEM NO. DESCRIPTION QTY. UNIT UNIT PRICE TOTAL PRICE General 1 MOBILIZATION, BONDS AND INSURANCE 1 LS $2,000 $2,000 2 TRAFFIC CONTROL 1 LS $750 $750 3 EROSION AND SEDIMENT CONTROL,SWPPP 1 LS $500 $500 Project Specifics Fenno Drive 14 Injection Grout Seal Crack in Lateral Pipe at Joint(92.6'from Manhole 10996) 1 EA $1,000 $1,000 15 Manhole Lid and Casting Replacement on Manhole 10997& 2 EA 10996 $2,000 $4,000 Valley Drive 16 Sanitary Sewer CIPP Lining(8-inch) 340 LF $28 $9,520 17 Sanitary Sewer Lateral Connection Reinstatement 1 EA $130 $130 18 Sanitary Sewer Lateral Connection Grout Seal &Test 1 EA $610 $610 CONSTRUCTION TOTAL $18,510 Inflation 4% per year $740.40 CONSTRUCTION TOTAL( 2020 ) $19,250 Contingency 10% $ 2,000 Design Engineering& Bidding 15% $ 2,900 Construction Engineering 10% $ 2,000 Yrt kA C_' A 2018 Riverdale I & I Evaluation (Modified) City of Riverdale Scott County, Iowa For the Arconic Acrea of Riverdale including South Bellingham Street `Note: This Opinion of Probable Construction Cost incorporates those sanitary issues rated 5 in priority ESTIMATE YEAR: 2019 CONSTRUCTION YEAR: 2020 ITEM NO. DESCRIPTION QTY, UNIT UNIT PRICE TOTAL PRICE General 1 MOBILIZATION, BONDS AND INSURANCE 1 LS $1,000 $1,000 2 TRAFFIC CONTROL 1 LS $300 $300 3 EROSION AND SEDIMENT CONTROL,SWPPP 1 LS $200 $200 Project Specifics South Bellingham Street Manhole Lining Surface Prep,Clean,and Abrade of Manholes 4 3 EA 13898, 13897,& 13896 $500 $1,500 Line Manhole Interior(Cementious) Manholes 13898, 13897, & 5 45 VF 13896 $200 $9,000 6 Repair Cleanout/Plug Lateral 3 EA $750 $2,250 CONSTRUCTION TOTAL $14,250 Inflation 4% per year $570.00 CONSTRUCTION TOTAL( 2020 ) $14,820 Contingency 10% $ 1,500 Design Engineering&Bidding 15% $ 2,300 Construction Engineering 10% $ 1,500 SIA A 2018 Riverdale I & I Evaluation (Modified) City of Riverdale Scott County, Iowa *Note: This Opinion of Probable Construction Cost incorporates those sanitary issues identified in each sub-area ESTIMATE YEAR: 2019 CONSTRUCTION YEAR: 2020 ITEM NO. DESCRIPTION TOTAL PRICE 1 Havens Acres Sanitary Sewer Rehabilitation Cost $95,200 2 Fenno Drive & Valley Drive Sanitary Sewer Rehabilitation Cost $26,200 3 Bellingham Street Sanitary Sewer Rehabilitation Cost $20,200 TOTAL COST $141,600 GS K A