HomeMy WebLinkAboutResolution No. 4253 Submission of Treasure State Endowment Program Application.pdf
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Natalie Meyer, Grants Coordinator
Bob Murray, Project Engineer
Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: APPROVE RESOLUTION NO. 4253 AUTHORIZING SUBMISSION
OF THE TREASURE STATE ENDOWMENT PROGRAM (TSEP) APPLICATION
MEETING DATE: April 12, 2010
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Sign Resolution No. 4253, authorizing the City of Bozeman to submit
a grant application to the Treasure State Endowment Program (TSEP) for the remainder of the
R2 sewer rehabilitation area (Mendenhall St. to Tamarack St. from Grand Ave. to Montana
Ave.).
BACKGROUND: The Montana Department of Commerce administers the Treasure State
Endowment Program, which is a permanent trust fund that was created in 1992 through coal
severance taxes. The purpose of the program is to help solve serious water, wastewater, and solid
waste problems and keep user rates affordable. Eligible projects include: drinking water systems,
wastewater treatment systems, sanitary sewer systems, solid waste disposal systems, solid waste
separation systems, and bridges. Applications are accepted every other year and awarded through
a competitive process and approved by the legislature. There is a dollar for dollar match
requirement. The award ceiling ranges from $500,000 to $750,000, depending on the applicant’s
combined water and sewer rate in relation to the local Median Household Income (MHI).
Grant Project Selection
We referred to the Capital Improvement Program (CIP) to identify eligible TSEP projects. Based
on TSEP’s number one statutory priority of protecting health and safety needs, we focused on
water and sewer rehabilitation projects. As part of the financing for the new $54 Million dollar
Water Reclamation Facility (WRF), we were forced to eliminate the FY10 funding for bi-annual
wastewater system upgrades. This interruption impacts our ability to effectively maintain our
aging sewer infrastructure.
The sewer rehabilitation project from Mendenhall St. to Tamarack St. from Grand Ave. to
Montana Ave., known as the R2 area, was originally identified as a priority area in the 1998
Water and Sewer Renovations Facility report. The sewer infrastructure within this project area
suffers from general deterioration, root cuts, fractures, and sections of crushed pipe. While this
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project has been considered a priority since 1998, more urgent projects repeatedly surfaced and
the R2 sewer improvements were deferred. In 2008, a preliminary engineering report for the R2
area was completed by Great West Engineering. Based on available funding, a portion of the
construction work was completed in 2009. Since 2008, a significant portion of this project has
been scheduled in the Capital Improvement Program for Fiscal Year (FY) 2012. Grant funding
through TSEP would allow us to expand the project and address this entire deferred maintenance
priority area.
The remaining scope of work for the R2 area includes replacement of approximately 12,600
lineal feet of pipe. The total project cost is $1,318,100 and we will request $659,050 in grant
funding through TSEP.
FISCAL EFFECTS: The Capital Improvement Program for FY12 recommends up to $800,000
for sewer rehabilitation. This funding would be used to match a contribution from TSEP. If we
do not receive the full grant amount, the project will simply be scaled back accordingly.
ALTERNATIVES: As suggested by the City Commission.
Attachments: Opinion of Probable Cost
Commission Resolution No. 4253
Report compiled on: April 7, 2010
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OPINION OF PROBABLE COST
Project:City of Bozeman - 2011 Sewer Rehab
Date:4/7/2010
Prepared By:RJM
Description: Preliminary estimate for remainder of the R2 sewer rehab area and Lincoln Main Replacement.
Lincoln price from Knive River proposal dated 4/12/09.
Item No.Description Unit Quantity Unit Price Total
1 Mobilization LS 1 $150,000.00 $150,000.00
2 Exploratory Excavation HR 15 $150.00 $2,250.00
3 Traffic Control LS 1 $75,000.00 $75,000.00
4 Manhole Trough & Bench Reconstruction EA 15 $2,450.00 $36,750.00
5 Manhole Bench Repair EA 15 $2,700.00 $40,500.00
6 6" CIPP Sewer Main Rehabilitation LF 5150 $35.00 $180,250.00
7 8" CIPP Sewer Main Rehabilitation LF 2365 $33.00 $78,045.00
8 10" CIPP Sewer Main Rehabilitation LF 4900 $36.00 $176,400.00
9 CIPP Reinstatement of Service Connection EA 175 $200.00 $35,000.00
1010 New 4"Top HatNew 4" Top Hat EAEA 7575 $2 000 00$2,000.00 $150 000 00$150,000.00
11 New 6" Top Hat EA 5 $2,500.00 $12,500.00
12 New 4 " Service Connection EA 5 $1,750.00 $8,750.00
13 New 6" Service Connection EA 5 $2,000.00 $10,000.00
14 4" PVC SDR 35 Sewer Service Pipe LF 100 $60.00 $6,000.00
15 6" PVC SDR 35 Sewer Service Pipe LF 100 $75.00 $7,500.00
16 Imported Backfill CY 100 $75.00 $7,500.00
17 Pavement Removal and Replacement SY 500 $75.00 $37,500.00
Subtotal $1,013,945.00
15% Engineering $152,091.75
15% Contingency $152,091.75
Total $1,318,128.50
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Page 1 of 2
COMMISSION RESOLUTION NO. 4253
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN
AUTHORIZING SUBMISSION OF THE TREASURE STATE ENDOWMENT
PROGRAM (TSEP) APPLICATION
WHEREAS, the City of Bozeman is applying to the Montana Department of Commerce
for financial assistance from the Treasure State Endowment Program (TSEP) to support sewer
rehabilitation in the R2 project area including, Mendenhall Street to Tamarack Street from Grand
Avenue to Montana Avenue.
WHEREAS, the City of Bozeman has the legal jurisdiction and authority to construct,
finance, operate, and maintain the sewer rehabilitation project area;
WHEREAS, the City of Bozeman agrees to comply with all State laws and regulations
and the requirements described in the TSEP Application Guidelines and those that will be
described in the TSEP Project Administration Manual:
WHEREAS, That the City of Bozeman commits to provide the amount of matching
funds as proposed in the TSEP application; and
NOW THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, that Chris Kukulski, City Manager, is authorized to submit this application to the
Montana Department of Commerce, on behalf of the City of Bozeman, to act on its behalf and to
provide such additional information as may be required.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana
at a regular session thereof held on the 12th day of April 2010.
________________________________
JEFF KRAUSS
Mayor
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Page 2 of 2
ATTEST:
________________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FROM:
________________________________
GREG SULLIVAN
City Attorney
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