A resolution approving and authorizing a Form of Interim Loan and Disbursement Agreement by and between the City of Pella, Iowa, and the Iowa Finance Authority, and Authorizing and Providing for the Issuance and Securing the Payment of $1,150,000 Water Revenue Capital Loan Notes Anticipation Project Note, Series 2014, of the City of Pella, Iowa Under the Provisions of the Code of Iowa, and Providing for a Method of Payment of Said Notes was approved by the Pella City Council last week.
This resolution approves and authorizes a $1,150,000 Interim Loan and Disbursement Agreement by and between the City of Pella, Iowa, and the Iowa Finance Authority. The purpose of the interim agreement is to secure an interest free loan for the planning and design work that is currently taking place as a part of the City’s long-term water supply plan. Once the planning and design phase of the project is complete this interim note will be rolled into Pella’s final state revolving loan.
Long-term Water Supply Plan
On April 2, 2013 Council approved an engineering services agreement with HR Green, Inc. in the amount of $945,500 for the design of a reverse osmosis system (RO), an additional Jordan Well, Water Treatment plant improvements and a new raw water main from the new Jordan Well to the Treatment Plant. This contract was approved after HR Green conducted an extensive infrastructure analysis for our water utility. Listed below were key points of the analysis:
-The existing water infrastructure is capable of meeting water demands; however, due to potential water quality issues as well as a lack of adequate water source backup, HR Green stated the City needs to consider in the foreseeable future the addition of a 3.0 million gallon per day (MGD) reverse osmosis plant along with an additional Jordan Well.
-The long-term water supply plan outlined by HR Green involves utilization of the Des Moines River alluvial well system and existing lime softening plant and a new 3.0 MGD reverse osmosis plant along with an additional Jordan Well.