Wasilla council approves application to state loan programs to update water and sewer plans and replace legacy septic tanks

The Wasilla City Council approved an action memorandum (AM 2553) authorizing staff to submit applications to the Alaska Department of Environmental Conservation’s (ADEC) loan programs for water and sewer projects, including updates to the city’s water and sewer master plans and the start of a legacy septic tank replacement program.

Ted, who introduced the memorandum, told council members the ADEC programs can provide low‑cost loans that, under certain conditions and tiers tied to census criteria and ARPA funds, may be forgivable. He said council staff view the programs as a way to leverage local funds: "We really believe after talking to the representatives at ADEC that this could be a game changer as we're going or trying to replace all of our septic tanks." The memorandum identifies an initial set of three projects (update water master plan, update sewer master plan, begin septic tank replacements) and notes larger program availability thereafter.

Council member Crafton moved approval of AM 2553; Council member Rubio seconded. No objection was raised and the motion passed. Staff described next steps: craft RFP language for the master plans so projects remain eligible for the state funds and release the RFPs in the normal procurement process. Staff estimated the RFP for the city's feasibility or master plan work would go out in about 30 days.

Officials discussed program scale and timing. Ted summarized that the state program makes roughly $3,500,000 available for water projects and $2,000,000 for sewer projects (figures discussed as program‑level annual availability) and noted a forgivable‑loan qualification tied to census tiering and ARPA allocations. Staff also flagged Build America requirements for steel procurement that could affect tank replacements: "All the steel does have to be American steel tanks," one staff member said. Council members discussed whether the city would front money for immediate tank replacements and later apply for funds; staff clarified the program is intended to move projects forward rather than reimburse completed work.

Council members expressed support for pursuing the funding. "This would supercharge that program," one council member said of the city’s legacy septic replacement effort. The council approved the action memorandum with no recorded objections.