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Committee approves $8.65 million Ecology loan for reclaimed-water project
Summary
The Parks and Public Works Committee approved a resolution to accept an $8,651,000 low-interest loan from the Washington Department of Ecology to finish the reclaimed water distribution and reservoir project. The loan is 1.6% for 30 years; repayment is tied to reimbursement requests and begins Dec. 30, 2027, per staff.
The Parks and Public Works Committee voted to accept an $8,651,000 low-interest loan from the Washington Department of Ecology to complete the city’s reclaimed water distribution and reservoir project.
Andrew, a public works staff member, told the committee the Ecology offer covers the full project budget: "we've got the full, project budget of $8,651,000 offered. Same terms, 30 year, 1.6 interest rate," and that the draft agreement and amortization schedule were included with the agenda materials.
The resolution clears a funding gap created when the project scope grew during concept design — the city previously had a $6,866,000 loan offer and sought an additional $1,785,000. Andrew said the project is currently out to bid and that the city expects robust contractor interest: "I think we've got 8 or 9 general contractors that are looking at the project," with bid results to be presented in April and a likely ground-breaking in May. He also said there is a June 2026 construction completion deadline.
Committee members asked about how and when the loan funds would be accessed. Andrew said the loan is reimbursable and that repayments begin after reimbursement requests trigger the loan schedule: "it is reimbursable. The day 1 date... is December 2027. And if we don't request any reimbursement requests, then there wouldn't be any repayment." He clarified that the city typically does not draw the full amount on day one and will request only the funds needed during construction.
Members also asked whether any funds remaining if the project comes in under budget could be used for other Public Works projects. Andrew said there are program requirements that make funds project-specific, but coming in under budget can improve the city’s prospects for similar loans in the future and reduce repayment costs.
The committee moved and seconded the resolution and approved it during the meeting. The motion language on the record was to accept the additional Ecology loan funding for the reclaimed water distribution system improvements project; the meeting transcript does not identify a named mover or recorder of the vote tally.
Next steps from staff are to present bid results in April, begin construction work as scheduled in May if bids align with budget, and finalize the loan repayment schedule after final reimbursement amounts are known.
Provenance (first and last references in meeting transcript are shown): the agenda bill announcement naming a Department of Ecology loan appears in the meeting packet discussion, and committee approval is recorded later in the same item.
