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Astoria approves $3.2 million state loan for sewage lift-station rehabilitation
Summary
The Astoria City Council authorized a DEQ Clean Water State Revolving Fund loan amendment totaling $3,204,028 to rehabilitate three aging sewage lift stations; staff said roughly half the loan is forgivable, lowering net cost to about $1.6 million for the city and ratepayers.
The Astoria City Council on Oct. 20 authorized an amendment to a DEQ Clean Water State Revolving Fund (CWSRF) loan agreement to cover construction of a sewage lift-station rehabilitation project.
City Manager Spence told the council the three lift stations convey between about 1,000,000 gallons per day and 18,000,000 gallons per day during winter storms and are “over 50 years old” and beyond serviceable life. He said the approximate total project cost is about $3.6 million and that the loan amendment before the council would add $3,084,108 bringing the loan total to $3,204,028.
"The one thing unique about this loan is that half of this [amount] is forgivable," Spence said, adding that forgivable portions will reduce the amount the city must repay and provide relief to ratepayers. Spence and staff said the loan structure is intended to fill remaining funding gaps after prior grants and design funding.
Councilor Adams praised Public Works and Assistant City Engineer Cindy for the work to secure funding. Adams moved to authorize the DEQ CWSRF loan agreement amendment for the construction phase in the amount of $3,204,028; Councilor Mozzarella seconded. The motion carried on an affirmative vote.
The council did not adopt additional project design details at the meeting; Spence said staff is available to answer technical questions and will proceed with the construction-phase financing consistent with the approved loan amendment. There was no dissent to moving forward with the loan authorization during the session.
Next steps: staff will proceed with the construction-phase financing under the terms described and return to council as needed for project-level approvals and contract awards.
