Back to Calendar
Bylaws   Item #
Regular Council Meeting Agenda
C-1119-20 - Industrial Watermain Borrowing Bylaw - Second and Third Reading - Boje
Strategic Vision Element:
This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan
Request for Decision Summary
Second and third reading of debenture Bylaw C-1119-20 -Industrial Watermain Borrowing Bylaw is being brought forward for Council's consideration. This bylaw will authorize the borrowing of up to $2,160,000 for the construction of the Industrial Watermain and Surface Rehab project for 2020, as approved in the 2020 - 2022 Corporate Plan.
That second reading be given to Bylaw C-1119-20 - Industrial Watermain Borrowing Bylaw.
That third reading be given to Bylaw C-1119-20 - Industrial Watermain Borrowing Bylaw.
The 2020 - 2022 Corporate Plan included a multi-year Industrial Watermain and Surface Rehab project. The proposed cost of this project for 2020 is $3,600,000. The approved Corporate Plan funded this item $2,160,000 from utility funded debt, and $1,440,000 from Municipal Sustainability Initiative Funds. This bylaw will secure the utility funded portion of project funding. This project is deemed essential as groundwater issues and heavy traffic have deteriorated the road base and these roads are in desperate need of repair. The need is most evident in the spring when the frost is coming out of the ground. The watermains within these roads were installed in the early 1970's and should be replaced with new PVC watermains prior to road construction as they are nearing the end of their expected life and are showing some evidence of wear. In 2020, construction of industrial watermain upgrades and surface rehabilitation has been planned for Diamond Avenue from Campsite Road to Golden Spike Road.
Council may choose not to give second and third reading to this bylaw. If this option is chosen, alternative sources of financing would have to be secured to finance the construction of the industrial watermain upgrades portion of this project, or the project may need to be delayed.
In accordance with the Municipal Government Act, the bylaw was given first reading on April 27, 2020, and advertised in the local newspaper on May 1,2020 and May 8, 2020. The 15 day petition period has passed as of May 23, 2020 without any notice of petition.
Funds will be secured to complete the construction of the industrial watermain upgrades in 2020.
The City can currently borrow $2,160,000 at a rate of 2.179% for a period of 20 years for an annual debenture payment of $133,815 from the Alberta Capital Finance Authority. The borrowing was included in the 2020 budget approved by Council during corporate planning. This bylaw will require a payment structure that begins payments in 2021. These payments were appropriately included in the 2020-2022 budget approved by Council.