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HomeMy WebLinkAboutRes2009-047Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2009-047 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, STATING AN INTENT TO FUND $278,000 FOR THE #3 Lift STATION ELECTRICAL UPGRADE PROJECT SUBJECT TO RECEIVING A LOAN IN THAT AMOUN'}, AUTHORIZING A LOAN APPLICA'[7ON ~'~'ITII THE ALASKA CLEAN' WATER FUND AND AUTHORIZING THE CITY MANAGER TO ACCEPT A LOAN OFFER FROM THF. ALASKA CLEAN ~'F'ATER FUND WITH PAYMENTS SUBJECT TO ANNUAL APPROPRIATION WHEREAS, the Seward City Council in its 2009 Capital Budget identified the #3 Lift Station Electrical Upgrade Project as being a priority; and WHEREAS, the project entails completing the generator electrical components and the installation of the air exchange system; and WHEREAS, the timing of the project is critical in that the American Recovery and Reinvestment Act has provided funding to the State of Alaska for projects that are shovel ready; and WHEREAS, the City oC Seward seeks to obtain the necessary financial assistance to complete the necessary electrical upgrades by way of obtaining a loan from the State of Alaska, Department of Enviromnental Conservation's (ADEC) Alaska Clean Water Fund. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City of Seward is hereby committing to the State ofAlaska (ADEC), its intent to fund the $278,000 project, subject to receiving the loan described below, with the additional details of the project funding to be determined at a future time. Section 2. The City Manager is authorized to apply for a loan in the amount of $278,000 from the State of Alaska Department of Environmental Conservation, Clean Water Fund, for the wastewater improvements known as LiR Station #3 Electrical Upgrade Project. Section 3. The City Manager is hereby authorized to execute any and all documents that may be necessary to reflect the $278,000 loan from ADEC, the teens of its repa}nnent over 5 years at a rate of interest equal to 1.5% subject to annual appropriation, including but not limited to an agreement for the loan and a promissory note. Section 4. This resolution shall take affect immediately upon its adoption. CITY OF SEWARD, ALASKA RESOLUTION 2009-047 PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska, this 8`t' day of.lune, 2009. THE CITY OF SF,WARD, ALASKA Bob Valdatta Scnior Councilmembcr AYES: Bardarson, Kellar, Smith, Keil, Valdatta NOES: None ABSENT: Dunham, Corbridgc ABSTAIN: None ATTF,ST: _\ Jcan Lewis C[ty Clerk ~~~q~~xe±,aies- ~ ,. eye' ~ ~~ k ~ ' ~~~.. (City Seal) •>'S~ ~;'. °~ n +i V d ~ e v i r ~ s ~ _. a(~ -~ O M ,Y J~ ss®e.,,..~.n+tx Council Agenda Statement Meeting Date: June 8, 2009 To: Phillip Oates, City Manager ~~ From: W.C. Casey, Puhlic Works Director Agenda Item: ADEC Loan Application BACKGROUND & JUSTIFICATION: The Public Works staff (Wastewater Department) received funding in the amount of $57,500 from the Kenai Peninsula Borough in 2003 for repair and upgrades to Lift Station #3. These repairs were needed as a result of flooding issues related to the 2002 flooding events at the Lowell Creek Outfall. Staff has tnadc a tremendous effort nl keeping this facility in good working order. An additional appropriation from the wastewater fund in the amount of $90,000 had also been appropriated from wastewater reserves to fund the purchase and uistallation of a stand-by generator. In concert with the repairs and generator installation, an addition was built to house the generator unit, the building was re-roofed, and other minor repairs were implemented. As repairs and equipment have been made and added to this facility, the need for an electrical upgrade has become apparent. Staff implemented a plan, and contracted with CRW Engineering to design the necessary electrical upgrade that is necessary for accommodating the generator and air exchange system. The engineering estimate for the necessary electrical upgrades was $278,000. Staffrecommends that authorization be granted to enter into a loan agreement with ADEC for $278,000. It looks promising that $250,000 ofthe loan could be "forgiven" with ARRA moneypassed through the State of Alaska Clean Water Fund. The loan amount ($278,000) would be for a,5 year period at an interest rate of 1.5°/u. INTENT: Authorize the City Manager to execute a loan agreement with the State of Alaska Department of Enviromnental Conservation for an amount not to exceed $278,000. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: Appropriate funds from the wastewater fund account 703-0000-3071-XXXX, to be reimbursed in part from ADEC loan proceeds provided the City s current loan application is approved and establish the #3 Lift Station Electrical Upgrade Project. Approved by Finance Department ATTORNEY REVIEW X RECOMMENDATION: City Council approve Resolution 2009 authorizing the City Manager to appropriate $278,000 from the wastewater fund account no. 703-0000-3071-XXXX., to be reimbursed in part from ADEC loan proceeds provided the City's current loan application is approved.