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HomeMy WebLinkAboutRes2009-096Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2009-096 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REVOKING RESOLUTION 2009-089 AND STATING AN INTENT TO FUND $4,060,000 FOR THE NORTH SEWARD WATER STORAGE TANK & PUMPING FACILITY PROJECT SUBJECT TO RECEIVING A LOAN IN THAT AMOUNT, AUTHORIZING A LOAN APPLICATION WITH THE ALASKA DRINKING WATER FUND AND AUTHORIZING THE CITY MANAGER TO ACCEPT A LOAN OFFER FROM THE ALASKA DRINKING WATER FUND WITH PAYMENTS SUBJECT TO BI-ANNUAL APPROPRIATION WHEREAS, the Seward City Council in its 2009 Capital Budget identified the North Seward Water Storage Tank & Pumping Facility as being an infrastructure priority; and WHEREAS, the project is at 35°Io design (Phase I, Water Main Intertie, at l00% design); and WHEREAS, the City of Seward seeks to obtain the necessary financial assistance to complete the North Seward Water Storage Tank & Pumping Facility by way of obtaining a loan from the State of Alaska, Department of Environmental Conservation's Alaska Drinking Water Fund; and WHEREAS, the City intends to repay the loan over a period of 20 years from fees paid by water system users or available grant funds; and WHEREAS, payments by the City will be subject to appropriation. 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 of Alaska (ADEC), its intent to fund the $4,060,000 water improvement project known as North Seward Water Storage Tank & Pumping Facility (the "Project") and related capital improvements, 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 hereby authorized to apply for a loan in the amount of $4,060,000 from the State of Alaska Department of Environmental Conservation, Drinking Water Fund, for the Project. Section 3. The City Manager is hereby authorized to execute any and all documents that may be necessary to reflect the $4,060,000 loan from ADEC, the terms of its repayment over 20 years at a rate of interest equal to 1.5°Io subject to bi-annual appropriations, including but not limited to an agreement for the loan, provided that any promissory note shall be signed by the Mayor. CITY OF SEWARD, ALASKA RESOLUTION 2009-096 Section 4. According to Chapter 11 of the Seward Charter this resolution shall take effect 30 days following adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 12`" day of October, 2009. THE CITY OF SEWARD, ALASKA Clark Corbridge, Mayor AYES: Valdatta, Bardarson, Dunham, Keil, Smith, Corbridge NOES: ABSENT: ABSTAIN: VACANT: One ATTEST: ,~-~`=~~ Jea: Lewis, C~VI ~ w,~aammcsa.v~rr City Clerk ~~~ ~~~ ~„°~~ ~~~,~~.y a a a p ~ ~ ~' (City Seal) H ~~ r ~ ~ 1..,.= .s_J m ~ '-°°tti ~° T q ry y..~ ~ ~I s '','rs. ,, ~ a ~~°d4~ '~~w~wsuasm~ '~ !,~ Council Agenda Statement Meeting Date: October l2, 2009 Through: Phillip Oates, City Manager ~.-~°-~~ From: W.C. Casey, Public Works Director Agenda Item: North Seward Water Storage Tank & Pumping Facility BACKGROUND & JUSTIFICATION: In 2000, the Design Study Report completed by CRW, identified as a necessary improvement to the City of Seward water system, a 520,000 gallon water storage tank. The proposed site for the new water storage tank was the Forest Acres area, at an elevation that matched the Lowell Canyon tanks. Since that time (2000), City Staffwith the assistance of CRW Engineering, have continued to pursue funding for this project. The project is currently at 35% design. On two separate occasions, the City Staff has submitted an application with the ADEC Municipal Matching Grant Program. Staff has continued their et~orts to secure funding for this critical infrastructure. The new storage tank remains in the budget as a priority project. The availability of l .5% interest, ADEC loan dollars, makes this water storage tank project feasible. The North Seward Water Storage Tank & Pumping Facility is at 35% design, while (Phase I) the Water Main Intertie is at 100% design. Moving forward with Phase I will enable staffto complete the necessary remaining design work, gain site control for the tank and finish this important water system improvement. INTENT: Secure available funding for the North Seward Water Storage Tank & Pumping Facility through the Alaska Department of Environmental Conservation, Alaska Drinking Water Fund, and Loan Program. .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: ATTORNEY REVIEW: Yes FISCAL NOTE: Approved by Finance Department: RECOMMENDATION: City Council approve Resolution 2009--CKj(~, stating an intent to fund $4,060,000 for the "North Seward Water Storage Tank & Pumping Facility" project subject to receiving a loan in that amount, authorizing a loan application with the Alaska Drinking Water Fund and authorizing the City Manager to accept a loan offer from the Alaska Drinking Water Fund with payments subject to appropriation. 49