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Home My WebLink AboutRes2010-070 Sponsored by: Oates iro CITY OF SEWARD, ALASKA RESOLUTION 2010 -070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA SUPPORTINGTHE SEWARD COMMUNITY LIBRARY MUSEUM PROJECT, AUTHORIZING THE CITY MANAGER TO SUBMIT A TIER 2 FULL PROPOSAL TO RASMUSON FOUNDATION REQUESTING NOT MORE THAN $1.5M, AND ACKNOWLEDGING THE INTENT TO BOND IN AN AMOUNT NOT TO EXCEED $2.5M FOR THE CONSTRUCTION OF THE SEWARD COMMUNITY LIBRARY MUSEUM WHEREAS, the City of Seward and the Seward Community Library Building Committee, with continued support of the Council, have been working to raise funds to build a new facility to house the library and the museum; and WHEREAS, on May 21, 2010 the City of Seward received an invitation from Rasmuson Foundation to submit a full proposal; and WHEREAS, in November of 2009 the City of Seward submitted a Letter of Inquiry to Rasmuson Foundation, a prerequisite to submitting a full proposal for Rasmuson Foundation's Tier 2 Grant Program; and WHEREAS, on May 21, 2010 the City of Seward received an invitation to submit a full proposal; and WHEREAS, the proposed funding plan includes $4.7M secured from the State of Alaska, $2.6M in grant applications and foundation awards (NEH, Rasmuson etc.), up to $2.5M in City of Seward General Obligation Bond funding, and $500,000 in capital campaign contributions totaling $10.3M; and WHEREAS, the proposal requires a resolution of support from Council and a description of the level of funding commitment from the community for the project; and WHEREAS, the Seward City Council desires to signify its intent to issue general obligation bonds in an amount not to exceed $2.5 million for the purpose of planning, designing, constructing, and equipping a new library/museum building, subject to identification of an appropriate source of revenue for bond repayment, and subject to approval by the Alaska Municipal Bond Bank; and WHEREAS, the request to Rasmuson will be for not more than $1.5M; and CITY OF SEWARD, ALASKA RESOLUTION 2010 -070 WHEREAS, city staff and a grant writer whose services have been secured through the Seward Community Library Museum Building Committee are working on compiling the full proposal; and WHEREAS, the deadline to submit the proposal is August 16, 2010 to be considered at the Foundation's November meeting. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to submit a Tier I Rasmuson Foundation request for not more than $1.5M. Section 2. The Seward City Council desires to signify its intent to issue general obligation bonds in an amount not to exceed $2.5 million for the purpose of planning, designing, constructing, and equipping a new library /museum building. Section 3. Bond issuance is subject to identification of an appropriate source of revenue for bond repayment, and subject to approval by the Alaska Municipal Bond Bank. Section 4. This resolution to take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26 day of July, 2010. THE CIT SEWARD, ALASKA "fil 'Willard E. unham, Mayor AYES: Valdatta, Bardrson, Smith, Shafer, Dunham NOES: Amberg ABSENT: Keil je ABSTAIN: None CITY OF SEWARD, ALASKA RESOLUTION 2010 -070 ATTEST: Ale Je Lewi Ci Clerk •• 6 �s�ss�s��• SEIv '• #, (City Seal) **A:4 ',< 4 • •• + 'n y •• • • • Council Agenda Statement Meeting Date: July 26, 2010 Of set Through: City Manager Phillip Oates u 1- a From: Patricia Linville, Library Director q�ASr�P Agenda Item: Resolution 2010- 01° supporting the Seward Community Library Museum Project and authorizing submission of a Tier 2 Full Proposal to Rasmuson Foundation requesting not more than $1.5M and Acknowledging the Intent to Bond in an amount not to exceed $2.5M for the construction of the Seward Community Library Museum. BACKGROUND & JUSTIFICATION: The City of Seward and the Seward Community Library Building Committee, with the continued support of the Council, have been working to raise funds to build a new facility to house the library and the museum. Milestones in the project progress include City purchase of a designated site, completion of 35% design, hiring of project management, passing a local general obligation bond in October 2009 and an appropriation of $4.7M for construction from the State of Alaska on April 3, 2010. In November of 2009 the City of Seward submitted a Letter of Inquiry to Rasmuson Foundation. This letter is a prerequisite to submitting a full proposal for Rasmuson Foundation's Tier 2 Grant Program. The intent of the letter is to describe the proposed project sufficiently enough to enable the Foundation to decide whether they will accept a full proposal. On May 21, 2010 the City of Seward received an invitation to submit a full proposal. This proposal requires a resolution of support from Council and a description of the level of funding commitment from the community for the project. A work session with Council was held on June 29, 2010 to discuss funding options for the library museum project. The discussion materials are attached. City Administration was directed to bring to Council a resolution signifying its intent to issue general obligation bonds in an amount not to exceed $2.5 million for the purpose of planning, designing, constructing, and equipping the new library museum building. This bond will be subject to the identification of an appropriate source ofrevenue for bond repayment and subject to approval by the Alaska Municipal Bond Bank. The proposed funding plan includes $4.7M secured from the State of Alaska, $2.6M in grant applications and foundation awards (NEH, Rasmuson etc.), up to $2.5M in City of Seward General Obligation Bond funding, and $500,000 in capital campaign contributions totaling $10.3M. The request to Rasmuson will be for not more than $1.5M. 14,9 City staff and a grant writer whose services have been secured through the Seward Community Library Museum Building Committee are working on compiling the full proposal. The deadline to submit the proposal is August 16, 2010 to be considered at the Foundation's November meeting. 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. FISCAL NOTE: The total estimated cost of the project is $10,297,560 as of June 29, 2010. As discussed in the June 29, 2010 library/museum work session with the City Council, the construction of a new library/museum with a City contribution toward capital of $2.5 million, results in an annual capital cost for bond repayment of approximately $216,000, plus additional annual operating and maintenance costs estimated at $261,000 over the current 2010 library budget, for a total increased annual cost of $477,000. To cover this entire cost with an increase in sales tax would require an additional 0.53% sales tax increase year - round. To cover this entire cost with an increase in property tax would require an additional 1.59 mills of property tax (the current property tax mill rate is 3.12 mills). The administration will seek to cover the entire cost of this project through a secured revenue source in order to obtain capital financing for the project, and to ensure that this project does not adversely impact the City's existing programs and services. Approved by Finance Department: .a14449,Z) *Az iu-eliN RECOMMENDATION: Council approve Resolution 2010- b1 authorizing the City Manager to submit a Tier 2 Full Proposal to Rasmuson Foundation requesting not more than $1.5M and acknowledging Council intent to bond not to exceed $2.5M for the construction of the Seward Community Library Museum.