HomeMy WebLinkAboutRes2011-113 Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -113
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, STATING AN INTENT TO FUND $2,308,000 FOR THE
NORTH SEWARD WATER STORAGE TANK & PUMPING FACILITY
PHASE II 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 2011 Capital Budget identified the North
Seward Water Storage Tank & Pumping Facility Phase II as being an infrastructure priority; and
WHEREAS, the Phase 1: Water Main Intertie was completed using grant funding in
2010; and
WHEREAS, the project is at 35% design; and
ham WHEREAS, City Staff is working to pursue site control; 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.
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 $4,300,000 project, subject to receiving the loan described below, with
additional funding in the amount of $1,992,000 from Designated Legislative Grant # 10 -DC -024.
Section 2. The City Manager is authorized to apply for a loan in the amount of
$2,308,000 from the State of Alaska Department of Environmental Conservation, Drinking
Water Fund, for the water improvement known as North Seward Water Storage Tank &
Pumping Facility.
Section 3. The City Manager is hereby authorized to execute any and all documents that
may be necessary to reflect the $2,308,000 loan from ADEC, the terms of its repayment over 20
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -113
mai
years at a rate of interest equal to 1.5% subject to bi- annual appropriations, including but not
limited to an agreement for the loan and a promissory note.
Section 4. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12` day of
December, 2011.
THE CITY OF SEWARD, ALASKA
David d, Ma r
AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward
NOES: None
ABSENT: None magi
ABSTAIN: None
ATTEST:
y ity h anna Kinney, CMC,
Clerk
(City Seal)
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M u
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4'4164S> s :.
Council Agenda Statement
Meeting Date: December 12, 2011
4 o se
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To: Jim Hunt, City Manager c y
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From: W.C. Casey, Public Works Director q P
Agenda Item: North Seward Water Storage Tank Loan
$2,308,000
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 Staff with the assistance of CRW Engineering, have continued to pursue
funding for this project. The project is currently at 35% design. On three separate occasions, the City
Staff has submitted an application with the ADEC Municipal Matching Grant Program.
Staff has continued their efforts to secure funding for this critical infrastructure. The new storage
tank remains in the budget as a priority project. The availability of 1.5% 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 was completed in 2010.
City Staff working to pursue site control.
INTENT:
Secure available funding for the North Seward Water Storage Tank & Pumping Facility Phase II
through the Alaska Department of Environmental Conservation, Alaska Drinking Water Fund, and
Loan Program.
FISCAL NOTE:
The $4,300,000 reflects the total project cost. The City received funding in the amount of
$1,992,000 from Designated Legislative Grant # 10 -DC -024, Dredging Cruise Ship Berthing Basin
Approaches, for building a new water storage tank and distribution system. The City would have to
commit to a $2,308,000 loan from the State of Alaska Department of Environmental Conservation,
Drinking Water Fund, for adequate funding. The terms of repayment are over 20 years at a rate of
interest equal to 1.5% subject to bi- annual appropriations, including but not limited to an agreement
for the loan and a promissory note.
Approved by Finance Department:
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
City Council approve Resolution 2011- 113 stating an intent to fund $4,300,000 for the "North
Seward Water Storage Tank & Pumping Facility" project subject to receiving a loan in the amount of
$2,308,000, 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
annual appropriation.