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HomeMy WebLinkAboutRes2012-058 Sponsored by: Hunt CITY OF SEWARD, ALASKA i ""' RESOLUTION 2012 -058 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, STATING AN INTENT TO FUND $400,000 FOR THE MAPLE STREET SEWER LINE PROJECT SUBJECT TO RECEIVING A LOAN IN THAT AMOUNT, AUTHORIZING A LOAN APPLICATION WITH THE ALASKA CLEAN WATER FUND AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A LOAN AGREEMENT WITH THE ALASKA DRINKING WATER FUND WITH ANNUAL PAYMENTS NOT TO EXCEED $24,000, AND SUBJECT TO ANNUAL APPROPRIATION WHEREAS, in 2010 city staff identified several issues necessitating the addition of 850 linear feet of gravity sewer main on Maple Street; and WHEREAS, in 2011 staff completed and submitted the required questionnaire to compete for loan monies being offered by the Alaska Clean Water Fund; and WHEREAS, this project was placed on Alaska's point based funding priority planning list for fiscal year 2012; and ism WHEREAS, the City of Seward seeks to obtain the necessary financial assistance to complete the Maple Street Sewer Main Extension by obtaining a loan from the State of Alaska, Department of Environmental Conservation's 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 hereby confirms its commitment to the State of Alaska (ADEC), and its intent to fund a $400,000 maple street sewer extension project, subject to receiving a loan from the ADEC. Section 2. The City Manager is authorized to apply for a loan in the amount of $400,000 from the State of Alaska Department of Environmental Conservation, Clean Water Fund, for the sewer system improvement known as Maple Street Sewer Main Extension. Section 3. The City Manager is hereby authorized to execute any and all documents that may be necessary to reflect the $400,000 loan from ADEC, the terms of its repayment over 20 years at a rate of interest equal to 1.5% subject to annual appropriations, including but not limited to an agreement for the loan and a promissory note. Annual loan payments shall not exceed $24,000. Section 4. The City Manager is directed to report to the City Council a payment schedule CITY OF SEWARD, ALASKA RESOLUTION 2012 -058 and final loan amount before execution. Section 5. This resolution shall take effect thirty (30) days following adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23` day of July, 2012. THE CITY OF SEWARD, ALASKA .1 Abwilj Dam Seawa • , ayor AYES: Bardarson. Keil, Shafer, Casagranda, Seaward NOES: None ABSENT: Terry, Valdatta ABSTAIN: None ATTEST: (&/L ;OAK.. ohanna Kinney, CMC ity Clerk (City Seal) *'% ................. ��'•.. SEAL • : • ���� OF AV;0•4 Council Agenda Statement r pFse Meeting Date: July 23, 2012 y r� Through: City Manager, Jim Hunt 14-470-1* • From: Public Works Director, W.C. Casey Agenda Item: Intent to fund $400,000 for the Maple Street Sewer Main Project, subject to receiving an Alaska Department of Environmental Conservation Loan for that amount, authorizing a loan application with the Alaska Clean Water Fund and authorizing the City Manager to enter into a loan agreement with the ADEC. BACKGROUND & JUSTIFICATION: In the past twelve years there have been two water system evaluations and two wastewater system evaluations by two separate engineering firms. The purpose of the water and wastewater system evaluations performed in 2000 (CRW Engineering) was to investigate sizing and routing requirements for water and sewer infrastructure in the Gateway and Forest Acres subdivisions, as well as evaluating other water /wastewater components. These two subdivisions are the largest undeveloped areas left on the west side of Resurrection Bay and could provide substantial growth for the City if water and wastewater services could be provided. To move forward with the Water /Wastewater system maintenance and development of the Capital Improvement Program that was delineated and recommended by the 2000 study, the City contracted with another engineering firm in 2009 (M.L. Foster & Assoc.). M.L. Foster was tasked with identifying areas that needed corrective actions and presenting their recommendations in a report (Water Compliance Study). M.L. Foster's study included an "Implementation Plan" that documents background information and results from field investigations, evaluates specific elements of the wastewater system, permit renewal processes, identifies trouble spots, recommends improvements and provides a summary of priority projects. City staff utilized both of these studies to create a master project list and identify potential funding sources. The Maple Street Sewer Main extension was placed on the master project list because of several issues outlined in both reports and staff observations. If the City is successful in procuring funding it will construct 850 linear feet of sewer main, which will serve lots that are currently subdivided, as well as a large un- subdivided parcel. Present day status would require on -site wastewater treatment systems. The sewer main extension will also provide much needed redundancy for the Long Term Care Facility and the Afognak Subdivision development. INTENT: Secure available funding for the Maple Street Sewer Main Extension through the Alaska Department of Environmental Conservation, Clean Water Fund Loan Program. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan (document source here): Volume 1 PG 19, 22 and X 27 2. Strategic Plan (document source here): Page 10 X 3. Other (list): 2011 M.L. Foster Wastewater System Evaluation X FISCAL NOTE: This loan requires the City commit to repayment of $400,000 from the State of Alaska Department of Environmental Conservation, Clean Water Fund. The terms of repayment are over 20 years at a rate of interest equal to annual appropriations, resulting in annual payments of approximately $23,400. Approved by Finance Department: j,2:3tit ATTORNEY REVIEW: Yes X No RECOMMENDATION: The City of Seward City Council approve funding in the amount of $400,000 for the Maple Street Sewer Main Line Extension Project, subject to receiving an ADEC Loan for that amount, authorizing a loan application with the Alaska Clean Water Fund and authorizing the City Manager to enter into a loan agreement with the ADEC.