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HomeMy WebLinkAboutRes2012-089 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2012 -089 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, STATING AN INTENT TO FUND $575,000 FOR THE LOWELL CANYON WATER TANK REFURBISHMENT PROJECT SUBJECT TO RECEIVING A LOAN FOR THAT AMOUNT FROM THE ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION DRINKING WATER FUND, AUTHORIZING A LOAN APPLICATION WITH THE ADEC DRINKING WATER FUND AND AUTHORIZING THE CITY MANAGER TO ACCEPT A LOAN OFFER FROM THE ADEC DRINKING WATER FUND WITH PAYMENTS SUBJECT TO BI- ANNUAL APPROPRIATION WHEREAS, in 2011 City staff received an engineering report that identified several issues necessitating the refurbishment of the 400 thousand gallon Lowell Canyon Water Tank; and WHEREAS, in 2012 Staff completed and submitted the required questionnaire to compete for loan monies being offered by the ADEC Drinking Water Fund; and WHEREAS, this project was placed on the point source funding priority planning list for fiscal year 2012; and WHEREAS, as the end of the fiscal year approaches, loan applications can be submitted for projects that are on the planning priority list and will be funded on the basis of first come first serve; and WHEREAS, the City of Seward seeks to obtain the necessary financial assistance to complete the Lowell Canyon Water Storage Tank Refurbishment Project by way of obtaining a loan from the ADEC 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 $575,000 project, subject to receiving the loan described below. Section 2. The City Manager is authorized to apply for a loan in the amount of $490,000 from the Alaska Department of Environmental Conservation Drinking Water Fund for the water system improvement known as Lowell Canyon Water Tank Refurbishment Project. Section 3. The City Manager is hereby authorized to execute any and all documents that may CITY OF SEWARD, ALASKA RESOLUTION 2012 -089 be necessary to reflect the $575,000 loan from ADEC, the terms of its repayment 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. 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 26 day of November, 2012. THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: Valdatta, Keil, Shafer, Terry, Seaward NOES: None ABSENT: Bardarson, Casagranda ABSTAIN: None ATTEST: 1 ��(I�.� (/ Johanna Kinn- , CMC ity Clerk G . • (City Seal) �, •. • SEAL I • . : t • �' • ••.. 1. • v- P'•. f Agenda Statement , A of set,. . q, Meeting Date: November 26, 2012 c' -t�� • To: City Council Through: City Manager Jim Hunt From: Public Works Director William Casey Agenda Item: Intent to fund $575,000 for the Lowell Canyon Water Tank Refurbishment Project, subject to receiving an Alaska Department of Environmental Conservation Drinking Water Fund Loan in that amount, authorizing a loan application with ADEC Alaska Drinking Water Fund and authorizing the City Manager to accept the loan offer. BACKGROUND & JUSTIFICATION: In March of 2011, quotes were solicited from several engineering firms to inspect the 400,000 gallon and 200,000 gallon Lowell Canyon Water Tanks and submit a detailed report of the findings. Wince, Corthell and Brice were determined to be the most qualified, responsive and responsible firm to respond to the request for quote. Several months after the inspection, a detailed report was submitted to City staff. In the report, severe enough damage was documented, that Wince, Corthell and Brice recommended taking the 200,000 gallon tank out of service, and repairing the 400,000 tank. In February of 2012 a questionnaire was submitted to the Alaska Department of Environmental Conservation to compete for a highly sought after Drinking Water Fund Loan for repair of the 400,000 gallon storage tank. The project was subsequently place on the priority planning list making the funds unavailable until at least the fall of 2012. The City now has the opportunity to submit a loan application to the ADEC Drinking Water Loan Program, so when funds become available the City can readily accept the loan offer and begin the process of refurbishment of the 400,000 gallon water storage tank. INTENT: Secure funding when it becomes available for the Lowell Canyon Water Tank Refurbishment Project through the Alaska Department of Environmental Conservation, Drinking Water Fund Loan Program. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): page 27 section 3.7.3.1 X 2. Strategic Plan (document source here): page 10 X 3. Other (list): Wince, Corthell and Brice Engineering Report X l ay FISCAL NOTE: The City would have to commit to a $575,000 loan from the State of Alaska Department of Environmental Conservation, Drinking Water Fund, for adequate funding of the project. The terms of repayment are for a period of 20 years at an interest rate of 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: ,gL. ATTORNEY REVIEW: Yes No X RECOMMENDATION: The City of Seward City Council approve funding in the amount of $575,000 for the 400,000 gallon Lowell Canyon Water Tank Refurbishment Project, subject to receiving an ADEC Loan for that amount, authorizing a loan application with ADEC Drinking Water Loan Fund Program and authorizing the City Manager to accept the loan offer from ADEC. \\