HomeMy WebLinkAboutRes2010-024 Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2010 -024
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD ALASKA, AUTHORIZING THE CITY MANAGER
TO SUBMIT A GRANT APPLICATION TO THE STATE OF
ALASKA DEPARTMENT OF COMMERCE, COMMUNITY
AND ECONOMIC DEVELOPMENT PUBLIC LIBRARY
CONSTRUCTION AND MAJOR EXPANSION MATCHING
GRANT PROGRAM REQUESTING NOT MORE THAN
$5,000,000 FOR THE LIBRARY MUSEUM PROJECT
WHEREAS, the City of Seward has been working on a plan to build a library museum since
2003; and
WHEREAS, the citizens of Seward favored the issuance of $5 million in general obligation
bonds to construct and library /museum, contingent on the remainder of project costs being funded
through grants and other revenues, but rejected an advisory vote asking for approval to increase the
sales tax by one -half percent in order to pay for the bonds; and
WHEREAS, the City Administration and the SCLMBC are utilizing $200,000 of the
donated funds to bring the project to 35% design; and
WHEREAS, the library museum project is listed in the 2010 City of Seward State Priorities
for capital projects;
WHEREAS, the total project costs of the library museum are estimated at $10,000,000; and
WHEREAS, AS 14.56.355 established a public library construction and major expansion
matching program administered by the State of Alaska Department of Commerce, Community and
Economic Development; and
WHEREAS, the SCLMBC, City of Seward and other local governments are currently
working with the legislature to get the program funded during the 2010 legislative session; and
WHEREAS, subject to appropriation, the grant shall award not more than 50 percent of the
total proposed grant project costs to eligible applicants; and
WHEREAS, Department of Commerce, Community and Economic Development released
the grant application and guidelines in early February with a deadline for submitting this application
is March 31, 2010; and
WHEREAS, grant request is for an amount not to exceed $5,000,000; and
CITY OF SEWARD, ALASKA
RESOLUTION 2010 -024
WHEREAS, required match may be in the form of unrestricted locally generated
revenue, land or services as stated in the grant application.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Council directs the City Manager to submit a completed application for
Public Library Construction and Major Expansion Matching Grant program through the State of
Alaska Department of Community, Commerce and Economic Development.
Section 2. The grant application will be submitted no later than March 31, 2010 and will be
requested in an amount not to exceed $5,000,000.
Section 3. Any issuance of bonds or appropriation of the City match for this grant will
require future Council approval.
Section 4. This resolution shall take affect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22 day of
March 2010.
THE CITY O..F. SEWARD, ALASKA
Willard E. Dunham, Mayor
AYES: Valdatta, Bardarson, Keil, Amberg, Shafer, Dunham
NOES: None
ABSENT: Smith
ABSTAIN: None
ATTEST:
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Jean Lewis + *0,61
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City Clerk Q ®`"
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COUNCIL AGENDA STATEMENT
Meeting Date: March 22, 2010
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Through: Phillip Oates, City Managei/* " �^ 1
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From: Patricia Linville, Library Director
Agenda Item: A Resolution to Authorize the City Manager to submit a grant
application for the State of Alaska Department of Commerce,
Community and Economic Development Public Library
Construction and Major Expansion Matching Grant Program
Requesting not more than $5,000,000 for the Library Museum
Project
BACKGROUND & JUSTIFICATION:
Since 2003, the City of Seward has been working on a plan to build a library museum. The
Seward Community Library Museum Building Committee (SCLMBC) was established and land
was purchased for the project in 2006. The SCLMBC has raised over $1,000,000 in cash and in-
kind donations. The community voted favorably for a $5m General Obligation bond in October
2009 but rejected an advisory vote asking for approval to increase the sales tax by one -half
percent in order to pay for the bonds. Currently, the City Administration and the SCLMBC are
utilizing $200,000 of the donated funds to bring the project to 35% design. The library museum
project is listed in the 2010 City of Seward State Priorities for capital projects.
Senate Bill 119 (Chapter 55 SLA 08) was signed into law on June 4, 2008. Section 2 of the bill
(AS 14.56.355) established a public library construction and major expansion matching program.
Many local governments worked to get the legislation passed and are currently working with the
legislature to get the program funded during the 2010 legislative session. The City of Seward
and the SCLMBC has been instrumental in this effort. Subject to appropriation, the department
shall award not more than 50 percent of the total proposed grant project costs to an eligible
applicant as authorized by AS 14.56.355- 14.56.356. The library project costs are estimated at
$10,000,000. This grant request is for not more than $5,000,000.
In anticipation of the receiving funding for the Public Library Construction and Major
Expansion Matching Grant Program, the Department of Commerce, Community and Economic
Development released the grant application and guidelines in early February. The deadline for
submitting this application is March 31, 2010. The SCLMBC grant writer and the City of
Seward library director have been directed to complete the application.
This grant request is for not more than $5,000,000. The required match may be in the form of
unrestricted locally generated revenue, land or services as stated in the grant application.
The successful passage of the $5,000,000 library museum general obligation bond in October
will be cited as the City of Seward's match.
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.
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INTENT:
This resolution requests that Council grant the City Manager authority to submit the Public
Library Construction and Major Expansion Grant application to the Alaska Department of
Community, Commerce and Economic Development.
ATTORNEY REVIEW: No
FISCAL NOTE:
This grant is a matching grant. Total project costs are estimated at $10 million. This grant
application requests $5 million, with the remaining funds to be matched through a combination
of fund raising and /or general obligation bonds. City voters voted in favor of issuing general
obligation bonds for construction of a new library /museum, but rejected the proposed means to
repay those bonds, an increase in the sales tax of 0.5 %. Given the magnitude of funds needed to
cover annual debt service and increased operating costs, if an increase in sales tax is not favored
to support this project, another major revenue source will need to be identified in order to satisfy
requirements needed to obtain bond financing.
Approved by Finance Department /i //0
RECOMMENDATION:
Approve Resolution 2010 -OM authorizing the City Manager to submit the Public Library
Construction and Major Expansion Grant application to the Alaska Department of Community,
Commerce and Economic Development.
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