HomeMy WebLinkAboutRes2012-087CITY OF SEWARD, ALASKA
6 " RESOLUTION 2012 -087
Sponsored by: Hunt
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT A GRANT
IN THE AMOUNT OF $2,508,000 FROM THE ALASKA DEPARTMENT OF
ENVIRONMENTAL CONSERVATION MUNICIPAL MATCHING GRANT
PROGRAM TO CONSTRUCT THE NORTH SEWARD WATER STORAGE
TANK, AGREEING TO THE TERMS AND CONDITIONS OF THE GRANT
AGREEMENT, AND AUTHORIZING $170,000 FOR STATE GRANT
ADMINISTRATION SURCHARGE FEES AND APPROPRIATING FUNDS
WHEREAS, the city has been pursuing funding necessary to construct a 600,000 gallon
water storage tank and pumping facility in an effort to increase necessary chlorine contact time and
buffer demand for water during periods of peak tourism and high industrial usage; and
WHEREAS, in 2010, the city was successful in acquiring grant monies through the
American Reinvestment and Recovery Act sufficient to complete Phase One of The North Seward
Water Storage Tank Project: Waterline Intertie; and
WHEREAS, an additional $1,991,999 in state appropriated funds has been identified and
approved as the required match for this grant; and
WHEREAS, in August of 2011, the City of Seward through the State of Alaska Department
of Environmental Conservation submitted questionnaires seeking funding for the completion of the
North Seward Water Storage Tank and Pumping Facility Phase 11; and
WHEREAS, in September of 2011 the Seward City Council designated the North Seward
Water Storage Tank and Pumping Facility Phase II as the city's number one local state funding
priority for fiscal year 2013; and
WHEREAS, the city successfully procured an additional $2,508,000 in funding through the
Alaska Department of Environmental Conservation Municipal Matching Grant Program; and
WHEREAS, the cost estimate submitted with the grant application requested the maximum
amount allowed for state grant administration surcharge fees totaling $170,000 or 5% of the total
grant award; and
WHEREAS, the total state grant administration surcharge fee is $340,000 or 10% of the total
grant award; and
WHEREAS, in order to properly account for these costs, funding in the amount of $170,000
CITY OF SEWARD, ALASKA
RESOLUTION 2012 -087
must be charged to the project; and
WHEREAS, the grant will not cover the full cost of administrative fees, so funding for the
state grant administrative surcharge will come from the Water Enterprise Fund reserve account; and
WHEREAS, accepting the terms and conditions of the grant agreement, as well as, the
responsibility to operate and maintain the proposed water quality utility improvements, as attached
hereto in substantial form, is required to accept the total award amount of $2,508,000 from the
Alaska Department of Environmental Conservation Municipal Matching Grant Program; and
WHEREAS, authorizing the City Manager to agree to the terms and conditions of the grant
agreement, as well as the responsibility to operate and maintain the proposed water quality utility
improvements thus accepting the total award amount of $2,508,000 is in the best interest of the city
by allowing the city to utilize the funds to invest in critical infrastructure, follow regulations set forth
by the Alaska Department of Environmental Conservation, and buffer demand related to tourism,
commercial usage and the high transient population observed in Seward during the summer months.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to accept the terms and conditions of the
grant agreement, accept responsibility to operate and maintain the proposed water quality utility
improvements, agree to the terms and conditions of this grant offer, enter into a grant agreement with
the Alaska Department of Environment Conservation Municipal Matching Grant Program and accept
the total award amount of $2,508,000.
Section 2. The state grant administration surcharge fee in the amount of $170,000 is hereby
accepted for the project.
Section 3. Total project funds in the amount of $2,848,000 are appropriated as follows: 1)
$2,508,000 from account no. 709 - 7092 - 4680 -0200 to the Infrastructure Costs Fund account no. 709-
7092 -5926; and 2) $170,000 from the Water Enterprise Fund reserve account no. 701- 0000 -3071-
0101 to the General Fund administrative fee revenue account no. 101- 0000 - 4410 -0410.
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.
CITY OF SEWARD, ALASKA
RESOLUTION 2012 -087
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THE CITY OF SEWARD, ALASKA
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AYES:
NOES:
ABSENT:
ABSTAIN
ATTEST:
Valdatta, Keil, Shafer, Terry, Seaward
None
Bardarson, Casagranda
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Agenda Statement
Meeting Date: November 26, 2012
To: City Council
Through: City Manager Jim Hunt
From: Public Works Director William Casey
Agenda Item: Accepting a grant in the amount of $2,508,000 from the Alaska Department of
Environmental Conservation Municipal Matching Grant Program to construct the
North Seward Water Storage Tank, agreeing to the terms and conditions of the grant
agreement, authorizing $170,000 for State grant administration surcharge fees and
appropriating funds
BACKGROUND & JUSTIFICATION:
In 2000, the Design Study Report completed by CRW, identified a 600,000 gallon water storage tank as a
necessary improvement to the City of Seward water system. 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, city staff
with the assistance of CRW Engineering, has continued to pursue funding for this project. The project is
currently at 35% design. On three separate occasions, city staff submitted an application with the ADEC
Municipal Matching Grant Program.
In 2011, city staff worked collaboratively with CRW Engineering and submitted another questionnaire with
the ADEC Municipal Matching Grant Program. Unlike previous submissions, the city successfully acquired
$2,508,000 through the MMGP program. In addition to the funding acquired through the MMGP program,
Seward also received a state appropriation of $1,990,000 to aid in the success of this project. The state
appropriation is enough to cover the required 30% match and allow for a contingency fund.
The cost estimate submitted with the grant questionnaire and application requested the maximum dollar
amount allowed for grant administration surcharge fees totaling $170,000 or 5% of the total project cost.
The actual overhead grant administration cost totals $340,000 or 10% of the total grant award. In order to
properly account for these costs, funding in the amount of $170,000 must be charged to the project. Since
the grant will not cover the full cost of the grant administration fees, funding for administrative costs will
come from the Water Enterprise Fund reserve account.
INTENT:
Authorizing the City Manager to accept the terms and conditions of the grant agreement and secure grant
funding I the amount of $2,508,000 from the Alaska Department of Environmental Conservation Municipal
Matching Grant Program. Accepting the responsibility to operate and maintain the proposed water utility
improvements and appropriate funds for administrative fees that are not covered by the grant award.
CONSISTENCY CHECKLIST:
Yes
No
N/A
Comprehensive Plan (document source here): Page 27: Continue to
1.
upgrade and expand utilities to meet existing needs and encourage future
X
development
FISCAL NOTE
The Alaska Department of Environmental Conservation Municipal Matching Grant Program funds a
maximum of 5% of the total grant award for costs related to grant administration. The actual costs related to
grant administration is 10% of the total grant award. To properly account for the total costs of this project, it
is necessary to charge those administrative fees to the project in the amount of $340,000. Since the grant
will not cover the full cost of administrative fees, funding for administrative fees will be appropriated to the
General Fund administrative fee revenue, account no. 10 1 -0000-4410-0410, from the Water Enterprise Fund
reserve account no. 701 - 0000 - 3071 -0101 in the amount of $170,000.
Approved by Finance Department: A�J 3
ATTORNEY REVIEW Yes No X
RECOMMENDATION
City Council approve Resolution 2012 - �� authorizing the City Manager to accept the terms and
conditions of the grant agreement, accept responsibility to operate and maintain the proposed water quality
utility improvements, enter into a grant agreement with the Alaska Department of Environmental
Conservation Municipal Matching Grant Program and accept the total award amount of $2,508,000, as well
as, authorizing $170,000 for grant administration fees and appropriate funds.
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Strategic Plan (document source here): Page 18: Promote a Safe
X
2.
Community
3.
Other (list): Design Study Report completed by CRW in 2000
X
FISCAL NOTE
The Alaska Department of Environmental Conservation Municipal Matching Grant Program funds a
maximum of 5% of the total grant award for costs related to grant administration. The actual costs related to
grant administration is 10% of the total grant award. To properly account for the total costs of this project, it
is necessary to charge those administrative fees to the project in the amount of $340,000. Since the grant
will not cover the full cost of administrative fees, funding for administrative fees will be appropriated to the
General Fund administrative fee revenue, account no. 10 1 -0000-4410-0410, from the Water Enterprise Fund
reserve account no. 701 - 0000 - 3071 -0101 in the amount of $170,000.
Approved by Finance Department: A�J 3
ATTORNEY REVIEW Yes No X
RECOMMENDATION
City Council approve Resolution 2012 - �� authorizing the City Manager to accept the terms and
conditions of the grant agreement, accept responsibility to operate and maintain the proposed water quality
utility improvements, enter into a grant agreement with the Alaska Department of Environmental
Conservation Municipal Matching Grant Program and accept the total award amount of $2,508,000, as well
as, authorizing $170,000 for grant administration fees and appropriate funds.
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