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
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Agenda Statement
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Meeting Date: November 26, 2012 c' -t��
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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.
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