HomeMy WebLinkAboutRes2004-084
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Sponsored by: Shealy
CITY OF SEWARD, ALASKA
RESOLUTION 2004-84
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, STATING AN INTENT TO FUND $3,500,000
FOR THE PURPOSE OF REPLACING THE THIRD AVENUE
WATER MAIN FROM RAILWAY AVENUE TO PORT AVENUE
SUBJECT TO RECEIVING A LOAN IN THAT AMOUNT,
AUTHORIZING A LOAN APPLICATION WITH THE ALASKA
DRINKING WATER FUND AND AUTHORIZING THE CITY
MANAGER TO ACCEPT A LOAN OFFER FROM THE ALASKA
DRINKING WATER FUND WITH PAYMENTS SUBJECT TO
ANNUAL APPROPRIATION
WHEREAS, the Seward City Council in its 2004 State Legislative Priorities list, designated
the Third Avenue Water Line Upgrade to be the City's number one priority infrastructure project;
and
WHEREAS, the project entails replacement of approximately 7300 feet of 40-45 year-old
asbestos-cement water main on the Seward Highway between Railway and Port Avenues, as well as
replacing the associated service lines, fire hydrants, valves and portions of sidewalks, curbs, and
gutters displaced by the construction; and
WHEREAS, the timing of the project is critical in that the water main is currently located
beneath the Seward Highway which is slated to be resurfaced by the State of Alaska as part of the
Department of Transportation's (DOT) 2005 Mile 0-8 project; and
WHEREAS, coordinating these two projects will provide cost efficiencies for both the City
and the State, and in order for the State DOT to move forward and include the design ofthe water
main relocation project into the scope of the Mile 0-8 project, the City must now commit to funding
its share ofthe project, amounting to $3,500,000; and
WHEREAS, the Water Enterprise Fund does not currently have sufficient reserves to pay for
this project which benefits a majority ofthe users ofthe Water system, and it is the intent ofthe City
Council and the administration that excess general fund revenues be used to repay a low-interest loan
from ADEC; and
WHEREAS, the City of Seward seeks to obtain the necessary financial assistance to
construct the water system improvements by way of obtaining a loan from the State of Alaska,
Department of Environmental Conservation's (ADEC) Alaska Drinking Water Fund.
CITY OF SEWARD, ALASKA
RESOLUTION 2004-84
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 DOT, its intent to
fund the $3,500,000 project, subject to receiving the loan described below, with the exact terms of
project funding to be determined at a future time.
Section 2. The City Manager is authorized to apply for a loan in the amount of$3,500,000
from the State of Alaska Department of Environmental Conservation, Drinking Water Fund, for the
water system improvements known as the Third Avenue Water Main Upgrade.
Section 3. The City Manager is hereby authorized to execute any and all documents that may
be necessary to reflect the $3,500,000 loan from ADEC, the terms of its repayment over 20 years at a
rate of interest equal to 2.5%, subject to annual appropriation, including but not limited to an
agreement for the loan and a promissory note.
Section 4. This resolution shall take effect 30 days following adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 26th
day of July, 2004.
THE CITY OF SEWARD, ALASKA
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Vanta Shafer, Mayo
AYES:
NOES:
ABSENT:
ABSTAIN:
Dunham, Branson, Va1datta, Amberg, Clark, Anderson, Shafer
None
None
None
ATTEST:
Je Lewis:, .J ",'111111'",
City Clerk ..........'..J" ~~.~~/+.."""
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