HomeMy WebLinkAboutRES2024-069 LC Water Tank ReplacementSponsored by: Sorensen
CITY OF SEWARD, ALASKA
RESOLUTION 2024-069
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO APPROVE LOWELL
CANYON WATER STORAGE TANK REPLACEMENT FOR AN AMOUNT
NOT TO EXCEED $3,000,000 AND APPROPRIATING FUNDS
WHEREAS, the Lowell Canyon water storage tanks are essential to the water supply for the
City of Seward; and
WHEREAS, the existing pre-1980 water tank was inspected in 2011 and deemed to be in
poor condition and refurbishing the tank would cost more than replacement; and
WHEREAS, the water tank capacity represents a vital part of Seward's water storage needs,
and failure of this tank would jeopardize the water supply of the City; and
WHEREAS, in March of 2024, Public Works staff commissioned CRW to complete the
design and engineering necessary for the design, RFP, and construction of the project; and
WHEREAS, the estimate from CRW totaled $3,000,000.00 for design and construction; and
WHEREAS, an amount of $1,041,020 of the American Rescue Plan Act (ARPA) funds have
been set aside by Resolution 2022-051 and Resolution 2022-025; and
WHEREAS, the City of Seward Public Works was approved for a loan from the State of
Alaska Department of Environmental Conservation "Revolving Fund -Drinking Water Program" in
the amount of $1,905,000.00 with loan forgiveness of $1,500,000.00; and
WHEREAS, funding for these repairs is available in the City of Seward Water Enterprise
Fund, ARPA funds, and State of Alaska Department Environmental Conservation -Division of Water
Revolving Funds.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized td approve the project far the Lowell
Canyon Water Storage Tank Replacement for an amount not to exceed $3,000,000.00.
Section 2. Funding in the amount of $1,041,020.00 is hereby appropriated from the ARPA
Funds as follows:
SOA-DCCED (NEU) Funds of $113,333.65 account 17000-4000-8101-0080
Funds of $113,333.65 account 18000-4500-8101-0080
CITY OF SEWARD, ALASKA
RESOLUTION 2024-069
Page 2 of 2
SOA-DCRA (LGLR): Funds of $814,352.83 account 80084-0000-8101-0000
SOA-DEC-Division of Water Fund: Funds of $1,905,000.00 account 17333-0000-8101
Water Fund: Funds of $54,980.00 is hereby appropriated from account 17000-4000-8101
Section 3. This resolution shall take effect immediately upon approval.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this
16th day of December 2024.
THE CITY OF SEWARD, ALASKA
Sue McClure, Mayor
AYES: Crites, Barnwell, Wells, Osenga, Warner, McClure
NOES: None
ABSENT: Finch
ABSTAIN: None
ATTEST:
Jo o Kurtz,
Acting City Clerk
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Resolution 2024-069
City Council Agenda Statement
Meeting Date: December 16, 2024
To: City Council
Through: Kat Sorensen, City Manager
From: Doug Schoessler, Public Works Director
Subject: Resolution 2024-069: Authorizing the City Manager to Approve Lowell
Canyon Water Storage Tank Replacement for an Amount Not to Exceed
$3,000,000 and Appropriating Funds
Background and justification:
The existing pre-1980 Lowell Canyon water tank was inspected in 2011 and deemed to be in poor
condition. Refurbishing it would cost more than replacing it. This tank's capacity represents a vital
part of Seward's water storage needs. Failure of this tank would jeopardize the city's water supply.
The funds will be used for the tear down and removal of the existing water storage tank, and the
design, RFP, and construction of a new 500,000-gallon water storage tank.
The failing water storage tank will be replaced with a new, efficient tank, that includes new
reporting and data collection technologies. This replacement tank will also eliminate the pending
water tank contamination challenges and will provide the clean drinking water needed and storage
capacity for the city's residents and visitors.
On February 28, 2022, and on April 11, 2022, the City Council passed Resolution 2022-025 and
Resolution 2022-051, authorizing the American Rescue Plan Act (ARPA) grant funds to invest in
water infrastructure needs. This is an eligible use of the funds as outlined by the U.S. Department
of the Treasury.
On March 28, 2024, the City of Seward Public Works Department was approved for a
$1,905,000.00 Drinking Water State Revolving Fund Loan from the State of Alaska Department
of Environmental Conservation, with a loan forgiveness of $1,500,000.00.
Funding in the amount of $3,000,000.00 is hereby appropriated for the Lowell Canyon Water
Storage Tank Replacement for engineering, design, and construction.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: Comprehensive Plan: 13.1 Water
Strategic Plan: Strategic Plan: Consistent with Comprehensive Plan
224
Resolution 2024-069
Other:
Other: Water Sewer Rate Study
it Certification of Funds
Total amount of funds listed in this legislation: $ 3,000,000.00
This legislation (✓):
Creates revenue in the amount of: $
Creates expenditure in the amount of: $
Creates a savings in the amount of: $
Has no fiscal impact
Funds are (✓):
Budgeted Line item(s):
Not budgeted
Not applicable
Affected Fund (✓):
General
Boat Harbor
Motor Pool
X
Available Fund Balance
SMIC Electric Wastewater
Parking Water Healthcare
Other ARPA — Water Fund
$
Note: amounts are unaudited
Finance Director Signature:
'ait 9"4"
Yes
Attorney Signature:
Not applicable Comments:
Administration Recommendation
Adopt Resolution
Other:
225