HomeMy WebLinkAboutRES2025-018 PW DEC Loan Blowers1
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Sponsored by: Sorensen
CITY OF SEWARD, ALASKA
RESOLUTION 2025-018
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO APPLY FOR A
LOAN WITH THE ALASKA DEPARTMENT OF ENVIRONMENTAL
CONSERVATION CLEAN WATER FUND FOR $547,500 WITH LOAN
FORGIVENESS OF $500,000, LEAVING A BALANCE OF $47,500 AND
APPROPRIATING FUNDS, TO BE FUNDED BY THE CITY OF SEWARD
FOR LOWELL POINT LAGOON BLOWER IMPROVEMENTS
WHEREAS, wastewater facility blower upgrades to replace obsolete equipment will
increase air supply to the lagoon and aid in achieving permit compliance; and
WHEREAS, the old blowers are inefficient and have a high electricity cost to operate.
They are over 30 years old, past their lifespan. They are also extremely loud and hard on employee
hearing safety; and
WHEREAS, staff completed and submitted the required questionnaire to the loan funding
being offered by the Alaska Drinking Water fund; and
WHEREAS, removing and replacing the main blowers at the Lowell Point wastewater
treatment plant with higher efficiency blowers will lower operating costs; and
WHEREAS, the State of Alaska Department of Environmental Conservation (ADEC)
Clean Water Fund has loan funds available for replacing the Lowell Point Lagoon blowers for up
to $547,500 with forgiveness of $500,000; and
WHEREAS, utilizing the "Alaska Clean Water" funds is an excellent opportunity to
reduce the city taxpayer's capital cost liability for the Lowell Point Lagoon.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Manager hereby confirms the loan commitinents to the State of Alaska
Department of Environmental Conservation and its intent to fund $547,500.00 for the Lowell Point
Lagoon Blower Improvements, with an estimated principal forgiveness of $500,000 subject to
receiving a loan from ADEC.
Section 2. The City Council hereby authorizes the City Manager to accept the loan grant
funding and enter into a loan grant agreement with ADEC for $547,500 with $500,000 forgiveness
of the total.
Section 3. The City Manager is hereby authorized to execute any and all documents that
may be necessary to affect a $547,500 loan with $500,000 forgiveness from ADEC, the terms of
its repayment over 10 years at the lowest rate of interest available to ADEC Clean Water Fund,
CITY OF SEWARD, ALASKA
RESOLUTION 2025-018
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subject to 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 10th
day of February 2025.
THE CITY OF SEWARD, ALASKA
Sus, ' ct-Q t r-e-
Sue McClure, Mayor
AYES: Finch, Barnwell, Crites, Warner, Osenga, Wells, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
Kris Peck
City Clerk
(City Seal)
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City Council Agenda Statement
Meeting Date: February 10, 2025
To: City Council
Through: Kat Sorensen, City Manager
From: Doug Schoessler, Public Works Director
Subject: Resolution 2025-018: Authorizing the City Manager to Apply for a Loan
with the Alaska Department of Environmental Conservation Clean Water
Fund for $547,500 with Loan Forgiveness of $250,000, Leaving a Balance
of $297,500 and Appropriating Funds, to be Funded by the City of Seward
for Lowell Point Lagoon Blower Improvements
Background and justification:
The City of Seward Wastewater Treatment Facility still has the original air supply blowers with
are old and inefficient. This purchase will remove and replace the main blowers with more
efficient and effective blowers that operate at a lower cost. The new blowers will produce more
air in the lagoon, helping bacteria grow to remove more organic solids and create a cleaner effluent
discharge into the receiving body of water. This project will upgrade components to minimize
potential breakdowns that could cause lagoon failures.
To obtain funding, the city staff applied for a loan from the State of Alaska Department of
Environmental Conservation's Clean Water Fund (ACWF). The submitted loan questionnaire was
accepted, offering the city a $547,500 loan with a forgiveness of $250,000.
The Wastewater Department has adequate reserves or revenues to fund the loan. The use of new
improved technologies and practices will help to reduce the energy consumption needed to
properly aerate the wastewater lagoon.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: Volume II, 13.2 Wastewater
Strategic Plan:
Other:
Total amount of funds listed in this legislation: $ 547,500
This legislation:
Creates revenue in the amount of:
Creates expenditure in the amount of:
Creates a savings in the amount of:
X
$
$ 297,500
$
Has no fiscal impact
Funds are:
Budgeted Line item(s):
Not budgeted
Not applicable
X
Fund Balance Information
Affected Fund:
General
Boat Harbor
Motor Pool
Available Fund Balance
X
Yes
SMIC
Parking
Other
Electric
Water
X
Attorney Signature:
Not applicable Comments:
Wastewater
Healthcare
Note: amounts are unaudited
Finance Director Signature:
Administration Recommendation
X
Adopt Resolution
Other: