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HomeMy WebLinkAboutRES2025-019 PW Water Meter InstallSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2025-019 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 DRINKING WATER FUND FOR $432,000 WITH LOAN FORGIVENESS OF $432,000 TO FUND THE NEW WATER METER PROJECT WHEREAS, the new water meters with enhanced technologies to deliver equal or better services will benefit residents; and WHEREAS, the City of Seward Water Department applied for a loan from the State of Alaska Department of Environmental Conservation (ADEC) Drinking Water Fund; and WHEREAS, the submitted loan questionnaire was accepted, offering the city a $432,000 loan with a forgiveness of $432,000 to install smart water meters for efficiency, simplified billing rates, and promotion of water conservation; and WHEREAS, utilizing these loan funds is an excellent opportunity to reduce the city taxpayer's capital cost liability for the Water Enterprise Fund; and .. WHEREAS, in the effort to obtain funding, city staff applied for a loan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager hereby confirms City'of Seward commitments to the State of Alaska and its intent to fund $432,000 for new water meter project with loan forgiveness of $432,000, 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 $432,000 with $432,000 loan forgiveness. Section 3. The City Manager is hereby authorized to execute any and all documents that may be necessary to affect a $432,000 loan from ADEC, with agreed interest, terms and repayment to ADEC Drinking Water Fund, subject to annual appropriations, including but not limited to an agreement for the loan, processing fee 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. CITY OF SEWARD, ALASKA RESOLUTION 2025-019 Page 2 of 2 THE CITY OF SEWARD, ALASKA Sue McClure, Mayor AYES: Finch, Barnwell, Crites, Warner, Osenga, Wells, McClure NOES: None ABSENT: None ABSTAIN: None ATTEST: Kris Peck City Clerk (City Seal) iNIIIIIII.ot ''�OF SEW,. --s- L *( SEAL � P � r a -�9`� t • 1. cS' 1-C�j�E 1 1c3"(� Q- : 0. -TE OF AV' o' 1 1 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 2025-019: Authorizing the City Manager to Apply for a Loan with the Alaska Department of Environmental Conservation Drinking Water Fund for $432,000 with Loan Forgiveness of $432,000 to Fund the New Water Meter Project Background and justification: The City of Seward Water rate study includes the purchase and installation (some work will be contracted) of approximately 200 smart water meters with remote reader capabilities. By installing water meters, the City of Seward is gaining efficiency by simplifying billing by moving away from the complicated ERU billing. This will also promote water conservation. The use of water meters for all businesses and apartment buildings more than a duplex will make water and sewer billing much easier and understandable by going to a "user pay" system. Technology improvements will improve data collection for billing and save costs to manually read meters at each site. Phase II will work to replace existing meters with smart meters. In order to obtain funding, the city staff applied for a loan from the State of Alaska Department of Environmental Conservation Drinking Water Fund. The submitted loan questionnaire was accepted, offering the city a $432,000 loan with a forgiveness of $432,000. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Volume II, Water 13.1 Strategic Plan: Other: Total amount of funds listed in this legislation: 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 X 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 Attorney Signature: Not applicable Comments: Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Er Administration Recommendation X Adopt Resolution Other: