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Home My WebLink AboutRES2025-065 Loan for Elm Street Water Maini L Sponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2025-065 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT A LOAN FROM THE ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION DRINKING WATER FUND FOR $400,000 WITH LOAN FORGIVENESS OF $400,000 FOR THE ELM STREET WATER MAIN REPLACEMENT WHEREAS, the State of Alaska Department of Environmental Conservation approved a loan to the City to replace 250 feet of 2-inch galvanized water main with 4-inch DI or C-900 pipe at Elm Street; and WHEREAS, in conjunction with the lead and copper pipe project, this removes the last galvanized water main, which will reduce leaks and improve distribution flow issues. This will also reduce metal contamination to improve water quality; and WHEREAS, this project is listed in the 2025-2026 Capital Improvement Plan, and the City accepts the responsibility to operate and maintain the improvements; and WHEREAS, the City completed and submitted the required questionnaire to the ADEC Drinking Water Fund; and WHEREAS, utilizing the ADEC Drinking Water Fund with 100% loan forgiveness is an excellent opportunity to reduce the city taxpayer' s capital cost liability for the Water Enterprise Fund. 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 Department of Environmental Conservation (ADEC) and its intent to fund $400,000 for the Elm Street water main replacement, with $400,000 loan forgiveness, 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 $400,000 with $400,000 loan forgiveness. Section 3. The City Manager is hereby authorized to execute any and all documents that may be necessary to affect a $400,000 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. CITY OF SEWARD, ALASKA RESOLUTION 2025-065 Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of July 2025. THE CITY OF SEWARD, ALASKA catiA-r ' Qru. re Sue McClure, Mayor AYES: Warner, Barnwell, Wells, Crites, Finch, Osenga, McClure NOES: None ABSENT: None ABSTAIN: None Kris Peck City Clerk (City Seal) City Council Agenda Statement Meeting Date: July 14, 2025 To: City Council Through: Kat Sorensen, City Manager From: Doug Schoessler, Public Works Director Subject: Resolution 2025-065: Authorizing the City Manager to Accept a Loan From the Alaska Department of Environmental Conservation Drinking Water Fund for $400,000 with Loan Forgiveness of $400,000 for the E1m Street Water Main Replacement Background and justification: The Alaska Department of Environmental Conservation (ADEC) approved a loan to the City on June 12, 2025, for the E1m Street Water Main Replacement for $400,000 with a 100% loan forgiveness. This project is listed in the 2025-2026 Capital Improvement Plan — Replace water lines at Elm Street in the Water Department. These are projects currently located in an established area, which is still suitable for use and should be encouraged over projects in undeveloped areas. The repair, replacement, and upgrade of infrastructure in these types of areas are encouraged. This project will remove galvanized water main to reduce leaks and improve distribution flow. This will also mitigate possible metal contamination, thereby improving water quality. In effort to obtain funding, the city staff applied for a loan from the State of Alaska Department of Environmental Conservation -Alaska Drinking Water Fund (ADWF). The submitted loan questionnaire was accepted, offering the City a $400,000 loan with a forgiveness of $400,000. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 13.1 Water Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ This legislation (V): X 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 Fund Balance Information Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Electric Water $ Wastewater Healthcare Note: amounts are unaudited Acting Finance Director Signature: fir--- Attorney Review X Yes Attorney Signature: Not applicable Comments: Administration Recommendation X Adopt Resolution Other: