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HomeMy WebLinkAboutRES2025-065 Loan for Sewage Lagoon Effluent DisinfectionSponsored 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 $400,000 loan from ADEC,with agreed interest,terms and repayment to ADEC Drinking Water Fund,subject to annual appropriations,including but not limited to an agreement for the loan,processing fee and a promissory note. CITY OF SEWARD,ALASKA RESOLUTION 2025-065 Section 3.This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this 14t1 day of July 2025. THE CITY OF SEWARD,ALASKA CWf1J$CQ.IL e. Sue McClure,Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Warner,Barnwell,Wells,Crites,Finch,Osenga,McClure None None None Kris Peck City Clerk (City Seal) EJ []