HomeMy WebLinkAboutRES2025-080 Loan for Hypochlorite ProjectSponsored by: Sorensen
CITY OF SEWARD, ALASKA
RESOLUTION 2025-080
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 STATE REVOLVING FUND FOR
$600,000 WITH LOAN FORGIVENESS OF $600,000 TO FUND THE SMIC
WATER PUMPHOUSE ADDITION AND HYPOCHLORITE GENERATOR
PROJECT
WHEREAS, in August 2023 the City of Seward City Council approved Resolution 2023-
092 accepting the Alaska Department of Environmental Conservation (DEC) Alaska Drinking
Water State Revolving Fund (DWSRF) loan of $476,0000 with loan forgiveness of $238,000 for
the SMIC Hypochlorite Generator Project; and
WHEREAS, City Council approved resolutions 2023-140 and 2025-067 for Professional
Design and Management services for the SMIC Water Pumphouse Addition and Hypochlorite
Generator Project; and
WHEREAS, the City of Seward published an RFP for construction of the project and
received one bid which came in higher than expected; and
WHEREAS, the City requested additional financial assistance from the Alaska DEC
DWSRF to complete the construction of the project by increasing the loan request; and
WHEREAS, staff completed and submitted the required questionnaire for funds from the
DWSRF, which was accepted, offering the City an additional $600,000 loan with loan forgiveness
of $600,000. This will be an addition to loan 769121-S; and
WHEREAS, accepting the loan from the DWSRF is in the best interest of the City by
utilizing the fund to invest in infrastructure, follow the regulations set forth by the Alaska DEC,
and remain in compliance with the current permit.
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 $600,000 for the construction of the SMIC Water Pumphouse Addition
& Hypochlorite Generator System Upgrade Project with loan forgiveness of $600,000, 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 agreement with ADEC for $600,000 with $600,000 loan forgiveness.
CITY OF SEWARD, ALASKA
RESOLUTION 2025-080
Page 2 of 2
Section 3. The City Manager is hereby authorized to execute any and all documents that
may be necessary to award a $600,000 loan from ADEC, with agreed interest, terms, 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 25'''
day of August 2025.
THE CITY OF SEWARD, ALASKA
Sue McClure, Mayor
AYES: Osenga, Barnwell, Crites, Warner, Wells, McClure
NOES: None
ABSENT: Finch
ABSTAIN: None
ATTEST:
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Kris Peck
City Clerk
(City Seal)
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City Council Agenda Statement
Meeting Date: August 25, 2025
To: City Council
Through: Kat Sorensen, City Manager
From: Doug Schoessler, Public Works Director
Subject: Resolution 2025-080: Authorizing the City Manager to Accept a Loan from
the Alaska Department of Environmental Conservation Drinking Water
State Revolving Fund for $600,000 with Loan Forgiveness of $600,000 to
Fund the SMIC Water Pumphouse Addition and Hypochlorite Generator
Project
Background and justification:
The current SMIC water treatment system uses chlorine gas cylinders in the SMIC water
pumphouse. The declining availability of cylinders and hazards of chlorine gas necessitates the
City to change to a hypochlorite generator, the same system already installed at the North Seward
Water Plant Facility.
City Council approved Resolution 2023-092 authorizing a loan from the Alaska Drinking Water
Fund loan of $476,0000 with an estimated principal forgiveness of $238,000 for design and
construction of the SMIC Hypochlorite Generator Project.
City Council approved resolutions 2023-140 and 2025-067 for professional engineering, design
and management services for the SMIC Hypochlorite Generator Project with final construction
bids opened on July 30, 2025. The City of Seward received one bid. The project bid came in higher
than expected and additional financing through a loan was requested to cover the increased cost.
The Public Works Water Department requested funds to complete the construction of the SMIC
Water Pumphouse Addition and Hypochlorite Generator System Project by obtaining a loan from
the State of Alaska Department of Environmental Conservation Drinking Water State Revolving
Fund (DWSRF).
Staff completed and submitted the required questionnaire for funds from the DWSRF, which was
accepted, offering the city an additional $600,000 loan with a forgiveness of $600,000. This will
be an addition to the loan #769121-S.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 13.1 Water
Strategic Plan:
Other:
2025-2026 Capital Improvement Plan
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
Funds are (✓):
Budgeted Line item(s):
Not budgeted
Not applicable
Affected Fund (✓):
General
Boat Harbor
Motor Pool
Available Fund Balance
SMIC
Parking
Other
Electric
Water
$
Wastewater
Healthcare
Note: amounts are unaudited
Finance Director Signature:
X
Yes
Attorney Signature:
Not applicable Comments:
Administration Recommendation
X
Adopt Resolution
Other: