HomeMy WebLinkAboutRES2025-124 Repeal 2025-064 - Adjust AK DEC Loan for LagoonsSponsored by: Sorensen
CITY OF SEWARD, ALASKA
RESOLUTION 2025-124
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, REPEALING RESOLUTION 2025-064 AND AUTHORIZING
THE CITY MANAGER TO ACCEPT AN ADJUSTED LOAN AMOUNT
FROM THE ALASKA DEPARTMENT OF ENVIRONMENTAL
CONSERVATION CLEAN WATER FUND FOR $740,000 WITH LOAN
FORGIVENESS OF $740,000 FOR PLANNING AND DESIGN OF
LOWELL POINT AND SMIC LAGOON EFFLUENT DISINFECTION
AND COMPLETING AND IMPLEMENTING A REQUIRED
WASTEWATER/WATER UTILITY RATE STUDY
WHEREAS, the City completed and submitted the required questionnaire for the ADEC
Clean Water Fund loans; and
WHEREAS, the submitted loan questionnaire was accepted and the City was originally
offered a $665,600 loan with a forgiveness of $665,600; and
WHEREAS, after reviewing the City loan documents, the DEC Clean Water Fund
increased the loan amount to $740,000 with loan forgiveness of $740,000, and required a
Wastewater/Water Utility Rate Study to be completed; and
WHEREAS, the Alaska Department of Environmental Conservation (ADEC) has
mandated the City install disinfection equipment at the Lowell Point and SMIC Lagoons; and
WHEREAS, the ADEC Clean Water Fund has loan funds available for the planning and
design of projects for effluent disinfection; and
WHEREAS, utilizing the Clean Water Fund is an excellent opportunity to reduce the
capital cost liability for the lagoons at Lowell Point and SMIC.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. City Council hereby repeals Resolution 2025-064.
Section 2. The City Manager hereby confirms City of Seward commitments to the State of
Alaska Department of Environmental Conservation and its intent to fund $740,000 for the Lowell
Point and SMIC Lagoon disinfection effluent, with loan forgiveness of $740,000 subject to
receiving a loan from ADEC.
Section 3. The City Council hereby authorizes the City Manager to accept the loan grant
funding and enter into a loan grant agreement with ADEC for $740,000 with $740,000 loan
forgiveness.
CITY OF SEWARD, ALASKA
RESOLUTION 2025-124
Section 4. The City Manager is hereby authorized to execute any and all documents that
may be necessary to affect a $740,000 loan with $740,000 forgiveness from ADEC, with agreed
interest, terms, and repayment to ADEC Clean Water Fund, subject to annual appropriations,
including but not limited to an agreement for the loan processing fee, and a promissory note.
Section 5. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 15th
day of December 2025.
THE CITY OF SEWARD, ALASKA
Sue McClure, Mayor
AYES: Barnwell, Calhoon, Crites, Osenga, Draper, Warner, McClure
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
P
Kris Peck
City Clerk
City Council Agenda Statement
Meeting Date: December 15, 2025
To: City Council
Through: Kat Sorensen, City Manager
From: Doug Schoessler, Public Works Director
Subject: Resolution 2025-124: Repealing Resolution 2025-064 and Authorizing the
City Manager to Accept an Adjusted Loan Amount from the Alaska
Department of Environmental Conservation Clean Water Fund For
$740,000 With Loan Forgiveness Of $740,000 For Planning and Design of
Lowell Point and SMIC Lagoon Effluent Disinfection and Completing and
Implementing a Required Wastewater/Water Utility Rate Study
Background and justification:
The Alaska Department of Environmental Conservation (ADEC) has mandated the City to install
disinfection equipment at the Lowell Point and SMIC Lagoons. The project would include the
design and infrastructure necessary for either an ultraviolet (UV) system or a chlorination/de-
chlorination system.
To obtain funding, the City submitted a loan questionnaire to the State of Alaska Department of
Environmental Conservation's Clean Water Fund (ACWF). The submitted loan questionnaire was
accepted and the City was offered a $665,600 loan with a forgiveness of $665,600. The DEC
Clean Water Fund then reviewed the City's loan documents and increased the loan to $740,000 to
also include a wastewater/water rate study to be completed and implemented.
Comprehensive and Strategic Plan Consistency Information
This legislation is consistent with (citation listed):
Comprehensive Plan: 13.2 Wastewater
Strategic Plan:
Other:
AK -DEC Wastewater Facility Permits
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
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:
Attorne Review
Administration Recommendation
X
Adopt Resolution
Other: