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Home My WebLink AboutRES2026-043 Birch St Water Main Replacement - AK DEC LoanSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2026-043 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT A LOAN WITH THE ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION DRINKING WATER FUND FOR $850,000 WITH LOAN FORGIVENESS OF $850,000 FOR THE BIRCH STREET WATER MAIN REPLACEMENT WHEREAS, the State of Alaska Department of Environmental Conservation approved the Public Works questionnaire submission for a loan to the City, to replace 500 feet of old galvanized water main with a new ductal iron or better at Birch Street; and WHEREAS, in conjunction with the lead and copper pipe project, this removes the last galvanized water main, reducing leaks and distribution flow issues. This will also reduce the chance of metal contamination; and WHEREAS, the city accepts the responsibility to operate and maintain the improvements; and WHEREAS, staff completed and submitted the required questionnaire to the State Revolving Fund and were notified that $850,000 is available for this project upon the loan application approval; and WHEREAS, utilizing these Alaska Drinking Water loan funds 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: Section 1. The City Manager hereby confirms the City of Seward commitments to the State of Alaska Department of Environmental Conservation (ADEC) and its intent to fund $850,000 for the Birch Street water main replacement, with $850,000 loan forgiveness, subject to receiving a loan from ADEC. Section 2. The City Council hereby authorizes the City Manager to apply for and accept the loan grant funding and enter into a loan grant agreement with ADEC for $850,000 with $850,000 loan forgiveness. Section 3. The City Manager is hereby authorized to execute any and all documents that may be necessary to affect an $850,000 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 2026-043 Page 2 of 2 Section 4. This resolution shall take effect immediately upon its adoption. APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, THIS 27th DAY OF APRIL 2026. suti c C_J(2L Sue McClure, Mayor AYES: Osenga, Warner, Draper, Barnwell, Calhoon, McClure NOES: None ABSENT: Crites ABSTAIN: None ATTEST: Kris Peck City Clerk r2 City Council Agenda Statement Meeting Date: April 27, 2026 To: City Council Through: Kat Sorensen, City Manager From: Doug Schoessler, Public Works Director Subject: Resolution 2026-043: Authorizing the City Manager to Accept a Loan with the Alaska Department of Environmental Conservation Drinking Water Fund for $850,000 with Loan Forgiveness of $850,000 for the Birch Street Water Main Replacement Background and justification: On April 14, 2026, the Alaska Department of Environmental Conservation (ADEC) approved the Public Works questionnaire submission for a loan to the City of Seward for the Birch Street Water Main Replacement for $850,000 with a 100% loan forgiveness. This project will remove the galvanized water main, to reduce leaks and improve distribution flow. This will also mitigate possible metal contamination, thereby improving water quality. 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 (✓): 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): Loan/Grant Funding $ [intentionally left blank] $ $ $ Not budgeted Not applicable Fund Balance Information Affected Fund (✓): General Boat Harbor Motor Pool SMIC Parking Other X Electric Water Wastewater Healthcare Net Position as of 12.31.25 Yes Attorney Signature: X Not applicable Comments: Note: amounts are unaudited $ 3,835,902.06 Finance Director Signature: Attorney Review Administration Recommendation X Adopt Resolution Other: