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HomeMy WebLinkAboutRes1992-132 ~ . . Sponsored by: Schaefermeyer CITY OF SEWARD, ALASKA RESOLUTION NO. 92-132 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A LOAN AGREEMENT FOR THE LOWELL POINT SEWAGE LAGOON WHEREAS, the Alaska Department of Environmental Conservation (ADEC) has approved a loan agreement with the city of Seward to provide $924,000 for the restoration of the Lowell Point Sewage Lagoon; and WHEREAS, these loan funds will be used to match the $924,000 grant approved by the State Legislature for Lagoon restoration; and WHEREAS, the interest rate for this loan has been set at 4.31 % which has been determined to be a more favorable rate than the city could acquire through the sale of revenue or general obligation bonds; and WHEREAS, at a special election conducted on June 23,1992, voters of the city of Seward authorized the city to borrow up to $1 Million to make the necessary repairs to the Sewage Lagoon; and WHEREAS, it is in the public interest to enter into this agreement with DEC; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is hereby authorized to execute the Alaska Clean Water Fund Agreement, ADEC Loan Number 769011, attached and incorporated herein by reference. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 10th day of August, 1992. . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 92-132 AYES: NOES: ABSENT: ABSTAIN: A TrEST: Bencardino, Crane, Cripps, Dunham, Krasnansky, Swartz, White None None None APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska (City Seal) ~IWL Fred B. Arvidson City Attorney e e e . . . ~~&~[ @~ ~~~~~~ WAL TER J. HICKEL, GOVERNOR Alaska Department DEPT. OF ENVIRONMENTAL CONSERVATION ALASKA CLEAN WATER FUND AGREEMENT ADEC LOAN NUMBER 769011 THIS AGREEMENT is entered into as of June 30, 1992 by the Alaska Department of Environmental Conservation (the Department) and the City of Seward (the City), acting pursuant to Resolution No. 91-124 approved by the Seward City Council. SECTION I - DEFINITIONS Section 1.1. Except where the context clearly indicates otherwise, terms used in this Agreement will have the meaning ascribed to them in this section. (a) "Approved Application" means the application submitted to the Department on June 6, 1992, together with all attachments and supporting documentation, as approved by the Department and the City. (b) "Contract interest rate" means 4.31 % per annum. (c) "Contract period" means the time period commencing on the date this agreement is signed by the City and terminating on the date the City repays the loan in full. (d) "Default" means the City has failed to rri'ake a loan repayment within 90 days of the due date, as determined by the repayment scheduled prepared by the Department immediately following initiation of operation of the facility. (e) "Eligible Project Costs" include the following costs disbursed from the Alaska Clean Water Fund, estimated to not exceed $924,000; demolition, construction, and engineering for the Project Facility; machinery, furnishings, and equipment; surveys, plans, estimates, and specifications; necessary insurance; financial and environmental investigations; laboratory testing, resident engineering and inspection fees; legal expenses; and any other necessary miscellaneous expenditures, minus the amount of any grant applicable to foregoing costs. . (f) the loan. "Participation Rate" means the amount per year necessary to amortize (g) "Project Facility" means the facilities to be constructed pursuant to this Agreement as described generally in the Approved Application dated June 9, 1992 and described in detail in the project's facility plan. Project title is Lowell Point Sewage Lagoon. SECTION II - RIGHTS OF ACCESS Section 2.1. The Department has the right at all reasonable times to enter the project site, for the purpose of inspecting the facility. SECTION III - ACQUISITION OF PROJECT SITE, CONSTRUCTION OF PROJECT FACILITY, LOAN DISBURSEMENT, AND PAYMENT OF COSTS Section 3.1. With the exception of land easements, all real estate and personal property constituting the Project Facility and the project must belong to the City. . Section 3.2. In connection with the construction of the project, the City agrees that: (a) The City will not begin construction of the Project Facility until the Department has reviewed and approved the plans and specifications for the project. (b) The construction contract will require the contractor to comply with the Davis-Bacon Act and the Anti-Kickback Act, and will require appropriate provisions to be inserted in all subcontracts. (c) All construction contracts and contractors' estimate forms will be prepared so that materials and equipment may be readily itemized as to eligible and noneligible costs. (d) Any change in a construction contract that will alter the contract price or completion time or will substantially modify the proposed treatment processes must be submitted to the Department for prior approval. (e) The construction of the Project Facility will conform to applicable federal, state, and local laws, ordinances, and regulations. . -2- . . . (f) The City will proceed expeditiously and complete the Project Facility in accordance with the Approved Application, project schedule, surveys, plans, profiles, cross-sections, specifications, amendments, and any mitigative measures required by the Department. Section 3.3. The City will require each construction contractor to furnish a performance and payment bond in an amount at least equal to 100 percent of the contract price. Section 3.4. The City will require its contractors and subcontractors to maintain workers compensation, public liability, property damage, and vehicle liability insurance. Until the Project Facility is completed by the City, the City (or at the option of the City, the contractor) will maintain insurance for the loss of the facility for the benefit of the Department, the City, the prime contractor, and all subcontractors, as their interests in the Project Facility may appear. Section 3.5. Subject to the terms and conditions of this Agreement, the eligible project costs less other funding sources will be disbursed by the Department upon submittal and departmental approval of invoices. Section 3.6. If this project finishes under the estimated cost of construction, it will be funded only as necessary to complete the project. Section 3.7. Upon completion of the Project Facility, the City shall provide a statement to the Department of the project final costs by category of expenditure, including but not limited to costs for: administration, design, construction engineering, construction and equipment. SECTION IV . PARTICIPATION PAYMENTS BY THE CITY Section 4.1. This loan is made to the City from the Alaska Clean Water Fund for the maximum amount of $924,000. Section 4.2. The City agrees to repay the principal amount and interest on all cash draws made to the City according to the repayment schedule which will be prepared by the Department and confirmed by the City following initiation of operation of the facility. The repayment schedule for the actual amount of loan payments made to the City will provide that: (a) the City will pay interest at the rate of 4.31 % on each disbursement, accruing from the disbursement date. -3- . . . (b) the loan amount will be paid back within 20 years following initiation of operation of the facility. Repayment of the loan will be made with either equal annual principle payments of 5% of the amount borrowed plus interest or equal annual total payments. Other repayment methods may be negotiated with the Department. (c) the first loan repayment will be due one year following initiation of operation of the facility. Section 4.3. The City assures the Department that the City has not pledged revenues for the repayment of its loan that have been previously pledged or encumbered unless specifically set forth in the City's approved application. The pledged revenues for repayment of the loan and each separate source of revenue are specifically identified and described in the City's submitted application. Section 4.4. In the event that any of the revenues pledged by the City for the repayment of its loan are encumbered by a lien of any prior outstanding debt, the City will furnish the Department with legal assurance that the excess of such prior encumbered revenues are legally available for pledging to the Alaska Clean Water Fund. Section 4.5. The City agrees that if pledged revenues are insufficient to meet any loan payment to the Department when due, the City will pay the deficiency in its loan payment from any legally available funds accruing to or in the possession of the City. Section 4.6. If a payment is received by the Department more than 30 days after it is due, the City agrees to pay a late charge of five percent of the payment. Interest on the unpaid balance will continue to accrue and must be paid in addition to the late charge. Payments in arrears over 90 days, will be referred to the Department of Law Attorney for collection. Section 4.7. The City agrees that it will separately account for all monies received from the Alaska Clean Water and will maintain project accounts in accordance with generally accepted governmental accounting principles. Section 4.8. If prior to completion of the contract period the Project Facility are damaged or destroyed, the City is liable to the Department for all amounts due under this Agreement. -4- . . . SECTION V - MAINTENANCE, OPERATION, INSURANCE and AUDIT Section 5.1. The City shall initiate operation of the Project Facility immediately upon completion of construction and may not discontinue operation of the Project Facility without Departmental approval. One year after the initiation of operation, the City must certify to the Department that the facility is performing up to design standards. The City must ensure that sufficient qualified operating personnel certified by the State of Alaska will be retained to operate the Project Facility. Section 5.2. The City agrees to insure the Project Facility against loss or damage in an amount at least equal to the eligible project cost specified in Section 1.1 (e). Section 5.3. An insurance policy issued pursuant to Section 5.2 must be written or endorsed to make losses payable to the Department and the City as their interests may appear. The interests of the Department are limited to the unpaid principal balance of the loan and any interest accrued as of the date such loan may be paid in full as a result of any insurance payoff, following destruction of damage to the facility. Section 5.4. In the event the City fails to maintain the full insurance coverage required by this Agreement, the Department may take out the required policies of insurance and pay the premiums. All amounts so advanced by the Department will become an additional obligation of the City to the Department. Section 5.5. The City agrees to submit a financial report for the Project Facility for Departmental approval within one year after initiation of operation of the facility. The project audit will cover the entire multi-year project. SECTION VI - MISCELLANEOUS PROVISIONS Section 6.1. Any invoice, accounting, request, or other communication under this Agreement by either party to the other, shall be delivered by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, and, (a) if addressed to the Department, will be sent or deliver personally to: Alaska Department of Environmental Conservation Division of Facility Construction and Operation Alaska Clean Water Fund 410 Willoughby Avenue, Suite 102 Juneau, AK 99801 -5- . . . (b) if addressed to the City, will be sent to or delivered personally to: The City of Seward P.O. Box 167 Seward, AK 99664 Section 6.2. Departmental approvals, required by this Agreement will not be unreasonably withheld. Section 6.3. This Agreement is made subject to and conditional upon the availability of funds. Section 6.4. This Agreement is effective as of the date set forth above and continues in full force and effect until the final day of the Contract Period. Section 6.5. This Agreement is binding upon the parties specified below, and to any person, office, or board succeeding either of the parties. This Agreement may not be assigned by the City without written consent of the Department. Section 6.6. The Department may cancel all or any part of this agreement if: (a) Any representation or other statement made by the City to the Department in connection with its application for a loan from the Alaska Clean Water Fund is incorrect or incomplete in any material respect; (b) The City has violated commitments made by it in its Approved Application and supporting documents, has not adhered to the regulations of the Alaska Clean Water Fund (18 AAC 76), has violated any of the terms of this Loan Agreement; or (c) The financial position of the City has, in the opinion of the Department, suffered a materially adverse change. -6- . ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION By: ~;Z~ Kith Kelton, Director Division of Facility Construction and Operation ACKNOWLEDGEMENT STATE OF ALASKA First Judicial District The foregoing instrument was acknowledged before me this ~ f!:L day of -) . \.'NG , 190 L by: , ""-~},,,,--- ~ ~\~~....--- Notary PUblid. State of Alas~~ My commission expires: I tt~ . CITY OF SEWARD BY:~ e.; A"v-+f~ . - ACKNOWLEDGEMENT STATE OF ALASKA First Judicial District tk The ~egOing instrument was acknowledged before me this /;2, . day of , I. 1 q ~ /" I -I l.~.(-1u...:2-r ,19 / v- by:-::::-LJ,-.t rry. '-<.J ('J?~e7?'fmc-'r,=,"r / ( ,/),_v'd) . ~//?:.>><<./ ,/,,'~ //d~t-x Notary Public, State of Alaska My commission expires: .?- F 7'j