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Sponsored by: Hunt <br /> taw CITY OF SEWARD, ALASKA <br /> RESOLUTION 2012 -018 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br /> ALASKA, AUTHORIZING PRINCIPAL AND INTEREST PAYMENTS <br /> TOTALING $724,491.30 FOR THE THIRD AVENUE WATER MAIN <br /> LOAN FROM THE STATE OF ALASKA DEPARTMENT OF <br /> ENVIRONMENTAL CONSERVATION, AND APPROPRIATING <br /> $563,106.30 TO THE 2012 BUDGET <br /> WHEREAS, Resolution 2004 -106 was approved by the Seward City Council on <br /> November 22, 2004, approving a 35% increase in water tariff rates for the purpose of providing a <br /> revenue stream to repay a pending loan related to replacement of the Third Avenue Water Main <br /> ( "the Project ") from approximately the Alaska SeaLife Center to Port Avenue; and <br /> WHEREAS, in 2006, the Seward City Council approved Resolution 2006 -50 accepting a <br /> loan in the amount of up to $3,480,000 from the State of Alaska Department of Environmental <br /> Conservation ( "DEC ") for the purpose of replacing the Third Avenue Water Line; and <br /> WHEREAS, the project was completed in 2007 at a total cost of $2,652,849 with loan <br /> repayment originally slated to begin in 2008. Due to a delay in resolving a disputed claim of <br /> $594,346.22 related to clean -up of contaminated soils during the Project; repayment on this loan <br /> Ifw,. was delayed and loan payments were not made in 2008, 2009, 2010, or 2011; and <br /> WHEREAS, the State of Alaska DEC has provided the City of Seward with an <br /> amortization schedule which reflects a required payment of $724,491.30 in 2012, with future <br /> annual payments of approximately $155,000 per year over the next 15 years; and <br /> WHEREAS, the 2012 approved budget provides for debt service on this loan of $161,385 <br /> falling short of the requirements for this single payment by $563,106.30, necessitating a one -time <br /> appropriation from the Water Enterprise Fund reserves. <br /> - <br /> NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE <br /> CITY OF SEWARD, ALASKA, that: <br /> Section 1. The City Manager is hereby authorized to make a one -time debt service <br /> payment in the amount of $724,491.30 toward the Third Avenue Water Line Loan prior to April 1, <br /> 2012. <br /> bur <br />