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Sponsored by: Hunt <br /> CITY OF SEWARD, ALASKA <br /> RESOLUTION 2014-019 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br /> ALASKA, APPROVING A TRANSFER OF FUNDS IN THE AMOUNT OF <br /> $500,000 FROM THE WATER ENTERPRISE FUND TO THE <br /> WASTEWATER ENTERPRISE FUND FOR THE PURPOSE OF <br /> CONDUCTING MITIGATION EFFORTS AT LOWELL POINT SEWAGE <br /> LAGOON, AND APPROPRIATING FUNDS <br /> WHEREAS,operation of the Lowell Point Sewage lagoon was initiated in November, 1993, <br /> and the lagoon has operated for more than two decades without a significant investment in lagoon <br /> repair or sludge disposal costs; and <br /> WHEREAS, maintenance and repairs are necessary so that the Lagoon can perform as <br /> intended, which may require diversion of sewage into one cell while another cell is serviced, repair <br /> and/or installation of pumps and piping, and disposal of lagoon sludge, in addition to the design, <br /> engineering, and other associated repair work; and <br /> WHEREAS, City staff are developing plans for long-term repairs to the Lagoon,but in the <br /> immediate term, it is necessary to perform work to design, engineering, and perform odor-control <br /> measures at the Lagoon, necessitating an appropriation of$500,000; and <br /> WHEREAS, despite recent increases in the wastewater tariff aimed at addressing deferred <br /> maintenance needs of wastewater infrastructure,the cash balance in the Wastewater Enterprise Fund <br /> is approximately $689,600, and $311,000 in the Wastewater Major Repair and Replacement Fund <br /> (MRRF), for a combined total of approximately$1 Million at December 31,2013,still insufficient to <br /> cover major anticipated costs of repairs; and <br /> WHEREAS,the cash balance in the Water Enterprise Fund is approximately$2.7 Million, <br /> and in the Water MRRF, $212,500 for a combined total of nearly$3 Million at December 31, 2013, <br /> which includes a recent loan repayment to the Fund of approximately $1.9 Million; and <br /> WHEREAS, the administration recommends a transfer of cash from the Water Enterprise <br /> Fund to the Wastewater Enterprise Fund MRRF to cover the costs of short-term mitigation efforts at <br /> the Lagoon,in an amount not to exceed$500,000. The Water Fund is considered a more appropriate <br /> source of funds given the shortfall of cash in the Wastewater Fund,given the shared customer base <br /> of ratepayers for both the Water and Wastewater Funds, as well as the relationship between system <br /> inflows (Water) and outflows (Wastewater). <br /> NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY <br /> OF SEWARD, ALASKA, that: <br />