Resolution 15-101 Authorizing the City Manager to Apply for and Accept an Alaska Drinking Water Fund (ADWF) Loan for Phase I of the Homer Water Distribution/Storage Improvement Project

CITY OF HOMER

HOMER, ALASKA

City Manager/

Public Works Director

RESOLUTION 15-101

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, AUTHORIZING THE CITY MANAGER TO APPLY FOR AND ACCEPT AN ALASKA DRINKING WATER FUND (ADWF) LOAN FOR PHASE I OF THE HOMER WATER DISTRIBUTION/STORAGE IMPROVEMENT PROJECT IN AN AMOUNT NOT EXCEEDING $817,000.

WHEREAS, Public Works has completed the design of various water distribution system and water storage improvements utilizing Environmental Protection Agency  Special Act Appropriations Project (EPA SAAP) funds specifically appropriated for water system improvement design, as authorized by the City Council; and

WHEREAS, The first phase of this project was the subject of an Alaska Department of Conservation (ADEC) municipal grant application; and

WHEREAS, The grant application scored second statewide and is currently one of four projects in the State FY16 budget funded through the ADEC Municipal Grants Program; and

WHEREAS, The grant will provide for 70% of the cost of the construction of these improvements; 30% is a City match; and

WHEREAS, Public Works proposes to finance this match (as done previously on similar projects) utilizing a low interest (1.5%) ADWF loan; loan payments to be made from the Homer Accelerated Water/Sewer Program (HAWSP) over a 10-20 year period. Assessments levied on benefitted property owners will, over the period of the loan, provide the funds necessary to repay the loan; and

WHEREAS, Article IX, §11 of the Alaska Constitution provides that the City may incur indebtedness that is payable from either utility revenues or special assessments without voter approval, and the loan will be payable only from such sources or from appropriations of HAWSP funds.

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby authorizes the City Manager to apply for and accept an Alaska Drinking Water Fund low interest loan to finance the City’s ADEC Municipal Grant Program match for the Homer Water Distribution/Storage Improvement (Phase I) project an amount not exceeding $817,000 and authorizes the City Manager to execute a loan agreement for the loan and all other appropriate documents.

               PASSED AND ADOPTED by the Homer City Council this 23rd day of November, 2015.

CITY OF HOMER

                                                                                          ____________________

MARY E. WYTHE, MAYOR

ATTEST:

___________________________

JO JOHNSON, MMC, CITY CLERK

Fiscal Note: $817,000 loan with 1.5% interest 10-20 years.