Resolution 16-071 Alaska Clean Water Fund (ACWF) Loan for the Kachemak Drive (Phase III) Sewer Main Project

CITY OF HOMER

HOMER, ALASKA

City Manager/

Public Works Director

RESOLUTION 16-071

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, AUTHORIZING THE CITY MANAGER TO APPLY FOR, ACCEPT, AND EXECUTE AN ALASKA CLEAN WATER FUND (ACWF) LOAN FOR THE KACHEMAK DRIVE (PHASE III) SEWER MAIN  PROJECT IN THE AMOUNT OF $801,100.

WHEREAS, The City of Homer seeks to obtain the necessary financial assistance to construct sewer system improvements; and

WHEREAS, The City Council has approved the creation of a Special Assessment District (SAD) to install the last portion of  sewer main on Kachemak Drive; and

WHEREAS, The Homer Accelerated Water and Sewer Program will fund 25% and the benefitted property owners will be assessed 75% of the cost of the project; and

WHEREAS, A State of Alaska Department of Environmental Conservation and Environmental Protection Agency (ADEC/EPA) 20-year, low interest loan (currently 1.5%) is available to finance both the City and property owners’ share of the cost; and

WHEREAS, A resolution authorizing the City Manager to apply for, accept and execute a loan agreement is required by ADEC; and

WHEREAS, Loan payments will be made from the Homer Accelerated Water and Sewer Program (HAWSP) over a 20-year period (with assessments collected from property owners over this same time period).

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby authorizes the City Manager to apply for, accept, and execute an Alaska Clean Water Fund low interest loan to finance the cost of the Kachemak Drive (Phase III) Sewer Main Project.

NOW, THEREFORE, BE IT RESOLVED that the Homer City Council hereby authorizes the City Manager to apply for, accept, and execute an Alaska Clean Water Fund low interest loan to finance the cost of the Kachemak Drive (Phase III) Sewer Main Extension project in the amount of $801,100, and execute all appropriate related documents.

               PASSED AND ADOPTED by the Homer City Council this 13th day of June, 2016.

CITY OF HOMER

                                                                                                         ________________________

MARY E. WYTHE, MAYOR

ATTEST:

___________________________

JO JOHNSON, MMC, CITY CLERK

Fiscal Note: ACWF Loan for $801,800 to be paid back over a 20-year period with property owner assessments at 75% and HAWSP at 25% of the project costs.