CITY OF HOMER

HOMER, ALASKA

City Manager/Public Works/Finance

RESOLUTION 07-115

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA AUTHORIZING THE CITY TO APPLY TO THE ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION FOR A LOAN IN AN AMOUNT UP TO $8 MILLION DOLLARS FROM THE ALASKA DRINKING WATER FUND FOR THE CONSTRUCTION OF THE NEW WATER TREATMENT PLANT PROJECT.

WHEREAS, The City of Homer seeks to obtain the necessary financial assistance to construct the new Homer Water Treatment Plant; and

WHEREAS, The State of Alaska, Department of Environmental Conservation (the Department) is able to offer funding through the Alaska Drinking Water Fund; and

WHEREAS, The Municipality wishes to apply for a loan from the Alaska Drinking Water Fund.

NOW, THEREFORE, BE IT RESOLVED that the City is authorized to apply to the Department for a loan in an amount up to $8 million dollars (2.5% interest for 30 years) from the Alaska Drinking Water Fund for the construction of the new Homer Water Treatment Plant. The City Manager is authorized to execute any and all documents that may be required by the Department to reflect the indebtedness, the terms of its repayment, and any security therefore, including but not limited to an agreement for the loan and a promissory note.

PASSED AND ADOPTED by the Homer City Council this 10th day of December, 2007.

CITY OF HOMER

_____________________________

JAMES C. HORNADAY, MAYOR

ATTEST:

______________________________

JO JOHNSON, CMC, CITY CLERK

Fiscal Note: Acct. #215-865