CITY OF HOMER

HOMER, ALASKA

City Manager/

Public Works Director

RESOLUTION 09-98

A RESOLUTION OF THE CITY COUNCIL OF HOMER, ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT AND APPROPRIATE AMERICAN RECOVERY AND REINVESTMENT ACT FUNDING (ARRA-STIMULUS BILL) IN THE FORM OF A LOAN (90% FORGIVEN UPON PURCHASE) IN THE AMOUNT OF $1.8M FOR THE PURPOSE OF REHABILITATING SANITARY SEWER TRUNK MAINS.

             WHEREAS, The American Recovery and Reinvestment Act (ARRA) contained funding that was directed to the Clean Water State Revolving Fund (CWSRF); and

            WHEREAS, The City submitted an application for CWSRF funding to rehabilitate sections of the sanitary sewer collection system to minimize potential for future health hazards by correcting infiltration problems (reducing sewer treatment plant NPDES permit violations) and eliminating potential for sewer system failure; and

            WHEREAS, The Alaska Department of Environmental Conservation (ADEC) recently notified the City that its sanitary sewer rehabilitation project application is likely to be eligible for ARRA funding in the form of a loan in the amount of $1,800,000; 90% of which will be forgiven if the City successfully completes the project; and

            WHEREAS, The City Council at their May 11, 2009 meeting evaluated projects the City could proceed to complete using the available ARRA Clean/Drinking Water economic stimulus funding and chose Scenario 2 (see Memorandum 09-117 from the Public Works Director) which recommended proceeding with this sanitary sewer rehabilitation project; and

           NOW, THEREFORE, BE IT RESOLVED that the City Council of Homer, Alaska, authorizes the City Manager to make a formal loan application and execute a loan agreement for the completion of a sanitary sewer rehabilitation project in the amount of $1,800,000, 90% of which will be forgiven when the City successfully completes the project.

            PASSED AND ADOPTED by the Homer City Council this 14^th day of September, 2009.

                                                                        CITY OF HOMER

                                                                        ______________________________________

                                                                        DENNIS NOVAK, MAYOR PRO TEMPORE

ATTEST: 

______________________________

JO JOHNSON, CMC, CITY CLERK

Fiscal Note: 156-395-4992 - ACWF Loan - $1,800,000