HomeMy WebLinkAboutResolution No. 2009-59the cif ar
KENAI, ALASKA
CITY OF KENAI
RESOLUTION NO. 2009 -59
SUBSTITUTE
Suggested by: Administration
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING
THE CITY MANAGER TO EXECUTE A LOAN AGREEMENT WITH THE DEPARTMENT
OF ENVIRONMENTAL CONSERVATION FOR AN ALASKA DRINKING WATER FUND
LOAN FOR THE CONSTRUCTION OF WATER DISTRIBUTION MAINS AND RELATED
IMPROVEMENTS ALONG BRIDGE ACCESS ROAD FROM THE KENAI SPUR HIGHWAY
TO BEAVER LOOP ROAD.
WHEREAS, pursuant to AS 46.03.032 the State of Alaska, Department of
Environmental Conservation (ADEC) may make loans to municipalities from the
Alaska Drinking Water Fund (ADWF) to pay for the cost of designing, building,
constructing, and rehabilitating public drinking water distribution systems; and,
WHEREAS, the City has applied to ADEC for a loan in the amount of S2,222,000 from
the ADWF for the Bridge Access Water Sewer Project, and ADEC has accepted the
City's loan application (Preliminary ADWF Loan 475061); and,
WHEREAS, ADEC will fund 90% or $2,000,000 of the loan through principal
forgiveness through funding received through the American Recovery and
Reinvestment Act (ARRA); and,
WHEREAS, the City will prepay the City's 10% share (5222,000) and one -half percent
(1/2 early repayment fee ($11,110), from the Water Sewer Fund, to ensure no
debt is incurred; and,
WHEREAS, the construction of improvements will support existing commercial
enterprises and new commercial development in the project area; and,
WHEREAS, it is in the best interest of the City of Kenai to apply for an ADWF loan and
authorize the City Manager to execute any and all documents required by the ADEC.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that the City Manager is authorized to execute a loan agreement with the
Alaska Department of Environmental Conservation for an ADWF loan for the
construction of a water transmission main project along Bridge Access Road from the
Kenai Spur Highway to Beaver Loop Road and the City Manager is authorized to
execute any and all documents that may be required by the ADEC to reflect the terms
of its repayment, and any security therefore, including but not limited to an agreement
for the loan.
Substitute
Resolution No. 2009 -59
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of
September, 2009.
ATTEST:
Carol L. Freas, City Clerk
New Text Underlined [DELETED TEXT BRACKETED]
PAT PORTER, MAYOR