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HomeMy WebLinkAboutRes2001-135 I I I Sponsored by: Janke CITY OF SEWARD, ALASKA RESOLUTION NO. 2001-135 A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH SEWARD SHIP'S DRYDOCK, INe. FOR CONSTRUCTING, MAINTAINING AND OPERATING CERTAIN FACILITIES TO BE BUILT UTILIZING MONEY RECEIVED FROM THE STATE UNDER A GRANT AGREEMENT WHEREAS, the City of Seward ("City") has entered into Grant No. 02-DC-039 with the State of Alaska, Department of Community and Economic Development, Division of Community and Business Development ("Great Agreement") for construction, operation and maintenance of facilities in Seward, Alaska; and WHEREAS, the facilities to be constructed using the Grant Agreement money are located on land that is currently owned by the City and leased to Seward Ship's DryDock, Inc. ("SSD") under a lease dated April 1995, as amended (the "Lease"); and WHEREAS, certain utilities to be constructed using the Grant Agreement money may be outside of the area covered by the Lease but will be within the land area now under management of SSD, pursuant to the Management and Operating Agreement entered into between the City and SSD, dated March 30, 2000, as amended; and WHEREAS, the facilities to be constructed using the Grant Agreement money will be public facilities owned by the City and used for public purposes; and WHEREAS, it is in the best interest ofthe City to comply with the Grant Agreement entered into with the State and thereby the City is to serve as a pass through entity and SSD will utilize the grant money for the requirements and the purposes as described in the Grant Agreement; and WHEREAS, the City will retain an administrative fee to inspect and oversee all work accomplished under the Grant Agreement; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: CITY OF SEWARD, ALASKA RESOLUTION 2001-135 Section 1. It is in the best interest of the City to enter into an Agreement with SSD in substantially the form as attached hereto for construction, maintenance and operation of the facilities to be constructed using the money available under the Grant Agreement No. 02-DC-039. Section 2. The City Manager is authorized to enter into the attached agreement on behalf of the City. The Agreement is to be effective only in accordance with its terms, including satisfaction of all conditions precedent. Section 3. This Resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska this 17th day of October, 2001. THE CITY OF SEWARD, ALASKA le I ('l.~ ~Lt Edgar Blatchford, Mayor AYES: NOES: ABSENT: ABSTAIN: Blatchford, Brossow, Calhoon, Clark, Shafer Branson None Orr ATTEST: (City Seal) ",,,....,,,,, ~...", OF SEvv..'.,;,; ..' ~~ ............ ';;t;f~~, ~ (j ....o"po~-.: 'b ~.. ~ ...~c:; ~.. ~ ... .....,. ......- a~ . = : ~ : = .! SEAL i. = : \ i : ';. -. ---- . .. ... n --,v", "f\. .5- ~ ~::.~~j;::~~.11.~?~~+.~'i. '''.:", (.. 0 F ;..\,1"",........ ""un,"" ASSIGNMENT AND ACCEPTANCE OF RIGHTS AND RESPONSIBILITIES I The CITY OF SEWARD, a Municipal Corporation (referred to herein as the "City"), Assignor, P.O. Box 167, Seward,AJaska99664, by this instrument ("Assignmenr) and for the consideration hereinafter specified, assigns and transfers to SEWARD SHIP'S DRYDOCK, INC., an Alaska corporation (referred to herein as "SSD"), Assignee, P. O. Box 944, Se\Nard, Alaska 99664, its rights and responsibilities in the City's Grant Agreement Number 02-DC- 039 ("Grant Agreemenr) with the State of Alaska, Department of Community and Economic Development, Division of Community and Business Development (the "State") for construction, operation and maintenance of facilities in Seward, Alaska, and SSD accepts the assignment and rights and responsibilities as more specifICally described hereinafter and agrees to operate and maintain the facilities to be constructed. This Assignment does not I release the City from its responsibilities under the Grant Agreement. 1. The Project. The State has agreed to provide grant funds for construction eX the improvements described in Attachment A to the GrantAgreement (the "Project"). The Project shall include, but not be limited to, installation of water line extensions with a 10" main and two fire hydrants, and extensions to a ne\N fabrication shop and employee crf!NII quarters; and sewer line extensions with c1eanouts per Exhibit 1 attached. The Project shall be owned by the City and located on land owned by the City and currently leased to SSD under a lease dated April 25, 1995, as amended (the "Lease") orwithin the boundaries of the area managed and operated by SSD under a Management and Operating Agreement dated March 30, 2000. as amended. 2. Rights Assigned. The rights assigned hereby include all of the City's rights and I responsibilities under the Grant Agreement, with SSD deemed to be the GranteR~sC~roED J:\DOCS\43371001Iassigmnent.wpd 1 NOV 0 2 2001 OCED-Grants Section term is used in the Grant Agreement, and in accordance with this Assignment. This Assignment does not release the City from its responsibilities under the Grant Agreement. The City shall retain $100,000 of the Grant Agreement funds for the City's administrative purposes, $23,600 shall be available to SSD for administrative purposes, and the remaining $876,400 shall be available to SSD for construction of the City's Project as described in the Grant Agreement. All notices, reports and audits required by the Grant Agreement to be provided by the Grantee shall be prepared by SSD and provided to the City and the State. Such notices, reports and audits shall be provided to the City ten days prior to the date due to the State, and unless the State agrees to accept such notices, reports and audits directly from SSD, the City shall have the right to require changes necessary to conform to the Grant Agreement. 3. Responsibilities Accepted and Assumed. SSD hereby accepts the assignment and accepts the responsibilities to proceed with and complete the Project and to assume the City's obligations and pay all sums due under the Grant Agreement and all contracts pertaining to the project, and to release, protect, defend and save harmless the City, its offICials, employees, and authorized representatives against any loss, cost, damage, expense, judgment or liability of any kind whatsoever, from or by reason of or as a result of the activityof SSD, its employees, agents and contractors. As furthertonsideration, SSD agrees to operate, maintain and insure the Project facilities at its sole expense. J :\DOCS\43371 00 l\assignment. wpd 2 I I I 4. Representations and Warranties. SSD hereby represents and warrants that: . It has read and understands the requirements of the Grant Agreement, and accepts full liability and responsibility to comply with all of the duties in the Grant Agreement, express or implied, attributed to the Grantee therein. . It is familiar with and will comply with all applicable federal, state and local laws and regulations. . It has taken all necessary corporate action required to enter into this Assignment as a valid and binding obligation of SSD. . It has the knowledge and expertise to properly accomplish all c:A its duties under this Assignment and the Grant Agreement . It understands that the Project facilities are being constructed with public funds, for a public purpose. . It acknowledges that. upon termination c:A this Assignment or the Lease, the Project continues to be owned by the City and shall not be "improvements constructed by the Lessee8 for purposes c:A payments to be made under Section 7 of the Lease. . No hazardous materials shall be used or stored in the Project facilities except in accordance with applicable State and federal environmental laws and regulations. . These representations and warranties shall survive termination of this Assignment. J:\DOCS\4337100 l\assignmentwpd 3 5. Effective Date and Term. This Assignment and acceptance shall not take effect and neither party shall be bound until: · a resolution validly adopted by City Council approving this Assignment has become effective; · SSD has purchased the insurance policies described in Appendix 82 of the Grant Agreement and Sections 11 (a) and 11 (b) of this Assignment and provided City evidence of the same; and . the State has consented to this Assignment. Unless sooner term inated, the term of this Assignment shall commence on the Effective Date and continue until the earlier of the termination of the Lease covering the land on which the Project is located or December 31, 2004. All construction by SSD shall be completed no later than June 30, 2003. 6. Assignment The rights and responsibilities assigned and accepted hereby are between the parties hereto and the City is relying on the particular expertise and representations of SSD in entering into this Assignment. This Assignment shall not be assigned by SSD without the prior written consent of the City. 7. Subcontracts. Any subcontracts entered into by SSD shall be in compliance with Article 13 of the Grant Agreement. The City, the Department of Community and Economic Development and the State of Alaska are not liable for damages or claims from damages arising from any subcontractor's performance or activities under the terms of the subcontracts. J:\DOCS\4337100 l\assignment.wpd 4 I I I 8. LiabilityforClaims. SSD assumes all risk and liability for design and construction, and assumes liability for payment of additional sums, if any, in the event Project costs may exceed the funds available. 9. City's and State's Rights of Inspection. The City and State may, but are not obligated to, enter the area during normal business hours to inspect SSD's progress under this Assignment and the Grant Agreement and to review all records of SSD pertaining to this Assignment and the GrantAgreement. The City may, but is not obligated to, take possession and correct any hazardous or improper conditions therein if the City reasonably believes that such action is necessary. Unless the City elects otherwise in writing, such entry and retaking of possession shall continue only as long as necessary to correct the hazardous or improper conditions, and shall not terminate this Assignment or relieve SSD of any obligation hereunder. 10. Relationship of the Parties, No Third-Party Rights. SSD shall perform its obligation under this Assignment and the Grant Agreement as an independent contractor of the City. Neither SSD nor any employee of SSD shall represent themselves as employees or agents of the City. Nothing contained in this Assignment shall confer any right upon any person other than the parties hereto. 11. Insurance. (a) SSD shall acquire and maintain for the term of this Assignment the insurance required by Article 2 of Appendix 82 of the Grant Agreement, naming the City and the State as additional insureds. (b) During construction, SSD shall provide builder's risk insurance on an "all risk" completed value basis and protect the interests of the City, the State, SSD and SSD's J:\DOCS\43371001\assignment.wpd 5 subcontractors. Coverage shall include all materials, supplies and equipment intended for use in construction of the Project, whether located at the Project site or in transit. (c) Upon completion, SSD shall procure and maintain all risk physical damage insurance for the Project at replacement value, naming the City as additional insured. 12. Acts of Default. Failure of SSD to comply with any provision of this Assignment or the Grant Agreement shall be deemed an act of default and shall give the City the right, but nottheobligation, to terminate this Assignment upon ten (10) days' written notice to SSD. The City shall have all other rights and remedies, at law or in equity. 13. Amendment. This Assignment may not be amended except by a writing signed by the parties hereto. 14. Applicable Laws. This Assignment is governed by and construed in accordance with the laws of the State and is subject to all applicable Charter and ordinance provisions of the City. 15. Lease Rental. The Project facilities shall be included in the definition of Premises as defined in the Lease, but, for purposes of the Lease only, shall not be taken into account when determining the fair market rental value of the Premises or when making periodic adjustments to Rent as described in Section 3.04 of the Lease. This Section 15 shall survive termination of this Assignment J:\DOCS\43371001\assignmeut.wpd 6 I I I Dated (~/;;z (,/01 \,.~unr"" .:>...... Or Sl:tf/",# .'" ,t.J. ........ ~,.l\" .' ~, ,'\,,?Qo:" '1A ., ~... 0"." O~f ...,~... V ~ 41:, ~. ('.) "~~.. ..., ." ..~; e.... ~ .~ -+- ~- ..., : oor-"" ~:. .. .' Sr..i'AL .... ;r.,O: . .. " . . - ~ \ : - o \ -.- ! ~ ... .t't.' ./& ,'It.' _ .: "} "';''':''' i'...r-:- 1 "ICil..' ~..:' '~~ ~'9"," ...:a..1.... c..~ .... ~;;......--'./ ,c'......, ~...,v ~ V,_. '.: 0;:: p~ \.\~ '"'I.. , .. iifI4'-:il!~'I" Dated /" 12 t1, 1&1 " ~ CITY OF SEWARD A Municipal Corporation ~' By l{/4// W. Scott Jan e, City Manager Attest: ~~' P'" "- Patrick Reilly, City Cle SEWARD SHIP'S DRYDOCK, INC. By The State hereby consents to the above Assignment pursuant to Article 8 of the Grant Agreement, provided that this does not release the City from any rights or responsibilities under the Grant Agreement Dated~ J:\DOCS\43371001\assignment.wpd STATE OF ALASKA DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION OF COMMUNITY AND BUSINESS DEVELOPMENT ~I By 'V. Gran Administrator ff- 7 - COOK INLET COOK INLET I'IVT'\ln - - Exhibit One Calhoo}l M&endfuent 10/22/01 SEWER LIFT STATION MORRIS AVE NEW 10' FIRE MAIN .... ... '1EW 4' SEWER LINE --------------~-~--- ---------------------------------------- - EXISTING SEWER ------- NEW SPRINKLER RSER NEW EMPLOYEE FACILITIES NEW 10" FIRE MAIN NEW SHOP I I I I ;:----------------------------------- ---[------~------- --------------------------------, - EXISTING HYDRANTS _____ EXISTING 10" FIRE MAIN ~XISTING HYDRANT EXISTING HYDRANT OFFICE -u