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HomeMy WebLinkAboutRes1990-128 . . . Sponsored by: Schaefermever CITY OF SEWARD, ALASKA RESOLUTION NO. 90-128 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A SUPPLEMENTAL AGREEMENT FOR BERTHING FOR GLOMAR ADRIATIC VIII AT THE SEWARD MARINE INDUSTRIAL CENTER WHEREAS, ARCO Alaska, Inc., has operated the GLOMAR ADRIATIC VIII, a jack-up oil exploration and drilling platform in Alaska in 1990; and WHEREAS, the city of Seward through development of the Seward Marine Industrial Center has recognized the importance of marine- related industry to Alaska in general and Seward in particular; and WHEREAS, the city has through encouragement and development of coal exporting facilities, ship repair facilities and fish products facilities encouraged the development of a balanced economy for its local citizens; and WHEREAS, the city of Seward is convinced that the attraction of new business to Seward in a variety of industries is to the long term advantage of the residents of the city of Seward and in the public interest; and WHEREAS, the dock adjacent to Inlet Fish Producers, Inc., a seafood processing operation, was constructed under the terms of a lease agreement with the city of Seward whereby the city acquired ownership of that dock subject to rights of access to Inlet Fisheries, Inc.; and WHEREAS, the city has been able to accommodate the legitimate needs of Inlet Fish Producers, Inc., for access to the dock while at the same time assisting in the negotiation and conclusion of a berthing agreement with ARCO Alaska, Inc., for berthing of the GLOMAR ADRIATIC VII! in Seward during the winter season; and WHEREAS, the city and ARCO Alaska, Inc., have agreed to supplement the terms and conditions contained in the existing lease agreement and the applicable city tariff provisions in order to accommodate the special needs of the GLOMAR ADRIATIC VIII; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The city manager is authorized to execute on behalf of the city the Supplemental Agreement to Vessel Application and Berthing Conditions attached to this Resolution. -1- . . CITY OF SEWARD, ALASKA RESOLUTION NO. 90-128 Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 25th day of October, 1990. AYES: NOES: ABSENT: ABSTAIN: ATTEST: THE CITY OF SEWARD, ALASKA ~ Noll, Burgess, Dunham, Hilton, Krasnansky, Meehan, and Sieminski None None None APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska . (City Seal) :?~ lIP ~ Fred B. Arvidson City Attorney -2- . . . SUPPLEMENTAL AGREEMENT TO VESSEL APPLICATION AND BERTHING COND~~IQN~ THIS AGREEMENT is between the CITY OF SEWARD, Alaska, a home rule municipality (hereinafter "CITY") and ARCO Alaska, Inc" a Delaware corporation (hereinafter "VESSEL OPERATOR"). VESSEL OPERATOR is the operator by contract of the GLOMAR ADRIATIC VII I ("vessel") which is a jack-up off-shore dri 11 ing platform, The City Council of the City of Seward has found in Resolution 90-~ that it is in the public interest to provide berthing for the GLOMAR ADRIATIC VIII at the Seward Marine Industrial Center (SMIC). 1. Existinq Tariff, In order to accommodate the vessel with minimum disruption to others including the public, the parties have agreed to set out certain special conditions under which the vessel will be allowed to berth. Except as specifically noted herein, berthing and operation of the vessel within the SMIC harbor shall be subject to all applicable rules and regulations of the City of Seward, including, but not limited to, the City of Seward General Terminal Tariff No. 1 issued February I, 1990, and Amendment No.1 thereto effective April 18, 1990 ("the Tariff"). This Agreement is intended to be a supplement to the standard GLOMAR ADRIATIC VIII Berthing Agreement/Page 1 102590 . . . form Vessel Berthing Application (Subsection 300 of the Tariff) and the Conditions of Berthing (Subsection 310 of the Tariff). VESSEL OPERATOR shall promptly complete the Vessel Berthing Application, 2, Berthinq Location, . This Agreement applies to berthing of the vessel at the sheet pile dock in the SMIC basin adjacent to current facilities operated by Inlet Fish Producers, Inc" (the "dock"). VESSEL OPERATOR recognizes that CITY is obligated by lease agreement to provide access to the dock to Inlet Fish Producers, Inc., and its suppliers and customers. CITY has sought release from those obligations under that lease agreement in order to provide berthing for the vessel. CITY's obligations hereunder to provide berthing for the vessel are contingent upon appropriate consent being obtained from Inlet Fish Producers, Inc. 3, Term. CITY agrees to provide berthing at the dock from the date of this Agreement through midnight on March 10, 1991, and, if required by Inlet Fish Producers, Inc., to the north of the dock until midnight April 15, 1991, The parties recognize that utilization of the dock by VESSEL OPERATOR through the winter season in Seward will have potential adverse impacts on other users of the dock in the SMIC. GLOMAR ADRIATIC VIII Berthing Agreement/Page 2 102590 4. Dock Use by Inlet Fish Producers, Inc. . It is anticipated that Inlet Fish Producers, Inc., may require use of the dock for its own operations after 12:01 A.M. on March 10, 1991, and therefore, VESSEL OPERATOR's commitment to vacate the dock in a timely way as required by Inlet Fish Producers, Inc" is an essential term and condition of this Agreement. If VESSEL OPERATOR does not obtain written consent to remain at the dock to a date later than March 10, 1991, from Inlet Fish Producers, Inc" by March 1, 1991, then by March 10, 1991, VESSEL OPERATOR will move the vessel by winch or other appropriate means to the north of the dock in order to provide access to the dock by Inlet Fish Producers, Inc., and its . customers and suppliers, VESSEL OPERATOR shall be solely responsible for and shall defend CITY from any claim by Inlet Fish Producers, Inc., or third parties including its customers or suppliers relating to use of the dock by the GLOMAR ADRIATIC VIII, 5, Fee for Dockaqe. For the convenience of the parties and also in recognition of the potential disruption of normal operations at the dock occasioned by berthing of the vessel, VESSEL OPERATOR agrees to pay dockage for all or any portion of the period ending April 15, 1991, in the amount of $60,000 payable in two install- ments, the first installment of $30,000 being due November 2, 1990, and the second installment of $30,000 being due January 15, . GLOMAR ADRIATIC VIII Berthing Agreement/Page 3 102590 . . . 1991, ARCO specifically understands that should it remove the GLOMAR ADRIATIC VIII earlier than April 15, 1991, no rebate or refund of the $60,000 shall be paid by CITY, 6. Utilities, CITY will provide electrical service to the location marked in RED on the attached Exhibit A. CITY provides potable water to the approximate location marked in BLUE on the Exhibit A. CITY agrees to make reasonable efforts to provide temporary water service from such location to the vessel as required and reasonably requested by VESSEL OPERATOR. CITY will provide sanitary sewer to the location marked in GREEN on the attached Exhibit A which has been agreed by the parties as an acceptable service location. The term "sewer" means sanitary sewer sufficient for use by employees and crew of VESSEL OPERATOR on the vessel. It does not include, nor is CITY responsible for providing, special treatment or handling facilities for industrial waste, waste oil products, oil or contaminated water, or any hazardous material associated with the vessel or any vessels that act as tenders to the GLOMAR ADRIATIC VIII, CITY will cooperate and assist in reasonable requests for engineering and other information in the possession of CITY to assist VESSEL OPERATOR in extension of the utility services or upgrading for use by the vessel while berthed at the dock. All GLOMAR ADRIATIC VIII Berthing Agreement/Page 4 102590 . . . costs associated with those extensions, upgrading, or maintenance thereof are at the sole cost and expense of VESSEL OPERATOR. All utility service fees and charges established by the Tariff shall remain in full force and effect including reimbursement of CITY for special services, 7. Suitability of the Dock and Public Facilities. CITY makes no representations or warranties as to the dock's load bearing or side load capacities including the suitability of mooring dolphins, VESSEL OPERATOR has examined the dock and related facilities and has satisfied itself that they are adequate for the intended use by VESSEL OPERATOR. VESSEL OPERATOR has also prepared and reviewed a side-scan sonar survey of the SMIC harbor basin and immediate seaward submerged lands. VESSEL OPERATOR will, by November 30, provide a copy of that data for information to CITY, Both parties understand this information is supplied solely for the casual use by CITY and is not to be relied upon for formal use of a side-scan draft survey, There is no warranty of any kind with regard to the accuracy of this information supplied by ARCO or its subcontractor, In deciding to berth the vessel, VESSEL OPERATOR has relied primarily upon information and data generated by VESSEL OPERATOR including the side-scan survey and has had reasonable opportunity to verify the accuracy of any information GLOMAR ADRIATIC VIII Berthing Agreement/Page 5 102590 . . . provided by CITY, VESSEL OPERATOR is specifically taking the risk that the dock, the basin or the public facilities provided by CITY are inadequate or unsuitable for use by the vessel. VESSEL OPERATOR understands and agrees that the SMIC, the basin and harbor facilities including the dock, were not designed nor intended for use by vessels such as the GLOMAR ADRIATIC VIII. 8. Assiqnment. In entering into this Agreement, CITY is relying upon the reputation and experience of VESSEL OPERATOR and its unique qualifications as an experienced, reliable and financially responsible vessel operator. Therefore, this Agreement may not be transferred or assigned by VESSEL OPERATOR without CITY's consent which will not be unreasonably withheld. 9, Extraordinary Costs. VESSEL OPERATOR agrees to promptly pay CITY any extraordinary costs associated with CITY's performance of its obligations under this Agreement including, but not limited to, any required governmental approvals. If such approvals are required including Federal Maritime Commission, state or federal environmental agencies, or other regulatory bodies, CITY agrees to assist in the joint preparation and approval thereof, CITY agrees to document any expenses incurred including expenditure of staff time. The parties understand they have not yet had the GLOMAR ADRIATIC VIII Berthing Agreement/Page 6 102590 . . . opportunity to fully review and determine whether additional approvals or permits will be required, DATED this :< r- day of OCTo a~F< , 1990. THE CITY OF SEWARD, ALASKA ~~c~-'y~. - ~ ATTEST: APPROVED AS TO FORM: PERKINS COIE, Attorneys for the City of Seward, Alaska ~Il/~ Fre B, Arvidson City Attorney (City Seal) GLOMAR ADRIATIC VIII Berthing Agreement/Page 7 102590 ~u ~~ - 0 ,\ ' .0 0 ,.. \~ 0 - 0 6~ , ...... ~.. - ::::-:--- . . , .- .- i.l. rcrrQ. /CA'- - WA1'!,:2.. ~ >fW\~ - - ;--~ / "\ / 1 ( -- I I I "\ / I ( I {--J I t / \ ( -- \ \ / --' . BOP-T \1,E1 \1 TRJI.\1El..o1.fT -