HomeMy WebLinkAboutRes1989-036
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 89-036
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SEWARD, ALASKA
FOR A TEMPORARY SUBLEASE APPROVAL
WHEREAS, on March 24, 1989 the tanker vessel EXXON VALDEZ
ran aground in Prince William Sound; and
WHEREAS, the resulting oil spill has spread throughout
the regions of Prince William Sound including those waters adjacent
to Resurrection Bay; and
WHEREAS, the oil contamination has been washed ashore in
Resurrection Bay and in adjacent areas including the Kenai Fjords
National Park and the Caines Head State Park; and
WHEREAS, preservation of the natural environment is of
critical concern to the citizens of the city of Seward; and
WHEREAS, untold numbers of animals, inc luding fish, birds
and sea mammals have been contaminated by oil from the oil spill;
and
WHEREAS, the city of Seward has been requested to assist
~n every way to minimize the impact of the oil spill; and
WHEREAS, negative impacts of the oil spill include not
only destruction of the natural wildlife but severe economic
impacts for residents of the city of Seward, including fishermen
and those who rely upon the fishing industry; and
WHEREAS, the city has been requested by the United States
Coast Guard, the Alaska Department of Environmental Conservation,
and various private entities including Exxon to make available city
resources for the mitigation of the environmental impacts of the
oil spill; and
WHEREAS, the city has been requested by Seward Ship
Chandlery to approve a temporary sublease of a portion of the
property leased to that company for the construction and operation
of a bird rescue center; and
WHEREAS, the lessee, Seward Ship Chandlery, has provided
assurances that the approval of the sublease in no way reduce its
commi tments under the terms of the lease approved by the ci ty
Council on September 9, 1988;
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 89-036
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. The temporary sublease approval attached to
this resolution is hereby approved.
Section 2. Due to the emergency nature of this
situation, this resolution shall take effect immediately.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, this 24th day of April, 1989.
CITY OF SEWARD, ALASKA
AYES:
NOES:
ABSENT:
ABSTAIN:
GIESELER, DUNHAM, HILTON, MEEHAN, NOLL, O'BRIEN, SIMUTIS
NONE
NONE
NONE
ATTEST:
APPROVED AS TO FORM:
PERKINS COlE,
Attorneys for city of Seward
By: 7~ 11JJ~
Fred B. Arvidson
City Attorney
(City Seal)
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TEHPORARY SUBLEASE APPROVAL
THE PARTIES to this agreement are
tF~CITY OF SEWARD (CITY),
t/ (f c.-D ,;.-v ~
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SEWARD SHIP CHANDLERY (LESSEE) and
(SUBLESSEE). This agreement is made in order to facilitate
efforts by the united States Coast Guard, the State of Alaska,
and various private and public entities to minimize damage and
impact of the oil spill resulting from the EXXON VALDEZ which ran
aground in Prince william Sound on March 24, 1989.
1. Existing Lease Not Affected.
By Lease Agreement dated September 9, 1988, CITY and
LESSEE agreed to lease certain lands at the Seward Marine
Industrial Center for the development of ship repair facilities.
LESSEE and CITY do not intend, by this agreement, to alter in any
way the terms and conditions of that agreement, but rather, to
provide a temporary approval by CITY for the sublease of some of
the land leased to LESSEE under that Lease Agreement in order to
provide a place for SUBLESSEE to construct and operate an
emergency bird rescue center and for no other purpose.
2. Area A9proved.
The area approved for temporary sublease is outlined in
RED on the attached Schedule A which is incorporated by reference
and includes approximately ;10, C::>OC> square feet of ground and
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a building approximately
5: C? ~ 0 square feet in size.
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Temporary Sublease Agreement/Pruitt
Page 2
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3. Approvals bv Other Agencies.
SUBLESSEE agrees to promptly obtain all necessary permits
and approvals from the Department of Environmental Conservation
of the State of Alaska for the construction, operation, and
disposal of the facilities and by-products, including waste
materials prior to operation, and to submit written approvals to
CITY. SUBLESSEE recognizes that CITY's public interest concerns
include protection of the Seward Marine Industrial Center from
all impacts of SUBLESSEE's operations including long-term
environmental impacts such as impact on CITY's water and sewer
systems and contamination of ground water or the subsurface.
4. Environmental Impacts/Hazards.
SUBLESSEE shall promptly obtain written assurances from
the State of Alaska Department of Environmental Conservation that
its operations on the leased land comply with all requirements of
that department and SUBLESSEE shall be responsible for the
handling and proper disposal of all waste oil, rags, oily water
and other contaminated equipment or instruments of any kind
relating to SUBLESSEE's operations. The parties specifically
recognize that CITY's sewer and waste treatment facilities are
NOT designed nor capable of handling the types of contaminents
likely to be generated from SUBLESSEE's operations and,
therefore,
Temporary Sublease Agreement/Pruitt
Page 3
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extraordinary measures may be required to assure that City of
Seward facilities are not damaged. SUBLESSEE and LESSEE both
agree to indemnify, defend, pay and hold CITY harmless from any
and all damages, or claims of damages against CITY by reason of
the operations of SUBLESSEE and LESSEE under this agreement.
5. Access by CITY.
In recognition of the emergency nature of SUBLESSEE's
request, and the uncertain technical requirements for the
operation of the center, given in part the experimental nature of
some of the work likely to be done, CITY shall be promptly
provided copies of all correspondence, approvals and other
communications between SUBLESSEE and state and federal agencies
regarding SUBLESSEE's operations on the land in order to provide,
continuously through the term of the sublease, sufficient
information to CITY to assure CITY that adequate measures are
taken to protect the Seward Marine Industrial Center. CITY shall
have access at all times to the subleased facilities to assure
compliance with the Lease Agreement and this agreement, however
such rights of access shall not be construed as imposing any
obligation on CITY to inspect the operations.
6. Obligations of LESSEE Under Existing Lease Not Reduced.
The parties also agree that this approval for SUBLESSEE
shall not in any way alter or reduce LESSEE's obligations under
the Lease Agreement dated September 21, 1988. The risk of non-
compliance with the terms of the Lease Agreement
Temporary Sublease Agreement/Pruitt
Page 4
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shall be solely born by LESSEE and LESSEE shall not be excused
from performance or granted any additional time or delay for
performance by reason of LESSEE's sublease of a portion of its
facilities to SUBLESSEE or SUBLESSEE's operations thereon,
including hold-overs or disputed operations. LESSEE has examined
the Lease Agreement and determined that the sublease will not
impair LESSEE's ability to perform and even if it does, that
LESSEE is willing to take that risk. LESSEE's obligations
include, but are not limited to LESSEE's requirement to have in
place on the leased land a shiplift cradle system in accordance
with the provisions of Section 3.1 of the Lease Agreement.
Employment by SUBLESSEE on the leased land shall NOT be
considered employment by LESSEE under the provisions of ARTICLE 6
of the Lease Agreement. Approval of the sublease shall not be
considered a waiver of any rights by CITY under the terms of the
Lease Agreement and all obligations of LESSEE shall continue.
7. TemDorarv Nature of ApDroval.
This approval shall run for a period not to exceed 120
days from the date hereof, and may not be renewed except with
approval of CITY. This agreement is subject to the provisions of
Section 7.05.410 of the Seward Code and is subject to approval by
the City Council of the City of Seward at its next regularly
scheduled meeting (or at a special meeting called for the purpose
of approving this agreement). All risk of non-approval, for
whatever reasons, by CITY are on LESSEE and SUBLESSEE.
Temporary Sublease Agreement/Pruitt
Page 5
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8.
Public Interest Determination.
The parties recognize that as the oil spill clean-up and
mitigation measures continue in Prince william Sound that the
leased land may be of more benefit to the public interest by
being used for some purpose other than as a bird rescue center.
For example, if vessels require repair facilities in order to
continue efforts to mitigate the damages caused by the oil spill,
it might be in the public interest to either discontinue
operations of a bird rescue center at this location in order to
make the leased land available for vessel repair and refitting.
Accordingly, this agreement may be cancelled by CITY upon ~~
days' notice if CITY, in its discretion, determines that the
public interest would be better served by some other use of the
property. If such a cancellation occurs, LESSEE and SUBLESSEE
shall each bear all costs of removing all equipment, dismantling
the bird rebcue station and all associated materials, including
those contaminated.
THIS is the entire agreement concerning the operations
contemplated by this agreement and may be modified only in
writing.
DATED this ~ day of
L7~~
, 1989.
Temporary Sublease Agreement/pruitt
Page 6
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APPROVED AS TO FORM:
PERKINS COIE
Attorneys for the
City of Seward
By: ?.-..IV ~
Fred B. Arvidson
CITY:
CITY OF SEWARD
LESSEE:
JAMES T. PRUITT d/b/a
SEWARD SHIP'S CHANDLERY
BY~'Ar;;?~J
::~~
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tI tZt!-o -
Temporary Sublease Agreement/Pruitt
Page 7
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STATE OF ALASKA )
) SSe
THIRD JUDICIAL DISTRICT ) -tA .
THIS IS TO CERTIFY that on this / -f/ day of~1 ,
1989, before me, the undersigned, a Notary Public i and for the
State of Alaska, personally appeared DARRYL SCHAEFERMEYER and
LINDA MURPHY, known to me and to me known to be the Deputy City
Manager and City Clerk of the City of Seward, and known to be the
individuals named in and who executed the foregoing document, and
they acknowledged to me that they were authorized to execute the
foregoing document by authority granted them in the Municipal
Code of Ordinances for said City and for the uses and purposes
therein set forth.
WITNESS my hand and notarial seal the day and year
first hereinabove written.
A/;;~ a~~
Notary Public in and for Alaska~
My Commission Expires: -f"-02/- 2-/
STATE OF ALASKA )
) SSe
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this Ii day of ~, 1989,
before me, the undersigned, a Notary Public in and for the State
of Alaska, personally appeared JAMES T. PRUITT, d/b/a SEWARD
SHIP'S CHANDLERY, known to me and to me known to be the
individual named in and who executed the foregoing document, and
he acknowledged to me that he was authorized to execute the
foregoi~g document by authority granted him in the Bylaws or by
resolut~on of the Board of Directors of said corporation for the
uses and purposes therein set forth.
WITNESS my hand and notarial seal the day and year
first hereinabove written.
or AXSk~
0"'1 2-3, 7 /
Temporary Sublease Agreement/Pruitt
Page 8
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STATE OF ALASRA
SSe
THIRD JUDICIAL DISTRICT
THIS IS TO CERTIFY that on this ,c../ day of ~ , 1989,
before me, the undersigned, a Notarr Public in and for the State
of Alp.jlka, personally appeared 14 -ru..fU.JA~
of 1L-t:e<>) ,..J c..- known to me and to me known to
be the individual named in and who executed the foregoing
document, and he acknowledged to me that he was authorized to
execute the foregoing document by authority granted him in the
Bylaws or by resolution of the Board of Directors of said
corporation for the uses and purposes therein set forth.
WITNESS my hand and notarial seal the day and year
first hereinabove written.
r Al;?Jttfl
ajw/529
Temporary Sublease Agreement/Pruitt
Page 9
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SEWARD MARINE INDUSTRIAL P
FOR SEWARD SHIP'S CHANDLERY
Raymond t1. 8uroess RPLS 3753-5
. Box 228. Sewerd.AK 99664
pn.907-22"'-3026
Job tlo. 12"'2-68
CITY OF 5EWAA.O.~r.J. October 1988