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HomeMy WebLinkAboutRes1989-036 . . . Sponsored by Schaefermeyer 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; -1- . . . 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) -2- . . . TEHPORARY SUBLEASE APPROVAL THE PARTIES to this agreement are tF~CITY OF SEWARD (CITY), t/ (f c.-D ,;.-v ~ . 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 . a building approximately 5: C? ~ 0 square feet in size. , Temporary Sublease Agreement/Pruitt Page 2 I. . . 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 . . . 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 . . . 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 . . . 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 I. I I I . . 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 ::~~ . I s:..s~ ~M.6-t'2-, tI tZt!-o - Temporary Sublease Agreement/Pruitt Page 7 . . . 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 . . . 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 hL?--r /1 . .-' ~6 p'r.,..-A~ ~v/.'~,j ,. .. _f!.~~ .~~>~ a,,: V$$ /.-S,,...z1' Alo.... 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C;N~ ~ 'oORES'~~A~ ct'1 w4-- 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