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HomeMy WebLinkAboutRes2009-099 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2009 -099 A RESOLUTION OF THE SEWARD CITY COUNCIL AUTHORIZING THE CITY MANAGER TO TERMINATE THE LEASE WITH WOMEN'S DIVISION OF THE BOARD OF GLOBAL MINISTRIES OF THE UNITED METHODIST CHURCH FOR LOTS 19, 20 AND 21 OF THE MARATHON ADDITION TO THE CITY OF SEWARI), EFFECTIVE OCTOBER 15, 2009 WHEREAS, effective April 9, 2003, the City of Seward entered into a Lease Agreement with the Women's Division of the Board of Global Ministries of the United Methodist Church ("Women's Division ") for the land formerly occupied by Wesley Rehabilitation and Care Center, Inc.; and WHEREAS, the term of the original Lease Agreement was three years, with the City exercising options to extend the lease agreement to April 9, 2008, followed by a subsequent Agreement dated October 16, 2008, authorizing a lease of the facility through December 31, 2009; and WHEREAS, the City has completed construction of the Seward Mountain Haven long- term care replacement facility and through its operator, Providence Health & Services, has transitioned all occupants into the new facility and therefore has no further use of the Wesley facility; and WHEREAS, the City and the Women's Division desire to terminate the lease agreement effective October 15, 2009, with the City agreeing to pay lease payments through the initial term of December 31, 2009 at a monthly rate of $1,500. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF TIIE CITY OF SEWARI), ALASKA, that: Section 1. For the reasons stated in the recitals and incorporated herein by this reference, it is in the public interest to terminate the existing lease as soon as practicable in order to alleviate the City's obligations to continue to maintain and operate a leasehold interest in a facility no longer being used by the City. The City Manager is authorized and directed to terminate the Lease with the Women's Division in substantially the form as presented at this meeting. Section 2. The City agrees through its operator Providence Health & Services, to pay the remaining lease payments of $1,500 per month through the term of December 31, 2009, but the CITY OF SEWARD, ALASKA RESOLUTION 2009 -099 parties agree the City shall have no further obligations to maintain the premises beyond October 15, 2009. Section 3. This resolution shall take effect 30 days after adoption and posting. PASSED AND APPROVED by the City Council of Seward, Alaska this 20th day of October. 2009. THE CITY OF SEWARD, ALASKA 2L�GW� c' Willard E. Vice Mayor AYES: Bardarson, Keil, Valdatta, Dunham NOES: ABSENT: Smith, Corbridge ABSTAIN: -" VACANT: One ATTEST: Jean Lewis, City Clerk, CMC (City Seal) w ♦T..:..,C,,, � 4 � E W' • • • �..J Si..d .a..a r 1 • • 10." .,��F O :�p,t Council Agenda Statement Meeting Date: October ZO , 2009 pot) v. l From: Kristin Erchinger, Finance Director e Through: Phillip Oates, City Manager COW � t �st‘ Agenda Item: Lease Amendment with Women's Division of the Board of Global Ministries of the United Methodist Church for the long -term care facility BACKGROUND & JUSTIFICATION: On April 9, 2003, the City entered into a Lease Agreement with the Women's Division of the Board of Global Ministries of the United Methodist Church for Lots 19, 20 and 21 of the Marathon Addition to the City of Seward. The term of the Lease Agreement was three years, with the option to extend for two one -year periods. The City exercised its option to extend, and the extended term expired in April 2008. The lease was subsequently amended on October 16, 2008, with an expiration of December 31, 2009. Since the City and Providence have transitioned out of the Wesley facility and into the new Seward Mountain Haven Facility, it no longer makes sense for the City to maintain responsibility for the Wesley facility. Therefore, the City has requested a termination of the lease of the Wesley building effective October 15, 2009. In exchange for this earlier termination, the City has agreed to pay the rental payments of $1,500 per month through the original term of December 31, 2009. The primary benefit of the earlier termination of this lease by the City is that the staff of Providence will no longer be required to provide daily maintenance of the boilers and heating system. The logistics of this ongoing maintenance is difficult given their small maintenance staff, and given the new requirements of moving into a facility consisting of five buildings. In addition, the City benefits from this lease termination by having no further responsibility as it relates to maintaining the facility. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures or Other Plans or Policies: Yes (List Below) No FISCAL NOTE: Providence Seward Medical & Care Center will continue to pay the Women's Division the agreed -upon $1,500 per month lease payment through December 31, 2009. However, there will be no further financial or maintenance requirements placed on the City as a result of early termination of the lease. Approved by Finance Department ✓ePS.iP T,e ATTORNEY REVIEW: yes RECOMMENDATION: The City Council approve Resolution No. 2009- / l authorizing the early termination of the lease with the Women's Division for Lots 19, 20, and 21 of the Marathon Addition to the City of Seward.