HomeMy WebLinkAboutRes2011-026 Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -026
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
CONTRACT WITH BRICE INC. TO PRODUCE 47,500 CUBIC YARDS OF
RIP RAP IN THE CITY QUARRY AT FOURTH OF JULY CREEK, TO
WAIVE THE ROYALTY OF $5.00 PER TON IN EXCHANGE FOR 22,500 OF
THE 47,500 CUBIC YARDS BEING LEFT IN THE QUARRY FOR THE
CITY IN CLASS IV, CLASS III, CLASS II SEGREGATED STOCKPILES,
AND TO IMPROVE THE CITY ROCK SCALES TO STATE OF ALASKA
CERTIFIED STANDARDS.
WHEREAS, the City desires to have available a quantity of large Class IV, Class III and
Class II riprap available for projects within the Seward service area; and
WHEREAS, the current stockpiles of Class IV, Class III and Class II riprap have been
depleted as a result of projects related to flood mitigation in the Seward area; and
WHEREAS, Brice Inc., is currently mobilized and operating in the Seward area producing
rock from the Borough Quarry for a dock project in Nikiski; and
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WHEREAS, Brice Inc. needs an additional 25,000 Cubic Yards of Class IV riprap that
cannot be obtained from the Borough Quarry; and
WHEREAS, Brice is offering to produce, classify and stockpile Class IV, Class III and Class
II riprap for use by the City, an amount of 22,500 Cubic Yards and improve the City owned rock
scales to meet the State of Alaska certified standards, in lieu of paying a quarry rock royalty fee.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to enter into a contract with Brice Inc., for
the production of Class IV, Class III and Class II riprap in the City Quarry at Fourth of July Creek;
25,000 Cubic Yards of which will belong to Brice Inc. and 22,500 Cubic Yards will be classified and
stockpiled by Brice and owned by the City to include approximately 50,000 of Class II and Class I
(unclassified) in the quarry by Brice for future City needs or sale.
Section 2. The production costs associated with drilling, bumping, classifying and
stockpiling this material in its entirety, will be absorbed solely by Brice Inc. at no cost to the City.
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -026
Section 3. This resolution shall take affect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, on this 18 day of
April, 2011.
THE CIT + SEWARD, ALASKA
Willard E. Dunham, Mayor
AYES: Valdatta, Bardarson, Keil, Shafer, Casagranda, Dunham
NOES: None
ABSENT: Smith
ABSTAIN: None
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ATTEST:
Johanna Kinney, CMC
(J City Clerk
(City Seal)
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Council Agenda Statement
Meeting Date: April 18, 2011
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To: Phillip Oates, City Manager }
From: W.C. Casey, Public Works Director 1 P.
Agenda Item: Agreement between the City of Seward and Brice
Inc. to produce rock from the City Quarry,
producing 22,500 cubic yards of classified material, approximately 50,000
cubic yards of unclassified material and improving the rock scales in lieu of
paying a quarry rock royalty fee for 25,000 cubic yards of class IV riprap
BACKGROUND & JUSTIFICATION:
On April 6, 2011, a staff member from Brice Inc. inquired about possibly producing Class IV riprap
in the City Quarry located at Fourth of July Creek. Brice Inc. has a dock project in Nikiski and has an
agreement to operate in the Borough Quarry adjacent to the Seward KPB Waste Transfer Facility and
produce the required quantities of quarry armor rock for their project. After several days of
development in the Borough Quarry, Brice Inc. realized that they were not going to be able to
produce the quantity or quality of rock required to meet their project demands. Brice Inc. contacted
the Public Works Department to inquire about the feasibility of producing the remaining quantities
of armor rock for their project out of the City's Quarry located at Fourth of July Creek. Brice Inc. has
offered to produce 22,500 cubic yards of Class I, II III and IV rock for the City's use in future
projects and approximately 50,000 cubic yards of unclassified material in exchange for 25,000 cubic
yards of Class IV armor rock without being charged the $5.00 /cubic yard royalty that the City of
Seward has historically charged. There will also be approximately 22,500 cubic yards of Class I and
II fractured rock that will be stockpiled and left in the quarry for the City's future use or sale. The
remaining unclassified material will be stockpiled for future use.
The estimated value of the Class IV rock that Brice Inc. will take out of the quarry is $250K. The
estimated value of the Class I, II, III and IV rock that will be organized in classified stockpiles is
$350K. There will also be approximately 50,000 cubic yards of unorganized Class I & II fractured
rock that has a minimum value of $5 /cubic yard. As a part of this Agreement, Brice Inc. will also be
responsible for improving the set of rock scales currently in the quarry, which will meet State of
Alaska Standards. Brice Inc. has also agreed to elevate the floor of the rock pit to an elevation that
exceeds the groundwater levels during high water events. This will avoid future challenges
associated with the current flooding hazard during certain weather events in Seward.
INTENT:
For the City Council to authorize the City Manager of the City of Seward to enter into an agreement
with Brice Inc. to obtain 25,000 cubic yards of Class IV riprap in lieu of paying a quarry rock royalty
fee and producing 22,500 cubic yards of classified material and approximately 50,000 cubic yards of
unclassified materials to stockpile for the City's use. The produced rock will be stockpiled in the
quarry available for future projects with certified scales available for accounting purposes, readily
available for transport.
CONSISTENCY CHECKLIST:
Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive
Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
Other:
FISCAL NOTE:
There are no funding requirements for this contract. This contract has no cost to the City, but the
approximate value of the rock which will be produced for the City and left for City use is $400,000.
Approved by Finance Department:
RECOMMENDATION:
City Council approve Resolution 2011 -026 authorizing the City Manager to enter into a contract with
Brice Inc., in substantial form presented at this meeting, to produce 25,000 cubic yards of Class IV
armor rock for their use and produce, classify and stockpile in organized piles for the City (22,500
cubic yards) of Class IV, Class III & II rock. The remaining approximate 50,000 cubic yards of
unclassified, Class II and I produced rock, will be retained and owned by the City.