HomeMy WebLinkAboutRes2003-098
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Sponsored by: Shealy
CITY OF SEWARD, ALASKA
RESOLUTION 2003-98
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING RESOLUTION 2003-83 AUTHORIZING THE CITY
MANAGER TO SELECT ALTERNATIVE NO.3 FOR THE GATEWAY TO
FOREST ACRES WATERLINE AND TAKE STEPS NECESSARY IN
ORDER TO PROVIDE ADDITIONAL RESIDENTIAL DEVELOPMENT
WHEREAS, Afognak Construction and Excavating, Inc. has proposed alternative No.3 as
developed by CRW Engineering Group, LLC and agreed to the following conditions:
1. Furnish a 60 ft right-of-way at no cost to the city;
2. Pay any cost above $566,571, by means ofa letter of credit in substantially the same
form as presented at this meeting (attached).
3. Enter in to an Agreement to pay for waterline construction in substantially the same
form as presented at this meeting (attached); and
WHEREAS, the City Council authorized the City Manager in Resolution 2003-83 to take all
steps necessary in order that alternative No.3 as attached consisting of a waterline from Gateway to
Oak and Ash Streets be constructed subject to the above conditions. This authority expired
September 1, 2003; and
WHEREAS, the First National Bank of Alaska has approved an Irrevocable Standby Letter
of Credit for Afognak Construction and Excavating, Inc up to the aggregate amount of$157,000 to
insure payment to the City of Seward subject to an extension ofthe deadline to September 15,2003
due to a delay in the issuance of a title policy caused by the high level of demand upon First
American Title of Alaska.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Council authorizes the City Manager to take all steps necessary in
order that alternative No.3 as attached consisting of a water line from Gateway to Oak and Ash
Streets be constructed subject to the above conditions. This authority expires September 15,2003 at
5:00 pm Alaska time.
Section 2. This resolution shall take effect immediately upon its adoption.
CITY OF SEWARD, ALASKA
RESOLUTION 2003-98
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8th day of
September, 2003.
THE CITY OF SEWARD, ALASKA
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Stu Clark, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN;
Dunham, Orr, Valdatta, Amberg, Shafer
Branson
Clark
None
ATTEST:
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(City Seal)
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COUNCIL AGENDA STATEMENT
Meeting Date: September 8, 2003
From: Phil Shealy, City Manager
Agenda Item: Gateway/Forest Acres Water System
BACKGROUND & JUSTIFICATION:
The City began working on the Gateway and Forest Acres water system project by
accepting a grant from ADEC to investigate sizing and routing requirements in Res #2000-
006. Design of the system by CRW Engineering Group was authorized by Res #2001-069
and the construction grant in the amount of $566,571 was approved in Res #2002-087.
Four alternative routes have been the subject of considerable discussion with Alt #1
through the Griswold property and the Alt #2 thru the Schafer property being the initial
routes to meet the requirements of increased flow capacity.
In order to meet these objectives and to provide development opportunities and enhance
the tax base within the city, Mr. Schafer has proposed that in return for selecting Alt #3, he
will meet a number of conditions including capping the city expense at the grant amount,
providing the necessary right-of-way at no cost and constructing the necessary
improvements including sewer as part of a subdivision agreement for abutting properties.
He further agreed to provide a letter of credit and enter into a waterline construction
agreement by September 1, 2003 as required by the City Council. First National Bank of
Alaska has approved an Irrevocable Letter of Credit for Afognak Construction &
Excavating, Inc to insure payment to the City of Seward but needs until September 15,
2003 for the issuance of a title policy by First American Title of Alaska due to the high level
of demand they are currently experiencing.
CONSISTENCY CHECKLIST: Yes No
1. Comprehensive Plan X
2. Strategic Plan X
3. Other
FISCAL NOTE:
This project is funded by a $396,600 grant and a City contribution of $169,971. Under the
agreement with Afognak, the City is not expected to make further financial contributions
toward Alternate #3 route, as Afognak has agreed to pay any additional costs above
$566,571. If the City seeks to install the water line along the East-West Hemlock route at
a later date, that would be done entirely at the City’s expense
___________________________
Approved by Finance Department
RECOMMENDATION:
Council approve Resolution 2003-93 Amending Resolution 2003-83 authorizing the City
Manager to select Alt #3 with Afognak agreeing to furnish a letter of credit and sign a
waterline construction agreement by September 15, 2003.