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CITY OF SEWARD, ALASKA
RESOLUTION NO. 94-199
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, AUTHORIZING THE RELEASE OF
STATE CRUISE SHIP DOCK GRANT FUNDS FOR THE PURPOSE
OF DREDGING THE ALASKA RAILROAD DOCK APPROACH
CHANNEL AND EAST FACE
WHEREAS, the 1993 Legislature granted $450,000 to the City of Seward for study of
a cruise ship dock; and
WHEREAS, this grant funded a significant part of the B Street Dock study; and
WHEREAS, because efforts to obtain commitments from probable users of the B Street
Dock have been unsuccessful, there are no immediate plans for dock construction; and
WHEREAS, the Alaska Railroad has requested that the remaining grant funds be released
by the City to perform dredging of the Railroad Dock and its approach channel; and
WHEREAS, in exchange for the commitment of City grant funds; the Alaska Railroad
has proposed a repayment plan which would direct wharfage and dockage revenues attributable
to the visits of the passenger vessel Universe and the state ferry Tustumena, which otherwise
would be unable to dock at the Railroad Dock, to the City of Seward; and
WHEREAS, it is the intent of the City of Seward to use payments thus received to
advance dock development concepts;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City of Seward hereby authorizes the release of remaining funds in State
Grant No. 8/94-025 to the Alaska Railroad for dock and approach channel dredging provided that
the grant funds are fully repaid in accordance with the terms set forth in the attached December
6, 1994, letter from Alaska Railroad Corporation Chief Executive Officer Robert Hatfield.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 12th
day of December, 1994.
CITY OF SEWARD, ALASKA
RESOLUTION NO. 94-199
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
THE CITY OF SEWARD, ALASKA
~ w. r~
Dave W. Crane, Mayor
Anderson, Crane, Darling, Deeter, King, Sieminski
O'Brien
None
None
APPROVED AS TO FORM:
Wohlforth, Argetsinger, Johnson & Brecht,
Attorneys for the city of Seward, Alaska
~f~
City Attorney
(City Seal)
12-06-1994 05:23PM
ARRC PROCUREMENT
907 265 2439 P.02
ALASKA RAILROAD CORPORATION
.tporare Address: P.O. BDx 1()7500. AnchoragG Alaska 99510
327 w: Ship Cn:ek Aw:oue, Ancllorage, Alaska 99501
December 6, 1~~4
Dave W. Crane, Mayor
City of Seward
P.O. Box 167
Seward, Alaska 99664-0167
Subject: Railroad Dock Dredging Agreement
Dear Mayor Crane:
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In return for the release to the Alaska Railroad Corporation
(ARRC) by the City of Seward (City) of the sum of $323,000 from
the balance of a legislative grant for the City'S B Street Dock
study, ARRC agrees to; 1) direct the Alaska Marine Highway system
to pay directly to the City all fees generated by the docking of
the Marine Highway vessel at the ARRC Seward dock and; 2) direct
the port of call vessel 'Universe' to pay directly to the City
all dockage and wharfage fees generated by the docking of the
Universe at the ARRC Seward dock. ARRC shall provide these
directions through amendment of our tariff and such direction
shall remain in effect until the City has received reimbursement
of $323,000.
It is understood that the sum of $323,000 to be released by the
City to ARRC under the preced~ng paragraph will be applied by
ARRC to pay the cost of dredging the ARRC dock and approach in
Seward before May 15, 1995. Any amount from the funds released by
the City to ARRC that is not so applied by May 15, 1995 shall be
returned to the City and shall be applied to offset the amount of
reimbursement directed from the Universe and Alaska Marine
Highway System.
~he amount released by the City to ARRC under the first paragraph
above will not be construed to be a loan by the City to ARRC, and
will not bear interest.
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TOTAL P.02