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CITY OF SEWARD, ALASKA
RESOLUTION NO. 2000-009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING THE SHIPLIFT MAINTENANCE AND OPERATING
AGREEMENT BETWEEN THE CITY OF SEW ARD,ALASKAAND SEWARD
SHIP'S DRYDOCK, INC.
WHEREAS, since 1980 the City of Seward ("City") has provided for the development of the
Seward Marine Industrial Center ("SMIC"), and the City expended over $40 million in construction of
improvements to the area, including a syncrolift ship lift system, ship transfer system, and related rail
systems ("Shiplift Facility"); and
WHEREAS, by Resolution No. 95-001, the City Council approved the long-term lease of Lot
1, Block 7, SMIC ("Lease") and a Shiplift Maintenance and Operating Agreement with Seward Ship's
Drydock, Inc., and Resolution No. 95-001 was the subject of a referendum election, the result of which
upheld the aforementioned Resolution; and
WHEREAS, the Lease continues in full force and effect, and pursuant to the terms ofthat Lease,
Seward Ship's Drydock, Inc. may request renewal of the Maintenance and Operating Agreement if(l)
the Lease term has not expired before the renewal term of the Maintenance and Operating Agreement
would commence, (2) Seward Ship's Drydock, Inc. is not in default under the Lease, and (3) notice of
intent to renew the Maintenance and Operating Agreement is given to the City; and
WHEREAS, the prerequisites forrenewal of the agreement have been met, and the City Manager
has prepared a new Maintenance and Operating Agreement similar in form to the current agreement,
which new agreement shall be for a term less than five (5) years; and
WHEREAS, pursuant to Seward City Code Section 6.10.130, it is determined that the public
interest would be best served by not requiring competitive proposals from potential operators of the
Shiplift Facility because the current operator has satisfactorily performed under the current agreement,
uninterrupted service will benefit the public users and the current operator, there are economies in
maintenance and operation that are achieved through an operator with an adjacent business location, and
there is a benefit in retaining the current operator's expertise and experience in maintaining and operating
the City's Shiplift Facility; and
WHEREAS, Seward Ship's Drydock, Inc. agrees to continue the Shiplift Facility maintenance
requirements under the Maintenance and Operating Agreement which has limited the City's out-of-pocket
expenses relating to the Shiplift Facility; and
AMM00516143371001
CITY OF SEWARD, ALASKA
RESOLUTION 2000-009
WHEREAS, the Maintenance and Operating Agreement retains City ownership of the Shiplift
Facility and provides for the continued operation of the Shiplift Facility as a public facility and at
reasonable cost to the City and Shiplift Facility users; and
WHEREAS, special expertise, experience, and training is required for the proper maintenance
and safe operation of the Shiplift Facility, and it is in the public interest to utilize the experience and
expertise of Seward Ship's Drydock, Inc. to provide efficient and safe shiplift services in SMIC; and
WHEREAS, the Shiplift Facility is important for business development in SMIC and economic
growth in the City; and
WHEREAS, the City will have an opportunity to re-evaluate the operator's performance prior
to any subsequent agreements, if any;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, that:
Section 1. For the reasons set forth in the recitals of this Resolution, which recitals are hereby
incorporated by reference as written findings of the City Council, it is determined that, pursuant to
Seward City Code Section 6.1 0.130, the public interest would best be served by not requiring competitive
proposals prior to approving the Maintenance and Operating Agreement described herein. Seward Ship's
Drydock, Inc. has demonstrated its ability to maintain and operate the Shiplift Facility, and it is unlikely
that the City would be able to further reduce its expenses related to the maintenance and operation of the
Shiplift Facility through the solicitation of proposals.
Section 2. The Maintenance and Operating Agreement attached hereto and incorporated by
reference as Exhibit A is hereby approved subject to (1) the City and Seward Ship's Drydock, Inc.
entering into an effective Lease amendment providing for continued Lease rental credits for deferred
maintenance and cable replacement of the Shiplift Facility for the approximate term of the Maintenance
and Operating Agreement, and (2) Seward Ship's Drydock, Inc. providing the City a corporate Resolution
approving the agreement. The City Manager is authorized to sign this agreement in substantial form as
attached hereto on behalf of the City of Seward and may make such changes as necessary to finalize the
document for signing.
Section 3. The current Maintenance and Operating Agreement is hereby extended according to
its existing terms until the lease amendment and the new Maintenance and Operating Agreement become
effective on March 31, 2000, whichever occurs first.
AMMOO51614337.1001
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CITY OF SEWARD, ALASKA
RESOLUTION 2000-009
Section 4. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th day of
February, 2000.
THE CITY OF SEWARD, ALASKA
'CL I (~A--'C ~ ~
Edgar Blatchford, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Blatchford, Brossow, Calhoon, King, Shafer
None
Clark, Orr
None
ATTEST:
Patrick Reilly
City Clerk
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