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HomeMy WebLinkAboutRes1990-153 . . . Sponsored by: Schaefermever CITY OF SEWARD, ALASKA RESOLUTION NO. 90-153 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A PURCHASE AGREEMENT BETWEEN THE CITY AND CHUGACH FOREST PRODUCTS FOR EXTRACTION OF GRAVEL AT FOURTH OF JULY CREEK WHEREAS, the city of Seward properly advertised an offer to sell gravel at Fourth of July Creek on October 18, 1990; and WHEREAS, the published offer to sell gravel stated that the sale would be non-exclusive and provided that any and all purchase agreements would be for not less than 5,000 cubic yards of gravel; and WHEREAS, the city has received a letter of interest in purchasing gravel from Chugach Forest Products; and WHEREAS, Chugach Forest Products has agreed to the terms set forth by the city for the extraction and purchase of the gravel; and WHEREAS, removal of the gravel from Fourth of July Creek 1S necessary to preserve the dike system constructed by the city in 1982; and WHEREAS, the gravel will be removed under an existing Corps of Engineers permit for levee restoration and channel maintenance; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Gravel Purchase Agreement, attached and incorporated herein by reference, between the city and Chugach Forest Products and dated November 13, 1990, is hereby approved. 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 10th day of December, 1990. THE CITY OF SEWARD, ALASKA ~ W1 1am C. Noll, Mayor -1- . CITY OF SEWARD, ALASKA RESOLUTION NO. 90-153 AYES: NOES: ABSENT: ABSTAIN: ATTEST: Dunham, Hilton, Meehan, Noll and Sieminski None Burgess and Krasnansky None APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska ~J --- o Jj,VC{'vt J J !VIA/I F ed B. Arv1dson City Attorney . . (City Seal) -2- . . . GRAVEL PURCHASE AGREEMENT FOURTH OF JULY CREEK SEWARD, ALASKA THIS AGREEMENT made and entered into the (?~ day of ...fJvv~^" bc.r- , 19~, between the City of Seward, Alaska (City), and ChUlZach Forest Products. n~rchaser), an Alaskan corporation and a State of Alaska licensed contractor. WHEREAS, the City Council of the City of Seward has determined that it is in the public interest to remove the gravel and debris that may block or deflect the channel of the Fourth of July Creek and endanger the dike system constructed by the City in 1982; and WHEREAS, the City has developed a Levee Restoration and Channel Maintenance Plan and been issued a Corp of Engineers permit based upon that plan, and WHEREAS, a fixed royalty payment to the City of fifty (.50) cents per cubic yard is deemed at this time to be reasonable royalty value for gravel in place in 4th of July Creek. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. Gravel. Gravel is defined to include all granular materials including sand, extracted by the purchaser. 2. Contracting Officer The Contracting Officer and person authorized by the City of Seward to administer this contract is Everett Paul Diener, Manager of Engineering & Utilities. 3. Channel Maintenance Plan The gravel shall be mined from a location specified by the Contracting Officer and in compliance with the 4th of T uly Creek Levee Restoration and Channel Maintenance Plan and applicable Corps of Engineer Permit issued to the City. 4. Contract Documents. The Contract Documents consist of this Agreement, Levee Restoration & Channel Maintenance Plan and COE permit to City of Seward and a gravel extraction plan to be prepared by the contractor and submitted to the Contracting Officer prior to starting any extraction of gravel. The gravel extraction plan shall include the information specified in paragraph 9 of this Agreement. The Contracting Officer shall have a period of ten (10) working days from the delivery to the Contracting Officer of that Plan to disapprove the Plan in writing or to require reasonable changes thereto. If the Contracting Officer has not disapproved or made required changes to the Plan within ten (10) days from the delivery of the Plan to the Contracting Officer, the plan shall be deemed accepted. Any changes thereafter must be approved by the Contracting Officer. The approved Gravel Extraction Plan shall be attached hereto as Exhibit A and incorporated as part of this Agreement. . . . 5. Scope of Work. a) This Purchase Agreement requires extraction of not less than 5.000 cubic yards but not more than '; I 000 cubic yards of gravel from portions of Fourth of July Creek to be designated by the City. While extracting gravel the purchaser shall remove rock, gravel, silt, sand, tree stumps and other debris (altogether, the "spoil") disturbed incident to excavating gravel. Such material shall be removed from the river channel and disposed of by the Purchaser. No excavation or removal of material will be permitted within 100 feet of the existing dike, except with specific written permission of the Contracting Officer. 6. City's Compensation. Compensation to the City shall be a royalty paid to the City by the purchaser in the amount of 50 cents per cubic yard of gravel except the purchaser shall pay not less than $2.500.00 to the City. The City will not pay the Purchaser any amount whatsoever for emergency or other flood control work performed at the site. Purchaser understands that the work includes the removal of debris, silt, sand, and other materials that have no commercial value, but notwithstanding this fact, Purchaser will not be permitted to claim reimbursement for, or in any other way charge for, the removal and disposal of those materials. The City makes no representations as to the relative percentages of different types of materials, and the risk that there is not sufficient gravel for commercial development is solely on Purchaser. A first royalty payment of $2.500.00 shall be paid at the time this Agreement is signed, thereafter, all royalties shall be paid to the City monthly, not later than the 15th day of the succeeding month. Monthly royalty payments shall be determined by the quantity of gravel extracted, except no monthly payment shall be less than $2.500.00 until a total of $2. 500.00 has been paid to the City. 7. City's Purchase of Gravel. City may purchase gravel from Purchaser at City's sole discretion, either by direct purchase at Purchaser's normal price, or by competitive bid or negotiated price. This contract shall not be deemed to give Purchaser any special right or ability to sell gravel to the City, nor to restrict the City from extracting gravel by its own resources or through or from other gravel purchases. 8. Quality of Work. Purchaser agrees that all work and labor shall be done and performed in the best and most workmanlike manner and in strict conformity with the approved Gravel Extraction Plan. All work shall be done to the satisfaction of the City and subject to inspection at all times and further subject to approvals required by any regulatory agencies of the local, state or federal governments. The work includes the Purchaser's effort to extract gravel, maintenance of the gravel extraction zone, maintenance of haul roads and any other activity incidental to this Agreement. 9. Permits. The City has a COE permit. The Purchaser shall perform all work in strict compliance with that permit, and shall, in addition obtain all other necessary permits, rights-of-entry, or other consents from all governmental agencies. Copies of all such permits shall be provided to the City prior to Purchaser commencing work under this Agreement. The risk of a failure to obtain any required permits shall be solely on Purchaser although the City agrees to, in good faith, assist Purchaser in obtaining any required permits. Should the Purchaser fail to comply with the City's COE permit, or 2 . . . any other he may be directed to cease all work and perform all work necessary to reach compliance. All remedial or corrective work shall be at the purchaser's expense. 10. Bonding. The City may require, at it discretion a bond or financial guarantee in another acceptable form that may be forfeited if the Purchaser fails to comply with permits or fails to complete remedial work to the satisfaction of the City or other agencies. 11. Commencement of Work. Purchaser may start as soon as a Notice To Proceed is issued by the City. Such notice will normally be issued upon approval of the gravel extraction plan. 12. Gravel Extraction Plan. Subject to paragraph 2, Purchaser shall submit to the City a Gravel Extraction Plan for the City's approval prior to commencement of any work under this Agreement. All work performed by the Purchaser under this Agreement shall comply with the approved plan. The plan shall address or identify the following: a) b) c) d) e) f) g) h) i) j) k) a work plan permits limits of the gravel extraction zone the proposed location for work within the gravel extraction zone the time period for operation the disposal of unusable spoil flood control efforts access routes, haul routes, traffic control, signing stockpiling plans the estimated quantity of spoil to be extracted, and other reasonable and relevant information for the performance of this contract as may be requested by the Contracting Officer. 13. Access Rights The City reserves for itself and any others whom it may authorize the right to free access over and through the gravel extraction zone for the purpose of access to 4th of July Creek. This right shall extend to the use of roads to and through the gravel extraction zone, however, use of such roads by others within the gravel extract zone shall not unreasonably interfere with Purchaser's operations under this Agreement. This is not an exclusive Agreement for gravel extraction in the 4th of July Creek, and other purchasers may be working in the creek. 14. Disposal of Spoil Purchaser shall bear sole responsibility for disposal of all spoil, both usable and unusable, removed from Fourth of July Creek pursuant to any provision of this Agreement. Unusable spoil removed from Fourth of July Creek pursuant to the provisions of this Agreement shall be disposed of in the locations approved in writing in advance by the Contracting Officer. 15. Term of Aweement The term of this Agreement shall commence on the date of this Agreement first written above, and shall terminate on the last day of 3 . . . .::f.... '"' -'- 3 C , 19 ? j , unless extended in writing by the City. The City is under no obligation to extend the Agreement, regardless of the amount of gravel extracted by the Purchaser. 16. Insurance Purchaser shall maintain in force Worker's Compensation insurance in statutory amount, and automobile liability and comprehensive general liability insurance including, without limitation, coverage for premises and operations, products and completed operations, contractual lability, broad form property damage and personal injury liability, in amounts not less than Five Hundred Thousand Dollars ($500,000.00) per occurrence and One million dollars ($1,000,000.00) aggregate (combined single limit for bodily injury and property damage) during the term of this Agreement. Purchaser shall have City added as an additional insured on the insurance policies required by this paragraph. Such policies shall contain an Agreement by the insurers that such policies shall not be canceled without at least twenty (20) days prior written notice to the City. The City shall be provided certificates of all such insurance within fifteen (15) days of the date of execution of this policy and copies of all such insurance policies within forty five (45) day after the execution of this Agreement. Copies of all replacement policies shall be provided to the City promptly after the issuance thereof. 17. Records Purchaser shall keep accurate records of the volume of gravel and unsuitable spoil (either by weight, volume or other standards generally accepted in the industry) removed move 4th of July Creek under this Agreement. Not later than 30 days after the end of each calendar quarter Purchaser shall provide to the City copies of all records relating to the volume of spoil and gravel removed during that calendar quarter. The City shall have the right to audit Purchaser's records concerning the volume of spoil and gravel removed. 18. Exclusive Rights Purchaser shall not have the exclusive right to extract spoil from Fourth of July Creek. ............................................................................................................................................ IN WITNESS WHEREOF the parties hereto have executed this Agreement, the day and year first above written. CITY OF SEWARD a~~c..~ "h~rr9<ruJ"...-b,.1:;-l. Owner h,!l~-v- ?..- Z; //?/1~Kf,.;'...e.- /r ~ -"11 Title Date Purchaser b;SP~?t1C/( ~ _ th.."Gj, e.r / j. (,....1,.",. ,,,,~..... II (I 1<.1 Title Date 1 I 4 A lTEST: APPROVED AS TO FORM PERKINS COlE, AITORNEYS FOR THE CIlY 0 SEWARD, ALASKA I '- f'". J / ' ',( '. . .J '/ !_ V !It t '/"V J CIlY AITORNEY (CllY'S SEAL) STATE OF ALASKA } }SS THIRD JUDICIAL DISTRICT } THIS IS TO CERTIFY that, on this 13 r.-l day of JOJ2.MMR.. ,19 q',,' , before me, the undersigned, a Notary Public in and for the State of Alaska, duly commissioned and sworn as such, personally appeared PML;J. -r w" 11E,J lawful agent for CHl.iCACI1 fC!i.tsr r,l'ti><Jc TS I,J~ , known to me and to me known to be the person who executed the foregoing . instrument for and on behalf of (lifuCACli (o"t:-:,r pj!.,;i)(jeTS, INC , and who acknowledged that he signed the same freely and voluntarily for the uses and purposes therein contained. IN WITNESS WHEREOF, I have hereunto set my hand and atTlXed my Notarial Seal the day and year hereinabove written. #Jik- (~1A. Nota / ublic for State of Alaska My Commission expires: 1-/'1-'1/ .