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Home My WebLink AboutRes2006-071 Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PROCEED WITH THE ACQUISITION OF LAND, FOREST ACRES SUBDIVISION LOTS A W, ~~~~~~~~~~~~~~~~~ AND A PORTION OF THE UNSUBDIVIDED REMAINDER OF THE NE V4, NE V4 OF SECTION 33, TIN, RIW, SEWARD MERIDIAN, AND APPROPRIATING FUNDS FOR THE FUTURE LONG TERM CARE SITE WHEREAS, the proposed acquisition is a crucial component necessary to move forward with the design phase for a future Long Term Care Facility in the City of Seward (ilL TCF"); and WHEREAS, in early 2005 the City of Seward began considering potential sites for the LTCF; and WHEREAS, the City Council provided direction to administration to bring forward a list of all City owned parcels in excess of five (5) acres to be considered for the future site location because Council did not desire to purchase property for this project due to expense, necessity to expedite this critical project, and appeal to utilize existing City property; and WHEREAS, on July 13, 2005 City Council approved Resolution 2005-65 authorizing the use of Lots IIA and I2A of the Fort Raymond Subdivision #1 as the site for the new LTCF; and WHEREAS, a detailed site analysis was conducted including two extensive geotechnical analyses, wetlands studies, a phase 1 environmental assessment, and a flood hazard analysis; and WHEREAS, the extensive geotechnical analysis determined that the soils at the Fort Raymond site are prone to liquefaction in a seismic event to depths of 80'; and WHEREAS, after a preliminary foundation design for this project was completed, it was determined the seismic mitigation costs would be $2 million bringing the combined cost ($1.5 million to make the current site buildable) to $3.5 million; and WHEREAS, given the time sensitive nature ofthis project and the projected cost to make the current site selection buildable, it is highly likely the City of Seward will save the taxpayers money by purchasing and developing private property for less than $3.5 million dollars; and WHEREAS, Seward City Code Section 7.05.120 permits the acquisition of real property by negotiation; and WHEREAS, the essential terms and conditions contained in the form of purchase and sale V)lSVW 'mIV M3S .>10 AU;) 3H.L 0900Z <lunf JO AUP qlZI S!ql 'U)[SUIV 'plUM<lSJO An;) <lqlJo E:luno;) An;) <lql Aq U3AOHddV UNV U3SSVd Oilu!lSod pun <lilussud ilu!MOnOJ SAUP (m:) P<lJj<> <l)[Ul nuqs u09nlos<l1 s!ql 09 uO!l;);)S OP<lIU<ld<ll Aq<ll<lq S! ~9-~00Z u09nlos<l~Jo I UO!P<lS os uO!l;);)S O)[una puoa lud!:l!unW U)[suIY <lql Aq p<lnss! puu p<lAOlddu <lID spuoq <lnU<lMl p<lp!AOld 'Sp<l<l:lold ilu!:luuuy IUl!du:l W01J p<llU!JdOlddu Aq<ll<lq S! 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P<lU!UlUO:l SUll<llIUUO!l!PUO:l l<lqlO pUU ilu!:lunuy IUl!du:l Ol p<lfqns 'pIDM<lS JO Al!;) <lql U! Al!I!:lUd <lID;) Ull<ll iluo'1 U JO U09U:l01 <ll!S <lmlll] <lql1OJ S<ll:lU ~ JO SS<l:lX<l U! All<ldOld <llUA!Jd dOI<lMp pUU U09U90il<lu Aq <lsuq:lmd Ol P1UM<lS JO Al!;) <lql JO lS<ll<llU! lS<lq <lql U! S! l! spuy IPunO;) An;) <lql . I uO!l;);)S :luql V)lSV'lV 'aHV M3S .>10 .>10 AU;) 3H.L .>10 'lI;)NflO;) AU;) 3H.L AO: U3A'lOSrn U 30: 'rnO.>lrn3H.L 'MON .)[l<ll;) An;) <lqlJo <l:lYJo <lql U! SAUP (0 J) lSU<l1 lU lOJ UOH:l:ldsu! :l!lqnd lOJ :llqunUAll U:l:lq :lAllq (lIlU:llli:l:ll1lY :llllS pun :lSllq:llTIdll :l1ll) lU:llli:l:l~ll IL-900Z NOIli1'10S3~ V)lSY'1Y 'm 1\\3S dO All;) CITY OF SEWARD, ALASKA RESOLUTION 2006-71 AYES: NOES: ABSENT: ABSTAIN: Dunham, Val datta, Lorenz, Bardarson, Shafer None Thomas Schafer ATTEST: l - c/) itA'^ AJiAhY! J , LewIs \,~ C' y Clerk, CMC \?\IUU"" (City Seal)......~~\ O~ S2~1~{]'I", ..' ~~ ........ l~ ,# $' c) ...o~?O~);'" ~ ~ .. .'fi ~o"-:' :: ..~~. e. dI .. . .. Itl. - : S....../'.L :0" .... 0 : ~., : t-',..... :": . ""-~... .. I@ ::~ -r-!: :,... <<'lr f:~ :,' ,,:. ~. V/~ f'''~'' ."t' ~ .. In, .'.......,,"" 1 .. "..' ,."f;' '> ,,~ ""'.".A~ ~.. ;"'1 ',-' .,~~:~.:}:.\;;~ ~\s~.~ ':" 'Jlift: t~. ~ ~-, ~~\t' Council Agenda Statement Meeting Date : June 12, 2006 Through: Clark Corbridge, City Manager From: Tom Shepard, Project Manager Agenda Item: Purchase Forest Acres Subdivision Lots AW, AV, AX, AY, BA, AZ, BC, BD, CL, CK, CM, CJ, CN, CI, CO, CH, CP, CD, and a portion of the unsubdivided remainder of the NE ¼, NE ¼ of Section 33, T1N, R1W, Seward Meridian for a Long Term Care Facility in Seward BACKGROUND & JUSTIFICATION In early 2005, the City of Seward began considering potential sites for a new long term care facility in Seward. The City Council provided direction to administration to bring forward a list of all City-owned parcels in excess of 5 acres for consideration. At that time the City Council did not support the purchase of property for this project due to expense, the need to expedite this critical project, and the desire to utilize existing City property if possible. On July 13, 2005, City Council approved Resolution 2005-65, authorizing the use of Lots 11A and 12A of the Fort Raymond Subdivision #1 as the site for the new long term care facility. Following the approval of this resolution, on November 28, 2005 Council approved resolution 2005-131 entering into a contract with Architects Alaska as the long term care design firm. The design for the project officially started December 5, 2005. Detailed site analysis was conducted including two extensive geotechnical analyses, wetlands studies, a phase 1 environmental assessment, and a flood hazard analysis. The results of these studies were finalized March 14, 2006. There were two mitigable results of interest. After a further cost analysis review of the flood plain data it was determined that the fill in the amount of $1.5 million would be required to get the site adequately above the base flood plain elevation set by FEMA. The extensive geotechnical analysis determined that the soils at the Fort Raymond site are prone to liquefaction in a seismic event to depths of 80’. After a preliminary foundation design was completed, it was determined that the seismic mitigation costs would be appropriately $2 million. The combined cost to make the site buildable is estimated to be $3.5 million. In a letter dated March 31, 2006, Afognak Construction & Excavating, Inc. offered property for sale to the City in and near Forest Acres for a price of $871,500 and subject to certain conditions. The sale agreement presented at this meeting is subject to a geotechnical analysis, availability of bond funds, and other stated conditions. In sum, it is likely that the City can save the taxpayers money by purchasing and developing private property for less than $3.5 million. RESOLUTION 2006- PAGE TWO CONSISTENCY CHECKLIST: Where applicable, this Resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: ____________________________________________ FISCAL NOTE Purchase of this private property is contingent on the positive outcome of site analyses, as well as obtaining capital financing from the Alaska Municipal Bond Bank. The purchase of property and site preparation costs will not be reimbursable in the Medicaid and Medicare reimbursement rates. The City will need to identify a source of future funding to repay the annual debt service payments on the bond costs associated with the purchase of land and site preparation costs. Approved by Finance: ___________________________________ RECOMMENDATION City Council approve the purchase of private property for the long-term care facility, appropriate earnest money, and appropriate funding from future revenue bonds, only if revenue bond financing can be secured. \\192.168.1.135\f$\cityclerk\RESOLUTIONS\2006\06-71 NewLTCFSite (2)AS1.doc