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HomeMy WebLinkAboutRes1989-052 . . . Sponsored by: Schaefermeyer CITY OF SEWARD, ALASKA RESOLUTION NO. 89-052 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING AMENDMENTS TO THE SPRING CREEK CORRECTIONAL CENTER BUDGET AND APPROVING PRISON INDUSTRIES/HOBBYCRAFT ADDITIONS WHEREAS,the Spring Creek Correctional Center in Seward (SCCC) has been constructed for the State of Alaska by the City of Seward under the terms of a Project Management Services Agreement; and WHEREAS, under the terms of that agreement the Department of Transportation and Public Facilities (DOT/PF) of the State of Alaska has managed the construction of the prison to its successful conclusions; and WHEREAS, the contractor for the construction filed claims for equitable adjustment to the construction contract; and WHEREAS, the City and DOT/PF entered into a Defense Agreement which provided for the State of Alaska to defend, indemnify, and pay any such claims; and WHEREAS, DOT/PF has defended the City under the terms of that Agreement and has concluded the litigation; and WHEREAS, DOT/PF has requested that the City make available project reserves for the payment of the construction claim settlement and also for the commencement of construction of a Prison Industries/Hobbycraft center; and WHEREAS, the construction of a Prison Industries/Hobbycraft center is in the public interest and a vital component of the SCCC; and WHEREAS, under the terms of the Defense Agreement, agreed to seek legislative funding for construction of facilities or defense of the claims, or to fund construction/claims expense through the City seeking funds from other sources; and DOT/PF has additional additional additional WHEREAS, the City Council would prefer to seek additional funding for the payment of the claims and additional construction from borrowed funds as legislative appropriations may be difficult to obtain and the City has higher legislative priorities affecting the public health and safety; and -1- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 89-052 WHEREAS, in order to provide for both payment of the claims and for additional construction, the City must authorize budget amendments; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to make the budget adjustments referenced in DOT/PF's request dated May 18, 1989. Section 2. The Council expresses its preference that additional financing be sought from private sources in preference to legislative appropriations for the purposes of paying liquidated construction claims and for the construction of a Prison Industries/Hobbycraft facility. Section 3. The City Manager is authorized to negotiate for additional financing the amendment of the Project Management Services Agreement with DOT/PF to provide for the continuation of the project management services thus far provided, and such other amendments to the prison financing/lease documents as may be necessary. Section 4. The City Manager is authorized to bid the construction of a Prison Industries/Hobbycraft contract, but the contract may not be awarded until such time as the City Council determines that there are adequate provisions for the payment of the cost of construction and payment of liquidated claims (plus reserves and contingencies including City Administrative costs). Section 5. 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 June, 1989. THE CITY OF SEWARD, ALASKA ~~~<-p~ HARR . GIESELER, MAYOR AYES: NOES: ABSENT: ABSTAIN: GIESELER, DUNHAM, HILTON, MEEHAN, NOLL, SIMUTIS NONE O'BRIEN NONE -2- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 89-052 ATTEST: (City Seal) -3- APPROVED AS TO FORM: PERKINS COIE, Attorneys for the city of Seward, Alaska '~( 11/ r:Zv~,- Fred B. Arv~dson City Attorney