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HomeMy WebLinkAboutRes1985-098 . . . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 85-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE AWARD OF A CONTRACT TO SAMWHAN AMERICA, INCORPORATED, FOR CONSTRUCTION OF THE SPRING CREEK CORRECTIONAL FACILITY WHEREAS, on September 5, 1985, bids were opened for con- struction of the Spring Creek Correctional Facility and the apparent low bidder was Samwhan America, Inc., at a bid of $30,845,260.00; and WHEREAS, as project manager, the State of Alaska, and specif- ically the Department of Transportation and Public Facilities, has reviewed the bids opened and determined that Samwhan America, Inc.'s bid was responsive; and WHEREAS, the State of Alaska, after materials supplied with the bid, and additional the request of the State, has recommended that should be found to be responsible and responsive; extensive review of materials supplied at Samwhan America, Inc. and WHEREAS, the City Manager has reviewed the recommendation of the State of Alaska and additional information obtained by the City and he concurs in the recommendation of the State; and WHEREAS, members of the City Council of the City of Seward have personally reviewed the underlying recommendation of the State of Alaska, the recommendation of the City Manager for the City of Seward, and other information that has been supplied to the City including those items set forth in the City Manager's report; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Council of the City of Seward makes the following determinations relating to the public interest: A. The construction of the Spring Creek Correctional Fa- cility is a matter of vital public concern to the resi- dents of the City of Seward. B. The City of Seward has actively sought funding for the construction of the Spring Creek Correctional Facility for several years, reflecting a continuing belief that the construction of the Spring Creek Correctional Fa- cility is a matter of vital public interest. C. The City has actively pursued every possible avenue for funding and this Council has approved, by prior -1- . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 85-98 resolutions, the utilization of Certificates of Lease Participation as a financing mechanism. D. The financing for the Spring Creek Correctional Facility is scheduled to be consummated in early October, 1985, and any delay in the award of a construction contract for the Spring Creek Correctional Facility could adversely affect the availability and price of financing. E. The impairment of any financing for the prison caused by a delay or dispute concerning the award of a construction contract could result in the loss of the prison con- struction project in Seward, Alaska. The loss of that construction project in Seward would be adverse to the public interest as expressed by this Council over the last several years. F. The public interest would be impaired further by a delay in award due to climatic conditions. If the contract is not awarded soon the weather in Seward might preclude meaningful construction this fall. . G. A failure to award soon also could mean the expiration of the time period for award under the contract documents which could result in re-bidding the project at great expense to the City and unreasonable delay. H. The information underlying the results of the State's investigation have been made available to the City Council and to all interested parties for review. I. The City Manager for the City of Seward has conducted an independent investigation and has made a recommendation to this Council, Similarly the information underlying that investigation has been made available to all inter- ested parties. J. The City Council has before it a complete record of information including financial statements, bid docu- ments, various memoranda concerning informational re- quests, information provided as a result of inqu~r~es made on behalf of the City of Seward and information produced as a result of requests for information made by others (principally Hoffman Construction Company of Alaska.) K. The City Council of the City of Seward in addition to the above written information has, by stipulation with the second low bidder, afforded the second low bidder the opportunity to be heard before the City Council on such matters as the second low bidder, in its discretion, felt . -2- . . . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 85-98 would be relevant to this Council's determination of the issues before it. L. In addition, the City Council has heard additional information in the form of comments made by officials from Samwhan America, Inc., and Samwhan Corporation. Also the State of Alaska has presented information in verbal form before the City Council. M. Finally, the City Council has listened and heard from other interested parties and the public at large on this issue. Section 2. Having reviewed all of the information produced, and based on each individual Councilmember's own independent analysis of the information, and discussion in open meeting, the City Council of the City of Seward finds that Samwhan America, Inc., is the lowest responsi- ble bidder for the construction of the Spring Creek Correctional Fa- ciH ty . Section 3. The City Manager is instructed to prepare for execution a contract for the construction of the Spring Creek Correc- tional Facility in an amount not to exceed Thirty Million Eight Hundred Forty-Five Thousand Two Hundred Sixty and 00/100 Dollars ($30,845,260.00). Section 4. This award is contingent upon the closing of financing for construction of the project. Section 5. This award shall also not be effective for a period of twenty-four (24) hours from the time of this resolution in accordance with that certain Stipulation executed by the City through the City Attorney, and various parties to the litigation known as Hoffman Construction Company of Alaska, Inc., vs. City of Seward, Superior Court Case No. 3AN-85-13155 Civil. Section 6. The City Council of the City of Seward also finds that the exchange of information conducted from the time of the bid opening until the time of this award has eliminated the necessity for the issuance of a letter of intent to award. This award, however, is contingent upon successful completion of those documents and informa- tional requests that would be required if a "Letter of Intent to Award" as provided for in the Bid documents were to be issued. The reason for the City Council determining that the issuance of a letter of intent to award is not necessary in this case is that it is in the public interest to take every step reasonable to expedite the award of a construction contract in such a way as not to jeopardize financing arrangements for the proj ecL PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, this 23 day of September , 19 85 -3- . . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 85-98 AYES: NOES: ABSENT: ABSTAIN: ATTEST: . ':~2JA DONALD W. CRIPPS, MAYOR CRIPPS, GILLESPIE, HILTON, MEEHAN, SCHOLL, SIMUTIS & WILLIAMS NONE NONE NONE (City Seal) APPROVED AS TO FORM: HUGHES, THORSNESS, GANTZ, POWELL AND BRUNDIN, Attorneys for the City of Seward, Alaska 7~ (1f~ Fred B. Arvidson, City Attorney -4-