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HomeMy WebLinkAboutRes2006-082 Sponsored by: Corbridge -- CITY OF SEWARD, ALASKA RESOLUTION 2006-82 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A PERMIT AGREEMENT WITH KODIAK-KENAI CABLE COMPANY, LLC FOR PURPOSES OF LAYING FIBER OPTIC CABLES AND RELATED IMPROVEMENTS ACROSS LAND OWNED BY THE CITY OF SEWARD WHEREAS, Kodiak-Kenai Cable Company, LLC, an Alaska limited liability company ("KKCC") has requested permission to cross City land for purposes of constructing, laying, operating, maintaining, replacing and removing fiber optic cables and incidental improvements; and WHEREAS, the permission granted by the City applies to City land described in the attached Permit Agreement, whether now owned or to be effective when such land is acquired by the City during the term of the Permit Agreement; and WHEREAS, the permit area covers substantially the same non-exclusive permit area as for GCI Communication Corp ("GCI") 2003 Permit and GCI has consented to KKCC's similar permitted use of the area; and .... WHEREAS, the City and KKCC agree to the terms and conditions as outlined in the attached Permit Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to enter into a Permit Agreement with Kodiak- Kenai Cable Company, LLC ("KKCC"), to be effective upon approval ofthis resolution, signing by the parties, and payment of fees, and continuing until August 31, 2031 with two subsequent 5 year renewal periods in such form as substantially described in the accompanying permit. Section 2. For purposes of this Resolution, the Council determines that KKCC may be considered a public utility. Section 3. 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 July, 2006. THE CITY OF SEWARD, ALASKA ~~~ Vanta Shafer, Mayo AYES: NOES: ABSENT: ABSTAIN: Valdatta, Schafer, Lorenz, Bardarson, Shafer None Dunham, Thomas None ATTEST: [! ~J0a (' -j;/J/f'\...' . J e~ Lewi\ CMC C~y Clerk ,j . ,",....., (CIty Seal) ~"'Oe Sr:::'A~'" ~... _1'- "'rv.. 'I ~~, ........ ~A"'4": ~ ,."f:" ....f.POfI:...:'YA ~ ~ ow.~ '''')-",'. v __ ~.. ,~.. ~ - :~ --- ~. ~ : . ~ : : _ ~ SEAL ! 0 : !!l t .. " ......... lIl! ~..._ fl,l ~ ~'-~ ,\~~..,.iS $ '\ ~~.~'l.... ~;).. .... ~.i~OF ~\...,,,\..... ~I...nn~,;\ ,j f ...J , .J , , I .... COUNCIL AGENDA STATEMENT Meeting Date: July 10, 2006 From: Clark Corbridge, City Manager Agenda Item: Authorizing the City Manager to enter into a permit agreement with Kodiak-Kenai Cable Company, LLC for purpose of laying fiber optic cables and related improvements across land owned by the City of Seward. BACKGROUND & JUSTIFICATION: Attached is a permit to allow Kodiak-Kenai Cable Company, LLC, an Alaska limited liability company ("KKCC") to cross City of Seward lands for installation of a submarine cable in support of the fiber optic cable project that is part of five segments: (1) Anchorage to Kenai; (2) Kenai to Homer; (3) Homer to Kodiak; (4) Kodiak to AADC Launch Facility at Narrow Cape; and (5) AADC Narrow Cape to Seward. The purpose of the cable is to provide the first fiber optic link connection for Kodiak Island, Homer, and Kenai to current fiber optic links in the lower 48 states. This document has been prepared as a permit rather than an easement to eliminate possible concerns about conflicting charter and ordinance provisions relating to the grant of easement interest. This permit is substantially similar to a non-exclusive Permit approved by Resolution 2003-111 for GCI Communications Corp ("GCI") and will cover two of the three permit areas covered by the GCI permit. GCI has agreed to shared use of the permitted areas. Passage of the resolution authorizes the permit for 25 years with the right to extend for two additional five year periods. The permit area covers permit areas No. 1 and No. 3 attached and consists of slightly less than 1/4 of an acre including City tide and submerged lands and a small piece of land conveyed by BLM to the State of Alaska Department of Natural Resources ("DNR") which in turn was conveyed to the City by DNR and is included as part of this permit. This permit area extends off shore to the east of the waterfront campground and into the undeveloped portion of Monroe Street utilizing an existing man hole under agreement with GCI . This cable runs to a one story structure currently being built at the intersection of Resurrection Boulevard and the Seward Highway. Right- of-way permits will be applied for as needed. The term of this lease is for 25 years or August 31, 2031 and the fee paid by KKCC to the City is a lump sum payment of $75,000. In the event the KKCC extends the initial term by exercising the options for the five year periods, KKCC shall pay an increased amount based on the increase between 2006 and 2031 in the consumer price index (CPI). The annual permit fee for the second five year period shall be the increased CPI between 2031 and 2036. KKCC will also cover City legal fees expected to be $3,500. CONSISTENCY CHECKLIST: YES NO 1. Comprehensive Plan ____ ____ 2. Strategic Plan ____ ____ 3. Other ___________________________. ____ ____ 4. Not applicable __X_ ____ FISCAL NOTE: Revenues include $3,500 paid for City attorney fees as well as a lump sump payment of $75,000 which is the present worth of $5,000 per year at 4% annual increase, discounted by 5% with no further expenses by the City. Any extensions in the permit period will require additional payment based upon the CPI. Approved by Finance Department:____________________________ _________________________________________________________________________________ RECOMMENDATION: Council approve Resolution 2006-82, authorizing the CityManager to enter into a permit agreement with Kodiak-Kenai Cable Company, LLC for the purpose of laying fiber optic cables and related improvements across land owned by the City of Seward.