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Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2007-052
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING PAYMENT TO THE ALASKA RAILROAD IN
THE AMOUNT OF $11,633.00 AS LEASE FOR A PORTION OF THE
TRANSMISSION LINE FROM ARRC MILE POST 23 TO 23.75
WHEREAS, a portion of the City of Seward's Transmission line (3950 lineal feet) is located
inside the Alaska Railroad Transportation Corridor (ARRC) , which subjects the line to lease
payment to the ARRC; and
WHEREAS, the lease rate was increased by $.50 per foot effective July 8, 2005, due to an
increase in appraised value; and
WHEREAS, the City has no other options available at this time for the location for this
portion of the transmission line; and
WHEREAS, Seward City Code requires Council approval for this payment as the cost
exceeds $10,000.00.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Manager is hereby authorized to pay the annual ARRC Lease for 2007
in an amount not-to-exceed S 11,633.00.
Section 2. Funding is available in the Electric Enterprise Fund account no. 501-5400-5360.
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 14th day of
May, 2007.
CITY OF SEWARD, ALASKA
RESOLUTION 2007-052
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THE CITY OF SEWARD, ALASKA
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Vanta Shafer, Ma r
AYES:
NOES:
ABSENT:
ABSTAIN:
Dunham, Valdatta, Schafer, Thomas, Amberg, Shafer
None
Bardarson
None
ATTEST:
~'l~^~I},Y:::J
Jean Lewis, ~I
cUy Clerk ,II au"
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Council Agenda Statement
Meeting Date: May 14, 2007
To: Phillip Oates, City Manager
From: Tim Barnum, Manager Electric Utility
Agenda Item: Authorizing the City Manager to pay the Annual
Railroad Lease for a Portion of the Transmission
Line ARRC Mile Post 23 to 23.75
BACKGROUND & JUSTIFICATION:
A portion of the City’s transmission line is built on Railroad property. The agreement with the
Railroad required the City pay a yearly lease rate, based on 3950 lineal feet.
The lease rate increased by $.50 per foot in 2006 to $25.25 per foot, up from $24.75 per foot in
2005. As per Seward City Code, any invoice exceeding $10,000.00 requires Council Approval.
This lease payment will be an annual expense for as long as the transmission line remains on Railroad
property. The City does not currently have any option other than to pay the lease rate.
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:
Approved by Finance Department:
RECOMMENDATION:
City Council approve Resolution 2007- authorizing the City Manager to pay the annual Railroad
lease for a portion of the transmission line, ARRC mile post 23 to 23.75, for an amount not-to-exceed
$11,633.00