HomeMy WebLinkAboutRes2005-102
Sponsored by: Corbridge
.....
CITY OF SEWARD, ALASKA
RESOLUTION 2005-102
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO
ENTER INTO A FOURTH AGREEMENT TO EXTEND THE
TERM OF THE MAINTENANCE AND OPERATING
AGREEMENT WITH SEWARD SHIP'S DRYDOCK, INC. FOR
THE SHIPLIFT FACILITY
WHEREAS, Seward Ship's Drydock, Inc. ("Operator") and the City have entered
into a Lease Agreement dated April 1995, as amended ("Lease"), to operate a vessel
repair and construction facility for a term ending June 30, 2009 unless sooner terminated
or extended as provided in the Lease; and
WHEREAS, the Section 7.06 of the Lease allows the Operator to renew the
Agreement (defined below) ifthe Operator gives the City written notice of the exercise of
its option to renew no later than 180 days before termination of the Agreement, if the
Lease term has not expired, and if the Operator is not in default under the Lease at the
time the option is exercised; and
WHEREAS, on June 3, 2004 the City received a written notice of the Operator's
..... intent to exercise its option to renew the Agreement; and
WHEREAS, the City and the Operator entered into a Maintenance and Operating
Agreement effective March 30,2000, as amended October 26, 2001 (the "Agreement");
and
WHEREAS, the Operator has been maintaining and operating the City's ship lift
facility since 1995, consisting generally of a Syncrolift Shiplift System, Ship Transfer
System and certain related rail systems (the "Shiplift Facility"); and
WHEREAS, the Agreement, by its terms, expired December 31, 2004; and
WHEREAS, on October 26, 2004, the City received a copy of a letter to the
Operator from the State of Alaska Department of Environmental Conservation ("DEC")
notifying the Operator that DEC is investigating several complaints alleging that
industrial soil waste generated at the Shiplift facility is routinely disposed of at
unpermitted sites in and around Seward; and
....
WHEREAS, DEC had samples tested on the private property where a portion of
the waste was deposited in July and September 2004 and each time found diesel range
organics and residual range organics exceeding the threshold allowed by DEC
regulations; and
CITY OF SEWARD, ALASKA
RESOLUTION 2005-102
i
.."J
WHEREAS, on December 14, 2004, the City Council extended the term of the
Maintenance and Operating Agreement through March 30, 2005, allowing DEC time to
review and approve a plan for the Operator and the Operator time to bring the facility
within environmental compliance; and
WHEREAS, on March 29, 2005 the City Council approved an extension of the
term of the Maintenance and Operating Agreement through September 30, 2005 to allow
additional time for the Operator to bring the facility into compliance; and
WHEREAS, on May 13, 2005, DEC issued a notice of violation to the Operator
for environmental violations, including fugitive emissions from industrial activities and
violating the prohibition against air pollution; and
WHEREAS, the Operator submitted a corrective action letter to DEC on May 19,
2005; and
WHEREAS, on June 1,2005, DEC found that SSD's corrective action plan was
not complete; and
WHEREAS, on June 13, 2005 the city council extended the term of the
Maintenance and Operating Agreement through September 30, 2005 to allow the
Operator to comply with environmental requirements; and
.....
WHEREAS, as stated above, it is not in the City's best interest to fully renew the
long-term agreement with the Operator while these environmental issues are outstanding;
and
WHEREAS, another short term extension would allow a reasonable opportunity
for the Operator to provide the City with notification from DEC and EP A that the
Operator has resolved all environmental compliance issues.
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 fourth agreement with
Seward Ship's Drydock, Inc. in substantially the same as presented at this meeting to
extend the term of the Maintenance and Operating Agreement with such modifications as
the City Manager deems necessary, effective upon approval of this resolution and the
signing by all parties, with a term continuing until December 31, 2005, provided that if
the City receives notice from DEC and EPA on or before December 31,2005 that there
are no violations of environmental laws or regulations, the City Manager is authorized to
extend the Maintenance and Operating Agreement to the earlier of (i) the date of
,
,
...J
CITY OF SEWARD, ALASKA
RESOLUTION 2005-102
....
expiration or termination of the Lease term, or (ii) June 30, 2009.
Section 2. 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 October 2005.
THE CITY OF SEWARD, ALASKA
~
AYES: Amberg, Lorenz, Clark, Dunham, Branson, Valdatta, Shafer
NOES:
ABSENT:
.... ABSTAIN:
ATTEST:
;tUM~
City Clerk
",".....",
'l,'\\ OF f:'t:- I"
(City Seal) ........ ~-.{ .....~:-=11/ "..
.:' c}....o. ?po~:..1~ ";.0
.. . Ci ....,>.. ~-... -:.
'" ..~ ,~.. \oJ df/I
lib .'a '0....
::; -.- \:
:: Q: SP .'\ T : :
;: \ ..;...J.L' Ai...J : 0 :
-;.~ ~--::
-:. ..n..~ ....
~ v>...YAj~ ,'1;..- ~-:
.-" -<l.... ..... 1 '\~., .,!...tr.-:
., ,'~ .....:.~. (":.-:.l,;
'4' .....0- ", ~.l ;~
'I, r- "".... .$.
'1:;11 1 UO\\\>'
.....