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Home My WebLink About10202009 City Council PacketSpecial City Council Meeting Tuesday, October 20, 2009 City Council Chambers Beginning at 6.•00 p. m. The City of Seward, Alaska Special City Council Meetin October 20 2009 6:00 p.m. Council Chambers Clark Corbridge Mayor Terns Expires 2009 Vice-Mayor Dunham Council Member Term Expires 2010 Robert Valdatta Council Member Term Expires 2009 Tom Smith Council Member Term Expires 2009 Vacant Council Member Term Expires 2009 Jean Bardarson Council Member Tenn Expires 2010 Marianna Keil Council Member Term Expires 2010 Phillip Oates City Manager Jean Lewis City Clerk Cheryl Brooking City Attorney 1. Call to order 2. Pledge of allegiance 3. Roll call 4. Citizens' comments on any subject except those items scheduled for public hearing. [Those who have signed in will be given the first opportunity to speak. Time is limited to 2 minutes per speaker and 30 minutes total time for this agenda item.] 5. Approval of agenda 6. New Business A. Resolutions Requiring A Public Hearing Resolution 2009-099, Authorizing The City Manager To Terminate The Lease With Women's Division Of The Board Of Global Ministries Of The United Methodist Church For Lots 19, 20 And 21 Of The Marathon Addition To The City Of Seward, Effective October 15, 2009. 7. Council comment 8. Citizens' comments 9. Council and administration response to citizens' comments 10. Adjournment Ciry of Seward, Alaska Council Agenda October 20, 2009 SPECIAL MEETING REQUEST Pursuant to Seward City Code 2.10.030 (2), this is to serve as the written notice calling a Special Council Meeting for the purpose of: Resolution 09-099, Authorizing The City Manager To Terminate The Lease With Women's Division Of The Board Of Global Ministries Of The United Methodist Church For Lots 19, 20 And 21 Of The Marathon Addition To The City Of Seward, Effective October 1 S, 2009 Signed this 8`" day of October, 2009. Mayor City anager _ 2 Council Members Upon this request the City Clerk will give due and proper notice as required by SCC 2.10.032 (No business shall be transacted other than stated above.) SEWARD CITY COUNCIL NOTICE OF PUBLIC HEARING October 20, 2009 NOTICE IS HEREBY GIVEN that the Seward City Council will conduct a public hearing on the following items of business at a special meeting on October 20, 2009. Resolution 2009-099, Authorizing The City Manager To Terminate The Lease With Women's Division Of The Board Of Global Ministries Of The United Methodist Church For Lots 19, 20 And 21 Of The Marathon Addition To The City Of Seward, Effective October 15, 2009. Essential terms and conditions of leases and all other pertinent. copies of public hearing documents ai~e available for review at the city clerk office. The public hearing will commence at 6:00 p.m., or as soon thereafter as business permits, in the City Council Chambers, City Hall, 4l0 Adams Street, Seward. All interested persons are invited to attend the meeting and participate in the discussion; or, written comments maybe sent to the City of Seward, c/o City Clerk, P.O. Box 167, Seward, AK 99664, or e-mailed to clerkC cityofseward.net. PUBLISHED: Will be published in Seward Phoenix Log on Thursday, October 7 & 14, 2009 under City Calendar. (P.O. # 101750] POSTED: Wednesday, October 7, 2009 City Hall bulletin board U.S. Post Office Harbormaster's Building Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2009-099 A RESOLUTION OF THE SEWARD CITY COUNCIL AUTHORIZING THE CITY MANAGER TO TERMINATE THE LEASE WITH WOMEN'S DIVISION OF THE BOARD OF GLOBAL MINISTRIES OF THE UNITED METHODIST CHURCH FOR LOTS 19, 20 AND 21 OF THE MARATHON ADDITION TO THE CITY OF SEWARD, EFFECTIVE OCTOBER 15, 2009 WHEREAS, effective April 9, 2003, the City of Seward entered into a Lease Agreement with the Women's Division of the Board of Global Ministries of the United Methodist Church ("Women's Division") for the land formerly occupied by Wesley Rehabilitation and Care Center, Inc.; and WHEREAS, the term of the original Lease Agreement was three years, with the City exercising options to extend the lease agreement to April 9, 2008, followed by a subsequent Agreement dated October 16, 2008, authorizing a lease of the facility through December 31, 2009; and WHEREAS, the City has completed construction of the Seward Mountain Haven long- term care replacement facility and through its operator, Providence Health & Services, has transitioned all occupants into the new facility and therefore has no further use of the Wesley facility; and WHEREAS, the City and the Women's Division desire to terminate the lease agreement effective October 15, 2009, with the City agreeing to pay lease payments through the initial term of December 31, 2009 at a monthly rate of $1,500. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section I. For the reasons stated in the recitals and incorporated herein by this reference, it is in the public interest to terminate the existing lease as soon as practicable in order to alleviate the City's obligations to continue to maintain and operate a leasehold interest in a facility no longer being used by the City. The City Manager is authorized and directed to terminate the Lease with the Women's Division in substantially the forn~ as presented at this meeting. Section 2. The City agrees through its operator Providence Health & Services, to pay the remaining lease payments of $1,500 per month through the term of December 31, 2009, but the CITY OF SEWARD, ALASKA RESOLUTION 2009-099 PAGE2 parties agree the City shall have no further obligations to maintain the premises beyond October 15, 2009. Section 3. This resolution shall take effect 30 days after adoption and posting. PASSED AND APPROVED by the City Council of Seward, Alaska this 20th day of October, 2009. THE CITY OF SEWARD, ALASKA Clark Corbridge, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, City Clerk, CMC (City Seal) Council Agenda Statement Meeting Date: October Z~ , 2009 Prom: Kristin Erchinger, Finance Director Through: Phillip Oates, City Manager~~ Agenda Item: Lease Amendment with Women's Division of the Board of Global Ministries of the United Methodist Church for the long-term care facility BACKGROl1ND & JUSTIFICATION: On April 9, 2003, the City entered into a Lease Agreement with the Women's Division of the Board of Global Ministries of the United Methodist Church for Lots 19, 20 and 21 of the Marathon Addition to the City of Seward. The term of the Lease Agreement was three years, with the option to extend for two one-year periods. The City exercised its option to extend, and the extended term expired in April 2008. The lease was subsequently amended on October 16, 2008, with an expiration of December 31, 2009. Since the City and Providence have transitioned out of the Wesley facility and into the new Seward Mountain IIaven Facility, it no longer makes sense for the City to maintain responsibility for the Wesley facility. Therefore, the City has requested a termination of the lease of the Wesley building effective October 15, 2009. In exchange for this earlier termination, the City has agreed to pay the rental payments of $1,500 per month through the original term of December 31, 2009. The primary benefit of the earlier termination of this lease by the City is that the staff of Providence will no longer be required to provide daily maintenance of the boilers and heating system. 'The logistics of this ongoing maintenance is difficult given their small maintenance staff, and given the new requirements of moving into a facility consisting of five buildings. In addition, the City benefits from this lease termination by having no further responsibility as it relates to maintaining the facility. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures or Other Plans ur Policies: Yes (List Below) No FISCAL NOTE: Providence Seward Medical & Care Center will continue to pay the Women's Division the agreed-upon $1,500 per month lease payment through December 31, 2009. However, there will be no further financial or maintenance requirements placed on the City as a~~~~r//eJJsult of early termination of the lease. Approved by Finance Department r~'CAi~a~'~1~ ATTORNF,Y REVIEW: yes RECOMMENDATION: The City Council approve Resolution No. 2009-~ authorizing the early termination of the lease with the Women's Division for Lots 19, 20, and 21 of the Marathon Addition to the City of Seward. AMENDMENT NO. 1 TO AGREEMENT TO TERMINATE LEASE This Amendment No. 1 ("Amendment") to the Agreement to Extend Lease ("Agreement") is made this day of October, 2009, by and between the Women's Division of the General Board of Global Ministries of the United Methodist Church ("Women's Division" or "Owner") as owner and the City of Seward ("City" or "Tenant") as tenant. WHEREAS, the parties have entered into a lease agreement ("Lease") for certain property identified as Lots 19, 20 and 21 of the Marathon Addition to the City of Seward, including the buildings and other improvements thereon (the "Premises"), which Premises City then sub-leased to a long-term care provider (the "Sub-tenant"); and WHEREAS, the Lease provided for a term of April 9, 2003 through April 8, 2006, with an option for the City to extend the Lease for two (2) additional one (1) year periods, which option was exercised by the City and accepted by Women's Division; and WHEREAS, the Lease and the Options to Extend expired on April 8, 2008, and the City and the Women's Division entered into an Agreement to Extend Lease on October 16, 2008, with said Agreement being retroactive effective April 9, 2008 through December 31, 2009; and WHEREAS, the Agreement provided for a monthly rent of $1,500 through the initial term of December 31, 2009. Now therefore, for and in consideration of the mutual promises and covenants herein contained, the Parties agree as follows: 1. Term. Women's Division and City agree that the term of the Lease shall be terminated as of October 15, 2009, on the terms and conditions set out herein. 2. Rent. City shall pay the monthly rent due under the original Agreement (through December 31, 2009) in advance, prior to October 15, 2009, and all other City obligations under the Lease and the Agreement will terminate as of October 15, 2009. 3. Wind-down. City shall remove all of the City's furniture and fixtures from the Premises, turn over the keys to the Owner's representative on October 15, 2009, and vacate the Premises on or before October 15, 2009. Owner hereby agrees to accept responsibility for the Premises as of October 15, 2009. 4. Authorization to Execute. Each individual signing this Amendment on behalf of either party represents and warrants that he or she is duly authorized to execute and deliver this Amendment on behalf of that party, that all required actions by the party have been taken to authorize execution, delivery and performance of this Amendment, and that this Amendment is binding upon that party. In witness whereof, the parties have signed this Amendment on the day and year first set out above. City of Seward: Women's Division of the General Board of Global Ministries of the United Methodist Church: By: Phillip E. Oates City Manager ATTEST: By: _ Martha S, Treasurer Knight Jean Lewis, CMC City Clerk