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CITY OF SEWARD, ALASKA
RESOLUTION 2013-073
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
NEW LEASE WITH GCI COMMUNICATION CORP. LOT 1, BLOCK 10
FOURTH OF JULY CREEK SUBDIVISION, SEWARD MARINE
INDUSTRIAL CENTER,KENAI PENINSULA BOROUGH,PLAT NO.97-108
SEWARD RECORDING DISTRICT,THIRD JUDICIAL DISTRICT,STATE
OF ALASKA
WHEREAS,the City is owner of real property described as Lot 1, Block 10 Fourth of July
Creek Subdivision; and
WHEREAS, this is land that has been previously leased to GCI; and
WHEREAS, the lease request is consistent with the Strategic Plan and the Seward Marine
Industrial Center Plan.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The Council has determined that the essential terms and conditions of the
proposed lease with GCI Communication Corp. for the real property described as Lot 1, Block 10,
Fourth of July Creek Subdivision located in the City of Seward, Alaska are in the public's interest.
Section 2. The City Manager is authorized to execute a new lease with GCI Communication
Corp. in substantially the form as presented at this meeting.
Section 3. This resolution shall take effect 30 days from the date and posting of adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14`h' day of
October, 2013.
CITY OF SEWARD, ALASKA
RESOLUTION 2013-073
THE CITY OF SEWARD, ALASKA
—Ds-4
David Seaward, Mayor
AYES: Valdatta, Bardarson, Keil, Casagranda, Terry
NOES: None
ABSENT: Shafer
ABSTAIN: Seaward
ATTEST:
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4,
Jlhanna Kinney, CMC
' ity Clerk
(City Seal)
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Agenda Statement
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Meeting Date: October 14, 2013 1,
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To: City Council
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Through: City Manager Jim Hunt
From: Harbormaster Mack Funk
Agenda Item: GCI Communication Corp.
Renewed lease at Lot 1, Block 10 Seward Marine Industrial Center
BACKGROUND & JUSTIFICATION:
GCI has been renting a small (1886 square feet) parcel at SMIC since 1988. The original lease
expired on June 23, 2013, but it was extended on a month to month basis until a new lease could be
negotiated. The new lease is for five years with the potential to extend for three additional five year
periods.
The lease proposal was modified to some extent in order to meet both GCI's and the City's
needs:
• The Insurance Waiver of Subrogation language (Section 15.2) was revised, but the City's
insurance carrier has approved the proposed new language.
• Arbitration (Section 17) will no longer be limited to claims less than $50,000.
• Since the property is located at SMIC, if there is a fire the City Fire Department won't be
able to respond as quickly as to a fire on the west side of resurrection Bay. Therefore new
language was drafted in Section 34 of the lease.
• City staff made one concession to GCI by allowing the word such to be inserted into
Environmental Concerns Clause of the Lease on page 20:
d) Indemnification of CITY. Any other provision of this LEASE to the contrary
notwithstanding, LESSEE shall defend, indemnify, and hold CITY harmless from
and against any claims,demands, penalties,fines,judgments, liabilities,settlements,
damages, costs, or expenses (including, without limitation, attorney, consultant and
expert fees,court costs,and litigation expenses)of whatever kind or nature,known or
unknown, contingent or otherwise, arising out of or in any way related to:
i) The presence,disposal, release, or threatened release of any such Hazardous
Material which is on or from the Leased Land.
ii) Any personal injury (including wrongful death) or property damage (real or
personal) arising out of or related to such Hazardous Material or any use of
the Leased Land;
iii) Any lawsuit brought or threatened, settlement reached,or government order
relating to such Hazardous Material or any use of the Leased Land; and/or
iv) Any violation of any laws applicable thereto; provided, however, that this
Section 19.1(d)shall apply only if the acts giving rise to the claims,demands,
(0
penalties, fines, judgments, liabilities, settlements, damages, costs, or
expenses(1)occur prior to or during the term of this LEASE;and(2)arise,in
whole or in part, from the use of, operations on, or activities on the Leased
Land by LESSEE or LESSEE's predecessors in interest, employees, agents,
invitees,contractors, subcontractors, authorized representatives, subtenants,
or any other such persons. The provisions of this subparagraph shall be in
addition to any other obligations and liabilities LESSEE may have to CITY at
law or equity and shall survive the transactions contemplated herein and shall
survive the termination of this LEASE.
In general legal terms, the addition of such restricts the Lessee's responsibility for all person that
may cause the problems in paragraph iv)to specific classes of people. It is Administration's belief
that the practical effect of adding such is very minimal and the exposure to the City for claims is
relatively insignificant.
INTENT:
To approve a long-term lease between the City of Seward and GCI Communication Corp. at Lot 1,
Block 10, Ll'h of July Creek Subdivision, Seward Marine Industrial Center.
CONSISTENCY CHECKLIST: Yes No N/A
1 Comprehensive Plan (document source here): This lease meets the plan
. X
goals to develop SMIC as a major industrial area of the community.
2 Strategic Plan (document source here): Endeavour to provide modern
. X
communication infrastructure. (Page 5)
3. Other (list):
FISCAL NOTE:
Effective July 1,2013 the annual lease amount is$817.60 plus tax. The lease rate is based on 8%of
the fair market value ($10,000) based on an appraisal by MacSwain Appraisals, LLC dated March
12, 2010. In accordance with City policy, the leased property will be re-appraised every five years
(next scheduled for 2015) and the rent will be adjusted accordingly. Between appraisals, the rent
will be adjusted each year (2.2% for 2013) according to the Consumer Price Index (CPI).
Approved by Finance Department:
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Approve Resolution 2013- 01 3 authorizing the City Manager to enter into a new Lease with GCI
Communication Corp. Lot 1, Block 10, Fourth of July Creek Subdivision in the Seward Marine
Industrial Center,Kenai Peninsula Borough Plat No. 97-108 in the Seward Recording District,Third
Judicial District, State of Alaska.