HomeMy WebLinkAboutRes1966-579
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CITY OF SBWARD, ALASKA
Project No.:
07-1-0adti9
RESOLU'l'ION NO. 579
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Offer Datel NOV 2
1966~.,(S
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Whereas the CITY OF SEWARD, ALASKA , has made application for
Federal assistance under the Public Works and Economic Development Act of
1965 (P.L. 89-136) in connection with the above project, and, pursuant
to such application, the Economic Development Administration, u. s.
Department of Commerce, has transmitted for acceptance an Offer to make a
loan and grant in connection with such project; and
Acceptance of Offer of Loan and Grant
Whereas sain Offer of Loan and Grant, including the attached exhibits, has
been fully considered in accordance with all pertinent rules of procedure
and legal requirements and has been made a part of the Borrower's public
records, and
.;
Whereas it is deemed advisable and in the public interest that said Offer
be accepted;
Now, therefore, be it resolved by the city Council
the governing body of the Borrower, that said Offer be and it hereby is
accepted without reservation or qualification.
Adopted by the aforesaid governing body of the Borrower on the twenty-first
day of SNoveulber , 1966 . L:/ . \ '\ /. ~'.: ~ .' ,
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R. W. Kirkpat ick, Mayor
Date
November 23, 1966
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Title city Clerk-'1'reasurer
Approved as a valid Acceptance of the above-mentioned Offer of Loan and
Grant.
Note - '!'he city Manager is the Officer required to give info~a-
tion. '!'he City Manager and the ,City Clerk must sign con-
tracte. '!'he Mayor and Cit Cler usn esolutions.
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U.S. DEPARTMENT OF COMMERCE
E:CONOM IC DE:VE:l.OPMENT ADM IN ISTRATION
WASHINGTON, C.C. 20230
Public Works and Development Facilities
Project No.: 07-1-00089
Offer Date : Nnv 2 1966
OFFER OF LOAN AND GRANT
Pursuant to its authority under the Public Works and Economic Development
Act of 1965 (P. L. 89-136) and subject to the Special Conditions attached
hereto and made a part hereof as Exhibit "A", the Standard Terms and
Conditions attached hereto and made a part hereof as Exhibit "B"; and the
Bond Specifications attached hereto and made a part hereof as Exhibit "C",
the Economic Development Administration, U.S. Department of Commerce,
hereinafter referred to as the "Government", hereby offers to make a Loan
not to exceed $162,000 and a Grant not to exceed $378,000 to the City of
Seward, Alaska, hereinafter referred to as the "Borrower", in order to
aid in financing the construction or equipping of public works or development
facilities presently estimated to cost $540,000 consisting of harbor dredging
and construction of dock and facilities hereinafter collectively referred
to as the "Project"; provided that in no event shall the Grant exceed 70 per
cent of the actual cost of the Project as determined by the Government, nor
shall the combined Loan and Grant exceed such cost.
The Loan herein provided for shall be made by purchase from the Borrower,
at the principal amount thereof plus accrued interest thereon of its G. O.
Bonds in the aggregate principal amount of $162,000 and bearing interest
at the rate of 4 1/8 per centum per annum of such description and secured
in such manner and containing such provisions as shall be satisfactory
both to the Government and to the Borrower, but generally in conformity
with the Bond Specifications attached hereto.
By acceptance hereof the Borrower agrees to offer its aforesaid obligations
for public sale. The Government will submit its bid for the Bonds and such
bid will be for all of the Bonds at their par value, plus accrued interest,
at the rate of 4 1/8 per centum per annum on all or anyone or more of the
blocks of Bonds. In the event any other bidder or bidders offer to purchase
all of the Bonds or any portion of the Bonds in blocks as specified at a net
interest cost of not more than 4 1/8 per centum per annum, the Bonds or
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any such portion thereof will not be purchased by the Government. In the
event any of the Bonds are awarded to the Government, it is agreed that
the obligations hereunder shall continue in the same manner as if all the
Bonds were sold to the Government. In the event no bid is received from
a bidder or bidders other than the Government within the terms herein
specified, all the Bonds will be purchased by the Government.
Upon acceptance, this Offer and the Acceptance, together with the Special
Conditions, Standard Terms and Conditions, and the Bond Specifications
herein referred to, shall constitute the "Loan and Grant Agreement".
This Offer must be accepted and returned to the Economic Development
Administration prior to.) c~ 2 1966
ECONOMIC DEVElOPMENT ADMINISTRATION
By:
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EXHIBIT "A"
u. S. DEPARTMENT OF COMMERCE
Economic Development Administration
Public Work0 and Development Facilities
Project No. 07-1-00089
APPLICANT: City of Seward
Seward, Alaska
SPECIAL CONDITIONS
Prior to any obligation on the part of the Government to disburse any
funds, the City of Seward shall submit to the Government its
written covenants and the written covenants of any other owners of the
industrial park or land benefited, in a form satisfactory to the
Government, providing that for a period of two years from the date of
acceptance of this offer of assistance, neither the City of Seward nor such
other owner(s) shall sell, lease, or otherwise make any part of such
premises available for occupancy by any person, firm or entity, unless
such occupant shall first furnish to the applicant for transmittal to
the Government properly executed standard forms covering the obligation
of such occupant to comply with the Civil Rights Act of 1964 and
evidencing that such occupancy is not in violation of the relocation
prohibitions of the Public Works and Economic Development Act of 1965.
The E & A Boat Builders must submit Form 501-A and 503 prior to commencement
of construction.
The Government shall be under no obligation to advance funds under this
Offer of Loan and Grant unless the Borrower submits assurances satisfactory
to the Government that all the facilities to be built by the project shall
remain for the use and benefit of the public and they will not be leased
on a long-term basis or be for the exclusive use of any particular private
industrial or commercial user.
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EXHIBIT liB"
(Loans and Grants)
U. S. DEPARTMENT OF COMMERCE
Economic Development Administration
Public Works and Development Facilities
STANDARD TERMS AND CONDITIONS--LOANS AND GRANTS
I. The Government shall be under no obligation to advance funds unless the
Borrower is in compliance with the following requirements:
A. The Borrower shall comply, and require each of its contractors and
subcontractors employed in the completion of the project to comply
with all applicable Federal and State or Territorial laws. In
compliance with these laws, the Borrower agrees that, among other
things, it will take all positive steps necessary to conform to
the requirements of the following statutes and Executive Orders
and the respective regulations issued thereunder:
1. The Davis-Bacon Act, as amended (40 USC 276a-276a-(7));
2. The Contract Work Hours Standards Act (40 USC 327-332);
3. The Copeland "Anti-Kickback" Act (40 USC 276(c); (18 USC 874);
and;
4. Title VI of the Civil Rights Act of 1964 (42 USC 2000d-2000d-4);
and Executive Orders 11114 and 11246, and specifically to the
following:
The Borrower hereby agrees that it will incorporate or cause to
be incorporated into any contract for construction work, or
modification thereof, as defined in the rules and regulations of
the President's Committee on Equal Opportunity, Which is paid
for in whole or in part with funds obtained from the Federal
Government or borrowed on the credit of the Federal Government
pursuant to a grant, contract, loan, insurance or guarantee,
or undertaken pursuant to any Federal program involving such
grant, contract, loan, insurance or guarantee, the following
equal opportunity clause:
"During the performance of this contract, the contractor
agrees as follows:
"(1) The contractor will not discriminate against any
employee or applicant for employment because of race, creed,
color, or national origin. The contractor will take affirma-
tive action to ensure that applicants are employed, and that
employees are treated during employment, without regard to
their race, creed, color, or national origin. Such action
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shall include, but not be limited to the following: Employment,
upgrading, demotion, or transfer; recruitment or recruitment
advertising; layoff or termination; rates of payor other forms
of compensation; and selection for training, including appren-
ticeship. The contractor agrees to post inconspicuous places,
available to employees and applicants for employment, notices
to be provided by the contracting officer setting forth the
provisions of this nondiscrimination clause.
.
"(2) The contractor will, in all solicitations or advertise-
ments for employees placed by or on behalf of the contractor,
state that all qualified applicants will receive consideration
for employment without regard to race, creed, color, or national
origin.
"(3) The contractor will send to each labor union or
representative of workers with which he has a collective
bargaining agreement or other contract or understanding,
a notice to be provided by the agency contracting officer,
advising the labor union or workers' representatives of
the contractor's commitments under Section 202 of
Executive Order No. 11246 of Sept. 24, 1965, and shall
post copies of the notices in conspicuous places available
to employees and applicants for employment.
"(4) The contractor will comply with all provisions of
Executive Order No. 11246 of September 24, 1965, and of the
rules, regulations, and relevant orders of the Secretary of
Labor.
"(5) The contractor will furnish all information and
reports required by Executive Order No. 11246 of September 24,
1965, and by the rules, regulations, and orders of the
Secretary of Labor, or pursuant thereto, and will permit
access to his books, records, and accounts by the contracting
agency and the Secretary of Labor for purposes of investigation
to ascertain compliance with such rules, regulations and orders.
"(6) In the event of the contractor's noncompliance with
the nondiscrimination clauses of this contract or with any of
such rules, regulations, or orders, this contract may be
cancelled, terminated or suspended in whole or in part and
the contractor may be declared ineligible for further
Government contracts in accordance with procedures authorized
in Executive Order No. 11246 of Sept. 24, 1965, and such other
sanctions may be imposed and remedies involved as provided in
Executive Order No. 11246 of September 24, 1965, or by rule,
regulation, or order of the Secretary of Labor, or as otherwise
provided by law.
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"(7) The contractor will include the prov1s10ns of
Paragraphs (1) through (7) in every subcontract or purchase
order unless exempted by rules, regulations, or orders of
the Secretary of Labor issued pursuant to Section 204 of
Executive Order No. 11246 of Sept. 24, 1965, so that such
provisions will be binding upon each subcontractor or
vendor. The contractor will take such action with respect
to any subcontract or purchase order as the contracting
agency may direct as a means of enforcing such provisions
including sanctions for noncompliance: Provided, however,
That in the event the contractor becomes involved in, or
is threatened with, litigation with a subcontractor or
vendor as a result of such direction by th~ contracting
agency, the contractor may request the United States to
enter into such litigation to protect the interest of
the United States."
B. If the Project includes sewer or other waste disposal facilities, no
Government funds will be disbursed unless the Secretary of Health,
Education, and Welfare issues a certificate as required by section
106 of the Public Works and Economic Development Act of 1965
'(P.L. 89-136).
C. When applicable, the Borrower shall file the certification and
agreements required by section 711 of the Public Works and
Economic Development Act of 1965 (P.L. 89-136).
D. If compliance with any of the provisions of the Agreement would
require the Borrower to violate any applicable Federal, State or
Territorial law, the Borrower shall, as soon as possible, in
writing notify the Government, so that appropriate modifications
to the Agreement may be made to allow the Borrower to proceed as
soon as possible with construction of the Project.
II. The Government shall have the right to cancel all or any part of its
obligations hereunder if:
A. Any representation made by the Borrower to the Government in
connection with the application for Government assistance
shall be incorrect or incomplete in any material respect.
B. The Government determines that the Borrower has failed to
proceed with reasonable diligence in the financing or con-
struction of the Project.
C. The scope or character of the Project is changed substantially
so as to adversely affect the accomplishment of the Project as
intended.
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D. The Borrower has violated commitments made by it in its
application and supporting documents.
E. Any official, employee, architect, attorney, engineer or
inspector of or for the Borrower or any Federal, State
or local official or representative, becomes directly or
indirectly interested financially in the acquisition of
any materials or equipment, or in any construction for
the project, or in the furnishing of any services to or
in connection with the project, or in any benefit arising
therefrom.
III. Prior to any solicitation of bids for construction work or for
material or equipment acquisition, the Borrower shall, in addition
to any other steps required by this Agreement, obtain approval by
the Government of (a) its final plans and specifications and (b)
the bidding procedures for all construction work and for all
material and equipment acquisitions.
IV. Prior to the commencement of construction the Borrower shall
furnish evidence satisfactory to the Government that:
A. The Project costs are reasonable,
B. It has sufficient funds in addition to the funds provided by
the Government to complete the Project, including possible
overruns, and
c. It has obtained, or can obtain, all rights-of-way, permits,
franchises and all Federal, State and local approvals necessary
to the completion of the Project.
V. In addition to the other requirements of this Agreement, the
Borrower agrees to follow the following procedures during
construction:
A. The Borrower shall perform all construction work and make all
material and equipment acquisitions by contracts which have
the prior approval of the Government, except as otherwise
specifically authorized by the Government.
B. The Borrower shall require each contractor and subcontractor
engaged in the performance of work on the Project to furnish
a performance bond as security for the faithful execution of
his contract in an amount equal to at least the total amount
of his contract price and such payment bond as may be required
by Federal, State or Territorial law as security for the
payment of all persons performing labor on the Project in a
form and with surety approved by the Government.
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C. The Borrower agrees that it will not, without the prior written
consent of the Government. order or permit any change in the
plans and specifications which would entail any substantial
variance in the Project, or increase the cost thereof.
D. The Borrower shall provide and maintain on its behalf competent
and adequate architectural or engineering services to supervise
the development and construction of the Project.
E. The Borrower shall establish a construction account, satisfactory
to the Government, into which shall be deposited funds for the
financing of the Project.
F. The Borrower shall cause to be erected at the site of the Project,
and maintained during construction, signs satisfactory to the
Government identifying the Project and indicating the fact that
the Government is participating in the development of the Project.
VI. General requirements;
A. The Borrower shall maintain and preserve. and require each of its
contractors and subcontractors to maintain and preserve, such
books, records, and other data as the Government may require.
B. The Borrower shall provide with each of its contractors and
subcontractors for the right of the Government to inspect and
monitor all work, materials, payrolls, records and personnel.
invoices and other relevant data and records pertaining to
the development and construction of the Project.
C. The Borrower covenants that each of its officials or employees
having custody of Project funds during acqusition. construction,
development and operation, shall be bonded at all times in an
amount at least equal to the total funds in his custody at any
one time.
VII. Disbursement of Government funds will ordinarily be made only after
completion of the Project unless the Government upon request agrees
to partial disbursements prior to completion.
VIII. A. If the actual costs of the Project exceed the estimated costs,
the Borrower will provide the funds for such excess costs.
B. If the actual costs of the Project are less than the estimated
costs, the Grant, if any, will be reduced to the extent necessary
to comply with the percentage limitation set forth in the Offer.
(The remaining excess. if any, after the reduction of Grant, in
the case of loans. shall be applied to bond redemption).
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IX. By Acceptance of the Offer for Government assistance, the Borrower
represents that it has not paid, and also, agrees not to pay, any
bonus or commission for the purpose of obtaining an approval of
its application for this assistance.
X. A. The Borrower shall initiate and prosecute to completion all
proceedings necessary to the authorization, issuance, and sale
of the Bonds and to the security thereof. When the said
proceedings have been completed to the point of but not
including the delivery of the Bonds to the Government, the
Borrower may file a requisition requesting the Government
to purchase the Bonds. The requisition shall be supported
by such data as the Government shall require to determine
whether the Government is obligated under the provisions
of the Loan Agreement to honor such requisition. If the
Government is so obligated, it will purchase the Bonds
covered by such requisitions, within the limitations,
however, specified in the Loan Agreement.
B. The Borrower shall furnish the Government a transcript of
proceedings for the authorization, issuance, sale and security
of the Bonds evidencing that the Bonds, when delivered and paid
for, will constitute binding and legal obligations payable and
secured in accordance with their tenor, and that all pro-
ceedings for the financing and the acquisition, construction
and development of the Project preliminary to the delivery of
the Bonds to the Government have occurred in due time, form,
and manner, as required by law.
c. In the event that the Government, pursuant to its bid, is
requested to purchase all or any part of the Bonds, the
Borrower shall deliver upon closing one or more bonds in
principal amount(s) satisfactory to the Government, registered
as to principal and interest in the name of the Government.
D. The Borrower agrees that upon ninety (90) days written notice
it will, at its own expense, issue in exchange for the Bonds
held by the Government, coupon bonds of equal aggregate princi-
pal amount in denominations satisfactory to the Government
maturing as provided in the Bond Specification which bonds
shall be substantially in the form required by the Government.
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E. Simultaneously with the delivery of any bonds to the Government,
the Borrower shall furnish to the Government an opinion of bond
counsel satisfactory to the Government which shall express its
general approval of all of the bonds, and specifically and
unqualifiedly, the bonds then being delivered to the Government
and shall state that said bonds have been issued pursuant to
all requirements of law, and that said bonds, when delivered
and paid for, will constitute binding and legal obligations
payable and secured in accordance with the tenor thereof.
F. The Borrower shall include in the proceedings for the authorization
issuance, sale and security of the Bonds, provisions for the
payment of the principal of and interest on the Bonds and for the
security thereof of the nature required to assure such payment and
to safeguard the loan hereunder, including, in case the Bonds are
payable in whole or in part from any special sources of revenues,
provisions designed to assure the production of such revenues and
the application thereof to the extent required for the payment and
security of the Bonds and interest thereon, including the
maintenance of reasonable reserves.
G. So long as the Government holds any of the Bonds, the Borrower
shall furnish operating statements for the Project, and any
facilities, the revenues of Which are pledged to payment of
the Bonds, in such form and substance for such periods as may
be requested by the Government.
H. The Borrower shall during construction and thereafter so long
as the Government holds any Bonds, carry insurance, and during
construction require each contractor and subcontractor to carry
insurance, of such types and in such amounts as the Government
may specify with insurance carriers acceptable to the Government.
I. If required by the Government, the Borrower will enter into a
Trust Agreement designating a bank acceptable to the Government
as Trustee and containing such other terms and provisions as
may be satisfactory to the Government.
J. In the event no Trust Agreement is required by the Government, the
Borrower may be required by the Government to establish such accounts,
perform such duties and comply with such terms and conditions as the
Government might ordinarily require of a Trustee in a Trust Agreement.
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K. The Trust Agreement shall provide for the payment of all
revenues from the Project into an account with the Trustee
with provisions for the payment of current expenses therefrom
and the transfer of the net remaining funds into appropriate
additional accounts for the purpose of providing a maintenance
reserve, funds for current bond service, reserves for bond
service and bond redemption, all in a manner and form
acceptable to the Government. The funds in all such accounts
shall be held in trust and shall be secured as required by law
for deposit of Government funds.
L. The Borrower shall establish such accounts and maintain such
accounting procedures as may be necessary or helpful in the
accurate accounting for andsegregat~ofProject revenues
and for the allocation of expenses, costs of maintenance and
overhead.
M. Moneys on deposit to the credit of accounts and funds established
and maintained in conformity with the provisions of the Loan
Agreement or to fund payments from net revenues may be invested
upon request by the Borrower, in direct obligations of or
obligations the principal of and the interest on which are
guaranteed by the U. S. Government.
N. To the extent of its interest in the outstanding principal
amount of such bonds and the accrued interest thereon the
Government shall have a lien on the net revenues of the
Project.
O. As long as any of the Bonds are held by the Government, the
Borrower shall not dispose of its title to the Project or to
any useful part thereof, without first obtaining the written
consent of the Government.
P. So long as the Government holds any of the Bonds, it will
waive for such Bonds the noncallable provisions, redemption
premiumB, and publications of notice of call applicable
thereto with respect to the Bonds held by the Government.
Q. The Loan Agreement is not for the benefit of third parties,
including the holders from time to time of any of the Bonds,
and the Government shall be under no obligation to any such
parties, whether or not indirectly interested in said
Agreement, to pay any charges or expenses incident to
compliance by the Borrower with any of its duties or obli-
gations thereunder.
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XI. The Government shall be under no obligation to disburse funds under
this offer of Grant and/or Loan unless the Borrower includes in all
contracts and subcontracts, in language acceptable to the Government,
provisions requiring the maximum feasible employment of local labor
for work which is or reasonably may be done as on-site work, and
unless the Borrower takes reasonable steps to assure continuing
compliance with such contract provisions.
XII. In the event that the work intended to be financed by the Project
shall not have been accomplished or committed by contract within
24 months of the date of acceptance of the Offer of Loan and Grant,
the Government may, at its option and without cause, terminate all
or any part of its obligations hereunder.
BOND SPECIFICATIONS EXHIBIT "C"
Aggregate Principal Amount of Bonds: $162,000
Designation: City of Seward, Alaska General Obligation Bonds
Type: Negotiable Serial Coupon Bonds
Security: The bonds will be secured by taxes levied upon all taxable property.
Date: June I, 1967
Interest Rate: 4-1/8%
Denomination: $1,000
Bond numbers: 1 to 162, inc.
Interest Payment Dates: First payment December 1, 1967, and semi-annually thereafter
on June 1 and December 1 of each year.
Maturities as of June 1:
1968 $5,000 1975 $7,000
1969 5,000 1976 8,000
1970 6,000 1977 8,000
1971 6,000 1978 8,000
1972 6,000 1979 9,000
1973 7,000 1980 9,000
1974 7,000 1981 9,000
1982 $ 9,000
1983 9,000
1984 10,000
1985 11,000
1986 11, 000
1987 12,000
Place of Payment: Principal and semi-annual interest payable at the office of the
City Treasurer or at the option of the holder at the fiscal agency for the State
of Alaska in New York, New York.
Registration Privileges: Registration as to principal only.
Redemption Privileges: Trebonds shall be callable at the option of the City in whole
or in part in inverse numerical order on any interest payment date or or after
June 1, 1977, upon 30 days prior written notice, at par and accrued interest.
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