HomeMy WebLinkAboutRes1993-004
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 93-004
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, RELATING TO THE ARBITRATION
DECISION AND ORDER IN THE MATTER OF THE ARBITRATION
BETWEEN JAMES T. PRUITT DBA SEWARD SHIP'S CHANDLERY
AND CITY OF SEWARD, AND APPROPRIATING FUNDS
WHEREAS, the American Arbitration Association panel issued its Decision and
Order in the matter of the arbitration between James T. Pruitt dba Seward Ship's
Chandlery and City of Seward on January 4, 1993; and
WHEREAS, the panel has determined that Pruitt has defaulted in the Lease by his
failure to construct by August 31, 1991, a covered work station sufficient to house a 300-
foot ship; and
WHEREAS, the panel has further determined that the City cannot remedy that
default for twenty-four (24) months; and
WHEREAS, the panel has determined that the City's Tariff Amendment No.2 is
invalid under the Lease; and
WHEREAS, the panel has determined the period of free rent under the Lease
ended on September 30, 1990, and found that the current fair market annual rental rate
for the leased land is Thirty-Six Thousand, One Hundred Twelve Dollars ($36,112'()()); and
WHEREAS, the panel has determined that Pruitt's total current rental obligation
is Seventy-Seven Thousand, Two Hundred Eighty Dollars ($77,280.00); and
WHEREAS, the panel has awarded Pruitt attorney fees and costs of Eighty-Three
Thousand, Four Hundred Fifty-Five Dollars and Ninety-Three Cents ($83,455.93); and
WHEREAS, the panel has determined that the City shall pay the fees and
expenses of the American Arbitration Association, totalling Forty-Four Thousand, Four
Hundred Four Dollars and Sixty-Seven Cents ($44,404.67); and
WHEREAS, all payments due to either party under the Decision and Order are
payable by February 4, 1993; and
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 93-004
WHEREAS, the City's own costs of the arbitration amount to approximately Two
Hundred Twenty-Five Thousand Dollars ($225,000.00), toward which funds totalling One
Hundred Forty-Five Thousand Dollars ($145,000.00), have been previously appropriated;
and
WHEREAS, it is necessary to appropriate additional funds to close out the
arbitration;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The sum of One Hundred Thousand Dollars ($100,000.00) is hereby
appropriated from the General Fund Fund Balance Account No. 101-3070 to the General
Fund Legal Account No. 101-1115-5170 (subject matter - SSC Arbitration No. 1009), and
the sum of One Hundred Thousand Dollars ($100,000.00) is appropriated from the Harbor
Fund Fund Balance Account No. 401-3070 to the Harbor Fund Legal Account No. 401-
4110-5170 (subject matter- SSC Arbitration No. 4301).
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
25th day of January, 1993.
THE CITY OF SEWARD, ALASKA
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Dave W. Crane, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Bencardino, Crane, Darling, Krasnansky, Sieminski, Swartz & White
None
None
None
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CITY OF SEWARD, ALASKA
RESOLUTION NO. 93-004
A TrEST:
APPROVED AS TO FORM:
Perkins Coie, Attorneys for the city of
Seward, Alaska
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(City Seal)
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Fred B. Arvidson
City Attorney