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HomeMy WebLinkAboutRes2000-009 I I I Sponsored By: Janke CITY OF SEWARD, ALASKA RESOLUTION NO. 2000-009 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE SHIPLIFT MAINTENANCE AND OPERATING AGREEMENT BETWEEN THE CITY OF SEW ARD,ALASKAAND SEWARD SHIP'S DRYDOCK, INC. WHEREAS, since 1980 the City of Seward ("City") has provided for the development of the Seward Marine Industrial Center ("SMIC"), and the City expended over $40 million in construction of improvements to the area, including a syncrolift ship lift system, ship transfer system, and related rail systems ("Shiplift Facility"); and WHEREAS, by Resolution No. 95-001, the City Council approved the long-term lease of Lot 1, Block 7, SMIC ("Lease") and a Shiplift Maintenance and Operating Agreement with Seward Ship's Drydock, Inc., and Resolution No. 95-001 was the subject of a referendum election, the result of which upheld the aforementioned Resolution; and WHEREAS, the Lease continues in full force and effect, and pursuant to the terms ofthat Lease, Seward Ship's Drydock, Inc. may request renewal of the Maintenance and Operating Agreement if(l) the Lease term has not expired before the renewal term of the Maintenance and Operating Agreement would commence, (2) Seward Ship's Drydock, Inc. is not in default under the Lease, and (3) notice of intent to renew the Maintenance and Operating Agreement is given to the City; and WHEREAS, the prerequisites forrenewal of the agreement have been met, and the City Manager has prepared a new Maintenance and Operating Agreement similar in form to the current agreement, which new agreement shall be for a term less than five (5) years; and WHEREAS, pursuant to Seward City Code Section 6.10.130, it is determined that the public interest would be best served by not requiring competitive proposals from potential operators of the Shiplift Facility because the current operator has satisfactorily performed under the current agreement, uninterrupted service will benefit the public users and the current operator, there are economies in maintenance and operation that are achieved through an operator with an adjacent business location, and there is a benefit in retaining the current operator's expertise and experience in maintaining and operating the City's Shiplift Facility; and WHEREAS, Seward Ship's Drydock, Inc. agrees to continue the Shiplift Facility maintenance requirements under the Maintenance and Operating Agreement which has limited the City's out-of-pocket expenses relating to the Shiplift Facility; and AMM00516143371001 CITY OF SEWARD, ALASKA RESOLUTION 2000-009 WHEREAS, the Maintenance and Operating Agreement retains City ownership of the Shiplift Facility and provides for the continued operation of the Shiplift Facility as a public facility and at reasonable cost to the City and Shiplift Facility users; and WHEREAS, special expertise, experience, and training is required for the proper maintenance and safe operation of the Shiplift Facility, and it is in the public interest to utilize the experience and expertise of Seward Ship's Drydock, Inc. to provide efficient and safe shiplift services in SMIC; and WHEREAS, the Shiplift Facility is important for business development in SMIC and economic growth in the City; and WHEREAS, the City will have an opportunity to re-evaluate the operator's performance prior to any subsequent agreements, if any; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. For the reasons set forth in the recitals of this Resolution, which recitals are hereby incorporated by reference as written findings of the City Council, it is determined that, pursuant to Seward City Code Section 6.1 0.130, the public interest would best be served by not requiring competitive proposals prior to approving the Maintenance and Operating Agreement described herein. Seward Ship's Drydock, Inc. has demonstrated its ability to maintain and operate the Shiplift Facility, and it is unlikely that the City would be able to further reduce its expenses related to the maintenance and operation of the Shiplift Facility through the solicitation of proposals. Section 2. The Maintenance and Operating Agreement attached hereto and incorporated by reference as Exhibit A is hereby approved subject to (1) the City and Seward Ship's Drydock, Inc. entering into an effective Lease amendment providing for continued Lease rental credits for deferred maintenance and cable replacement of the Shiplift Facility for the approximate term of the Maintenance and Operating Agreement, and (2) Seward Ship's Drydock, Inc. providing the City a corporate Resolution approving the agreement. The City Manager is authorized to sign this agreement in substantial form as attached hereto on behalf of the City of Seward and may make such changes as necessary to finalize the document for signing. Section 3. The current Maintenance and Operating Agreement is hereby extended according to its existing terms until the lease amendment and the new Maintenance and Operating Agreement become effective on March 31, 2000, whichever occurs first. AMMOO51614337.1001 I I I CITY OF SEWARD, ALASKA RESOLUTION 2000-009 Section 4. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th day of February, 2000. THE CITY OF SEWARD, ALASKA 'CL I (~A--'C ~ ~ Edgar Blatchford, Mayor AYES: NOES: ABSENT: ABSTAIN: Blatchford, Brossow, Calhoon, King, Shafer None Clark, Orr None ATTEST: Patrick Reilly City Clerk \\\"IU"..., (~~~f..~~W~"3f~.~ $' 8:,"C?-POIi.4).;,~() f.;. .: ....v ~.A.. ~ :: :::; ....- "" .. ': - : ~ .. : .: SEAL :.: : \ : = ~ ~ -.- : = ..... ,.,. lilt ~ ,1\ '.:'Gt... ..9.........". ~ .., \I~ '..0'1: 1 .' ~~.!IO .,., ~J";;:..".'..: h,.V ~..l4 ~'II I,: OF ,..v~"... I',t....."" AMM00516/43371001