HomeMy WebLinkAboutRes2006-052
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Sponsored by: Corbridge
CITY OF SEWARD, ALASKA
RESOLUTION 2006-52
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO
ENTER INTO AN AGREEMENT TO EXTEND THE TERM OF
THE MAINTENANCE AND OPERATING AGREEMENT WITH
SEWARD SHIP'S DRYDOCK, INC. FOR THE SHIPLIFT
FACILITY
WHEREAS, Seward Ship's Drydock, Inc. ("Operator") and the City entered into
a Lease Agreement dated April 1995, as amended ("Lease"), to operate a vessel repair
and construction facility for a term ending June 30, 2009 unless sooner terminated or
extended as provided in the Lease; and
WHEREAS, the Section 7.06 of the Lease allows the Operator to renew the
Agreement (defined below) if the Operator gives the City written notice of the exercise of
its option to renew no later than 180 days before termination of the Agreement, if the
Lease term has not expired, and if the Operator is note in default under the Lease at the
time the option is exercised; and
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WHEREAS, on June 3, 2004 the City received a written notice of the Operator's
intent to exercise its option to renew the Agreement; and
WHEREAS, the City and the Operator entered into a Maintenance and Operating
Agreement effective March 30, 2000, as amended October 26, 2001 (the "Agreement");
and
WHEREAS, the Operator has been maintaining and operating the City's shiplift
facility since 1995, consisting generally of a Syncrolift Shiplift System, Ship Transfer
System and certain related rail systems (the "Shiplift Facility"); and
WHEREAS, the Agreement, by its terms, expired December 31, 2004; and
WHEREAS, at this time there are no pending enforcement actions by either DEC
or EP A; and
WHEREAS, extending the term of the Maintenance and Operating Agreement is
in the best interests of the community.
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CITY OF SEWARD
RESOLUTION 2006-52
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA that:
Section 1. The City Manager is authorized to enter into an agreement with
Seward Ship's Drydock, Inc. in substantially the same form as presented at this meeting
to extend the term of the Maintenance and Operating Agreement for a term effective
January I, 2006 through the earlier of (i) the date of expiration or termination of the
Lease term, or (ii) June 30, 2009.
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 8th
day of May 2006.
THE CITY OF SEWARD, ALASKA
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Vanta Shafer, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Dunham, Lorenz, Thomas, Schafer, Bardarson, Shafer
VaIdatta
None
None
ATTEST:
ohanna Dollerhide
Acting City Clerk
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COUNCIL AGENDA STATEMENT
Meeting Date: May 8, 2006
From: Clark Corbridge, City Manager
Agenda Item: Extension of the Term of the Maintenance and Operating
Agreement with Seward Ship's Drydock, Inc.
BACKGROUND & JUSTIFICATION:
Seward Ship's Drydock, Inc. (the "Operator") has operated the City's shiplift facilities since 1995.
The current agreement, dated March 30, 2000, as amended October 26, 2001 (the "Operating
Agreement"), expired December 31, 2004 and was extended by council approval four times for
additional three-month periods, ending December 2005. Each temporary extension was intended to
allow the Operator to bring the facilities within environmental compliance. An extension to be
effective for the period January 1, 2006 through June 30, 2009 (consistent with the terms of the
adjacent lease) is presented for council approval.
The lease and the operating agreement require the Operator to be in compliance with all laws,
including environmental laws. In response to complaints related to fugitive dust control, disposal of
industrial waste, and discharges into Resurrection Bay, the Alaska Department of Environmental
Conservation (“DEC”) and the federal Environmental Protection Agency (“EPA”) have been
communicating with the Operator for more than a year. DEC and EPA have not determined whether
the Operator is in compliance with certain environmental laws, but no enforcement actions are
currently underway. Trustees for Alaska recently notified the Operator of its intent to sue under the
federal Clean Water Act.
1. Comprehensive Plan X
2. Strategic Plan X_
3. Other: X
FISCAL NOTE:
No fiscal note.
Approved by Finance Department
RECOMMENDATION:
Council approve Resolution 2006-___ authorizing the CityManager to enter sign an extension of the
term of the Maintenance and Operating Agreement with Seward Ship's Drydock, Inc. for the shiplift
facility, in substantially the form presented.