HomeMy WebLinkAboutRes2006-060
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Sponsored by: Corbridge
CITY OF SEWARD, ALASKA
RESOLUTION 2006-60
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING PAYMENT TO THE ALASKA RAILROAD IN
THE AMOUNT OF $11,633 AS LEASE FOR A PORTION OF THE
TRANSMISSION LINE FROM ARRC MILE POST 23 TO 23.75
WHEREAS, a portion of the City of Seward's Transmission line (3,950 lineal feet) is
located inside the Alaska Railroad Transportation Corridor (ARRC), which subjects the line to lease
payments to the ARRC; and
WHEREAS, the lease rate was increased by $.50 per foot effective July 8, 2005, due to an
increase in appraised value; and
WHEREAS, the City has no other options available at this time for the location for this
portion of the transmission line; and
WHEREAS, Seward City Code requires Council approval for this payment as the cost
exceeds $10,000.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA, that:
Section 1. The City Manager is hereby authorized to pay the annual ARRC lease for 2006 in
an amount not-to-exceed $11,633.00.
Section 2. Funding is available in the Electric Enterprise Fund account no. 501-5400-5360.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska, this 22nd
day of May, 2006.
CITY OF SEWARD, ALASKA
RESOLUTION 2006-60
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AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
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THE CITY OF SEWARD, ALASKA
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Vanta Shafer, Ma r
Dunham, Valdatta, Lorenz, Thomas, Schafer, Bardarson, Shafer
None
None
None
(City Seal)
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Council Agenda Statement
Meeting Date: May 22, 2006
Through: Clark Corbridge, City Manager
From: Tim Barnum, Electric Utility Manager
Agenda Item: Authorize the City Manager to pay the
Annual Rail Road Lease for a Portion of the
Transmission Line ARRC Mile Post 23 to 23.75
BACKGROUND & JUSTIFICATION:
A portion of the City’s transmission line is built on Rail Road property. The agreement
with the Rail Road was that we would pay a yearly lease rate, based on 3,950 lineal feet.
The lease rate increased by $.50 per foot in 2006 to $25.25, up from $24.75 in 2005. As
per Seward City Code, any invoice exceeding $10,000.00 requires Council approval.
This lease payment will be an annual expense for as long as the transmission line remains
on Rail Road property. The City does not currently have any option other than to pay the
lease rate.
CONSISTENCY CHECKLIST
:
Where applicable, this agenda statement is consistent with the Seward City Code,
Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of
Procedures.
Other:__________________________________________________________________
FISCAL NOTE:
Approved by Finance Department:
RECOMMENDATION:
City Council approve Resolution 2006- authorizing the City Manager to pay the annual
rail road lease for a portion of the transmission line, ARRC mile post 23 to 23.75, for an
amount not-to-exceed $11,633.00.