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Sponsored by: Oates <br />,,,,~„ CITY OF SEWARD, ALASKA <br />RESOLUTION 2009-076 <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br />ALASKA, AUTHORIZING A NO-FAULT SETTLEMENT WITH SEWARD <br />SHIPS DRYDOCK IN THE AMOUNT OF $7,584.78 RELATING TO AN <br />ELECTRIC POWER CLAIM, AND APPROPRIATING FUNDS <br />WHEREAS, the city experienced a series of electrical brownouts over a period of weeks <br />during the Fall of 2008, causing discontinuity in electrical service to the SMIC service area, and <br />adversely impacting Seward Ships Drydock; and <br />WHEREAS, Seward City Code 14.15.610 (a) Interruption of Service states that "The city <br />will exercise reasonable care to provide adequate and continuous electric service. However, the city <br />assumes no liability for injury, loss or damage resulting from system failure... unless such ...damage <br />results from the sole negligence of the city;" and <br />WHEREAS, the City received a claim for damages from Seward Ships Drydock and as a <br />result, the Seward City Council met in executive session on December 8, 2008 and authorized the <br />city manager to negotiate a settlement with Seward Ships Drydock, provided the settlement met <br />specific terms; and <br />WHEREAS, the City sent a letter to Seward Ships Drydock dated November ] 8, 2008, <br />establishing the terms of the settlement, which Seward Ships has agreed to, including: 1) agreement <br />that said settlement represents a `no-fault settlement'; 2) providing evidence from their insurance <br />company that the claim is not covered by insurance coverage in order to prevent a double recovery; <br />3) and agreeing that this settlement does not establish an expectation for future claims or establish a <br />precedent; and <br />WHEREAS, this settlement reflects a matter of good will and courtesy by the City in order <br />to help this business offset costs incurred as a result of a particularly unusual circumstance involving <br />a prolonged series of outages, a complex power problem, and limited availability of engineers and <br />technicians to resolve the problem. <br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY <br />OF SEWARD, ALASKA that: <br />Section 1. The city manager is hereby authorized to pay Seward Ships Drydock the amount <br />of $7,584.78 as settlement for costs incurred by Seward Ships. <br />Section 2. The Seward City Council hereby intends that this settlement agreement reflects no <br />fault of the City, and is solely offered as a matter of good will and courtesy, and is not intended to set <br />,,,~ a precedent or establish an expectation of future claims. <br />