HomeMy WebLinkAboutRes2008-015Jpousored by: Dares
CITY OF BENARD, ALASK4
ItESULU'PIDN 1008-0t5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SF.WARD,
ALASK4, AUTHORIZING THE CITY M1TANAGER TO ENTER INTO A
MEM0RINDUM OF UNDERSTANDING WITR TIIC STATC OPALASK4
FORPL.INNING, FIN.INCING, DESIGN,:IND CONSTRUCTION OF EHE
SPRINGCRECKCORRECTIONAL CENTEREXI'AN91ON PROJECT,.4ND
APPROPRIATING SIOQ000 TO BE REIMBURSED FRUM FLI'FURE BUND
PROCEEDS
WHEREAS, C1~ 160, SLA 2004 (dre "Act") passed by the Smre Leglslmure aurhorizedthe
8tata of Alavka to antra inro a john Owrersh[p agreement vnd a lenxe-purehvse agreement with the
City ol'SemuN Ibrthc upensi0n of SprinS Creek Correetonnl Center.("SCCC') by up ro 144 beds;
and
WHEREAS, the ACt wnditlans the Smte's authnrirym enter inm such agreernems bused on
rhe mremge pao-bed capital owls np[exeecding 9135,000, vs adjusted for inFlation, and mmual lease
payments not exceedig 914,600 per bed, and that the Scare ahvll ovm rhe SCCC at Poe and ol'thc
leaae Term: and
WHEREAS, Os. Gry and the SYnte desire m enter imonMememndum oNvdenw,ding for
the puryoec Ofpnrsning pmjectplanning and design, wilh the State asawnin5 the oasts of planning
and design and the Srvre Depanmen[ ofTtansportation and Public Fecilirice scrvlog es tbepmjecr
manager and mnhmting xthodry for the expartsion pmjwe, end
NHEREAS, rhe Memorandum Of Ondem'Iwdingmyuires tltat the CiryofSeward, ns owner
of the current fieiliry and site, aaepUesponsibillty f r vvrsning revarvebond financing supporced
Fy Pomrelease payments by the S Wlq whirl, is thesame Bneneing mechanism utilized ro wnstmcl
the initialSWClhcility, and
WHEREAB, dre City wrd Bte S'rzreintend that at the end of tfie term of repayment of the
hontls, the Swre wll I became the owner of Spring Creek Correctional Exility; and
WHEREAS, dre 8teteenriaipares beingable to Pond planningand desi¢n eHons withoutCiry
aiauncG bur in dre cvmr5tarc fiords ate not made xvvilnble to the project ondl after ]uly t, the
Cirydeshes to appropnae an amount norm exceed S 100,000 to expeditathepmject,withsaid fwds
m he reimhursed by Poturebond proceedsand/or appropdetions from the State; and
WHEREAS, in the event it becomes noocssery for We Gty ro expend i® own funde ro
expediW doigtS d¢ airy maneg¢ la euNOrized m amm~d the ManOr'andmn of Undn'etanding b
mgnim mpeymenr ofCity fiords fi~om fomre bond pmweds end/orapPmPriations Boor the State.
CITY OF SFWARD, ALASIG\
RCSOLUTiOV 2005-U15
NOW, TIIEREGORE, HN; 1'I' NESOLVEU BY T1IC CITY COOrvC1L OF THE CITY
OF SF W AKD, ALASKA, IhaC.
Seecion 1.'Lhc C[ly Manager is aurhonzcd to anar into a Memorandum ofUndcrstending
with the State of Aleake in aubstannady the foml as attached huem, for Ne pnrpoec of design,
linnnciug, and m~mmtion of Ne expansion of 5prinG Creek CortecNonal C'cutca
SeeEon z Fundin6 N omamountof,R 100,000 is hueby appropiintud fmm Inc General Fund
Emd balanoa account no. ~ O1-0000-3090-0103 m the Capital Acquisifion Ennd acwim[ vo. 103-
1030.5')1U lbrlhe puryose of Inhisl plnvning end desi~, wIW xyd expenditures aontingent an Ne
city mane6G' euthodzing nn anevdmun m Ne Memomndwn of UnderataudinS which ensures
repayment ro tlm Cip~ from hood pcomvls and/or furv.e Stain appro-riutlonc
Seofiao 3. Thu resolufinn shall take effect Bnmedie¢ly upon adoption.
PASSEll AVIV APPROV HD by theCty Councitofthcchyo(Setmad, Alnska, Nis 25°i day
of February, 200b.
TDE CiTV OF SEWARD, ALASKA
Clark urbridge, MSVOr
~~~
AYES Valdann, Hmdarsoq Amberg, Smith, KcllaS Corbndge
Np&9'. None
nN5NM11. DuMam
nASTALN None
A'I"I N:S C:
Johanna Uollcrhn e, CMC
Assisc~m Cty Glnrk
(city Seep
COUNCIL AGENDA STATEMENT
Mce[ing Uvk: Febsvary 35, 2008
From: PM1illip Oates, Cisy Maslagu
HE: Memorandw+ofUndttswndiny [pr Prison Expansion
HACKGROUNO & JUS9'IFICATTON:
TM1e Seward Gry Coam:il ayprovM Rcaphnipn 3001-98 on NovemMr 12, 200], vu[M1Oriang w Inkm Ip Issu<
Bonds Car the purpose v[ expwdiug tM1U Sprang Creek Cpneatlovel Caner CSCr:C'). This action of IM1C Gry
L'ouncil reprcsmsed the Ciry'a initial commitment k the prispv eapenaion project. 'ibis pryect wvs eulhorixd
by G. 160, SLA 2004, which approved expansion of 9000 by up m l44 beds, pcovidN 1Mt tlnre oondiliws
met q capiml casts of the profeu may not exvecJ $135,000 per buJ, as adjuskd Cur infladoo; 2J awuel
lease paymma fr Mepryep[ may not uxzed $14,6W per bed; avd l) [hn Stele sMll own the SCCC et the end
prthc leeu term.
TM1e next step in IM1Ie process ivwlves prymt pNnning and design. 'I M1e City of SewaN and the SNte o[Aleaka
untering into a Mumorandum pf Undarstmding pM1c "MOU'T, with sM1c Sgse cpmniaing Ip pay the inidal
costa of plawing and design of the project, and fie Ciry commining k pursue revenue bonds m fwd the
projvt. Th< reveouc bonds will be scuued by tM1e 91ntc's aN+ual lease pnymrnts, wd do nut repreuut a
gencml obligation plNge ofshe Ciry.
TM1e administration is regawting w appropriation of $100,000 [o assist she 9Wte with initial plowing and
design, wfdt said funds to be epmt only if the State is amble to seowe Pondin6 Prior to Suly 1 ([M1C eNrl of the
Slate's new fiuel year), and N be repaiJ dwugh famre buM proceeds vnd/or Stale appropriations. There is
ml a strong likelihood Iha[ Clry lands will be needed, bw prior [p spmdin6 wY Ciry fwds tM1e city manager
would initiate en amrndmrn[ N Ne MOU Ip ucure a guerwlee pfrepaymens by the State.
CONSISTENCY CHFCK~ Where apptieablc, this agmdn stattpnent in wnsinent with the Sawwd Clty
Coda Chartor, Compreher+sive Plans, Lnnd Use Plane, 9Metegic Plan and City Counul Roles of
ProcMures. ONer:
FI9CAL NOTE: ~if.~,JJGU-Q[t,^~
TM1e appropriation a[ $IOO,000 is rapt irrclud~cd iv the 2008 Gadget and is tM1orufore appropriated Irvm she
(hvwal Pwd fiand balance account. In the event funds am out sprnt, this eppmPrutipn wiLL revert bwk to tM1e
General Fwd Pond balance account, avd if axpevdimres are inpuned, tM1ey will be reimbursed w the Ciry
through furore revenue bonds and/or SIaIG appropnannns.
RECOMMENOATION~
City Council approve the Memorandum of Understanding between the City of Seward wd the Smte of
Alaska far the Spring Creek Corrccsional Center expansion pmjmq arsd apPrvpdate funds.
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