Loading...
HomeMy WebLinkAboutRes2018-088 Sponsored by: Bridges CITY OF SEWARD,ALASKA RESOLUTION 2018-088 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,APPROVING A GRANT AGREEMENT BETWEEN THE CITY OF SEWARD AND THE ALASKA DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION OF COMMUNITY AND REGIONAL AFFAIRS FOR A DESIGNATED LEGISLATIVE GRANT IN THE AMOUNT OF$1,073,441.46 FOR HAZARDOUS MATERIAL REMOVAL,SITE REMEDIATION,AND CONSTRUCTION OF A MEMORIAL AT THE SITE OF THE JESSE LEE HOME WHEREAS, the City of Seward and the Friends of the Jesse Lee Home entered into a Purchase and Sale Agreement, for the property identified as Lots 15A and 15B, Jesse Lee Home Heights Subdivision Addition No.4 according to Plat 89-18 also known as the Jesse Lee Home, as authorized by City of Seward Resolution No. 2014-059; and WHEREAS, within that purchase and sale agreement there are certain improvements required during a"due diligence"period which expires August 29,2019. Those improvements are: a. Hazmat abatement(estimated at $216,000) b. Extension of 50% of the water utilities: 270+/- feet 8"main @ 200 per foot and 2 hydrants(estimate at&74,000 X .5 = $37,000) c. Extension of 50%of the sewer utilities: 220+/- feet 6"main @$150 per foot, 100 +/-feet 4"main @ 125 per foot, 3SSMHs @$10,000 each(estimated at$75,000 X .5 =$37,750) and; WHEREAS, in the event these improvements are not completed by August 29, 2019,the property reverts back to City ownership; and WHEREAS, the City has been awarded a Department of Commerce, Community, and Economic Development Grant in the amount of$1,073,441.46 to mitigate the Jesse Lee Home structure,to remove,dispose,and abate environmental hazards remaining on the property,including asbestos,underground fuel and/or other tanks,buildings,fencing and structures,and to respectfully remove salvageable wood and/or property features to build a memorial to the residents and staff of the facility; and WHEREAS, it is in the City's intent to conduct such hazardous material removal, site remediation,and memorial construction in the event the ownership of the property reverts back to the City. CITY OF SEWARD, ALASKA RESOLUTION 2018-088 NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1.The City of Seward finds it advisable to have resources available in the event the Jesse Lee Home reverts back to City ownership. Section 2. The City of Seward hereby authorizes the City Manager to accept the Department of Commerce,Community,and Economic Development Grant in the amount of$1,073,441.46,and to execute all documents related to the grant on behalf of the City. Section 3. This resolution shall take effect thirty(30) days after approval. PASSED AND APPROVED by the City Council of the City of Seward,Alaska this 26th day of November, 2018. THE CITY OF SEWARD, ALASKA David Squires, May AYES: Squires, McClure, Towsley, Horn, Seese, Osenga, Lane NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou, MMC City Clerk II c +; ^ 9 C + Y c /e t- k (City Seal) �.�A�0F SE /' a T. • SEAQ, a • • 14<If* ti . ,•44rF OF � � 4. Agenda Statement Meeting Date: November 26, 2018 To: Mayor Squires and Seward City Council Members E From: Jeff Bridges, Interim City Manag Agenda Item: Resolution 2018-088: A Resol the City of Seward, Alaska Approving a Grant Agreement Between the City of Seward and the Alaska Department of Commerce, Community, and Regional Affairs for a Designated Legislative Grant in the Amount of $1,073,441.36 for Hazardous Material Removal, Site Remediation, and Construction of a Memorial at the Site of the Jesse Lee Home. BACKGROUND & JUSTIFICATION: City of Seward Resolution 2014-059 (attached) provided for the approval of a Purchase and Sale Agreement with the Friends of the Jesse Lee Home(FJLH). FJLH intended purpose of the purchase was to renovate and restore the building for use as an educational and residential/boarding school. Within that purchase and sale agreement there were certain due diligence provisions which must be accomplished by August 29, 2019 or the ownership of the property reverts back to the City. Those due diligence provisions included hazardous material removal and water and sewer utility extensions. This grant would provide for hazardous material removal, site remediation, and the construction of a memorial to the residents and employees of the Jesse Lee Home in the event the property reverts back to City ownership as provided for in the purchase and sale agreement. INTENT: The intent of this Resolution is accept the grant. 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 or Other Plans or Policies: Yes (List Below) This Resolution is consistent with City of Seward Resolution 2014-059. (Also included in the packet for background purposes of City of Seward Resolutions 2008-034 and 2005-01.) FISCAL NOTE: There is no fiscal note related to the acceptance of this grant. No matching funds are required. Approved by Finance Department: i,�73, pu ATTORNEY REVIEW: Yes X No RECOMMENDATION: Authorize the City Manager to accept the Department of Commerce, Community, and Economic Development Grant in the amount of$1,073,441.46,and to execute all documents related to the grant on behalf of the City. ti OF rye THE STATE.ASKA °fAL DepartineW of Commerce, CoI1111111 1ity and Economic Development GovFRNOR BILL WALKER DIVISION Of COMMUNITY AND RLGIONAL AF AIRS p� A LA,5 P.O. Box 1 M809 Juneau, AK 9981 1-0809 Moir:907.907.46.5.4731 Programs fox:907.465.4761 October 2, 2018 City of Seward, Kristin Erchinger, Finance Director PO Box 167 Seward, AK 99664-0167 RE: FY 2019 Designated Legislative Grant Agreement Dear Ms. Erchinger: Enclosed you will Find a grant agreement between the City of Seward and Department of Commerce, Community, and Economic Development for use towards the Hazardous material removal and site remediation at the Jesse Lee Home for the fiscal years ending June 30, 2019, June 30, 2020, and June 30, 2021. In order to receive grant funds, a grant agreement must be executed. Carefully review the agreement, sign, date, and return to the address above. Upon receipt and approval, a fully executed copy will be sent to you for your file. If you have any questions regarding your grant agreement contact me via phone at (907)465-4731 or email robui.park@alaska.gov. Sincerely, Robin Park, Grants administrator 11 Enclosure l� OF rrt� 5j DEPARTMENT OF COMMERCE,COMMUNITY,AND ECONOMIC DEVELOPMENT DIVISION OF COMMUNITY AND REGIONAL AFFAIRS mow. Designated Legislative Grant Program Grant .Agreement Grant Agreement Number TOS84266 endor Number Amount of State Funds 19-RR-004 $1,073,441.46 GAIN. Appropriation Unit Lapse Date Project Title Hazardous material removal and site remediation at 087821004 06/30/2021 the Jesse Lee Home for the fiscal years ending June 30, 2019,June 30, 2020,and June 30,2021 Grantee Department Contact Person Name Name City of Seward Robin Park Street/PO Box Title PO Box 167 Grants Administrator II Cin-/Stare/Zip Street/PO Box Seward,Alaska 99664-0167 PO Box 110809 Contact Person. Cite/State/Zip Kristin Erchin er, Finance Director Juneau,Alaska 99811-0809 Phone Fax Phone Fax 907-224-4064 907-224-4038 907-465-4731 907-465-4761 Email Email kerchin er@ci •ofseward.net robil-i.park@alaska.gov AGREEMENT The Alaska Department of Commerce, Community, and Economic Development, Division of Community and Regional Affairs (hereinafter `Department') and Cit,I:of Seward (hereinafter`Grantee') agree as set forth herein. Section I.The Department shall pay the Grantee for the performance of the project work under the terms outlined in this Agreement. The amount of the payment is based upon project expenses incurred, which are authorized under this Agreement. In no event shall the payment exceed$11,07.3,441.46. Section H. The Grantee shall perform all of the work required by this .Agreement. Section III. The work to be performed tinder this Agreement begins Tune 30, 2018 and shall be completed no later than June 30 2021. Section IV. The Agreement consists of this page and the following: ATTACHMENTS AMENDMENTS Attachment A: Scope of Work Any fully executed amendments to this Agreement 1. Project Description 2. Project Budget APPENDIX 3. Project Management Appendix A: State Laws and Regulations 4. Reporting Attachment B: Payment Method Attachment C: Standard Provisions Grantee Department Signature Signature Printed Name and Title Printed Name and Title Feffrer Bridges,Interim Ci y Manager Pauletta Bourne, Grants administrator III Date Date licci:u-ed bv: Rev.612018 Designated Legislative Grapat Agreeme i Page l of 13 Attachment A Scope of Work 1. Project Description The purpose of this FY2019 Designated Legislative Grant in the amount of $1,073,441.46 jp rulant to the pivi,isioas of 37.03.31 5 AS Slatule, Giants to tl unicipalilies SL./1 2018, 5B 142, Chapter 19, Seclion 32, Paue 41, and Line 131 is to provide funding to City of Seward for use towards Hazardous inaterial removal and site remediation at the Jesse Lee Home for the fiscal years ending June 30, 2019, June 30, 2020, and June 30, 2021. The objective of this project is to nvtigate the Jesse Lee Home structure which poses a significant attractive nuisance and a health hazard to the residential neighborhood. These funds will be used to remove, dispose and abate environmental hazards remaining on the property, including asbestos, underground fuel and/or other tanks, buildings, fencing and structures,and to respectfully remove salvageable wood and/or property features to build a memorial to the residents and staff of the facility. This project tnay include the following items: • Hazard abatement • Environmental hazardous waste disposal • Labor costs • Materials/supplies • I'ermits • Memorial construction Additional expenditures must be reasonable and relative to the project objective and may require pre approval. by the department. No more than five percent (5%) of the total grant award may be reimbursed for Administrative expenses for projects involving equipment purchase or repairs and no more than ten percent (10%) of the total grant award may be reimbursed for Administrative expenses for all other projects. To be reimbursed for eligible administrative costs, expenses must be reported on the Designated Legislative Grant Financial/Progress Report form. 2. Project Budget Cost Category Total Project Costs Project Funds $1,073,441.46 Administration $0.00 Total Grant Funds $1,073,441.46 3. Project Management This project will be managed by the Grantee. Signatory authority for execution of the Grant Agreement and subsequent amendments is granted to the chief administrator. For grants appropriated to a municipality, the mayor is the chief administrator unless the municipality operates a managerial form of government; then the city manager/administrator acts as the chief administrator. For named recipients and unincorporated communities,the executive director or highest ranking official will act as chief administrator. Rev. 612018 Designated Legislative Grant Agreement Page 2 of 13 The chief administrator may delegate authority for executing the Grant Agreement and amendments to others within the Grantee's organization via the Signatory Authority Form. The chief administrator also designates fuiancial and performance progress reporting authority- vla the Signatory Authority Form. Such delegation is limited to others x-6thin the Grantee's organization unless otherwise approved by the Department. The Grantee must establish and maintain separate accounting for the use of this Grant. The use of Grant funds in any manner contrary to the terms and conditions of this Grant Agreement may result in the subsequent revocation of the Grant and any balance of funds under the Grant. It may also result in the Grantee being required to return such amounts to the State. If applicable under state law, grantees must be registered and in good standing with the Department of Conitnerce, Community and Economic Developirient's Division of Corporations, Business and Professional Licensing. 4. Reporting The Grantee shall submit a Designated Legislative Grant Financial/Progress Report Form provided by the Department each month, or quarterly, with the concurrence of the Department, during the life of the Grant Agreement. Grant Financial/Progress Report Forms are due thirty, (30) days after the end of the month or quarter being reported.The report period is the first of the month through the last day of the month. If quarterly reporting is approved,the report period is the first day of the first month through the last day of the third month of the quarter. The final Financial/Progress Reports must be submitted within thirty (30) days following completion of the project. Rev.61201,3 Designated Legislative Grant Agreement Page 3 of 13 Attachment B Payment Method 1. Reimbursement Payment Upon receiving and approving a Grantee's Financial/Progress Report, the Department will reimburse the Grantee for expenditures paid during the reporting period, in accordance with this Grant Agreement. The Department will not reimburse without approved Financial/Progress Reports, prepared and subnutted by the Grantee on the form provided by the Department. Before approving the financial/progress report for payment,the Department may require the Grantee to submit documentation of the costs reported (e.g.,copies of vendor billings/invoices and proof of payment, general ledger expenditure report). 2. Advance Payment In most instances, the Department will make payment to a Grantee on a cost reimbursable basis. If cost reimbursement significantly iinhibits the Grantee's ability to implement the project, the Department may advance to the Grantee an amount not to exceed a projected thirt�� (30) day cash need, or twenty percent (20%) of the amount *in Section 1, whichever is less. Before the Department will issue an advance, the Grantee must submit a "Request for Advance Payment" form along with documentation of costs associated with the advance. The "Request for Advance Payment" form can be obtained from the Department electronically or in hard copy. All advances will be recovered with the Grantee's next Financial/Progress Report form. Should earned payments during the terms of this Grant Agreement be insufficient to recover the full amount of the advance, the Grantee will repay the unrecovered amount to the Department when requested to do so by the Department, or at termination of the Grant Agreement. 3. Withholding of Ten Percent (10%) The Deparunent may withhold ten percent (10%) of the amount in Section I until the Department determiines that the Grantee has satisfactorily completed the terns of this Grant Agreement, including all required reporting of the project. Rev. 612018 Designated Legislative Grant Agreement Page 4 of 13 Attachment C Standard Provisions Article 1. Definition "Department" refers to the Department of Commerce, Community, and Economic Development with the State of Alaska. Article 2. Indemnification It is understood and agreed that this Grant Agreement is solely for the benefit of the parties to the Grant Agreement and gives no right to any other party. No joint venture or partnership is formed as a result of the Grant Agreement. The Grantee, its successors and assigns, will protect, save, and hold harmless the Department and the State of Alaska and their authorized agents and employees, from all claims, actions, costs, damages, or expenses of an)' mature whatsoever by reason of the acts or omissions of the Grantee, its subcontractors, assigns, agents, contractors,licenses,invitees,employees,or any person whomever arising out of or in connection with any acts or activities authorized by this Grant Agreement, The Grantee further agrees to defend the Department and the State of Alaska and their authorized agents and employees in any litigation, including payment of any costs or attorney's fees for any claims or actions commenced thereon arising out of or in connection with acts or activities authorized by thus Grant.Agreement. This obligation shall not include such claims, costs, damages, or expenses which may be caused by the sole negligence of the Department of the State of Alaska or their authorized agents or employees, provided, that if the claims or damages are caused by or result from the concurrent negligence of(a) the Department and the State of Alaska and their agents or employees, and (b) the Grantee, its agents or employees, this indemnity provision shall be valid and enforceable only to the extent of the negligence of the Grantee, or Grantee's agents or employees. Article 3. Legal Authority The Grantee certifies that it possesses legal authority to accept grant funds under the State of Alaska and to execute the project described in this Grant Agreement by signing the Grant Agreement document. The Grantee's relation to the Department and the State ofAlaska shall be at all times as an independent Grantee. Article 4. Waivers No conditions or provisions of this Grant Agreement can be waived unless approved by the Department in writing. The Department's failure to insist upon strict performance of any provision of the Grant Agreement, or to exercise any right based upon a breach thereof,or the acceptance of any performance during such a breach, shall not constitute a waiver of any right under this Grant Agreement.. Article 5. Access to Records The Department and duly authorized officials of the State of Alaska shall have full access and the right to examine, excerpt, or transcribe any pertinent documents, papers, records, and books of the Grantee, and of persons or organizations with which the Grantee may contract,involving transactions related to the project and this Grant Agreement. Article G. Reports The Grantee, at such times and in such forms as the Department may require, shall furnish the Department with such periodic reports as it may request pertaining to the activities undertaken pursuant to this Grant Agreement,including the final close-out report, the costs and obligations incurred in connection therewith, and any other matters covered by this Grant Agreement. Rev. 612018 Designated Legislative Grant Agreement Page 5 of 13 Article 7. Retention of Records The Grantee shall retain financial and other records relating to the performance of this Grant Agreement for a period of sill years from the date when the final financial status report is subinnitted to the Department, or until final resolution of any audit findings, claims, or litigation related to the grant. Article 8. Assignability The Grantee shall not assign any interest in this Grant Agreement and shall not transfer any interest in the same (Evhether by assignment or novation). Article 9. Financial Management and Accounting The Grantee shall establish and maintain a financial management and accounting system that conforms to generally accepted accounting principles. Article 10. Program Income Program income earned during the award period shall be retained by the Grantee and added to the funds committed to the award and used for the purpose and tinder the conditions applicable to the use of award funds. Article 11. Amendments and Modifications The Grantee or the Department may request an amendment or modification of this Grant Agreement. However, such amendment or modification shall not take effect until approved, in writing, by the Department and the Grantee. Article 12. Recordkeeping The Grantee agrees to keep such records as the Department may require. Such records will include information pertaining to grant awards and authorizations, obligations, unobhgated balances, assets, liabilities, outlays and income. They will also include information pertaining to project performance and efforts to comply with the provisions of the Grant Agreement. Article 13. Obligations Regarding Third-Party Relationships None of the Work specified in this Grant Agreement shall be contracted by the Grantee without prior approval of the Department. No permission for subcontracting shall create, between the Department or the State of Alaska and the subcontractor, any contract or any relationship. The Grantee shall remain fully obligated under the provisions of this Grant Agreement notwithstanding its designation of any third party or parties of the undertaking of all or any part of the project described herein. Any subcontractor that is not the Grantee shall be required by the Grantee to comply with all the provisions of this Grant Agreement. The Grantee shall biid all subcontractors to each and every- applicable Grant Agreement provision, Each subcontract for work to be performed with funds granted under this Grant Agreement shall specifically include a provision that the Department and the State of Alaska are not liable for damages or claims from damages arising from any subcontractor's performance or activities under the terms of the subcontracts. Rev.6120'18 Designaled Gegisfalive Grant A.-reement Page 6 of 13 Article 14. Conflict of Interest No officer or employee of the Department; no member, officer, or employee of the Grantee or its designees or agents; no member of the governing body of the jurisdiction in which the project is undertaken or located; and no other official of such locality or localities who exercises any functions or responsibilities with respect to the project during his or her tenure, shall have any personal or pecuniary gain or interest, direct or indirect, in and contract,subcontract,or the proceeds thereof, for work to be performed in connection with the project assisted under this Grant Agreement. The Grantee shall incorporate, or cause to incorporate, in all such contracts or subcontracts, a provision prohibiting such interest pursuant to the purpose of this provision. Article 15. Political Activity No portion of tide funds provided hereinunder shall be used for any partisan political activity or to further the election or defeat of any candidate for public office or influence the approval or defeat of any ballot issue. Article 16. Notices The Grantee shall comply with all public notices or notices to individuals required by applicable state and federal laws and shall maintain a record of this compliance. Article 17. Prohibition Against Payment of Bonus or Commission The assistance provided under this Grant Agreement shall not be used in payment of any bonus or comnussion for the purpose of obtaining approval or concurrence under this contract provided, however, that reasonable fees of bona fide technical consultant, managerial, or other such services, other than actual solicitation, are not hereby prohibited if otheiwise eligible as project costs. Article 18. Termination by Mutual Agreement This Grant Agreement may be terminated, in whole or in part, prior to the completion of contract project activities when both parties agree that continuation is not feasible or would not produce beneficial results commensurate with the further expenditure of funds.The Department will determine whether an environmental review of the cancellation is required under State and/or Federal law. The parties must agree on the ternunation conditions, including effective date and the portion to be terminated. The Grantee shall not incur new obligations for the ternnated portion after the effective date, and shall cancel as many outstanding obligations as possible. The Department shall make funds available to the Grantee to pad- for allowable expenses incurred before the effective date of termination. Article 19. Termination for Cause If the Grantee fails to comply with the terms of this Grant Agreement, or fails to use the grant for only those purposes set forth herein, the Department may take the following actions: A. Suspension—After notice in writing by certified mail to the Grantee,suspend the grant and withhold any further payment or prohibit the Grantee from incurring additional obligations of grant funds, pending corrective action by the Grantee or a decision to terminate. Response must be received within fifteen (15) days of receipt of the written notice. B. Termination — Terminate the grant in whole or in part, at any time before the final grant payment is made. The Department shall promptly notify the Grantee in writing of its determination to terminate, the reason for such termination,and the effective date of the termination, Payments made to the Grantee or recoveries by the Department shall be in accordance with the legal rights and liabilities of the parties. Rev.612018 Designaled Legislative Grant Agreemetu Page 7 of 13 Article 20. Withdrawal of Funds In the event funding from the state, federal, or other sources is ,vithdra-,vii, reduced, or limited in anti way, after the effective date of this Grant Agreement and prior to normal completion, the Department may terminate the agreement, reduce funding, or re-negotiate subject to those new funding limitations and conditions. A termination under this article shall be implemented under the same conditions as a termination under Article 19 of this Attachment. Article 21. Recovery of Funds In the event of a default or violation of the terms of the Grant Agreement by the Grantee, the Department may institute actions to recover all or part of the project funds paid to the Grantee. Repayment by the Grantee of grant funds under this recovers-provision shall occur within thirty (30) days of demand. All remedies conferred on the Department by this agreeinneint or any other instrument or agreement are cumulative, not exclusive, and may be exercised concurrently or consecutively at the Departtnetit's option. Article 22. Disputes Except as otherwise provided in this agreement, any dispute concerning a question of fact arising under this agreement that is not disposed of by mutual agreement shall be decided by the Department,which shall reduce its decision to writing and mail, or otherwise furnish a copy thereof, to the Grantee. The decision of the Department shall be final and conclusive. This "Disputes" clause does not preclude the consideration of questions of law in connection with the decision provided for in the preceding paragraph provided that nothing in the Grant Agreement shall be construed as making final the decisions of any administtative official, representative, or board on a question of law. Article 23.Jurisdiction This Grant Agreement shall be governed by the laws and statutes of the State of Alaska. The venue of any suit hereunder may be in the Superior Court for the First judicial District,Juneau,Alaska. Article 24. Ownership of Project/Capital Facilities The Department makes no claim to any capital facilities or real property improved or constructed with fiends under this Grant Agreement and, by this grant of funds, does not and will not acquire an), ownership interest or tide to such property of the Grantee. The Grantee shall assume all liabilities arising from the ownership and operation of the project and agrees to hold the Department and the State of Alaska harmless from any and all causes of action arising from the ownership and operation of the project. Article 25. Site Control If the grant project involves the occupancy and use of real property, the Grantee assures that it has the legal right to occupy and use such real property for the purposes of the grant, and further that there is legal access to such property. As a minimum requirement, the Grantee should obtain a "sufficient interest" that allows the Grantee the right to use and occup)-the site for the expected useful life of the building,structure or other improvement. Generally, the interest obtained should be for at least 20 years. A sufficient interest depends upon the nature of the project and the land status of the site. Rev.612018 Designated Legislative Gran!Agreefnent Page 8 of 13 Article 26. Insurance The Grantee is responsible for obtaining and' necessary liabilit4, insurance and maintain in force at all times during the performance of this Grant Agreement the insurance policies identified below. All insurance policies shall comply with, and be issued by insurers licensed to transact the business of insurance under Alaska Statute AS 21. The Grantee shall require any contractor hired to work on the project be licensed, bonded and insured for at least the amount of the project and if appropriate provide and maintain Professional Liability Insurance. -A Workers' Compensation Insurance for -ill en-1ployecs engaged in work under this Grant Agreement, coverage as required by AS 23.30.0457 and;where applicable,anv other statutory obligations including but not limited to Fedcral U.S.L. & H. and Jones Act requirements. B. Commercial General Liability Insurance covering all business premises and operations used by the Grantee in the performance of this project and Grant Agreement with coverage limits not less than $300,000 combined single limit per occurrence and annual aggregates where applicable. C. Comprehensive Automobile Liability Insurance. covering all vehicles used by the Grantee in the performance of this project and Grant Agreement with coverage limits not less than 5100,000 per person/$300,000 per occurrence bodily injury= and $50,000.00 property damage. D. Professional Liability Insurance covering all errors, omissions or negligent acts of the contractor, subcontractor or anyone directly or indirectly employed by them, made in the performance of this contract which result in financial loss to the State. Liruits required are per the following schedule: Contract Amount Minimum Required Limits Under $100,000 $100,000 per occurrence/annual aggregate Article 27. Subcontracts for Engineering Services In the event that the Grantee subcontracts for engineering services,the Grantee will require that the engineering firm certify- that it is authorized to do business in the State of Alaska. In the event that the engineering firm is also the project administrator, the Grantee shall require that the bond or insurance shall be for not less than the amount of the entire project. Article 28. Governing laxv This Grant Agreement is governed by the laws of the State of Alaska. The Grantee shall perform all aspects of this project in compliance with the appropriate laws and regulations. It is the responsibility of the Grantee to ensure that all permits required for the construction and operation of this project by the Federal, State, or Local governments have been obtained. Article 29. Budget Flexibility Notwithstanding the provisions of Article 11, Attachment C, the Grantee may revise the project budget in Attachment A without a formal amendment to this agreement. Such revisions are limited within each line item to a maximum of ten percent (10%) of the line item or $10,000, whichever is less, over the entire terra of this agreement. Such budget revisions shall be limited to changes to existing budget line items. Budget revisions may not be used to increase any budget item for project administrative expenses. Changes to the budget beyond the limits authorized by this provision may only be made by a formal amendment to this agreement. Article 30. Equal Employment Opportunity (EEO) The Grantee may not discriminate against any employee or applicant for employment because of race, religion, color, national origin, age, physical handicap, set, marital status, changes in marital status, pregnancy, or parenthood. The Grantee shall post un a conspicuous place, available to employees and applicants for employment, a notice setting out the provisions of this paragraph. Re%,612018 Designaled Legislative Grant Agreement Page 9 of 13 The Grantee shall state, in all solicitations or advertisements for employees to work on state funded projects, that it is an equal opportunity- employer (EEO) and that all qualified applicants will receive consideration for employment without regard to race, religion, color, national origin, age, physical handicap, sex, marital status, changes in marital status, pregnancy, or parenthood. The Grantee shall include the provisions of this EEO article in every contract relating to this Grant Agreement and shall require the inclusion of these provisions in every- agreement entered into by any of its contractors, so that those provisions will be binding upon each contractor or subcontractor. Article 31. Public Purposes The Grantee agrees that the project to which this Grant Agreement relates shall be dedicated to public purposes for its useful life. The benefits of the project shall be made available without regard to race, religion, color, national origin, age, physical handicap, sex, inarital status, changes in marital status,pregnancy, or parenthood. If the Grantee is a non-iunicipal entity- and if monies appropriated under this grant constitute the sole or principal funding source for the acquisition of equipment or facilities, the Grantec agrees that in the event a municipal corporation is fortned which possesses the power and jurisdiction to provide for such equipment or facilities, the Grantee shall offer, without compensation, to transfer ownership of such equipment or facilities to the municipal corporation. If the Grantee is a non-profit corporation that dissolves, the assets and liabilities from the grant project are to be distributed according to statutory law, AS 10.20.290-10.20.452. Article 32. Operation and Maintenance Throughout the life of the project, the Grantee shall be responsible for the operation and maintenance of any facility equipment, or other items acquired under this grant. Article 33. Assurance The Grantee shall spend monies awarded under this grant only for the purposes specified in this Grant Agreement. Article 34. Current Prevailing Rates of Wage Certain grant projects are constrained by the provisions of AS 36. PUBLIC CONTRACTS. To the extent that such provisions apply to the project which is the subject of this Grant Agreement, the Grantee shall pay the current prevailing rates of wage to employees as required by AS 36.05.010. The Grantee also shall require any contractor to pay the current prevailing rates of wage as required by AS 36.05.010. Article 35. Severability If any provision under this Grant Agreement or its application to any person or circumstance is held invalid by any court of rightful jurisdiction,this invalidity does not affect other provisions of the contract agreement which can be given effect without the invalid provision. Article 36. Performance The Departmetit's failure to insist upon the strict performance of any provision of the Grant Agreement or to exercise any right based upon breach thereof or the acceptance of any- performance during such breach shall not constitute a waiver of any rights under this Grant Agreement. Rev. 612018 Designaled Legislative Grant Agreement Page 10 of 13 Article 37. Sovereign Immunity I£the Grantee is an entity which possesses sovereign immunity, it is a requirement of this grant that the Grantee irrevocably waive its sovereign immunity with respect to state enforcement of this Grant Agreement. The waiver of sovereign immunity, effected by resolution of the entity's governhig body,is herein incorporated into this Grant Agreement. Article 38. Audit Requirements The Grantee must comply with the audit requirements of the Alaska Administrative Code set forth in 2AAC45.010. AUDIT REQUIREMENTS. Ali entity that expends a cumulative or total, equal to the state single audit threshold during the fiscal year is required to have a state single audit. A copy of the most current 2AAC45.010 adopted regulations is available at the Alaska Department of Adininistration's State Single Audit website: http://doa.ala,,ka.gov/dof/ssa/index.litml. Current audit compliance supplements and guides specific to programs under AS 37.05.31.5 Grants to Municipalities, AS 37.05.316 Grants to Named Recipients, and AS 37.05.317 Grants to Unincorporated Communities can be found at littp://doa.alaska.go-%T/dof/ssa/audit guide.html. Article 39. Close-Out The Department will advise the Grantee to initiate close-out procedures when the Department deternuries, in consultation with the Grantee, that there are no impediments to close-out and that the following criteria have been met or soon will be met: A. All costs to be paid with grant funds have been incurred with the exception of close-out costs and any unsettled third-party claims against the Grantee. Costs are incurred when goods and services are received or contract work is performed. B. The last required performance report has been submitted. The Grantee's failure to submit a report will not preclude the Department from effecting close-out if it is deemed to be in the State's interest. Any excess grant amount that may be in the Grantee's possession shall be returned by the Grantee in the event of the Grantee's failure to fniush or update the report. C. Other responsibilities of the Grantee under this Grant Agreement and any close-out agreement and applicable laws and regulations appear to have been carried out satisfactorily or there is no further State interest in keeping the grant open for the purpose of securing performance. Article 40. Americans with Disabilities Act The Americans with Disabilities Act (ADA) prohibits discrimination against persons with disabilities. Title I of the ADA prohibits discrimination against persons with disabilities in employment and provides that a reasonable accommodation be provided for applicants and employees. Title II of the Act prohibits public agencies from discriminating against individuals with disabilities in the provision of services, programs, or activities. Reasonable accommodation must be made to ensure or allow access to all services,programs, or activities. This section of the Act includes physical access to public facilities and requires that public entities must,if necessary, make modifications to their facilities to remove physical barriers to ensure access by persons with disabilities. All new construction must also be accessible to persons with disabilities. A public entity's subgrantees or contractors must also comply with the ADA provisions. Grantees are responsible for assuring their compliance with the ADA. Rev. 612018 Designated Legislative Grant Agreement Page I I of 13 Appendix A State Laws and Regulations and Permits Grantees are responsible for all applicable state laws, regulations and permits; including but not Iunnited to the following list which most commonly- affects Grantees. Municipality Public Facility Operations and Maintenance--AS 37.05.315(c) In accepting a grant under AS 37.05.315 for construction of a public facility, a municipality covenants with the State that it will operate and maintain the facility for the practical life of the facility and that the municipality will not look to the State to operate or maintain the facility or pay for its operation or maintenance.This requirement does not apply to a grant for repair or improvement of an existing facility operated or maintained by the State at the time the grant is accepted if the repair or improvement for which the grant is made will not substantially increase the operating or maintenance costs to the State. Restriction on Use—AS 37.05.321 A grant or earnings from a grant under AS 37.05.315 -37.05.317 may not be used for the purpose of in fluencung legislative action. In this section "influencing legislative action" means promoting, advocating, supporting, modifying, opposing, or delaying or seeking to do the same with respect to any legislative action but does not include the provision or use of information, statistics, studies, or analyses in written or oral form or format. A grant or earninngs from a grant made under AS 37.05.315 - 37.05.317 may not be used for purposes of travel in connection with influencing legislative action unless pursuant to a specific request from a legislator or legislative committee. Hiring Preferences—AS 36.10 This chapter of the Alaska Statutes applies to grants for public works projects and requires compliance with the hiring preferences under AS 36.10.150--- 36.10.175 for employment generated by the grant. Historic Preservation Act—AS 41.35 This chapter of the Alaska Statutes applies to public construction of any nature undertaken by the State, or by a governmental agency of the State, or by a private person under contract with or licensed by the State or a governmental agency of the State. The Department of Natural Resources must be notified if the construction is planned for an archaeological site. The Department of Natural Resources may stop the construction to determine the extent of the historic, prehistoric, or archaeological values. Fire Protection--AS 18.70 This chapter of the Alaska Statutes requires the Alaska Department of Public Safety (the State .Fire Marshal) to adopt regulations (currently in the form of Uniform Fire Code, as amended) establishing rnininaum standards for: 1. Fire detection and suppression equipment; 2. Fire and life safety criteria in commercial, industrial, business, institutional, or other public buildings used for residential purposes containing four or more dwelling units; 3. Any activity in which combustible or explosive materials are stored or handled in commercial quantities; 4. Conditions or activities carried on outside a building described in (2) or (3) likely to cause injury to persons or property. Rev.612018 Designated Legislative Grant Agreement Page 12 of 13 Procurement Preference for State Agricultural and Fisheries Products—AS 29.71.040 This chapter of the Alaska Statutes applies to municipalities that use state fiends to purchase agricultural and fisheries products. The law requires: 1. When agricultural products are purchased, only such products harvested in the state shall be purchased whenever priced no more than seven percent above products harvested outside the state, and of like quality compared with agricultural products harvested outside the state. 2. When fisheries products are purchased, only fisheries products harvested or processed within the jurisdiction of the state shall be purchased whenever priced no more than seven percent above products harvested or processed outside the jurisdiction of the state,available, and of like quality compared with fisheries products harvested or processed outside the jurisdiction of the state. Alaska Product Preferences—AS 36.15 This chapter of the Alaska Statutes applies to projects financed by state money in which the use of timber, lumber,and manufactured lumber products is required,only timber,lumber and manufactured lumber projects originating in this state from local forests shall be used wherever practicable. The law requires the insertion of this clause in calls for bids and in all contracts awarded. Permits and Environmental Procedures The Alaska Department of Environmental Conservation (ADEC) regulates all activities in Alaska that might pollute the air, water or soil. There are dozens of ADEC permits related to constructing and operating public buildings. The law requires the following permits, including others designated by the commissioner. The following list is not intended to be all-inclusive. • Air Emissions Permit • Permit to Appropriate Water • Anadromous Fish Protection Permit • Pesticides Permit • Authorization for Tidelands • Preferred Use Permit Transportation • Right-of-Way and Easement Permits • Brine or Other Salt Water Waste • Solid Waste Disposal Disposal Permit • Special Land Use Permit • Burning Permit during Fire Season • State Game Refuge Land Permit • CoaI Development Pernnit • State Park Incompatible Use Permit • Critical Habitat Area Permit • Surface Oiling Permit • Dam Construction Permit • Surface Use Pernnit • Driveway Permit • Tide and Submerged Lands Prospecting • Encroachment Permit Permit • Miscellaneous State Land Use Permit • Tidelands Permit • Mineral and Geothermal Prospecting • Tidelands Right-of-Way or Easement Permit. Permits • Utility-Permit • Occupied Tide and Submerged Land • Waste Water Disposal Permit • Open Burning Permit • Water Well Permit • Permit for Use of Timber or Materials Het'. 612018 Designated Legislative Grant Agreement Page 13 of 13 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2014-059 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ENTERING INTO A PURCHASE AND SALE AGREEMENT ("AGREEMENT") BETWEEN THE CITY OF SEWARD AND THE FRIENDS OF THE JESSE LEE HOME, DISPOSING OF PROPERTY AT LESS THAN FAIR MARKET VALUE TO A NONPROFIT CORPORATION, FOR LOTS 15A AND 15B, JESSE LEE HOME HEIGHTS SUBDIVISION ADDITION NO. 4 ACCORDING TO PLAT 89- 18, FOR USE AS A PUBLIC EDUCATIONAL AND RESIDENTIAL BOARDING SCHOOL WHEREAS, the Seller owns the Jesse Lee Home property ("Property," defined below) that is the subject of this Agreement; and WHEREAS, since 2005 the Buyer has been working pursuant to City of Seward Resolution 2005-01 and City of Seward Resolution 2005-83 to obtain funding for the rehabilitation and development of the Property as an educational and residential/ boarding facility;and WHEREAS, Buyer has already coordinated valuable improvements to the Property, including but not limited to Structural Stabilization, Roof Protection & Repairs, Phase I Environmental Assessment, Hazmat Study, Surveying, Structural Analysis and Architectural Design;and WHEREAS, the property was appraised by MacSwain Associates LLC, in 2011 and the two parcels were valued at$470,000 for the raw land; and WHEREAS, since repossessing the property in 2001 the City has paid $264,958 in back taxes and utility assessments, plus untallied administrative, maintenance and risk control costs; and WHEREAS, the assessed value of the property has decreased over time as the property has deteriorated; and WHEREAS, Buyer has supported $33,125.51 for the Environmental Study, Hazmat Study, and survey work and has agreed to provide additional improvements totaling$290,750 as consideration toward the purchase of the property; and WHEREAS, the Buyer wishes to acquire, rehabilitate and develop the Property for use as a public educational and residential/boarding school; and WHEREAS, the Buyer intends to submit an application to the Kenai Peninsula Borough School District for a charter school;and CITY OF SEWARD,ALASKA RESOLUTION 2014-059 WHEREAS, the Property requires significant physical improvements to be used for such purposes,and such uses also require that governmental permits and approvals be granted; and WHEREAS, development of the Property by the Buyer as an educational and residential/boarding school will be a public benefit;and WHEREAS, the educational and residential boarding school will have a net positive economic development impact for the community including short and long-term employment; and WHEREAS, Buyer is uniquely situated and able to redevelop the Property; and WHEREAS, it is in the City's best interest to dispose of these properties in the manner described in the attached Purchase and Sale Agreement, to transfer the risk and liability of the abandoned Properties and the responsibility for necessary site hazardous materials disposal and abatement to the Buyer. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The City of Seward hereby authorizes the City Manager pursuant to SCC 7.05.120 and 7.05,150 to execute the Purchase and Sale Agreement for the sale of properties referenced as 15A and 15B, Jesse Lee Heights Subdivision Addition No. 4 according to Plat 89- 18, Seward Recording District, Third Judicial District, State of Alaska to the Friends of the Jesse Lee Home for less than fair market value. Section 2. The Friends of the Jesse Lee Home agree to complete at least $290,750 in future long-term site improvements and to pay all closing costs and fees for said property as consideration to the City for the properties. Section 3. The Seward City Council finds the disposal of these properties as described in the attached Purchase and Sale Agreement to be in the best interests of the citizens of the City of Seward and that the public interest will be served by disposing of the property interest for less than the appraised fair market value, in accordance with the recitals above which are incorporated herein. Section 4. This Resolution shall take effect thirty (30)days after passage and posting. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 281" day of July,2014. 4Z Council Agenda Statement Meeting Date: July 28,2014 Through: Jim Hunt,City Manager From. Ron Long,Assistant Cit &Community Development Direct r Agenda Item: To enter into a purchase and sale agreement between the City of Seward and the Friends of the Jesse Lee Home,disposing of property at less than fair market value to a nonprofit corporation, for lots 15A and 15B,Jesse Lee Home Heights Subdivision Addition No.4 according to Plat 89-18 BACKGROUND & USTIFICATION: The Jesse Lee Home is listed on the National Register of Historic Places and has been identified by the Seward Historic Preservation Commission,Planning and Zoning Commission,previous City Councils and the State of Alaska as a property that should be preserved and rehabilitated. The City of Seward acquired the Jesse Lee Home property through a foreclosure action in 2001 after previous private preservation efforts failed. The Friends of the Jesse Lee Home (FJLH) was formed to preserve the property as an education facility and has since worked to obtain funding for the rehabilitation and development of the Property and to develop a business model that can sustainably operate the property as an educational and residential/boarding school. The property was appraised by MacS wain Associates LLC in 2011 and the two parcels were valued at $470,000 for the raw land. The Kenai Peninsula Borough assesses the properties' value at$193,500. The City's cost basis in the property is $264,958 paid in back taxes and assessments, plus untallied administrative, maintenance, and risk control costs. FJLH has coordinated$33,125 in environmental studies, HAZMAT assessments and survey work that estimate the costs of HAZMAT abatement at $216,000. Actual costs may be more, and other costs would be necessary to make the property marketable for other uses. FJLH wishes to acquire, rehabilitate and develop the Property for use as a public educational and residential/boarding school. The Friends of the Jesse Lee Home intend to submit an application to the Kenai Peninsula Borough School District foracharter school.The Property requires significant physical improvements to be used for such purposes,and such uses also require that governmental permits and approvals be granted. The City recognizes that in its current state the property is more of a liability than an asset to the City, and that FJLH is uniquely situated as the most likely entity to bring the property back to a viable state that will restore the public purpose and maintain the historic significance of the property. FJLH has coordinated significant funding towards the project,has done considerable architectural and engineering work already, and now needs to gain site control before beginning the major work of restoration and development.Yet more funding is needed to complete the project;FJLH will exhaust all efforts to ensure the project succeeds but there is no guarantee that a source can be found or that the project will actually be completed.The Friends of the Jesse Lee Home and the City administration have negotiated the attached Purchase and Sale agreement that attempts to further the Friends'objectives and the City's desire to see the project succeed but at the same time ensure that if it does not,that the City 1 will at least take back ownership of a developable and sellable property. The agreement prioritizes the HAZMAT abatement and environmental cleanup work and provides a reasonable timeline to complete that work.The City receives no cash in this agreement,and this is a less than fair market value transaction. As consideration, the City accepts the $290,500 of planned improvements as described in the Purchase and Sale Agreement,at the timeline benchmarks therein,to be of good value and in the public's interest. Additionally, a reversionary clause endures with the project to ensure that if the property is used for any purpose other than that which the City accepts as a condition to the transaction (use as a public educational and residential boarding school), ownership goes back to the City. Development of the Property by the Buyer as an educational and residential/boarding facility will be a public benefit. The educational and residential/ boarding school will have a positive economic development impact for the community including short and long-term employment.The Friends of the Jesse Lee Home is uniquely situated and able to redevelop the Property. This Agreement is in the city's best interest to dispose of unused land and provide necessary site improvements to make the property an asset to the community and not a continuing liability. INTENT: To dispose of property at less than fair market value as described in the Resolution and Purchase and Sale Agreement. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan(p. 9):Cultural Facilities- Options refurbishing the 1. Jesse Lee Home per Historic Structure Report, 3.9.1.2—Encourage the X recognition, rehabilitation and reservation of..historic structures... 2. Strategic Plan (document source here): X F3. Other(list): SPHC,P&Z and City Council Resolutions of support; X National Re ister of Historic Places listing FISCAL NOTE: No money changes hands in this transaction. The Friends of the Jesse Lee Home agrees to pay all closing costs and fees. The City has written off the costs to acquire the property in previous budgets. Transfer of ownership will reduce the City's liability for an attractive nuisance property. Ownership by a non-profit entity will maintain the tax-exempt status of the property. Approved by Finance Department: `Aacz z) ATTORNEY REVIEW: Yes X No RECOMMENDATION: To authorize the City Manager to execute the Purchase Agreement for the property referenced as 15A and 1513, Jesse Lee Heights Subdivision Addition No. 4 according to Plat 89-18, Seward Recording District,Third Judicial District, State of Alaska with the Friends of the Jesse Lee Home as a less than fair market transaction in substantial form as described in the attached Purchase and Sale agreement to facilitate the use of the property as a public educational and residential/boarding facility. �0 7/28/2014 PURCHASE AND SALE AGREEMENT This Purchase and Sale Agreement ("Agreement") is made as of July 28, 2014, between Friends of the Jesse Lee Home, an Alaska nonprofit corporation, recognized by the Internal Revenue Service under 26 U.S.C. § 501(c)(3) ("Buyer"), whose address is P.O. Box 737, Seward, Alaska 99604, and the City of Seward, an Alaska home rule municipal corporation, whose address is P.O. Box 167, Seward, Alaska 99604("Seller"). RECITALS WHEREAS, the Seller owns the Jesse Lee Home property ("Property," defined below) that is the subject of this Agreement; and WHEREAS, since 2005 the Buyer has been working pursuant to City of Seward Resolution 2005-01 and City of Seward Resolution 2005-83 to obtain funding for the rehabilitation and development of the Property as an educational and residential/ boarding facility;and WHEREAS, Buyer has already coordinated valuable improvements to the Property; and WHEREAS, the property was appraised by MacSwain Associates LLC. in 2011 and the two parcels were valued at$470,000 for the raw land;and WHEREAS, since repossessing the property in 2001 the City has paid $264,958 in back taxes and utility assessments, plus untallied administrative, maintenance and risk control costs; and WHEREAS, Buyer has agreed to coordinate additional improvements which will increase the long-term value of the site; and WHEREAS, the Buyer wishes to acquire, rehabilitate and develop the Property for use as a public educational and residentiallboarding school; and WHEREAS, the Buyer intends to submit an application to the Kenai Peninsula Borough School District for a charter school; and WHEREAS, the Property requires significant physical improvements to be used for such purposes,and such uses also require that governmental permits and approvals be granted; and WHEREAS, development of the Property by the Buyer as a public educational and residential boarding school will be a public benefit;and WHEREAS, the educational and residential/ boarding school will have a net positive economic development impact for the community including short and long-term employment; and WHEREAS, Buyer is uniquely situated and able to redevelop the Property; and 1106S-000.00107892.I Seller Initial Buyer Initial Page I}of 7 51 7/28/2014 WHEREAS, it is in the city's best interest to dispose of these properties at less than fair market value in the manner described herein, transfer the risk and liability of the abandoned properties and the necessary site hazardous material cleanup and abatement to the Buyer. Now, therefore,Buyer and Seller agree as follows: 1. Purchase and Sale: Subject to the terms and conditions of this Agreement, Seller agrees to sell and Buyer agrees to purchase good and marketable title in fee simple, subject to reversion, of the following real property, including all improvements, fixtures, and appurtenances, described as follows (the "Property"): Lots 15A and 15B, Jesse Lee Heights Subdivision Addition No. 4 according to Plat 89-I8, Seward Recording District, Third Judicial District, State of Alaska. 2. Consideration: The title of the property shall be transferred on August 29, 2014. There shall be a reversionary clause to transfer the property back to the City of Seward if the following improvements are not completed within a five (5) year term. The consideration for the transfer of the Property shall consist of previous studies necessary to evaluate the site plus site improvements (the "Work") to be performed by Buyer to the satisfaction of the seller, on, or before, the final date of the Due Diligence Period of August 30, 2019, The Work shall consist of the following: a, Hazmat Abatement (estimated at$216,000) b, 50% of Water Utilities: 270+/- feet 8" main @ $200 per foot and 2 hydrants (estimated at$74,000 X .5= $37,000) c. 50% of Sewer Utilities: 220+/- feet 6" main @ $150 per foot, 100+/- feet 4" main @ $125 per foot, 3SSMHs @ $10,000 each (estimated at $75,500 X .5 = $37,750) Total estimated required future improvements: $290,750.00. In addition, Buyer has coordinated$33,125.51 for the Environmental Study, Hazmat Study, and survey work listed in Appendix A, for total consideration of$323,875.51, Upon substantial completion of all Work, the reversionary clause shall remain in effect so that the properties shall revert to the City of Seward if the above work is not completed finally or the properties are used for any other purpose than as a public education and residential boarding 11 1065-OOO-OO tO7892;l Seller Initial Buyer Initial Page 2of7 iZ 7/28/2014 facility, unless the City and Buyer mutually and in writing agree to allow other uses and not initiate reversion. 3. Closing: Consummation of the sale (the "Closing") shall take place at the offices of the Seller, or such other place as Seller and Buyer agree in writing. The Closing shall be completed on August , 2014, unless otherwise agreed by both parties. In the event this transaction is not closed within the above-described closing period, this Agreement shall terminate unless extended in writing by mutual agreement of the parties. Seller and Buyer shall cause the following to occur at Closing: a. A Quitclaim Deed with reversionary clause as described above, conveying the Property to Buyer, duly executed and acknowledged by Seller, shall be recorded in the Records of the Seward Recording District, Third Judicial District, State of Alaska. b. Buyer shall deliver to Seller a certification that the work will be completed no later than August 30, 2019. 4. Closing Costs: All Closing costs of the transaction, unless otherwise provided in this Agreement, shall be paid by Buyer. 5. Bu er's Representation and Warranties: The representations and warranties of Buyer in this paragraph are a material inducement for Seller to enter into this Agreement. Such representations and warranties shall survive the Closing. Buyer represents and warrants to the best of its knowledge: a. Buyer is being provided a sufficient opportunity to investigate the condition of the Property; Closing of this transaction shall constitute a certification that Buyer releases and holds harmless the Seller from all liability and legal claims, environmental or otherwise, whether known or may be discovered in the future, concerning or affecting title to the Property, any operation or activity on the Property or any condition now and hereafter existing on, in, or under the Property. b. Buyer is being provided a sufficient opportunity to become familiar with the deteriorated condition of improvements on the Property. Buyer acknowledges that it shall acquire the Property "AS IS" AND WITHOUT WARRANTY OF ANY TYPE OR NATURE INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR USE. 6. Conditions of ClosindDue Diligence: [tabs-aaa-Oata7842v1 Seller Initial Buyer Initial Page 3 of 7 1-::� 7/28/2014 a. This Agreement is subject to approval by the City Council for the City of Seward, following notice and a public hearing as required by the Seward City Code. b. After approval by the City Council, Buyer shall have until August 30, 2019 to perform Due Diligence (the "Due Diligence Period'), to investigate the condition of the Property and its suitability for Buyer's intended use, and to perform the Work that shall constitute the consideration for the acquisition of the Property. 1. If Buyer determines for any reason in its sole discretion during the Due Diligence Period that the Property does not meet its needs, Buyer may notify Seller in writing that it is terminating this Agreement and shall be released from all obligations under this Agreement except for ongoing indemnity obligations and any costs to the City associated with terminating the Agreement. 2. During the Due Diligence Period, Buyer and its agents may enter upon the Property and, at Buyer's expense, conduct soils tests, environmental assessments, traffic studies, feasibility of excavation permits, physical inspections and any other analyses or evaluations (hereafter collectively "Evaluations") that Buyer desires. Buyer also shall be granted consent, during the Due Diligence Period, to enter the Property and initiate, conduct, and complete the Work on the Property. 3. Buyer shall indemnify, defend and hold Seller harmless against any claims, costs, or liabilities related to or arising out of any Evaluations, Remediation or Work that Buyer performs during the Due Diligence Period. Buyer shall ensure that Buyer and all of its contractors and subcontractors maintain workers compensation insurance as required by law. 4. If, despite Buyer's reasonable efforts, Buyer has initiated the Work but not been able to complete the Work by the end of the Due Diligence Period, Buyer and Seller may confer to discuss and negotiate an extension to the Due Diligence Period, which may be reasonably necessary for the Buyer, making commercially reasonable efforts, to complete the Work. 7. Costs and Fees: If either party breaches any term of this Agreement,the breaching party agrees to pay the non-breaching party all actual and reasonable attorneys' fees and other costs and expenses incurred by the non-breaching party in enforcing this Agreement or preparing for legal or other proceedings, whether or not instituted. If any legal or other proceedings arc instituted, the party prevailing in any such proceeding shall be paid all of the aforementioned costs,expenses, and fees by the other party, and if any judgment is secured by such prevailing party, all such costs,expenses,and fees shall be included in such judgment. In the case of the Seller all monetary obligations hereunder are subject to appropriation. 11065-000-00107892;1 I I Seller Initial Buyer Initial Page 4 of 7 1 7/28/2014 $. Post-Closing Approvals: After closing, Buyer will need to obtain certain governmental authorizations, Permissions, and permits ("Approvals") in order to use the Property for its intended use as an educational and residential/boarding facility. The Approvals are anticipated to include but are not limited to the following: (1) construction permit(s); (2) replatting of the Property to vacate the Iot line between the two parcels; (3) rezoning of the Property to "Institutional"; and (4) approval of a conditional use permit. Seller agrees to cooperate reasonably with Buyer in processing applications for such Approvals, provided, however, that such cooperation shall not be construed as a warranty that any such Approval(s) will be granted or in any way as a waiver of any otherwise applicable City or Borough requirements, standards, or prohibitions. 9. Waiver: No delay in exercising any right or remedy shall constitute a waiver thereof, and no waiver by Seller or Buyer of a breach of any covenant of this Agreement shall be construed as a waiver of any preceding or succeeding breach of the same or any other covenant or condition of this Agreement. 10. Assignment: This Agreement is binding on the heirs, successors, and assigns of the parties, but shall not be voluntarily assigned by either party without prior written consent of the other party, which consent shall not be unreasonably withheld. Buyer may pledge its interest in the property, subject to the reversionary interest,for the purpose of financing improvements of the existing structures. 11. Commissions: Each party represents and warrants to the other that it has not engaged the services of any broker, finder, or other person who would be entitled to any commission or fee in respect to the subject matter of this Agreement and each shall indemnify the other against any loss, cost, liability, or expense incurred by the other as a result of any claim asserted by any such broker, finder, or other person on the basis of any brokerage or similar arrangement or agreement made or alleged to have been made. 12. Notices: No notice, consent, approval, or other communication provided for herein or given in connection with this Agreement shall be given, made, delivered, or served unless it is in writing and delivered personally, sent by overnight courier, or sent by registered or certified United States mail, postage prepaid, with return receipt requested to: Seller: City of Seward P.O. Box 167 Seward, Alaska 99664 Buyer: Friends of the Jesse Lee Home 111065-000-00107992;11 Seller Initial Buyer Initial Page 5 of 7 1S 7/28/2014 P.O. Box 737 Seward,Alaska 99664 Notices, consent, approvals, and communications given by mail shall be deemed delivered upon the earlier of three days after deposit in the United States mail in the manner provided above or immediately upon delivery to the respective addresses set forth above, if delivered personally or sent by overnight courier. 13. Entire Agreement: This document and its attachments contain the entire Agreement between the parties. it may not be modified except in writing and signed by all parties. 14. Surviving Covenants: The indemnification provisions of this Agreement shall survive the delivery of the Deed. 15. Time is of the Essence: Time is of the essence of this Agreement. 16. Exclusive A r� eement: This Agreement shall constitute an exclusive arrangement between the parties. Seller shall not market, sell, negotiate for the sale of, or convey the Property to any other person, provided that Buyer has not delivered notice that it will not close due to an unsatisfied condition. 17. Controlling Law and Venue: This Agreement shall be governed by, construed under, and enforced in accordance with the laws of the State of Alaska,and venue for actions between the parties arising out of or related to this Agreement shall be in the Alaska Superior Court, Third Judicial District, Anchorage, Alaska. SELLER: BUYER: The City of Seward Friends f theZJesseHo James Hunt,City Manager irsten Vesel, Executive Director/Project Date: Manager Date: �' J ATTEST: 1�_065-fl0U_-00 107892:!L_� Seller Initial Buyer Initial Page 6 of 7 t� 7/28/2014 Johanna Kinney, CMC, City Clerk 1065-OW-00107892 1 I Seller Initial- Buyer Initial Page 7 of 7 1-� i .31 � lit 115 lu e o. j zi_ .. At �Jlam n fYr.r16 .46 a G Gu!'W�. Il I I � ♦ � V y.o �Y'� l 'rr fW.�.L�Yr�r, W �4f Mof ��saL311 Zw. --_ I._._—fi' _.rrfs .wa I 9 g I I m"w:�G=°w� i os �.r .n.ry.rr.osW x I F7 I ! a 1 i 1 Sponsored by: Oates CITY OF SEWARD, ALASKA f.. RESOLUTION 2008-034 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT A $I MILLION STATE GRANT FOR THE IMMEDIATE STABILIZATION OF THE JESSE LEE HOME AND ADMINISTERING A PHASE 11 STRUCTURAL ENGINEERING REPORT FOR THE FRIENDS OF THE JESSE LEE HOME WHEREAS, resolution 2005-66 recognized the Jesse Lee Home as a historical landmark for the State of Alaska and the City of Seward, and recognized the restoration of the Jesse Lee Home as a City priority, and directed the city manager or his designee to support the Historic Preservation Commission to develop relationships with private, state and federal organizations to further pursue the preservation and restoration of the Jesse Lee Home; and WHEREAS, resolution 2005-83 supported the use of the Jesse Lee Home as an educational institution and directed the city manager or his designee to support the Historic Preservation Commission to apply for a grant or grants intended to develop a feasibility study and continue to pursue relationships with private, state and federal organization's; and w.. WHEREAS, the City of Seward approved resolution 2006-119 recognizing the Friends of the Jesse Lee Home (Friends) as a statewide interest group and project partner dedicated to the restoration of the Jesse Lee Home as a statewide leadership school; and WHEREAS, Resolution 2006-119 directed the city manager to support the Friends in seeking private grants and/or the funding for the Jesse Lee Home and support the Friends to assure the success of this partnership; and WHEREAS, in 2007, the Friends of the Jesse Lee Home secured a state grant of S 1 million for the purpose of immediate stabilization of the Jesse Lee Home; and WHEREAS, the State of Alaska has appropriated rant funds to the Department of Natural Resources totaling $1 million; and WHEREAS, the Friends have requested the City of Seward advertise, award and administer a contract to secure services from a professional to prepare the phase 11 engineering report; and CITY OF SEWARD, ALASKA RESOLUTION 2008-034 wow WHEREAS, this report will recommend appropriate strategies for the rehabilitation, development and management of the Home in a manner that recognized the Jesse Lee Home's historical significance; and WHEREAS, the report will help outline the most immediate structural needs, prioritize the highest priorities and provide recommendations for immediate stabilization to the Friends of the Jesse Lee Home and the City of Seward; and WHEREAS, the remaining funding will be used to stabilize the Jesse Lee Home until additional funds are secured. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The city manager is authorized to accept a grant from the State of Alaska. Section 2. The city manager is authorized to accept grant funds totaling. $1 million to the Jesse Lee Home Rehabilitation Fund account no. 271-2719-4680-0200. i Section 3. The city manager is authorized to execute an RFP for a Phase H structures MMj report to help outline the most immediate structural needs, prioritize the highest priorities and provide recommendations for immediate stabilization for the Friends of the Jesse Lee Home. 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 April, 2008. THE CITY OF SEWARD, ALASKA M i2Q Clark Corbridge, Ma .ri K ellar, alc�atta,D unh�'�Bardarson, Carbn��e aYL�• �ber� 1�iC}ES Smith ABSTAIN A'T'ftsl J�2ti3 Lew's Cll� C1eT1�,CM Seal} a too r.+ r• Council Agenda Statement Meeting Date: April 28, 2008 Through: Phillip Oates, City Manager KV u Agenda Item. Authorizing the city manager to accept a $1 Million grant from the Alaska Department of Natural Resources and authorizing the city manager to execute an RFP for a Phase II structures report to help outline the most immediate structural needs prioritize the highest priorities and provide recommendations for immediate stabilization for the Friends of the Jesse Lee Home. BACKGROUND & JUSTIFICATION: The Friends of the Jesse Lee Home (Friends)are a statewide special interest group dedicated to the preservation of the Jesse Lee Home for a worthy sustainable end use. The Friends have embraced a leadership charter school as their preferred alternative use for the facility, and are actively lobbying for funds and seeking grants to fulfill their plans. The Jesse Lee Home buildings are national treasures. They are listed individually on the National Register of Historic Places. The National Trust for Historic Preservation found the buildings, their history and the proposed use to be compelling enough to award a nationally competitive pre- development grant. The Friends secured a$1 Million grant from the State of Alaska in 2007 and are expecting another$1 Million grant from the State of Alaska in 2008. The Friends have an active capital campaign where they are raising additional private and corporate funds; in addition to seeking grants and historic preservation tax credits to complete the end goal of fully restoring the property. The Friends propose to restore the facilities to their best and highest use,as a residential, statewide leadership charter school for high-school aged youth. Students from across the state will come to stay at the Jesse Lee Home to study with local day students in Alaska's only residential charter school, learning through competency-based educational techniques about leadership, democracy, sciences, mathematics, politics, technology and the humanities at the same time as they learn about what makes Alaska work: hands-on skills such as plumbing, welding, computer repair, home-building and healthcare. This leadership charter school will be a state of the art, innovative education model customized for our state's greatest needs. The Jesse Lee Home leadership charter school will provide a critical component of Alaska's education ensuring a secure future for our state. This charter school will not only instill leadership skills, it will also instill a sense of experiential learning and democratic education to specifically foster the future leaders of the State of Alaska. The goal is that upon graduation from the Jesse Lee program, these students will be technologically fluent, self-motivated, committed to lifelong learning and have a strong sense of responsibility. They will then go back home and share their experiences with their communities. It is hoped that students will foster lifelong relationships with their Jesse Lee Home peers. They will grow up to be leaders in their communities, able to address complex issues capably and empathetically across the traditional divides of race, gender and class. Economic Benefits to the Community: The Jesse Lee Horne is physically located in Seward, Alaska. The Friends of the Jesse Lee Home (Friends)expect that students from the ten rural and urban school districts using the Re-Inventing Schools Coalition (RISC)approach will be interested in semester-long, cross-district cohorts. The Friends believe that students from across the state will compete for regional corporation scholarships to cover their room and board costs for semester or year-long stays. The Friends also believe that the home-school population of Seward is a potential day school cohort and is collaborating with the public high school to create a partnership effort in conjunction with the Kenai Peninsula school district. Charter schools are affecting community economic development (CED) in three major ways. First, there is growing evidence that an increasing number of community-based organizations are starting charter schools to expand their current services. Second, as neighborhood schools improve, families are less likely to trove once they have children. Finally,with respect to real estate development,charter schools often purchase or lease vacant, dilapidated buildings, long viewed as eyesores, and renovate them into state-of-the-art new schools and even community centers. Charter schools have a direct impact on community development as they help turn rundown, unused structures into renovated school buildings. Charter schools are generally welcome to communities and are positive additions to their neighborhoods. The Jesse Lee home is a cherished landmark and a fully restored facility will allow the community to treasure their historic landmark. Furthermore, the Jesse Lee Home will become the gem of the state, where Alaskan leaders teach students to become the future leaders of our great state. City of Seward Historical Support: In 2005,Resolution 2005-66 recognized the Jesse Lee Home as a historical landmark for the State of Alaska and the City of Seward, and recognized the restoration of the Jesse Lee Home as a City priority, and directed the city manager or his designee to support the Historic Preservation Commission to develop relationships with private, state and federal organizations to further pursue the preservation and restoration of the Jesse Lee Home. Again, in 2005, Resolution 2005-83 supported the use of the Jesse Lee Home as an educational institution and directed the city manager or his designee to support the Historic Preservation Commission to apply for a grant or grants intended to develop a feasibility study and continue to pursue relationships with private, state and federal organizations. In 2006, the City of Seward approved resolution 2006-119 recognizing the Friends of the Jesse Lee Home (Friends) as a statewide interest group and project partner dedicated to the restoration of the Jesse Lee Home as a statewide leadership school. Again, in 2006,Resolution 2006-119 directed the city manager to support the Friends in seeking private grants and/or the funding for the Jesse Lee Home and support the Friends to assure the success of this partnership. In 2007, the Friends of the Jesse Lee Home secured a state grant of$1 Million for the purpose of immediate stabilizing of the Jesse Lee Home. The State of Alaska has appropriated grant funds to the Department of Natural Resources totaling $1Million. The Friends of the Jesse Lee Home have created bylaws and articles of incorporation to create a non- profit,501(c)3. This status is still pending state approval. Until they receive this status, the Friends are not a legal entity and are notable to administer the$1 Million for a structures report or immediate stabilization. Due to the fragile state of the Jesse Lee Home structures,the Friends are concerned that time is of the essence. The Friends would like to update the structures report that was administered by the City of Seward in 2003 to obtain a professional recommendation for the immediate stabilization of the structures and have asked the City of Seward to assist them in this effort. The Friends are able to provide administrative assistance to help facilitate the request for proposal and the City will not incur any costs other than some in-kind staff time. The Friends have requested the City of Seward advertise,award and administer a contract to secure services from a professional to prepare the phase 11 engineering report. The S1Million grant will cover all costs to the City. Attached is a Friends of the Jesse Lee Home Background summary report. for additional information about the project. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, land Use Plans, Strategic Plan and City Council Rules of Procedures. FISCAL NOTE: There is no cost to the City of extending this contract other than some in-kind staff assistance. A*/(-, RECOMMENDATION: Seward City Council approve Resolution 2008-3i authorizing the city manager to accept a$1 Million grant from the Alaska Department of Natural Resources and authorizing the city manager to execute an RFP for a Phase 11 structures report to help outline the most immediate structural needs,prioritize the highest priorities and provide recommendations for immediate stabilization for the Friends of the Jesse Lee Home. Sponsored by: Shealy CITY OF SEWARD, ALASKA RESOLUTION 2005-01 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER AND STAFF TO APPLY FOR A GRANT FROM "SAVE AMERICA'S TREASURES" IN ORDER TO STABILIZE AND PRESERVE THE JESSE LEE HOME WHEREAS, the Jesse Lee Home is one of Seward's nine properties listed on the National Register of Historic Places; and WHEREAS, the Jesse Lee Home is in dire need of stabilization and preservation; and WHEREAS, the "Save America's Treasures" grant program, which has funds available for restoring historic properties; and WHEREAS, in 2004 the City of Seward applied for a"Save America's Treasures" grant for the first time, which was not approved but encouragement was provided to reapply during the next grant cycle, and WHEREAS, the City Manager and staff are requesting Council authorization to apply for a grant from "Save America's Treasures"; and WHEREAS, this type of a grant requires a one hundred percent (100%) match which will be sought from the Rasmuson Foundation and other non-City sources; and WHEREAS, if snatching sources are not obtained, the grant will not be used and the City will not incur any costs; and WHEREAS, the State of Alaska appropriated grant funds totaling $65,000 for a historic structure report for the Jesse Lee Home in 2002; and WHEREAS, the historic structure report was produced by ECUHyer, Inc. in conjunction with the City of Seward Jesse Lee Home Advisory Board and was approved by Council Resolution 2003-57; and WHEREAS, the historic structure report can be used as a supporting document for applying for grant money for stabilization and rehabilitation of the structure; and WHEREAS, it is in the best interests of the community to stabilize and preserve the historic properties with which the City of Seward has been entrusted. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: CITY OF SEWARD, ALASKA RESOLUTION 2005-01 Section 1. The City Manager and staff are authorized to apply for a grant from "Save America's Treasures" for the Jesse Lee Home. Section 2. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this loth day of January, 2005, THE CITY OF SE"WARD, ALASKA Vanta Shafer, Ma r AYES: Dunham, Clark, Amberg, Shafer NOES: Valdatta ABSENT: Branson, Lorenz ABSTAIN: None ATTEST: Je Lewi C C ,'1rti:rrittrr.,� City Clerk O. e``,, � "!` 44� a.`., ''+•, (City Seal) `•.C3a 'r'tsna�a.A Council Agenda Statement Meeting Date: January 10, 2005 Through: Phil Shealy, City Manager From: Malcolm G. Brown, Planner Agenda Item: Council authorization to apply for a grant for the Jesse Lee Home from "Save America's Treasures" BACKGROUND & JUSTIFICATION: In 2002 the Alaska State Legislature appropriated $65,000 for the City of Seward for a historic structure report for the Jesse Lee Home, one of the nine properties in Seward which are on the National Register of Historic Places. The historic structure report was prepared by ECl/Hyer, Inc., under the guidance provided through Council by the Jesse Lee Home Advisory Board, which was made up of citizens appointed by Council. The historic structure report was approved by Council Resolution 2003-53 in May of 2003. The report was then forwarded to the Department of Natural Resources (DNR) for presentation to the Legislature in order to obtain subsequent funding for structure stabilization and rehabilitation. Due to State revenue constraints, the State has not been able to provide funding for stabilization during this budget cycle. The Seward Historic Preservation Commission (SHPQ has learned that "Save America's Treasures" is a grant source for historic structures needing stabilization and preservation. The grants are administered by the National Park Service (NPS) in partnership with the National Endowment for the Humanities, the Institute of Museum and Library Services and the President's Committee on the Arts and the Humanities. The minimum grant request for historic property projects is $250,000 for the Federal share, the maximum grant request is $1 million dollars. The grants require a dollar-for-dollar non-Federal match, which can be cash, donated services or use of equipment. The intent is to communicate with the Rasmuson Foundation to see if they will be able to provide a match or locate another entity which can provide matching funds for this type of an activity. If the grant is received and no matches are found, the grant would not be used and the City would not incur any costs. When the City of Seward applied for a grant during the summer of 2004, the grant was not awarded, but a new grant cycle has begun. The grant applications must be received no later than February 1, 2005, and the grant applications must be approved by Council. Diane Kaplan is the President and CEO for the Rasmuson Foundation, and has been enthusiastic about the Jesse Lee Home's prospects for rehabilitation. Staff has kept her apprised of the SHPC's ongoing efforts to publicize the need to rehabilitate the Jesse Lee Home. Staff appreciates the guidance she has given on grant procedures and contacts and also that she also stated that the Rasmuson Foundation is willing to entertain a proposal. It is also hoped that the Rasmuson Foundation might be able to find other sources to match this type of a grant, which is a service they commonly provide. The grant application will build on the structural stabilization recommendations in the historic structure report approved by Council in 2003 and will use the report's cost estimates. The long range goal after stabilization is to: rehabilitate the structure, find a long term user who will develop it in such a manner that it will still be recognized for its historical significance, and have a memorial for the Alaska flag. The portion used for the flag memorial would be a public resource available for ceremonies community events. CONSISTENCY CHECKLIST: Yes No 1. Comprehensive Plan (1990) X The Comprehensive Plan supports saving historic buildings. 2. Strategic Plan (1999) X The Strategic Plan encourages the recognition, rehabilitation and preservation of Historic Sites and Buildings. FISCAL NOTE: Applying for this grant will have no costs to the City other than the staff time. If the grant is received and a donor is not found to provide the match, the grant will not be used and the City will not incur any costs. Approved by Finance Department: RECOMMENDATION: Council approve Resolution 2005-01, authorizing the City Manager and staff to request a grant from "Save America's Treasures" for the Jesse Lee Home.