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Home My WebLink About08112014 City Council Packet Seward City Council Agenda Packet , ,,,,,, .. ,..... ,, 4 0_ , ,:*". 1,,, 4 Ork r itir k II 0 ( « C • Y 1 L . . .• a i l 2014 Student Exchange Kayak Trip August 11, 2014 City Council Chambers Beginning at 7. 00 p.m. • 1963 1965 2005 The City of Seward, Alaska kitrzi CITY COUNCIL MEETING AGENDA Aof stik All-America 1 III' {Please silence all cellular phones and pagers during the meeting} August 11, 2014 7:00 p.m. Council Chambers Jean Bardarson 1. CALL TO ORDER Mayor 2. PLEDGE OF ALLEGIANCE Term Expires 2015 3. ROLL CALL 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE Marianna Keil ITEMS SCHEDULED FOR PUBLIC HEARING [Those who Vice Mayor have signed in will be given the first opportunity to speak Time is Term Expires 2014 limited to 3 minutes per speaker and 36 minutes total time for this agenda item.] Ristine Casagranda 5. APPROVAL OF AGENDA AND CONSENT AGENDA Council Member [Approval of Consent Agenda passes all routine items indicated by Term Expires 2014 asterisk (*). Consent Agenda items are not considered separately unless a council member so requests. In the event of such a request, Christy Terry the item is returned to the Regular Agenda] Council Member Term Expires 2015 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS David Squires A. Proclamations and Awards Council Member Term Expires 2015 1. Presidential Service Awards for Walter Corrigan, Mike Moore, Don Cripps, and Jean Cripps Pg. 4 Dale Butts Council Member B. Borough Assembly Report Term Expires 2014 C. City Manager's Report D. City Attorney's Report Iris Darling E. Other Reports and Presentations Council Member Term Expires 2015 *Appointment Expires 2014 James Hunt City Manager Johanna Kinney City Clerk Eric Wohlforth City Attorney City of Seward, Alaska Council Agenda August 11, 2014 Page 1 7. PUBLIC HEARINGS – None 8. UNFINISHED BUSINESS – None 9. NEW BUSINESS A.Resolutions 1. Resolution 2014-065, Authorizing The City Of Seward To Issue Harbor Improvement Revenue Refunding Bonds, 2014 In The Principal Amount Of Not To Exceed $3,675,000 To Refund Certain Outstanding Harbor Improvement Bonds Of The City, Fixing Certain Details Of Pg. 9 Such Bonds And Authorizing Their Sale, And Providing For Related Matters……………. 2. Resolution 2014-066, Authorizing The City Manager To Accept Legislative Grant #15-DC-144 From The State Of Alaska Department Of Commerce, Community, And Economic Development In The Amount Of $1,300,000 For Dredging And Disposal Of Sludge Pg. 24 Accumulated At The Lowell Point Sewage Lagoon, And Appropriating Funds…………... 3. Resolution 2014-067, Authorizing The City Manager To Accept Legislative Grant #15-DC-145 From The State Of Alaska Department Of Commerce, Community, And Economic Development In The Amount Of $5,900,000 For The Design And Development Of The Seward Marine Industrial Center (SMIC) Including Breakwater Engineering And Construction And Pg. 35 Appropriating Funds………………………………………………………………….…….. 4. Resolution 2014-068, Approving A Short Term Lease Agreement With Raibow Fiberglass And Boat Repair, LLC For Additional Land At The Seward Marine Industrial Pg. 43 Center...................................................................................................................................... 5. Resolution 2014-069, Accepting A Grant In The Amount Of $29,682 From The Alaska Department Of Fish & Game For The Purpose Of Replacing And Improving Sewage Pump Out Facilities At The Seward Small Boat Harbor, Authorizing Matching Funds In The Pg. 50 Amount Of $9,894 And Appropriating Funds Totaling $39,576…………………………… 6. Resolution 2014-070, Authorizing The City Manager To Enter Into A 48-Month Fair Market Value Lease Agreement With Konica Minolta Business Solutions For Seven Pg. 63 Replacement Copiers For A Base Amount Of $1,896.64 Per Month…………………….… B.Other New Business Items *1. Approval of the June 9, 2014 and June 23, 2014 City Council Regular Meeting Pg. 86 Minutes…………………………………………………………………………………….. 10. INFORMATIONAL ITEMS AND REPORTS (No Action Required) Pg. 95 A. June 2014 Providence Seward Medical Center Financial Report…………….. 11. COUNCIL COMMENTS City of Seward, Alaska Council Agenda August 11, 2014 Page 2 12. CITIZEN COMMENTS 13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS 14. ADJOURNMENT City of Seward, Alaska Council Agenda August 11, 2014 3 rr► THE WHITE HOUSE WASHINGTON Congratulations on receiving the President's Volunteer Service Award, and thank you for helping to address the most pressing needs in your community and!our country. In my Inaugural Address, I stated that we need a new era of responsibility- -a recognition on the part of every American that we have duties to ourselves our Nation, and the world. These are duties that we do not grudgingly accept, 'lput rather seize gladly, firm in the knowledge that there is nothing so satisfying to tho spirit than giving our all to a difficult task. Your volunteer service demonstrates the kind of commitment to your community that moves America a step closer to its'great promise. Our Nation faces the most challenging economic crisis in a lifetime. We will only renew America if we all work together. Individuals, the private sector, and government must combine efforts to make real and lasting change so that each person has the opportunity to fulfill his or her potential. While government can open more opportunities for us to serve our communities, it is up to each of us to seize those opportunities. Thank you for your devotion 0 service and for doing all you can to shape a better tomorrow for our great Nation. ea"—C1;)" "" 4 c;ic_,t,,o&y:7,,(\::.., Ammo, "If .,.?;, \:,,„::i * 5 N k O ,k U t\.) • Fz)'40! 0 ,"\ C\ CI) o� o 1\ 1 -c:J k C/1 o ,, t ,\ N 0 N 5 ��p ,,o z 'gi coo ( 1:_-- =***_ 4 p...., N lip 1 V C'. 1 k „. ,N I, ,c4 CD i t....., ,,,, • N t., _.,- i■i V n D Om.J • ct t.11 k c4 Z N 6 Oy , < (.- '.. * '' 41111.111* I g'i * , • (?' \-,4 ,::%, 4 , -Q 4,, R BHA N 5'40! 0 _N'\ CD \ iCz, - ; l_i(7.1 4 i. " ,,,, 0 t s 0 1,-1 ° CD ZQ k N N Q r pci �._. y V1 o \ ,� • N! 6‘.\4N;Q ki% e—t- ''' c1 nz= � � N o rncz I■' '\\ CI) '� 9:7_,-d— —11 .. c,.,' t, ,,,,, 0 c% I.L Z' k IN Z M Z P , kN c . 8 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2014-065 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY OF SEWARD TO ISSUE HARBOR IMPROVEMENT REVENUE REFUNDING BONDS, 2014 IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,675,000 TO REFUND CERTAIN OUTSTANDING HARBOR IMPROVEMENT BONDS OF THE CITY, FIXING CERTAIN DETAILS OF SUCH BONDS AND AUTHORIZING THEIR SALE, AND PROVIDING FOR RELATED MATTERS WHEREAS, the City of Seward, Alaska (the "City") is a home rule city and under Section 11 of Article X of the Alaska Constitution may exercise all legislative power not prohibited by law or the Charter of the City, and it has been determined that the matters set forth in this resolution are not prohibited by law or the Charter; and WHEREAS, there is now outstanding (i) $930,000 principal amount of Harbor Improvement Revenue Bonds, 2005 of the City maturing on or after June 1, 2016 (the "2005 Bond") issued under Resolution No. 2000-094 and Resolution 2005-058 of the City; and (ii) $2,745,000 principal amount of Harbor Revenue Bonds, 2006 of the City, maturing on or after June 1, 2017 (the "2006 Bonds") issued under Resolution 2000-094 and Resolution 2006-05 of the City; and WHEREAS, the Council finds that it is in the best interest of the City to provide for the refunding, including the payment of principal of and interest on, those maturities of the 2005 Bonds and 2006 Bonds (the "Refunded Bonds") refunding of which the City Manager or City Finance Director determines will produce the debt service savings specified in this resolution, by the issuance of Harbor Improvement Revenue Refunding Bonds, in one or more series, in the aggregate principal amount of not to exceed $3,675,000 (the "Bonds"); and WHEREAS, Section 11.2(a) of the home rule Charter of the City provides that the City may issue refunding bonds without ratification of the voters; and WHEREAS, the Council finds that it is necessary and appropriate to delegate to each of the City Manager and City Finance Director authority to determine the maturity amounts, interest rates, and other details of the Bonds, and to determine other matters pertaining to the Bonds that are not provided for in this resolution; and WHEREAS, the Alaska Municipal Bond Bank and the City intend to enter into Amendatory Loan Agreements, which amend the Loan Agreements dated as of October 1, 2005 and June 1, 2006 (the "Loan Agreements") between the Alaska Municipal Bond Bank and the City to provide for the refunding of the Refunded Bonds through their exchange for the Bonds and related matters. 9 CITY OF SEWARD, ALASKA RESOLUTION 2014-065 NOW,THEREFORE, BE IT RESOLVED: Section 1. Definitions. The following terms shall have the following meanings in this resolution: (A) "Amendatory Loan Agreements" means the Amendatory Loan Agreements between the City and the Bond Bank, amending the Loan Agreements to provide for the refunding of the Refunded Bonds through their exchange for the Bonds and related matters. (B) "Bond" or "Bonds" means any of the "Harbor Improvement Revenue Refunding Bonds, 2014" of the City of Seward, the issuance and sale of which are authorized herein. (C) "Bond Bank" means the Alaska Municipal Bond Bank, a public corporation of the State of Alaska. (D) "Bond Bank Bonds" means the General Obligation and Refunding Bonds, 2014 Series One of the Bond Bank. (E) "Bond Register" means the registration books maintained by the Registrar, which include the names and addresses of the Registered Owners of the Bonds or their nominees. (F) "City" means the City of Seward, a municipal corporation of the State of Alaska, organized as a home rule city under Section 11 of Article X of the Alaska Constitution. (G) "City Finance Director" means the Finance Director of the City. (H) "Code" means the Internal Revenue Code of 1986, as amended from time to time, together with all regulations applicable thereto. (I) "Council" means the Council of the City of Seward, as the general legislative authority of the City of Seward, as the same shall be duly and regularly constituted from time to time. (J) "Loan Agreements" means the Loan Agreements, as amended by the Amendatory Loan Agreements. (K) "Refunded Bonds" means the maturities of the 2005 Bonds and the 2006 Bonds, the refunding of which is approved by the City Manager or City Finance Director under Section 12. (L) "Registered Owner" means the person named as the registered owner of a Bond in the Bond Register. (M) "Registrar" means the City Finance Director. (N) "Resolution" means this Resolution of the City. 10 CITY OF SEWARD, ALASKA RESOLUTION 2014-065 Section 2. Authorization of Bonds and Purpose of Issuance. For the purpose of effecting the refunding by exchange of the Refunded Bonds in the manner set forth hereinafter and in the Amendatory Loan Agreements, the City hereby authorizes and determines to issue and sell the Bonds, in one or more series, in the aggregate principal amount of not to exceed $3,675,000. Section 3. Obligation of Bonds. The Pledged Revenues as defined in Resolution 2000- 094 and Resolution 2005-58 are hereby pledged to the payment of the principal of and interest on the Bonds as the same become due and payable. In compliance with Section 13 of Resolution 2005-58, Section 13 of Resolution 2000- 094, if applicable, and Section 13 of Resolution 2006-05, at the time of issuance of the Bonds, a payment will be made in the Reserve Subaccount, for each series of Bonds, created under those resolutions such that the total amount of such payment, together with the money already in the Reserve Subaccount, will be equal to the Reserve Account Requirement. In compliance with Section 16 of Resolution 2005-58 and Section 16 of Resolution 2000-094, if applicable, the City covenants that (i) it will pay into and maintain in the Reserve Subaccount the amount required by said Section 16 to be paid into and maintained in said subaccount; and (ii) it will establish, maintain, and collect Passenger Fees (as defined in Resolution 2000-094 and Resolution 2005- 58) sufficient to meet the same requirements as are contained in subsection (a) of Section 16 of Resolution 2005-58 and, if applicable, Resolution 2000-094. The Bonds are "Future Parity Bonds" which are harbor improvement bonds issued under Resolution 2000-094 and Resolution 2005-58. In accordance with said resolutions, the City pledges that payments to be made out of the Pledged Revenues into the Bond Account and Reserve Subaccount to pay and secure the payment of the principal of and interest on the Bonds are and will be on a parity with the payments required by said resolutions to be made out of such Pledged Revenues into such Bond Account and Reserve Subaccount. The Bonds are issued under Section 16(b) of Resolution 2005-58 and Section 16(b) of Resolution 2000-094, if applicable. The issuance of the Bonds, for each series of Bonds, does not require a greater amount to be paid out of Pledged Revenues for principal and interest over the life of the Refunded Bonds, and the other conditions required in said sections are met. Section 4. Designation, Maturities, Interest Rates, and Other Details of Bonds. The Bonds shall be designated "City of Seward, Alaska, Harbor Improvement Revenue Refunding Bonds, 2014 Series (A)(B)" with the additional designation provided under Section 12. The Bonds shall be in the denomination of$5,000 or any integral multiple thereof, shall be numbered separately in the manner and with such additional designation as the Registrar deems necessary for purposes of identification, and may have endorsed thereon such legends or text as may be necessary or appropriate to conform to the rules and regulations of any governmental authority or any usage or requirement of law with respect thereto. The Bonds shall bear interest from their date, payable semi-annually in each year. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. 11 rr► CITY OF SEWARD, ALASKA RESOLUTION 2014-065 The dated date, the principal and interest payment dates, the aggregate principal amount, the principal amount of each maturity, and the interest rates on the Bonds shall be determined at the time of execution of the Amendatory Loan Agreements under Section 16. Section 5. Redemption. The Bonds may be redeemed as provided in the Amendatory Loan Agreements. Section 6. Form of Bond. Each Bond shall be in substantially the following form, with such variations, omissions and insertions as may be required or permitted by this Resolution: UNITED STATES OF AMERICA STATE OF ALASKA CITY OF SEWARD (A Municipal Corporation of the State of Alaska) NO. $ HARBOR IMPROVEMENT REVENUE REFUNDING BOND, 2014 SERIES (A)(B) REGISTERED OWNER: PRINCIPAL AMOUNT: The City of Seward (the "City"), a municipal corporation of the State of Alaska, hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or its registered assigns, the Principal Amount indicated above in the following installments on [ 1] of each of the following years, and to pay interest on such installments from the date hereof, payable on [ 1, 20 ] and semiannually thereafter on the 1st days of and of each year, at the rates per annum as follows: Maturity Principal Interest Date Amount Rate For so long as this Bond is owned by the Alaska Municipal Bond Bank (the "Bond Bank"), payment of principal and interest shall be made as provided in the Loan Agreements between the Bond Bank and the City, dated as of October 1, 2005 [June 1, 2006], as amended by the Amendatory Loan Agreement dated , 2014 (the "Loan Agreements"). In the event that this Bond is no longer owned by the Bond Bank, installments of principal and interest on this Bond shall be paid by check or draft mailed by first class mall to the Registered Owner as of the close of business on the fifteenth day of the month preceding 12 CITY OF SEWARD, ALASKA RESOLUTION 2014-065 each installment payment date; provided that the final installment of principal and interest on this Bond shall be payable upon presentation and surrender of this Bond by the Registered Owner at the office of the Registrar. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. Both principal of and interest on this Bond are payable in lawful money of the United States of America which, on the respective dates of payment thereof, shall be legal tender for the payment of public and private debts. This Bond is one of the Harbor Improvement Revenue Refunding Bonds, 2014 Series (A)(B) of the City of Seward, Alaska, of like tenor and effect except as to interest rate, serial number and maturity, aggregating $ in principal amount, and constituting Bonds authorized for the purpose of refunding certain general obligation bonds issued by the City, and is issued under Resolution 2014- of the City entitled: A RESOLUTION AUTHORIZING THE CITY OF SEWARD TO ISSUE HARBOR IMPROVEMENT REVENUE REFUNDING BONDS, 2014 IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,675,000 TO REFUND CERTAIN OUTSTANDING HARBOR IMPROVEMENT BONDS OF THE CITY, FIXING CERTAIN DETAILS OF SUCH BONDS AND AUTHORIZING THEIR SALE AND PROVIDING FOR RELATED MATTERS (the "Resolution"). This Bond maturing on or after 1, , may be called for redemption by the City on any date on and after 1, as provided in the Amendatory Loan Agreements. This Bond is transferable as provided in the Resolution, (i) only upon the bond register of the City, and (ii) upon surrender of this Bond together with a written instrument of transfer duly executed by the registered owner or the duly authorized attorney of the registered owner, and thereupon a new fully registered Bond or Bonds in the same aggregate principal amount and maturity shall be issued to the transferee in exchange therefor as provided in the Resolution and upon the payment of charges, if any, as therein prescribed. The City may treat and consider the person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price, if any, hereof and interest due hereon and for all other purposes whatsoever. This Bond is a special limited obligation of the City of Seward, payable as the principal and interest hereon become due solely from Pledged Revenues as the term is defined in Resolution 2000-094 and Resolution 2005-58 of the City. Neither full faith or credit of the City are pledged for the payment of the principal 13 CITY OF SEWARD, ALASKA RESOLUTION 2014-065 of and interest on the Bond nor is this Bond payable from any tax revenues of the City. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts or things required by the constitution or statutes of the State of Alaska and the home rule Charter of the City to exist, to have happened or to have been performed precedent to or in the issuance of this Bond exist, have happened and have been performed, and that the series of Bonds of which this is one, together with all other indebtedness of the City, is within every debt and other limit prescribed by said constitution, statutes, or Charter. IN WITNESS WHEREOF, THE CITY OF SEWARD, ALASKA, has caused this Bond to be signed in its name and on its behalf by the manual or facsimile signature of its Mayor and its corporate seal (or a facsimile thereof) to be impressed or otherwise reproduced hereon and attested by the manual or facsimile signature of its Clerk, all as of the day of 2014. Jean Bardarson, Mayor ATTEST: Johanna Kinney, CMC, City Clerk [SEAL] Section 7. Execution. The Bonds shall be executed in the name of the City by the Mayor or his designee, and its corporate seal shall be impressed or otherwise reproduced thereon and attested by the City Clerk. The execution of a Bond on behalf of the City by persons who at the time of the execution are duly authorized to hold the proper offices shall be valid and sufficient for all purposes, although any such person shall have ceased to hold office at the time of authentication of the Bond or shall not have held office on the date of the Bond. Section 8. Payment of Principal and Interest. The Bonds shall be payable in lawful money of the United States of America which at the time of payment is legal tender for the payment of public and private debts. As long as the Bond Bank is the Registered Owner of the Bonds, payment of principal and interest on the Bonds shall be made as provided in the Loan Agreements. If the Bond Bank is no longer the Registered Owner of the Bonds, installments of principal and interest on the Bonds shall be paid by check mailed by first class mail to the Registered Owner as of the fifteenth day of the month preceding each installment payment date at the address appearing on the Bond Register; provided that the final installment of principal 14 CITY OF SEWARD, ALASKA RESOLUTION 2014-065 and interest on a Bond shall be payable upon presentation and surrender of the Bond by the Registered Owner at the office of the Registrar. Section 9. Registration. The Bonds shall be issued only in registered form as to both principal and interest. The City designates the City Finance Director as Registrar for the Bonds. The Registrar shall keep, or cause to be kept, the Bond Register at the principal office of the City. The City covenants that, until all Bonds have been surrendered and canceled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. The City and the Registrar may treat the person in whose name any Bond shall be registered as the absolute owner of such Bond for all purposes, whether or not the Bond shall be overdue, and all payments of principal of and interest on a Bond made to the Registered Owner thereof or upon its order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City nor the Registrar shall be affected by any notice to the contrary. Section 10. Transfer and Exchange. Bonds shall be transferred only upon the books for the registration and transfer of Bonds kept at the office of the Registrar. Upon surrender for transfer or exchange of any Bond at such office, with a written instrument of transfer or authorization for exchange in form and with guaranty of signature satisfactory to the Registrar, duly executed by the Registered Owner or the duly authorized attorney of the Registered Owner, the City shall execute and deliver an equal aggregate principal amount of Bonds of the same maturity of any authorized denominations, subject to such reasonable regulations as the City may prescribe and upon payment sufficient to reimburse it for any tax, fee or other governmental charge required to be paid in connection with such transfer or exchange. All Bonds surrendered for transfer or exchange shall be canceled by the Registrar. Section 11. Bonds Mutilated, Destroyed, Stolen or Lost. Upon surrender to the Registrar of a mutilated Bond, the City shall execute and deliver a new Bond of like maturity and principal amount. Upon filing with the Registrar of evidence satisfactory to the City that a Bond has been destroyed, stolen or lost and of the ownership thereof, and upon furnishing the City with indemnity satisfactory to it, the City shall execute and deliver a new Bond of like maturity and principal amount. The person requesting the execution and delivery of a new Bond under this section shall comply with such other reasonable regulations as the City may prescribe and pay such expenses as the City may incur in connection therewith. Section 12. Designation of Refunded Bonds. The City Manager and the City Finance Director each is authorized to designate which maturities of 2005 Bonds and 2006 Bonds authorized to be refunded in this Resolution shall be refunded, provided that the refunding of the 2005 Bonds and 2006 Bonds so designated shall realize a reasonable debt service savings, net of all issuance costs and underwriting discount, on a present value basis. The City Manager and City Finance Director each is authorized to further designate the Bonds "Series A" for Bonds deemed in the designation to refund maturities of the 2005 Bonds and "Series B" for Bonds deemed in the designation to refund maturities of the 2006 Bonds. 15 CITY OF SEWARD, ALASKA RESOLUTION 2014-065 Section 13. Tax Covenants. The City covenants to comply with any and all applicable requirements set forth in the Code in effect from time to time to the extent that such compliance shall be necessary for the exclusion of the interest on the Bonds from gross income for federal income tax purposes. The City covenants that it will make no use of the proceeds of the Bonds which will cause the Bonds or the Refunded Bonds to be "arbitrage bonds" subject to federal income taxation by reason of section 148 of the Code. The City covenants that it will not take or permit any action that would cause the Bonds to be "private activity bonds" as defined in Section 141 of the Code. Section 14. Amendatory and Supplemental Resolutions. (A) The Council from time to time and at any time may adopt a resolution or resolutions supplemental hereto, which resolution or resolutions thereafter shall become a part of this resolution, for any one or more of the following purposes: (1) To add to the covenants and agreements of the City in this Resolution, other covenants and agreements thereafter to be observed, or to surrender any right or power herein reserved to or conferred upon the City. (2) To make such provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective provision contained in this Resolution or in regard to matters or questions arising under this Resolution as the Council may deem necessary or desirable and not inconsistent with this Resolution and which shall not adversely affect the interests of the Registered Owners of the Bonds. Any such supplemental resolution may be adopted without the consent of the Registered Owner of any of the Bonds at any time outstanding, notwithstanding any of the provisions of subsection (B) of this section. (B) With the consent of the Registered Owners of not less than 60 percent in aggregate principal amount of the Bonds at the time outstanding, the Council may adopt a resolution or resolutions supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Resolution or of any supplemental resolution; provided, however, that no such supplemental resolution shall: (1) Extend the fixed maturity of any of the Bonds, or reduce the rate of interest thereon, or extend the time of payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the Registered Owners of each Bond so affected; or (2) Reduce the aforesaid percentage of Registered Owners of Bonds required to approve any such supplemental resolution without the consent of the Registered Owners of all of the Bonds then outstanding. 16 CITY OF SEWARD, ALASKA RESOLUTION 2014-065 It shall not be necessary for the consent of the Registered Owners of the Bonds under this subsection to approve the particular form of any proposed supplemental resolution, but it shall be sufficient if such consent approves the substance thereof. (C) Upon the adoption of any supplemental resolution under this section, this Resolution shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations under this Resolution of the City and all Registered Owners of outstanding Bonds shall thereafter be subject in all respects to such modification and amendment, and all the terms and conditions of the supplemental resolution shall be deemed to be part of the terms and conditions of this Resolution for any and all purposes. (D) Bonds executed and delivered after the execution of any supplemental resolution adopted under this section may bear a notation as to any matter provided for in such supplemental resolution, and if such supplemental resolution shall so provide, new Bonds modified so as to conform, in the opinion of the City, to any modification of this Resolution contained in any such supplemental resolution may be prepared by the City and delivered without cost to the Registered,Owners of the Bonds then outstanding, upon surrender for cancellation of such Bonds in equal aggregate principal amounts. Section 15. Defeasance. In the event money and/or non-callable direct obligations of, or obligations the timely payment of principal of and interest on which are unconditionally guaranteed by, the United States of America or an agency or instrumentality of the United States of America, maturing at such times and bearing interest to be earned thereon in amounts sufficient to redeem and retire any or all of the Bonds in accordance with their terms are set aside in a special trust account to effect such redemption or retirement and such moneys and the principal of and interest on such obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made to pay or secure the payment of the principal of and interest on such Bonds and such Bonds shall be deemed not to be outstanding. Section 16. Exchange of Bonds; Amendatory Loan Agreements. The Bonds shall be delivered to the Bond Bank in exchange for the Refunded Bonds. The City has been advised by the Bond Bank that bond market conditions are fluctuating and that the most favorable market conditions for the sale of the Bond Bank Bonds may not occur on the date of a regular Council meeting. The Council has determined that it would be inconvenient to hold a special meeting on short notice to approve the terms of the Bonds. Therefore, the Council hereby determines that it is in the best interest of the City to delegate the authority to approve the terms of the Bonds as provided herein. Each of the City Manager and the City Finance Director is hereby authorized to determine the aggregate principal amount, maturity amounts, interest rates, yields, dated date, principal and interest payment dates, and redemption terms, if any, for the Bonds, so that such terms of the Bonds conform to the terms of the corresponding Bond Bank Bonds; provided that (i) the principal amount of each maturity of the Bonds shall not exceed the principal amount of the portion of the corresponding maturity of the Bond Bank Bonds that is allocated to the making of a loan to the City; and (ii) the interest rate on each maturity of the Bonds shall not exceed the interest rate on the corresponding maturity of the Bond Bank Bonds. Based upon the foregoing determinations, the City Manager and the City Finance Director each is authorized to negotiate 17 CITY OF SEWARD, ALASKA RESOLUTION 2014-065 and execute Amendatory Loan Agreements in the forms submitted to and part of the records of this meeting. The authority granted to the City Manager and City Finance Director by this section shall expire 180 days after the effective date of this Resolution. If the City Manager or City Finance Director has not executed Amendatory Loan Agreements within 180 days from the effective date of this Resolution, the Amendatory Loan Agreements may not be executed on behalf of the City without further authorization from the Council. Section 17. Official Statement. The information in a preliminary Official Statement relating to the City and the Bonds may be modified as the City Manager or City Finance Director may determine. If required by the Bond Bank, the City Manager and City Finance Director each is hereby authorized to approve the form of the preliminary and the final Official Statement for the Bond Bank Bonds as each pertains to the City and the Bonds. Section 18. Authority of.Officers. The Mayor, the City Manager, the City Finance Director, and the City Clerk are, and each of them hereby is, authorized and directed to do and perform all things and determine all matters not determined by this Resolution, to the end that the City may carry out its obligations under the Bonds and this Resolution. Section 19. Miscellaneous. (A) All payments made by the City of, or on account of, the principal of or interest on the Bonds shall be made on the several Bonds ratably and in proportion to the amount due thereon, respectively, for principal or interest as the case may be. (B) No recourse shall be had for the payment of the principal of or the interest on the Bonds or for any claim based thereon or on this Resolution against any member of the Council or officer of the City or any person executing the Bonds. The Bonds are not and shall not be in any way a debt or liability of the State of Alaska or of any political subdivision thereof, except the City, and from the Pledged Revenues as stated on the Bonds, and do not and shall not create or constitute an indebtedness or obligation, either legal, moral or otherwise, of said state or of any political subdivision thereof, except the City, and from the Pledged Revenues as stated on the Bonds. Section 20. Continuing Disclosure. The City acknowledges that, under Rule 15c2-12 of the Securities and Exchange Commission (the "Rule"), the City may now or in the future be an "obligated person" with respect to bonds issued by the Bond Bank. In accordance with the Rule and as the Bond Bank may require the City shall enter into a continuing disclosure agreement and undertake to provide certain financial information and operating data as set forth in the Amendatory Loan Agreements. Notwithstanding any other provision of this Resolution, failure of the City to comply with the continuing disclosure agreement shall not be considered a default of the City's obligations under this Resolution or the Bonds; however, the beneficial owner of any Bond or Bond Bank Bond may bring an action for specific performance, to cause the City to comply with its obligations under this section. 18 CITY OF SEWARD, ALASKA RESOLUTION 2014-065 Section 21. Severability. If any one or more of the provisions of this Resolution shall be declared by any court of competent jurisdiction to be contrary to law, then such provision shall be null and void and shall be deemed separable from the remaining provisions of this Resolution and shall in no way affect the validity of the other provisions of this Resolution or of the Bonds. Section 22. Effective Date. This Resolution shall take effect 30 days following adoption by the Seward City Council. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 11th day of August, 2014. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC, City Clerk (City Seal) 19 Agenda Statement Meeting Date: August 11, 2014 o To: Seward City Council P Through: Jim Hunt, City Manager From: Kristin Erchinger, Finance Director 'M' Agenda Item: Refunding 2005 and 2006 Harbor Revenue Bonds BACKGROUND & JUSTIFICATION: On June 27, 2005, the Seward City Council approved Resolution 2005-058 authorizing the issuance of$1.5 Million in Harbor Revenue bonds for the purpose of extending E, F and J Floats, and moving the fuel float and X Float. The outstanding balance of that bond is $1,005,000. Approximately $75,000 of this bond will not be refunded. On January 9, 2006, the City Council approved Resolution 2006-05 authorizing the issuance of $4.5 Million in Harbor Revenue bonds for the purpose of constructing the new south harbor floats (M, N, 0, P, Q) and upland amenities. The outstanding balance of that bond is $2,615,000. Approximately $425,000 of this bond will not be refunded. The goal of refunding is to realize net present value savings from refinancing the bonds. According to IRS regulations, bonds may only be advance refunded once, so it is important to carefully choose the timing of the refunding to ensure that we do not miss out on additional potential savings which may come from postponing a refunding. The Alaska Municipal Bond Bank has invited the City of Seward to participate in a bond refunding, based on current market conditions and the potential to achieve an estimated $228,595 net present value ("NPV") savings ($79,646 from refunding the 2005 Bonds and $148,949 from refunding the 2006 Bonds), net of all costs. The intent is to issue the new bonds for the same approximate maturity as the old bonds, with the exception that maturities must be extended four months to sync up the bond payment schedule with the other participants in the bond issue. The 2005 bonds will mature in October 2025 and the 2006 bonds will mature in October 2026. The City utilized the services of its financial advisor, Don Grimes, to analyze the wisdom of the timing of the refunding. A summary of Mr. Grimes' analysis is attached, with a strong recommendation to proceed with the refinancing. Generally, the City will look favorably upon a refunding when it can achieve a NPV savings of at least 3%. In this case, the refunding is expected to achieve a NPV savings of 9.2% for the 2005 Bonds and 5.7% for the 2006 Bonds, making them good candidates for refunding. INTENT: To refund the 2005 and 2006 Harbor Bonds in order to reduce the lifetime cost of debt service. 20 CONSISTENCY CHECKLIST: No N/A I Comprehensive Plan (document source here): um 2. Strategic Plan (document source here): IIIIIIII Other (list): Resolution 2000-94, Resolution 2005-58 and Resolution I 2006-05. n FISCAL NOTE: The combined savings of this refunding is $228,595, which results service savings of approximately $22,859. Savings will benefit the Harbor Enters in annual and improve the ability of the harbor to finance replacement the older float systems in rise Fund basin. he harbor Approved by Finance Department: je2t ATTORNEY REVIEW: Yeses_No RECOMMENDATION: Approve Resolution 2014- CAPS authorizing Improvement Revenue Refunding Bonds in the principal amount not t exceed $3,675,000.Harbor 21 Kris Erchin er Don Grimes <dgrimes07 @centurylink.net> From: Sent: Monday,August 04, 2014 9:44 PM To: Kris Erchinger Cc: bill @blitchassociates.com Subject: Re: Refunding Proposal Kris,here are my thoughts on the proposed advance refunding of a portion of your 2005 and 2006 Harbor Bonds through the Alaska Muncipal Bond Bank (AMBB): 1) You are correct that under IRS regulations you are only allowed one advance choose heding(through establishing an escrow account prior to optional call date) so it is important to carefully ative arbitrage as 2)Due to the period of time left before the various optional call substantial nt ere t Cos on the proposed the earning potential of the escrow securities is significantly lower than the True refinancing. According to these numbers run by the Bond Bank,the value of your negative arbitrage will be approximately $137,718 to the various optional call dates. 3) However, due to the very attractive True Interest Cost on the new bonds(currently estimated at be able to net really approximately 2.173% on the 2005 bonds and 2.415% 02006 his amount is net of all costs of issuance and good net present value savings currently estimated at$228,595. the estimated negative arbitrage. 4) While negative arbitrage could likely be reduced by waiting closer to the optional call dates, if the offering rates on the new bonds goes up during that time due to market conditions (and we probably can all agree that rates are more likely to go up than down), you might not achieve any greater net present value savings taking all factors into account. 5) Your proposed net present value savings as a percent of issuance is remarkably high - about 9.208% 2005 issue and about 5.696% on the larger 2006 issue. A general rule of thumb used by many issuers is to achieve at least a 3%net present value savings in order to proceed. Clearly these savings are impressive. 6) Your proposed savings are net of all issuance costs so the City should not be out any front-end costs out-of- pocket. I strongly recommend that you proceed with this refinancing, keeping in mind that if net savings do not meet your expectations when you get ready to price the bonds, you can hold off until you are satisfied that the time is right. Once all the preparations are done such as Official Statement and so forth, you can always fine tune the market timing or how to structure the savings to the City. However, with so many issuers planning to participate (Municipality of Anchorage, Haines, Kenai Peninsula Borough,Nome,Northwest Artie Borough, Petersburg, and Seward), it limits the flexibility to some extent. There are economies of scale at play in this combined financing by AMBB and these economies are reflected in the savings. As always, it is a pleasure working with you and the City of Seward and Eric Wohlforth. I have served the City and worked closely with Eric since 1981 in the capacity of Financial Advisor on many bond issues. Since retiring from Wells Fargo Brokerage Services in 2009, I have been associated with Blitch Associates, Inc. in Houston, Texas. Our website at blitchassociates.com gives a description of the firm and resumes of the 22 principals. Mine includes mention of financings done for the City of Seward if ou would council members information on me or my firm. Y uld like to give any of I will be available by teleconference at any time and plan to make a visit to the City of of this financing or immediately after the closing in Seattle. Thank you for allowin g me the privilege of working work with you again. Y Seward during the course Sincerely, Don W. Grimes Senior Vice President Mitch Associates, Inc. 850-925-4796 (land line) 850-570-8528 (cell phone) d rimes07 centur linlc.net Home Office of Blitch Associates, Inc. 11111 Katy Freeway, Suite 820 Houston, Texas 77079-2118 Phone 713-467-7344 www.blitchassociates.com Spam Nstsparn Forget previous vote 23 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2014-066 A RESOLUTION OF THE CITY COUNCIL MANAGER OF SE WARP ALASKA, AUTHORIZING THE CITY LEGISLATIVE GRANT #15-DC-144 FROM THE SATE F ALASKA DEPARTMENT OF COMMERCE, COMM DEVELOPMENT IN THE AMOUNT OF$1,300,0x0 THE LOWS L DREDGING N SEWAGE LAGOON, D DISPOSAL OF SLUDGE ND APPROPRIATING FUNDS WHEREAS, the City has issued an Invitation to Bid for removal and ; a dposal of accumulated sludge at the Lowell Point Wastewater Treatment Facility WHEREAS,the Alaska State Legislature awarded the City$1,300,000 towards the sludge removal/disposal project; and WHEREAS,without accepting these grant funds, the sludge removal/disposal project will exceed the amount of funds that the City currently has available; and WHEREAS, Legislative capital project appropriations ev men t Division of Community and Department of Commerce, Community and Economic Development, Regional Affairs' (DCCED/DCRA), and Legislative Grant #15-DC-144 describes the terms and conditions of the award; and WHEREAS,Council acceptance and appropriation of these funds is necessary to spend State Legislative funding on this project. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council hereby accepts grant #15-DC-144 from the State of Alaska Department of Commerce and Economic Development, Division of Regional Affairs, Designated Legislative Grant in the amount of $1,300,000 for the purpose of construction management, construction and contract services related to the LPWWTF Sludge Removal/Disposal Project. Section 2. The City Manager is hereby authorized to execute a grant agreement with the State of Alaska Department of Commerce,ant#15 DC-144,which require es nDevelopment, matrCommunity and Regional Affairs for grant matching funds from the City of Seward. Section 3. Funding in an amount not to exceed$1,300,000 is hereby appropriated from the State Grant Revenue account no. 18321-0000-5922, as follows: 1) $1,181,818 to contract services 24 CITY OF SEWARD, ALASKA RESOLUTION 2014-066 account no. 18321-0000-7009;and$118,182 to project overhead account no. 18321-0000-7305. The amount of$118,182 is appropriated to the General Fund project management account no. 01000- 0000-4310. . Section 4. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 11th day of August, 2014. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 25 Agenda Statement Meeting Date: August 11, 2014 C \' To: City Council 1LAswP Through: Jim Hunt, City Manager From: W.C. Casey, Public Works Director Agenda Item: Accepting and Appropriating State Legislative Capital Grant Awarded for Lowell Point Sludge Removal/Disposal BACKGROUND & JUSTIFICATION:, Operational challenges,regarding compliance with the Lowell Point Wastewater Treatment Facility (LPWWTF)Alaska Pollutant Discharge Elimination System(APDES)Permit,have necessitated the removal/disposal of grit and sludge from the LPWWTF.This project has been in the planning stages for 2 years,and only recently,have sufficient funding levels made the project feasible.To be fiscally responsible,the SMIC lagoon(also needing sludge removed)has also been included in the scope of work,as a separate project. The necessary ADEC approval/permitting has been a slow process,due in part to recent regulatory changes,and challenges created by SMIC lagoon design and the special considerations necessary for continued operation of the State of Alaska Maximum Security Prison. In 2014 the Alaska Legislature approved a$1,300,000 Designated Legislative Capital Project Grant for: "Dredge/Dispose of Sludge Accumulating at Lowell Point Sewage Lagoon".This$1.3 Million Legislative funding will be in addition to the $500,000 the City has appropriated for the project, as well as a portion of the$1.2 million Alaska Clean Water Fund Loan that the City is applying for(the City has submitted a project questionnaire).Council acceptance and appropriation of funds provided by the Legislative Grant is required to move forward with this project. INTENT: The intent of this resolution is to supplement funding from the City ($500,000) and the ACWF potential Loan funding($1,200,000),with this$1,300,000 Legislative Grant(15-DC-144),to ensure funding sufficient to complete the project. Receipt of loan funds is not guaranteed. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): x 2. Strategic Plan (document source here): x 3. Other (list): Wastewater Facilities Operation&Maintenance Plan x 26 FISCAL NOTE: This grant provides$1.3 Million for Sludge Removal/Disposal at the Lowell Point Lagoon,and does not require matching funds from the City. The City expects to require additional funding for this project,as the estimated project cost is in excess of$2.3 Million. The contract award for this project will come before Council for approval. Approved by Finance Department: ATTORNEY REVIEW: Yes No X RECOMMENDATION: Approve Resolution 2014- 00.1 authorizing the City Manager to Accept State of Alaska Legislative Grant no. 15-DC-144, and appropriating funds. 27 immirimolor N,O 9.fjt A��\I'//�4 � ■), THE STATE Department of Commerce, Community, Inc Economic Development 1,,,,... A........ , ofT 1 .. x.1-1 ,. , DIVISION OF COMMUNITY AND REGIONAL AFFAIRS ?fi _ P.O.Box 110809 1, ' , GOVERNOR SEAN PARNELL Juneau,Itiiaska99811 0II09 Main:907-465-4731 ��' 1LR` a TDD:907-465-5437 At�,8 .�� j� Fax:907-465-5867 June 20, 2014 City of Seward Jean Bradarson,Mayor PO Box 167 Seward,AK 99664 RE: 2015 Designated Legislative Grant Dear Mayor Bradarson: I am pleased to notify you the City of Seward has been appropriated 2 FY 2015 Designated Legislative Grants per AS 37.05.315, Grants to Municipalities. Listed below are the grant projects and award amounts: Grant Number Project Name Award Amount Dredge/Dispose of Sludge Accumulating at Lowell Point Sewage 15-DC-144 Lagoon ^ $1.300,000.00 15-DC-145 Marine Expansion Including Breakwater $5,900,000.00 In order to receive grant funds, a grant agreement must be executed for each award. Please provide the following information within 30 days: • A scope of work for each project which includes a brief description, proposed timeline and budget narrative. Enclosed are the Total Project Snapshots (TPS) for your reference. • Completed Signatory Authority Form Upon receipt of the requested information,I will prepare and send the grant agreements for signature. A copy of the latest.Designated Legislative Grantee Handbook is enclosed for your convenience. All grantees are encouraged to review the handbook as it contains new information. The handbook is also available online at: http://commerce.alaska.gov/dnn/dca:a/GrantsSection/DI.G-t:ants.aspx Congratulations on these awards. I look forward to working with you to ensure the success of each project. If you have any additional questions, please contact me via phone at (907) 465-4731 or email robin.park@alaska.gov. Sincerely, ""--- 4044,Lift:7_, Robin Park Grants Administrator. 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L.., i -°• 3 3 1 o OJ • 2 4, ',. E*5•-4 a 1;2 g.. ci :-` ,•' ," •.•:, '',,,, ,,••:, in I.; it," 1 of ii:: ,,,,,..,, 1 4, ,8 •e• S 3 F, P- li at :' w '.'22, .•._..,.,, 0 --. o - • - > i. P •,E, o 'g al •-',:- 1 1 ... ,t g g g g g ..,........ , -t --• .-J m ,' Z i•'-'3 ,...', ,e;', 9 1-- ag -:,- ..„,--- ..,...... .,.. cis ..,, 92 7^,, r: ;3 gl ..-, 2 2 ic-j a 92 ct, 4,- EP i Fi 7. z.1 . .... c-z.. ::... ,..; ,-,..,-;, '..„,......:.._.:. 2% f S , • z: (1, 0 :. .a.; c. • al m i ... _ „..„ ... —..-- LI : rl , :5 7! 4 2 73 P '-:, ") ' 2. . •-:g ii. -:,1 1.-'.••,•-?: k 5) ?,..« ..—__......_ 29 irimormimmow THE TATE � Coriservaleor i )T 1c .2 Pr<s i a r (: GOVERNOR GOVERNO k E'F ..x A,,Nini. 5.75 Co:'dova G °3P. @ .,`ncric') .z' AJ<a,:;9;;;;;;+1-26,17 �4L tM'c r:c07.269 7532 "ax:r D7 334.241 t1 ,,.atcs:;c1 !C )*:l'-iic-ce/ltlo?h.htm Certified Mail 7012 1010 0003 0389 9569 Mr.W.C. Casey City of Seward PO. Box 167 Seward,Alaska 99664 NOTICE OF'VIOLATION. AS 46.03.050 Authority: The Department has jurisdiction to prevent and abate the pollution of the waters of the state. AS 46.03.020 Department Powers: The Department has the power to enter into contracts and compliance agreements necessary or convenient to carry out the functions,powers,and duties of the department. AS 46.03.710 Pollution Prohibited: A person may not pollute or add to the pollution of the air,land, subsurface land,or water of the state. division of Water 18 AAC 83.405(b) Duty to Comply: A permittee shall comply with all conditions of that permittee's APDES permit. Any permit non- compliance constitutes a violation of 33 U.S.C. 1251 — 1387 (Clean Water Act) and this chapter and is grounds for an enforcement action including termination,revocation and reissuance,or modification of a permit or denial of a permit renewal application. Division aA ,QRaitt 18 AAC 50.110: No person may permit any emission which is injurious to human health or welfare, animal or plant life,or property,or which would unreasonably interfere with the enjoyment of life or property. SUBJECT:The Department of Environmental Conservation is transmitting the enclosed Notice of Violation (Notice) to City of Seward,located in Seward,Alaska, for alleged violations that occurred at the Lowell Point Wastewater Treatment Facility,Enforcement Tracking No. 14-0014-40-0001. 30 Dear Mr. Casey: This Notice alleges violations of water and air State statutes and regulations. Division of Water The Department of Environmental Conservation (DEC) alleges that on or about July 18,2013, the City of Seward(Permittee) unlawfully violated terms of Alaska Pollutant Discharge Elimination System (APDES) permit number AK0021890 issued for the Lowell Point Wastewater Treatment Facility (Facility)located at 13910 Lowell Point Road, Seward,Alaska. The information below supports these allegations. On July 18, 2013, Division of Water (DOW) DEC Enforcement Officer Stephanie Mann performed an inspection of the Facility.At the time of the inspection, a violation for dissolved oxygen (DO) had been noted on the June 2013 discharge monitoring report. Since the DEC inspection conducted on July 18, 2013, the Permittee has subsequently exceeded the monthly effluent violations for DO and fecal coliform,as well as the monthly percent removal limitation for Total Suspended Solids (TSS)in October 2013. The following APDES permit violations are identified. 1. As set out in permit condition 1.2.1: The permittee must limit and monitor discharges from Outfall 001 as.specified in Table 2A and Table 2B.All values represent maximum effluent limits unless otherwise indicated. The permittee must comply with effluent limits in the tables at all times unless otherwise indicated, regardless of monitoring frequenry or reporting required by other provisions of this permit. Violation:Between June 2013 and October 2013 permit violations were reported on Discharge Monitoring Reports. Table 1 provides a summary of the violations. Table 1. Summary of Violations Date: Parameter Facility Reported Permit Limit: I Value: v June 2013 Dissolved Oxygen 4 mg/1 >=6 mg/1 July 2013 Fecal Coliform 53,441 <=37,500 Weekly Geometric Mean #/100m1 #/100m1 July 2013 Fecal Coliform 119,000 <=50,000 Daily Maximum #/100m1 #/100m1 July 2013 Fecal Coliform 53,441 <=25,000 Monthly Geometric Mean #/100m1 #/100m1 July 2013 Dissolved Oxygen 2.2 mg/1 >=6 mg/1 August 2013 Fecal Coliform 86,300 <=50,000 Daily Maximum #/100m1 #/100m1 31 r August 2013 Dissolved Oxygen 2.3 mg/1 >=6 mg/1 September 2013 Fecal Coliform 35,944 <=25,000 Monthly Geometric Mean #/100m1 #/100m1 September 2013 Dissolved Oxygen 3.1 mg/1 >=6 mg/1 October 2013 Solids Percent Removal 79% >=85% October 2013 Dissolved Oxygen 5 mg/1 >=6 mg/1 2. As set out in Standard Permit Conditions,Appendix A, 3.4,Twenty-Four Hour. Reporting. A permittee shall report any noncompliance event that may endanger health or the environment as follows: 3,4.1.1 Orally within 24 hours after the permittee becomes aware of the circumstances,and 3.4.1.2. In writing five days after the permittee becomes aware of the circumstances. Violation:as of the date of this Notice, DEC has not received 24-hour oral or five-day written reports of non-compliance events from the Permittee regarding any violations associated with the Facility. Division of Air Quality On September 4, 2013,DEC Air Permits Program (APP)received a complaint of offensive odors attributed to the Facility. Since that initial complaint until January 15,2014, DEC received 28 additional complaints from 20 different individuals in the Seward area. Each complaint referenced odors coming from the Facility. On September 9, 2013,DEC APP inspector Andrew Mohrmann spoke with City of Seward Public Works Director William Casey. Mr. Casey acknowledged there had been an unusually strong odor coming from the lagoon and cited a number of factors that could be contributing to the problem. These factors included the lack of sludge removal,possible maintenance issues with the blowers, and a combination of unusually warm weather and high organic loading. Mr. Casey also mentioned the possibility that the lagoon is undersized to handle the influx of wastewater generated in the summer months. On October 17,2013,DEC APP issued an advisory letter to the City regarding the Facility complaints received to date and cited violations of Air Quality regulation 18 AAC 50.110.Although odors are not defined as an air pollutant,wastewater treatment plant emissions,notably reduced sulfur compounds and some volatile organic compounds,have odors that may be objectionable at higher concentrations. On November 1, 2013, the City responded to the advisory letter with a list of potential Facility projects that would help mitigate the odor problem.The list included project descriptions and costs but included no timeline or commitment for action. The following Air Quality Violation is identified: 1. 18 AAC 50.110-No person may permit any emission which is injurious to human health or welfare, animal or plant life, orproperV, or which would unreasonaby interfere with the enjoyment of Gfe or property. 32 Violation: Due to the number and duration of odor complaints received, as well as the City's acknowledgment of the ongoing odor problems, DEC alleges that the City is allowing emissions from the Facility to unreasonable interfere with the neighbors'enjoyment of life and property. To address the summarized violations,DEC requires that the Permittee,do the following: Commencing Immediately: 1. Report any non-compliance events verbally to DEC within 24-hours (1-877-569-4114) and in writing within five days per instructions on the Non-Compliance Reporting Form and per permit language. The Non-Compliance Reporting Form can be found here: hrtp://dec.ala:ik: . ov ware Co >lit cc ,pertnirtee.htrxz,' By March 17, 2014: 1. Develop and implement a Corrective Action Plan explaining in detail how the Permittee plans to comply with the conditions of APDES Permit#AK0021890 and to reduce objectionable odors associated with the facility. The Corrective Action Plan must specifically address repeat noncompliance with DO and fecal coliform limits set forth in the permit. The Corrective Action Plan must also contain a timeline of implementation. 2. Submit the Corrective Action Plan to DEC for review and approval. Following Corrective Action Plan Submittal and Approval: 1. Implement the Corrective Action Plan per identified timeline. 2. Provide monthly status updates to DEC identifying achieved milestones and any changes to the approved Corrective Action Plan schedule. The Department is committed to resolving the above violations in an expeditious manner in order for the Facility to return to compliance as soon as possible. DEC strives for resolution of violations at the lowest level of enforcement action;however, should the City fail to meet the timeline within this Notice, DEC may choose to elevate the enforcement action to ensure that the violations are resolved and compliance achieved. Submission of above items may be made by means of either mail, electronic facsimile transmission (fax),or electronic mail(email). To DEC: Stephanie Mann Alaska Department of Environmental Conservation Division of Water 555 Cordova Street Anchorage,AK 99501 Fax: 907.334.2415 Email: arephanj Ma rnE(jala..ka.gov. 33 mommismoommir Penalties for violations of state statutes and regulations can be quite serious. In a civil action,a person who violates or causes or permits violations of these regulations may be held liable for substantial monetary damages under AS 46.03.760. Depending on the nature of the violation(s),one may also be held liable for the state's response costs under AS 46.03.822, for administrative penalties under AS 46.03.761, or for other kinds of damages or penalties under other statutes. In a criminal violation,a person who acts with criminal negligence may be guilty of a Class A misdemeanor. AS 46.03.790. Upon conviction,a defendant who is not an organization may be sentenced to pay a fine not exceeding$10,000.00 and/or sentenced to a definite term of imprisonment of not more than one year. Upon conviction, a defendant that is an organization may be sentenced to pay a fine not exceeding the greater of$500,000.00 or an amount which is three times the pecuniary damage or loss caused by the defendant to another or property of another. AS 12.55.035. Each day of violation may be considered a separate violation. Alaska laws allow the State to pursue both civil and criminal actions concurrently. Nothing in this Notice shall be construed as a waiver of the State's authority or as an agreement on the part of the State to forgo judicial or administrative enforcement of the above-described violation(s) or to seek recovery of damages, cost and penalties as prescribed by law. In addition, nothing herein shall be construed as a waiver of enforcement for past,present, or future violations not specifically set forth herein. �y 1£ Stephanie Mann Adam aid -' DEC DOW Enforcement Officer DEC DAQ Enforcement Officer Credential No.R-0295 Credential No. R-0294 Sent by Certified Mail # 1002 4010 0003 03 7Cto`t on the LI day of �A 34 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2014-067 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT LEGISLATIVE GRANT #15-DC-145 FROM THE STATE OF ALASKA DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT IN THE AMOUNT OF$5,900,000 FOR THE DESIGN AND DEVELOPMENT OF THE SEWARD MARINE INDUSTRIAL CENTER (SMIC) INCLUDING BREAKWATER ENGINEERING AND CONSTRUCTION AND APPROPRIATING FUNDS WHEREAS,the City has developed a plan for development of the Seward Marine Industrial Center(SMIC); and WHEREAS, this project continues to be a City priority for funding requests; and WHEREAS, the Alaska State Legislature awarded the City $5,900,000 toward the SMIC expansion project including breakwater engineering and construction; and WHEREAS, legislative capital project appropriations are administered through the State Department of Commerce, Community and Economic Development, Division of Community and Regional Affairs' (DCCED/DCRA), and Legislative Grant #15-DC-145 describes the terms and conditions of the award; and WHEREAS,Council acceptance and appropriation of these funds is necessary to spend State Legislative funding on this project. NOW,THEREFORE,BE IT RESOLVED BY TIIE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to accept grant #15-DC-145 from the State of Alaska Department of Commerce, Community and Economic Development, Division of Community and Regional Affairs(DCCED/DCRA)Legislative Grant in the amount of$5,900,000 for the purpose of construction management,construction and contract services related to the Seward Marine Industrial Center Expansion Project. The project period for this grant is July 1,2014 to June 30, 2019. Section 2. Funding in an amount not to exceed$5,900,000 is hereby appropriated from the SMIC Expansion SOA DCCED#3 State Grant Revenue account no 12333-0000-5922 as follows: 1) $295,000 to project management account no. 12333-0000-7305; and 2) $5,605,000 to infrastructure account no 12333-0000-8101. 35 rrrorrrsrirrrr CITY OF SEWARD, ALASKA RESOLUTION 2014-067 Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 11th day of August, 2014. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: (City Seal) 36 Council Agenda Statement eyof sEiq Meeting Date: August 11, 2014 q�ASKP Through: City Manager, Jim Hunt From: Community Development Director&Assistant City Manager, Ron Long Agenda Item: Accepting and Appropriating$5.9 Million State Legislative Grant for SMIC Development BACKGROUND&JUSTIFICATION: Development of the Seward Marine Industrial Center is and has been a priority for funding requests and economic development for the City.A phased plan has been adopted to construct the breakwater at SMIC and State funding has been awarded for the project. Financial control measures and accounting practices require the City Council to accept individual grant awards and to appropriate funds. The finance department will track expenses for the project and ensure that they comply with requirements of the grant awards. In 2014 the Alaska Legislature approved a$5,900,000 Designated Legislative Capital Project Grant for the SMIC breakwater and expansion project.This$5.9 Million is in addition to$10 Million received from the State capital bond project,for the SMIC expansion project and the$10 Million Designated Legislative Capital Project Grant in 2013. This grant agreement 15-DC-145 is administered through the State of Alaska Department of Commerce,Community and Economic Development,Division of Community and Regional Affairs. Council acceptance and appropriation of funds is required to move forward with the project. INTENT: The intent of this resolution is to add$5.9 million Designated Legislative Grant to$10 million in capital bond proceeds,and $10 million in State Designated Legislative Project Grant funds for the SMIC breakwater and expansion project. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): Page 16"Improve and expand 1. port facilities to attract more maritime trade. Complete development of SMIC X as a revenue source with year-round employment opportunities." 2. Strategic Plan (document source here): Page 5 "Attract New Industry"Page 7 " X 3. Other(list): SMIC Development Plan X FISCAL NOTE: State of Alaska Grant Number 15-DC-145 awarded the City of Seward$5.9 million toward Phase I of the SMIC expansion project. This resolution will authorize acceptance of the grant and will appropriate funds for the project. Contracts in excess of $50,000 will come before Council for approval. The amount of$295,000 is budgeted to cover project overhead costs associated with administering this project. Approved by Finance Department:M �k�tiG ATTORNEY REVIEW: Yes No X RECOMMENDATION: Approve Resolution 2014- authorizing the City Manager to Accept State of Alaska Legislative Grant no. 15-DC-145 and appropriating funds. 37 1.11.1111111111, ▪ OF 7'4 , , Department of Commerce, Community, �� THE "]AI's: ,0..: /7/,�\I s� and Economic Development Lt'00447-, . ojATAS .11. "7--___k. J DIVISION O COMMUNITY AND REGIONAL AFFAIRS --____ - „„„ — P.O.Box 110809 °'' ` . GOVERNOR S ?A N P A R N I I , l i Juneau,Alaska 99811-0809 � '-� r Main:907-465-4731 4” A LAS S l TDD:907-465-5437 2014 Fax:907-465-5867 { June 20, 2014 City of Seward Jean Bardarson,Mayor PO Box 167 Seward,AK 99664 RE: 2015 Designated Legislative Grant Dear Mayor Bradarson: I am pleased to notify you the City of Seward has been appropriated 2 FY 2015 Designated Legislative Grants per AS 37.05.315, Grants to Municipalities.Listed below are the grant projects and award amounts: Grant Number Project Name Award Amount 15-DC-144 Dredge/Dispose of Sludge Accumulating at Lowell Point Sewage Lagoon _ $1.300,000.00 15-DC-145 Marine Expansion Including Breakwater $5,900,000.00 In order to receive grant funds, a grant agreement must be executed for each award. Please provide the following information within 30 days: • A scope of work for each project which includes a brief description, proposed timeline and budget narrative. Enclosed are the Total Project Snapshots (TPS) for your reference. • Completed Signatory Authority Form Upon receipt of the requested information, I will prepare and send the grant agreements for signature. A copy of the latest.Designated Legislative Grantee Handbook is enclosed for your convenience.All grantees are encouraged to review the handbook as it contains new information. The handbook is also available online at: http://commerce.alaska.gov/dnn/dcra/GrantsSection/.DI.,Grants.aspx Congratulations on these awards. I look forward to working with you to ensure the success of each project.. If you have any additional questions, please contact me via phone at (907) 465-4731 or email robul.park @alaska.gov. Sincerely, ------ 6.4.A.---ze74.47.___ Robin Park Grants Administrator II Enclosures 1(: !t,1 ilt k11'1 - C _- 1~ (bf Of (MY i t{i,d' t '_, 38 Total Project Snapshot Report 2014 Legislature TPS Report 61591v1 Agency: Commerce, Community and Economic Development Grants to Municipalities (AS 37.05.315) Grant Recipient: Seward Federal Tax ID: 92-6000086 Project Title: Project Type: New Construction and Land Acquisition Seward - Marine Expansion Including Breakwater State Funding Requested: $7,900,000 House District: Kenai Areawide (28-30) Future Funding May Be Requested Brief Project Description: Enclose and develop the Seward Marine Industrial Center (SMIC) to provide essential marine services to support oil and gas exploration development, increased Arctic marine traffic, Alaska Railroad trans-shipment, UA research, AVTEC job training and home-porting of Coastal Villages Region Fund (CVRF) and/or other fishing fleets from Seattle to Alaska. The SMIC Expansion Project includes two phases. Phase 1 is construction of the breakwater. Funding Plan: Total Project Cost: $65,200,000 Funding Already Secured: ($20,400,000) FY2015 State Funding Request: ($7,900,000) Project Deficit: $36,900,000 Funding Details: FY 2011: The State appropriated$400,000 for SMIC harbor planning and feasibility study. FY 2012 and 2013: The City of Seward received$10,000,000 via the Transportation Bond package and$10,000,000 from the Legislature. Detailed Project Description and Justification: The City respectfully requests the Legislature's support and funding to expand and protect this major Alaska transportation center and ice-free deep-water port. Seward Marine Industrial Center (SMIC) is a vital component to the U.S. maritime infrastructure. It supports the recent increase and growth in Arctic marine traffic, shipping via the Northwest Passage, new Arctic routes, homeland security, military, Arctic research, and is a desirable location for petroleum and natural gas companies as SMIC offers road and rail access to Anchorage and surrounding Alaska. Seward's central geography enables provision of critical ship repair, fuel, moorage and support facilities for maritime vessels traveling through Anchorage, Kodiak, Western Alaska and the Arctic. SMIC provides essential ship haul-out and maintenance/repair services at the drydock with a 250-ton Marine TraveLift and 5,000-ton Synchrolift. Existing utility infrastructure and significant upland acreage offer ample space for vessel repairs, marine support services, cargo storage, staging, and future development. Presently, the SMIC basin is unprotected from ocean swells and boat wake action rendering SMIC's wharfing structures unusable most of the year. The dock structure and fendering systems have been damaged by wave action and the Syncrolift dock has been damaged by the rolling of a berthed vessel. There is lack of safe moorage in Seward for commercial vessel with drafts in excess of twelve (12) feet and/or displacements of 1,000 tons. Tugs, barges, and many other vessels often must anchor or'jog" within Resurrection Bay awaiting moorage. The Seward Ship's Drydock facility has For use by Co-t0 aff Only: Page 1 c, 0 4' e Contact Name:Vivian Stiver Contact Number:465-4861 11:56 AM 5/13/2014 39 --- morrome Total Project Snapshot Report 2014 Legislature TPS Report 61591v1 insufficient moorage to accommodate its customers and many potential users are forced to bypass Seward altogether. Additionally, SMIC's inadequate wave protection negatively impacts the use and development of the entire facility, including the ample upland area where many infrastructure improvements have been made. The increased utility gained by the SMIC expansion will foster the private development of the extensive available uplands. Uplands development would support additional services, infrastructure, and address the increased demand for cargo and staging areas at the three major mainland Alaska ports of Seward, Whittier and Anchorage. Development at SMIC will enable Seward to better support moving goods and material throughout the state via the Alaska Railroad. Demand for additional moorage and laydown yard space in Seward continues to increase. New business interests have emerged that will benefit from the SMIC Expansion: - Based on increasing freight, the Alaska Railroad has issued its five-year Master Plan for Seward calling for additional moorage/wharf capacity, new roads and industrial space -The AVTEC Maritime Program has increased its training of Alaskans for marine industry jobs statewide, noting the value of the SMIC breakwater for future statewide economic growth, increased workforce development and employment opportunities training - Increased petroleum exploration in the Beaufort and Chukchi Seas has led to increased supply shipments and vessel over-wintering in Seward -The new UAF School of Fisheries and Ocean Sciences Research Vessel (RN Sikuliaq) will homeport in Seward - Seward Highway improvements to broaden access and increase safety support increased vendor traffic in and out of Seward - Fuel storage and dispensing infrastructure is in place at SMIC - Increased activity by the U.S. Coast Guard and Homeland Security - Seward Ship's Drydock anticipates doubling its current employment to one hundred (100)jobs as infrastructure is added to the SMIC - Private industry has expressed interest in leasing industrial yard space at SMIC for short term storage and long term development of warehouse and vessel support facilities As presented in the City's FY2013 and FY2014 State funding requests, the CVRF is actively exploring relocating its CDQ fleet back to Alaska. Annual spending for maintenance of COQ vessels is between five and ten million dollars ($5,000,000-$10,000,000). Nearly twenty million dollars ($20,000,000) is spent annually on moorage and vendor support. An additional two million dollars ($2,000,000) is estimated for crew airfare to reach vessels. This money is now being spent in Seattle. Relocation of Alaska's CDQ fishing fleet close to the fishing grounds will realize the vision of Senator Stevens (Magnuson-Stevens Act in 1976) to revitalize Alaska's maritime/fishing industries while creating jobs and revenue in Alaska for Alaskans. Significant marine business has been lost due to the lack of a protective and sufficiently-sized basin. At times, barges circle in Resurrection Bay, waiting to get in the harbor and for available loading and off-loading dock space. Damages to vessels and dock facilities occur due to current undesirable wave environment. A dredged, protected basin at SMIC with adequate moorage and uplands development will position SMIC to better support existing and new businesses, providing a stable economic base with year-round jobs and revenue streams to support operations and maintenance of the new facility. For use by Co-chair Staff Only: Page 2 Contact Name:Vivian Sliver Contact Number:465-4861 40 11:56 AM 5/13/2014 Total Project Snapshot Report 2014 Legislature TPS Report 61591v1 Project Timeline: Fall/Winter 2013 Design Development and Permitting Winter 2014 Complete Construction Documents/Issue Construction RFP for Phase 1 Spring 2014 Select Construction Contractor Summer/Fall 2014 Phase 1 Breakwaters Construction Entity Responsible for the Ongoing Operation and Maintenance of this Project: City of Seward Grant Recipient Contact Information: Name: Jim Hunt Title: City Manager Address: 410 Adams Seward , Alaska 99664 Phone Number: (907)224-4047 Email: jhunt @cityofseward,net Has this project been through a public review process at the local level and is it a community priority? C Yes C No For use by Co-chair Staff Only: Page 3 Contact Name:Vivian Stiver Contact Number:465-4861 11:56 AM 5/13/2014 41 —• INIIIIIiiiIIIIIIIIIIIMMINNY Barges stacked and waiting Launch of new RN Sikuliaq a c AYb•• � fd 01r. YL•." TR y ' F-_ . . ,Yy. S '�'°'E�.17R t r USCG Healy 6,r SEWARD MARINE INDUSTRIAL CENTER EXPANSION +� ,•'� •�. Afrn x«a•.�« CAPITAL COST AND FUNDING THE PROJECT The Phase 1 cost to protect the basin with an additional breakwater is $27.9 million. $20 million has been received from the State of Alaska, building on the $400,000 legislative The Seward` Marine Industrial appropriation for the initial planning and feasibility work. The City of Seward FY2015 Center (SMIC) Expansion will legislative request is for final funding of $7.9 million required to complete Phase 1. provide protected and safe "Total SMIC Expansion project cost is estimated at $65.2 million. Potential fund sources moorage to meet- increasing include Si:ate and Federal grants, State port bonds, private and AIDEA investment. Seward demand, including: fishing fleets, " taxpayers have invested over$30 million in bonds for existing infrastructure.Private upland gas/oil industry exploration and development to provide additional vessel repairs,marine support services,cargo storage and support equipment, USCG, the staging will utilize the improved facilities and provide operating revenue_ R/V Sikuliay and various other PROGRESS tugs,barges and shipping vessels.. The City of Seward has actively invested in the development of an expanded business agenda Phase 1 will construct the necessary that ensures econoin.is growth, sustainability and prepares the project for construction. breakwaters and increase utility for • Phase 1 engineering and concept design have been further refined. the SMIC harbor now challenged` • Permitting and geotechnical studies are underway.• by an unsafe wave climate. Business case has been expanded to now include statewide agenda of oil and gas exploration,Arctic marine traffic support,ARRC, over-land and marine cargo,LA, Phase 2 will develop and dredge A`'TEC and other initiatives in addition to the CDQ Alaskanization program.. the existing basin to expand , City of Seward plans to initiate Phase 1 construction in Summer 2014. moorage capacity, repair damaged'I infrastructure and add utility and j upland improvements. ECONOMIC BENEFITS The SMIC. Expansion project provides.regional economic diversification with statewide SCHEDULE benefits: Fall/Winter 2013: Design CI)Q fleets could bring$5-10M in annual maintenance revenue and$20M in Development and Permitting moorage and vendor support services.Relocation of fleets to Seward will enhance these revenues. Winter 2014: Construction 1 • Revenue from increased oil and gas exploration vessels wintering in Seward 1)ocuments/Bidding 1 • Capacity to meet ARRC's and private industry's increased demand for freight,dock extension, road and industrial layclown space Summer/Fall 2014:Phase 1 • New jobs in construction,marine services/supplies, tourism,commercial and Breakwaters Construction •E sport fishing,marine research, oil and gas exploration and maritime shipping l..„_,___.__.....__ ___.._ ....__M_ _ ______- • AVTEC;.Maritime Program licensing, training and certification;Marine trades and / • services across Southcentral.Alaska ports CITY OF SEWARD $: . Ut1.I Alaska legion Research.Vessel (S.il�u taco moorage and maintenance Jun Fluor City Manager `; _ Additional l:iurbot capitcity for existing businesses looking to expand 907.224.4047 °FasiS" • Support to Port of Anchorage in moving material arid goods around the state ilamt@cityolseward.net it olse��ard.net PI PO Box 167•Seward,Alaska 99664 • Improvements to reg ion's economy by bringing down marine costs for.Alask.a www:Cat}otsewar(l.u:i 'row-1"°�"." RRRRRR 1 R RRRR � �yy aKr 42 SEWARD MARINE INDUSTRIAL cENrE12 EXPANSION Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2014-068 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A SHORT TERM LEASE AGREEMENT WITH RAIBOW FIBERGLASS AND BOAT REPAIR, LLC FOR ADDITIONAL LAND AT THE SEWARD MARINE INDUSTRIAL CENTER WHEREAS, the City and Raibow Fiberglass and Boat Repair, LLC (Raibow) have previously executed lease contracts at the Seward Marine Industrial Center (SMIC); and WHEREAS, Raibow desires to lease a parcel of land containing approximately 1.76 acres at SMIC; and WHEREAS, the City Manager has negotiated an agreement to lease additional land to Raibow under the provisions of Seward City Code 7.05.410; and WHEREAS, the lease request is consistent with the Comprehensive Plan and the Seward Marine Industrial Center Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Council approves the agreement to lease approximately 1.76 acres within Lot 4A of Block 7 at SMIC to Raibow. The term of the agreement shall not exceed 120 days (November 24, 2014). Section 2. This resolution shall take effect in 30 days. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 11`h day of August, 2014. 43 Agenda Statement {of setyq Meeting Date: August 11, 2014 u To: City Council ?' y 'a&ASwP Through: City Manager Jim Hunt From: Harbormaster Mack Funk Agenda Item: Short Term Lease Raibow Fiberglass and Boat Repair, LLC Approximately 1.76 acres of additional Land at SMIC BACKGROUND & JUSTIFICATION: Raibow Fiberglass and Boat Repair, LLC continues to grow. The business has secured the necessary financing to expand over at SMIC and this lease is for approximately 1.76 acres located northeasterly of the Vigor shipyard. Exhibit C that is attached to the lease shows the parcel of land to be leased. On July 24 the City's standard short term lease was signed by Dave Phillips of Raibow. Chapter 7.05.410 of the Seward City Code authorizes the City manager to negotiate short-term leases: Nothing in this chapter shall prevent the city manager from negotiating short-term leases of city property subject to council approval at the next regularly scheduled city council meeting. Such leases shall not be subject to the public hearing process, shall not exceed 120 days in length, and shall contain no provisions for optional terms. The resolution approving such a lease may be signed and adopted immediately provided the lease form contains a provision stating that the lease is subject to suspension during the first 30 days after passage of the resolution if a sufficient referendary petition is filed in accordance with section 4.8 of the City Charter. INTENT: To approve a month to month agreement for up to 120 days to lease additional land to Raibow Fiberglass and Boat Repair, LLC at SMIC. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan (document source here): This lease meets the plan X goals to develop SMIC as a major industrial area of the community. Strategic Plan (document source here): Attract New Industry: 2 Develop an aggressive marketing campaign which highlights the diverse X resources, and quality of life that make Seward a great place to live and establish a business or industry. (Page 5) 3. Other (list): 44 FISCAL NOTE: The rent is $779.75 per month plus tax. The lease rate is based on the 2010 appraisal of a nearby parcel, with increases since that time based on the Consumer Price Index. Approved by Finance Department: a ../.44/44.p ATTORNEY REVIEW: Yes No X RECOMMENDATION: Approve Resolution 2014- Ok00 O 00 authorizing the City Manager to approve a short term lease with Raibow Fiberglass and Boat Repair, LLC. 45 orroir Seward Marine Industrial Center Short-Term Lease This LEASE (hereinafter "LEASE"), for good and valuable consideration, and pursuant to Seward City Code § 7.05.410 is entered into between the City of Seward, Alaska, a municipal corporation, organized and existing under the laws of the State of Alaska, (the "City") whose address is PO Box 167, Seward, Alaska 99664 and Raibow Fiberglass and Boat Repair, LLC, an Alaska limited liability company authorized to do business in Alaska, and whose address is P.O. Box 2891, Seward,AK 99664 (the "LESSEE"). 1. Purpose of Lease. This Lease grants LESSEE use of the real property described below for the purpose of repairing boats in accordance with all laws, regulations, ordinances and City policies. 2. Description of Property. A parcel of land at the Seward Marine Industrial Center in Seward, Alaska. The parcel is located within Lot 4A of Block 7. The parcel size is approximately 1.76 acres measuring 170 feet by 453 feet as shown on the attached Exhibit C. Other than access to and from this designated area, use of any area outside of this designated area is not permitted including but not limited to parking, storage or disposal. 3. Tenn. The term of this Lease shall commence July 24, 2014 and continue until the earlier of 120 days or the effectiveness of a long term lease approved by the Seward City Council. Short rterm Lease subject to Se-ward City- Code §a7.05.410. LESSEE understands and agrees that this is a short tem lease pursuant to Seward City Code § 7.05.410 and subject to approval by Seward City Council ("Council") and referendary petition as follows: (a.) Pursuant to Seward City Code § 7.05.410, this Lease is subject to Council approval. If a resolution authorizing this Lease is presented to Council. and Council does not approve the resolution,this Lease shall automatically terminate. (b.) Pursuant to Seward City Code § 7.05.410, upon Council approval of the resolution approving this Lease, this Lease is subject to suspension during the first thirty days after passage of the resolution if a sufficient referendary petition is filed in accordance with § 4.8 of the Seward City Charter. (c.) Upon termination or suspension of the Lease pursuant to this Section 4, LESSEE agrees to remove any connexes, vehicles, materials, equipment and other property from the premises within five (5) calendar days of such termination or suspension, and restore the premises to the same or better condition existing at the time prior to entering upon the premises. 5. Rent. Upon execution of this Lease, LESSEE shall pay the City $779.75 per month for the rental of the premises for the Term of this Lease. LESSEE agrees that the rental amount is an interim calculation and is not necessarily representative of any rental amount that will be imposed under any long term lease for the property. 6. Lessee's Property. Any vehicle, equipment or material placed upon the above- described premises shall be and remain the property of LESSEE and may be removed therefrom. 46 by LESSEE at any time provided that LESSEE shall not damage or impair the City's property while installing or removing LESSEE's property. 7. Tlennination. In the event of LESSEE's default in the performance or observance of any of the Lease terms, conditions, covenants and stipulations thereto, and such default continues 5 days after written notice of default, City may cancel this Lease, or take any legal action for damages or recovery of the property. This Lease may be terminated for convenience by either party upon 15 days written notice to the other party. Upon termination or cancelation of this Lease. LESSEE covenants and agrees to remove any vehicles and all other equipment and materials from the premises within five (5) days and restore the premises to the same or better condition existing at the time prior to entering upon the premises. Removal will not be required if this Lease is superseded by a.duly authorized long term lease for the premises prior to the end of the term set forth.in paragraph 3 above. 8. Liability and Indemnity. Except and to the extent solely caused by City's own negligence or intentional misconduct, City shall not be liable for damages to property or injuries to persons, including death, arising from the construction, operation, maintenance, removal or activity of LESSEE, its principals, officers, employers, associates, agents, representatives, successors, heirs or assigns, licensees or invitees, and LESSEE does hereby agree to release. protect, defend, save harmless and indemnify City, its officials, employees and authorized representatives against any loss, cost, damage, expense, judgment or liability of any kind whatsoever, from or by reason or on account or as a result of the activity of LESSEE. 9. Waiver. LESSEE acknowledges that the premises are not secured by the City, the area is open to other users and the public., and LESSEE accepts all risk of loss or damage whatsoever. LESSEE waives all claims against the City for any and all loss or damage that may occur. City makes no representations or warranties as to the fitness of any particular part or the whole of City's public facilities for the uses intended by LESSEE and LESSEE has inspected the site and has satisfied itself that the designated premises are sufficient for the intended uses by LESSEE. City makes no representations or warranties of any nature with. respect to the commercial practicability or accuracy of any information provided by City. 10, Liability insurance. LESSEE, during the term of this Lease, shall carry, at its expense, public liability insurance covering the licensed property in an amount of not less than $500,000 for injury or death to any one person, $1,000,000 for injury and/or death to any number of persons in any one accident, $1,000,000 for property damage or destruction and the statutory amount required for Worker's Compensation. The minimum requirements in this section may be increased from time to time by City in accordance with customs and usage for comparable property in the Seward area. 11, Additional Named Insured; Waiver of Subrogation. All insurance policies required of LESSEE shall name the City as additional insured. All policies shall contain an agreement by the insurers that such policies shall not be canceled or amended without at least thirty (30) days prior written notice to City, and certificates or copies of all such insurance policies shall be furnished to City promptly after the issuance thereof 12. R,epairs and Maintenance. LESSEE shall pay the cost of repair of any damage to the above-described premises caused by LESSEE, its invitees or guests occurring during the term of this Lease. 47 13. No Assignment or Sub-leasing. LESSEE is not allowed to assign this Lease or sub-lease the premises. 14. No Hazardous Materials. The use, keeping, storage, or disposal of hazardous materials on the premises is prohibited. 15. Lease Agreement Only: LESSEE agrees and understands that this agreement is a temporary lease agreement only and that by accepting this contract the City is not accepting Lessee's property for storage; the relationship between the parties is simply that of a landlord and tenant. Unless the property is formally impounded by the City, the vehicles, equipment and materials on the premises, shall at all times remain in the exclusive possession and control of the LESSEE and the City is not acting, and shall not be held liable in any manner, as a. warehouseman or a bailee. 16. Records. The City shall have the right to review and inspect LESSEE's records, licenses, and permits during all business hours. 17. No Utilities. LESSEE understands that there are no utilities, water and sewer available on the premises. LESSEE agrees that utilities, water and sewer are not necessary for the LESSEE's use of the premises. IN WITNESS WHEREOF, the parties hereto have executed this document by and through their duly authorized officials. City Of Seward, Alaska Raibow Fiberglass and Boaf0Zepair LLC s ..... By: James Hunt, City Manager By: 'Dar Phillips, President Date: Date: 7124 ko/44 / ATTEST: Johanna Kinney, City Clerk (City Seal) State of Alaska 48 _____ 1 cx,--------F 6 11/4 Exhibit C 8 LI , ...g4 .- ..„.,,,,..., , Lease between Raibow Fiberglass and Boat Repair LLC ...Tc,..-e..?:tgl..,..!R...,,s., ,,-, 7..T.,.., ,:_,.<,., f ;e,i`z-..;4-,9:e Fg'e'.= (-)sr:' --...- •-- tr, . r,.. And the City of Seward '1' t,) 0....ttA.1:;--, t 7-"AT,' ''' Cr.,•..,.- "" '''. 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I I 49 immiw Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2014-069 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING A GRANT IN THE AMOUNT OF $29,682 FROM THE ALASKA DEPARTMENT OF FISH & GAME FOR THE PURPOSE OF REPLACING AND IMPROVING SEWAGE PUMP OUT FACILITIES AT THE SEWARD SMALL BOAT HARBOR, AUTHORIZING MATCHING FUNDS IN THE AMOUNT OF $9,894 AND APPROPRIATING FUNDS TOTALING $39,576 WHEREAS, the Seward Small Boat Harbor was designated as an Alaskan Clean Harbor in early 2012; and WHEREAS, the Seward Harbor Department continues to take steps to make the harbor cleaner and to make the sewage pump-out facilities at the harbor easier to use; and WHEREAS, the Seward Small Boat Harbor features pump-out facilities at five (5) different docks; and WHEREAS, the Alaska Department of Fish & Game offers up to $29, 682 in federal grant funds to upgrade sewage pump-out facilities to serve both E and F docks through the Sport Fish Restoration(SFR) Act; and WHEREAS, according to federal aid regulations, a SFR grant can be approved only if they primarily benefit the recreational boating and sport fishing public. These funds cannot be used for projects that primarily support subsistence, personal use, or commercial fishing groups. Other users may use an SFR project, but such use cannot displace recreational boater and sport angler use; and WHEREAS, the City is required to provide matching funds in the amount of 25%, or $9,984 to replace the sewage pump that serves both E and F floats, for a total project cost of $39,576. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to enter into a grant agreement with the Alaska Department of Fish & Game, and accept grant funds in the amount of$29,682. Section 2. Matching funds in the amount of 25% of project costs, or $9,894 are provided from the Harbor Major Repair & Replacement Fund. 50 CITY OF SEWARD, ALASKA RESOLUTION 2014-069 Section 3. The total amount of$39,576 is hereby appropriated as follows: 1) $29,682 from federal grant fund account no. 11401-0000-5921 to the Sewer Pump-Out Station contracted services account no. 11401-0000-7009; and 2) $9,894 from the Harbor MRRF transfers-out account no. 11001-0000-3710-0000-11401 to the Sewer Pump-Out Station contracted services account no. 11400-0000-7009. Section 4. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 11`h day of August, 2014. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 51 Agenda Statement r of set.. Meeting Date: August 11, 2014 To: City Council L P Asy Through: City Manager Jim Hunt From: Harbormaster Mack Funk Agenda Item: Accepting a grant for the Sewer Pump Out Facilities at the Small Boat Harbor BACKGROUND & JUSTIFICATION: The vessel sewer system on Seward Harbor Docks E and F was originally designed to use two pumps, one for each dock. A number of years ago the pump on E dock failed. The system was re-plumbed so that both docks run on a single pump. Unfortunately,this pump was undersized for the application, and now needs to be replaced. The intent is to use grant funding to purchase a new pump system that is properly sized and powerful enough to serve both docks. The harbor currently has sewage pump out stations at three other docks: Z float, Q float,and the NE launch ramp. The new pump system on E and F docks would serve bigger vessels since these moorage slips range in size from 50 feet to 100 feet. The collection system runs the entire length of both docks and it is expected to be widely used. The grant funds for this project come from taxes collected on fish gear through the Sport Fish Restoration(SFR) Act. According to federal aid regulations, SFR grants can be approved only if they primarily benefit the recreational boating and sport fishing public. These funds cannot be used for projects that primarily support subsistence, personal use, or commercial fishing groups. Other users may use an SFR project, but such use cannot displace recreational boater and sport angler use. After this grant is fully approved,the City will solicit bids from pump suppliers. After bids are received and evaluated, staff will purchase the pump. INTENT: To accept up to $29,682 in grant funds from the Alaska Department of Fish & Game in order to replace the sewage pump that serves E float. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): Page 23 Encourage the 1. growth and development of an efficient, functional small boat harbor X that meets Seward's commercial and recreational needs. 2 Strategic Plan (document source here): Page 15 Celebrate the Natural X Environment. 3. Other (list): 52 FISCAL NOTE: Grant funding in the amount of$29,682 will be supplemented by $9,894 in matching funds from the Harbor MRRF Fund, for a total project cost not to exceed $39,576. Approved by Finance Department: �4,446,6,F ATTORNEY REVIEW: Yes No X RECOMMENDATION: Approve Resolution 2014- 04 ratifying the City Manager's approval of a grant agreement with the Alaska Department of Fish & Game, to replace the sewage pump at E Float at the Seward Small Boat Harbor and appropriate funds. 53 0101111111•01~ , , .. — FHL ,,_ Department of rHE siAlE ....-,.....• --1.--... Fish and Game of : , DIVISION OF ADMINISTRATIVE SERVICES t ,,,...., Procurement Office GOVERNOR SEAN PARNELL 1255 West 8th Street \Nr)i.,5ia. 11cP' P.O.Box 115526 Juneau,Alaska 99811-5526 Phone:907.465,6177 Fox:907.465.6181 1Th 800.478.3648 July 8, 2014 Jim Hunt, City Manager City of Seward PO Box 167 Seward, AK 99664 RE: Seward Harbor Recreational Boat Sewage Pump-Out Station COOP 1.4-157 Dear Mr. Hunt: Enclosed is a fully executed copy of COOP 14-157 for your file. The Department's Project Director is Val F3lajeski. Please direct all inquiries concerning this project to her at(907) 267-21.64. Please refer to the above tracking numbers on all billings and correspondence. Kind regards, • , , Trill(i ky Mindy But14 Procurement Specialist II E-mail: melinda.butler(Z4alaska.gov Enclosure 54 VC P s�• % `�;- , \ Alaska Department of Fish and Game Division of Administrative Services P.O. Box 115526 .__Ay Juneau, AK 99811-5526 Cooperative Agreement Number 14-157 Title: Seward Harbor Recreational Boat Sewage Pump-out Station Between: Alaska Department of Fish and Game Division of Sport Fish and City of Seward I. AUTHORITY: This agreement is entered into by and between the Alaska Department of(hereinafter referred to as the "ADF&G"or the "Department")and the City of Sewar (hereinafter 1 �eferrepd�o as fi (CITY"). the ADF&G enters into this agreement under authority AS16.05.050 (12) and AS36.30.850(c) and one or more of the following Federal Aid in Sport Fish Restoration programs: Recreational Boating Access (CFDA#15-605), Boating Infrastructure Grants (CFDA# 15-622)and Clean Vessel Act(CFDA#15-616). II• PURPOSE OF THE AGREEMENT: To construct manage and maintain a sewage pump-out station in Seward Harbor to serve recreational boaters and other public users. fUI. TERM OF THE AGREEMENT: The term of this agreement shall begin from date of final signature by ADF&G, and ends December 31, 2020. IV. COVENANTS OF THE ALASKA DEPARTMENT OF FISH AND GAME: a. To reimburse the CITY for accomplishing the purpose of this agreement in an amount not to exceed $29,682.00. The source of funding shall consist of 100%from the Federal Aid in Sport Fish Restoration Act (Dingell-Johnson/Wallop-Breaux). Availability of these funds shall be subject to approval of the project by the Federal Aid Office of the U.S. Fish and Wildlife Service (USF&WS). b. To authorize the ClTY to manage and maintain the pump-out station as a CITY facility. c. To perform a final inspection of the completed project to verify compliance with this agreement. V. COVENANTS OF THE CITY OF SEWARD: a. To provide matching funds in the amount not less than one-third of the$29,682.00 amount provided by ADF&G. (This is a match ratio of 75% Federal Aid Funds to 25%. CITY funds.) These funds shall be from a non-federal source and shall be claimed by ADF&G as match for the federal funds provided by ADF&G. The CITY shall be required to provide not less than $9,894.00 to match the$29,682.00 stated in paragraph a.I\/above. The CITY shall provide all additional funding needed to complete activities covered by this agreement. 55 Alaska Dept.of Fish and Game Cooperative Agreement+14-157 b. To dedicate project,a section of CITY owned uplands and tidelands ut station. The Sewar pardcHl Harbor Project Area.. this The e parcel section shall be used exclusively for the pump-out is shown on Attachment A. The CITY warrants that it has the right,ht, ow ro authority to maintain improvements on the parcel and that there restrictions, co easements, rights-of-way,or uses whi ch w oul d prevent t he CITY from constructing and maintaining the improvements on the parcel. c. To complete the construction of the pump-out station funded by this agreement prior to December 31, rovide all additional funding that may be needed. 2015. In the event the funding provided by ADF &G is not sufficient to cover all costs incurred by the CITY in completing this project, the CITY shall p d. To manage and maintain the pump-out station for public use until December 31, 2020. The pump-out station will be managed primarily for the benefit this use will be made without prior written approval of of the recreational boating and sport fishing public in providing access to public��vaters. No change ADF&G. Management activities and maintenance services shallm nstenarderly public b adjusted use and ed seep the facility clean and in a good state of repair. A�tanageme commensurate with seasonal public use. tenance or allows incompatible uses of the pump-out station ADF&G will consider the facility closed to the public if the CITY physically denies access,fails to provide adequate management or main that effectively limits public use by recreational boaters and sport anglers. e. To obtain and comply with all federal, state and local permits required for construction and maintenance of the project. f. To install a sign approved by ADF&G identifying the participation of ADF&G, the Federal Aid in Sport Fish Restoration program. Clean Vessel Act program and sport anglers in pump-out station development. g. To be responsible,for a period of one year fhe defect is brought to final inspectiOn,for of the CITY,correcting without aii defects in the design or construction when additional cost to ADF&G. The CIoTY�`llip rent or� orkmanship which is Ii�fer'or�de`em�ePOr�of in persons and property that accordance with the terms of this agreement. h. To maintain adequate insurance in conjunction with the design; construction and maintenance of the improvements. 1. To perform all aspects of the project in compliance with appropriate laws and regulations which include but are not limited to the following; 1) Local Building Codes-The CITY shall comply with applicable local buildings codes and shall obtain a building permit if required (AS 35.10.025). 2) Historic Preservation-The CITY shall comply with AS 41.35.070 to preserve historic; prehistoric and archeological resources threatened by public construction. 3) Public Contacts-The CITY shall comply with AS 36.05 in determining the wages and hours of labor on public contracts. 4) Political Activity-Federal funds cannot be used for partisan political purposes of any kind by any person or organization involved in the administration of federally assisted programs. 5) Civil Rights- Pursuant to Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, Americans with Disabilities Act of 1 990, the Age Discrimination Act of 1975 and Title IX of the Education Amendments of 1972, no person shall, on the grounds of race,color, national 56 2 Alaska Dept.of Fish and Game origin; age, sex or handicap be excluded from Cooperative Agreement Y 14-157 any program or activity funded in whole or in part by f participation funds.e subjected to discrimination in 6) Allowable costs/Cost principles-OMB Circular No.A-87, "Cost Principles of State and establishes principles and standards for determining costs d Local contracts, and other agreements with state and local governments.A costa is allowable oraeder reimbursement only to the extent of benefits received by federal programs; and costs must meet the basic guidelines for allowability, reasonableness, and allocability. for fe e,�I 7) Drug-free Workplace Act-The CITY, by signing this agreement, certifies that they will provi de a drug-free workplace. 8) Debarment/Suspension-The CITY, by signing this agreement, principals, or subcontractors, is presently debarred, suspended,� certifies. proposed for debarment,rment,its or voluntarily excluded from federal financial assistance programs or activities. Where the CITY is unable to certify to any of the statements in this explanation to this agreement. certification, the CITY shall attach an 9) Audits-The CITY acknowledges that 100% of the ADF&G funding for from the Federal Aid office of the U.S. Fish and Wildlife Service under CFDA 15.605. The activities of this agreement is acknowledges that receipt of federal funds may create audit e City A- 133. The CITY acknowledges that the State of Alaska`e auc� ?requirements under OMB Circular A- also apply, single audit provisions of 2 AAC 45.010 may 10) Workers Compensation Insurance-The CITY shall provide and maintain, for all employees engaged in work under this agreement, coverage as required by AS 23.30.045, and, where applicable, any other statutory obligations including but not limited to Federal U.S.L.&H. and Jones Act requirements. The policy must waive subrogation against the State. 11) Open Competition-The CITY shall comply with Executive Order 13202 dated February' 17, 2001 prohibiting any requirements or bidding preferences based contractor affiliation with labor organizations. j. If the CITY handles hazardous materials on the site, the CITY agrees to employ for safely storing, dispensing, and otherwise handling hazardous materials in accordance withced;_Tres applicable federal, state, and local laws. Hazardous materials include but are not limited to fuels and lubricants commonly used in vehicles and boats. 1) In the event of a hazardous materials spill by the CITY or the public using the site, the CITY shall act promptly, at its own expense, to contain the spill, repair any damage, absorb and clean up the spill area, and restore the site to a condition satisfactory to the ADF&G and in accordance with applicable federal, state, and local laws. The CITY shall be the lead agency in requesting additional funds from the legislature to cover the cost of spill clean-up. ADF&G shall support such requests. 2) If contamination of the site occurs as a result of the CITY's management of the site, the CITY shall indemnify, defend, and hold harmless the ADF&G from any and all claims,judgments, damages, penalties, fines, costs, liabilities, or losses. VI. GENERAL PROVISIONS 1. ADF&G and the CITY shall cooperate in accomplishing the improvements to be provided under this agreement. The CITY shall be the lead agency in accomplishing all work necessary to make the improvements. The CITY may employ design consultants and construction contractors as may be appropriate. 2. The CITY shall provide ADF&G a copy of the proposed construction schedule. The. CITY shall also promptly notify ADF&G of all changes made to the schedule or the design. At the completion of the construction a+fork. the CITY shall provide ADF&G a copy of the as-built plans. Reimbursement for construction work shall he contingent on ADF&G approval of work actually performed. 3. ADF&G review of designs, plans, specifications or other project-related documents will be to ensure confonriance to the purpose of this agreement and shall not constitute engineering review nor relieve the CITY 57 3 Alaska Dept.of Fish and Game Cooperative Agreement#14-157 s re are an adequate design.. meet code compliance, or assure that cost principles are from respon..rbrlrty to p rep are to change orders. II of the omp et a copy of the proposed that fee 4. CITY CITY does not intend to charge a user fee for public ha e of the completed facility. In the event that the the CITY CITY finds it necessary to impose dens shall be subject to the fol!o�rring criteria: schedule for review and approval. oat sh a higher fee can be justified(50 CFR 85.44). Justification for a higher fee is subject to approval by the USF&WS. b. Fees shall not be imposed to recover the capital cost of the improvements covered by this agreement. c. Fees shall not exceed the cost of operation, maintenance and improvement of the pump-out station. maintenance and improvement are program income. d. Site specific fees that exceed the cost of operation, CITY launch ramp usually is program income launch be sually i An areawide fee, such as an annual launch permit, that allows the use of any not considered program income. Fees collected and determined to be prog back to the Federal Aid in Sport Fish Restoration in CFR Pa&12 and OMB Coclullar A-102 apply treatment of program income by the USF&WS contained to this agreement. 5. The CITY may establish a capital improvement account to fund specified cified major improvements CITY nts t the site. Y Establishment of such an account shall be reviewed and approved improvement proposed,the estimated cost and completion date when requesting app roval. Fees accumulated in a capital improvement account will not be considered program income if they are used for the approved improvement. E. If required by future changes to federal regulations or at the request of ADF&G, the CITY shall provide ADF&G an accounting of fees collected and costs of operation, maintenance, and improvements. This accounting shall be on an annual basis and in sufficient detail to satisfy state and federal regulations 7. The effective date of this agreement shall be from the date of final signature by ADF&G. 8. The design life of the facility is 5 years; therefore, this agreement shall remain in effect until December 31, 2020. Either agency may terminate its involvement in this agreement by written notice to the other at least 90 days in advance of the date on which termination is to become effective. In the event that an agency terminates its involvement in this agreement, defaults in its duties under this agreement or this agreement expires, disposition of the sport fishing access improvements shall be accomplished by whichever of the following contingencies is appropriate: 9. ADF&G shall have the option to negotiate an extension of this agreement with the CITY for the continued use of the facility for public sport fishing access. ADF&G shall have 90 days after the expiration of this agreement in which to notify the CITY of its intent to exercise this option. If ADF&G does not exercise this option. all improvements shall become the property of the CITY. 10. If prior to December 31, 2020, ADF&G finds that there is no longer a need for the sport fishing access improvements covered by this agreement, then this agreement shall be terminated. Improvements funded by ADF&G shall become the property of the CITY at no additional cost to the CITY. 11. If prior to December 31. 2020, the CITY closes the pump-out station to the public, does not comply with the requirements of this agreement or terminates its involvement in the purpose of this agreement. this agreement shall be terminated and the CITY shall reimburse ADF&G for: 58 4 Alaska Dept.of Fish and Game Cooperative Agreement a. the total funding it provided at the rate of 5 percent for each full year between the date of termination,J' and December 31, 2020. b. the appraised fair market value, on the date of the City's default, of any and acquired for the project with ADF&G funds. This agreement shall be terminated when the City's reimbursement to ADF&G is completed. The CITY shall not be required to reimburse ADF&G in the event the facility must be closed to protect public safety because of casualty damage arising from a catastrophic occurrence. 12. The CITY may make improvements to the pump-out station at its own expense provided the improvements are compatible with the purpose of this agreement and are approved in writing by ADF&G prior to construction. 13. Funding for major maintenance or repair of casualty damage will be negotiated on a case-by-case basis. Each agency's share of such funding shall be contingent on availability of funds. 14. The rights and responsibilities vested in each agency by this agreement shall not be assigned without the written consent of the other agency. 15. Agents and employees of each agency shall act in an independent capacity and not as officers, employees, or agents of the other agency in performance of this agreement. 16. Nothing in this agreement shall obligate either agency to the expenditure of funds or future payments of money in excess of those herein agreed upon or authorized by law. 17. Nothing in this agreement transfers title or land jurisdiction other than set forth herein. 18. The CITY shall indemnify, hold harmless and defend ADF&G from and against any claim of, or liability for error, omission or negligent act of the CITY under this agreement. The CITY shall not be required to indemnify ADF&G for a claim of, or liability for, the independent negligence of ADF&G. If there is a claim of, or liability for, the joint negligent error or omission of the CITY and the independent negligence of ADF&G, the indemnification and hold harmless obligation shall be apportioned on a comparative fault basis. "CITY"and "ADF&G'as used within this paragraph, include the employees, agents and other contractors who are directly responsible, respectively, to each. The term "independent negligence" is negligence other than in ADF&G's selection, administration, monitoring or controlling of the CITY and in approving or accepting the CITY's work. 19. Both parties agree to comply with all applicable federal and state laws regulating ethical conduct of public officers and employees, 20. Each agency will comply with all applicable laws, regulations, and executive orders relative to Equal Employment Opportunity. 21. Nothing herein is intended to conflict with federal, state, or local laws or regulations. If there are conflicts. this agreement will be amended at the first opportunity to bring it into conformance with convicting lads or regulations. 22. This agreement may be revised as necessary by mutual consent of both parties, by the issuance of a written amendment, signed and dated by both parties. 59 Alaska Dept.of Fish and Game Cooperative Agreement#14-157 notices required by this agreement shall be written and shall be sent by registered or certified 23. All approvals and nog re q mail to: Director City Manager Division of Sport Fish City of Seward P,O, Box 167 Alaska Dept.of Fish &Game P.O. Box 115526 . Seward, Alaska 99664 Juneau,Alaska 99811-5526 9 24. This agreement is complete and has no other encumbra o ect Area., reanda, attachments, or amendments with the following exceptions: Attachment A—. Seward Harbor 1 VU. FINANCIAL CONSIDERATIONS ADF&G will reimburse the CITY for accomplishing the purpose of this agreement in an amount not to exceed $29,682.00. The CITY will provide matching funds in the amount not less than one-third dof}the $2e f u .00 samount be fro ovi ded by /� ADF&G. (This is a match ratio of 75% Federal Aid Funds to 25% source and shall be claimed by ADF&G as match for the federal funds provided by ADF&G.The CITY shall be required to provide not less than $9,894.00 to match the $29,682.00. The CITY will be reimbursed only for the cost of w k actually iil y completed be ei reimbursed for directly reaied andkallocable to ad it the project and which ADF&G has approved. The incurred while completing the project. Reimbursement will be made within 30 days of receipt and be adequately a , by ADF me to a request for ation may copies s of All requests for invoices, payroll ledgers, equipment logs, contract payments, e. Documentation / payments, etc. In the event of a late payment, ADF&G will not pay late fees. Requests for reimbursement shall be mailed no more frequently than once a month to Valerie Blajeski at: State of Alaska Department of Fish and Game Sport Fish Division 525\N.67th Avenue Anchorage, Alaska 99518-1599 The CITY shall maintain a separate set of accounting records for this project and shall retain these records for a period of three years from the termination of the agreement. These records shall be made available to the state for audit purposes. To document the required match to be provided by the CITY as specified in paragraph V. a., all requests for reimbursement will be paid at the rate of 75% of the requested reimbursement until the amount specified in paragraph IV. a. is reached. With the exception of the final payment, requests for reimbursement shall be in amounts not less than$10,000. If the CITY chooses to make monthly billings, such billings will be held by ADF&G until the total amount reaches at least $10,000. 60 . . Alaska Dept.of Fish and Game Cooperative Agreement#14-157 VIII. APPROVING SIGNATURES kV WITNESS WHEREOF; the parties hereto have caused thi� Coopena�veA0reemen�iobeexeou�adaaofthod a L of �u� o/gna�uroUo/uw. o last CITY OF SEWARD I 1,<- ,/.1::: /„/ II: ' J/ �� Manage r 7 x \ � ///~'� �/\ �� ° Date • ALASKA DEPARTMENT OF FISH AND GAME ;.Z at_ A-7- /l ( w - ' ~ ~~^~' Sunny Haight Director L� U��ionofSpo� F�h ` � ~~~ Division of Administrative Services v /2-/- '7 /° , '/ '_ / / /|/_ / / ��//�' Date � Date 61 Alaska Dept.of Fish and Game Cooperative Agreement#14-157 Attachment A: Seward Harbor Project Area f l 1 1 1. ,./f i , 5 r I i / 1 1 i *-1 , I 1 � —� I/1 / 4 191 j # �� _ I ? Y ,.......—, 7'2 1-, Cri 1 Wit_ t i R . I !. jI -... I z q ? y p t p 7 J P: is 1'Y . % ,..,,,, i ti s ! �� il i ' .......a t { !# I,µ; $ , ice", l { tt]_I 1 1 9 S . `I.� i ' t a•} i ,a �`1 �h `' t.a ,r d t• N. tt CIR . y 17 4 S O. ' Y : 1 1 r^" 1 L 1 t 1• (1 r t i g ii t t 9 i , ii 1 F r t 5 'J .Z3 Y S ezi1 4 •;.?......„...-,7,.....„4�1 IL3 1€ i i y i I. S4 f"t R. I Y E t i teR 3 .. T 5;'",-41;41 ..fir . 2# z ti _ i I t' f ¢a 1,,,,s: v A.I i f k ..,A d�3 S a,% I f dl T :I 1.,t" , I I ? ,,, '.l1 ';\1- -; 17 ri kid is i !ati 62 3 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2014-070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,AUTHORIZING THE CITY MANAGER TO ENTER INTO A 48- MONTH FAIR MARKET VALUE LEASE AGREEMENT WITH KONICA MINOLTA BUSINESS SOLUTIONS FOR SEVEN REPLACEMENT COPIERS FOR A BASE AMOUNT OF $1,896.64 PER MONTH WHEREAS, the City has seven copy machines that have reached the end of their lease agreements—the Harbor,Fire,Police,Electric,and Library Departments,and two City Hall copiers, including the City's main high-capacity copier; and WHEREAS,the City advertised for competitive bids for all copiers to achieve cost savings and received four quotes for lease,maintenance,and supplies,with various levels of responsiveness in terms of features, service, and response times; and WHEREAS, proposals were evaluated on the basis of service and maintenance response times, cost, references, and copier features/functionality; and WHEREAS, the proposal by Konica Minolta Business Solutions ("KMBS") received the highest score,offering a 6-hour response time,meeting all of the required features and functions,and at a base price of$207.04 per month for the downstairs copier,plus an estimated$46.50 per month for copies, for a total monthly cost of approximately$253.54,versus the cost of the current copier of $516.90 per month; and WHEREAS, the base price of the remaining copiers, including fax machine and library vending option,averages$170 per month,plus copies at$0.009 for black and white,and$0.042 for color copies, inclusive of all supplies, support, and maintenance (excluding paper). NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,that: Section 1. The City Manager is authorized to enter into a 48-month lease agreement with Konica Minolta Business Solutions for replacement copiers utilizing the Standard Agreement with Western States Cooperative Agreement, as amended in accordance with the proposal submitted by KMBS in response to the City's Request for Proposals for Copiers/Printers, in substantial form as attached hereto and incorporated herein. The contract is let in an amount not to exceed $1,896.64 per month for seven copiers, inclusive of the average monthly copy usage,plus supplies, support,and maintenance. 63 CITY OF SEWARD, ALASKA RESOLUTION 2014-070 Section 2. There are sufficient monies within the current operating budget to pay for the new copier contract and no new appropriation is needed. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 11th day of August, 2014. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 64 Agenda Statement 4„1.,:1041 OF SF� Meeting Date: August 11, 2014 � To: Seward City Council ASK; From: Jim Hunt, City Manager Agenda Item: 48-Month Lease for Seven Copiers, including supplies, support, and maintenance BACKGROUND & JUSTIFICATION: The City issued a Request for Proposals ("RFP") for copier/printer services in order to replace seven copiers in the City which have reached the end of their lease terms. Those copiers are located in the City Hall basement (high capacity production machine), the City Hall mailroom, Police, Fire, Harbor, Library, and Electric Departments. In response to the RFP, the City received proposals from four vendors. Proposals were scored based on response time, references, machine features and cost. The firm receiving the highest score was Konica Minolta Business Solutions, offering a six-hour response time. This vendor services numerous local government and school district locations within the Kenai Peninsula Borough, and has positive recommendations. The vendor utilizes the Western States Contracting Alliance ("WSCA"), a multi-state contract used by states when approved by the State's purchasing director. Alaska is party to the WSCA, and the City will utilize the contract terms and conditions from the Western States Contracting Alliance for this lease agreement. INTENT: To enter into a 48-month lease agreement with Konica Minolta Business Solutions for seven copier/printers to ensure reliable copier services at various locations throughout the City. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): X 2. Strategic Plan (document source here): X 3. Other (list): X FISCAL NOTE: The City is expected to save money on both the base cost of the copiers and lower per-copy charges, compared to the City's current copier contracts. Funding for monthly lease payments is included in each department's budget. Approved by Finance: ATTORNEY REVIEW: Yes No X RECOMMENDATION: Approve Resolution 2014- DAD authorizing the city to enter into a 48-month lease agreement with Konica Minolta Business Solutions, utilizing the WSCA contract, to replace seven copier/printers, including consumable supplies, maintenance, and support. 65 PARTICIPATING ADDENDUM WSCA-NASPO COOPERATIVE PURCHASING ORGANIZATION Contract Title : Multi-Function Copiers Administered by the State of Alaska (hereinafter "Lead State") MASTER AGREEMENT Konica Minolta Business Systems Master Agreement No: 1715 (hereinafter "Contractor") And City of Seward, Alaska (hereinafter "Participating State/Entity") Page 1 of 3 1. Scope: This addendum covers the Multi-Function Copier Agreement by the State of Alaska for use by state agencies and other entities located in the State of Alaska, as authorized by that state's statutes to utilize state/entity contracts with the prior approval of the state's chief procurement official. 2. Participation: Use of specific WSCA-NASPO cooperative contracts by agencies, political subdivisions and other entities (including cooperatives) authorized by an individual state's statutes to use state/entity contracts are subject to the prior approval of the respective State Chief Procurement Official. Issues of interpretation and eligibility for participation are solely within the authority of the State Chief Procurement Official. 3. Participating State Modifications or Additions to Master Agreement: No known changes are required to the Master Agreement. 4. Lease Agreements: Terms of the Lease Agreement include a 48-month Fair Market Value Lease, with black and white copies charged at $0.0090 per copy, and Color copies charged at$0.042 per copy, with no overages beyond the estimates listed below, plus monthly base charge as indicated,in response to the Request for Proposals, which is attached hereto and incorporated herein, as follows: Basement Copier= $207.04 plus 250 color, 4,000 b&w Mail Room Copier= $212.63 plus 2,000 color, 6,000 b&w Fire Department Copier= $148.37 plus 1,000 color, 3,000 b&w Harbor Department Copier= $148.37 plus 260 color, 3,500 b&w Electric Department Copier=$212.63 plus 1,000 color, 3,000 b&w Library Department Copier= $126.18 plus 3,000 b&w with coin op Police Department Copier= $169.00 plus 1,500 color, 3,500 b&w The equipment lease agreement terms and conditions included in the Master Agreement have been approved for use by the City of Seward and are subject to annual appropriation by the City Council of the City of Seward, Alaska. 5. Primary Contacts: The primary contact individuals for this Participating Addendum are as follows (or their named successors): WSCA-NASPO 66 PARTICIPATING ADDENDUM WSCA-NASPO COOPERATIVE PURCHASING ORGANIZATION Contract Title : Multi-Function Copiers Administered by the State of Alaska (hereinafter "Lead State") MASTER AGREEMENT Konica Minolta Business Systems Master Agreement No: 1715 (hereinafter "Contractor") And City of Seward, Alaska (hereinafter "Participating State/Entity") Page 2 of 3 Name Paul Stembler Telephone 612-284-4316 E-mail pstembler @wsca-naspo.org Lead State Name Shannon Berry Address Nevada Purchasing Division — 515 East Musser Street, Carson City, NV 89701 Telephone (775) 684-0171 Fax (775) 684-0188 E-mail sberry @admin.nv.gov Contractor Name Address Telephone Fax E-mail Participating Entity Name City of Seward,Jim Hunt, City Manager Address P.O. Box 167, Seward, Alaska 99664-0167 Telephone (907)224-4012 Fax (907)224-4038 E-mail jhunt @cityofseward.net 6. Subcontractors: All [contactor] dealers and resellers authorized in the State of Alaska, as shown on the dedicated [contractor] (cooperative contract) website, are approved to provide sales and service 67 PARTICIPATING ADDENDUM WSCA-NASPO COOPERATIVE PURCHASING ORGANIZATION Contract Title : Multi-Function Copiers Administered by the State of Alaska (hereinafter "Lead State") MASTER AGREEMENT Konica Minolta Business Systems Master Agreement No: 1715 (hereinafter "Contractor") And City of Seward, Alaska (hereinafter "Participating State/Entity") Page 3 of 3 support to participants in the NASPO Master Price Agreement. The [contractors] dealer's participation will be in accordance with the terms and conditions set forth in the aforementioned Master Agreement. 7. Orders: Any Order placed by a Participating Entity or Purchasing Entity for a Product or Service available from this Master Agreement shall be deemed to be a sale under (and governed by the prices and other terms and conditions) of the Master Agreement unless the parties to the Order agree in writing that another contract or agreement applies to such Order. IN WITNESS WHEREOF, the parties have executed this Addendum as of the date of execution by both parties below. Participating State: Contractor: By: By: Name: Name: Title: Title: Date: Date: [Additional signatures as required by Participating State] [Please email fully executed PDF copy of this document to PA@Pwsca-naspo.org to support documentation of participation and posting in appropriate data bases] 68 For Purchasing Use Only: RFP/CONrRACT N 1715 MASTER SERVICE AGREEMENT FOR SERVICES OF INDEPENDENT CONTRACTOR A Contract between the Western States Contracting Alliance (WSC.A)Acting by and through the State of Nevada Department of Administration Purchasing Division 515 E Musser Street, Room 300 Carson City NV 89701 Contact: Lyn Callison Telephone: (775) 684- 0198 • Fax: (775) 684-0188 and Konica Minolta Business Solutions USA Inc. 2120 Washington Blvd. Suite 450 Arlington VA 22204-5711 Contact: Kimberley Talbot Telephone: (703) 842-3231 • Fax: (703) 271-1188 Pursuant to Nevada Revised Statute (NRS) 277.100, NRS 277.110, NRS 333.162(1)(d), and NRS 333.480 the Chief of the Purchasing Division of Nevada is authorized to enter into cooperative group-contracting consortium. The Western States Contracting Alliance is a cooperative group-contracting consortium for state government departments, institutions, agencies and political subdivisions (i.e., colleges, school districts, counties, cities, etc.,) for the states of Alaska, Arizona, California, Colorado, Hawaii, Idaho, Minnesota, Montana, Nevada, New Mexico, Oregon, South Dakota,. Utah, Washington and Wyoming. In consideration of the above premises, the parties mutually agree as follows: 1. REQUIRED APPROVAL. This contract shall not become effective until and unless approved by the Western States Contracting Alliance Board of Directors. 2. DEFINITIONS. "WSCA"means the Western States Contracting Alliance. "State" and/or"Lead State" means the State of Nevada and its state agencies, officers, employees and immune contractors as defined in NRS 41.0307. "Participating State(s)" means state(s) that have signed (and not revoked) an Intent to Contract at the time of the award of this contract, or who have executed a Participating Addendum. "Buyer"means any WSCA agency or political subdivision participating under this contract. "Contractor" and/or Contracting Agency" means a person or entity that performs services and/or provides goods for WSCA under the terms and conditions set forth in this contract. "Solicitation" means RFP 1715 incorporated herein as Attachment AA. "Fiscal Year" is defined as the period beginning July 1 and ending June 30 of the following year. 3. CONTRACT TERM. This contract shall be effective from June 1,2009, upon execution by the State of Nevada on behalf of the Western States Contracting Alliance, sales may not be placed until the start Effective 04/07 Page I of 12 69 t ` date se t._ a_participation state in its Participation Addendum, to June 30, 2012 with the option to extend for two (2) one (1) year terms, unless sooner terminated by either party as specified in paragraph (21). 4. CANCEI.,I:,ATION OF CON'1 RAC'I'; NOTICE. Unless otherwise stated in the special. terms and conditions, any contract entered into as a result of the Solicitation may be canceled by either party upon written notice sixty (60) days prior to the effective date of the cancellation. Further, any Participating State may cancel its participation upon thirty (30) days written notice, unless otherwise limited or stated in the special terms and conditions of the Solicitation. Cancellation may be in whole or in part. Any cancellation under this provision shall not affect the rights and obligations attending orders outstanding at the time of cancellation, including any right of any Participating State to indemnification by the Contractor, rights of payment for goods/services delivered and accepted, and rights attending any warranty or default in performance in association with any order. Cancellation of the contract due to Contractor default may be immediate. 5. INCORPORATED DOCUMENTS. The parties agree that the scope of work shall be specifically described; this contract incorporates the following attachments in descending order of constructive precedence: ATTACHMENT AA: SOLICITATION # 1715 (Scope of Work) and AMENDMENT 1.; ATTACHMENT BB: SERVICE LEVEL AGREEMENT (SLA) ATTACHMENT CC WSCA FORMS INCLUDING ADDENDUM 1 ATTACHMENT DD: CONTRACTOR'S RESPONSE A Contractor's attachment shall not contradict or supersede any WSCA specifications, terms or conditions without written evidence of mutual assent to such change appearing in this contract. 7. ASSENT. The parties agree that the terms and conditions listed on incorporated attachments of this contract are also specifically a part of this contract and are limited only by their respective order of precedence and any limitations specified. 8. BID SPECIFICATIONS. Contractor certifies that any deviation from the specifications in the scope of work, :incorporated herein as part of Attachment AA, have been clearly indicated by Contractor in its response, incorporated herein as Attachment DD; otherwise, it will be considered that the bid is in strict compliance. Any BRAND NAMES or manufacturers' niiinbers are stated in the specifications are intended to establish a standard only and are not restrictive unless the Solicitation states "no substitute," and unless so stated, bids have been considered on other makes, models or brands having comparable quality, style, workmanship and performance characteristics. Alternate bids offering lower quality or inferior performance have not been considered. 9. ACCEPTANCE OR REJECTION OF BIDS, AND AWARD. WSCA has the right to accept or reject any or all bids or parts of bids, and to waive inforrnalities therein. This contract is based the lowest responsive and responsible bid and meets the specifications of the Solicitation and terms and conditions thereof. Unless stated otherwise in the Solicitation, WSCA has the right to award items separately or by grouping items in a total lot. 10. BID SAMPLES. Any required samples have been specifically requested in the Solicitation. Samples, when required, have been furnished free of charge. Except for those samples destroyed or mutilated in testing, samples will be returned at a bidder's request, transportation collect. 11. CONSIDERATION. The parties agree that Contractor will provide the product services specified in paragraph (5) at a cost of $ Various Rates for Groups A and B Only per Attachment DD, Cost Proposal. Unless otherwise stated in the special terms and conditions, for the purpose of award, offers made in accordance with the Solicitation must be good and firm for a period of ninety (90) days from Lffe.crive 04/07 Page 2 of 12 70 the date.of bid opening. Contracted prices represent ceiling prices for the supplies and services offered. The Contractor shall report to the Lead State any price reduction or discount, or other more favorable terms offered to any WSCA Purchasing Entity and the Contractor agrees to negotiate in good faith to re-establish ceiling prices or other more favorable terms and conditions applicable to future orders. Bid prices must remain firm for the full term of the contract. In the case of error in the extension of prices in the bid, the unit prices will govern. WSCA does not guarantee to purchase any amount under this contract. Estimated quantities in the Solicitation are for bidding purposes only and are not to be construed as a guarantee to purchase any amount. Unless otherwise stated in the special terms and conditions offers made in accordance with the Solicitation must be good and firm for a period of ninety (90) days from the date of bid opening. Bid prices must remain firm for the full, term of the contract. In the case of error in the extension of prices in the bid, the unit prices will govern. If Contractor has quoted a cash discount based upon early payment; discounts offered for less than thirty (30) days have not been considered in making the award. The date from which discount time is calculated shall be the date a correct invoice is received or receipt of shipment, whichever is later; except that if testing is performed, the date shall be the date of acceptance of the merchandise. WSCA is not liable for any costs incurred by the bidder in proposal preparation. a. WSCA. Administrative Fee. The Contractor will remit to the WSCA a WSCA Administrative Fee in the amount of one half of one percent (.5%) of the total sales from this contract made payable to the "Western States Contracting Alliance". A statement verifying the total sales amount, incorporated herein as part of Attachment CC, must accompany the remittance. This remittance will be due not later than 30 days after the last day of each calendar quarter. 12. PAYMENT. Payment for completion of a contract is normally made within thirty (30) days following the date the entire order is delivered or the date a correct invoice is received, whichever is later. After forty-five (45) days the Contractor may assess overdue account charges up to a maximum rate of one (1) percent per month on the outstanding balance. Payments will be remitted by mail. Payments may be made via a Participating State's "Purchasing Card." 13. TAXES. Prices shall be exclusive of state sales and federal excise taxes. Where a Participating State is not exempt from sales taxes on sales within its state, the Contractor shall add the sales taxes on the billing invoice as a separate entry. Contractor will be responsible to pay all taxes, assessments, fees, premiums, permits, and licenses required by law. The Lead State's real property and personal property taxes are the responsibility of Contractor in accordance with NRS 361.157 and NRS 361.159. Contractor agrees to be responsible for payment of any such government obligations not paid by its subcontractors during performance of this contract. Nevada may set-off against consideration due any delinquent government obligation in accordance with NRS 353C.190. 14. FINANCIAL OBLIGATIONS OF PARTICIPATING STATES. Financial obligations of Participating States are limited to th.e orders placed by the departments or other state agencies and institutions having available funds. Participating States incur no financial obligations on behalf of political subdivisions. Unless otherwise specified in the Solicitation, the resulting award(s) will be permissive. 15. ORDER NUMBERS. Contract order and purchase order numbers shall be clearly shown on all acknowledgments, shipping labels, packing slips, invoices, and on all correspondence. 16. REPORTS. The Contractor shall submit quarterly reports to the WSCA Contract Administrator showing the quantities and dollar volum.e of purchases by each Participating State, incorporated herein as part of Attachment CC. 17. DELIVERY. The prices bid shall be the delivered price to any WSCA state agency or political subdivision. All deliveries shall be F.O.B. destination with all transportation and handling charges paid by the Contractor. Responsibility and liability for loss or damage shall remain with the Contractor until final inspection and acceptance, when responsibility shall pass to the Buyer except as Ei ective 04/07 Page 3 of 12 71 to latent defects, fraud and Contractor's warranty obligations. The minimum shipment amount will be found in the special terms and conditions. Any order for less than the specified amount is to be shipped with the freight prepaid and added as a separate item on the invoice. Any portion of an order to be shipped without transportation charges that is back-ordered shall be shipped without charge. 18. HAZARDOUS CHEMICAL INFORMATION. The Contractor will provide one set of the appropriate material safety data sheet(s) and container label(s) upon delivery of a hazardous material to any Buyer. All safety data sheets and labels will be in accordance with each Participating State's requirements. 19. INSPECTIONS. Goods furnished under this contract shall be subject to inspection and test by the Buyer at times and places determined by the Buyer. If the Buyer finds goods furnished to be incomplete or in non-compliance with bid specifications, the Buyer may reject the goods and require Contractor to either correct them without charge or deliver them at a reduced price which is equitable under the circumstances. If Contractor is unable or refuses to correct such goods within a time deemed reasonable by the Buyer, the Buyer may cancel the order in whole or in part. Nothing in this paragraph shall adversely affect the Buyer's rights including the rights and remedies associated with revocation of acceptance under the Uniform Commercial Code. 20. INSPECTION &AUDIT. a. Books and Records. The Contractor will maintain, or supervise the maintenance of all records necessary to properly account for the payments made to the Contractor for costs authorized by this contract. Contractor agrees to keep and maintain under generally accepted accounting principles (GAAP) full, true and complete records, contracts, books, and documents as are necessary to fully disclose to WSCA, the State or United States Government, or their authorized representatives, upon audits or reviews, sufficient information to determine compliance with all state and federal regulations and statutes. b. Inspection & Audit. Contractor agrees that the relevant books, records (written, electronic, computer related or otherwise), including, without limitation, relevant accounting procedures and practices of Contractor or its subcontractors, financial statements and supporting documentation, and documentation related to the work product shall be subject, at any reasonable time, to inspection, examination, review, audit, and copying at any office or location of Contractor where such records may be found, with or without notice by WSCA; the United States Government; the State Auditor or its contracted examiners, the Department of Administration, Budget Division, the Nevada State Attorney General's Office or its Fraud Control Units, the State Legislative Auditor, and with regard to any federal funding, the relevant federal agency, the Comptroller General, the General Accounting Office, the Office of the Inspector General, or any of their authorized representatives. All subcontracts shall reflect requirements of this paragraph. c. Period of Retention. All books, records, reports, and statements relevant to this contract must be retained a minimum four (4) years after the contract terminates or or until all audits initiated within the four (4) years have been completed, whichever is later, and for five (5) years if any federal funds are used in the contract. The retention period runs from the date of payment for the relevant goods or services by the State, or from the date of termination of the Contract, whichever is later. Retention time shall be extended when an audit is scheduled or in progress for a period reasonably necessary to complete an audit and/or to complete any administrative and judicial litigation which may ensue. Effective 04/07 Page 4 of 12 72 21. CONTRACT TERMINATION. Any of the following events shall constitute cause for WSCA to declare Contractor in default of the contract: (1) nonperformance of contractual requirements; and/or (2) a material breach of any term or condition of this contract. WSCA shall issue a written notice of default providing a period in which Contractor shall have an opportunity to cure. Time allowed for cure shall not diminish or eliminate Contractor's liability for liquidated or other damages. If the default remains, after Contractor has been provided the opportunity to cure, WSCA may do one or more of the following: (1) exercise any remedy provided by law; (2). terminate this contract and any related contracts or portions thereof; (3) impose Iiquidated damages; and/or (4) suspend Contractor from receiving future bid solicitations. Winding Up Affairs Upon Termination. In the event of termination of this contract for any reason, the parties agree that the provisions of this paragraph survive termination: i. The parties shall account for and properly present to each other all claims for fees and expenses and pay those which are undisputed and otherwise not subject to set off under this contract. Neither party may withhold performance of winding up provisions solely based on nonpayment of fees or expenses accrued up to the time of termination; ii. Contractor shall satisfactorily complete work in progress at the agreed rate (or a pro rata basis if necessary) if so requested by WSCA; iii. Contractor shall execute any documents and take any actions necessary to effectuate an assignment of this contract if so requested by WSCA; iv. Contractor shall preserve, protect and promptly deliver into WSCA's possession all proprietary information in accordance with paragraph(31). 22. REMEDIES. Except as otherwise provided for by law or this contract, the rights and remedies of the parties shall not be exclusive and are in addition to any other rights and remedies provided by law or equity, including, without limitation, actual damages, and to a prevailing party reasonable attorneys' fees and costs. It is specifically agreed that reasonable attorneys' fees shall include without limitation $125 per hour for attorneys employed by the Lead State. Nevada may set off consideration against any unpaid obligation of Contractor to any State agency in accordance with NRS 353C.190. 23. LIMITED LIABILITY. Nevada will not waive and intends to assert available NRS chapter 41 liability limitations in all cases. Contract liability of both parties shall not be subject to punitive damages. Liquidated damages shall not apply unless otherwise specified in the incorporated attachments. Damages for any breach by the Lead State shall never exceed the amount of funds appropriated for payment under this contract,but not yet paid to Contractor, for the fiscal year budget in existence at the time of the breach. Damages for any Contractor breach shall not exceed 150% of the contract maximum "not to exceed" value. Contractor's tort liability shall not be limited. 24. FORCE MAJEURE. Neither party to this contract shall be deemed to be in violation of this contract if it is prevented from performing any of its obligations hereunder due to strikes, failure of public transportation, civil or military authority, act of public enemy, accidents, fires, explosions, or acts of God, including, without limitation, earthquakes, floods,winds,or storms. In such an event the intervening cause must not be through the fault of the party asserting such an excuse, and the excused party is obligated to promptly perform in accordance with the terms of the contract after the intervening cause ceases. WSCA may terminate this contract after determining such delay or default will reasonably prevent successful performance of the contract. 25. INDEMNIFICATION. To the fullest extent permitted by law, Contractor shall indemnify, hold harmless and defend, not excluding the State's right to participate, Nevada from and against all liability, claims, actions, damages, losses, and expenses, including, without limitation, reasonable attorneys' fees Iftec;ive 04/07 Page 5 of 12 73 • and costs, arising out of any alleged negligent or willful acts or omissions of Contractor, its officers, employees and agents. The Contractor shall release, protect, indemnify and hold WSC.A and the respective states and their officers, agencies, employees, harmless from and against any damage, cost or liability, including reasonable attorney's fees for any or all injuries to persons, property or claims for money damages arising from acts or omissions of the contractor, his employees or subcontractors or volunteers. 26. INSURANCE SCHEDULE. Unless expressly waived in writing by the Lead State or Participating States, Contractor, as an independent contractor and not an employee of the Lead State or Participating States, must carry policies of insurance in amounts specified in this Insurance Schedule and/or any Insurance Schedule agreed by Contractor and a Participating State via a participating addendum, and pay all taxes and fees incident hereunto. The Lead State and Participating States shall have no liability except as specifically provided in the contract. The Contractor shall not commence work before: 1) Contractor has provided the required evidence of insurance to the Lead State. The Lead State's approval of any changes to insurance coverage during the course of performance shall constitute an ongoing condition subsequent this contract. Any failure of the Lead State to timely approve shall not constitute a waiver of the condition. Insurance Coverage: The Contractor shall, at the Contractor's sole expense, procure, maintain and keep in force for the duration of the contract the following insurance conforming to the minimum requirements specified below. Unless specifically stated herein or otherwise agreed to by the Lead State, the required insurance shall be in effect prior to the commencement of work by the Contractor and shall continue in force as appropriate until the latter of: 1. Final acceptance by the Lead State of the completion of this contract; or 2. Such time as the insurance is no longer required by the Lead State under the terms of this contract. Any insurance or self-insurance available to the State shall be excess of and non-contributin.g with any insurance required from Contractor. Contractor's insurance policies shall apply on a primary basis. Until such time as the insurance is no longer required by the Lead State, Contractor shall provide the Lead State with renewal or replacement evidence of insurance no less than thirty (30) days before the expiration or replacement of the required insurance. If at any time during the period when insurance is required by the contract, an insurer or surety shall fail to comply with the requirements of this contract, as soon as Contractor has knowledge of any such failure, Contractor 'shall immediately notify the State and immediately replace such insurance or bond with an insurer meeting the requirements. Workers' Compensation and Employer's Liability Insurance 1) Contractor shall provie proof of worker's compensation insurance. 2) Employer's Liability insurance with a minimum limit of $500,000 each employee per accident for bodily injury by accident or disease. Commercial General Liability Insurance 1) Minimum Limits required: $2,000,000.00 General Aggregate $1,000,000.00 Products & Completed Operations Aggregate $1,000,000.00 Personal and Advertising injury $1,000,000.00 Each Occurrence 2) Coverage shall be on an occurrence basis and shall be at least as broad as ISO 1996 form CG 00 01 (or a substitute form providing equivalent coverage); and shall cover liability arising from Effective 04/07 Page 6 of 12 74 • premises, operations, independent contractors, completed operations, personal injury, products, civil lawsuits, Title.VII actions and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). Business Automobile Liability Insurance 1) Minimum Limit required: $1,000,000.00. Each Occurrence for bodily injury and property damage. 2) Coverage shall be for"any auto" (including owned, non-owned and hired vehicles). The policy shall be written on ISO form CA 00 01 or a substitute providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. Professional Liability Insurance 1) Minimum Limit required: $ Waived. Each Claim 2) Retroactive date: Prior to commencement of the performance of the contract 3) Discovery period: Three (3) years after termination date of contract. 4) A certified copy of this policy may be required. Umbrella or Excess Liability Insurance 1) May be used to achieve the above minimum liability limits. 2) Shall be endorsed to state it is "As Broad as Primary Policy" Commercial Crime Insurance Minimum Limit required: $Waived. Per Loss for Employee Dishonesty This insurance shall be underwritten on a blanket form amending the definition of "employee" to include all employees of the Vendor regardless of position or category. General Requirements: b. Waiver of Subrogation: Each liability insurance policy shall provide for a waiver of subrogation as to additional insureds. c. Cross-Liability: All required liability policies shall provide cross-liability coverage as would be achieve under the standard ISO separation of insureds clause. d. Deductibles and Self-Insured Retentions: Insurance maintained by Contractor shall apply on a first dollar basis without application of a deductible or self-insured retention unless otherwise specifically agreed to by the Lead State or Participating States. Such approval shall not relieve Contractor from the obligation to pay any deductible or self-insured retention. Any deductible or self-insured retention shall not exceed £rve thousand dollars ($50,000.00) per occurrence, unless otherwise approved. c. e. Policy Cancellation: Except for ten (10) days notice for non-payment of premium, each insurance policy shall be endorsed to state that; without thirty (30) days prior written notice to the Lead State, the policy shall not be canceled, non-renewed or coverage and !or limits reduced or materially altered, and shall provide that notices required by this paragraph shall be sent by certified mailed to the address identified on page 1 of the contract. f. Approved Insurer: Each insurance policy shall be: 1) Issued by insurance companies authorized to do business in the Lead State and Participating States or eligible surplus lines insurers acceptable to the Lead State and Participating States and having agents upon whom service of process may be made, and 2) Currently rated by A.M. Best as "A- VII" or better. Effective 04/07 Page 7 of 12 75 Evidence of Insurance: Prior to the start of any Work, Contractor must provide the following documents to the Lead State: 1) Certificate of Insurance: The Acord 25 Certificate of Insurance form or a form substantially similar must be submitted to the State to evidence the insurance policies and coverages required of Contractor. 2) Schedule of Underlying Insurance Policies: If Umbrella or Excess policy is evidenced to comply with minimum limits, a copy of the Underlyer Schedule from the Umbrella or Excess insurance policy may be required. Review and. Approval: Documents specified above must be submitted for review and approval by the Lead State prior to the commencement of work by Contractor. Neither approval by the Lead State nor failure to disapprove the insurance furnished by Contractor shall relieve Contractor of Contractor's full responsibility to provide the insurance required by this contract. Compliance with the insurance requirements of this contract shall not limit the liability of Contractor or its sub-contractors, employees or agents to the Lead State or others, and shall be in addition to and not in lieu of any other remedy available to the Lead State or Participating States under this contract or otherwise. The Lead State reserves the right to request and review a copy of any required insurance policy or endorsement to assure compliance with these requirements. Mail all required insurance documents to the Lead State identified on page one of the contract. 27. COMPLIANCE WITH LEGAL OBLIGATIONS. Any and al.l supplies, services and equipment hid and furnished shall comply fully with all applicable Federal and State laws and regulations. Contractor shall procure and maintain for the duration of this contract any state, county, city or federal license, authorization, waiver, permit, qualification or certification required by statute, ordinance, law, or regulation to be held by Contractor to provide the goods or services required by this contract. The Lead State may set-off against consideration clue any delinquent government obligation in accordance with NRS 353C.190. 28. WAIVER OF BREACH. Failure to declare a breach or the actual waiver of any particular breach of the contract or its material or nonmaterial terms by either party shall not operate as a waiver by such party of any of its rights or remedies as to any other breach. 29. SEVER.ABILITY. If any provision of this contract is declared by a court to be illegal or in conflict • with any law, the validity of the remaining terms and provisions shall not be affected; and the rights and obligations of the parties shall be construed and enforced as if the contract did not contain the particular provision held to be invalid. 30. ASSIGNMENT/DELEGATION. To the extent that any assignment of any right under this contract changes the duty of either party,increases the burden or risk involved, impairs the chances of obtaining the performance of this contract, attempts to operate as a novation, or includes a waiver or abrogation of any defense to payment by State, such offending portion of the assignment shall be void, and shall be a breach of this contract. Contractor shall not assign, sell, transfer, subcontract or sublet rights, or delegate responsibilities under this contract, in whole or in part, without the prior written approval of the WSCA Contract Administrator. Effective 04107 Page 8 of 12 76 • 31. OWNERSHIP OF PROPRIETARY INFORMATION. Any reports, histories, studies, tests, manuals, instructions, photographs, negatives, blue prints, plans, maps, data, system designs, computer code (which is intended to be consideration under the contract), or any other documents or drawings, prepared or in the course of preparation by Contractor (or its subcontractors) in performance of its obligations under this contract shall be the exclusive property of WSCA and all such materials shall be delivered into WSCA possession by Contractor upon completion, termination, or cancellation of this contract. Contractor shall not use, willingly allow, or cause to have such materials used for any purpose other than performance of Contractor's obligations under this contract without the prior written consent of WSCA. Notwithstanding the foregoing, WSCA shall have no proprietary interest in any materials licensed for use that are subject to patent, trademark or copyright protection. 32. PATENTS, COPYRIGHTS, ETC. The Contractor shall release, indemnify and hold WSCA, the State, and Participating States and their officers, agents and employees harmless from liability of any kind or nature, including the Contractor's use of any copyrighted or un-copyrighted composition, secret process, patented or unpatented invention, article or appliance furnished or used in the performance of this contract. 33. PUBLIC RECORDS. Pursuant to NRS 239.010, information or documents received from Contractor may be open to public inspection and copying. The State will have the duty to disclose unless a particular record is made confidential by law or a common law balancing of interests. Contractor may label specific parts of an individual document as a "trade secret" or "confidential" in accordance with NRS 333.333, provided that Contractor thereby agrees to indemnify and defend the State for honoring such a designation. The failure to so label any document that is released by the State shall constitute a complete waiver of any and all claims for damages caused by any release of the records. 34. CONFIDENTIALITY. Contractor shall keep confidential all information, in whatever form, produced, prepared, observed or received by Contractor to the extent that such information is confidential by law or otherwise required by this contract. 35. NONDISCRIMINATION. Contractor agrees to abide by the provisions of Title VI and Title VII of the Civil Rights Act of 1964 (42 USC 2000e), which prohibit discrimination against any employee or applicant for employment, or any applicant or recipient of services, on the basis of race, religion, color, or national origin; and further agrees to abide by Executive Order No. 11246, as amended, which prohibits discrimination on basis of sex; 45 CFR 90 which prohibits discrimination on the basis of age, and Section 504 of the Rehabilitation Act of 1973, or the Americans with Disabilities Act of 1990 which prohibits discrimination on the basis of disabilities. Contractor further agrees to furnish information and reports to requesting Participating Entities, upon request, for the purpose of determining compliance with these statutes. Contractor agrees to comply with each individual Participating State's certification requirements, if any, as stated in the special terms and conditions. This contract may be canceled if the Contractor fails to comply with the provisions of these laws and regulations. Contractor must include this provision in very subcontract relating to purchases by the States to insure that subcontractors and vendors are bound by this provision. 36. FEDERAL FUNDING. In the event federal funds are used for payment of all or part of this contract: a. Contractor certifies, by signing this contract, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency. This certification is made pursuant to the regulations implementing Executive Order 12549, Debarment and Suspension, 28 C.F.R. pt. 67, § 67.510, as published as pt. VII of the May 26, 1988, Federal Register (pp. 19160-19211), and any relevant program-specific regulations. This provision shall be required of every subcontractor receiving any payment in whole or in part from federal funds. Effective 04/07 Page 9of12 77 b. Contractor and its subcontractors shall comply with all terms, conditions, and requirements of the Americans with Disabilities Act of 1990 (P.L. 101-136), 42 U.S.C. 12101, as amended, and regulations adopted thereunder contained in 28 C.F.R. 26.101-36.999, inclusive, and any relevant program-specific regulations. c. Contractor and its subcontractors shall comply with the requirements of the Civil Rights Act of 1964, as amended, the Rehabilitation Act of 1973, P.L. 93-112, as amended, and any relevant program-specific regulations, and shall not discriminate against any employee or offeror for employment because of race, national origin, creed, color, sex, religion, age, disability or handicap condition (including AIDS and AIDS-related conditions.) 37. LOBBYING. The parties agree, whether expressly prohibited by federal law, or otherwise, that no funding associated with this contract will be used for any purpose associated with or related to lobbying or influencing or attempting to lobby or influence for any purpose the following: a. Any federal, state, county or local agency, legislature, commission, counsel or board; b. Any federal, state, county or local legislator, commission member, counsel member, board member, or other elected official; or c. Any officer or employee of any federal, state, county or local agency; legislature, commission, counsel or board. 38. NON-COLLUSION. Contractor certifies that this contract and the underlying bid, have been arrived at independently and have been without collusion with, and without any agreement, understanding or planned common course of action with, any other vendor of materials, supplies, equipment or services described in the invitation to bid, designed to limit independent bidding or competition. 39. WARRANTIES. a. Uniform Commercial Code. The Contractor acknowledges that the Uniform Commercial Code applies to this contract. In general, the contractor warrants that: (a) the product will do what the salesperson said it would do, (b) the product will live up to all specific claims that the manufacturer makes in their advertisements, (c) the product will be suitable for the ordinary purposes for which such product is used, (d) the product will be suitable for any special purposes that the Buyer has relied on the Contractor's skill or judgment to consider. b.General Warranty. Contractor warrants that all services, deliverables, and/or work product under this contract shall be completed in a workmanlike manner consistent with standards in the trade,.profession, or industry; shall conform to or exceed the specifications set forth in the incorporated attachments; and shall be fit for ordinary use, of good quality, with no material defects. c. System Compliance. Contractor warrants that any information system application(s) shall not experience abnormally ending and/or invalid and/or incorrect results from the application(s) in the operating and testing of the business of the State. 'This warranty includes, without limitation, century recognition, calculations that accommodate same century and multicentury formulas and data values and date data interface values that reflect the century. 40. CONFLICT OF INTEREST. Contractor certifies that it has not offered or given any gift or compensation prohibited by the state laws of any WSCA participants to any officer or employee of WSCA or participating states to secure favorable treatment with respect to being awarded this contract. 41. INDEPEN_DENT CONTRACTOR. Contractor shall be an independent contractor, and as such shall have no authorization, express or implied to bind WSCA or the respective states to any agreements, settlements, liability or understanding whatsoever, and agrees not to perform any acts as agent for WSCA or the states, except as expressly set forth herein. Effective 04/07 Page 10 of 12 78 • • 42. POLITICAL SUBDIVISION...._PARTICIPATION. Participation under this contract by political subdivisions (i.e., colleges, school districts, counties, cites, etc.,) of the WSCA Participating States shall be voluntarily determined by the political subdivision. The Contractor agrees to supply the political subdivisions based upon the same terms, conditions and prices. 43. PROPER AUTHORITY. The parties hereto represent and warrant that the person executing this contract on behalf of each party has full power and authority to enter into this contract. Contractor acknowledges that as required by statute or regulation this contract is effective only after approval by the WSCA Board of Directors and only for the period of time specified in the contract. Any services performed by Contractor before this contract is effective or after it ceases to be effective are performed at the sole risk of Contractor. The Contractor certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction (contract) by any governmental department or agency. 44. GOVERNING LAW; JURISDICTION. This contract and the rights and obligations of the parties hereto shall be governed and construed in accordance with the laws of the state of Nevada, without giving effect to any principle of conflict-of-law that would require the application of the law of any other jurisdiction. The parties consent to the exclusive jurisdiction of the First Judicial District Court, Carson City, Nevada for enforcement of this contract. The construction and effect of any Participating Addendum or order against the contract(s) shall be governed by and construed in accordance with the laws of the Participating State. Venue for any claim, dispute or action concerning an order placed against the contract(s) or the effect of a Participating Addendum or shall be in the Purchasing State. 45. SIGNATURES IN COUNTERPART. Contract may be signed in any number of counterparts, each of which shall be an original,but all of which together shall constitute one in the same instrument. 46. ENTIRE CONTRACT AND MODIFICATION. This contract and its integrated attachment(s) constitute the entire agreement of the parties and such are intended as a complete and exclusive statement of the promises, representations, negotiations, discussions, and other agreements that may have been made in connection with the subject matter hereof. Unless an integrated attachment to this contract specifically displays a mutual intent to amend a particular part of this contract, general conflicts in language between any such attachment and this contract shall be construed consistent with the terms of this contract. The terms of this contract shall not be waived, altered, modified, supplemented or amended in any manner whatsoever without prior written approval of the WSCA. Contract Administrator. IN WITNESS WHEREOF, the parties hereto have caused this contract to be signed and intend to be legally bound thereby. Effective 007 Page 11 of 12 79 , 11 • yantaillibb.. ... • VP NA_t 6-00et Ctr as_ Inde e .dent a ractor's Signature Date ii- dependents Contractor's Title Signature Date Title 64174‘../z(".. dir 6:196) APPROVED BY WSCA BOARD OF DIRECTORS Greg SMith, Administrator, State of Nevada ( On • e3f), (Date) Approved as to form by: On 2- Af<- Deputy •ttoge?General for Attorney General (Date) Effective 04/07 Page 11 of 12 80 ATTACHMENT BB SERVICE LEVEL AGREEMENT Customer Level SLA Li Purpose The purpose of this addendum is to define service levels; penalties for the performance of the service levels; as well as provide the Customer with a defined replacement process for equipment performing below expectations. 1.2 Customer Service Level Agreement Vendor agrees to maintain the following service levels defined below as targets: Performance Criteria Target Level Average State-Wide Fleet Uptime 98%or Better Avera e On-Site State-Wide Response Time—Urban Zones 4 Hours or Less Average On-Site State-Wide Response Time—Rural Zones 8 Hours or Less T First Time Fix State-Wide 80%of all service calls or better These service levels will be measured on a quarterly basis between Vendor and the State. 1.3 Calculation of Service Level Points Once per quarter,Vendor will produce reporting to be measured against the Service Level Agreement and points will be assigned according to the following chart: Target Level Below Target 1 Below Target 2 Below Target 3 Below Target 4 Averse Fleet Li Aline 98%or Higher 97.9%-96% 95.9%-94% 94.9%-94% 93.9%or lower Possible Points 4 3 2 2 0 Target Level Below Target 1 Below Target 2 Below Target 3 Below Target 4 7.1 or more - Average On-Site 5.1—6 Urban Urban Response Time(in 4 or Less -Urban 4.1-5 Urban 9.1—10 6.1—7 Urban 11.1 or more- Hours) 8 or Less-Rural 8.1—9 R ural Rural 10.1—11 Rural Rural Possible Points 4 3 2 2 0 Target Level Below Target 1 Below Target 2 Below Target 3 Below Target 4 First Time Fix 80%or higher 79.9%-70% 69.9%-60% 59.9%-50% Less than 50% Possible Points 4 3 2 2 0 These points will be added to produce a total Service Level score. This score will be used to determine the subsequent penalty according to the following schedule where the penalty can be up to 4%of the previous quarter's service and supplies billing(expressed as a negative%). 81 1.4 Penalty Level Target Level Below Target 1 Below Target 2 Below 3 Below Target 4 Total Score 12—10 9—7 6-4 3—I 0 Penalty/Award as a percentage of quarterly service and 0% -1% -2% -3% -4% su lies bullin. _.... _.. The penalty shall be awarded to the Customers of the State as a credit on the following period's service and supplies invoice. 1.5 Equipment Performance Vendor guarantees each machine specified within any maintenance agreement will perform to either a)the monthly copies between service calls as measured by machine on a quarterly basis by group and segment listed below and/or b)the monthly uptime as measured by machine on a quarterly basis by segment listed below. Group Copier Segment Quarterly Uptime A and B All 95% C and D All 95% -� — All 95% Should any unit fail to maintain these copies between calls and or the monthly uptime, excluding service calls caused by operator error that system will be subject to replacement at the Customers discretion on a like-for-like basis with then current technology or the customer can elect to get a 1%credit of the previous quarter's service and supplies billings. Additionally,the Vendor shall prorate any included impressions as part of a Base Monthly Service for the days the unit was unavailable for usage. Supplier will be allowed 90 days from when the individual unit falls below the minimum uptime requirements to remedy any quality or reliability issues. A designated factory authorized technician must certify each unit's ability to produce acceptable impressions with acceptable uptime. The guarantee will remain in effect for the term of the contract or up to five (5) years from the date of purchase/lease, whichever is longer, provided the equipment has not been subjected to abuse or neglect and has been continuously covered by a Maintenance Contract. This replacement policy will remain in effect for the term of the contract and is subject to the Customer remaining current with supplier's payment requirements. 1.6 Additional Vendor Guarantees 1.6.1 Training—On-going training as requested by the Customer to be performed within two (2) weeks of requested date for on-site training and two (2) hours for phone/technical support. A penalty of $50.00 per incident that does not meet the turnaround time specified above to be credited on the next service bill. 1.6.2 Loaner Unit/Backup Production—If any unit is in operable for a period in excess of 72 hours,Vendor shall provide the Customer with either: i) A loaner unit of similar speed and capabilities until such time as the unit(s) covered by this agreement are operable,or ii) Provide the Customer with off-site manned production capabilities, for Groups C and D only, to accomplish the work of the unit that is inoperable at the sole cost of the Vendor. Such costs shall be limited to cost of production (service and supplies), equipment, labor, power, transportation of jobs to and from the off-site production facility and facilities. 1.6.3 Invoicing — Vendor shall maintain timely, accurate invoicing, less service run impressions, as defined below. Failure on the vendor's part to maintain these levels as 82 • defined shall result in a $50.00 per instance credit on the following invoice. Invoicing Guarantees shall be in effect following the first quarter's billings. Measurable Service Level Timely Invoicing Invoices will be submitted no later than the 25`s of the month immediately following the close of a billing period. Accurate Invoicing Invoices do not rNuire any credits for mis-billing Service Impressions Vendor will credit all service run impressions within the same billing ycle 2 State and Western States Contracting Alliance SLA's 2.1 Timely Reporting—Vendor shall produce reporting for both the State and WSCA within 45 days of the closing of the reporting period. Failure to do so will result in a penalty of$50.00 per day beyond the 45 day period. 2.2 Timely Payment of Administrative Fees — Vendor shall produce payment for both any State Specific Administrative Fee and the WSCA Administrative Fee within 45 days of the closing of the reporting period. Failure to do so will result in a penalty of$50.00 per day beyond the 45 day period. 2.3 Accuracy of Reporting—The State and WSCA may request at any point proof of the reporting accuracy through the data set supporting the reporting. If the State or WSCA.has reason to believe that multiple and systemic reporting errors exist, that cannot be corrected to the State's or WSCA's satisfaction; the State or WSCA may require an audit by a third party. If errors are found,the Successful vendor must reimburse the State or WSCA for the cost of the auditor as well as correcting any administrative fee errors. 2.4 Accuracy of Billing—The State and WSCA may request at any point proof of the billing accuracy through the data set supporting the billing. If the State or WSCA has reason to believe that multiple and systemic billing errors exist, that cannot be corrected to the State's or WSCA's satisfaction; the State or WSCA may require an audit by a third party. If errors are found, the Successful vendor must reimburse the State or WSCA for the cost of the auditor as well as correcting any billing errors. 2.5 Penalties — All penalties under this, section two (2) of the Service Level Agreement shall be payable to either the State or the Western States Contracting Alliance, accordingly. • 83 �� For Pui tuisng Use Only: uopnz»wTnuclon/s AMENDMENT#3 TO CONTRACT MASTER SERVICE AGREEMENT FOR SERVICES OF INDEPENDENT CONTRACTOR A Contract between the Western States Contracting Alliance(WSCA) Acting by and through the State of Nevada (Slate) Department of Administration, Purchasing Division 515 E Musser Street, Room 300 Carson City NV 89781 Contact: Shannon Berry,Assistant Chief Procurement Officer Telephone: (775) 084'Ul7| ° Fax: (775)884-U|0O Email: wbur�lithu\n.uv.1. 1,v, and Konica Minolta Business Solutions USA Inc. 2120 Washington Blvd. Suite 450 Arlington VA 22204-5711 Contact: Kristen McKenna, Senior Government Contracts Manager Telephone: (813) 207-8270 • Fax: (703) 271-1188 Email: | ' bJtt,us 1. AMENDMENTS, For and inconxidem,|uu ^/mumo| promises xnd6,th�rvaluable cnnu�on�iuusxUpm�siumof the original contract resulting from Request for Proposal #1715 and dated June 1. 2009,attached hereto as Exhibit A, remain in full force and effect with the exception of the following: A.This amendment is to extend the contract term for an additional nine months through March 31,2015. Current Contract Language: 3.CONTRACT TERM This contrac shall he effective from June 1,2009. uixm execution by the State of Nevada on i Alliance, } xbq�k�eJonh|the�o�dmcw�bfaymdiu�minu$otu hdm|yoy��\Ymmon 3��xCnpmuUn� oxco wammov/ in its Participation Addendum.to June 30.2014,unless sooner terminated by either party as specified in paragraph(21). Amended Contract Language: 3C{X�T��CTTERY�, Th�mmoo�m� ��||bc�O��Uv*bum /w�� |.Z00y`upuocxncu�vubytheOmueufNevmduuu ' sm�bynyonlo�oA^numc� behalf nf�eY�omomSm�m{lo i in its Participation Addendum, to March 31` 2015, unless sooner terminated by either party as specified in paragraph (21). 2. INCORPORATED D0CUME0't8. Exhibit A(Original Contract)is attached hereto, incorporated by reference herein and made a part of this amended contract. 3. REQUIRED APPROVAL. This amendment to the original contract shall not become effective until and unless approved by the Western States Contracting Alliance Boar of Directors. rev 07.,04 ro-' '~2 DV\YF[N[SS \YLOK�O[�c parties hereto have caused this amendment m the nd�no|omnonnwh��&x�|mum iumodoo6e| | ' J\ ( �.' � � � ' Signature � I�� d ` --'' / —� ----' m�TiUe APPROVED 8YWSCA BOARD 8FDIRECTORS / , ,./7 ' '�1:: j -- ,-..A25�—��./4(.��On G/ g Smith,A' rniuLnator,CIO-NV Stale Purchasing (Date) Approved as to lbrm by: ' ^�� /^^/"~ �.° ' ~ ` On ` '~ / ^''� ~ ' { ^ ' Deputy Attorney (Date) -- ' General . me) 07104 /v"'2"'x 85 iiimuroirirmw City of Seward, Alaska City Council Minutes Volume 39, Page June 9, 2014 CALL TO ORDER The June 9,2014 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Jean Bardarson. OPENING CEREMONY Assistant City Manager Ron Long led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Ristine Casagranda David Squires Dale Butts Iris Darling comprising a quorum of the Council; and Jim Hunt, City Manager Johanna Kinney, City Clerk Absent—Christy Terry, Marianna Keil CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Sherry Furlong encouraged the council to move on the transfer of land to the Friends of the Jesse Lee Home. That land had been vacant a long time and she admitted she was a fan of history and admired architecture. Furlong would like to see the building renovated and was happy there was some consideration to keep it in the public domain. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Darling/Casagranda) Approval of Agenda and Consent Agenda Squires placed Resolution 2014-052 on the consent agenda. Motion Passed Unanimous The clerk read the following approved consent agenda items: Resolution 2014-051, Authorizing The Discharge Of Fireworks By The Chamber Of Commerce During The 2014 Fourth Of July Celebration. Resolution 2014-052, Accepting The 2014 Volunteer Fire Assistance Grant (VFA) In The Amount Of $9,455.00 And Authorizing The 10% Matching Funds Of $945.50 And 86 City of Seward, Alaska City Council Minutes June 9, 2014 Volume 39, Page Appropriating Funds. Approval of the April 14, 2014 City Council Regular Meeting Minutes. Recommend Mayor Navarre appoint Cindy Ecklund to the Kenai Peninsula Borough Planning Commission. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Recognition for retiring Library Museum Director Patty Linville. Recognition for Spring Creek Correctional Center's 2014 Employee of the Year, Amy Komarek. Lemonade Day Proclamation. Borough Assembly Report, Sue McClure stated since her last report to the council, the assembly passed the budget. The School District Superintendent requested an extra$1.5 million and Mayor Navarre and the assembly approved $500,000. The borough's overall mill rate stayed the same, and the Seward Bear Creek Flood Service Area mill rate was increased by .25 mills. The assembly was considering an ordinance to implement a four percent borough wide borough accommodations(bed)tax. The proposed ordinance would not affect the City of Seward,as it was a city with an existing bed tax so therefore would be exempt. The borough was considering going to a by mail election. The assembly was also considering removing the "pro"and "con" statements on propositions in the voter pamphlet. City Manager's Report,Assistant City Manager Ron Long stated the following purchase order between $10,000 and $50,000 was approved by the City Manager since the last council meeting: $43,455 — Clearblu Environmental to purchase 4 Microbubble Aerators and 2 Control Panels. The sidewalk repair work was complete for this year. The hard decision was finding a stopping place, since there was no practical way to get it all done in one season. The work for this season was identified in cooperation with the affected community in order to prioritize the biggest ADA issues. Administration planned to bring council an annual funding request of $30,000 - $50,000 to plan each year for work on the remaining sections until they were completed. A resolution transferring site control of the Jesse Lee Home was being crafted and should come before council for approval in July. The Project Manager position would be advertised soon. In Public Works,the Dairy Hill Drainage Project was nearly complete, with one culvert left to install. At Lowell Point Wastewater Treatment Facility, aerators had been ordered and should arrive in the next few weeks. They would be installed and the intended outcome was to see the dissolved oxygen levels increase for decreased odors. The city had $3.4 million in funding to remove the sludge from both lagoons and refurbish the SMIC lagoon. In the Finance Department, staff was busy with the financial accounting system implementation. Staff training would be held the last week of June and the expected"Go-Live"date 87 City Council Minutes City of Seward, Alaska June 9, 2014 Volume 39, Page was July 1, 2014. Some of the benefits of the new system included ability for department heads to electronically process purchase orders and requisitions,approve timesheets,drill down to individual expense items, and view budget-to-actual information in real time. The Harbor received important parts that were believed to help resolve the hoist problems with the 250 ton lift. The next step was to get the hydraulic valve installed with the help of a technical expert. The approach to the new D float gangway was paved June 5, 2014. Three engineering firms submitted proposals to design the new fish cleaning station. R&M Consultants scored the highest during the evaluation process. In the Police Department,the Animal Control Shelter was closed last week for deep cleaning, painting,and sealing. Officer Morgan Woodard graduated from the Sitka Public Safety Academy on June 6, 2014. The Police Department assisted Seaview's Domestic Violence and Sexual Assault program with their First Annual Motorcycle Poker Run from Anchorage to Seward on June 7,2014. The City Manager acknowledged Officer Alan Nickell and three citizens who performed CPR and used the AED defibrillator on a person having a heart attack on the bike path. The subject was Medevac'd to Anchorage. In response to questions, Assistant City Manager Ron Long stated the $500,000 appropriated for sludge disposal came from the general fund reserves. Long added the bid packets would include a sludge removal plan. The borough had a site available, but it would be up to the occur at the contractor to dispose of the sludge. In response arance to Casagranda, the borough because hey�ontrolled the landfill, the contractor would need to get clearance Other Reports, Announcements and Presentations Kenai Peninsula Borough Bed Tax Initiative by Shanon Hamrick,Executive Director for Kenai Peninsula Tourism Marketing Council. PUBLIC HEARINGS—None UNFINISHED BUSINESS Ordinance 2014-003, Amending Title 14 Of The City's Code Of Ordinances To Provide For Interconnection Of Small Renewable Energy Sources To The City's Electrical Distribution System. (This ordinance had a public hearing on May 27, 2014. A motion to enact was made by Darling and seconded by Casagranda. The ordinance was then postponed to the June 9, 2014 meeting.) Long stated administration was asking to amend by substitution the appeal language proposed in their packet. The amendment added an administrative level of appeal initially, which they anticipated would take care of the majority of the appeals. The appellant then would have the right to appeal to the Planning and Zoning Commission,and then the Board of Adjustment(City Council). 88 City of Seward, Alaska June 9, 2019 City Council Minutes Motion (Casagranda/Darlin Volume 39, Page g) Amend Ordinance 2014-003 by substitution, implementing new appeal language to section 14.15.417. Darling liked the changes proposed for the appeal language. Squires was concerned with the length of the timeline on the appeal process. It would take over a hundred days if an appellant pursued each appeal option. Motion (Casagranda/Squires) Amend the primary amendment,changing the written decision timeline of the City Manager from 30 days to 20 days in proposed section 14.15.417(a)(2),section 2 of Ordinance 2014-003. Darling understood things came up, so she could understand a 30 day time limit. Secondary Amendment Motion Failed Yes: Squires, Casagranda, Bardarson No: Butts, Darling Primary Amendment Motion Passed Unanimous In response to Butts, most of the original language presented to the council was from other utilities. They had not consulted other utility agencies with this new substitution appeal language, but staff felt this appeal language was amenable for everybody. Main Motion Passed Unanimous INFORMATIONAL ITEMS AND REPORTS -None COUNCIL COMMENTS Butts congratulated Linville on her retirement and Komarek for her award. He was excited for Lemonade Day. Squires asked administration if they would invite the State Fire Marshal to a work session in the fall to discuss the state amendments to the 2012 International Building Codes and what the city's authority would be in these processes. He congratulated Linville in her retirement. Squires apologized for being gone at the last meeting;he was helping fight the Funny River Fire in Soldotna. Darling congratulated Linville on her retirement. Regarding the grant application approved tonight for the Fire Department, Darling encouraged staff to purchase locally. Bardarson encouraged the public to volunteer for the boards and commissions with empty seats and asked for help in encouraging others. 89 City of Seward, Alaska City Council Minutes 39, Pare June 9, 2014 Long congratulated Linville on her retirement and enjoyed working with her on the library project. He asked council to keep the Hunt family in their thoughts and prayers. CITIZEN COMMENTS Edward Athey acknowledged two volunteers sitting n'rhe dais that were up this morning at 2 a.m. on a boat fire call and thanked Butts and Squires for COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Butts noted he was able to get some rest after the boat fire call today. ADJOURNMENT The meeting was adjourned at 8:03 p.m. Johanna Kinney, CMC Jean Bardarson City Clerk Mayor (City Seal) 90 City of Seward,Alaska June 23, 2014 City Council Minutes Volume 39, Page CALL TO ORDER The June 23, 2014 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Jean Bardarson. OPENING CEREMONY Lieutenant Doreen Valadez led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Ristine Casagranda Marianna Keil David Squires Dale Butts Iris Darling Christy Terry comprising a quorum of the Council;and Kristin Erchinger, Finance Director Johanna Kinney, City Clerk Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING—None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Terry) Approval of Agenda and Consent Agenda Motion Passed Unanimous The clerk read the following approved consent agenda items: Resolution 2014-053,Authorizing An Amendment To The Five Year Contract For$670,821.00 With The State Of Alaska,Department Of Corrections,To Provide For Operating The Seward Community Jail And Housing Prisoners Charged And/Or Sentenced Under Alaska Statutes. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards - None Chamber of Commerce Report,Cindy Clock stated the halibut tournament would continue for one more week. The current leader was Mark Callister with a 260 pound halibut which was 91 City Council Minutes City of Seward,Alaska Volume 39, Pare June 23, 2014 aring caught on the One Day, Hill Norvell Alaskan Fishing Charters. acted to pro vde t affic Fourth of July festival and vendor spots were sold out. S ecuritas was cont control, Skinny Raven Sports would time the Mount tMhamber Races, ncheon was July 18n2014 with needed. The parade had 20 entries so far. The next Shanon Hamrick of the Kenai Peninsula Tourism Marketing Council,Borough would be addressing before the voters. tax issue consideration by the Kenai on coverage this year for the Mount Marathon Race,both the voters. There would be KTUU and KTVA stations would be in Seward covering the event. City Manager's Report,Finance Director Kris Erchinger stated the City Manager could not be present this evening due to illness. She stated the following purchase orders between$10,000 and $50,000 had been approved by the City Manager since the last council meeting:and, $21,500 0 to Cascadia Paving to repair various sections air for Bucket Truck Unit throughout 522 t city; International for parts to p In the Public Works Department,the ADA Sidewalk Improvement Proj e residents comof Lowed the sidewalk railing at City Hall was installed last week. A letter was s ent to Point advising of the upcoming sludge removal at the Lowell Point Wastewater Treatment Facility. This was published in the Seward Journal on June 19,2014. Staff was working with M.L.Foster to complete the Invitation To Bid. The aerators for the sewage lagoon were being delivered and staff anticipated installation soon. The department had contacted the State and hoped to have Third Avenue cleaned of all rocks and debris prior to July 4, 2014. In the Library, Kate Rullman accepted the Library Museum Technician position and was currently in training.The Collections Coordinator position was open for applications from interested and qualified candidates.The city looked forward to Valerie Kingsland coming on board as the new Library Museum Director in August. In the Harbor,an expert on the 250-Ton Travelift assisted the crew repair the travelift so the equipment was back in operation. R & M Consultants' proposal scored highest to design the new fish cleaning station. The contract was now being reviewed by the grant agency. The Harbormaster appreciated the opportunity he was given to participate in a three day professional grant writing workshop June 10 — 12, 2014. While in Anchorage, Harbormaster Funk met with the D float contractor on the subject of the missing plugs.The engineer and the Harbormaster would diligently pursue resolution of the issue. The city held a significant amount of retainage and the contractor's bond. The Harbor was preparing a grant application for matching funds to replace B, C, S and a portion of G floats. Casagranda noted now that the aerators were coming, she hoped they create an odor when there wasn't one currently,as it was the busy summer season. Erchinger would ask Hunt and Casey to respond to this concern. Bardarson noted federal funding jeopardizing highway funds was a headline in the paper today. She hoped that wouldn't affect the city's attempt to improve the roads in Seward. Other Reports, Announcements and Presentations 92 City of Seward, Alaska June 23, 2014 City Council Minutes Volume 39, Annual audit presentation for the year ending December 31,2013. Michelle D ewage from the city's auditing firm, BDO USA, presented the 2013 audit results to the City Council. PUBLIC HEARINGS - None UNFINISHED BUSINESS - None NEW BUSINESS Other New Business Items Discussion on sending a letter of support for Kenai Peninsula Borough Ordinance 2014-25, establishing an area-wide transient accommodations tax (bed tax) with exemptions within cities which levy a similar tax, subject to voter approval. Motion (Darling/Terry) Direct staff to prepare and send a letter in support of Kenai Peninsula Borough Ordinance 2014-25. Motion Passed Unanimous Discussion and direction on selling land currently leased to Harmon Properties, LLC in the Seward Marine Industrial Center. Motion (Keil/Terry) Postpone this discussion item to the July 14, 2014 City Council Meeting. Casagranda requested more information on this issue at the next meeting. Motion Passed Unanimous INFORMATIONAL ITEMS AND REPORTS - None COUNCIL COMMENTS Keil wished everyone a happy and safe Fourth of July and wished the runners good luck. She thanked the staff for their excellent participation in the audit. Keil appreciated their hard work and was glad the city was in a better financial situation. Terry had an opportunity to present to the People To People student group that came to Seward to learn about government and Seward's economy. There were 12 events throughout the summer and the city greeted them and visitors toured the museum. She hoped council would help greet them on these new dates. Terry wished a happy first birthday to Jack Kinney and gave her congratulations to Keil's daughter who married this weekend. 93 City o2 23, 2014 City Council Minutes June 2 Seward, Alaska Volume 39, Pa:e of Butts welcomed the new AVTEC director. He had been Butts qualified people to work in Seward and thought council sho uld start to look at this wished a Happy Fourth of July to everyone. r Squires was able to present at a People To People event ed workers, e also felt an issue�n their assistance. In addition to Butts' comments about qualified ped everyone town was affordable housing. They needed to work on MountrBenson and Squ�res hoped the had a safe Fourth of July. There was a recent res cue n volunteers working the race were prepared to stay there the entire time and that the runners were also prepared. Darling encouraged the people of Seward to get back k involved the best town and d cos blmissions. She hoped people would stop and think about how to make noted the unavailability of workers and stated Seward was at an all-time low unemployment rate in 25 years. There were a lot of jobs and not as many people. Bardarson wished everyone a happy and safe Fourth of July. She thanked the city, the Finance Department, and BDO for their work and presentation on the audit this evening and in preparation prior. Casagranda said the Seward Bear Creek Flood Service Area Board also had a seat open. Terry asked if the council would agree to send a welcome letter to the new director of AVTEC. CITIZEN COMMENTS—None COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS—None ADJOURNMENT The meeting was adjourned at 7:46 p.m. Johanna Kinney, CMC Jean Bardarson City Clerk Mayor (City Seal) 94 .,a.a 7 W W W .a N , NOWO OWDN Ca)K) �COp A_ AA L O Cn"'OAC 8 WCOO V 0 A w 0--,K2' N CO yy, p A a A o , OANNN Oco VO Oo N N NN E W CO CO CO NA • CO C• OO COO ACn�O N V NJ V.' A 4I, Lin A cn , O 0000 00, _ 00�00)�A itteoliiij ∎-•' , [217,11:748 �..°�..3' '3 . . °o o e eee e0p .WOW CAVNw N IlL! vm fill Zm77 D ZScm -10O n 7. 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