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City Council Work Session on Refuse Ordinance
Fact Sheet
September 14, 2015
• The City of Seward maintains a Certificate of Public Convenience and Necessity No. 618 through the Regulatory
Commission of Alaska for refuse services within Seward City limit boundaries (attachment',").
• Alaska Statute requires the regulation of public utilities''', including refuse. The Regulatory Commission of Alaska is
assigned responsibility for regulating public utilities.
• Regulation under the Regulatory Commission of Alaska is intended to allow and regulate an exclusive franchise for a
geographical area'. In other words,there is no other contractor with a valid permit,to provide refuse services
within the Seward City Limits.
• The City has contracted with a private contractor to provide refuse services since at least 1974 when it contracted
with Herman Leirer dba Seward Service, rather than invest in the equipment and personnel to provide this service.
• The City's current waste management contract was approved by the Seward City Council on August 13, 2012 via
Resolution 2012-068". The contract period is from January 1,2013 to December 31, 2019,with an option to extend
for three additional years'. The franchise agreement was approved by Seward City voters on October 2, 2012' by a
vote of 246 to 114,or 68%approval.
• Seward City Code mandates payment for refuse services (SCC 14.05.010).
• Seward City Code authorizes discontinuation of utility service based on nonpayment of any bills for utility service
(SCC 14.01.065(a)(5)).
Recent customer complaints:
1. Objection to the City's mandatory garbage service for those who prefer not to have the service,especially by those
who do not live in Seward other than seasonally.
2. Objection to the City having the ability to disconnect other utility services for unpaid refuse bills.
3. Request for waivers from the mandatory service for certain demographics (i.e. individuals on fixed income,
individuals on disability,seasonal residents).
City Council asked for proposed revisions to the City's refuse Ordinance. Draft Ordinance attached. Changes include:
1)clarifies refuse billing is not required on vacant lots; and 2) mandatory refuse service does not preclude individuals
from disposing of their own refuse but still requires payment for refuse service. Previous discussion items included
whether to exempt any demographic group from requirement to pay for refuse;whether to eliminate mandatory
garbage service requirements;whether to allow customers to request a three-month "vacation status"from refuse
billing;and whether the City could shut off other utilities for refusal to pay. There appeared to be no consensus to
change these other provisions.
'Regulatory Commission of Alaska Certificate of Public Convenience and Necessity No.618
"Regulatory Commission of Alaska Order Approving Application for Certificate and Closing Docket, U-99-22 Order No. 1 dated July
25,2000.
"'Alaska Statute 42.05 Alaska Public Utilities Regulatory Act
"/Regulatory Commission of Alaska Map of Refuse Utility Service Area
Seward City Council Resolution 2012-068 approved August 13,2012
"'City of Seward refuse franchise agreement with Alaska Waste effective January 1,2013
""Proposition language: "Do you approve a seven-year franchise agreement with Alaska Waste...for the collection and disposal of
garbage and refuse? The franchise agreement contains an option to extend for up to an additional three years. The agreement
allows for costs to be adjusted annually based on 140%of the consumer price index. The agreement provides an opportunity for
period rate reviews with all other consumer rates to be set by resolution of the City Council."
Sponsored by: Hunt
Introduction:
Public Hearing:
Enactment:
CITY OF SEWARD, ALASKA
ORDINANCE 2015-XXX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING PORTIONS OF SEWARD CITY CODE § 14.05.101
REFUSE SERVICE PROVIDED AND REQUIRED, TO CLARIFY THAT
REFUSE BILLING IS NOT REQUIRED ON VACANT LOTS AND THAT
MANDATORY REFUSE SERVICE DOES NOT PRECLUDE INDIVIDUALS
FROM DISPOSING OF THEIR OWN REFUSE, BUT STILL REQUIRES
PAYMENT FOR REFUSE SERVICE
WHEREAS,the Seward City Code provides for mandatory refuse service in order to protect
public health and hygiene,remove incentives to dump trash in public receptacles or in trash cans of
other paying customers, equitably share the cost of this public health service, and reduce the
likelihood of trash being otherwise improperly disposed; and
WHEREAS, the City of Seward maintains a Certificate of Public Convenience and
Necessity with the Regulatory Commission of Alaska, for the purpose of regulating refuse service
within the prescribed boundaries of the Seward City Limits; and
WHEREAS,the City has,for decades,contracted out refuse collection and disposal through
a competitive bid process resulting in a franchise agreement with a private sector refuse company as
allowed by City Code,to avoid the need to equip and operate this service utilizing public employees;
and
WHEREAS, past practice has been to exempt vacant lots from payment of refuse charges
and Codification of this practice will exempt properties which have no commercial or residential
structures.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, HEREBY ORDAINS that:
Section 1. Seward City Code Section 14.05.010 is amended as follows:
(Deletions are Bold StrikethFoughs; Additions are Bold Underline)
14.05.010.- Refuse service provided and required.
(a) Every person occupying and/or owning any house, apartment building, duplex, triplex,
condominium,townhome,mobile home park or home outside of a mobile home park,
trailer, other residential or commercial dwelling or commercial building, including
Z
CITY OF SEWARD,ALASKA
ORDINANCE 2015-XXX
buildings under construction, within the city shall use the system
of refuse disposal provided in this chapter,unless the person utilizes a carrier holding a valid
permit from the Regulatory Commission of Alaska.
(b) The city shall either provide or contract for collection and disposal of refuse. The public
works department of the city or the contractor shall prescribe routes and days for collection.
When such routes or days are established or changed,reasonable notice thereof shall be given
to affected customers. No other carrier other than one authorized by the Regulatory
Commission of Alaska may collect,dispose,or remove refuse from any premises in the city.
Nothing in the preceding sentence is-seetion shall be deemed to prohibit an occupant and/or
owner from removing or causing the removal of refuse accumulated on the premises
occupied by him and disposing of the same in a lawful manner. Disposing of one's own
refuse does not eliminate the requirement to pay for solid waste service.
Section 2. This ordinance shall take effect 10 days following its enactment.
PASSED AND APPROVED by the City Council of the City of Seward,Alaska, this
day of , 2015.
THE CITY OF SEWARD, ALASKA
Jean Bardarson, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney, CMC
City Clerk
(City Seal)
3
u�atory Commission o fAIask
egs
Certificate
of
Public Convenience and
Necessity
No. 618
Having found that the grantee of this certificate is fit,willing,and able to provide the utility services applied
for and that such services are required for the convenience and necessity of the public, the Regulatory
Commission of Alaska,pursuant to the authority vested in it by AS 42.05, hereby issues this certificate of
Public Convenience and Necessity to
CITY OF SEWARD
authorizing it to operate a public utility,as defined by AS 42.05.990(4)(F)for the purpose offurnishing
REFUSE SERVICE
This Certificate is issued under, and subject to, the provisions of AS 42.05 and all rules, regulations, and
orders from time to time promulgated by the Commission governing the rates, charges, services,facilities,
and practices of utility operations of the kind authorized herein.
The specific nature,scope, terms, conditions,and limitations of the authority granted by this Certificate, as
amended to date,are set forth in the appendix hereto and in the following order(s)of the Commission which,
by this reference,are incorporated in and made a part hereof as though fully set forth herein.
Docket No. Date of Order
U-99-22(1) July 25,2000
(Chronology and service area description shown on the attached Appendix A)
IN WITNESS THEREOF,the undersigned members of the Commission
have executed this Certificate of Public Convenience and Necessity at
Anchorage,Alaska on this I7th day of January 2003.
Regulatory Commission of
✓Ilaska
•
(CHAIR)
(COMMISSIONER)
(COMMISSIONER)
(COMMISSIONER)
APPENDIX A
Certificate of Public Convenience
and Necessity No.618 Granted to
CITY OF SEWARD
(Refuse Utility)
DESCRIPTION OF SERVICE AREA:
T1 N R1W Sections: 28, 33, 34, and the SWY2 of Sections 27 and 35
drawn on a diagonal from the NW to the SW corner
of those sections
T1S R1 E Sections: 7, 8, 9, 16, and 17
T1S R1W Sections: 1, 2, 3,4, 9, 10, 15, and 16
(All of the above in reference to the Seward Meridian)
CHRONOLOGY:
Certificate Granted: 07/25/00 (U-99-022(1))
Appendix A-Certificate No.618
Issued January 15, 2003
Page 1 of 1
Note:The service area description and history log in this document are for reference only. The controlling
document is the Commission Order which modified the Certificate and Appendix A. S
1 STATE OF ALASKA
2 THE REGULATORY COMMISSION OF ALASKA
3
Before Commissioners: G. Nanette Thompson, Chair
4 Bernie Smith
Patricia M. DeMarco
5 Will Abbott
6 James S. Strandberg
7 In the Matter of the Application by CITY OF )
SEWARD for a Certificate of Public ) U-99-22
8 Convenience and Necessity for Refuse Utility )
Operations ) ORDER NO. 1
9 )
10
ORDER APPROVING APPLICATION FOR CERTIFICATE AND
11 CLOSING DOCKET
12
BY THE COMMISSION:
13
Background
14
On March 3, 1999, the City of Seward (Seward) filed an application for a
15
16
certificate of public convenience and necessity for its refuse utility. On
March 26, 1999, the application was noticed to the public with a closing date of
.Co M 17
R v April 27, 1999, for the submission of comments in support of, or in opposition to, the
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18
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19 application. No comments were received in response to the notice.
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oco rn Seward made additional filings at the request of the Commission Staff
( N 20
E ' QE -E (Staff) on March 30, 1999, April 14, 1999, June 23, 2000, and July 3, 2000.
O < ats 21
�� RI 22 Staff reviewed the filings in this proceeding and, on July 6, 2000,
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co• a) 23 submitted its analysis and recommendation (Report) thereon. Staffs Report sets out
• a
a in detail the history of the proceeding, the public noticing of the application, and Staffs
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25
findings and recommendations regarding disposition of the application. Staff
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recommended that the Commission approve Seward's application, and approve the
U-99-22(1) - (7/25/00)
Page 1 of 3
4° 11
I
I service area described in Attachment JAK-1 to Staffs Report. A copy of Staffs Report
2 is attached to this Order as an Appendix.
3
Discussion
4
Based on its review of the record in this proceeding, the Commission
5
finds that the public convenience and necessity require the provision of refuse public
6
utility service within the areas described in Staff's report and that Seward is fit, willing,
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and able to furnish the proposed service. Accordingly, the Commission will approve
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Seward's application and accept the map and service area filed by Seward.
9
With approval of the application, there are no outstanding substantive or
10
procedural issues to be disposed of in this proceeding, and there are no allocable
11
costs under AS 42.05.651 and 3 AAC 48.157. Therefore, this Docket should be
12
closed.
13
14 ORDER
15 THE COMMISSION FURTHER ORDERS:
16 1. The application filed by the City of Seward for a certificate of public
Y o M 17 convenience and necessity to furnish refuse public utility service to the area described
u Lc)
? 18 in Attachment JAK-1 of the Appendix attached hereto is approved.
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U-99-22(1) - (7/25/00)
Page 2 of3
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1 2. Docket U-99-22 is closed.
2
DATED AND EFFECTIVE at Anchorage, Alaska, this 25th day of July, 2000.
3
BY DIRECTION OF THE COMMISSION
4 (Commissioner Will Abbott, not participating.)
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U-99-22(1) - (7/25/00)
Page 3 of 3
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0
STATE OF ALASKA
The Regulatory Commission of Alaska
1016 West Sixth Avenue, Suite 400
Anchorage, Alaska 99501
MEMORANDUM
TO: Commissioners: DATE: July 24, 2000
G. Nanette Thompson, Chairman
Bernie Smith
Patricia M. DeMarco
Will Abbott
James S. Strandberg
FROM: James Keen, Utility Engineer
Subject: U-99-22, In the Matter of the Application by CITY OF SEWARD for a Certificate of
Public Convenience and Necessity for Refuse Utility Operations - Staff
Recommendation.
Statement of Case
Before the Commission is an application by the City of Seward(Seward)to obtain a Certificate
of Public Convenience and Necessity for authority to provide refuse utility service within city
limits.
Recommendation
The Commission Staff(Staff)recommends that:
1) The Commission approve the refuse application made by Seward to acquire a Certificate of
Public Convenience and Necessity.
a) The Commission find that refuse utility service is required for the public convenience and
necessity in the area Seward is requesting.
b) The Commission find that Seward is fit,willing, and able to provide the proposed service.
2) The Commission accept the tariff filed by Seward, and
3) The Commission approve the service area included as attachment JAK-1 to this
recommendation
Memorandum—U-99-22,City of Seward—Refuse Utility • ORDER U-99-22(1)
July 24,2000 APPENDIX
Page 1 of 6 "-ge 1 of 7
61 14
Procedural History
On March 11, 1999, Seward filed an application for a certificate of public convenience and
necessity for its refuse utility. This application was noticed to the public with a closing date of
April 27, 1999, for the submission of comments in support of, or in opposition to, the
application. No comments were received in response to the notice. Seward made additional
filings on March 30, 1999, supplying technical information requested by Staff and on April 19,
1999, supplying a USGS Service Area Map requested by Staff. On June 23, 2000, Seward filed
a copy of its FY99 annual financial report. Finally,on July 3, 2000, Seward filed a verification
of its service area based upon the service area proposed by Staff.
Issues
1) Whether Seward should be granted a certificate of Public Convenience and Necessity
a) Whether granting of the certificates is required for the public convenience and necessity
b) Whether Seward is fit,willing, and able to provide refuse utility service in the requested
area.
2) Whether the tariff filed in conjunction with this proceeding should be accepted.
3) Whether the service area requested by Seward be approved.
4) Whether any conditions should be placed on the certificate
Analysis
Public Convenience and Necessity
Is granting a certificate required for the Public Convenience and Necessity?
According to AS 42.05.221, a public utility may not operate and receive compensation for
providing a commodity or service without first having obtained from the Commission a
certificate declaring that public convenience and necessity require or will require the service.
The following is an excerpt from Seward's Statement of Public Benefit.
Seward has been providing garbage service since at least 1974 when it contracted
with Herman E. Leirer d/b/a Seward Service. In 1990,Herman Leirer sold his
business to Jason McDonald d/b/a Jason Enterprises. The City assigned the
remainder of the contract to Jason McDonald until October 1992 when the City
entered into a Franchise Contract with Jason Enterprises. The contract was
extended in September 1997 to December 31, 1998. In June of 1998,Jason
McDonald sold his business to USA Waste of Alaska, Inc and the City assigned
the contract to them.
Memorandum—U-99-22,City of Seward—Refuse Utility ORDER U-99-22(1)
July 24,2000 APPENDIX
Page 2 of 6 Page 2 of 7
)0 15
The City of Seward has a long history of providing refuse services to its residents.
The service has been provided on a contract basis in order to provide good
services while maintaining control of the refuse utility. The City is able to handle
billing,customer request and complaints, as well as discontinuing customers, all
at a central location. This arrangement has provided an excellent service to the
community while maintaining a reasonable rate for the services. The City and its
citizens are concerned about the appearance of its community and have thus
provided regulations that require all residents to utilize and pay for the service.
This in turn has provided the revenues sufficient to provide a good service to the
community and help beautify the community at the same time.
Based on the above, Staff believes the Commission should find the public convenience and
necessity requires the proposed service within the city limits of Seward.
Fitness.Willingness, and Ability
Is Seward fit,willing and able to provide refuse utility service in the requested service area?
AS 42.05.241 states that a certificate may not be issued unless the Commission finds that the
applicant is fit,willing, and able to provide the utility services applied for and that the services
are required for the convenience and necessity of the public.
Managerial and Technical Fitness
As explained above, Seward contracts out the refuse utility service to USA Waste(USA) for its
residents. The resumes of the key management personnel indicate that they have a strong
background in city and financial management that will enable them to competently manage the
service. In addition,the Commission has found USA to be technically competent to provide
refuse service in the service area previously served by Jason Enterprises'.
USA will be utilizing a 1996 Peterbilt 320 Refuse truck and a 1982 International Harvester
Rolloff Truck to provide service in Seward. All refuse collected in Seward is currently being
delivered to the Kenai Borough Solid Waste Transfer Facility, located in Seward. The refuse is
then transferred to the Kenai Peninsula Borough Baling facility in Soldotna. Finally, the bales
are disposed of in the Kenai Borough landfill facility located near Soldotna. The Kenai
Peninsula Borough holds the required permit from the Alaska Department of Environmental
Conservation(ADEC). The ADEC does not require the refuse hauling vehicles to have a permit.
Based on the above, Staff recommends the Commission finds Seward managerially and
technically fit,willing, and able to provide the requested service.
Financial Fitness
'USA Waste was granted a conditional transfer of Certificates of Public Convenience and Necessity 211,previously
held by Jason Enterprises,in Order U-98-171(1).
Memorandum—U-99-22,City of Seward—Refuse Utility ORDER U-99-22(1)
July 24,2000 APPENDIX
Page 3 of 6 Page 3 of 7
16
Staff recommends that Seward's audited financial statement for FY 99, as filed in Docket U-99-
22,be used as an indicator of its financial fitness because the financials have been independently
audited and show the financial results of the utility combined with the other accounts from the
city.
As Seward will not be subject to economic regulation under AS 42.05.711(b), it will not be
required to develop cost based rates and can develop rates that do not follow the traditional rate
making methodologies. Based upon the financial statements provided, Seward does not
subsidize its refuse utility service from other general fund accounts. Seward charges its
customers for refuse pick-up according to the rate table below. Compared to rates charged by
other Alaskan refuse utilities, Seward's rates are very reasonable.
Businesses—Basis for Monthly Fee
No. Pickups per First Can Each Additional
Week Can
1 $8.65 $3.90
2 $17.30 $7.80
3 $26.80 $11.70
4 $34.60 $15.60
5 $43.25 $19.50
6 $51.90 $23.40
Offices, wastepaper $5.40 $3.25
only(1 Pickup)
Residential—Basis for Monthly Fee
Dwelling Type Monthly Rate Pack-Ont Service Fee
Single Family Residence $10.85 $14.05
Apartments(more than 2 units $9.90 $2.60/dwelling unit
having common cans, each
unity billed individually)
Apartments(more than 2 units $9.25 $2.60/dwelling unit
having common cans,with a
single billing to the Landlord)
According to Seward's audited financial statements for FY99,the city received $43,975 in
revenue. This sum is 12.5%of the Total Revenues collected by Seward. The other 87.5%of the
revenue is paid to USA Waste. Seward does not keep track of billing expenses directly attributed
to its refuse utility and was therefore unable to accurately calculate Total Operating Expenses.
Memorandum—U-99-22,City of Seward—Refuse Utility ORDER U-99-22(1)
July 24,2000 APPENDIX
Page 4 of 6 Page 4 of 7
12 17
As a whole,the financial fitness of the City of Seward is strong. Seward had total Assets,
Liabilities, and Capital of$184,137,950, $24,613,264, and$159,524,686 respectively. Total
Revenues for the city were $7,322,027, and Total Expenditures were$7,052,277,providing a Net
Profit of$269,750. After net funds transferred to and from other accounts were considered,the
net excess of revenues added to the fund balance totaled$419,955. This indicates that the overall
city is lucrative and self-sustaining. Staff concludes that the self-sustaining city funds, in
conjunction with the general authority of the City to levy taxes, shows the applicant to be
financially fit.
Based upon the above, Staff believes the Commission should find that Seward is overall fit,
willing, and able to provide the proposed service.
Tariff
Should the tariff filed in conjunction with this proceeding be accepted?
The Commission,according to AS 42.05.711 (b), does not economically regulate Seward
because it is a public utility owned by a political subdivision of the state. However, a copy of its
tariff for the refuse utility was filed with the Commission for review. Staff reviewed the
submitted tariff and found it to be sufficient and accurate.
Based on the above, Staff recommends that the tariff submitted by Seward be accepted.
Service Area&Map
Should the service area description and map filed in conjunction with this proceeding be
approved?
The service area request submitted by Seward includes the area surrounding and within the City
limits of Seward on both the East and West banks of Resurrection Bay. Seward has expanded its
city limits since the original service area was granted to USA. Part of Seward's new corporate
city limits includes a small area of land within the approved service area of USA. Seward
determined that rather than forcing this area of land to be annexed by the city so that it could
control refuse development,it would continue to allow USA to maintain control of the refuse
market in that area. A USGS map delineating the requested area was submitted and reviewed by
Staff. Staff finds this request to be reasonable and recommends the service area included as
attachment JAK-1 be approved.
Conditions
What conditions,if any,will be imposed upon Seward?
Seward has fulfilled all of the requirements for certification and therefore does not need any
conditions to be imposed.
Conclusion
Memorandum—U-99-22,City of Seward—Refuse Utility ORDER U-99-22(1)
July 24,2000 APPENDIX
Page 5 of 6 Page 5 of 7
I3 18
For the reasons stated above, Staff believes that refuse utility service is required for the public
convenience and necessity in the area Seward is requesting and that Seward is fit, willing, and
able to provide the proposed service. Therefore, Staff recommends that the application for a
certificate of public convenience and necessity for the refuse utility be approved.
Memorandum—U-99-22,City of Seward—Refuse Utility ORDER U-99-22(1)
July 24,2000 APPENDIX
Page 6 of 6
Page 6 of 7
I � 19
"APPENDIX A"
Certificate of Public Convenience
And Necessity No. ?granted to
THE CITY OF SEWARD
(Refuse Utility)
DESCRIPTION OF SERVICE AREA:
T1N R1W Sections: 28, 33, 34, and the SW Y2 of Sections
27 and 35 drawn on a diagonal from
the NW to the SW corner of those
sections
T1S R1E Sections: 7, 8, 9, 16, and 17
T1S R1W Sections: 1,2, 3,4, 9, 10, 15, and 16
(All of the above in reference to the Seward Meridian)
CHRONOLOGY:
Original Certificate granted ??, (U-99-22-(?))
ORDER U-99-22(1)
APPENDIX
Page 7 of 7
S 20
Chapter 42.05 ALASKA PUBLIC UTILITIES REGULATORY ACT
Sec. 42.05.010. -42.05.131. Establishment of Public Utilities Commission. [Repealed,Sec. 5 ch 113 SLA 1970;Sec. 24 ch 25 SLA
1999]. Repealed or Renumbered
Sec.42.05.141.General powers and duties of the commission. (a)The Regulatory Commission of Alaska may do all things
necessary or proper to carry out the purposes and exercise the powers expressly granted or reasonably implied in this chapter,
including
(1) regulate every public utility engaged or proposing to engage in a utility business inside the state, except to the extent
exempted by AS 42.05.711;
(2) investigate, upon complaint or upon its own motion,the rates,classifications, rules, regulations, practices, services, and
facilities of a public utility and hold hearings on them;
(3) make or require just,fair, and reasonable rates, classifications, regulations, practices, services, and facilities for a public
utility;
(4) prescribe the system of accounts and regulate the service and safety of operations of a public utility;
(5) require a public utility to file reports and other information and data;
(6)appear personally or by counsel and represent the interests and welfare of the state in all matters and proceedings
involving a public utility pending before an officer, department, board, commission, or court of the state or of another state or the
United States and to intervene in, protest, resist,or advocate the granting, denial, or modification of any petition, application,
complaint,or other proceeding;
(7) examine witnesses and offer evidence in any proceeding affecting the state and initiate or participate in judicial
proceedings to the extent necessary to protect and promote the interests of the state.
(b)The commission shall perform the duties assigned to it under AS 42.45.100-42.45.190.
(c) In the establishment of electric service rates under this chapter the commission shall promote the conservation of resources
used in the generation of electric energy.
(d)When considering whether the approval of a rate or a gas supply contract proposed by a utility to provide a reliable supply of
gas for a reasonable price is in the public interest,the commission shall
(1) recognize the public benefits of allowing a utility to negotiate different pricing mechanisms with different gas suppliers
and to maintain a diversified portfolio of gas supply contracts to protect customers from the risks of inadequate supply or
excessive cost that may arise from a single pricing mechanism; and
(2)consider whether a utility could meet its responsibility to the public in a timely manner and without undue risk to the
public if the commission fails to approve a rate or a gas supply contract proposed by the utility.
Sec.42.05.145.Telecommunications regulation policy; restriction on regulation of telephone directories. (a) A utility that
provides local exchange or interexchange telecommunications service in the state affects the public interest. Regulation of these
utilities shall,consistent with this chapter, seek to maintain and further the efficiency, availability, and affordability of universal
basic telecommunications service.
(b) Notwithstanding other provisions of this chapter,the commission may not regulate the production and distribution of
telephone directories.
Sec. 42.05.150. (Repealed,Sec. 5 ch 113 SLA 1970]. Repealed or Renumbered
Sec.42.05.151. Regulations and hearing procedures. (a)The commission may adopt regulations, not inconsistent with the law,
necessary or proper to exercise its powers and to perform its duties under this chapter.
(b)The commission shall adopt regulations governing practice and procedure, consistent with due process of law, including the
conduct of formal and informal investigations, pre-hearing conferences, hearings, and proceedings, and the handling of
procedural motions by a single commissioner.The regulations must provide for the hearing or, when a hearing is not required,
other consideration of a matter in accordance with AS 42.04.080.Technical rules of evidence need not apply to investigations,
pre-hearing conferences, hearings, and proceedings before the commission.The commission shall provide for representation by
out-of-state attorneys substantially in accordance with Rule 81,Alaska Rules of Civil Procedure.
(c)The commission, each commissioner,or an employee authorized by the commission may administer oaths, certify to all
official acts, and issue subpoenas,subpoenas duces tecum, and other process to compel the attendance of witnesses and the
production of testimony, records, papers,accounts, and documents in an inquiry, investigation, hearing, or proceeding before the
commission in any part of the state. Each commissioner is authorized to issue orders on procedural motions.The commission may
petition a court of this state to enforce its subpoenas, subpoenas duces tecum, or other process.
Sec. 42.05.160. (Repealed,Sec.5 ch 113 SLA 1970]. Repealed or Renumbered
Sec.42.05.161.Application of Administrative Procedure Act. (a)The administrative adjudication procedures of AS 44.62 J
(Administrative Procedure Act) do not apply to adjudicatory proceedings of the commission except that final administrative
determinations by the commission are subject to judicial review under that Act as provided in AS 42.05.551(a).
(b)AS 44.62 (Administrative Procedure Act)applies to regulations adopted by the commission.
Sec.42.05.170.(Repealed,Sec.5 ch 113 SLA 1970]. Repealed or Renumbered
Sec.42.05.171. Formal hearings.A formal hearing that the commission has power to hold may be held by or before a hearing
panel appointed under AS 42.04.080, a hearing examiner, or an administrative law judge designated for the purpose by the chair
of the commission. In appropriate cases, a formal hearing may be held before an arbitrator or mediator designated for the
purpose by the commission. The testimony and evidence in a formal hearing may be taken by the panel, by the hearing examiner,
by the arbitrator, by the mediator, or by the administrative law judge to whom the hearing has been assigned. A decision of a
hearing examiner,an arbitrator, a mediator, or an administrative law judge is not final until approved by the commission.A
commissioner who has not heard or read the testimony, including the argument, may not participate in making a decision of a
hearing panel. A party may file a petition for reconsideration of, or an administrative appeal of, a decision by a hearing examiner,
an arbitrator, a mediator, or an administrative law judge that has been approved by the commission, or a decision of a hearing
panel. The full commission shall act on the petition for reconsideration or the appeal. In determining the place of a hearing,the
commission shall give preference to holding the hearing at a place most convenient for those interested in the subject of the
hearing.
Sec.42.05.175.Timelines for issuance of final orders. (a)The commission shall issue a final order not later than 180 days after a
complete application is filed for an application
(1)for a certificate of public convenience and necessity;
(2)to amend a certificate of public convenience and necessity;
(3)to transfer a certificate of public convenience and necessity; and
(4)to acquire a controlling interest in a certificated public utility.
(b) Notwithstanding a suspension ordered under AS 42.05.421,the commission shall issue a final order not later than 270 days
after a complete tariff filing is made for a tariff filing that does not change the utility's revenue requirement or rate design.
(c) Notwithstanding a suspension ordered under AS 42.05.421, the commission shall issue a final order not later than 450 days
after a complete tariff filing is made for a tariff filing that changes the utility's revenue requirement or rate design.
(d)The commission shall issue a final order not later than 365 days after a complete formal complaint is filed against a utility or,
when the commission initiates a formal investigation of a utility without the filing of a complete formal complaint, not later than
365 days after the order initiating the formal investigation is issued.
(e)The commission shall issue a final order in a rule-making proceeding not later than 730 days after a complete petition for
adoption, amendment,or repeal of a regulation under AS 44.62.180-44.62.290 is filed or, when the commission initiates a rule-
making docket, not later than 730 days after the order initiating the proceeding is issued.
(f)The commission may extend a timeline required under this section if all parties of record consent to the extension or if,for
one time only, before the timeline expires, the
(1) commission reasonably finds that good cause exists to extend the timeline;
(2) commission issues a written order extending the timeline and setting out its findings regarding good cause; and
(3)extension of time is 90 days or less.
(g)The commission shall file quarterly reports with the Legislative Budget and Audit Committee identifying all extensions
ordered under(f)of this section during the previous quarter and including copies of the written orders issued under(f)(2) of this
section.
(h) If the commission does not issue and serve a final order regarding an application or suspended tariff under section (a), (b), or
(c) of this section within the applicable timeline specified, and if the commission does not extend the timeline in accordance with
(f) of this section,the application or suspended tariff filing shall be considered approved and shall go into effect immediately.
(i) In adjudicated docket matters that come before the commission under state law or federal law and are not subject to a
timeline under federal law or(a)- (e) of this section,the commission shall issue a final order not later than 180 days after the filing
of an initiating petition. If the matter is commenced on the commission's own motion, the commission shall issue a final order not
later than 365 days after the issuance of an order opening the docket.This subsection does not apply to a complaint against a
utility, a petition to revoke a certificate of public convenience and necessity, or a functionally equivalent filing.
(j) If the commission does not issue and serve a final order governed by(i) of this section within the applicable timeline specified,
including any extension granted by the commission in accordance with (f)of this section, the initiating petition shall be considered
approved and shall take effect immediately, or, if the matter was commenced by the commission,the docket shall be closed with
no action taken.
(k) If proceedings subject to different timelines under this section are consolidated or if a single proceeding implicates more than
one timeline,the latest applicable deadline for the issuance of a final order shall apply.
(I)The commission may not evade the requirement of this section by terminating a proceeding in a docket and opening a
proceeding in another docket on substantially the same matter. ) "
(m) For purposes of this section, "final order" means a dispositive administrative order that resolves all matters at issue and that
may be the basis for a petition for reconsideration or request for judicial review.
(n) For purposes of this section, an application,tariff filing, formal complaint, or petition is complete if it complies with the filing,
format, and content requirements established by statute, regulation, and forms adopted by the commission under regulation.
Sec. 42.05.180. [Repealed,Sec.5 ch 113 SLA 1970]. Repealed or Renumbered
Sec.42.05.181. Notice and hearing before final orders.A final order of the commission compelling affirmative action, denying a
right or privilege, or granting a right or privilege over protest of the public utility or any party of record may not be entered
without giving the interested party reasonable notice and an opportunity to be heard.
Sec.42.05.190. [Repealed,Sec. 5 ch 113 SLA 1970]. Repealed or Renumbered
Sec.42.05.191.Contents and service of orders. Every formal order of the commission shall be based upon the facts of record.
However, the commission may,without a hearing, issue an order approving any settlement supported by all the parties of record
in a proceeding, including a compromise settlement. Every order entered pursuant to a hearing must state the commission's
findings,the basis of its findings and conclusions,together with its decision.These orders shall be entered of record and a copy of
them shall be served on all parties of record in the proceeding.
Sec.42.05.193. -42.05.196. [Repealed,Sec. 5 ch 113 SLA 1970]. Repealed or Renumbered
Sec.42.05.200. [Repealed,Sec.5 ch 113 SLA 1970]. Repealed or Renumbered
Sec.42.05.201. Publication of reports,orders,decisions,and regulations.All reports, orders, decisions, and regulations of the
commission shall be in writing.The commission shall apprise all affected utilities and interested parties of these reports, orders,
decisions, and regulations as they are issued and adopted, and, when appropriate to do so, shall publish them in a manner that
will reasonably inform the public or the affected consumers of any public utility service.The commission may set charges for costs
of printing or reproducing and furnishing copies of its reports, orders, decisions and regulations.The publication requirement, as it
pertains to regulations,does not supersede the requirements of AS 44.62 (Administrative Procedure Act).
Sec.42.05.210.[Repealed,Sec.5 ch 113 SLA 1970]. Repealed or Renumbered
Sec.42.05.211.Annual report.The commission shall, by November 15 of each year, publish an annual report reviewing its
activities during the previous fiscal year and notify the legislature that the report is available.The report must address the
regulation of public utility service in the state as of June 30 and must contain details about the commission's compliance with the
requirements of AS 42.05.175(a) - (e),with the timeline extensions made by the commission under AS 42.05.175(f), and with
other performance measures established by the commission.
Sec.42.05.220. [Repealed,Sec. 5 ch 113 SLA 1970]. Repealed or Renumbered
Article 02.CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY Sec.42.05.221.Certificates required. (a)A public utility may
not operate and receive compensation for providing a commodity or service without first having obtained from the commission
under this chapter a certificate declaring that public convenience and necessity require or will require the service. Where a public
utility provides more than one type of utility service,a separate certificate of convenience and necessity is required for each type.
A certificate must describe the nature and extent of the authority granted in it, including, as appropriate for the services involved,
a description of the authorized area and scope of operations of the public utility.
(b)All certificates of convenience and necessity issued to a public utility before July 1, 1970, remain in effect but they are subject
to modification where there are areas of conflict with public utilities that have not previously been required to have a certificate
or where there is a substantial change in circumstances.
(c)A certificate shall be issued to a public utility that was not required to have one before July 1, 1970, and that is required to
have one after that date, if it appears to the commission that the utility was actually operating in good faith on that date.Such a
certificate is subject to modification where there are areas of conflict with other public utilities or where there has been a
substantial change in circumstances.
(d) In an area where the commission determines that two or more public utilities are competing to furnish identical utility
service and that this competition is not in the public interest,the commission shall take appropriate action to eliminate the
competition and any undesirable duplication of facilities.This appropriate action may include, but is not limited to,ordering the
competing utilities to enter into a contract that,among other things, would:
(1)delineate the service area boundaries of each in those areas of competition;
(2)eliminate existing duplication and paralleling to the fullest reasonable extent;
(3) preclude future duplication and paralleling;
(4) provide for the exchange of customers and facilities for the purposes of providing better public service and of eliminating
duplication and paralleling; and
(5) provide such other mutually equitable arrangements as would be in the public interest.
(e) If the commission employs professional consultants to assist it in administering this section, it may apportion the expenses
relating to their employment among the competing utilities.
(f)[Repealed,Sec. 12 ch 136 SLA 1980]. G
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Sponsored by: Hunt
!him CITY OF SEWARD,ALASKA
RESOLUTION 2012-068
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING A FRANCHISE FOR THE COLLECTION AND
DISPOSAL OF GARBAGE AND REFUSE WITH ALASKA WASTE-KENAI
PENINSULA, LLC, SUBJECT TO APPROVAL BY THE VOTERS OF
SEWARD AT THE OCTOBER 2,2012 REGULAR CITY ELECTION
WHEREAS, the Seward City Charter ("Charter") and Code of Ordinances ("Code")
provides for the sanitary,economic,and efficient collection and disposal of garbage,rubbish,and
waste material in the City and its service area,and permits,pursuant to such Charter and Code and
voter approval,the use of a contractor to provide such services;and
WHEREAS, the City of Seward ("City")currently contracts with Waste Connections of
Alaska,Inc. dba Alaska Waste—Kenai Peninsula LLC, for the collection and disposal of garbage
and refuse,with said contract set to expire December 31,2012;and
WHEREAS, the City solicited a request for proposals to provide solid waste collection
services,and received three responsive and responsible proposals,and based on the scoring of those
proposals, the administration recommends approval of a contract with Alaska Waste — Kenai
Peninsula,LLC,subject to voter approval at an election to be held on October 2,2012,and subject to
successful negotiations between the City and the proposer; and
WHEREAS,the administration recommends entering into a seven-year contract with an
option to extend for up to three additional years, subject to approval by the City Council; and
WHEREAS,this franchise agreement provides for automatic annual adjustments in the Rate
Schedule based on 140%of the CPI',with such automatic increases not subject to further approval,
and with all other changes to rates and conditions of service subject to City Council review and
approval; and
WHEREAS,the agreement provides for new services such as a bulky-item curbside pickup service
for appliances and furniture, and through a levelized rate schedule, encourages the use of bear-
resistant containers and bear-resistant dumpster lids to reduce bear/human/garbage encounters,and
includes a franchise fee to be paid to the City,equal to 3% of the gross revenues collected by the
contractor;and
1 Consumer Price Index(CPI)means the consumer price index(CPI-U),all items, 1982-1984=100 for urban wage
earners and clerical workers,Anchorage,Alaska area,as published by the U.S.Department of Labor,Bureau of
how Labor Statistics(initial release). The 2014 Rate Schedule will be adjusted utilizing the CM data from the calendar
year 2012.
20
CITY OF SEWARD,ALASKA
RESOLUTION 2012-068
WHEREAS,approval of a seven-year franchise,with an option to extend for an additional
term of up to three years,provides sufficient incentive for the contractor to make improvements to
the local fleet of available equipment,trucks,and container inventories,and to address issues such as
the availability of bear-resistant garbage cans and bear-resistant dumpster lids,and to consider future
options for the community to encourage and facilitate recycling efforts;and
WHEREAS, granting of a franchise for a public utility requires the affirmative vote of a
majority of electors voting on a proposition to approve such a franchise,and
WHEREAS, the Seward City Council finds that it is in the public interest to provide for
quality,local garbage and refuse collection and disposal services, and therefore opts to place this
proposition before the voters of Seward at the regular election of October 2,2012.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA,that:
Section 1. A franchise agreement between the City of Seward and Alaska Waste—Kenai
Peninsula LLC, for the collection and disposal of garbage and refuse,a copy of which is attached
hereto and incorporated herein by reference, is hereby approved subject to voter approval, in
accordance with Section 4 below.
Section 2. The city manager is authorized to finalize and execute such additional
documents as necessary to finalize the franchise agreement and to agree to revisions to the
documents so long as the essential terms and conditions of the franchise agreement are not
substantially changed.
Section 3. The city manager is authorized to include collection of a franchise fee in the
amount of 3% of gross revenues collected from the franchisee, and that amount is considered
adequate compensation for the maintenance and use of City streets and alleys in the conduct of this
contract. The City Council will also retain rate approval as provided in the City Charter and Code.
Section 4. At the regular municipal election to be held on October 2,2012,the City shall
submit to the qualified voters of the City the question of approval of the franchisee agreement noted
above. An affirmative vote of a majority of the qualified electors voting on the proposition shall be
required for approval of the franchise agreement.
J
2j
CITY OF SEWARD,ALASKA
RESOLUTION 2012-068
Lime
Section 5. The proposition shall be substantially in the following form:
Proposition No.2
FRANCHISE AGREEMENT FOR THE COLLECTION AND
DISPOSAL OF GARBAGE AND REFUSE
Do you approve a seven-year franchise agreement with Alaska Waste—Kenai
Peninsula, LLC for the collection and disposal of garbage and refuse? The
franchise agreement contains an option to extend for up to an additional three
years. The agreement allows for costs to be adjusted annually based on 140%
of the Consumer Price Index. The agreement provides an opportunity for
periodic rate reviews with all other consumer rates to be set by resolution of the
City Council.
Yes No
A"Yes"vote approves a seven-year franchise agreement with Alaska Waste—
Kenai Peninsula, LLC for the collection and disposal of garbage and refuse,
with options to extend the agreement for up to three additional years.
A"No"vote does not approve a seven-year franchise agreement with Alaska
Waste—Kenai Peninsula,LLC for the collection and disposal of garbage and
refuse,with options to extend the agreement for up to three additional years.
Section 6. This resolution shall take effect immediately upon adoption. The franchise
agreement shall not be effective until it has been approved by a majority of the electors voting on a
proposition to approve the same. The franchise agreement shall go into effect January 1,2013 or as
soon thereafter as practicable.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 13th
day of August,2012.
THE CITY OF SEWARD,ALASKA
David Seawa "(Mayo
L..
22
CITY OF SEWARD,ALASKA
RESOLUTION 2012-068 J
AYES: Valdatta, Bardarson,Keil, Shafer, Casagranda,Terry, Seaward
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
cuitmda,
ohanna Kinney,CMC
ity Clerk
(City Seal)
44s'41 of SEWq�pis
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23
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Council Agenda Statement
of SFw
Meeting Date: August 13, 2012 eqpa
Through: James Hunt, City Manager s•':>
4.Asto"
From: Kristin Erchinger, Finance Director
Agenda Item: Approving Franchise Agreement for Solid Waste Collection Services with
Alaska Waste-Kenai Peninsula, LLC
BACKGROUND &JUSTIFICATION:
The City of Seward, through its Charter and its Code of Ordinances, provides for the collection
and disposal of garbage and rubbish. To that end, the City previously applied for, and was
granted, a Certificate of Public Convenience and Necessity by the Regulatory Commission of
Alaska, for its refuse utility(Certificate U-99-22).
Since at least the early 1970s, the City has utilized a private contractor to provide refuse services
in Seward. The City Code requires that a franchise for a public utility be approved by a majority
of voters in a regular City election.
Over the past 38 years, the City has issued Requests for Proposals for solid waste collection four
times, as follows: 1974, one respondent; 1980, one respondent; 1983, two respondents; 1987,
one respondent. In 1987, the City contracted with Seward Service (Herman Leirer), and the
business was subsequently assigned five times, as follows: in 1989 to Jason Enterprises; in
1998 to USA Waste of Alaska; in 1999 to Peninsula Sanitation, a division of Waste
Management, Inc.; in 2005 to Alaska Pacific Environmental Services Anchorage, LLC dba
Alaska Waste - Kenai Peninsula LLC; and in 2012 to Waste Connections of Alaska, Inc.
The most recent franchise agreement was approved by the voters on October 5, 2010 for a period
of two years, with a request by the City Council to solicit Requests for Proposal at the end of the
term. The current contract for refuse services expires December 31, 2012.
The City solicited a Request for Proposals for solid waste collection services and received three
responses. All three proposals were considered responsive and responsible. The following
criteria and associated weightings were used to score the proposals: Proposed rates = 30%;
Firm's technical qualifications(fleet, container inventory, etc.)=20%; Firm's experience= 15%;
Bear Awareness = 10%; Litigation History = 10%; Contract exceptions = 10%; and Customer
service and billing =5%. The proposals received the following overall scores:
Alaska Waste-Kenai Peninsula, LLC Score= 88.52
Alaska Pacific Environmental Services I, LLC Score= 71.78
Mid State Truck and Trailer, LLC Score= 70.50
Based on the scoring of criteria, the administration recommends approving a franchise for the
collection and disposal of garbage and refuse with Alaska Waste - Kenai Peninsula, LLC
("Alaska Waste"), subject to approval by the voters of Seward at the October 2, 2012 regular
City election, and subject to successful contract negotiations.
2 L
A few highlights from the successful proposal: The RFP allowed for a new fee to be
implemented,based on standard waste management industry practice. That fee would have been
a fuel adjustment factor to be added to the bill each month based as a percentage of the services
charges on the bill (excluding taxes and surcharges), with an option to escalate each year based
on a percentage of the Producer Price Index for No. 2 Diesel Fuel. Alaska Waste opted not to
propose adding a new fuel adjustment factor, but to instead include all cost escalations as a
percentage of the annual Consumer Price Index ("CPI"). Their proposal includes the following:
1) initial rates are increased from the current Rate Schedule by approximately 25% for regular
cans and 7% for bear-resistant cans, effective January 1, 2013; 2) the Rate Schedule has been
amended to add a monthly charge for renting a dumpster from the Contractor (rent has been
charged previously,but that item was omitted from the schedule); 3)annual increases to the Rate
Schedule will be equal to 140%of the Consumer Price Index over the life of the contract; 4) a
new `bulky item pickup" service will be implemented at a minimum cost of$42.18 per item
(small appliances, furniture, etc.); 5) incentivizes the use of bear-resistant garbage cans by
charging the same $2.00 per month charge for a leased bear-resistant can or a regular can; 6)
adds lockable dumpster lids; 7) continues the current practice of the contractor bearing
responsibility for billing customers and providing direct customer service; 8) the contractor
agrees to make available bear-resistant garbage cans and bear-resistant dumpster lids for sale or
lease, to anyone interested in obtaining one; and 9) provides for a seven-year term with options
to extend for an additional term of up to three years at the discretion of the City Council.
Alaska Waste's base price for monthly service will be$26.91 (up from the current $21.53), and
this represents the median quoted rate (quotes ranged from $20.88 to $41.75) of the three
proposals.
Waste Connections of Alaska, Inc. (dba Alaska Waste — Kenai Peninsula, LLC) became the
City's current refuse franchisee, upon completion of a buyout of the City's previous contractor,
and upon the City Council's approval of consent to a change in ownership, approved by
Resolution in February, 2012. Since that time, the contractor has provided safe and reliable
service to the residents of Seward, and the City has received very few calls regarding service.
The contractor has been responsive to City staff and we have developed a positive working
relationship. The administration recommends approval of this franchise agreement, for final
approval by the voters of Seward at the October election.
CONSISTENCY CHECKLIST: Yes No N/A
1 Comprehensive Plan: Page 11- Community Appearance, Page 13-City X
Government, Page 26-Public Facilities.
2. Strategic Plan: Page 4-Nautural, Promote a Safe Community-Page 18 X
3. Other(list): X
ZS
CONTRACTUAL AGREEMENT
FOR THE COLLECTION AND DISPOSAL OF
GARBAGE,RUBBISH AND WASTE MATERIAL
IN THE CITY OF SEWARD,ALASKA
THIS AGREEMENT (the "Agreement") is dated as of the 5 day of ('Jt v2rn bee,
2012, by and between the City of Seward, Alaska, a municipal corporation organized under and
operating pursuant to the laws of the State of Alaska, hereinafter referred to as the "City" and
Alaska Waste- Kenai Peninsula, LLC,hereinafter referred to as"CONTRACTOR".
WHEREAS, the City, by its charter (the "Charter") and ordinances of the Seward City
Code (the "Code"), provides for the sanitary, economic, and efficient collection and disposal of
garbage, rubbish, and waste material in the City and its service area, and has, by such Charter
and Code,made regulations regarding such collection and disposal; and
WHEREAS, the City seeks a CONTRACTOR to provide dependable, economic, and
efficient service to the business, industrial, residential, and public districts of the City and its
service area through periodic and regularly scheduled collection of garbage, rubbish, and waste
material in accordance with the Charter and Code and within the terms of a previous agreement;
and
WHEREAS, the City and CONTRACTOR agree to consider, over the course of this
contract, alternative means to reduce the environmental impact of waste, to include recycling
efforts,measures to reduce human/bear encounters, and other such potential initiatives; and
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE CITY AND
CONTRACTOR THAT:
1. Engagement. This Agreement, a franchise contract for collecting and disposing of
the garbage, rubbish and waste materials of businesses, residences, and public entities
of and within the City and its service area, is hereby awarded to CONTRACTOR,
subject to approval by the voters under Charter Section 13.6.
2. Compliance. CONTRACTOR will comply with the terms and provisions of all
Charter and Code provisions and will follow regulations of the City in connection
therewith. Charter Section 13.5 is incorporated herein by this reference. To the
extent that any provisions of this Agreement conflict with the Charter or Code, the
Charter and Code shall govern.
3. Service. (a) CONTRACTOR will provide continuous and uninterrupted service to
the public in all sections of the City and its service area in accordance with the terms
of this Agreement throughout the entire period hereof except as provided in paragraph
13 herein. (b) The City and CONTRACTOR agree to the terms and conditions of
CONTRACTOR' Service Policies, and CONTRACTOR agrees to perform according
to said Service Policies, which are attached hereto as Exhibit 1. (c) Should the City
adopt service policies whose effect is to impose requirements or restrictions on
Contractual Agreement Between
The City of Seward and Alaska Waste-Kenai Peninsula, LLC
Page I of I I
2?-
CONTRACTOR performance which will cause CONTRACTOR additional costs to
provide service, the City shall provide CONTRACTOR the opportunity to determine
its additional costs and to request a rate adjustment in the manner provided by Charter
and Code. (d) CONTRACTOR agrees to collect and transport all garbage, rubbish
and waste material collected within the City and its service area to a site and facility
designated by the Kenai Peninsula Borough and to comply with the regulations
established for such facility.
4. Term of Agreement. (a) This Agreement is effective upon execution by both
Parties and as of the date first above written. The collection services provided under
this Agreement shall commence at 12:01 a.m. on January 1, 2013 or as soon
thereafter as practicable, and shall continue for a minimum term of seven (7) years,
expiring no earlier than 11:59 p.m. December 31, 2019, unless earlier terminated
under the provisions of the Charter or this Agreement. (b) Unless this Agreement is
terminated pursuant to the provisions of the Charter, paragraph 15 of this Agreement,
or any other provision of this Agreement, the Parties agree that this Agreement may
be renewed for up to three (3) additional years on the same terms and conditions as
provided herein; provided, however, 1) CONTRACTOR first notifies the City of its
desire to renew this Agreement under the same terms and conditions and provides
written notice to the City in accordance with this Agreement at least one hundred
eighty (180) days prior to the expiration of the current term; 2) CONTRACTOR is
not in default under any term or provision of this Agreement; and 3)the City Council,
at the time the renewal is requested, approves the renewal. The maximum term of
this contract shall be ten(10) years.
Following the termination of this Agreement for any reason prior to the expiration of
the initial term or renewal term, CONTRACTOR shall continue to provide the
services under this Agreement, at the City's election, until 11:59 p.m. on the last day
of the first full month following the date the City gives CONTRACTOR notice of
termination.
5. Insurance.
a. Coverage Requirements. Without limiting its Indemnities, CONTRACTOR
will secure and maintain insurance coverage meeting the requirements in this
Section. Each liability policy must provide contractual liability coverage for
Contractor's Indemnities, including any necessary endorsement, schedule or
documentation. CONTRACTOR agrees that, at its sole cost and expense, it
will obtain and maintain public liability insurance, insuring against all
liabilities, claims and demands for injuries, loss and/or damage which result
from the performance of services pursuant to this Agreement as follows:
(i) General Liability Insurance. Written on ISO policy form CG
00 01 (occurrence) or its equivalent (and not CG 00 02 claims
made) with limits of not less than the following:
General Aggregate: $4 million
Contractual Agreement Between
The City of Seward and Alaska Waste-Kenai Peninsula,I.LC
Page 2 of 11
2�'
Products/Completion Operations Aggregate: $4 million
Personal and Advertising Injury: $1 million
Each Occurrence: $2 million
(ii) Automobile Liability Coverage. Insurance meeting the
following requirements:
1. Written on ISO policy forms CA 00 12 or CA 00 20 (or
equivalent) with a limit of liability not less than $2 million for
each accident
2. Endorsed to delete the pollution and/or the asbestos exclusion
and include pollution liability (using form CA 99 48 or its
equivalent) for accidental spills and discharges while
transporting and/or processing materials; and
3. Covering all Vehicles that drive on public roads.
If Contractor is subject to federal regulations, Contractor will also
maintain any other coverage necessary to satisfy state or federal
financial responsibility requirements.
(iii) Liability coverage for pollution conditions resulting from
transported cargo. With a limit of not less than $2 million per
occurrence covering loss (including cleanup costs) the
CONTRACTOR. becomes legally obligated to pay as a result of
claims for bodily injury, property damage, and cleanup costs
(including expenses required by environmental laws or incurred
by federal, state, city, or third parties) resulting from pollution
conditions caused by transported cargo (including waste). For
the purpose of this subsection, "pollution conditions" includes
the dispersal, discharge, release, or escape of any solid, liquid,
gaseous or thermal irritant or contaminant (such as smoke,
vapors, soot, fumes, acids, alkalis, toxic chemicals, medical
waste, and waste materials) into or upon land, any structure on
land, the atmosphere, or any watercourse or body of water
(including groundwater), provided the conditions are not
naturally present in the environment in the amounts or
concentrations discovered.
CONTRACTOR'S general liability policy may be endorsed to
provide for this pollution liability coverage.
(iv) Workers Compensation and Employers' Liability. Insurance
providing the following:
1. Workers' compensation benefits required by applicable law
(including the State Labor Code or by any other state labor
law),and for which Contractor is responsible; and
Contractual Agreement Between
The City of Seward and Alaska Waste-Kenai Peninsula,LLC
Page 3 of 11
2.9
2. Employers' Liability coverage with limits of not less than the
following:
Each accident: $1 million
Disease—policy limit: $1 million
Disease—each employee: $1 million
b. Insurer qualifications. Contractor will secure insurance provided by an
insurer meeting the following qualifications:
(i) is acceptable to the City of Seward,
(ii) is an admitted company in State,
(iii) has a size category of VII or larger by A.M. Best Company, Inc.,
and
(iv) has a rating of A or better by A.M. Best Company, Inc.
c. Evidence of coverage. Contractor will provide Certificates of Insurance,
endorsements, schedules and other evidence of insurance coverage requested
by the City, at the following times:
(i) on or before the contract commencement date,
(ii) promptly upon renewal of policies,and
(iii) within ten (10)days of request by the City.
1. All insurance required herein shall name the City as an
additional insured. All insurance premiums shall be the
obligation of and shall be paid by CONTRACTOR. A valid
Certificate of Insurance shall be delivered to the City's Finance
Director at the signing of this Agreement. Each insurance
policy shall contain a clause whereby the insurance company
agrees to give written notice to the City prior to any
cancellation of such policies of insurance in accordance with
the applicable provisions of such policies. The amount of the
insurance policy deductibles are subject to approval by the
City.
d. Certificates of Insurance. Contractor will provide certificates (or other
evidence of coverage)containing the following information:
(i) Contract name, explicitly identifying this Agreement.
(ii) Types, policy numbers, policy effective/expiration dates, and
limits.
(iii) 30 days' cancellation notice: Containing express condition that
the City of Seward must receive written notification by mail in
advance of cancellation for all policies evidenced on the
certificate of insurance in accordance with the applicable
provisions of such policies.
(iv) Deductibles and self-insured retentions. Identifying any
deductible and self-insured retention, and upon City request, the
CONTRACTOR will reduce any self-insured retention as it
Contractual Agreement Between
The City of Seward and Alaska Waste-Kenai Peninsula,LLC
Page 4 of l I
30
applies to the City or provide a letter of credit, certificate of
deposit or other financial assurance acceptable to the City,
guaranteeing payment of all retained losses and related costs and
expenses related to investigations, claims administration, and
legal defense.
(v) Claims made. If the City waives the prohibition on procuring
claims made policies and insurance coverage is written on a
claims-made form, then evidence that the "retro date" is before
the Agreement commencement date. CONTRACTOR must
maintain that coverage for at least five (5) years after the
termination date of this Agreement (or longer as required under
this Agreement). Promptly upon request, CONTRACTOR must
provide City with evidence of this coverage. THIS PROVISION
SURVIVES THE TERMINATION OF THIS AGREEMENT.
e. Endorsements. CONTRACTOR must provide copies of the following
endorsements or other documentation with respect to CONTRACTOR and its
subcontractors:
(i) Additional insured. Endorsements to each liability policy,
explicitly adding City and its "officers, agents, and employees"
as additional insured.
(ii) Waiver of subrogation;
(iii) Insurance is primary and not contributing with any other
insurance or self-insurance programs maintained by City.
(iv) Excluding any "insured v. insured" clause in a liability policy
with respect to City as an additional insured; and
(v) Providing dedicated limits under a liability policy in favor of
City as an additional insured.
f. Schedules. Contractor must provide schedules or other evidence that liability
policies of CONTRACTOR provide contractual liability coverage for
Indemnities, such as listing this Agreement as an "insured contract".
g. Notice of Claims. If any person makes a claim against CONTRACTOR in
excess of the amount of any deductibles or self-insured retentions,
CONTRACTOR will promptly notify City of the claim.
6. Contractor Indemnity, Defense and Release
a. To the extent allowable under applicable law, CONTRACTOR will indemnify
and hold harmless, defend with counsel approved by the City, and release the
City, its officials, employees, agents, and contractors from and against all
liabilities and losses paid, incurred or suffered by, or asserted against, the City
or any of its related parties, including any claims, demands, penalties, fines,
judgments, liabilities, settlements, damages, costs or expenses (including,
without limitation, reasonable attorney, consultant and expert fee, court costs
and litigation expenses) of whatever kind or nature, known or unknown,
Contractual Agreement Between
The City of Seward and Alaska Waste-Kenai Peninsula,LLC
Page 5 of 1 I
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contingent or otherwise, to the extent arising out of or in any way resulting
from operations under this Agreement or the use of any of the City's property
except to the extent such damages arise from the negligence or willful acts or
omissions of the City, its officials,employees, agents,or contractors.
b. CONTRACTOR indemnification and defense of the City, its officials,
employees, agents, and contractors shall extend to any claims arising out of or
in any way related to this Agreement and the presence, disposal, release or
threatened release of any hazardous material, in each case only to the extent
caused by the Contractor or arising from the Contractor's operations
hereunder, which is on, from or affecting public or city land, soil, water,
ground water, vegetation, building, personal property, persons, animals, or
otherwise including any personal injury (including wrongful death) or
property damage to the extent arising out of or related to any such hazardous
materials, and any lawsuit brought or threatened, settlement reached or
government order relating to such hazardous materials (except for damages
arising from the negligence or willful acts or omissions of the City, its
officials, employees, agents, contractors or any other third parties that are
unrelated to the Contractor).
c. CONTRACTOR shall furnish to the City's Finance Director a performance
bond in the sum of Twenty-Five Thousand Dollars ($25,000) conditioned
upon the covenants, agreements, stipulations and conditions thereof. The
executed performance bond shall be attached to this Agreement and
incorporated hereto and made a part hereof.
7. Fees Established. CONTRACTOR shall be entitled to receive the fees specified in
the Rate Schedule for Garbage and Refuse Services attached hereto as Exhibit 2, as
may be amended from time to time according to the terms of the Charter, Code, and
this Agreement.
8. Record of Services. On a monthly basis, CONTRACTOR shall supply the City with
an accurate record of the gross revenues billed and collected, for the purposes of
paying the 3%franchise fee identified in Section 10.
9. Customer Contact Point. CONTRACTOR shall serve as the primary point of
customer contact and shall receive customers' applications for service, provide the
customer with information regarding services available and fees for such services,
and receive customer complaints regarding service. The City will accept and forward
any customer complaints that are brought to the City's attention, on to
CONTRACTOR.
10. Franchise Fee. The Seward City Charter §13.5(7) requires that a franchise
contribute to the cost of maintaining local roads, alley ways, etc. which the franchise
may use in the conduct of its business. The franchise fee imposed under this section
shall be three percent (3%) of CONTRACTOR' gross revenues actually collected
Contractual Agreement Between
The City of Seward and Alaska Waste-Kenai Peninsula,LLC
Page 6 of I I
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within the corporate limits of the City for each month. The fee shall be due and
payable on the 20th day of the following month, and if not paid timely, shall be
subject to penalties and interest as provided in Seward City Code§14.01.055.
11. Rate Adjustment. The City and CONTRACTOR agree that the Rate Schedule will
be adjusted beginning on January 1 in the second full calendar year of the Term (in
this case,January 1,2014)and each subsequent January 1, equal to the following:
a. The Rate Schedule in effect during the prior contract year (or portion
thereof, plus or minus the percentage of the Consumer Price Index (CPI) bid
in response to the RFP; in this case, 140%of the annual CPI.I
b. The rate adjustment proposed in this Section 11 is subject to approval by the
Seward City Council, of a Refuse Tariff adjustment which is to be proposed to
the Council upon approval of this Agreement. Said Refuse Tariff adjustment
will propose that the CPI increase become an automatic adjustment effective
January 1St each year beginning January 1, 2014 without need of further City
Council approval, and that all other amendments to the Rate Schedule shall
require further Council approval.
12. Independent Contractor. It is specifically acknowledged and agreed that when
fulfilling its obligations pursuant to this Agreement, CONTRACTOR is an
independent contractor and the City has no control or right to control
CONTRACTOR operations, equipment and/or personnel except as expressly set forth
in this Agreement.
13. Force Majeure. If the failure of CONTRACTOR to perform under this Agreement
is due to any fault of the City, acts of God, fuel or repair supplies, fire, explosion,
tempest, weather, war, strikes,earthquakes or accidents directly or indirectly affecting
CONTRACTOR performance ("Excuses") and the Excuse is beyond the reasonable
control of CONTRACTOR or not the result of CONTRACTOR act, or omission, or
negligence, then the failure of CONTRACTOR to timely perform under this
Agreement shall not constitute a default or breach under this Agreement, and no
penalties or damage shall be payable to the City by CONTRACTOR or its agents, and
the time for CONTRACTOR performance under this Agreement shall be extended
from time to time and as often as such events occur by a period of time equal to the
time lost.
14. Arbitration. If a dispute arises between the parties concerning their respective rights
under this Agreement (excluding rate adjustments), and where commercially
reasonable and practicable, the parties shall seek to resolve the dispute by using an
appropriate form of alternative dispute resolution prior to initiating litigation
proceedings. If the parties are unable to reach resolution within sixty (60) days
Consumer Price Index(CPI)means the consumer price index(CPI-U),all items, 1982-84-100 for urban wage
earners and clerical workers,Anchorage,Alaska area,as published by the U.S.Department of Labor/Bureau of
Labor Statistics(initial release). Note: The 2014 Rate Schedule will utilize CPI Data from the calendar year 2012.
Contractual Agreement Between
The City of Seward and Alaska Waste-Kenai Peninsula,LLC
Page 7 of I I
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following notice of a written claim, either party may initiate litigation proceedings.
Rate adjustments shall not be the subject of or subject to arbitration.
15. CONTRACTOR Default. Subject to the provisions of Charter Section 13.5, if
CONTRACTOR is in default under this Agreement and the default is not excused or
the fault of the City, then CONTRACTOR shall have ten (10) business days
following written notification given according to paragraph 19 hereunder, in which to
cure the default. If the default has not been cured at the end of the ten (10) business
days, this Agreement shall terminate.
The City may also terminate this Agreement for the violation of any of its provisions,
for the misuse or non-use hereof, for failure to comply with any provision hereof, or
any regulation imposed under authority of the Charter or Code.
16. Equipment and Services. (a) CONTRACTOR shall provide sufficient equipment to
provide uninterrupted service to its customers and at its sole cost and expense, shall
maintain and keep that equipment in good repair and operating condition and shall
provide all fuel, lubricants, tires and other materials and supplies necessary for the
operation of that equipment. (b) CONTRACTOR shall furnish trained and
competent personnel at its sole cost and expense as well as all employee required or
necessary to adequately furnish services pursuant to this Agreement. At all times
CONTRACTOR shall be solely responsible for the supervision of its equipment and
personnel. (c) CONTRACTOR shall perform all services in a courteous,
professional and competent manner. CONTRACTOR shall not litter in the process of
collecting refuse, nor allow any refuse to flow or fall from any equipment used when
performing services. CONTRACTOR shall repair or replace, at its sole cost and
expense, any container(s) damaged as a result of any act, conduct or omission by
CONTRACTOR when performing services pursuant to this Agreement except for
reasonable wear and tear. (d) CONTRACTOR shall provide a toll free number to the
City and its customers located in the City to call CONTRACTOR' principal place of
business. (e) CONTRACTOR shall ensure that all required customers have signed
up for refuse collection services as required by Seward City Code §14.05.010 (a), by
coordinating new customer service with the City of Seward or by advertising, or any
other reasonable means, and shall ensure that customers have a convenient means by
which to establish new service.
17. Violations Reporting. CONTRACTOR shall report to the City violations of local,
state, or federal Iaw relating to the collection and disposal of garbage, rubbish and
waste material in the City and its service area.
18. Additional or Special Pick Up. CONTRACTOR shall respond to customer requests
for additional or special pick up (non-scheduled service) within twenty-four (24)
hours of such request unless prevented by weather, blocked access, or other reasons
beyond the reasonable control of CONTRACTOR. Sunday shall not be counted
when computing the twenty-four (24) hour response period. Unless excused by
weather, blocked access, or other reasons beyond the reasonable control of
Contractual Agreement Between
The City of Seward and Alaska Waste-Kenai Peninsula,LLC
Page 8of11
3'}
CONTRACTOR, if CONTRACTOR fails to respond within twenty-four (24) hours
the next pick up will be at no cost.
19. Customer Billing and Collections. Invoicing and billing of all customers will be the
responsibility of the Contractor. The customer will be invoiced for collection
services, waste disposal, container rental, taxes and fees, and any additional selected
services. All invoices will include service address, coverage of dates invoiced, and
the rate for the customer's level of service. Contractor shall be responsible for
collections of all fees and taxes due the Contractor from customers. Contractor may
elect to forward to the City information for all customers for whom reasonable efforts
to collect have been unsuccessful for a period of at least 120 days, and the City may
elect to begin enforcement proceedings. The City may use all legal rights to seek
recovery, including the right to place a lien upon the real property of those customers
to satisfy payment of outstanding bills. The Contractor is required to enforce
collections through reminder letters and assessment of late fees and interest, prior to
the City's assuming the debt for the purposes of enforcement. The City has no
obligation to pursue such enforcement action, but may elect to do so in order to
ensure compliance with the provisions of Seward City Code mandating participation
in refuse collections.
20. Notices. Any notice or demand which under the terms of this Agreement or any state
statute, Charter provision, or Code provision may or must be given or made by the
parties hereto shall be in writing and given and made by personal delivery or by
mailing by certified mail or registered mail,addressed to the other party as follows:
Contractual Agreement Between
The City of Seward and Alaska Waste-Kenai Peninsula,MC
Page 9 of l l
3S
City of Seward Alaska Waste - Kenai Peninsula, LLC
City Manager Attn: Matt O'Connell,Division Manager
P.O. Box 167 6301 Rosewood St.,
Seward, Alaska 99664 Anchorage AK 99518
Either party may, however, designate in writing such new or other address to which such
notice or demand shall thereafter be so given, made or mailed. Any notice given under
this Agreement by mail shall be deemed delivered when deposited in a United States
general or branch post office, enclosed in a registered or certified prepaid wrapper
addressed as set forth above.
21. interpretation. This Agreement, together with the Charter and Code, contains the
entire agreement between the Parties. There is no other understanding, oral or
written, which in any manner changes or enlarges what is set forth in this Agreement.
22. Assignment. CONTRACTOR shall not sell, assign, sublet or allow another to use
this Agreement (the franchise contract) without prior approval by resolution of the
City Council. This provision is subject to Charter Section 13.8.
23. Time of the essence. Time is of the essence of each and every provision of this
Agreement.
24. Binding Effect. This Agreement shall extend to and be binding upon the heirs,
administrators, executors, successors, and assigns of the respective Parties.
25. Headings. Headings used in this Agreement are for convenience only and shall not
affect the construction of this Agreement.
26. Applicable Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Alaska, excluding any conflict of law, rule or principle,
which might refer such construction to the laws of another state or jurisdiction.
27. Modification. Except for rate adjustments in Section 11, no modifications, changes,
or amendments may be made to this Agreement by either Party except in a written
instrument executed by each party or as may be required by the applicable provisions
of the City Charter, City Code, or Alaska Statutes.
28. Waiver. The failure of either Party to insist upon strict performance of any provision
of this Agreement shall not constitute a waiver of or estoppel against asserting the
right to require that performance in the future. A waiver or estoppel in any one
instance shall not constitute a waiver of or estoppel against asserting the right to
require that performance in the future. A waiver or estoppel in any one instance shall
not constitute a waiver or estoppel with respect to a later breach or a similar nature or
otherwise. A course of performance established by a party shall also not estop the
other party from complaining of a later breach similar in nature.
Contractual Agreement Between
The City of Seward and Alaska Waste-Kenai Peninsula,LLC
Page 10 of I I
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29. Construction. The rule of contract construction that ambiguities, if any, in a writing
be construed against the drafter shall not apply to this Agreement.
30. Severability. In the event that any term, condition, or provision of this Agreement is
declared by a court of competent jurisdiction to be void or unenforceable, the
remaining terms, conditions, and provisions of this Agreement shall remain valid and
enforceable as if such void of unenforceable term, condition, or provision was
omitted from the Agreement when the Agreement was first executed.
IN WITNESS WHEREOF, the Parties have executed this Agreement the day and
year set opposite their respective signatures.
By: City of Seward Alaska Waste—Kenai Peninsula, LLC
/..►_i/ a4_-- )
m Hunt, City Manager Matt O'Connell, Division Manager
Date: 11I2)apt O.
ATTEST:
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Contractual Agreement Between
The City of Seward and Alaska Waste-Kenai Peninsula,LLC
Page I 1 of 11
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Final Certificate of Results
Regular Municipal Election
Tuesday,October 2,2012
Page 2
Proposition 1.
ESTABLISHING AND ADOPTING A FINANCIAL DISCLOSURE FORM AND
GUIDELINES FOR THE CITY OF SEWARD AND EXEMPTING MUNICIPAL
OFFICIALS FROM THE REQUIREMENT OF STATE FINANCIAL DISCLOSURE
LAWS - Shall the City of Seward establish and adopt its own financial disclosure form
and provisions for the Mayor, City Council, Planning and Zoning Commission, and the
City Manager by requiring substantially the same information as the Alaska Public
Offices Commission required prior to 2007, and be exempt from Alaska Statute 39.50,
the Alaska Public Officials Financial Disclosure Law?
Election Day Votes After Canvass Votes Total Votes
YES 204 21 225
NO 120 14 134
Proposition 2.
FRANCHISE AGREEMENT FOR THE COLLECTION AND
DISPOSAL OF GARBAGE AND REFUSE - Do you approve a seven-year franchise
agreement with Alaska Waste — Kenai Peninsula, LLC for the collection and disposal of
garbage and refuse? The franchise agreement contains an option to extend for up to an
additional three years. The agreement allows for costs to be adjusted annually based on
140% of the Consumer Price Index. The agreement provides an opportunity for periodic S
rate reviews with all other consumer rates to be set by resolution of the City Council.
Election Day Votes After Canvass Votes Total Votes
YES 219 27 246
NO 107 7 114
A total of 338 people voted at this election plus 38 counted absentee votes = 376 Total.
Upon completion of the canvass, it is our opinion that the attached summary of election
returns compiled above, accurately reflect the final totals for the Regular City Election
held October 2, 2012.
Dated this 4th day of October, 2012.
f•- ,$
3$
Seward, AK Code of Ordinances Page 1 of 3
Chapter 14.05.-Garbage and Refuse]
Footnotes:
---(3)---
State Law reference—See AS 29.35.050 for state provisions allowing municipalities to provide for a system of garbage and solid waste services;
see AS 29.35.060 for state provisions allowing municipalities to grant franchises;see§7.10.210 et seq.as to garbage disposal in trailer courts.
14.05.010. - Refuse service provided and required.
(a) Every person occupying and/or owning a building or building site within the city shall use the
system of refuse disposal provided in this chapter, unless the person utilizes a carrier holding a
valid permit from the Regulatory Commission of Alaska.
(b) The city shall either provide or contract for collection and disposal of refuse.The public works
department of the city or the contractor shall prescribe routes and days for collection. When such
routes or days are established or changed, reasonable notice thereof shall be given to affected
customers. No other carrier other than one authorized by the Regulatory Commission of Alaska
may collect, dispose, or remove refuse from any premises in the city. Nothing in this section shall
be deemed to prohibit an occupant and/or owner from removing or causing the removal of refuse
accumulated on the premises occupied by him and disposing of the same in a lawful manner.
(Ord.415, 1975; Ord. 428, 1976; Ord. 504, 1982; Ord. No. 2012-008, § 1, 9-10-2012)
14.05.015. - Deposit of refuse.
(a) No person shall place or deposit any refuse in or upon any public alley, street or highway,
sidewalk, park or other public place in the city except as herein expressly authorized. No person
shall place any refuse on land of another.
(b) Dumpsters or trash receptacles located on public property may only be used for depositing small
quantities of refuse generated in connection with public activities such as picnicking, camping,
touring, pleasure boating, sport fishing, or other outdoor recreation. No person shall deposit
refuse generated by residential, commercial, or industrial uses in or near any dumpster or trash
receptacle located on public property. No person shall deposit refuse in or near any dumpster or
trash receptacle located on public property contrary to any instructions posted on or near the
dumpster or trash receptacle.
(c) No person shall deposit refuse in a private dumpster without the owner's consent. Owners of
dumpsters may post signage on or near privately owned dumpsters stating that unauthorized use
is a violation of the City Code.
(d) Violation of this section is subject to a fine of$100.00 for each offense.
(Ord. 504, 1982; Ord. 96-28)
14.05.020. -Transportation.
No person shall transport refuse within the city unless it is transported in a covered or enclosed
vehicle or one which is loaded in such manner as to prevent any of the contents from escaping.
(Ord. 417, 1976; Ord. 504, 1982)
14.05.025. - Use of containers and placement.
(a)
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Every person occupying and/or owning a building in the city shall provide containers suitable for
collection of refuse.All refuse such as vacuum cleaner dust, nonexplosive liquids, sweepings and
other refuse that poses a hazard to collection or risk of spillage in normal collection shall be
individually packaged prior to placement in a container.
(b) Customer containers shall be placed abutting a dedicated public right-of-way. Only city containers
may be placed upon the public right-of-way.
(Ord. 504, 1982; Ord. No. 2012-008, § 2, 9-10-2012)
14.05.030. -Container specifications generally.
(a) All containers shall conform to the following minimum specifications:
(1) Shall not exceed ninety-six gallons capacity;
(2) Shall not exceed two hundred twenty pounds when filled;
(3) Shall not exceed sixty-five pounds empty weight;
(4) Shall be watertight with an animal-proof lid and of adequate durability for continued use. No
corrugated cardboard box shall be used except as herein provided. No fifty or fifty-five gallon
steel petroleum drums or the like shall be permitted,whether cut down or otherwise altered.
(b) Certain bulk rubbish and waste material containers may be approved by the public works
department of the city. Such containers shall be kept in a clean and sanitary condition and shall be
provided with tight lids.
(Ord. 504, 1982; Ord. 95-06; Ord. No. 2012-008, § 3, 9-10-2012)
14.05.035. - Container racks.
Containers or container racks shall be designed so as to prevent the upsetting or spillage by wind,
weather, animals, or accident.Violation of this section due to bear attractants is subject to a fine of one
hundred dollars for each offense.The fine for the first offense only will be waived upon proof of
purchase or lease of the appropriate containment measure(e.g. locking dumpster lid, bear-resistant
dumpster, or bear-resistant garbage can), provided the containment measure is in place within thirty
days of the date of the violation. More than one violation of this section by dumpster customers will
require the occupant and/or owner to obtain a locking dumpster lid or bear-resistant dumpster for the
period May through October. In addition to the one hundred dollar fine, more than one violation of
this section by customers utilizing garbage cans will require the occupant and/or owner to purchase or
lease a bear-resistant garbage can.
(a) Containers or container racks shall not be placed on the public right-of-way.
(Ord. 504, 1982; Ord. 95-06; Ord. No. 2012-008, §4, 9-10-2012)
14.05.040. - Frequency of collection.
All garbage and rubbish receptacles shall be emptied and cleaned at least weekly.All waste
material must be removed at least once each month. Building or construction waste and debris shall
be removed weekly and upon completion of construction.
(Ord. 504, 1982)
14.05.045. - Brush,tree trimmings, etc.
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Brush, trees, lawn cuttings or similar materials shall be securely bound in bundles not to exceed
two feet in diameter.They may be placed in disposable cardboard containers. Branches or logs shall
not be more than three inches in diameter or more than four feet in length. Containers shall not
exceed 65 pounds in weight.
(Ord. 504, 1982)
14.05.050. - Large boxes, crates, etc.
Large appliance cartons,shipping crates or small non-bulky items or furniture and similar
materials shall be disassembled prior to collection.
(Ord. 504, 1982)
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14.01.065. - Discontinuance of service and remedies by city.
(a) Termination of service. Upon five days'written notice,the city reserves the right to discontinue or
reduce any one or more utility services for any one or more of the following reasons:
(1) Intent to defraud the city of payment for all or any part of such use;
(2) Use in an illegal manner or for the furtherance of an illegal purpose or for any purpose other
than that described in the application for service;
(3) Resale or redistribution of a utility service;
(4) Tampering with any utility service connection or property of the city;
(5) Nonpayment of any bills for utility services;
(6) Refusal of reasonable access to the premises for inspection, repair, maintenance,
replacement or operation;
(7) Noncompliance with any requirement imposed by the code or by resolution;
(8) Failure to repair any defect or break in utility service,to the extent it is the customer's
obligation to do so;
(9) Other equipment or structures which by their proximity or nature introduce a safety hazard;
(10) Such other reason or condition as the city may deem appropriate.
(b) Lien on property. Charges levied in accordance with this title shall be a debt due to the city and a
lien upon the property which has been benefitted by the services. Change of ownership or
occupancy of premises delinquent shall not be the cause for reducing or eliminating any applicable
penalties.
(c) Expenses. The expense of discontinuance, reduction, removal or closing, as well as the expense of
restoring service, shall be a debt due to the city(and a lien upon the property)and may be
recovered by civil action in the name of the city against customer,the person, or both.
(d) Criminal penalties. Any person who shall continue any violation other than an obligation to pay
money beyond written notice and reasonable time to cure shall be guilty of a misdemeanor in
addition to being liable in damages and, upon conviction thereof, shall be fined in an amount not
exceeding$25.00 for each violation. Each day in which any such violation shall continue shall be
deemed separate offense.
(e) Safety. Conditions which cause a clear and immediate safety hazard to customers or other
personnel shall be cause for immediate disconnection of service without notification.
(Ord. 504, 1982; Ord. 610, 1988; Ord. 95-06)
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q//ii/ , A J RECEIVED
exvi /Apky1 C--e- SEP 082015
September 8, 2015 OFFICE OF THE
CITY CLERK
The purpose of this correspondence is to protest the garbage /trash services being forced upon
me. I am retired and spend a great amount of my time traveling. I DO NOT desire this service
or expense. I question the legality of this mandate and also consider the ethical aspect of this
decision offensive. This is particularly the case since I already have a service available that my
borough property taxes pay for, and have opted to use it for more than 5 years. I reside less
than a mile from the transfer station which I use to recycle.
I spent more than 20 years on active duty in the US Army, to ensure that our freedoms of
choice are preserved. How does the City Council find it appropriate to take my choices away by
mandating a service I DO NOT want from a specific vendor? What's next? - mandate a specific
cable service or cell phone provider?
The only rationale I have been provided, is that a small number of irresponsible residents
create an unhealthy and unsightly environment. If this is the case, do your job and enforce the
existing laws that apply - don't mandate that everyone should pay the bill!
I would also like to share some of the reasons that I "CHOSE" to utilize the Borough Facility:
* close proximity
• disposal of recycling materials
* negates the storage of garbage and dragging of cans approximately 100 yards
• cleaning up of messes created by wind, birds, dogs, bears,etc.
• spending of more than $350 per year that I DO NOT need or desire
* inconvenience of stopping and starting of service each time I travel
As I am sure the council is aware, there are a significant number of residents who are
disgruntled with the mandate. This includes a number of seasonal resident being forced to
participate.
I believe the city council should immediately remove this mandate and represent the people of
Seward!
Z71 ------)
• rd Oren
415 Afognak
email: noren richard@yahoo.com
cell: (907) 360-5625
ct ( I ( 'AI5
Brenda BaIlou UCC-'✓ICe—
From: Richard Noren <noren_richard@yahoo.com>
Sent: Tuesday, September 08, 2015 2:29 PM RECEIVED
To: Brenda Ballou
Subject: Fwd: garbage pickup SEP Q 82015
OFFICE OF THE
CITY CLERK
Sent from my iPhone
Begin forwarded message:
From: Molly<molquill@a,aol.com>
Date: September 8, 2015 at 12:25:12 PM AKDT
To: "noren richardAyahoo.com" <noren richardAyahoo.com>
Subject: garbage pickup
To whom it may concern
I am writing today to express my concern and dissatisfaction with the recent decision to impose a
mandatory garbage pickup on the citizens of Seward. I have heard many reasons as to why this might
have occurred. Whatever the reason I am against being forced to use a service for which I have no use. I
live fairly close to the transfer station and take my garbage directly there. I am not a full time resident and
would be paying for a service that I do not use, not to mention I have no need to drag a garbage can
around and cleanup after wildlife that gets into the can. If there are issues with certain citizens not taking
care of garbage on their property then use existing city code to fix the problem. If this is just another
attempt at more money for the general fund then it is an appalling tactic. Please reconsider your decision
and reverse this requirement. The current system of deposing of my garbage works fine and is not
broken. Do not try and fix it.
Fredrick Ramsey
2311 Afognak
Seward AK
NOTE: This message was trained as non-spam. If this is wrong, please correct the training as soon
as possible.
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Forget previous vote
°I ) ILI S
Johanna Kinney
From: David Squires
Sent: Thursday, September 03, 2015 3:15 PM
To: Johanna Kinney
Subject: RE: Questions for 9/14 work session
Johanna,
Can you put it with the Council packet?
David
From: Johanna Kinney
Sent: Monday, August 31, 2015 4:48 PM
To: Jim Hunt; Ron Long; Kris Erchinger; Will Earnhart (wearnhart(aakatty.com)
Cc: Brenda Ballou; David Squires
Subject: FW: Questions for 9/14 work session
Hi All,
Some questions Council Member Squires is intending to ask at the work session on September 14th. He wanted me to
distribute ahead of time so staff could be prepared to answer them, which is helpful.
Thanks,
yon <1,
From: David Squires
Sent: Monday, August 31, 2015 4:44 PM
To: Johanna Kinney
Subject: Questions for 9/14 work session
Johanna,
Here are some questions for staff concerning the 9/14 work session. Other Council members may be interested in these
questions too.
1. Under Section 14.05.010 (a), does the City or the contractor hold a valid permit from the Regulatory Commission of
Alaska?
2. Under Section 14.05.010(b), if the occupant and/or owner uses the procedure stated in the last sentence and KPB or
the contractor holds a valid permit from the RCA, why does the occupant and/or owner need to use the City provided
service?
3. Is the City using Section 14.01.065 a 5 to shut off the electric and/or water (utilities) for non-payment for garbage
collection?
4. If the answer to the above question is yes; then I assume the garbage collection is a utility and therefore can have a
discontinuance, temporary shut-off and restoration of service?
5. What impacts is there to the budget if residents can discontinue service or temporary shut off the service?
(Under Section 14.01.060 B the temporary shutoff three months or less shall be charged in an amount set by resolution.)
I think Will is scheduled to be at this meeting, he may be interested in these questions also.
David
1
Brenda Ballou
From: Will Earnhart <wearnhart@akatt A
C/Lcc
Sent: Friday, September 04, 2015 7:46
To: Johanna Kinney;Jim Hunt; Ron L
Cc: Brenda Ballou; David Squires; Dc
Subject: RE: Questions for 9/14 work ses5 / 9 Na/(7..)
Short answers from legal:
1. Alaska Waste holds the current tariff. Seward has the cei „H.-E.C.-TE 1-800-247-8683•www.essvote.com ity and
Convenience,) which establishes the exclusive franchise.
2. The last sentence in 14.05.010(b) simply makes it clear a landowner can bring garbage to the dump or use some
other method, as long as it complies with the law; they don't have to wait for scheduled service. Regulation
under the RCA is intended to allow and regulate an exclusive franchise for the geographical area. In other words,
there is no other contractor with a valid permit.
3. The City can terminate all utility services, but has generally not utilized this procedure for other than possibly as
a threat to bring an account current after repeated refusals to enter into a payment agreement.
4. 14.01.060(b)only requires that temporary shut offs of less than three months require a fee, (set by
resolution.) Longer shut offs would be managed by city or contractor policy. I'm not sure how this would apply
to other utilities that are not mandatory, such as electrical.
5. I don't know the budget implications, but they are believed to be negligible.
William A. Earnhart
wearnhart@akatty.com
WOHLFORTH I BRECHT I CARTLEDGE
A Professional Corporation
900 West 5th Avenue, Suite 600
Anchorage,AK 99501
Phone: 907.276.6401
Direct: 907.339.3602
Fax: 907.276.5093
NOTICE: This communication is confidential, it is intended only for the named recipient(s) above and may contain
information that is privileged, attorney work product or otherwise protected by applicable law. If you are not the
intended recipient or believe that you may have received this communication in error, please notify the sender and
delete this e-mail. Unintended recipients of this e-mail should not print, copy, retransmit, disseminate or otherwise use
the information.
ANY FEDERAL TAX ADVICE CONTAINED IN THIS MESSAGE SHOULD NOT BE USED OR REFERRED TO IN THE PROMOTING,
MARKETING OR RECOMMENDING OF ANY ENTITY, INVESTMENT PLAN OR ARRANGEMENT, AND SUCH ADVICE IS NOT
INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A TAXPAYER FOR THE PURPOSE OF AVOIDING
PENALTIES UNDER THE INTERNAL REVENUE CODE.
From: Johanna Kinney [mailtojkinney@cityofseward.net]
Sent: Monday, August 31, 2015 4:48 PM
To: Jim Hunt; Ron Long; Kris Erchinger; Will Earnhart
Cc: Brenda Ballou; David Squires
Subject: FW: Questions for 9/14 work session
Importance: High
Hi All,
Some questions Council Member Squires is intending to ask at the work session on September 14`h. He wanted me to
distribute ahead of time so staff could be prepared to answer them, which is helpful.
Thanks,
From: David Squires
Sent: Monday, August 31, 2015 4:44 PM
To: Johanna Kinney
Subject: Questions for 9/14 work session
Johanna,
Here are some questions for staff concerning the 9/14 work session. Other Council members may be interested in these
questions too.
1. Under Section 14.05.010 (a), does the City or the contractor hold a valid permit from the Regulatory Commission of
Alaska?
2. Under Section 14.05.010(b), if the occupant and/or owner uses the procedure stated in the last sentence and KPB or
the contractor holds a valid permit from the RCA, why does the occupant and/or owner need to use the City provided
service?
3. Is the City using Section 14.01.065 a 5 to shut off the electric and/or water (utilities) for non-payment for garbage
collection?
4. If the answer to the above question is yes; then I assume the garbage collection is a utility and therefore can have a
discontinuance, temporary shut-off and restoration of service?
5. What impacts is there to the budget if residents can discontinue service or temporary shut off the service?
(Under Section 14.01.060 B the temporary shutoff three months or less shall be charged in an amount set by resolution.)
I think Will is scheduled to be at this meeting, he may be interested in these questions also.
David
NOTE: This message was trained as non-spam. If this is wrong, please correct the training as soon
as possible.
Spam
Not spam
Forget previous vote
2
Johanna Kinney
From: David Squires
Sent: Friday, September 04, 2015 4:16 PM
To: Kris Erchinger; 'Will Earnhar;Jim Hunt; Ron Long
Cc: Donna Charter;Johanna Kinney; Brenda Ballou
Subject: RE: Questions for 9/14 work session
Kris&Will,
Thank-you both for your answers. Kris another question comes to mind is on the shut off process. How much staff time is
spent on a possible disconnect, who puts on the notice to disconnect on the door and what is your estimate of the
amount of funds used in a disconnect process? If we can come up with a fee for discontinuing a service would it be a
benefit to the City? I know these questions seem silly but I have been asked by residents these questions and I do not
have the answers for them. Be advised I have told everyone who has asked me questions on this item to come to the
work session to ask their question(s) so they get it straight from the proper source.
David
From: Kris Erchinger
Sent: Friday, September 04, 2015 1:23 PM
To: 'Will Earnhart'; Jim Hunt; Ron Long
Cc: David Squires; Donna Charter
Subject: RE: Questions for 9/14 work session
The City has disconnected electric service for two customers this summer for failure to pay refuse charges. In both of
these cases,the individuals were offered the opportunity first to make a payment agreement with Alaska Waste,which
they both refused. Then the City sent them a letter stating that if they would enter into an agreement with Alaska
Waste to deal with their past due bill,the City would not intervene to add the charges to their utility bill. They still
refused, so the amount was added to the utility bill and a late letter sent. No response, so we communicated with them
in order to attempt to get them to enter into a payment agreement to cover their past due bill,to avoid adverse
action. Both individuals stated that they had no intention of paying now or in the future. Based on refusal to pay—
which is handled differently than inability to pay, where we work out a payment agreement—we sent out door hangers
warning of our intent to disconnect. No response. We made numerous phone calls in advance of disconnecting
service. Still no response. Service was disconnected based on our standard practice.
Both bills have since been paid in full and utility service restored. Without this ability to disconnect service, I estimate
that 30+customers would not have paid their bills. If service were not mandatory, there would be more than 100
customers(this is the approximate amount of customers who have indicated that they do not want to pay)who would
elect not to pay,which would cause the City to have to renegotiate the tariff with the contractor, necessitating an
increase in bills for those who agree to pay in order to cover the contractor's sunk and operating costs. Ultimately, it
could threaten the viability of a refuse contract with a contractor. If that were to occur,the City would have to consider
the cost of entering the refuse business.
Thanks,
Kristin Erchinger
From:Will Earnhart [mailto:wearnhart@akatty.com]
Sent: Friday, September 04, 2015 7:46 AM
To:Johanna Kinney<jkinney@cityofseward.net>;Jim Hunt<jhunt@cityofseward.net>; Ron Long
<rlong@cityofseward.net>; Kris Erchinger<kerchinger@cityofseward.net>
Cc: Brenda Ballou<bballou@cityofseward.net>; David Squires<dlsquires@cityofseward.net>; Donna Charter
<dcharter@akatty.com>
Subject: RE:Questions for 9/14 work session
1
Short answers from legal:
1. Alaska Waste holds the current tariff. Seward has the certificate of need (Certificate of Public Necessity and
Convenience,) which establishes the exclusive franchise.
2. The last sentence in 14.05.010(b)simply makes it clear a landowner can bring garbage to the dump or use some
other method, as long as it complies with the law; they don't have to wait for scheduled service. Regulation
under the RCA is intended to allow and regulate an exclusive franchise for the geographical area. In other words,
there is no other contractor with a valid permit.
3. The City can terminate all utility services, but has generally not utilized this procedure for other than possibly as
a threat to bring an account current after repeated refusals to enter into a payment agreement.
4. 14.01.060(b)only requires that temporary shut offs of less than three months require a fee, (set by
resolution.) Longer shut offs would be managed by city or contractor policy. I'm not sure how this would apply
to other utilities that are not mandatory, such as electrical.
5. I don't know the budget implications, but they are believed to be negligible.
William A. Earnhart
wearnhart@akatty.com
WOHLFORTH I BRECHT I CARTLEDGE
A Professional Corporation
900 West 5th Avenue,Suite 600
Anchorage,AK 99501
Phone: 907.276.6401
Direct:907.339.3602
Fax: 907.276.5093
NOTICE: This communication is confidential, it is intended only for the named recipient(s) above and may contain
information that is privileged, attorney work product or otherwise protected by applicable law. If you are not the
intended recipient or believe that you may have received this communication in error, please notify the sender and
delete this e-mail. Unintended recipients of this e-mail should not print, copy, retransmit, disseminate or otherwise use
the information.
ANY FEDERAL TAX ADVICE CONTAINED IN THIS MESSAGE SHOULD NOT BE USED OR REFERRED TO IN THE PROMOTING,
MARKETING OR RECOMMENDING OF ANY ENTITY, INVESTMENT PLAN OR ARRANGEMENT, AND SUCH ADVICE IS NOT
INTENDED OR WRITTEN TO BE USED,AND CANNOT BE USED, BY A TAXPAYER FOR THE PURPOSE OF AVOIDING
PENALTIES UNDER THE INTERNAL REVENUE CODE.
From: Johanna Kinney [mailto:jkinney@cityofseward.net]
Sent: Monday, August 31, 2015 4:48 PM
To: Jim Hunt; Ron Long; Kris Erchinger; Will Earnhart
Cc: Brenda Ballou; David Squires
Subject: FW: Questions for 9/14 work session
Importance: High
Hi All,
Some questions Council Member Squires is intending to ask at the work session on September 14th. He wanted me to
distribute ahead of time so staff could be prepared to answer them, which is helpful.
Thanks,
2
From: David Squires
Sent: Monday, August 31, 2015 4:44 PM
To: Johanna Kinney
Subject: Questions for 9/14 work session
Johanna,
Here are some questions for staff concerning the 9/14 work session. Other Council members may be interested in these
questions too.
1. Under Section 14.05.010 (a), does the City or the contractor hold a valid permit from the Regulatory Commission of
Alaska?
2. Under Section 14.05.010(b), if the occupant and/or owner uses the procedure stated in the last sentence and KPB or
the contractor holds a valid permit from the RCA, why does the occupant and/or owner need to use the City provided
service?
3. Is the City using Section 14.01.065 a 5 to shut off the electric and/or water(utilities) for non-payment for garbage
collection?
4. If the answer to the above question is yes; then I assume the garbage collection is a utility and therefore can have a
discontinuance, temporary shut-off and restoration of service?
5. What impacts is there to the budget if residents can discontinue service or temporary shut off the service?
(Under Section 14.01.060 B the temporary shutoff three months or less shall be charged in an amount set by resolution.)
I think Will is scheduled to be at this meeting, he may be interested in these questions also.
David
NOTE: This message was trained as non-spam. If this is wrong, please correct the training as soon
as possible.
Spam
Not spam
Forget previous vote
3