HomeMy WebLinkAbout06272018 City Council Work Session - SSDD M & O AgreementNodCitydraftof2/29/2012
MAINTENANCE AND OPERATING AGREEMENT
between
CITY OF SEWARD, ALASKA
and
SEWARD SHIP'S DRYDOCK, INC.
tad
Dated as of April 1, 2012
88
ID ID
Stow TABLE OF CONTENTS
PAGE
ARTICLE 1 Definitions 2
ARTICLE 2 General Provisions 5
Section 2.01 - Agreement Term 5
Section 2.02 - Specific Use Restrictions 5
Section 2.03 - Environmental Matters 5
Section 2.04 - Protection Against Liens 7
Section 2.05 - No Preferential Rights to Use Port Facilities 8
Section 2.06 - Security for Shiplift Premises 8
Section 2.07 - Leasing and Use of Managed Parcel ................... .......8
Section 2.08 - Inspection by City 8
ARTICLE 3 Operation and Maintenance of Shiplift Facility 9
Section 3.01 - Revenue 9
Section 3.02 - Annual Facility Costs 9
Section 3.03 - Operation of Shiplift Facility 9
Section 3.04 - Maintenance of Accounts; Statements; 10
Nur Section 3.05 - Operating Plan ................ ....... ........................,..... 10
Section 3.06 - Inventory 11
Section 3.07 - Rates and Charges 11
ARTICLE 4 Indemnity; Insurance 11
Section 4,01 - Operator's Duty to Indemnify 11
Section 4.02 - Insurance Requirements 11
ARTICLE 5 Assignment 13
Section 5.01 - Assignment of Agreement............. 13
Section 5.02 - Assignment 13
ARTICLE 6 Default; Remediesl3
Section 6.01 - Events of Default 13
Section 6.02 - Remedies for Default by Operator 14
Section 6.03 - No Waiver of Breach 14
Section 6.04 - Cure by City 15
ARTICLE 7 Miscellaneous 15
Section 7.01 - Time 15
Section 7.02 - Entire Agreement 15
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Section 7.03 - Relationship of Parties 15
Section 7.04 - Notices 15
Section 7.05 - Binding Effect 16
Section 7.06 - Severability 16
Section 7.07 - Amendments 16
Section 7.08 - Execution in Counterparts 16
Section 7.09 - Applicable Law; Jurisdiction 16
Section 7.10 - Captions 16
Exhibit A - Deferred Maintenance
Exhibit B - Description of SMIC
Exhibit C - Fencing Specifications
Exhibit D - Maintenance Tasks and Schedule
Exhibit E - Inventory of Spare Parts
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MAINTENANCE AND OPERATING AGREEMENT
I
1
This Maintenance and Operating /6 greement (this "Agreement") is made as of
April 1, 2012 between the City of Sewa 1, Alaska, an Alaska municipal corporation
City"), whose address is P.O. Box 167, Seward, Alaska 99664, and Seward Ship'sDrydock, Inc. ("Operator"), whose address i P.O. Box 944, Seward, Alaska 99664.
WHEREAS, since 1980 City has provided for the development of the Seward
Marine Industrial Center (the "SMIC"), and City expended over $40 million in
construction of improvements to the area, including a Syncrolift Shiplift System, Ship
Transfer System and related rail systems (the "Shiplift Facility"); and
WHEREAS, City and Operator were Lessor and Lessee, respectively, under a
lease agreement effective as of September 2, 1988, as amended (the "Prior Lease"), a
memorandum of which was recorded at Bo4k 53, Page 255, Seward Recording District,
Third Judicial District, State of Alaska, un er which Operator leased from City certain
real property located in the SMIC, as desc ibed in the Prior Lease to operate a vessel
repair and construction facility; and
WHEREAS, the continued maintena ce and operation of the Shiplift Facility is
important to the profitable operation of perator's vessel repair and construction
business on the Premises; and
loar
WHEREAS, the voters of the City of Seward in 1992 rejected two specific
proposals for the sale or lease of the Shiplift Facility to Operator, and the City desires to
transfer to Operator maintenance and operating responsibility for the Shiplift Facility
without a sale or lease of the Shiplift Facility, in accordance with the voters' preference;
and
WHEREAS, an arbitrators' decision and order dated January 8, 1993, set forth
certain rights of City and Operator under the rior Lease, including the determination that
City could not enforce any penalty against perator for a period of 24 months after the
date of the arbitrators' decision and order or until January 9, 1995), with respect toi
Operator's failure to construct a permanent covered repair building capable of enclosing
a vessel 300 feet in length (the "300-Foot Building"); and
WHEREAS, the City Council of City declined to extend the time for construction of
the 300-foot building, requesting that in li u of constructing the 300-Foot Building
Operator assume all expenses of operating aiid maintaining the Shiplift Facility; and
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lWHEREAS, City and Operator entered into a new lease and are Lessor and ad
Lessee, respectively, under a lease agreement dated April 25, 1995, as amended,
whereby Operator was relieved of the obligation to construct the 300-Foot Building, and
Operator simultaneously entered into that certain Maintenance and Operating
Agreement dated April 25, 1995 ("Initial Agreement") to assume the expense of
maintaining and operating the Shiplift Facility; and
WHEREAS, following expiration of the Initial Agreement the parties entered into a
Maintenance and Operating Agreement dated March 30, 2000, which has been
amended and extended nine times; and
WHEREAS, the work described as "Deferred Maintenance" in Exhibit A has been
completed by the Operator; and
WHEREAS, the parties have determined that it is in their respective interests to
continue their relationship for the maintenance and operation of the Shiplift Facility by
entering into this Agreement, and the Operator agrees to assume the continued expense
of maintaining and operating the Ship lift Facility;
NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties agree as follows:
ARTICLE 1
Definitions
The following terms will have the meanings indicated below unless the context
clearly requires otherwise:
Agreement" means this Maintenance and Operating Agreement, as amended
from time to time.
Agreement Term" means the duration of this Agreement as set forth in Section
2.01.
Annual Facility Costs" means annual costs of the Ship lift Facility as described in
Section 3.02.
Auditor" means an independent certified public accountant or firm of certified
public accountants engaged by the City.
City" means the City of Seward, Alaska.
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Ilir
Environmental Laws" means all 'local, state and federal laws, ordinances,
regulations and orders related to environmental protection; the use, storage, generation,
production, treatment, emission, discharg , remediation, removal, disposal or transport
of any Hazardous Substance; or any other environmental matter, including without
limitation any of the following statutes:
i) Federal Resource Cons rvation and Recovery Act of
1976, as amended, 42 U.S.C. Sections 6901-6991K;
ii) Federal Comprehens ve Environmental Response
Compensation, and Liability Act of 1980, as amended, 42
U.S.C. Sections 9601-9675;
iii) Federal Clean Air Act, 42 J.S.C. Sections 7401-7642;
iv) Federal Hazardous Materi I Transportation Control Act of
1970, as amended, 49 U.S.C. ections 1801-1812;
v) Federal Clean Water Act •If 1977, as amended, 33 U.S.C.
Sections 1251-1387;
I
vi) Federal Insecticide, Fun icide, and Rodenticide Act, as
amended, 7 U.S.C. Sections 2 01-2671;
vii) Federal Toxic Substances Control Act, 15 U.S.C.
Sections 2601-2671;
viii) Federal Safe Drinking Water Act, 42 U.S.C. Sections
300f-300i-26; and I
ix) Title 46 of the Alaska Statites.
Event of Default" means any of the events described in Section 6.01.
Fiscal Year" means the calendar year.
Hazardous Substances" means any ubstance or material defined or designated
as hazardous or toxic waste, hazardous or toxic material, a hazardous, toxic or
radioactive substance, or other similar terri, by any Environmental Laws, and shall
include any such substance or material as rray hereafter become defined or designated
as hazardous or toxic material by any Enviro mental Laws.
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1
Lease" means the ground lease of the Premises between City and Operator,
dated as of April 25, 1995, as amended from time to time.
Maintenance and Operation Costs" means the actual and necessary costs of
maintaining and operating the Ship lift Facility, including without limitation the reasonable
expenses of management, repair and other expenses necessary to maintain the Ship lift
Facility in good repair and working ordor, reasonable amounts for administration,
overhead, insurance, utilities, consulting and technical services, employer costs
including pension costs), taxes (but not payments in lieu of taxes), charges payable
pursuant to any licenses, permits or other authorizations of any agency or regulatory
body having lawful jurisdiction, and other similar costs, but excluding depreciation (or
reserves therefor), amortization of intangibles or other bookkeeping entries of a similar
nature, and the costs of capital additions, replacements, betterments, extensions or
improvements to the Ship lift Facility.
Managed Parcel" means the area within the SMIC designated as such on Exhibit
B hereto, which is south of the fence on the northern boundary of the Premises
constructed by Operator under Section 2.06, and which is not part of the Premises or the
Ship lift Facility.
Maintenance" means all of the repair, maintenance and replacement of parts and
equipment for the Ship lift Facility as further described in Article 3 and Exhibit D.
Niad
Operator" means Seward Ship's Drydock, Inc., an Alaska corporation, its
successors and assigns.
Port Facilities" means all public port facilities owned or operated by City from
time to time, including without limitation the Shiplift Facility.
Premises" means the land plus any improvements described as such in the
Lease.
Revenue" means all of the following fees or charges for use of the Ship lift
Facility: lift fees; receipts for labor to operate the syncrolift facility in raising or lowering a
vessel; uplands day lay charges; and moorage and wharfage on the Shiplift Facility dock.
SMIC" means the Seward Marine Industrial Center, consisting of the area shown
on the site map in Exhibit B hereto.
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tL Shiplift Facility" means the Syncro ift Shiplift System in the SMIC, including the
mechanical shiplift and all associated eq ipment, all upland rails not located on the
Premises or other leased property, the si e transfer cradle assembly, the shiplift dock,
and 33 connected cofferdam cells comprisirfig the south breakwater.
Shiplift Premises" means the Shiplift Facility and the Managed Parcel.
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ART! LE 2
General •rovisions
Section 2.01 - Agreement Term. Th 1 Agreement Term commences April 1, 2012,
and unless sooner terminated as provide herein ends at the earlier of (i) date of
expiration or termination of the Lease term, nd (ii) March 31, 2017.
eil
Section 2.02 - Specific Use Restrictions. Operator shall not commit any waste of
the Shiplift Premises. Operator shall use, operate and maintain the Shiplift Facility in
accordance with all laws and regulations overning such use, operation and mainte-
nance. Operator will not use the Shiplift Pre TI ises in any manner which would constitute
a public nuisance.
Section 2.03 - Environmental Matters. Operator covenants and agrees as follows:
a) Operator will not cause or p rmit the Shiplift Premises to be used to
generate, manufacture, refine, transport, tre t, store, handle, dispose, transfer, produce
or process any Hazardous Substance, xcept in compliance with all applicable
Environmental Laws, nor shall Operator cauO or permit, as a result of any intentional or
unintentional act or omission on the part of th Operator or any other user or occupant of
the Shiplift Premises, the release of an Hazardous Substance onto the Shiplift
ye
Premises.
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b) Operator will at all times in all respects use its best efforts to comply, and
will use its best efforts to cause all other users of the Shiplift Premises to comply, with all
Environmental Laws, including without limitation undertaking the following specific
actions: (i) Operator will, at its own expense, procure, maintain in effect and comply with
all conditions of any and all permits, licenses and other governmental and regulatory
approvals required by all Environmental aws, including without limitation permits
required for discharge of (appropriately treate ) Hazardous Substances into the ambient
air or any sanitary sewers servicing the Ship ift Premises; and (ii) except as discharged
into the ambient air or a sanitary sewer in st ict compliance with all applicable Environ-
mental Laws, any and all Hazardous Substan es to be treated and/or disposed of by the
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Operator will be removed and transported solely by duly licensed transporters to a duly
licensed treatment and/or disposal facility for final treatment and/or disposal (except
when applicable Environmental Laws permit on-site treatment or disposal in a sanitary
landfill).
c) If the presence, release, threat of release, placement on the Ship lift
Premises, or the generation, transportation, storage, treatment or disposal at the Ship lift
Premises of any Hazardous Substance (i) gives rise to liability (including without
limitation a response action, remedial action or removal action) under any Environmental
Law, (ii) causes a significant public health effect, or (iii) pollutes or threatens to pollute
the environment, Operator shall, at its sole expense, promptly take any and all remedial
and removal action necessary to clean-up the Shiplift Premises and mitigate exposure to
liability arising from the Hazardous Substance, whether or not required by law.
d) Operator shall maintain a complete file, which may be inspected at any
reasonable time by City containing copies of all correspondence, permits or other
material between Operator and any federal, state or other governmental authority related
to Hazardous Substances at the Ship lift Premises.
e) Operator shall give City within 24 hours (i) written notice and a copy of any
notice or correspondence it receives from any federal, state or other governmental
authority regarding Hazardous Substances on the Ship lift Premises or which affect or will
affect the Shiplift Premises, or expenses or losses incurred or expected to be incurred by
Operator or any government agency to study, assess, contain or remove any Hazardous
Substances on or near the Ship lift Premises, and (ii) written notice of any knowledge or
information Operator obtains regarding the release or discovery of Hazardous
Substances on the Shiplift Premises.
f) Operator agrees to indemnify, hold harmless and defend City, and the
officers, employees and agents of City, from and against any and all claims, demands,
damages, losses, liens, liabilities, penalties, fines, lawsuits and other proceedings and
costs and expenses (including attorneys' fees), arising directly or indirectly from or out of,
or in any way connected with:
i) The failure of Operator to comply with its covenants and agreements
contained in this section;
ii) Any activities on the Ship lift Premises which directly or indirectly
result in the Ship lift Premises becoming contaminated with Hazardous Substanc-
es;
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Ilkir iii) The discovery of Hazardous Substances on the Shiplift Premises;
and
iv) The clean-up of Hazaitlous Substances from the Ship lift Premises
without regard to (1) the nature of the activities producing the Hazardous Sub-
stances, and (2) the identity of the p rson conducting such activities.
g) The provisions of this sectio , including the obligation to indemnify, shall
survive the termination or expiration of the igreement Term.
h) Nothing in this section shall 1 prejudice or impair the rights or claims of
Operator against any person or entity other than City with respect to the presence of
Hazardous Substances as set forth above.
i) Operator may, at its own expanse, conduct an environmental audit of the
Shiplift Premises, and provide a copy of t e audit report to City, within 60 days of the
date the Agreement Term commences. If the audit report identifies Hazardous
Substances at the Shiplift Premises, eit er (i) within 120 days after the date the
Agreement Term commences the parties hall agree in writing on the extent to which
each party is responsible for such Hazard us Substances, or (ii) this Agreement shall
terminate at the end of such 120-day period.,
Section 2.04 - Protection A 9 ainst L ens. (a) Operator shall not permit to be
t aly enforced against the Shiplift Facility or any •.rt of it any mechanic's or materialman's lien
arising from any work of improvement, how:ver it may arise. However, Operator may in
good faith and at Operator's own expense •ntest the validity of any such asserted lien,
claim or demand, provided Operator has fur ished the bond required in AS 34.35.072 (or
any comparable statute hereafter enacted fo providing a bond freeing the Shiplift Facility
from the effect of such a lien claim). Operator shall defend and indemnify City against all
liability and loss of any type arising out of work performed on the Shiplift Facility by
Operator, together with reasonable attorneyS' fees and all costs and expenses incurred
by City in negotiation, settling, defending, or btherwise protecting against such claims.
b) If Operator does not cause t be recorded the bond described in AS
34.35.072 or otherwise protect the property under any alternative or successor statute,
and a final judgment has been rendered gainst Operator by a court of competent
jurisdiction for the foreclosure of a mech nic's or materialman's lien claim, and if
Operator fails to stay the execution of the judgment by lawful means or to pay the
judgment, City shall have the right, but not tile duty, to pay or otherwise discharge, stay,
or prevent the execution of any such judgme t or lien or both. Operator shall reimburse
City for all sums paid by City under this par graph, together with all City=s reasonable
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attorneys' fees and costs, plus interest on those sums, fees, and costs at the rate of 10.5 Nor,
percent per year from the date of payment until the date of reimbursement.
c) City may give notice of non-responsibility for any work performed by
Operator on the Ship lift Facility.
d) On completion of any substantial work of improvement during the
Agreement Term, Operator shall file or cause to be filed a notice of completion. Ope-
rator hereby appoints City as Operator's attorney-in-fact to file the notice of completion
on Operator's failure to do so after the work of improvement has been substantially
completed.
Section 2.05 - No Preferential Rights to Use Port Facilities,. This Agreement does
not grant any exclusive or preferential right to use any of City's Port Facilities, except that
Operator shall have a preferential right to use the Ship lift Facility. Operator's use of
City's Port Facilities shall be subject to the applicable tariffs, procedures, rules and
regulations of City in effect from time to time.
Section 2.06 - Security for Shiplift Premises. Operator shall limit access to the
Shiplift Premises by constructing and maintaining at Operator's expense a fence in
accordance with the specifications, and at the location designated, in Exhibit C hereto.
Operator shall provide City and its lessees with 24 hour access to the Managed Parcel.
Section 2.07 - Leasing and Use of Managed Parcel.
a) City reserves the right from time to time to lease all or any part of the
Managed Parcel, to use all or any part of the Managed Parcel for any purpose, and to
permit others to use all or any part of the Managed Parcel, provided that:
1) Notwithstanding Section 2.03, Operator shall not be responsible for
any Hazardous Substances on the Managed Parcel resulting from the leasing or use of
the Managed Parcel under this subsection, and any lease of the Managed Parcel by City
shall incorporate obligations of the lessee in the terms of Section 2.03 for the benefit of
City and Operator. Upon the termination of any such lease or use of the Managed
Parcel, City at its own expense, shall conduct an environmental audit of the area subject
to the lease or use, and provide a copy of the audit report to Operator. As between City
and Operator, City shall be responsible for any Hazardous Substance revealed by the
report that was not reported to be present at the commencement of the lease or use.
2) Notwithstanding Article IV, Operator shall not be responsible for
indemnity or insurance with respect to the leasing or use of the Managed Parcel under
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this subsection, and any lease of the Managed Parcel by City shall incorporate
obligations of the lessee in the terms of Article IV for the benefit of City and Operator.
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b) Operator may use all or an ' part of Managed Parcel for the temporary
storage of vessels at the current day la charge stated in City's harbor tariff. This
permission for use by Operator may be r yoked by City at any time. Unless City and
Operator agree otherwise, any other use y Operator of the Managed Parcel shall be
subject to rental charge per square foot equal to double the per square foot rent
represented by the currently effective Rent nder the Lease.
Section 2.08 - Inspection by Citv.
1
City may at any time enter the Shiplift
Premises, for the purpose of inspection t determine Operator's compliance with the
terms of this Agreement. Such inspection may include the taking of samples of soil or
water, and the reviewing and copying of ny records relating to the operation of the
Shiplift Facility.
ARTICLE 3
Operation and Maintenance of Shiplift Facility
j
Section 3.01 - Revenue. Operator shall have the right to collect and retain all
Revenue received from the Shiplift Facility, nd Operator shall account separately for all
Revenue received by Operator.
Section 3.02 - Annual Facility Costs. Operator shall pay the Annual Facility Costs
for each Fiscal Year. Annual Facility Costs(consist of the following, properly incurred or
paid during each Fiscal Year:
a) Maintenance and Operation Costs of the Shiplift Facility; and
b) Amounts which may be required to pay the costs of major renewals
or replacements of the Shiplift Facility, to the extent that such costs are not
covered by insurance.
Section 3.03 - Operation of Shi'lift Fa flit .
a) Operator shall at all times m-intain, preserve and keep, or cause to be
maintained, preserved and kept, the Shiplif Facility and all additions and betterments
thereto and extensions thereof and every pa and parcel thereof in good repair, working
order and condition and will from time to time make or cause to be made all necessary
and proper repairs, renewals and replaceme is thereto and may from time to time make
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or cause to be made extensions and betterments thereto, and Operator will at all times
operate or cause to be operated the Shiplift Facility in a safe and efficient manner in
accordance with the manufacturer's instructions for operation, and at a reasonable cost.
Operator will comply with all terms and conditions of all licenses and permits which are of
material importance to the operation of the Ship lift Facility Operator shall maintain a
Certificate of Class and maintain a fully functioning cathodic protection system.
b) Operator shall perform Maintenance of the Ship lift Facility in accordance
with the maintenance schedule prepared by City and Operator and attached as Exhibit D
hereto. This schedule provides for maintenance in accordance with the
recommendations of Norton Corrosion and Pearlson Ship lift Corporation and their
successors, and shall be kept in conformance with the maintenance recommendations of
Pearlson Shiplift Corporation. This schedule provides for major renewals and
replacements to the Shiplift Facility, which shall be modified from time to time in
accordance with the recommendations of Lloyd's Registry of Shipping.
c) Operator shall permit the Ship lift Facility to be operated only by persons
that Operator determines to be qualified, competent and otherwise fit to perform their
assigned duties in the operation of the Shiplift Facility. Formal training is the
responsibility of Operator and can be obtained from Pearison Ship lift Corporation or
others.
d) Agents of City may enter the Ship lift Facility at all times to inspect the
Shiplift Facility or observe its operation. If City observes the Shiplift Facility being
operated in an unsafe manner or in a manner that does not conform to the
manufacturer's instructions for operation, City may order Operator to cease operating the
Shiplift Facility until the problem has been corrected.
e) Operator shall, at its own expense, schedule annual inspections of the
Ship lift Facility by Norton Corrosion, Pearlson Ship lift Corporation, Lloyd's Register of
Shipping and such specialty consultants as may be required by Pearlson Ship lift
Corporation or Lloyd's Register of Shipping, and promptly provide to City a copy of the
report of each such inspection.
f) Operator shall maintain reasonable hours of Ship lift Facility operation, and
reasonable procedures for Ship lift Facility operation, that accommodate all members of
the public desiring to use the services of the Shiplift Facility. In operating the Ship lift
Facility, Operator shall not discriminate against any member of the public desiring to use
the Ship lift Facility with respect to hours of operation, services offered, scheduling of
operations, or any other aspect to Shiplift Facility operation.
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1 11.Section 3.04 - Maintenance of Accounts andStatements; . Operator shall keepproperbooksofaccountfortheShipliftFacilitywhichshallbekeptinaccordancewith
Generally Accepted Accounting Principles.I Operator shall prepare, and submit to City,
statements showing in reasonable detail in ome and expenses of the Shiplift Facility for
each Fiscal Year, including Revenues, ari, ounts expended for maintenance, renewals
and replacements of and capital additions o the Shiplift Facility. Such statements shall
be filed with City within 120 days of the clos of each Fiscal Year.
Section 3.05 - Operating Plan. P ior to the beginning of each Fiscal Year,
e
Operator shall prepare and file with City a i operating plan for the ensuing Fiscal Year.
The operating plan shall include an estimat of Revenues and Annual Facility Costs and
a schedule for repairs and maintenance to b performed during the Fiscal Year.
Section 3.06 - Inventory. Operator snail maintain on hand the inventory of spare
parts for the operation and maintenance of the Shiplift Facility as shown in Exhibit E, and
Operator shall transfer that inventory to City upon the expiration or earlier termination of
the Agreement Term.
Section 3.07 - Rates and Charges. ith each annual operating plan submitted to
City, Operator shall propose rates and char es for the use of the Shiplift Facility. Such
rates and charges shall not discriminate arpong users of a class of service or among
different classes of service. Rates and ch rges do not discriminate among classes of
service if they are reasonably related to t e cost of providing each class of service,
1.." allocated according to Generally Accepted A counting Principles.
1
ARTICLE 4
1
Indemnity; Insurance
Section 4.01 - O•erator's Dut to In.emnif . In addition to any other duty to
indemnify or defend City, Operator shall clef:.nd, indemnify and hold harmless City from
any and all claims, actions and demands fir death or injury to persons or damage to
property, arising from the use of the Shinlift Facility during the term of the Initial
Agreement and the Agreement Term by Operator, Operator's contractors, agents,
officers, employees and invitees, or the gene al public.
Section 4.02 - Insurance Requirements. During the Agreement Term, Operator
shall procure and maintain at its expense the insurance described in this section subject
to the terms and conditions set forth in this section.
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a) Operator shall procure and maintain the following insurance under this
Agreement:
1) Commercial general liability and automobile insurance, with limits of
liability of $5,000,000 for all injuries, deaths or property damage resulting to any one
person and $5,000,000 limit from any one occurrence. Coverage under such insurance
shall also include explosion, collapse and underground property damage hazards. Such
insurance shall include a blanket contractual liability ondorsement. For non-owned
watercraft of Operator or its customers any "watercraft exclusion" in the commercial
liability insurance policy shall be eliminated. Protection and indemnity insurance shall be
provided with the same limits as the commercial liability insurance for the use of
Operator-owned watercraft.
2) All risk physical damage insurance for any buildings, equipment,
machinery any other property upon the Ship lift Facility at replacement value rather than
original cost.
3) Workers Compensation Insurance and insurance under the Harbor
Workers and Longshoremen's Compensation Act.
4) Coverage for vessels in the care, custody or control of Operator
ship repairer's liability) with limit of liability of $5,000,000.
5) Environmental impairment liability or pollution legal liability insurance 1010
for all bodily injury and property damage to parties other than Operator caused by
pollution emanating from the Premises, with limit of liability of $1,000,000.
6) Marine Liability Insurance and any other insurance required under
any permit or tariff of City.
b) The minimum amounts and types of insurance required under this Section
shall be subject to revision in accordance with standard insurance practices, in order to
provide continuously throughout the Agreement Term a level of protection consonant
with good business practice and accepted standards in the industry. Such factors as
increases in the cost of living shall be utilized in assessing whether the minimum
insurance requirements should be increased. City shall notify Operator of any required
increase in insurance coverage.
c) All insurance policies shall provide for 30 days' notice to City of cancellation
and/or material change in policy terms. All such policies shall be written by insurance
companies legally authorized or licensed to do business in the State of Alaska, and
acceptable to City. Operator shall furnish City, on forms approved by City, certificates
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ilifty evidencing that it has procured the insurance required herein prior to the operation of the
Shiplift Facility by Operator. Operator s all be liable for all deductibles under anyinsurancepolicyobtainedbyOperatorandrthisAgreement. Nothing herein contained
shall prevent Operator or City from placing and maintaining at City's or Operator's own
individual cost and expense, additional or otier insurance as may be desired.
d) On October 1, 2011, and an ually thereafter throughout the Agreement
Term, Operator shall procure and submit to City a written report from a reputable
insurance broker acceptable to City that the broker has reviewed the types and amounts
of coverage of insurance obtained by Opera or and the operations of Operator and in the
opinion of the broker the coverage com lies with Operator's obligations under this
Agreement.
e) All of the insurance policies re uired above as well as any other insurance
carried by Operator or City shall provid that the insurers waive their rights of
subrogation against City and Operator and their respective officers, servants, agents or
employees. Operator further agrees to waiv and agrees to have its insurers waive any
rights of subrogation (whether by loan recei ts, equitable assignment or otherwise), with
respect to deductibles under such policies and with respect to damage to equipment
including the loss of use thereof, whether in ured or not. Operator shall also name City
as an additional insured on the general liabi ity insurance policy maintained by Operator
as required above, excluding coverage for laims resulting from City's sole negligence.
Operator shall promptly and without reques by City supply City copies of all insurance
loal. binders and policies. 1
1
ARTICLE
Assignment
Section 5.01 - Assignment of Agreement. The parties recognize that a material
reason for the finding by the City Council of Seward that it is in the public interest to enter
into this Agreement with Operator is Operator's experience in operating vessel repair
and construction facilities on the Premises. 1 Except as provided in Section 5.02, any
assignment of this Agreement by Operator shall be void, and any attempt by Operator to
assign this Agreement gives City the right immediately to terminate this Agreement.
Section 5.02 - Assignment. Notwiths a nding Section 5.01, Operator may assignt
its entire interest under this Agreement to a person to whom Operator sells its vessel
repair and construction business, provided that the assignee and the terms of the
assignment shall be subject to approval by Ciy.
City of Seward and Seward Ship's Drydock, Inc.
Maintenance and Operating Agreement Page 13
Iser,
i0
1
ftd
ARTICLE 6
Default; Remedies
Section 6.01 - Events of Default. Each of the following shall be an act of default
under this Agreement and the terms "acts of default" and "default" shall mean, whenever
they are used in this Agreement, any ono or more of the following events:
a) Failure by Operator to observe, fulfill or perform any covenants, conditions
or agreements on its part to be observed or performed under this Agreement for a period
of 30 days after written notice specifying such failure, requesting that it be remedied, and
stating that it is a notice of default, has been given to Operator by City; provided,
however, that if said default is such that it cannot be corrected within the applicable
period, it shall not constitute an act of default if corrective action is instituted by Operator
within the applicable period and diligently pursued until the default is corrected.
b) The making by Operator of an assignment for the benefit of creditors, the
filing of a petition in bankruptcy by Operator, the adjudication of Operator as insolvent or
bankrupt, the petition or application by Operator to any tribunal for any receiver or any
trustee for itself or for any substantial part of its property; or the commencement of any
proceeding relating to Operator under any bankruptcy, insolvency, reorganization,
arrangement or readjustment of debt law or statute or similar law or statute of any
jurisdiction, whether now or hereafter in effect which shall remain undismissed for a told
period of six months from the date of commencement thereof.
c) Any event of default under the Lease.
Section 6.02 - Remedies for Default by Operator. Whenever an act of default byOperatorshallhaveoccurred, and any applicable period for giving notice and any
opportunity to cure shall have expired, City shall have the following rights and remedies
all in addition to any rights and remedies that may be given to City by statute, common
law or otherwise:
a) City may terminate this Agreement and re-enter the Shiplift Facility and
take possession thereof.
b) Recover, whether this Agreement be terminated or not, damages incurred
by City by reason of the breach or default by Operator.
City of Seward and Seward Ship's Drydock, Inc.
Maintenance and Operating Agreement Page 14
Nue
104
1
T)
ittir c) No expiration or termination cf this Agreement shall expire or terminate any
liability or obligation to perform of Operator's which arose prior to the termination or
expiration except insofar as otherwise agre d in this Agreement.
I
d) Each right and remedy of city provided for in this Agreement shall be
cumulative and shall be in addition to ev ry other right or remedy provided for in this
Agreement or now or hereafter existing at I w or in equity or by statute or otherwise, and
the exercise or beginning of the exercise
I
y City of any one or more of the rights and
remedies provided for in this Agreement or ow or hereafter existing at law or in equity or
by statute or otherwise shall not preclude the simultaneous or later exercise by City of
any or all other rights or remedies provide for in this Agreement or now or thereafter
existing at law, or in equity or by statute or therwise.c
Section 6.03 - No Waiver of Breach[I. No failure by City to insist upon the strict
performance by Operator of any term, co enant or condition of this Agreement or to
exercise any right or remedy consequent up n a breach thereof, shall constitute a waiver
of any such breach or of such terms, coven nts or conditions. No waiver of any breach
shall affect or alter this Agreement, but eac and every term, covenant and condition of
this Agreement shall continue in full force and effect with respect to any other then
existing or subsequent breach. 1
i
Section 6.04 - Cure by City. City shall have the right, but not the obligation, to
cure any default of Operator under this A0eement if Operator fails to cure the default
likt. within the time allowed under Section 6.01. Any cost incurred by City in effecting such a
cure shall be payable by Operator upon demand, and shall bear interest at a rate of 15%
per annum until paid.
ARTICLE 7
Miscellaneous
Section 7.01 - Time. Time is of the a sence of each provision of this Agreement.
The time in which any act is to be performed under this Agreement shall be computed by
excluding the first day and including the last unless the last day is a Saturday, Sunday
or a holiday, and then it is also excluded.
Section 7.02 - Entire Agreement. Thi Agreement contains the entire agreement
of the parties with respect to the matters overed by this Agreement, and no other
agreement, statement or promise made by any party which is not contained in this
Agreement shall be binding or valid.
1
City of Seward and Seward Ship's Drydock, Inc.
Maintenance and Operating Agreement 1 Page 15
41kr., 1
1
1
Section 7.03 - Relationship of Parties. Nothing in this Agreement, and no
performance of either party hereunder shall cause the relationship of the parties to be
that of principal and agent, partners or joint venturers, or cause the parties to be
associated in any manner other than as owner and independent contractor.
Section 7.04 - Notices. All notices required or authorized to be given by either
party under this Agreement shall be in writing and shall be served personally or sent by
registered mail as follows:
City of Seward
P.O. Box 167
Seward, Alaska 99664
Attention: City Manager
Seward Ship's Drydock, Inc.
P.O. Box 944
Seward, Alaska 99664
Attention: President
Notice by mail shall be deemed to have been given at the time of mailing. Each of
the above addressees may, by written notice to the other, designate any further or
different addresses to which subsequent notices shall be sent. In addition, the parties
hereto may agree to any other means by which subsequent notices may be sent.
Section 7.05 - Binding Effect. This Agreement shall inure to the benefit of and
shall be binding upon City and Operator and their respective successors and assigns.
Section 7.06 - Severability. In the event any provision of this Agreement shall be
held invalid or unenforceable by any court of competent jurisdiction, such holding shall
not invalidate or render unenforceable any other provisions hereof.
Section 7.07 - Amendments. This Agreement may be amended only by a writing
signed by City and Operator.
Section 7.08 - Execution in Counterparts. This Agreement may be simultaneously
executed in several counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.
Section 7.09 - Applicable Law; Jurisdiction. This Agreement shall be governed by
and construed in accordance with the laws of the State of Alaska. Any civil action
brought by any party under this Agreement shall be commenced and maintained in the
Superior Court, Third Judicial District, State of Alaska, at Anchorage.
City of Seward and Seward Ship's Drydock, Inc.
Maintenance and Operating Agreement Page 16
gad
106
Section 7.10 - Ca tions. The captions or headings in this Agreement are forconvenienceonlyandnowaydefine, limit or describe the scope or intent of anyprovisionsorsectionsofthisAgreement.
City of Seward and Seward Ship's Drydock, Inc.Maintenance and Operating Agreement
Page 17
IN WITNESS WHEREOF, the parties have executed this Agreement as of 'Nod
the date first written above.
City:
CITY OF SEWARD
YArOgio.
Jame 'fint r
City D.46ager
ATTEST:
j)( 4a itilmg4A
J hanna Kinney,
CMAICII—
ej
ity Clerk
10,0ftg”Ils4404.4,
e4k. Operator:
SEWARD SHIP'S DRYDOCK, INC.
e SEAL, °
ike. Ja, es T. Pruitt00.,„c oF
onuses President
City of Seward and Seward Ship's Drydock, Inc.
Maintenance and Operating Agreement Page 18
1111110
108
Exhibit A Defrred Maintenance
DEFERRED MAINtENANCE PROGRAM
Backfill transfer pit COMPLETED
Renew oil in winch gear box COMPLETED
Motor reseal 11 COMPLETED
Brake reseal COMPLETED
Batter pile repair COMPLETED
Coat fasteners COMPLETED
Rail alignment COMPLETED
Motor dip/bake 7 ea. COMPLETED
Line amplifiers COMPLETED
Paint gear box COMPLETED
Paint structural steel on platform14, OO COMPLETED
Cleaning and tightening electrical
connections COMPLETED
Repair of wooden decking on platform
Replace sill boards COMPLETED
Cathodic protection system COMPLETED
Coating pipe pile in splash zone
utilizing existing material)
Coating of 33 cofferdam cells COMPLETED
Cables $12,000 x 28 COMPLETED
Motor Cover Repair(replace) COMPLETED
Repair control house doors COMPLETED
Repair air control system COMPLETED
i COMPLETED
Nor
Erosion
Wiring and conduit for
warping capstan COMPLETED
Lower sheave bearings COMPLETED
Winch junction boxes COMPLETED
Repair support pile COMPLETED
Repair winch covers COMPLETED
City of Seward and Seward Ship's Drydock, Inc.
Maintenance and Operating Agreement Page 19
lier
109
Exhibit B-Description of SMIC
Attach Plat Map]
sail/0
City of Seward and Seward Ship's Drydock, Inc.
Maintenance and Operating Agreement Page 20
110
1
tiory Exhibit B Maintenance and Operating Agreement between City of Seward, Alaska
and Seward Ship's Drydock, Inc. dated a of April 1, 2012
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Exhibit C - Fencing Specifications
Attach map showing Fence and Managed Parcel]
City of Seward and Seward Ship's Drydock, Inc.
Maintenance and Operating Agreement Page 21
112
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EnNb O- M n name mha d8o d N
In addition to other obligations in this Agreement, all maintenance of the Shiplift Facility shall
accomplish and conform with the guidelines in the operation and maintenance manuals, S-2787 and S-
2751, as published by NB Syncrolift and current standards set by Peaduon Shiplift Corporation
Maintenance Records P022 — Seward Ships Drydock Company (as included herein in Exhibit 0), Norton
Corrosion, and Lloyds of London.
41.1111110
City of Seward and Seward Ship's Drydock, Inc.
Maintenance and Operating Agreement Page 22
41110
i J
b;-'t ))1^ ,`/
HIP[/FT MAINTENANCE RECORDS
P0%D-8swmno SHIPS DnvoocxCO.
OVERVIEW
I
Periodic in otkm and maintenance isp» ired to assure the safe, reliable operation
your shiplift and transfer system. The following forms, charts and logs will provide a
checklist and comprehensive record of your compliance w/kh recommended
maintenance procedures. A loose leaf notebook should be used to file all completed
check sheets.A more stringent maintenance schedule may be implemented if it/mfbund
to be necessary to accomplish the intent of the maintenance program or to maintain a
specific classification requirement.
The appropriate record sheet(s) for the maintenance activity to be completed should be
copied and used to record all maintenance tasks carried out.
Each sheet must be signed and dated by the person responsible for the maintenance of
the shiplift transfer system upon completion of the tasks on the sheet.
Each week one of the Weekly Maintena ce Record forms must be completed and
placed in the shiplift maintenance log book.
Each third month one Additional Three Monthly Maintenance Record must be
completed and placed In the shiplift maintenance log book, along with the Weekly Form.
Each sixth month one Additional Six ' —^^^^^^x Maintenance Record must be
completed and placed in the shiplift mainten nce log bnmk, along with the Weekly andSawThreeMonthlyForms.
I
Each year Additionalon Additional Annual Maintenance Rm ord muot e completed and
placed in the mhip}Ut maintenance log book, along with the Weekly, Three Monthly and
Six Monthly Forms.
In addition, tasks to be completed less frequently should be entered as comments on
the Additional Annual Maintenance Record. These tasks include:
1. Every two t the hoists
2. Every wo years, repaint cradles.
3. Every five years, change all gearbox oil, Unless testing has shown an earlier change
was necessary.
4. Every eight years, strip and examine One set of upper sheave bearings, The
bearings should be renewed if there is an sign of pitting, If there is a need to renew
the bearings, then all bearings of an equal life must also be stripped and examined.
5. Every eight years or 2,000 operating ho rs, whichever occurs first, all hoist wire
ropes must have been replaced (unless eguiar NDT rope evaluation is combined
with semi-annual visual and annual destru tive testing of one wire rope).
6. Every ten years, strip the motors. Clean nd examine the stator windings for signs
of damaged insulation. Renew the bearin s and reassemble.
puC-p022emR-11011*n0 Page:'~`
Pearlson Shiplift Corporation a 1xnaoow114m Place,Miami,Florida a31m " Email: m@v ft.cwn
Correspondence: Post Office Box xon1o0,Miami,rLooxn*cuoo • Main:(305)720'2536 Fax:(305)505-7161
li
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sad
PEARLSON
T SHIPLIFT MAINTENANCE RECORDS
P022—SEWARD SHIPS DRYDOCK Co.
WEEKLY MAINTENANCE RECORD
Refer to Maintenance Manuel for details of tasks to be performed.
IJ 77-7- 7"7":77-77777117,15::;,7,71iL
Shiplift Platform 11111 Inspect•latform deckinst.0
MIIIIMENLubricates the lower sheave bearints. MEI
Verify the platform has been run at least 8 feet. 111
Visually Inspect the wire rope lubrication andShipliftHoistreplenishasrequired.
Ro•es
lill/MIONNININIMONEMINONINOMONININEMOMOIMIONMI
Shiplift Transfer Lubricate the wheel bearings of all cradles which
System have been submerged.
The above tasks are to be completed each week.
Comments and Observations:
Nor
The above tasks have been completed: YES ONO
Signed: Date:
PSC-P022-SMR-710118-R0 Page:2of9
Pearlson Shiplit1 Corporation 12030 SW 114th Place,Miami,Florida 33176 0 Emalkiafo@shipiift.com
Correspondence: Post Office Box 560100,Miami,FL 33256-0100 Main:(305)720-2536 Fax:(305)595-7161
1 41100
116
411krir PEARLSON
SH111 11FT —4.-- SHIPLIFT MAINTENANCE RECORDS
P022—SEWARD SHIPS DRYDOCK Co.
ADDITIONAL THREE MONTH MAINTENANCE RECORD
Refer to Maintenance Manual f rdetails oftasks to be performed.
Aggille:,3.n—ij, , ., -,,,, ,, ; , 1710, 00),' ,,, , ' ..-,. ,.: ::.:,Ii,2(0i)xiiitt
Shiplift Hoist IIIIRopes Rotate rope reels in storage. 0
1111111111111 Inspect load cell tra sducer pin and anti-rotation
bracket.Check that able connectors are ti•ht. MI I
Shle lift Hoist ME Check the enclosed •ear drive oil level, 0
NOMMINNIMIIII1111111111111111111111111111111111
Shiplift Transfer Visually inspect tree• and inside flanges of cradle 0Systemwheels.
The above tasks are to be completed with the Weekly Maintenance Tasks.
Comments and Observations:
Slim,
f
I
1--
f-
1
I
The above tasks have been completed: 0 YES ONO
Signed: I Date:
PSC-P022-SMR-1-10118-R0 Page:3 of9
Pearlson Shiplift Corporation • 12030 SW 114th Place, Iamt,Florida 33176 • Email:lnfo@shipllft.com
Correspondence: Post Office Box560100,Miami,FL.33256-010 0 Main:(305)720-2536 Fax:(305)595-7161p
i4klirl
117
1
I
kfiL ; J)
PEARLSON SHIPLIFT MAINTENANCE RECORDS
P022—SEWARD SHIPS DRY0oCK co.
ADDITIONAL SIX MONTH MAINTENANCE RECORD
Refer to Maintenance Manual for details of tasks to be performed.
Rope Inspection and Test Results to be recorded on Rope Inspection Log/Chart.)
Brake Inspection to be recorded on Brake Inspection Log.)
cy,x9-411;q11,r13,4,1,%-,fiziR.1•319-,4-„, •
Clean limit switch actuator plate and paint as
Shiplift Platform required.Check actuator plate fasteners for
tightness.
Shiplift Hoist 2 Visually Inspect the wire ropes for broken wires and
Ropes wear. Enter results on Wire Rope Inspection Charts.
Hoists 3Shipllft Lubricate upper sheave bearings, pawl pivot,hoist
frame bearings.
Lubricate limit switch actuator mechanisms in the4. 0hoistlimitswitchbox.
Strip brake, Inspect,clean out dust and check brake5. 0torqueandsolenoidair_gap.
Check Hoist Junction and Limit Switch enclosures
5 are clean and watertight. Check all glands&cables 0
and tighten all electrical connections.
Shiplift Transfer 111097VisuallyInspectrailsandfasteners. 0System
8. Visually Inspect transfer cradle paint 0
Check cradle and SIC wheel U-bolts for torque.9 Note any signs of movement and misalignment.
The above tasks must be completed in addition to the Weekly and Three Monthly tasks.
Comments and Observations:
The above task has been completed: 0 YES ONO
Signed: Date:
PSCP0224MR-110118-R0 Page:4 419
Pearlson Shiplift Corporation • 12030 SW 114th Place,Miami,Florida 33176 * Email:info@shiplift,com
Correspondence: Post OfficeBox 560100,Miami,F1,33256-0100 • Main:(305)720-2536 Fax:(305)595-7161
118
44‘10,
PEARLSON
littrPtimasJ*T at. SHIPLIFT MAINTENANCE RECORDS
P022-SEWARD SHIPS DRYDOCK CO.
ADDITIONAL ANNUAL MAINTENANCE RECORD
Refer to Maintenance Manual •r details oftasks to be performed.
Lower Sheave Inspection to bere 'tried on Lower Sheave Inspection Log.)
F —777-47-1-.7qtakilo0p-J1 I,' Mjf,' la.:LL -P,L(A.,-trld;1 1"0o`
111111ShipliftPlatform Check steel structu e(corrosion,welds and
rotective coatin• 0
IIIMIIIIIIIIIIIIMIEMMEaat least two lower sheaves. 111111111111111111111111111111111111111111111.1111111111111111111111111111.111111.0=111111111111111111111111111111111111111111111111111111111111111111111111
Shiplift Wire Ell Complete a Visual it NOT examination of selected
Roses ro.es.Record findi Is on Rose ins section Record. 0
IIIIIIIIIIIIIIMIIIIIIIII 4. R -.7' 0 2 roam d test to destruction. 111111111111111
imummommommilimmommimimrammormoimm
Ship lift Hoists IllgillneathijAd'ust as re.uired.1111111041111111
1111111111111100. 6. Itil.:,s MUilini1EM11.11111111111111111110111.
eCnoomopsi ea
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irssua e
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es aamsampleinatlo on
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of 1
f oil from0
of h
mf
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earbox and re.lace if test indicates it is necessa .
IIIIIIIIIIIIIIIIIN 8. Me••er test all hoist otors. IIIIIIIIIWIIIIII IIIIIII
Shiplift Load Verify Calibration oft e Load Monitoring System.
Monitoring 9. Install the temporary-upport beams and 0
S stem ad ust/re.air where r a uired.
MININIMI11111111111111111111111111111111111111111111111111111111
14111411, Shiplift Transfer 10. Check 25%of wheel: for wear and disassemble and 0Systemins•ect 10%..
Check that rail levels:nd rail joints are within 0EMItolerances.
1111111111111 Check the condition of the Side Transfer Carriage 0
steel and deckin..
MNNININMNINIIIININ/IMMMMINIIIIIIIIIIIIIIINI
Check all electrical co nections in the ControlShipliftControlConsoleandMotorControlCenter. Functional check 0SystemtheentireControlsyst:m in all modes of operation.
The above tasks are to be completed with t e Weekly, Three Monthly and Six monthly
tasks
Comments and Observations:
The above tasks have been completed: 0 YES ONO
Signed: 1
I Date:
PSC-P022-SMR-110118-RO Page:Sag
Pearlson ShipliftCorporation * 12030 SW 114th Place,Miami,Florida 33176 • Email:info@shIpliftcom
Correspondence: Post Office Box 560100,Miami,FL 33256-0100 • Main:(305)720-2536 Fax:(305)595-7161
1
41111111W
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11
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PEARLSON
12 RFT --- SHIPUFT MAINTENANCE RECORDS
P022—SEWARD SHIPS DRYDOCK Co.
LOWER SHEAVE INSPECTION LOG
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PSCP022-SMR-110118-Ro Page:8 019
Pearlson Shiplift Corporation 4 12030SW 114th Place,Miami,Florida 33176 * Email:info@shiplift.com
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PSC-P022-SAIR-110118-R0 Page:7 of9
FortsonShipliftCorporation * 12030 SW 114th Place,Miami,Florida 33176 o Email:info@shiplift,coin
Correspondence: Post Office Box 560100,Miami,FL 33256-0100 a Main:(305)720-2536 Fax:(305)595-7161
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PSC-P022-SMR-110118-RO Page:8019
Pearison Shiplift Corporation 12030 SW 114th Place,Miami,Florida 33176 0 Small:info@shiplift.com
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Corporation •PearlsonShiplift 12030 SW 114th Place,Miami,Florida 33176 • Entail:info@shipliftcom
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VigorIndustrial,LLC
Phase I Environmental Site
Assessment
N.r1 ProjectSolstice
Seward ShipsDrydock
7-MileNashRoad
Seward,Alaska
ti April 2014
Project Number 0230020
i'iiN,i
7
N Erik Ipsen,PE
Partner-in-Charge
Phase SewaBob
Geologist
Assessment tee..lit---Prolect Solstice
SewardShips Drydock
7 Mile Nash Road Lisa Nicholson
Seward,Alaska ProjectManager
Prepared tor.ERNI-West,Inc.VigorIndustrial,LlC April 2014
1001 SW 5th Avenue,Suite 1010
Portland,Oregon 97204
www.erm.cem T:(503)488-5282
F:(503)488-5142
The wohd`sleading sustainability consultancy ER d
7
TABLE OF CONTENTS 4.0 ASSESSMENT OFPAST LAND USE AND OPERATIONS 12
LISTOF FIGURES III 41 GENERAL INFORMATION 12
EXECUTIVE SUMMARY 1 4.2 HISTORICAL ENVIRONMENTAL REPORTS 12
4.3 EVALUATION OFHISTORICAL INFORMATIONSOURCES 151.0 INTRODUCTIONAND BACKGROUND 1 43.1 Subject Property 16
L1 PURPOSE AND AUDITORS 1 4.3.2 Adjacent Properties and Surrounding Area 16
1.2 SCOPE OF WORK 1 5.0 DATABASEAND GOVERNMENTRECORDSREVIEW 18
1.3 LIMITING AND SPECIAL CONDITIONS 2 5.1 GOVERNMENT RECORDS REVIEW/INTERVIEWS 18
2.3.2 Limiting Conditions during theSite Visit 2 5.2 ENVIRONMENTAL DATABASE SEARCH 181.3.2 Significant.Assumptions 2 5.2.1 Subject Property 19
2.0 SITE SETTING 3 5.2.2 Surrounding Properties 19
2.1 LOCATION 3 6.0 DATA GAPS 21
2.2 NEIGHBORINGPROPERTIES 3 7.0 USER AND OWNER PROVIDED INFORMATION 22
2.3 TOPOGRAPHYAND HYDROLOGY 4 71 USER AND OWNER/OPERATOR QUESTIONNAIRES 22
2.4 GEOLOGYAND HXDROGEOLOGY 4 7.2 TITLE RECORDS 22
3.0 SITE AND OPERATIONS INFORMATION 6 7.3 ENVIRONMENTAL LIENS OR ACTIVITYAND USELIMITATIONS 22
3.1 GENERAL SITE DESCRIPTION 6 7.4 SPECIALIZEDKNOWLEDGE 23
31 UTILITIES 6 7.5 COMMONLY KNOWNORREASONABLYASCERTAINABLE
3.3 PROCESSES AND MATERIAL USE 7 INFORMATION 23
3.3.1 Current Operations 7 7.6 VALUATION REDUCTIONFOR ENVIRONMENTAL ISSUES 23
3.3.2 Discontinued Operations 7 7.7 OWNER,PROPERTY MANAGER,AND OCCUPANTINFORMATION23
3.4 CHEMICAL USEAND STORAGE 7
3.4.1 Underground Storage Tanks(U5Ts) 7 7.8 REASONFOR PERFORMING PHASE I 23
3.4.2 AbovegroundTonics(ASTs) 7 7.9 NON-REGULATORYINTERVIEWS 24
3.5 HAZARDOUS AND NON-HAZARDOUS WASTE MANAGEMENT 8 8.0 CONCLUSIONS/RECOMMENDATIONS 25
3.5.1 Hazardous Waste 8 9.0 QUALIFICATIONS OFENVIRONMENTAL PROFESSIONALS CONDUCTING3.5.2 Non-Hazardous Waste 8 THISASSESSMENT 27
3.6 WATER,WASTEWATER,AND STORMWATER 8 10.0 LIMITATIONS3.6.1 Water 8 28
3.6.2 Wastewater 9 APPENDIXA-SITEPHOTOGRAPHS3.6.3 Storm Water 20 APPENDIX B-AERIAL PHOTOGRAPHS,TOPOGRAPHIC MAPS,CITY
Via.. 3.7 AIR EMISSIONS 10 DIRECTORIES SEARCH RESULTS,AND SANBORN FIREfir•' INSURANCEMAPS3.8 POLYCHLORINATED BIPHENYLS(PCBs) 10 APPENDIX C-SITE-AND USER-PROVIDED INFORMATION
3.9 VISUAL INDICATIONS OF ON-SITE IMPACTS 11 APPENDIX D-USER AND OWNER QUESTIONNAIRES
3.10 ASBESTOS-CONTAINING MATERIALS(ACMS)11 APPENDIX E-EDR DATABASE SEARCHRESULTS
APPENDIX F-PROFESSIONAL PROFILE
i ii12i.
LO INTRODUCTIONAND BACKGROUND ERM's Phase I ESA included:
An on-site inspection ofthe subjectproperty toevaluate current
conditions and identify areasof potential concern;
1.1 PURPOSE ANDAUDITORS A review ofproperty history through interviewsand aerial
ERM-West,Inc.(ERM)performed a Phase I EnvironmentalSite photographs,city directories,ownership records,and historical
Assessment(ESA)ofthe of theSeward Ships Drydock(551D)operations mapping;
locatedat 7-Mile Nash Road,SewardMarine Industrial Complex Seward, Observation of adjacent properties and the local area to evaluate the
Alaska(the"subject property"or"site").ERM performed the ESA at the potential for adverse environmental impact to thesubject property;
requestofVigor Industrial LLC(the"User")using a materiality threshold
of$250,000 perenvironmental issueidentified.Noteworthy issues of Interviews/research of local city/county,tribal,state,and federal
250,000will alsobe identified.records,includingcontracting of Environmental Data Resources,Inc.
EDR)to identify sites ofconcern as required in theregulatory records
The sitevisit wasperformedon 19 December2013byERM assessors Ms. reviewsection of the ASTM standards for a Phase I ESA,where
Lisa Nicholson,C.P.G and Ms.KelseyCoolidge.ERM wasaccompanied available;and
on the site visitbyMr.Jim Pruitt,the owner ofSSD,and the operator of Interviewswith theprospective purchaser.
thesubject property.
Photographsof the sitewere taken to document currentconditionsand
are included in Appendix A.Copies of aerial photographs,topographic
1.2 SCOPE OF WORK maps,City Directory Search results,and Sanborn Fire Insurance Maps are
environmental assessment was conducted in conformance with
presented in Appendix B.Property environmentalrecords or permits,
ThisThisenvironmental
proposal dated
assessment
December 2013 and with therequirements of reasonably obtainableatthe time of thesitevisit,werereviewedand are
American Society for Testing and Materials(ASTM)Standard E1527-05.
included
ubmi(submitted
in Appendix
and
appropriate.
tor)ac presented
questionnaires
t i Appendix
Standard Practicefor Environmental SiteAssessments:Phase!Environmental D.The EDR
to theUser and Owesultswere
Owner/Operator)are
d and are ppresentedfoD.The EDR Database Searchresultswere obtained and are gresented in
Site Assessment Process and the standards forconductingall appropriate Appendix E.
inquiries(AAI)set forth by theUnited States Environmental Protection
Agency(USEPA)at Title 40 of the Codeof Federal Regulations(CFR)Part
312.1.3 LIMITINGANDSPECIAL CONDITIONS
The assessment was conducted to evaluate and identify conditions 1.3.1 Limiting Conditions during theSite Visitindicativeofreleasesandthreatenedreleasesofhazardoussubstancesand
petroleum products on,at,in,or tothe subjectproperty.ERM's Phase I Duringthe site visit the ground was covered by approximately a foot ofESAsoughttogatherinformationregarding:(1)currentand pastproperty snow. As a result,ERM was unable toinspect the ground conditions(e.g.,
users and occupancies;(2)current and past users ofhazardous substances staining)due to thesnow coverage. Inaddition,it was not possible toandpetroleumproducts;(3)waste management and disposal activities determine surface completions(i.e.,pervious orimpervious)at all
thatcould havecaused a releaseorthreatened release ofhazardous locations.
substances;(4)current and past corrective actions and response activities
to addresspast and ongoing releasesof hazardous substances at the 1.3.2 SignificantAssumptions
subjectproperty;(5)engineering controls atthe subject property;(6)
institutional controlsatthe subjectproperty;and(7)propertiesadjoining No significant assumptions havebeen made.
orlocated near the subject property that have environmental conditions
thatcould have resulted in conditions indicativeof releases or threatened
releases of hazardous substances to thesubject property.
ERM 1 SOuTICE/si MAmILss1. NM 2 501.5TILIMONOW.1114M.
2.0 SITE SETTING 2.3 TOPOGRAPHY AND HYDROLOGY
The subject property is located inSeward Alaska,which ties in the south-
2.I LOCATION centralportionof Alaska on the Kenai Peninsula region.Seward is
located at the north end of Resurrection Bay.The subjectproperty ispart
TheSSDoperations are conductedon Block 7 ofthe Seward Marine ofthe SMIC,which wasconstructed onthe northern portion of the Fourth
Industrial Center(SMIC)located at Mile 7Nash Road,Seward,Alaska.ofJuly Creek alluvial fan withquarried and/or dredged material from
The total operationsarea includesan approximately11-acre parcel on the Resurrection Bay.The SMIC is located at themouthofFourth of Julycreek
SMIC uplands.SSD leases lots lA and3 of Block7.SSD has operations across Resurrection Bay from the main Seward townsite.
outside theselease areas,including the transfer The property is located atan elevation of approximately 15 feet above
The general location ofthe property and the physiographic features of the mean sealevel,and isgenerally flat around thebuildings and parking
surrounding area are shown onFigure1,developed from the United areas.The overall topographic trend ofthe surrounding area isto the
States Geological Survey75-minute quadrangle for Seward,Alaska,dated southwest towards Resurrection Bay.Mountains surrounding thesite
1995.Figure 2 provides a sitelayout,including leasehold boundaries. reach elevations of 2,000 feetwithinonemileof the coast.Theclosest
surfacewater features to the subject property areCarlanna Creek,
immediately northwest of the subjectproperty,and FourthofJulyCreek
2.2 NEIGHBORINGPROPERTIES locatedsouth ofthe subject property.The region isa temperaterainforest
with approximately 68 inchesof precipitation peryear.
Thesubject property leasehold is locatedin amarine industrial area across
Resurrection Bay from theSeward,Alaska townsite.The abutting According to theEDR report(Appendix E),thesubjectproperty is not
properties and nearby land use includes: identified withinthe100 or500-year floodplains.The EDRreport does
North:City of Seward Washdown Pad(Block 7,Lot4); show the subject property is identified onthe national wetlandsinventory
map as containingpotential wetland areas.
East:Theeastern portion of Block 7,Lot4 isusedforstoring derelict
boats.The city moves the boats to this locationwhenthey have been
abandoned in the boatstorage area.Block6 isimmediately east of 2.4 GEOLOGYAND HYDROGEOLOGY
Block 7 and only Lot 1 is currently leased by Global Towers for
placement ofa cell tower; The area surrounding Resurrection Baywas covered byglaciers during
the Pleistocene Epoch.Numerous glaciersarestill present eastof
South:The southern portion of Block 7,Lot4is part of theactive
boatyard andtwo boats were parked there at the time of the site visit. Resurrection Bay and the HardingIcefield lies afew miles west of the
Block 8,south of Block 7 isun-leased,undeveloped land in the main Seward townsite.
alluvial fanof Fourth ofJuly Creek;and Exposedbedrock iscomprised of alternating units of greywacke and
West:A boatbasin and dock with a 250-ton MarineSynchroLift for phyllite which have experienced low-grade metamorphism.Local
pullingvessels out of the water. surficial deposits arecomprised ofalluvial-fan and fan-delta deposits and
includedrift,mudflows,and landslidedeposits nearthemouths of
Based on ERM's observations,the closestresidencesare located smaller tributariesincluding Fourth ofJuly Creek.
approximatelyone mile north of the subject property on Nash Road. No
visual evidenceof environmental concernswas observed on immediately Geologic maps and sitedata indicatethe subject property isunderlain by
surrounding properties.However,as noted above,the groundsurfacewas fill,fan-deltadeposits,and slightly metamorphosed sedimentarybedrock.
covered withsnow during the visitand couldnotbe inspected. The steep underwater face ofthe alluvial fan at Fourth of July Creek
reportedly suffered submarine landslidesduring the 1964earthquake.
ow 3 souncEnaee,,,ecel. 128 en, 4 wLance/naaa/ ns e4
Spring Creek Correctional Center(northeastof the SMIC).Thewellis up- 3.6.3 Storm Water
gradient ofthe subject property.
Stormwaterfrom SSD is currentlypermitted under theUSEPA-issued
3.6.2 Wastewater National Pollutant DischargeElimination System(NPDES)permit number
AKRO5CB23,issued April 21,2009.The ADEChas primacy over the
Sanitary wastewater is discharged to the City of Seward municipal issuance ofNPDES permits(now called Alaska Pollutant Discharge
wastewater treatmentsystem. Elimination System[APDES]permits)in Alaska.
Mixed wastewater(from vessel washing)and stormwater from SSD is The average annual precipitation in Seward isapproximately 68 inches.
currently discharged to the Transfer Pit and an associated French drain.Precipitation that falls on the upland subject property iscaptured by the
Regulators,including theUSEPA,have identified the Frenchdrain as a Transfer Pit,runs off-site by sheet flow,orinfiltrates into theground
potential Class5 Underground Injection Control(UIC)system.However, surface.The Transfer Pithas four sediment trapsthatcollect the water.
thefacility hasnot yet registered the drainasaUICdevice. Stormwateris The outletsof the sediment trapslead to a Frenchdrain system.There are
discussed belowin Section 3.6.3. nostorm wateroutfalls from theSSDlease area to ResurrectionBay.
The management of otherwastewaterstreams from SSD,under both Water flowing over thework bays isnot treated.
historical and current operating conditions,is discussed below.
SSDreceived a notice of violation(NOV)regarding theirNPDES permit3.6.2.1 Washdown Waferfrom Work Bays onJune 28,2013 based onan April 10,2013 inspection.ERM does not have
a copyof the inspectionreport or theNOV,but it reportedly requires SSD
The currentUSEPA-issued NPDES permitauthorizes the discharge of to filemonitoring reports on a timely basis and use best management
washdown water withouttreatment,butrequiresquarterly monitoring for practices.Until the issues in theNOVare resolved,SSD isin technical
sheen in water from four sediment traps located in the Transfer pit. violation of its lease agreement with the City of Seward.
3.6.2.2 Ballast Water
3.7 AIR EMISSIONS
The NPDESpermitdoes not authorize the discharge of ballast water.SSD
contractsEmerald Alaska,Inc.tomanage the ballastwater fromclient ERM did not observe reportableairemission sources on the subject
vessels. property.However,between December 2004andFebruary2007the ADEC
received more than 20 complaints regardingfugitive dust.The ADEC file
3.6.2.3 Floodwater for thesite indicatesthat two Air Quality violations have been issued to
SSD;oneon May 13,2005 and one on February 23,2007.ADECrequiredNofloodwatercomesintocontactwiththeSSD's working surfaces.Work SSD todevelop and implement BMPs for fugitiveemissions.SSD
is only performed in the three workbayslocated inland from the subsequently developed aplan to control fugitive emissions;however,the
SynchroLift dock. plan may be inadequate as fugitiveemissionshavecontinued tobe the
subject of citizen complaints.
3.6.2.4 Bilge Water
The NPDES permitdoesnotauthorizethe dischargeof ballast water,The 3.8 POLYCHLORINATED BIPHENYLS(PCBS)
client contracts Emerald Alaska,Inc.to manage bilge water from client
vessels. PCBresults from the2007 USEPA Site Inspection indicated thatAroclor-
1254 waspresent above background levels in thecovered bay and in the
southern uncovered bay.One sample collected from thestockpile
eau 9 scarce/ncaa,ArecLau e M 10 Kxsr.MnvalArxrtau
exceeded ADEC cleanup level for PCBs of 1 milligram perkilogram 4.0 ASSESSMENT OFPAST LAND USE AND OPERATIONS
mg/kg).
4.1 GENERAL INFORMATION
3.9 VISUAL INDICATIONS OF ON-SITEIMPACTS
Based oninterviews with site personnel and a review of historical
ERMdid notobserve indicationsofon-sitedumping,land disposal,or photographs and records,the subject property is operated by SSD under
contamination duringthe siteinspection. Other than issues with spent anagreement with the owner,the City of Seward.Initial development
sandblast grit describedpreviously,areview ofavailable records did not activities included dredging and filling to raise the site to thecurrent
identify historical waste disposal on site. elevation.SSD moved to thefacility in 1988.The SSD facilityhas
undergone several improvements since initial construction,
Due to snow and ice cover,there were no observations regarding the
absence or presence of soil staining.No oilstains were observed on the
snow. 4.2 HISTORICALENVIRONMENTALREPORTS
ERM wasprovidedwith several historical reports forthesubject property.3.10 ASBESTOS-CONTAINING MATERIALS(ALMS) A summaryof the reportsis presented below.
Asbestos was banned in most friable buildingmaterials(spray-applied 7)SewardShip's DrydockSiteInspection,Seward,Alaska.Prepared by:
surfacing materials and thermal system insulation)in 1978,butthe Ecology and Environment,Inc.(E&E)2007.Prepared for:theUSEPA.
Occupational Safetyand Health Administration deemsspray-applied
surfacing materials,thermal system insulation materials,and vinyl E&E performed a siteinspectionfor the USEPAin 2007. E&E collected
flooringmaterialsas"presumed asbestos-containingmaterials(PACMs)"nineteen surface soil samples from suspected sourcesacross the subject
if they arepresent in pre-1981 buildings(29CFR Parts 1910.1001 and property.Theresults indicatedthat:
1926.1101).
Benzo(a)pyrene andDRO exceeded ADEC soil cleanup levels in the
Historical recordsindicate that the buildings were constructed on orafter Transfer Pit and the Covered Bay;
1988.Asa result,PACMs arenotlikely to have beenused in building Only DROexceeded soilcleanup levels attheSolventStorage Area
construction. and Maintenance Building;and
According to Mr.Pruitt,small amounts of asbestos waste are generated Benzo(a)pyrene,Aroclor-1254,and DROexceeded cleanup levels in
fromrepairsperformed onoldervessels.SSD contracts anenvironmental thespent sandblast gritstockpile.
consultingfirm to abate,remove,and/or dispose of the asbestos material.The reportcompared the sample resultsto abackground soil sample
collected approximately upgradient of the subject property,along
FourthofJuly Creek.
E&E also collected three sediment samples:two from the banksof
Resurrection Bay and one from a north-south oriented ditch thatrunsmar' overland east ofthe site.The results for the ditch sample indicated that
arsenic,chromium,and DRO were elevatedwith respect to a
background sediment samplecollected approximately three miles
away.The results from the two Resurrection Bay samples were
comparable withrespect to the background sample.
BOA 11 SOLVICe/mamn/ i29 exu 12 wLaxerwaxar.r•aas.
Date Dascrfptlon 5.0 DATABASE AND GOVERNMENTRECORDS REVIEW
1950 Thearea around Fourth of July Creek is undeveloped.
1979 Thearea appears to stillbe undeveloped. 5.1 GOVERNMENTRECORDS REVIEW/INTERVIEWS
1985 Nosh Road has beenadded.TheSMIC has been filled inandthe ERMreviewed available information from the USEPA Envirofacts andSynchroLiftdockIsinplace.Theparcels donotappear to havebeen ECHO internet databases,the City ofSeward website,the ADEC website,°lanai yet.
the Borough Assessor,and the Alaska Geographic Information System
Internet sites. Information obtained fromthese sources is summarized in
the appropriate sectionsof this report.
5.2 ENVIRONMENTAL DATABASE SEARCH
ERM contracted EDR to conduct a database search for agency records.
The EDR Database Search results,presentedin Appendix E,define and
summarize the ASTM databases reviewed in theEDRreport and note if
any sites(including the subject property)were identified in the specified
radius.The locations of the sitesidentified in the EDR reportwere
evaluated to determine which siteswere within the ASTM-specified
search distance from the subject property boundary.Only those sites
within the ASTM-specified distances are discussed below,
It should be noted that thecomputerized geocoding technologyused in
thedatabase search is based on available census data and is only accurate
to 33•0 feet.The EDR report provides a list of unmapped sites for which
inadequate location information was provided. ERM has reviewed the list
of"unmapped"sites todetermine if these sites are within thestudy
radius.If the"unmapped"sitesappeared likely to be within the search
radius fora specific database,they are discussed in the sections that
follow.
Sites identified within the study radii were evaluated to determine if they
are likely to have adversely impacted the subject property.The criteria
used to evaluate the potential foradverse impact tothe subject property
include:
Distance from the subject property;
Expected depth and direction of groundwater and surface water flow;
Expected storm water flow direction;and
The presence/absence of documented contaminant releases at the
identified sites that havenotbeen remedied to the satisfaction of
regulators.
ew 17 ouncvanno,nirall rm 18 aarevme,noe+nau
The identification ofa site as potentially upgradient or downgradient is Table 4 Suntntany ofFindingsfrom EDR Report
based on the expected direction of groundwater flow to the west-
southwest(towards Resurrection Bay).However,given the relatively flat Radius
topological conditionsat the site and tidal fluctuations,groundwater flow Database Searched Sites
directioncould be variable. miles) Found
ERNS 0.25
The EDR search identified the following properties in the EDR Database Ahydraulic lireburst an a crane operated by PolarSeafood
Search.The subject property and properties with the potential to SMIIC Lots 2and 2A,Black 9)releasing hydraulic oil tothedock
adversely impact the subject property are discussed below. and Resurrection Bay
5.2.1 Subject Property The numberand typeof sites identified in Table 5 are consistent with the
history and nature ofthe surrounding area.When evaluating the
The subjectproperty address,Mile 7Nash Road,was listed in the CERC- potential adverse impacts of off-site properties,ERM considered their
NFRAP and ERNS databases searched by EDR. position relative to the reported groundwater flow direction.The Polar
Seafood site is cross-gradient of the subject property with respect to
The CERC-NFRAP listing is for hazardouswaste sites that have been groundwater flow direction and assumed to not have a potential adverse
removed from the inventory of CERCLIS(Comprehensive Environmental impact on the subjectproperty.
Response,Compensation,and Liability Information System)and have
been designated"No Further Remedial Action Planned."The USEPA has
determined that the subject propertydoes notqualify for the National
Priorities List based on existing information as of November 2007.
The subject property is listed twice the EDR report in the Emergency
Response NotificationSystem(ERNS)as discussed below:
On August 19,2005 during the hauling of the 117-foot"Western
Mariner"fishing vessel,2quartsof used oil was discharged into
Resurrection Bay.Absorbentboom wasapplied to clean up the spill.
The responsible company waslisted as Western Mariner LLC.
On August 8,2005 an employee ofSSD spilled paint into Resurrection
Bay.The volume of thespill was not reported and no cleanup was
reported.Mr.Pruitt hasstated that work is only performed in the
upland work bays. Mr.Pruitt has not yet responded to questions
regarding thespill.
Note that both spills occurred on the dock,which is not on the subject
property lease.
5.2,2 Surrounding Properties
Surrounding sites identified inEDR's review ofavailable databases are
summarized inTable 4.
ew 19 rwna,auauvaru mu 130 us 20 rama,aaam,.naVIA
8.0 CONCLUSIONS/RECOMMENDATIONS sheet,the facility was issued a Notice of Violation to SSD in February2007forfailingtofollowthedustcontrolplantheycommittedtoinspring2006.City ofSeward records indicate the facilitycontinued toEMconductedaPhaseIESAofthesubjectproperty. ERM's conclusions receive complaints aboutdustcontrol issue and received anotherandopinionsarebasedonascopeofworkthatfollowedtherequirementsNOVinApril2013. No information regarding the specific NOVsetforthinASTMStandardE1527-05 and 40 CFR312. A summary of issues or resolution was provided by ADEC orSSD.SSD has also notijERM's conclusions and opinions ispresented below.Based on the data prepared BMPs for wastewater discharges,stormwater discharges,obtained during the site visit,the environmental database review,and registered the French drain as a UIC device,or prepared a siteinterviewswithpersonsfamiliarwiththesiteanditshistory,the specific Spill Prevention Control and Countermeasure(SPCC)Plan,followingRECs were identified at the site:
Vessel washwaterand site storm water are discharged to the Transfer DeMirrinris or Other Potential Issues
Pit and French drain.The quality of discharges is evaluated visuallyaspartoftherequirementsofthefacilitystormwaterpermit.The While notRECs,ERM identified concerns that are summarized below and
permit only requiresSSD to visually inspect the water in the Transfer are discussed in greater detail in the body of the report:Pit for evidence of an oily sheen.Washwater and storm watercomes The quality of the sediment in the boat basin has notbeen evaluated.into contact with areas ofmetals and chemical use and storage A recent$10million grantto the City ofSeward,for in-water andthroughoutthesite,includingfabrication,raw material storage, upland improvements to SMIC,includes funds for the dredging of5paintingactivities,non-hazardous waste storage,and used grit to 10 feet of material from the boat basin. SSD indicated it has notstorageareas.Therefore,it ispossible that organics and metals conducted any repair activities on or over water.including copper,zinc,lead,and chromium)and possibly tributyltin,
from current or former SSD operations,may become entrained in SSD reportedlydisposed of approximately 189 cubic yards of spent
storm water and be discharged to the subsurface.Organics and metals sandblast grit on a private off-site property in 2004. As the result ofinsurfacewaterand/or sediment could pose a risk to ecological public complaints,ADEC investigated the disposal activities and
marine receptors, required SSD to excavate thematerial for disposal ina licensed
landfill by 2005.Although wastewater is discharged to the unpaved ground surface
and to a Frenchdrain,groundwater conditions were not evaluated bytheUSEPA,SSD,or Alaska Department of Environmental
Conservation(ADEC)as part ofsite investigations conducted
between 2007 and 2010.The investigations only addressed the
conditionof shallow soil and/or intertidal sediment. In 2013,ADEC
issueda"No Further Action"letter for conditions associated with
shallow soil and sediment contamination identified at the site.
Material Compliance issues
ADECand the City ofSeward requireSSD to comply with BestManagementPracticesfortheirsiteactivities.In 2012,the CityindicatedthatSSDistechnicallyindefaultoftheLeaseasaresult of
four unresolved Notices ofDefault issued by ADEC.The City
administration recommended allowing the Lease to continue,
withoutwaiving any rights of the City,with theunderstanding and
expectation thatenvironmental compliance matters will be dealtwith
and resolved between SSD and DEC. Based on a 2008 ADEC fact
25 SOLSTIC4/09001P/A1111.E. six 26 srKrimwrarAni Ix,
9,0 QUALIFICATIONS OFENVIRONMENTAL PROFESSIONALS 10.0 LIMITATIONS
CONDUCTING THISASSESSMENT
Theinnocent landowner,contiguous owner,and prospective purchaserMs.Lisa Nicholson of ERM's Anchorage,Alaska,office and Mr.Bob defenses to liability under the Comprehensive EnvironmentalCarsonofERM's Portland,Oregon,office conducted this assessment. Mr. Response,Compensation and Liability Act(CERCLA)requires that aErikIpsen,ofERM's Portland,Oregon,office,reviewed the contentsof person acquiring a property conductan AAI with respect to the subjectthisreport.The professional qualifications for Ms.Nicholson,Mr.Carson, property.ERM has conducted this ESA in accordance with the
and Mr.Ipsen are included in Appendix F. standards forconducting an AAI set forth at 40 CFR 312.Those
standards require the application ofscientific principles and
The signaturesfor Ms.Nicholson,Mr.Carson,and Mr.Ipsen are affixed professional judgment to certain facts with resultant subjective
on thecoverof thisreport. interpretations and exercise of discretion. Professional judgments
expressed herein are based on the facts currently available within the
We declarethat,to thebest of our professional knowledgeand belief,we limits of the existing data,and data gaps identifiedherein,scope of
meetthe definition of Environmental Professional as defined in 40 CFR work,budget,and schedule.Those standards also require that the
312.10. client undertake certain additional inquiries.
We have the specific qualifications based on education,training,and In addition,the liability defensesunder CERCLA require,among
experience to assess aproperty ofthe nature,history,and setting of the severalother things,that theclient after the acquisition stop any
subject property. We have developed and performed the AAI in continuing releases,prevent any future threatened releases and prevent
conformance with the standards and practices set forth in 40 CFR 312. or limit human,environmental or naturalresource exposure toany
hazardoussubstance released at the subject property.Therefore,ERM
makes no warranties,express or implied,including,withoutlimitation,
warranties asto merchantability or fitness for a particular purpose,
including any warranty that this Phase I ESA will in fact qualify client
for the innocent landowner,contiguous property ownerorprospective
purchaser defense to liability under CERCLA. ERM's assessmentis
limited strictly to identifying RECs associated with the subjectproperty.
Results of thisassessment are based upon the visual site inspection of
readily accessible areas ofthe subject property conducted by ERM
personnel,information from interviews with knowledgeablepersons
regarding the site,information reviewed regarding historical uses,
information provided by contacted regulatory agencies,and review of
publicly available and practically reviewable information identifying
current and historical uses of the propertyand surroundingproperties.
All conclusions and recommendations regarding the subject property
represent the professional opinions ofthe ERM personnel involved with
the project,and the results of this report should not be considered a
legal interpretation ofexisting environmental regulations. ERM
assumes no responsibility or liability for errors in thepublic data
a..27 SOLST.,m,o®,araaroi. 131 28 aurxa ,ati%.
Appendix A Nerd
Site Photographs
Photo.ra•h: 1 Transfer Pit lookingwest
Photo.ra•h: 2 Covered work bay looking northwest
3 e ProjectSolstice/Seward Ship's Drydock
J
N 7 Mile Nash Road,Seward,Alaska
ERM ERM Project Number 0230020
3 Li
W1."`“1401,4'''''
Coveredbay looking west. Photograph: 5 Spent sandblast grit stockpile,looking north-northeast fromwestern end of
covered workbe.
4 ter,;
Photograph' 4 Southern uncovered bay showingwork stations and snowcover,looking Liftdock,looking west across docktoward Resurrection Baeast. Photo.ra.h: 6 g y.
ProjectSolsticel Seward Ship's Drydock ProJectSolstice/Seward Ship's Drydock
7 Mile Nash Road,Seward,Alaska 7 Mile Nash Road,Seward,Alaska
ERM ERM Project Number0230020 132 ERM ERM ProjectNumber 0230020
2r— as_
i
I
rf ..Appendix BINre
HLeEL 1 t`` Aerial Photographs, Topographic
i%,I II•
Maps,City Directories Search
Results,and Sanborn Fire
r Insurance Maps
dab
Photograph: 7 Aboveground storage tanks of diesel and gasoline.looking east Lined
containmentcanbe seen a.ainst builddiin•walls
IIIi
4i ,
J
i 41 -•
Photograph: 8 Used oil burner andtank in Machine Shop,located atsouthwest corner of
l
buildin•
ProJectSolsticer Seward Ship's Drydock
7 Mlle Nash Road,Seward,Alaska
ERM ERM Project Number 0230020
3317
Certified Sanborn®Map Report 12119113
Site Name: ClientName:
Project Solstice Project Solstice ERMWest
Mile 7 Nash Road Mile 7 Nash Road 1001 SW5th Avenue J@J
Seward,AK99664 Portland,OR 97204
Seward,AK 99664 EDR Inquiry 9 3814690.3 Contact: Bob Carson
The complete Sanborn Library collection has been searched by EDR,and fire insurance maps covering the target
Inquiry Number:3814690.3 property location provided by ERM West were Identifiedfor theyearslisted below.The certified Sanborn Librarysearch
results in this report can be authenticated by visiting www.edmet.com/sanborn and entering the certification number
December19,2013 Only Environmental Data Resources Inc(EDR)is authorized to grantrights for commercial reproduction of maps by
Sanbom LibraryLLC,thecopyrightholderforthe collection.
CertifiedSanbom Results:A' ,`-•
Site Name: Project Solstice
Address: Mile 7 Nash Road
City,State,Zip: Seward,AK99664
Cross Street:
P.O.# Pending
Project: Project Solstice aem.•r.•.i.r..a•..e.
Certification 0 77BC-4E94-AC55 r'ew°eIRKsewif.
The Sanbom Library includes more flan t2 minion
UNMAPPED PROPERTY Sanbom fire insurance maps,which tack hetonoal
This report certifies that the complete holdings of the Sanborn property usage in approximately 12,000 Americantalesandtowns.C011ecnons aearcnea:
Library, LLC collection have been searched based on clientCertifiedSanborn® Map Report supplied target property information, and fire insurance maps
brary ofCongresscoveringthetargetpropertywerenotfound.VUniversity Publications of America
VEDR PrivateCollection
Frosw°mternyuc s wFee,
Limited Permission ToMake Copies
ERM West(the client)is permitted to make up to THREE photocopiesofthis Sanbom Maptransmittalandeach fireinsurance map accompanyingMISreportsolelyfortheIimieduseofitscustomer.Na oneother than the client is authorizedto make copies Upon request made directlytoan
EDR Account Executive,the client may be permitted to make a limited number ofadditional photocopies.This permission isconditioned upon
compliance by theclient,itscustomerand their agentswithEDR'scopyright policy.acopy ofwhichis availableupon request
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3814890-3 page 2