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HomeMy WebLinkAbout09132021 City Council PacketSeward City Council Agenda Facet 4j . 4 MEET THE CANDIDATES.. p 1011 Seward City Council Calhoon, Michael B -� Osenga, John W. Radner, Leighton I. Wells, Randy C. Kenai Peninsula Borough Assembly Member Carpenter, Kenn Ecklund, Cindy L. SEPTEMBER 20, 2021 5:30 PM STREAMED LIVE VIA THE CITY OF SEWARD YOUTUBE CHANNEL Monday, September 13, 2021 City Council Chambers Beginning at 7:00 p.m. r VOTE MEET THE CANDIDATES Seward City Council Calhoon, Michael B Osenga, John W. Radnor, Leighton I. Wells, Randy C. Kenai Peninsula Borough Assembly Member Carpenter, Kenn Ecklund, Cindy L. SEPTEMBER 20, 2021 5:30 PM STREAMED LIVE VIA THE CITY OF SEWARD YOUTUBE CHANNEL PLEASE SUBMIT QUESTIONS BY SEPTEMBER 16TH JUST SCAN THE OR CODE BELOW ■ 11: . ■ •.; is! SCAN ME https://qrco.de/bcMLs8 ti� 1963 1965 2005 The City of Seward, Alaska CITY COUNCIL MEETING AGENDA M-AmedcaC I �® Please silence all cell phones darning the meeting September 13, 2021 7:00 p.m. Council Chambers Christy Terry Mayor Term Expires 2022 Tony Baclaan Vice Mayor Term Expires 2022 Sue McClure Council Member Term Expires 2023 Sharyl Seese Council Member Term Expires 2021 John Osenga Council Member Term Expires 2021 Liz DeMoss Council Member Term Expires 2023 Ristine Casagranda Council Member Term Expires 2022 Janette Bower City Manager Brenda Ballou City Clerk Brooks Chandler City Attorney 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING [Those who have signed in will be given the first opportunity to speak. Time is limited to 3 minutes per speaker and 36 minutes total time for this agenda item.] 5. APPROVAL OF AGENDA AND CONSENT AGENDA [Approval of Consent Agenda passes all routine items indicated by asterisk (*). Consent Agenda items are not considered separately unless a council member so requests. In the event of such a request, the item is returned to the Regular Agenda] 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS A. Proclamations and Awards 1. Recognizing Erin Lemas and Laura Schneider for their service on the Port & Commerce Advisory Board 2. Recognizing Myla S. Liljemark from Seward Middle School for being named the 2021 Alaska History Teacher of the Year ............................................... Pg. 4 3. Remembering September 11, 2001 Proclamation Pg. 5 4. POW/MIA Recognition Day Proclamation ......... Pg. 7 5. American Legion Day Proclamation ................ Pg. 8 B. Borough Assembly Report C. City Manager Report ...................................... Pg. 9 D. City Attorney Report ...................................... Pg. 19 E. Other Reports and Announcements — None F. Presentations [Presentations are limited to ten minutes each, excluding Q&A, and are limited to two per meeting unless increased by council.] 1. Alaska Submarine Memorial Project presentation by Doug Poad and Waino Salo ................................. Pg. 21 City of Seward, Alaska Council Agenda September 13, 2021 Page I 7. PUBLIC HEARINGS — None 8. UNFINISHED BUSINESS — None 9. NEW BUSINESS A. Resolutions *1. Resolution 2021-095, Authorizing The City Manager To Enter Into A Contract With TriDelta Incorporated For City Calendar Advertising In The Seward Journal At A Rate Of $273 Per Week Beginning January 1, 2022 Through December 31, 2024.... Pg 29 *2. Resolution 2021-096, Authorizing the City Manager to Enter into a Contract Agreement Between the City of Seward, Alaska and the State of Alaska Department of Administration, Division of Motor Vehicles to Operate the City of Seward Division of Motor Vehicles Office ..................................................... Pg. 33 *3. Resolution 2021-097, Authorizing the City Manager to Enter into a Contract with the Alaska Department of Public Safety to Provide Basic Clerical Services, Parking, and Access to the Datamaster Instrument for the Alaska State Troopers .............. Pg. 50 *4. Resolution 2021-098, Approving a Change Order to the Purchase Order for Portable Toilet Services to Account for Additional Servicing During Peak Season in The Amount Of $30,905 and Appropriating Funds ....................................... Pg. 55 *5. Resolution 2021-099, Authorizing the City Manager to Enter into a Contract with McKinley Fence Company in the Amount of $98,489 to Tear Down the Existing Security Fence around the Fort Raymond Substation and Replace with a Stronger and Taller Security Fence to Improve Public Safety and Security ...................... Pg. 62 *6. Resolution 2021-100, Authorizing the City Manager to Purchase Transmission System MaterialsPoles, Pole Top and Support Assemblies, Conductors, Insulators, and Other Related Equipment, in the amount of $15,021,744 to Replace Aging and Deteriorating Equipment and to Upgrade the System's Voltage Capacity to Meet Future Load Growth................................................................... Pg. 80 *7. Resolution 2021-101, Authorizing the City Manager to Purchase Seven Electric Transformers in an Amount not to Exceed $4,800,000, which includes a 15% contingency, to Help Ensure Service Reliability for Seward Residents and Businesses While also Allowing the City to Meet Future Load Growth, and Appropriating Funds. ............................................................................................ Pg. 85 *8. Resolution 2021-102, Authorizing the City Manager to Enter into and Execute the Purchase and Sale Agreement and Related Documents with Chugachmiut for the Sale of a 3.31 Acre Portion of Lot 7A Fort Raymond Subdivision Replat No 1, Physical Address 2101 Dimond Blvd, 2109 Dimond Blvd, in the Amount of $663,500. Pg. 90 *9. Resolution 2021-103, Authorizing the City Manager to Purchase Distribution System MaterialsPoles, Lines, Pole -top Assemblies, Support Assemblies, Insulators and Other Hardware —in an Amount not to Exceed $110,196, Including a 15% Contingency, for the Relocation of Poles and Power Lines to Accommodate an Alaska Department of Transportation (AKDOT) Shoulder Widening Project on the Seward Highway near Moose Pass, and Appropriating Funds ................... Pg. 215 City of Seward, Alaska September 13, 2021 Council Agenda Page 2 `a *10. Resolution 2021-104, Declaring Its Intention to Reimburse Itself from Proceeds of One or More Tax -Exempt Financings for Certain Expenditures Made/Or to be Made in Connection with the Acquisition, Construction and Equipping of Certain Electric System Capital Improvements....................................................... Pg. 219 11. Resolution 2021-105, Approving Certain General Fund Capital Improvement Projects for Planning, Prioritization, and Implementation ....................... Pg. 228 B. Other New Business Items * 1. Approval of the August 23, 2021 City Council Regular Meeting Minutes..... Pg. 394 2. Vote and appoint a representative to the Cook Inlet Aquaculture Association (CIAA) with a term to expire May, 2022. Candidates are: Robert White and Robert Barnwell. ............................................................................................ Pg. 400 3.Discuss the future use or potential sale of the Annex Building ................... Pg. 403 4. Review the joint letter concerning the Port of Alaska from the Alaska Mayors and Chambers of Commerce, and authorize the mayor to sign on behalf of the City of Seward.................................................................................. Pg. 447 10. INFORMATIONAL ITEMS AND REPORTS — None It. CITIZEN COMMENTS [There is no sign in for this comment period. Time is limited to five (5) minutes per speaker.] 12. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS 13. ADJOURNMENT City of Seward, Alaska September 13, 2021 Council Agenda Page 3 3 PROCLAMATION WHEREAS, the History Teacher of the Year Award began in 2004 and it highlights the crucial importance of history education by honoring exceptional American history teachers from elementary school through high school; and WHEREAS, Myla Liljemark was nominated for the 2021 Alaska History Teacher of the Year Award; and WHEREAS, on August 19, 2021, Myla Liljemark was named the recipient of the 2021 Alaska History Teacher of the Year Award; WHEREAS, the 2021-2022 school year began Ms. Liljemark's 17th year teaching in the Kenai Peninsula Borough; and WHEREAS, her love of history was closely tied to her experiences living and traveling overseas and visiting Germany with her family in 1989; and WHEREAS, during the 2017-2018 school year, Ms. Liljemark combined her love of teaching and her love of history when she swapped places with a teacher in Australia for a teacher exchange program; and WHEREAS, Ms. Liljemark uses her life experiences to demonstrate the importance of making connections between the content of her class and the world outside of her classroom to her students. NOW, THEREFORE, I , Christy Terry, Mayor of the City of Seward, Alaska, do hereby congratulate Myla Liljemark on her achievement as: 2021 Alaska History Teacher of the Year Dated this 13th day of September, 2021. THE CITY OF SEWARD, ALASKA 4 Christy Terry, Mayor 'gNlTL v1 "A Day to Remember" WHEREAS, the unprovoked attacks of September 11, 2001 upon America by foreign terrorists thrust the United States and other countries into a war it never envisioned, militarily or diplomatically; and WHEREAS, the challenges facing all the civilized people of the world as they relate to the war on terrorism will not end until those with radical ideas that are contrary to peaceful ideas of the free world are quieted; and WHEREAS, America is fully committed to ensuring that our freedoms remain unfettered and sovereign for all generations, now and forever; and WHEREAS, world opinion needs to remain focused upon the elimination of these inhuman acts perpetrated around the globe; and WHEREAS, one way to accomplish this to NEVER FORGET that those innocent victims did not die in vain; and WHEREAS, America can fight back by reminding the world that the deaths of these people will always be remembered and that they will be forever loved; and WHEREAS, service members and first responders from Seward and the state are honored and supported when they are called to serve and defeat inhuman acts of terrorism; and WHEREAS, a noble and appropriate way to accomplish this is through the annual celebration of their life and their service; and WHEREAS, this commemoration should be conducted each September I V throughout the land to include: • The promotion of global peace and goodwill; • The demonstration of America's resolve and perseverance to win the war on terrorism; • The advancement of responsible citizenship; • The encouragement of patriotism and love of country; and • The poignant remembrance of those innocent victims who died September 11�, as heroes, one and all; NOW THEREFORE, I, Christy Terry, Mayor of the City of Seward, Alaska, do hereby issue this proclamation in remembrance of those who tragically lost their lives on September 11, 2001, and as a token of appreciation for the brave men and women who serve and protect our country today. Dated this 13' day of September, 2021. THE CITY OF SEWARD, ALASKA Christy Terry, Mayor PROCLAMATION WHEREAS, throughout American history, members of America's armed forces have made uncommon sacrifices as Prisoners of War (POW), serving our country under conditions of extreme hardship while remaining steadfast, even when their treatment violated fundamental standards of morality and international codes of conduct; and WHEREAS, 1,584 Americans are still missing from the Vietnam War, 7,555 unaccounted from the Korean War, 126 from the Cold War, over 72,403 from World War II, and thousands are recorded as unrecoverable as deep-sea losses; and WHEREAS, Americans held as POWs and Americans Missing in Action (MIA) have earned our respect for their courage and devotion to the United States; and WHEREAS, we honor our POWs who, in the act of serving our Nation, relinquished their freedom to protect the liberties we enjoy; and WHEREAS, we also honor those MIAs and should not forget the pain and suffering of families and friends of those missing, and countless other Americans who still deal with a lack of certainty regarding their fates; and WHEREAS, the United States Congress established the third Friday in the month of September as America's Annual National POW/MIA Recognition Day; and WHEREAS, the City of Seward commends, supports, and shares our nation's commitment to account as fully as possible for Americans still missing and unaccounted for from our nation's past wars and conflicts, and calls upon our nation's leaders to help account for and return our missing and unaccounted for personnel to the United States. NOW, THEREFORE, I, Christy Terry, Mayor of the City of Seward, do hereby proclaim September 17, 2021, as POW/MIA RECOGNITION DAY and call upon all citizens to join with Americans across the nation in honoring all present and former American POWs and MIAs and their families. Dated this 13th Day of September, 2021 THE CITY OF SEWARD, ALASKA Christy Terry, Mayor VA PROCLAMATION WHEREAS, the American Legion was chartered by Congress on September 16, 1919 as a wartime veterans organization based on four pillars: Veterans Affairs & Rehabilitation, National Security, Americanism, and Children & Youth; and WHEREAS, over the years, the American Legion has become a preeminent community service organization which now numbers more than two million members -- men and women -- in nearly 13,000 American Legion posts worldwide working a variety of programs that benefit our nation's veterans, service members, families, and the youth of America; and WHEREAS, the Alaska American Legion has grown to be the largest and most active major veterans organization and advocate for veterans rights in the state of Alaska; and WHEREAS, the Alaska American Legion's current membership is over 8,000 with 35 chartered posts, including Legionnaires, Auxiliary members and Sons of the Legion; and WHEREAS, the American Legion continues to serve Alaska's veterans, members of the armed forces, and their families through hospital visits, financial assistance, and boys' and girls' state programs, and continues to fight for the rights of veterans and the military through active legislation at the state and national level; and WHEREAS, the members of the American Legion Post #5 in Seward are dedicated to upholding the ideals of freedom and democracy since December 31, 1919; and WHEREAS, the 2021 observance of American Legion Day provides an opportunity to recognize Legionnaires in our community for their many contributions to our city of Seward. NOW, THEREFORE, I, Christy Terry, Mayor of the City of Seward, Alaska do hereby proclaim September 16, 2021, as THE AMERICAN LEGION DAY Dated this 13t" Day of September, 2021 THE CITY OF SEWARD, ALASKA Christy Terry, Mayor 8 City of Seward City Manager's Report September 13, 2021 Mayor Terry and Council Members, Budget Season It is budget season and a great deal of time is being spent preparing for the upcoming budget meetings. Reminder of the September 27, Budget Kickoff Meeting at 5:30 pm. I look forward to the meetings and process. I feel going through the process provides a greater understanding of the city's resources. Infrastructure Bill I'm continuing to watch the infrastructure bill for potential funding sources for city projects. As opportunities present themselves, I will let you know. Personnel Thankfully, we have had several new hires and we look forward to working with our new employees. Please see Human Resource Officer Nickell's report below: City of Seward Personnel Transactions Prepared by Tammy Nickell, City of Seward Human Resources Officer Separations: None New Hires: Patrol Officer Recruit (3) Executive Assistant Police Water/Waste Water Operator Seasonal Library Aide Library Technician Building Official Available Full Time Positions: Recreation Assistant Corrections Officer (2) Journeyman Lineman Police Dispatcher Library Museum Aide (2) Accounting Technician 1 Available Seasonal Positions: Seasonal Library Aide (1) Seasonal Park Maintenance Department: Date of Separation: Department: Date of Hire: Police 3 Conditional Offers Given Police Conditional Offer Given Public Works 9/1/2021 — Approximate start date 11/2/2021 Library 9/2/2021 Library 9/21/2021 Building 9/7/2021 Department: Position Status: SPRD Advertising Since 04/05/2021 Police Advertising Since 04/12/2021 Electric Advertising Since 05/04/2021 Police Advertising Since 06/21/2021 Library Advertising Since 08/11/2021 Finance Advertising Since 09/03/2021 Department: Position Status: Library Advertising Since 04/05/2021 SPRD Advertising Since 04/05/2021 As required by the Seward Municipal Code 6.05.010, the following purchase orders between $5,000 and $30,000 have been approved by the City Manager since the last council meeting: Date Department Description Amount 8/20/2021 Campgrounds Resurfacing Spring Creek Campground $ 9,700.00 8/20/2021 Police Annual Renewal of Software License 9/23/21 — 9/23/22 $ 11,175.00 8/20/2021 Electric 25 KVA Padmount Transformers (7200/12470-120/240) $ 26,450.00 8/20/2021 Electric 2" PVC Conduit $ 27,300.00 8/27/2021 Electric #2 220 15kv mil Concentretic Neutral Jacketed Wire $ 29,470.00 9/03/2021 Electric 4/0 Triplex Underground (Sweetbrier) Wire $ 7,350.00 Chine pads replacement for 330 ton Travelift. These are 9/3/2021 SMIC meant to protect the bels themselves from sharp edges on $ 9,115.00 the boats being lifted. Some are getting worn. 9/03/2021 Public Works Winter Streets- Replace Grader Blades for Vehicle #106, $ 11,900.00 #174 and #113 9/07/2021 IT New desks and file cabinets for City Manager, Assistant City $ 9,950.00 Manager and IT Offices Street Winter Supplies — calcium chloride, tundra ice melt, 9/07/2021 Public Works and salt bulk bag. Three sources contacted and Alaska $ 25,150.00 Garden Pet Supply had lowest bid. Thank you, j*r- it$] City of Seward Department Activity Reports Electric Department Director Rob Montgomery ➢ Power Outage (August 28) — Electric service to the City was lost on Saturday morning, August 28, for a little more than an hour when a breaker in Chugach Electric Association's (CEA) Dave's Creek Substation tripped, indicating a fault somewhere on the circuit. Through its system network, CEA was able inform us the fault was in the City and Electric Department crews quickly found where a small tree had fallen into lines near the Fort Raymond Substation, clearly the result of the high winds we experienced that day. While Electric Department personnel did fire up the Fort Raymond plant in the event the City needed to pick up load, the switch to City power was never made. ➢ Fort Raymond Substation Fence (Update) — Completed the Request for Proposal and received one bid. The good news is that it is an established and experienced organization, McKinley Fence Company out of Anchorage, that has installed substation fencing for Chugach Electric Association (CEA) and other utilities. The Resolution to finalize the contract will be presented to Council at the September 13 meeting. ➢ Demand Meters (Update) — A representative from Chugach Electric visited Seward on September 2 and worked with Electric Department personnel to program the 11 remaining demand meters for installation. Electric crews plan to install the meters the week of September 6. ➢ Camelot Subdivision — Electric crews are finishing up work on Phase II of the Camelot Subdivision Project extending a primary line that will allow previously unserved customers to take power, should they choose to do so. Between Phase I of the project —completed earlier this summer —and Phase II, electric service will be/has been made available to 14 residences, with five already taking service. ➢ Right-of-way Clearing Seward Hwy (Update) — AK Tree Service crews have completed clearing the first assigned section of right-of-way clearing between MP 21 and MP 23. They will now begin working on the next prioritized section between MP 19.5 and MP 21. ��a Finance Department Jessra Snyder ➢ Internal Audit: Finance is continuing their review of accounts to ensure correct billings. Changes will take effect in January and the first bills with changes will be noted in February. ➢ Forensic Audit: Greene Forensic Accounting Solutions continue their review. Greene is coming to the City for a second trip, from 8/30/21 through 9/3/21, to review current business models (seating at restaurants, floor plans, number of rooms for lodging, etc.) to review billings for 2018 and 2019. Finance has expressed their concern over this practice as it falls outside the scope of the audit and will result in billing variances. The auditors have agreed it will result in variances as well. During the second onsite visit, Greene will also be interviewing public works employees because they didn't do that when they were onsite for a full week the first time ➢ The garbage franchise agreement for the collection and disposal of garbage will go out to the voters of Seward at the October 5, 2021 regular city election. ➢ Annual Audit: The annual audit for 2020 is complete. Altman Rogers presented the financials and findings to Council on Monday August 23rd. Finance is in the process of addressing the findings and suspects the findings will be resolved over the course of the next couple years audits. Due to being more than half way into the 2021 fiscal year, some findings may repeat into next year's audit. But it is Finance's desire to get to a zero -finding audit review. ➢ Finance is in the process of overhauling the preliminary budget presentation for council. This is a very detailed and collective effort that will include a lot of extra hours and commitment from Finance and City Managers. ➢ Finance was successful in filling the Utility Accountant Technician II. They are set to start on September 7t", which is great news and well overdue. Thanks to Tammy Nickel for all her help and assistance with this. 8/09/21 Meeting 13 IV Fire & Building Department Fire Chief Clinton Crites We can always use volunteers, if you or someone you know is interested in serving your community, please give us a call at 224-3445 or stop by at one of our trainings on Wednesday evenings at 7:00 pm. Firefighter 1 training starting October 7t" with Bear Creek FD! Statistical Information; Fire & Life Safety Inspections YTD: 319 inspections discovering 568 violations. Emergency Calls year to date: 207 New Building Permits issued YTD: 28 with 3 in process with atotal job valuation of $2,844,244 Demo Permits issued YTD: 5 • 8/31/21 UL Performed Pump, Ladder, and Aerial testing on all apparatus. • Processing and reviewing 3 new building permits and 36 active building permits. Have a back up plan for power outages to include: charging options for phones and medical devices, alternate ways to heat and cook safely, and know where your supplies are located. 14 CAR SEAT 6 SAFEate'' Y u BOOSTER SEAT K 4 .} .�— i K'@DS CHECKUP EVENT ALASKA Car seats are confusing! Is yours correct? SA�FE K'06 i Certified Child Passenger Safety Technicians I�ENAI PENINSUI A will help you be sure. WHEN: Bloom i ..". Saturday, September 25, 2021 , 11:00am-2:00pm INHERE: indit. �r,ri. Alaska *No pets in vehicles— leave pets at home `Bring the kids and car seats Masks covering mouth/nose requested for all r2 attendees over age 2 years. ............... ......... � � tirr, nn���e E3E For more information, call Safe Kids Alaska 907-212-3194 www.carseatsak.org a NASA W Harbor Harbormaster Norm Regis ➢ Both Travelifts have started removing vessels from the harbor for winter storage. ➢ We are prepping the SMIC yard for the winter storage season. ➢ We have a list growing for the 330 ton travelift for vessels to get lifted or to be placed into the water. ➢ All the water in the harbor is turned on, we had some water main breaks in the harbor but they have since been repaired. ➢ We are still working with the public with COVID protocol in mind while continuing to do boat lifts and public contact in the Seward Harbor office. ➢ A continuous cleanup is still in process on the last 2 lots at SMIC, this could take some time but we are making headway. ➢ The fish cleaning stations are open and very busy. ➢ The harbor office is fully staffed. ➢ The Harbor has upgraded to the new software and are still working through some minor issues with the on-line payments. ➢ The harbor office is open seven days a week and are preparing for the Salmon Derby. (August 14th to August 22, 2021.) ➢ Continuing to have meetings concerning the North East harbor launch ramp, we are at the 95% design we are waiting to receive the dredge permit from the CORP, once we have the permit we will go out to bid. ➢ We have had 2 addendums for the G, K and L-Float replacement project. ➢ We will open bids for the G, K and L-Float project on Friday the loth of September at 3:30 pm. ill Seward Community Library & Museum Bailey Sayler Museum Window Display Dennis Hitt and the Mt. Marathon Junior Race are featured in the Windows of History display. The exhibit tells the story of Dennis Hitt, a Seward High School graduate who fell to his death in a climbing accident on Mt. Alice in 1963. At the time, the 18-year-old Hitt was captain of the Seward Mt. Marathon race team and the trip up Mt. Alice was a training run for the big race. The first Mt. Marathon Junior Race held a year later was dedicated to his memory. The exhibit was created by the Resurrection Bay Historical Society. New Hours We have started opening and closing sooner to better serve our patrons. Our new library hours are: Tuesday — Friday 9 am — 6 pm Saturdays 9 am — 5 pm. Museum is closed at the moment due to short staffing. 17 Public Works Doug Schoessler ➢ Sidewalk Project-E on 5t" Avenue: Almost complete. Just about a 40' section left to finish when the weather allows in a few days. That was a very large sidewalk project. The contractor worked very hard for us to ➢ Budget: Good but long Public Works budget meeting with Administration and Finance this week. We'll do CIP projects soon. ➢ Level 1 & 2 Soil investigations at the Public Works Facility on 6t" Ave.: The level 1 investigation is completed and as expected gave some areas for the follow up level 2 part to investigate further. The Level 2 delves into more details and will give definite results and recommendations ➢ Wastewater and Lagoon overview study: The Team from R an M Consulting did site visit on Thursday 9-2-21 and asked questions about the system. They also requested the plan drawings from 1992 and pictures of the lagoon when it was drained down this year. I was able to complete both requests at the office before they departed to Anchorage. ➢ FLAP Grant: FHWA — Western Lands Highway Division No new updates. Streets: ➢ Brushing/vegetation management: Mowing and brushing in the ditches and along the road edges is moving forward for a safer wider view for drivers. ➢ Tunnel Outlet: Streets operators have been clearing gravel material from the outlet/falls area to prepare for fall rain events. The cleared areas will allow operators to more efficiently move gravel debris during flooding storms. Water/ Wastewater: ➢ Operators: Workload is high for WW operators. We interviewed and made an offer to fill the open position. We are working with that candidate on a few details and will complete all requirements very soon. ➢ Construction Locates: There are still a high number of locates are being done weekly for construction projects. We expect that to continue into the fall as people try to get projects done before the weather gets bad. Shop: ➢ Repairs and Maintenance. The shop continues to do the maintenance and repair work daily. We have some newer equipment and some much older equipment. The older equipment has been wearing out and having some more expensive repairs. 18 CHANDLER, FALCONER, MUNSON & CACCIOLA, LLP Attorneys At Law Suite 302 911 West Eighth Avenue Anchorage, Alaska 99501 Telephone: (907) 272-8401 Facsimile: (907) 274-3698 bcf@bcfaklaw.com September 8, 2021 Seward City Council City of Seward PO Box 167 Seward, AK 99664 Re: Status Report Dear City Council: This is our status report covering activity on legal matters worked on during August. Electric Utility We reviewed an RFP for fencing. We prepared a "no litigation" letter for a municipal bond bank loan application. Personnel We reviewed the final version of the collective bargaining agreement with the Seward Public Employees Association. We advised on the pet policy. We assisted in updating the City's COVID policy for employees and analyzed the authority of the city manager to develop personnel policies. Planning We continued to work on enforcement matters related to an expired conditional use permit and several commercial properties. We cross-checked references to building codes contained in a proposed amendment to Title 15. We advised on regulation of seasonal employee campgrounds. 19 Seward City Council September 8, 2021 Page 2 General Matters We continued work on the recodification project including the beginnings of a minor offense bail schedule for certain code violations. By the end of the month our work had covered Titles 1-12 leaving Titles 13-17 to be completed. We reviewed a proposed revised draft and then a final version of the real estate purchase agreement with Chugachmiut and revised the resolution approving the agreement. We commented on an application submitted under the developer reimbursement ordinance. We reviewed a contract for software services and an RFP for vehicle towing services. We analyzed the scope of a previously issued encroachment permit. We updated a previous communication with the city's auditor. We reviewed a draft ballot statement for the October election. We advised on use of convenants and deed restrictions to ensure use of property sold by the city to achieve the goal of alleviating the housing shortage. Port We drafted amendments to existing lease agreements with UAF and with Chugach Regional Resources Commission. We reviewed a proposed environmental covenant to be placed on property leased to Ocean Beauty. We reviewed a proposed license for temporary access to a potential lease site with the United States Coast Guard. We prepared a lease termination notice. Due to a staff illness we have not been able to finalize the City's invoice for July legal expenses so can only provide an estimate- $7,000. You can expect to receive our next status report by October 6. Very truly yours, CHANDLER, FALCONER, MUNSON & CACCIOLA, LLP 1.2 Brooks W. Chandler 20 ALASKA Submarine Memorial Project •,�� •� � � � lea ��1���WsNII�94,001 M w A AN / • 'ram• r � �/ '� Y Bringing History Home � 11 What's In It For Seward... and Alaska ✓ Multi -dimensional value to city and state • Tourist attraction appealing to many demographics 1 Alaska residents, cruise passengers, veterans, & tourists • Significant historical attraction ✓ Proposed funding from broad -based fundraising • In and out of state of Alaska • Institutional, Corporate, and Individuals 3 History of USS ALASKA (SSBN 732) ✓ Th Trident submarine — commissioned JAN 1986 ✓ Catherine Stevens is the ships sponsor ✓ "Honorary homeports" in Alaska • Seward `v Blue Crew • Fairbanks/North Star Borough `v Gold Crew ✓ Memorable ship visit to Seward in 1987 ✓ Defending our country with distinction N most deterrent patrols of any FBM 4 Who We Are ✓ Former "Plankowners" & crewmembers ✓ Registered Alaska nonprofit corporation • Alaska Business License issued in May 2021 • Applied for 501(C)(3) status in June 2021 • Expected approval by October 2021 5 ALASKA Submarine Memorial Project - Phased Plan For Success Phase 1 11 1 Phase 2 Initial Organization - Farm • Nonprofit Alaska Corporation ✓ Identify initial directors • ✓ Draft & approve bylaws ✓ Elect corporate officers ✓ File Articles of Incorporation ✓ Open corporate bank account ✓ Get Certificate of Incorporation ✓ Obtain other required business licenses & permits ✓ Obtain 501(C)(3) status I Phase 3 1 Develop Realistic Plans & Start Working Than ✓ Continue recruiting folks as in Phase 2 ✓ Finalize Design & Site plans ✓ Develop project management plan ✓ Execute communication strategies state-wide ✓ Begin Fund-raising and sponsorship development efforts ✓ Hire necessary paid staff ✓ Execute required contracts & MOAs with Navy, State, & City R Develop Nonprofit Capacity 98/ ✓ Charter required committees • Planning & Administration Done• Marketing & Communications • Fund Raising • Site Planning & Execution • Others, as needed ✓ Preliminary site evaluations, feasibility studes, and business case/plan ✓ Generate a compelling "prospectus` ✓ Build contact rist/database ✓ Start recruiting "next-gen" directors, committee members, & advisory board Adopted by the Board members with required interest, skills, 2/20/2021 & connections 26 Phase 4 1 1 Phase 5 Transition to Ongoing Operations ✓ Hire necessary paid staff ✓ Continue communications & fund-raising efforts ✓ Ensure required operating procedures & reporting requirements are covered ✓ Develop & implement operating & programming plans in conjunction with state & city ✓ Start working on getting the ships sail from the Nary Build the Dream ✓ Continue recruiting folks as in Phase 2 ✓ Hire necessary paid staff ✓ Obtain necessary building permits and other approvals/clearances ✓ Negotiate necessary contracts ✓ Break ground (ceremony) ✓ Begin site development & construction ✓ Continue communications & fund- raising efforts ✓ Develop plans for opening celebrations (should we ask Mrs. Stevens serve as the "sponsor` again?) What We Are Asking For Tonight 1. City Council's partnership for joint study/planning 2. City & regional staff to work with us to address • Where could it be built? • How much will it cost? • How long will it take? • Is it sustainable? 3. Joint efforts to: a. Communicate information about the project to citizens of Seward and Alaska b. Involve citizens of Seward and Alaska in study, planning, and execution Questions 1.1 rr� --- ---------------- ---- ------- USS McKee (AS-41) and USS Alaska (SSBN-732) moored in Seward for an Independence Day celebration N July 1987. Sponsored by: City Clerk - CITY OF SEWARD, ALASKA RESOLUTION 2021-095 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH TRIDELTA INCORPORATED FOR CITY CALENDAR ADVERTISING IN THE SEWARD JOURNAL AT A RATE OF $273 PER WEEK BEGINNING JANUARY 1, 2022 THROUGH DECEMBER 31, 2024 WHEREAS, the city clerk's office produces, on a weekly basis, display advertisements announcing City of Seward meetings which are required by law; and WHEREAS, the city's current contract for "City Calendar" advertising with the Seward Journal will expire December 31, 2021; and WHEREAS, in August, 2021 the city clerk solicited quotes from the Anchorage Daily News (ADN), the Peninsula Clarion, and the Seward Journal; responses were received from all three in a timely manner; and WHEREAS, TriDelta Incorporated owns the Seward Journal, and the quote they submitted was the best rate from all responses; the current fixed rate of $273 per weekly ad, which includes the city's required affidavit of publication, was the quote proposed to continue for the next three years; and WHEREAS, the city clerk has enj oyed a collaborative and professional working relationship with the Seward Journal and recommends continuing the arrangement for the next three years. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to sign an advertiser's agreement with TriDelta Incorporated, the publisher of the Seward Journal, for the weekly City Calendar for a flat rate of $273 per week, or $14,196 per year, for the period January 1, 2022, through December 31, 2024, with funding taken from advertising account 01000-1110-7300. Section 2. This resolution shall take effect January 1, 2022. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13t' day of September, 2021. 29 Agenda Statement �6 Meeting Date: September 13, 2021 From: Brenda Ballou, City Clerk Agenda Item: Contract for advertising the City Calendar with TriDelta Incorporated in the Seward Journal BACKGROUND & JUSTIFICATION: Per city code, the city must advertise in a paper of general circulation the City Calendar. In August, the city clerk solicited quotes from three advertisers: Anchorage Daily News (ADN), Peninsula Clarion, and Seward Journal. Quotes were received from all three outlets. TriDelta Incorporated publishes the Seward Journal, and they submitted a quote of a flat fee of $273 per week, which includes the legally required notarized affidavit of publication, or $14,196 per year. This quote would continue with the city's current rate for the next three years, and was the best quote received. The funds for this contract have been included in the proposed 2022 budget, pending council approval. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): X 2. Strategic Plan (document source here): X Other (list): Seward City Charter 1.5 (1), 3.5 (c), 4.2, 6.3, 8.2 3. X Seward Ci . Code 1.01.060, 2.10.032, 4.01.010, 5.05.015, 5.20.040, 7.05.125, 7.10.610, 14.01.040, 15.01.040 FISCAL NOTE: The estimated annual rate for the city calendar is $14,196 and is charged from Mayor/Council account 01000-1110-7300. Upon approval of this resolution, this amount will be incorporated into the 2022 budget as well as the 2023/2024 budget. 30 Finance Approval. ATTORNEY REVIEW: Yes: X No: N/A: RECOMMENDATION: Approve Resolution 2021-095 Kai IrriDelta, Incorporated P. ®. Box 986 DeCta Junction, ACaska 99737 Phone. (907) 460-8629 August 15, 2021 Brenda Ballou City of Seward Clerk PO Box 167 Seward, Alaska 99664 TriDelta, Incorporated proposes to publish the Seward City Calendar weekly beginning January 1, 2022, through December 31, 2024, in the Seward Journal, Seward Alaska. Material for the advertisement will be submitted as a Microsoft Word file by email to the Seward Journal no later than 5 p.m. the Tuesday prior to publication, subject to print deadline changes due to holidays or other unforeseen events. In the event of a deadline change, we will work to accommodate the city's needs. A proof will be provided for final review in PDF format in a timely manner, normally within one hour of notification that the material has been provided. Final approval for the proof must be provided by 9 p.m., or the ad will publish as provided in the proof. The agreed upon specifications for the Calendar are grayscale, and will be adjusted in size based upon content to meet the needs of the City of Seward. The rate will remain constant regardless of the actual ad size. Maximum size available is one full page or 77.5 column inches, 5 columns x 15.5" (10" x 15.5"). It is agreed that the ad will be positioned run of press, but will be included in the section of the paper with and as close to classified ads and other legal notices as possible. A notarized affidavit of publication and tear sheet will be provided with the weekly invoice for each ad. The fixed cost for the advertisement is $273 per week ($14,196 per year) which shall be due and payable 30 days following the invoice date. Insertions will be invoiced weekly. A late fee of $20 will be assessed on the balance of each invoice unpaid by the due date, along with an interest charge of 5 % per month on any past due invoice open as of the last day of each month. If you have any questions, please do not hesitate to contact me. Michael Paschall President Newspaper publishing and digital consulting SIGNED City of Seward Janette Bower City Manager Date: ATTEST Brenda Ballou City 6erk Resolution 2021-096 Documents: • Agenda Statement • Resolution 2021-096 • Attachments: o DMV Contract 2021 final 33 City Council Agenda Statement Meeting Date: September 13, 2021 To: City Council Through: Janette Bower, City Manager From: Alan Nickell, Chief of Police Agenda Item: Resolution 2021-096: Authorizing the City Manager to Enter into a Contract Agreement Between the City of Seward, Alaska and the State of Alaska Department of Administration, Division of Motor Vehicles to Operate the City of Seward Division of Motor Vehicles Office Background and justification: The City of Seward has entered a contract with the State for many years to operate the DMV office in Seward. The current contract is due for a three-year renewal to expire June 30, 2024. The DMV pays the City of Seward: • 30% of the fees collected from boat, snow machine and ATV transactions. • 30% of the fees collected from motor vehicle transactions, excluding Motor Vehicle Registration Tax and Surety Bond deposits. • 50% of the fees collected from driver's license and identification card transactions. • 100% of the fees collected from road tests. The funds paid to the City of Seward by the State of Alaska Department of Administration are used to offset a portion of the costs associated with operating the Seward DMV office. Consistency checklist: Comprehensive Plan: N/A Strategic Plan: N/A Other: N/A Fiscal note: Upon approval of this contract, the 2022 budget will include $60,615 in DMV revenue within the General Fund. Finance Department approval: Attorney Review: Yes ❑ No F Not applicable ❑ Recommendation City Council approve Resolution 2021-096. 34 Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2021-096 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Enter into a Contract Agreement Between the City of Seward, Alaska and the State of Alaska Department of Administration, Division of Motor Vehicles to Operate the City of Seward Division of Motor Vehicles Office WHEREAS, the City of Seward has entered into a contract with the Division of Motor Vehicles for many years; and WHEREAS, the current DMV contract is due for a three-year renewal to expire June 30, 2024; and WHEREAS, the DMV pays the City of Seward 30% of the fees collected from boat, snow machine and ATV transactions; and WHEREAS, the DMV pays the City of Seward 30% of the fees collected from motor vehicle transactions, excluding Motor Vehicle Registration Tax and Surety Bond deposits; and WHEREAS, the DMV pays 50% of the fees collected from driver's license and identification card transactions; and WHEREAS, the DMV pays 100% of the fees collected from road tests; and WHEREAS, the funds paid to the City of Seward by the State of Alaska Department of Administration are used to offset a portion of the costs associated with operating the Seward DMV office; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. Authorize the City Manager to enter into a contract with the State of Alaska Department of Administration, Division of Motor Vehicles to provide for the City of Seward to operate the Seward Division of Motor Vehicles office. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this September 13, 2021. W STANDARD AGREEMENT FORM FOR PROFESSIONAL SERVICES The parties' contract comprises this Standard Agreement Form, as well as its referenced Articles and their associated Appendices 1. Agency Contract Number 2. Contract Title 3. Agency Fund Code 4. Agency Appropriation Code 575 COMMISSION AGENT 5. Vendor Number 5. IRIS GAE Number (if used) Y_Alaska Business License Number This contract is between the State of Alaska, 8. Department of Division ADMINISTRATION MOTOR VEHICLES hereafter h n 9. Contractor CITY OF SEWARD hereafter the contractor Mailing Address Street or P.O. Box City State ZIP+4 P.O. BOX 167, SEWARD, AK 99664 10. ARTICLE 1. Appendices: Appendices referred to in this contract and attached to it are considered part of it. ARTICLE 2. Performance of Service: 2.1 Appendix A (General Provisions), Articles 1 through 16, governs the performance of services under this contract. 2.2 Appendix B sets forth the liability and insurance provisions of this contract. 2.3 Appendix C sets forth the services to be performed by the contractor. DMV COMMISSION AGENT PARTICIPATION AGREEMENT ARTICLE 3. Period of Performance: The period of performance for this contract begins 07/01/2021 and ends 06/30/2024 ARTICLE4. Considerations: 4.1 In full consideration of the contractor's performance under this contract, the State shall pay the contractor a sum not to exceed $ 0 in accordance with the provisions of Appendix D. 4.2 When billing the State, the contractor shall refer to the Authority Number or the Agency Contract Number and send the billing to: 11. Department of Attention: Division of ADMINISTRATION MOTOR VEHICLES Mailing Address Attention: 3901 OLD SEWARD HWY, STE 101, ANCHORAGE, AK 99503 CONTRACT SERVICES 12. CONTRACTOR 14. CERTIFICATION: I certify that the facts herein and On supporting Name of Firm documents are correct, that this voucher constitutes a legal charge CITY OF SEWARD against funds and appropriations cited, that sufficient funds are encumbered to pay this obligation, or that there is a sufficient balance in the appropriation cited to cover this obligation. I am Signature of Authorized Representative Date aware that to knowingly make or allow false entries or alternations on a public record, or knowingly destroy, mutilate, suppress, conceal, remove or otherwise impair the verity, legibility or Typed or Printed Name of Authorized Representative availability of a public record constitutes tampering with public fi/Z">>i� fFS records punishable under AS 11.56.815-.820. Other disciplinary action may be taken up to and including dismissal. Title 13. CONTRACTING AGENCY Signature of Head of Contracting Agency or Date Designee 5/10/21 Department/Division Date DOA/DMV 5/10/21 Signature of Project Director Typed o rinted Name Jenna Wright, Deputy Director Typed or Printed Name of Project4firector Title Jenna Wright, Deputy Director rtle- 02-093 (Rev. "141 NOTICE! This contract has no effect until signed by the head of contracting agency or designee. SAF.nOC 0-11 APPENDIX A GENERAL PROVISIONS Article 1. Definitions. 1.1 In this contract and appendices, "Project Director" or "Agency Head" or "Procurement Officer" means the person who signs this contract on behalf of the Requesting Agency and includes a successor or authorized representative. 1.2 "State Contracting Agency" means the department for which this contract is to be performed and for which the Commissioner or Authorized Designee acted in signing this contract. Article 2. Inspections and Reports. 2.1 The department may inspect, in the manner and at reasonable times it considers appropriate, all the contractor's facilities and activities under this contract, 2.2 The contractor shall make progress and other reports in the manner and at the times the department reasonably requires. Article 3. Disputes. 3.1 If the contractor has a claim arising in connection with the contract that it cannot resolve with the State by mutual agreement, it shall pursue the claim, if at all, in accordance with the provisions of AS 36.30,620— 632. Article 4. Equal Employment Opportunity. 4.1 The contractor may not discriminate against any employee or applicant for employment because of race, religion, color, national origin, or because of age, disability, sex, marital status, changes in marital status, pregnancy or parenthood when the reasonable demands of the position(s) do not require distinction on the basis ofage, disability, sex, marital status, changes in marital status, pregnancy, or parenthood. The contractor shall take affirmative action to insure that the applicants are considered for employment and that employees are treated during employment without unlawful regard to their race, color, religion, national origin, ancestry, disability, age, sex, marital status, changes in marital status, pregnancy or parenthood. This action must include, but need not be limited to, the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training including apprenticeship. The contractor shall post in conspicuous places, available to employees and applicants for employment, notices setting out the provisions ofthis paragraph. 4.2 The contractor shall state, in all solicitations or advertisements for employees to work on State of Alaska contract jobs, that it is an equal opportunity employer and that all qualified applicants ,vilI receive consideration for employment without regard to race, religion, color, national origin, age, disability, sex, marital status, changes in marital status, pregnancy or parenthood. 4.3 The contractor shall send to each labor union or representative of workers with which the contractor has a collective bargaining agreement or other contract or understanding a notice advising the labor union or workers' compensation representative of the contractor's commitments under this article and post copies ofthe notice in conspicuous places available to all employees and applicants for employment. 4.4 The contractor shall include the provisions ofthis article in every contract, and shall require the inclusion of these provisions in every contract entered into by any of its subcontractors, so that those provisions will be binding upon each subcontractor. For the purpose of including those provisions in any contract or subcontract, as required by this contract, "contractor" and "subcontractor" may be changed to reflect appropriately the name or designation ofthe parties of the contract or subcontract. 4.5 The contractor shall cooperate frilly with State efforts which seek to deal with the problem of unlawful discrimination, and with all other State efforts to guarantee fair employment practices under this contract, and promptly comply with all requests and directions from the State Commission for Human Rights or any of its officers or agents relating to prevention ofdiscriminatory employment practices. 4.6 Full cooperation in paragraph 4.5 includes, but is not limited to, being a witness in any proceeding involving questions of unlawful discrimination if that is requested by any official or agency of the State of Alaska; pennitting employees of the contractor to be witnesses or complainants in any proceeding involving questions of unlawful discrimination, if that is requested by any official or agency of the State of Alaska; participating in meetings; submitting periodic reports on the equal employment aspects of present and future employment; assisting inspection of the contractor's facilities; and promptly complying with all State directives considered essential by any office or agency of the State of Alaska to insure compliance with all federal and State laws, regulations, and policies pertaining to the prevention of discriminatory employment practices. 4.7 Failure to perform under this article constitutes a material breach of contract. Article 5. Termination. The Project Director, by written notice, may terminate this contract, in whole or in part, when it is in the best interest of the State. In the absence of a breach of contract by the contractor, the State is liable only for payment in accordance with the payment provisions ofthis contract for services rendered before the effective date of termination. Article 6. No Assignment or Delegation. The contractor may not assign or delegate this contract, or any part of it, or any right to any of the money to be paid under it, except with the written consent of the Project Director and the Agency Head. Article 7. No Additional Work or Material, No claim for additional services, not specifically provided in this contract, performed or fumished by the contractor, will be allowed, nor may the contractor do any work or furnish any material not covered by the contract unless the work or material is ordered in writing by the Project Director and approved by the Agency Head. Article S. Independent Contractor. The contractor and any agents and employees of the contractor act in an independent capacity and are not officers or employees or agents of the State in the performance ofthis. contract. Article 9. Payment of Taxes. As a condition of performance of this contract, the contractor shall pay all federal, State, and local taxes incurred by the contractor and shall require their payment by any Subcontractor or any other persons in the performance ofthis contract. Satisfactory performance ofthis paragraph is a condition precedent to payment by the State under this contract. 37 Article Ill. Ownership of Documents. All designs, drawings, specifications, notes, artwork, and other work developed in the performance of this agreement are produced for hire and remain the sole property of the State of Alaska and may be used by the State for any other purpose .vithout additional compensation to the contractor, The contractor agrees not to assert any rights and not to establish any claim under the design patentor copyright laws. Nevertheless, if the contractor does mark such documents with a statement suggesting they are trademarked, copyrighted, or otherwise protected against the State's unencumbered use or distribution, the contractor agrees that this paragraph supersedes any such statement and renders it void. The contractor, for a period of three years after final payment under this contract, agrees to furnish and provide access to all retained materials at the request of the Project Director. Unless otherwise directed by the Project Director, the contractor may retain copies of all the materials. Article l 1. Covcrning Law; Forum Selection This contract is governed by the laws of the State of Alaska. To the extent not otherwise governed by Article 3 of this Appendix, any claim concerning this contract shall be brought only in the Superior Court of the State of Alaska and not elsewhere. Article 12. Conflicting Provisions. Unless specifically amended and approved by the Department of Law, the terms ofthis contract supersede any provisions the contractor may seek to add. The contractor may not add additional or different terns to this contract; AS 45.02.207(b)(1). The contractor specifically acknowledges and agrees that, among other things, provisions in any documents it seeks to append hereto that purport to (1) waive the State of Alaska's sovereign immunity, (2) impose indemnification obligations on the State of Alaska, or (3) limit liability of the contractor for acts of contractor negligence, are expressly superseded by this contract and are void. Article I3. Officials Not to Benefit. Contractor must comply with all applicable federal or State laws regulating ethical conduct of public officers and employees. Article 14. Covenant Agninst Contingent Fees. The contractor warrants that no person or agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission. percentage, brokerage or contingent fee except employees or agencies maintained by the contractor for the purpose of securing business. For the breach or violation of this warranty, the State may terminate this contract without liability or in its discretion deduct from the contract price or consideration the full amount of the commission, percentage, brokerage or contingent fee. Article 15. Compliance. In the performance of this contract, the contractor must comply with all applicable federal, state, and borough regulations, codes, and laws, and be liable for all required insurance, licenses, permits and bonds. Article 16. Force ;Nlajeure: The parties to this contract are not liable for the consequences of any failure to perform, or default in performing, any of their obligations under this Agreement, if that failure or default is caused by any unforeseeable Force Me jeure, beyond the control of, and without the fault or negligence of, the respective party. For the purposes of this Agreement, Force Majeure will mean war (whether declared or not); revolution; invasion; insurrection; riot; civil commotion; sabotage; military or usurped power; lightning; explosion; fire; storm; drought; flood; earthquake; epidemic; quarantine; strikes; acts or restraints ofgovemmental authorities affecting the project or directly or indirectly prohibiting or restricting the furnishing or use of materials or labor required; inability to secure materials, machinery, equipment or labor because of priority, allocation or other regulations of any governmental authorities. 38 APPENDIX B' INDEMNITY AND INSURANCE Article 1. Indemnification The Contractor shall indemnify, hold harmless, and defend the contracting agency from and against any claim of, or liability for error, omission or negligent act ofthe Contractor under this agreement. The Contractor shall not be required to indemnify the contracting agency for a claim of, or liability for, the independent negligence of the contracting agency. If there is a claim of, or liability for, the joint negligent error or omission ofthe Contractor and the independent negligence ofthe Contracting agency, the indemnification and hold harmless obligation shall be apportioned an a comparative fault basis. "Contractor" and "Contracting agency", as used within this and the following article, include the employees, agents and other contractors who are directly responsible, respectively, to each, The term "independent negligence" is negligence other than in the Contracting agency's selection, administration, monitoring, or controlling ofthe Contractor and in approving or accepting the Contractor's work. Article 2. Insurance Without limiting contractor's indemnification, it is agreed that contractor shall purchase at its own expense and maintain in force at all times during the performance of services under this agreement the following policies of insurance. Where specific limits are shoum, it is understood that they shall be the minimum acceptable limits. If the contractor's policy contains higher limits, the state shall be entitled to coverage to the extent of such higher limits. Certificates of Insurance must be furnished to the contracting officer prior to beginning work and must provide for a notice of cancellation, non -renewal, or material change of conditions in accordance with policy provisions. Failure to furnish satisfactory evidence of insurance or lapse ofthe policy is a material breach ofthis contract and shall be grounds for termination ofthe contractor's services. All insurance policies shall comply with and be issued by insurers licensed to transact the business of insurance under AS 21, 2.1 Workers' Compensation Insurance: The Contractor shall provide and maintain, for all employees engaged in work under this contract, coverage as required by AS 23.30.045, and, where applicable, any other statutory obligations including but not limited to Federal U.S.L. & H, and Jones Act requirements. The policy must waive subrogation against the State. 2.2 Commercial General Liability Insurance: covering all business premises and operations used by the Contractor in the performance ofservices under this agreement with minimum coverage limits of $300,000 combined single limit per claim. 2.3 Commercial Automobile Liability Insurance: covering all vehicles used by the Contractor in the performance of services under this agreement with minimum coverage limits of $300,000 combined single limit per claim. 39 DMV COMMISSION AGENT PARTICIPATION AGREEMENT THIS AGREEMENT IS BETWEEN The State of Alaska, Department of Administration, Division of Motor Vehicles, hereafter "DMV" AND CITY OF SEWARD, hereafter "Commission. Agent" LOCATED AT P.O. BOX 167, SEWARD, AK 99664 I. GENERAL PROVISIONS A. Term. 1. This Agreement is for a three-year term and will be in effect from the date signed by both parties until it expires and terminates on June 30, 2024. The Commission Agent may file an application for a new Agreement; in order to be considered by the DMV, the application must be received by D1VIV at least 30 days before the end of the term. If the application is timely received, DMV will approve or deny the application at least 15 days before the end of the term. B. Definitions. In this Agreement, 1. "Commission Agent" means the signatory government agency that is authorized to do all DMV transactions to include Class D, M1, and all commercial class road tests and to receive a commission for those selvices. 2. "Agent Representative" means the Commission Agent staff trained by DMV to conduct DMV transactions and procedures. 3. "Performance Road Test Examiners" means the Commission Agent staff trained by D1bN, or a person designated by DMV to administer Class D non-commercial, M1, and all CDL class A, B, and C. commercial road tests. 4. Class "D" means non-commercial driver's license for passenger vehicles. 5. "M1" means motorcycle driver's license. 6. Class "A," "B," and "C" are all commercial class licenses. 7. "STAR" means Skill Test Appointment and Reporting, a Nveb-based program used to schedule road tests and report results. S. "Contract Services" means the working group at DMV that manages and oversees the Commission Agent Participation Agreements. 9. "Accountable Inventory" means documents owned by the DMV but used by Commission Agent processing DMV transactions for the general public and includes temporary permits, license plates, titles, validation tabs, snow machine/ATV and boat year tabs, and decals. Page 1 of 10 Ato] 10. "ALVIN" means the Alaska License and Vehicle Information Network, the database of the DMV. 11. "VPN" means Virtual Private Network and is the software that allows use of a third -party computer system to bypass the State's firewall to access the DMV's information on ALVIN. 12. "Batch" means all transactions and supporting documentation completed under a Batch Control Number. 13. "Batch Control Number" means a number assigned by ALVIN to designate a data entry batch. 14. "MOVEit" means a web -based application used to safely and securely transmit batch work electronically from the Commission Agent to DNRT. C. Qualifications. A Commissioned Agent must be a government agency within the State of .Alaska. II. RESPONSIBILITIES OF DMV A. Authorization under the DMV Commission Agent Participation Agreement. 1. DMV will permit the Commission Agent to process DIVIV transactions as specified in this Agreement. The authority granted under this Agreement is non -transferable. B. Administration DMV Nvlll: 1. Provide the Commission Agent with accountable documents, and information necessary to issue driver licenses and identification cards; process motor vehicle titles, boat, snow machine/ATVand motor vehicle registrations; and conduct performance road tests. 2. If the Commission Agent has already been provided with start-up equipment necessary to conduct D1VIV transactions (computer, software, printer, camera, barcode scanner, and vision testing device), this equipment is property of the State of Alaska and therefore shall not be used for anything other than what is specified in this Agreement. 3. Provide the Commission Agent's designated employee(%) with initial training to become an Agent Representative and as a prerequisite to the employee(s): issuing and/or processing documents under this Agreement; conducting performance road tests; updating existing information in ALVIN; and performing all other duties and obligations of the Commission Agent under this Agreement. Training should be scheduled 30 days in advance, and DIVIV may provide training sooner than 30 days, depending on availability of trainers. The initial training will include providing each Agent Representative with a unique password for access to ALVIN, instruction to process title and registration transactions, driver licenses and identification cards, knowledge and road skills tests. All travel expenses are the responsibility of the Commission Agent. 4. Provide the Agent Representative(s) with follow-up training as deemed necessary by DMV and/or Commission Agent. Training should be scheduled 30 days in advance, and DMV may provide training sooner than 30 days, depending on availability of trainers. All travel expenses are the responsibility of the Commission Agent. Page 2 of 10 to 5. At DM`V's discretion, DMV may, if requested by the Commission Agent, provide an additional week of one-on-one training at the Commission Agent's location. All travel expenses -,vill be the responsibility of the Commission Agent. This additional training is available after the initial New Hire Training and the follow-up training has been completed. 6. Provide the Commission Agent with access to on-line Standard Operating Procedures (SOP) manual containing written standards relating to processing documents under this agreement. The SOP manual will establish system operations, data reporting, accounting for funds collected, and revenue transmission to the State. The SOP manual will be revised as determined necessary by the DMV. 7. Dlvf\r will provide updates and revisions to the SOP manual via email to the Commission Agent. 8. Evaluate the Commission Agent on a continuing basis to ensure compliance with this Agreement and adherence to state statutes, regulations, and DMV policies and procedures. DMV may conduct on -site audits for the duration of this Agreement. 9. Authorize the Commission Agent, in consideration for the seivices provided above, to retain the following commission from funds collected on behalf of the state: 30% of the fees collected from boat and snow machine/ATV transactions; 30% of the fees collected from motor vehicle transactions, excluding Motor VehicleRegistration Tax and Surety Bond deposits; 50% of the fees collected from driver license and identification card transactions; and 100% of the fees collected from road tests. 10. Authorized commissions shall be retained by the Commission Agent from gross revenues. The remaining balance shall be remitted to D11/1V in accordance with Section III. D. 2. b of this Agreement. III. RESPONSIBILITIES OF THE COMMISSION AGENT 1. Commission Agent will be responsible for having internal procedures that ensure adherence by all Agent Representatives to all requirements necessary to protect the privacy of ALVIN records and preserve the integrity of the ALVIN system, and for maintaining accountability for all documents received and issued by Commission Agent. Responsibilities include adherence to AS 28.10.505, which states in part, notwithstanding AS 40.25300, the department may not disclose personal information contained in motor vehicle records maintained by the department under this chapter. As defined by AS 28.10.505 "personal information" means information that identifies a person, including a name, address, telephone number, and medical or disability information. Commission Agent will also conform to all requirements of AS 45.48 protecting personally identifiable information. As defined by AS 45.48.090 "personal information" includes an individual's first name or first initial; and last name; and one or more of the following information elements: the individual's social security number; the individual's driver's license number or state identification card number; the individual's account number, credit card number, or debit card number; and passwords, personal identification numbers, or other access codes for financial accounts. Page 3 of 10 Elm A. Personnel 1. Designate an Agent Representative who will be responsible for compliance with this Agreement in its entirety. 2. Assure that each Agent Representative is fully trained by DIVIV before that Agent Representative issues and/or processes documents, conducts performance road tests, views or updates existing information in ALVIN, or performs any other duties and obligations of the Commission Agent under this Agreement. Travel expenses for training are the responsibility of the Commission Agent. 3. The training described in A. 2. above will include DIVIV providing each Agent Representative with a unique password for access to ALVIN. Passwords are not transferable and use of a password by anyone other than the person it is assigned to may lead to suspension or termination of the Agreement under Sec IV. 4. assure that Agent Representatives are provided with follow-up training as deemed necessary by DIVIV Contract Services and/or Commission Agent. Travel expenses for training will be the responsibility of the Comrission Agent. 5. Prior to the training of each designated Agent Representative and performance road test examiner, provide satisfactory proof to Contract Service that a criminal background check has been performed on each individual and that he or she has not in the last 10 years been convicted of a felony offense, has not been convicted in the last five years of a misdemeanor offense, and has no past convictions for fraudulent activities. 6. Assure that each Agent Representative and performance road test examiner conducts himself or herself ethically and lawfully and that each individual meets the following minimum requirements: (a) has a valid Alaska driver's license; (b) has three years of driving experience in Alaska; (c) has not in the last three years been convicted of a driving offense that is a six -point offense under the point system established under AS 28.15.221-261; (d) has not accumulated eight points under the point system established under AS 28.15.221-261; (e) has not in the last five years had a driver's license suspended, revoked, canceled or disqualified; (0 is not registered as a sex offender under AS 12.63; and (g) is of good moral character. The Dl\,fV has implemented minimum auditing standards. These minimum standards provide for a consistent and systematic review of DMV's practices, records, and inventory to ensure that all offices are providing consistent service to customers to ensure all transactions are properly accounted for and to ensure accurate record -keeping. It is the responsibility of the Commission Agent to correct errors brought to the attention of a Commission Agent at zero expense to the customer and to provide D?vfV Contract Services with supporting documentation in accordance with DIVIV practices and standards. Unacceptable audit performance ratings may result in suspension of ALVIN access and/or termination of contract. 8. The Commission Agent will notify the Division immediately of the resignation or termination of Agent Representative. B. Protocol 1. Customer Service — DMV is a service organization and Commission Agents and Agent Page 4of10 43 Representatives are required to provide the same level of customer service provided at DMV offices. The Commission Agent is expected to serve all members of the public with courtesy and without discrimination. Responsiveness and courtesy are two important elements of customer service. Listening carefully to customers is essential for providing the excellent customer service that is expected under this Agreement. 2. Dress —Agent Representatives represent the DMV and should therefore dress in away that projects a professional image. Agent representatives are expected to be neat, clean, and presentable at work every day. Political Activity — Political activity in an establishment that processes DlvfV transactions is prohibited. This includes: • displaying or distributing partisan web sites or signs; • sending email messages using a State -sponsored email account; • using any State equipment for partisan purposes; and • wearing political buttons, t-shirts or other partisan paraphernalia. The Commission Agent should consult with Contract Services regarding questions or concerns about prohibited political activity. 4. Violations of State or Federal Law — Any Agent Representative who receives a citation requiring a court appearance or who has been arrested or convicted of a misdemeanor or felony, must report the citation, arrest, or conviction to Contract Services by the end of the following workday. Any Agent Representative who violates a federal or state law or regulation and there is a clear nexus between the offense and the Agent's duties, or if the violation impairs the Agent's ability to perform the duties of this Agreement will have their ALVIN access terminated. C. Operations Maintain a schedule of regular working hours during which services under this Agreement are available to the public. Business hours must be between 7 ,un and 7 P.m. Office must be open a minimum of 20 hours, three days per week, and open a minimum two hours each day. Changes to business days and/or hours may be made no more than once every three months and must be approved in advance by Contract Services. Office closure is permitted a total of three weeks per year but no more than two consecutive weeks, and only one week between May 1 and august 31. Scheduled office closures must be advertised in the community media, signs posted on the office door, and D1v1V Contract Services notified at least two weeks prior to office closure. Unscheduled office closures must be advertised as soon as possible, and DMV Contract Services notified immediately. Contract Services will consider requests from Commission Agent for a modification of this schedule. Prior written approval must be obtained from Contract Services before a modification can be put in place. Public notice must be made of an approved modification of the schedule. 2. The Commission Agent must be connected to the internet for accessing DMV applications, SOPs, and have a dedicated email address for D1ViV-related correspondence only. The internet connection must have adequate bandwidth to support accessing the DNIV systems. D. Financial 1. At the end of each business day the Agent Representative shall take the following actions: a. close the day's batch and record it to an ALVIN office deposit; b. generate in ALVIN a Commission Worksheet and email a copy to DMV Fiscal; the email is Page 5 of 10 44 doa.dmv.fiscal@alaska.gov_ and c. submit batch work documents electronically through _MOVEit application. 2. At the end of the next business day the Agent Representative, no later than 5 p.m., after closing a batch and recording it to an ALVIN office deposit shall: a. deposit into a business bank account all funds collected on behalf of the state for DNIV transactions processed; and b. transfer to DMV the amount due to DMV as specified on the Commission WOTksheet; transfers shall be made through ALVIN CLIENT — DNfVs payment portal, at the state's designated bank. 3. Each quarter from January -December the Agent Representative shall complete a quarterly inventory report within 15 days of the end of each quarter and email it to the DMV Supply Department; the email is doa.drriv-supnl alaska.gov. 4. The Commission Agent is responsible for the cost of participation in the program such as the cost of office space, utilities, the minimum hardware requirements attached, insurance, installation expenses, computer system support, laser printer supplies,copy paper, and on -going telecommunications charges Any additional work station equipment purchase will be fulfilled by and the responsibility of the Commission Agent.. 5. The Commission Agent is responsible for any and all losses or shortages in the proceeds and fees to be collected and for all of its costs of doing business, including without limitation credit card fees, costs of collection of checks received without sufficient funds, other bad debts, taxes, and operating expenses. 6. The Commission Agent shall pay any and all costs incurred by the State of Alaska in enforcing the terms of this Agreement, including but not limited to full reasonable attorney's fees, court costs, pre- judgment and post -judgment interest at the highest rate allowed by law under AS 45.45.01. E. Security 1. The Commission Agent shall not permit any employee to perform any authorized function in ALVIN until the employee has been trained as an Agent Representative and has obtained a unique password in accordance with Section III. A. 2. 2. The Commission Agent shall not permit any unauthorized person to have access to ALVIN or DMY supplies and documents. The Commission Agent shall maintain appropriate security to prevent theft, loss, or destruction of accountable documents and equipment provided by DNIV. The Commission Agent shall, at a minimum, store all such documents and equipment in a secure area. The Conuiussion Agent shall pay DMV the statutorily defined price of the inventory for each missing accountable document. The Commission Agent is responsible for the proper storage and destruction of DMV Batch Work after it has been confirmed received by DMV through the MOVEit application. The Commission Agent shall ensure that all DMV documents, Batch Work, forms, and funds are kept separate from any other business operation the Commission Agent may be conducting. F. Equipment 1. Missing, destroyed, or damaged equipment provided by DMV must be replaced or repaired by the Commission Agent at the Commission Agent's expense. Page 6 of 10 M 2. If the Commissioned Agent leases a SOA computer or other hardware, no computer programs or hardware shall be downloaded or installed on DTvfV's computer unless instructed to do so by Department of Administration Information Technology (DOA -IT) staff. If the equipment fails, the Conunission Agent will notify DNIV Contract Services. DOA -IT personnel will determine the cause of the failure. DOA -IT personnel may require the Commission Agent, at the Commission Agent's expense, to hire a local IT technician to repair the equipment. If it is determined by DOA -IT that the equipment must be repaired or replaced because of misuse, the Commission Agent will be billed for the cost of repair or replacement. Misuse of equipment is cause for immediate termination of this Agreement. Downloading files from the internet can compromise the state mainframe computer and is cause for immediate termination of this Agreement. Commission Agent must adhere to state computer policies, and is prohibited from, but not limited to, engaging in use of non -State- provided messaging technologies, use of file sharing programs, and use of streaming media technologies without prior written approval. (See also, Attachment 4 to this Contract: State of Alaska Computer Use Policies.) Violation of computer use policies will result in the termination of the Agreement. G. Compliance with Laws and Regulations 1. The Commission Agent shall comply with the laws, regulations and SOP manual, as well as any revisions to the manual that govern any services provided under this Agreement. The Commission Agent shall establish procedures to ensure that Agent Representatives comply with the laws, regulations and SOP manual, as well as any revisions to the manual, that govern document processing under this Agreement. No employee or other person who has not been trained as an Agent Representative under the terms of this Agreement may access DMV records or perform any D1VIV services. Any unauthorized access may lead to suspension or termination of the Agreement under Sec IV. Further, in performing services under this Agreement, the Commission Agent and its Agent Representatives must comply with all federal, state, and local statutes, ordinances, regulations, and codes relating to the conduct of business and the operation of business premises, including the Americans with Disabilities Act. H. Insurance 1. The Commission Agent shall either be self -insured or shall purchase the following policies of insurance at its own expense and maintain the policies in force at all times while this agreement is in effect. Where specific limits are shown, they shall be the minimum acceptable limits. Without limiting the Commission Agent's indemnification, the Commission Agent will purchase the following policies of insurance at its own expense, naming the State of Alaska and DMV as additional insureds, and maintain the policies in force at all times while this Agreement is in effect. Where specific limits are shown, they shall be the minimum acceptable limits. If the Commission Agent's policy contains higher limits, the State and DMV shall be entitled to coverage to the extent of the higher limits. Certificates of insurance must be furnished to DIVI T before D1VIV will permit the Commission Agent to perform services under this Agreement, and must contain a 30-day prior notice of cancellation, non -renewal or material change clause. a. Workers' Compensation Insurance: As required by AS 23.30.045, for all employees of the Commission Agent who perform work under this Agreement. b. Comprehensive Automobile Liability insurance: Coverage limits not less than $1,000,000 combinedsingle limit per occurrence, covering all owned, hired and non -owned vehicles used by the Commission Agent in performing services under this Agreement. Page 7 of 10 c. Comprehensive Commercial General Liability insurance: Coverage limits not less than $300,000 combined single limit per occurrence and annual aggregates where generally applicable and shall include premises -operations, broad form property damage, blanket contractual and personal injury endorsements. Notices of insurance policy renewals or cancellations must be mailed, from the insurance company, to: Division of Motor Vehicles Attn: Contract Services 3901 Old Seward Hwy, STE 101 Anchorage, AK 99503 I. Indemnification The Commission Agent shall indemnify, hold harmless, and defend the State of Alaska, DAfCr, and their employees, from and against any claims of, or liability for, the independent negligence or intentional act of the Commission Agent. If there is a claim of, or liability for, the joint negligent error or ornission of the Commission Agent and the independent negligence of the State of Alaska, DMV, or their employees the indemnification and hold harmless obligation shall be apportioned on a comparative fault basis. The term "independent negligence" is negligence other than in DMV's selection, administration, monitoring, or controlling of the Commission Agent and in approving or accepting the Commission Agent's work. IV. TERMINATION OF THIS AGREEMENT A. Suspension 1. DMV may immediately suspend this Agreement by inactivating the Agent DMV Representative's password(s) for up to 30 days to investigate any one or more of the following: suspected or alleged errors in transactions, failure to submit batch work, failure to transmit fees collected to the DMV, failure to maintain required insurance, suspected or alleged criminal misconduct, misuse of ALVIN passwords, and/or compromising the integrity of the ALVIN system. B. Termination 1. Either party may terminate this Agreement upon 30 days written notice to the other party. a. Termination for Cause: DN V may terminate this Agreement by delivering, irr wridug to the Commission Agent, notice of intent to terminate, which clearly sets out the facts that constitute the breach or defect in performance under this Agreement. Termination for cause includes but is not limited to: (a) violation of a provision of this Agreement, (b) failure to follow DMV's written standards, statutes, regulations, policies and procedures. Termination for cause is effective if the breach or defect is not cured within 30 days from the date the notice of the breach was received by the Commission Agent unless a greater time to cure is allowed. b. Termination for Convenience: DMV, by written notice to the Commission Agent, may terminate this Agreement, in whole or in part, when it is in the best interest of the State. Paae 8 of 10 47 c. Termination for Illegal Activity: D1VN may terminate or suspend this Agreement immediately if there is reasonable cause that the Commission Agent or their employee is engaged in illegal activities. 2. Upon termination, the Commission agent: a. cannot recover any costs or damages arising from its participation in, or termination from, the Commission Agent Program, including set-up costs, lost profits or consequential or other damages; b. must immediately transfer to DMV all outstanding proceeds from DML V transactions, less commissions retained per Section III.C.2; and c. shall mail to DMV, within one business day, all DMV accountable items, SOA equipment, and all remaining DMVtransaction documents. 3. Unless a new application for a DMV Commission Agent Participation Agreement is timely received and approved as provided in Sec. I. A., this Agreement expires and terminates at the end of the end of the three-year term. Applications may be obtained by request via email at doa.dmv.cs&alaska.gov, phone at 907-269-5575 or by mail at State of Alaska DMV, 3901 Old Seward Hwy, Ste 101, Anchorage, AK 99503. 4. Notices and communications required to be submitted to the DMV shall be in writing and sent via email to doa.dmv.cs t&alaska.gov and/or mailed tothe following address: Division of Motor Vehicles Attn: Contract Services 3901 Old Seward. Hwy, Ste 101 Anchorage, AID 99503 Notices and communications submitted by the DMV to the Comrission Agent shall be made ii1 writing and sent I'm ernaiJ to the email address on record for the Comtriss'o. Ac�c l iCs primari T contact or contract designee. Notices shall be deemed effective at the earlier of receipt or within three days of being placed in the U.S. mail, postage pre -paid. C. Disputes The parties agree that the Trial Court- 4 diu _ate of Alaska shall have jurisdiction over any dispute arising from or relating to this 11 parties agree that venue shallbe in the Judicial District in which the Commission :gent is loc:ur , If the Cnminission Agent has locations in more than one Judicial District, venue shall lac in die Thad judicial District at Anchorage. D. Section Headings 1. All sections and descriptive headings in this Agreement are inserted for convenience only, and shall not affect the construction or interpretation of this Agreement. Page 9 of 10 48 IV. ENTIRE AGREEMENT A. Integration and Amendment 1. This Agreement contains the entire Agreement of the parties. There are no other agreements, express or implied, oral or written, between the parties on the subjects encompassed by this Agreement. This Agreement may only be amended by a written addendum to this Agreement signed by both parties. B. Effective Date 1. This Agreement shall be effective when executed by both parties. IN WITNESS WHEREOF, the parties have executed this Contract as follows. DATED this /' day of �// , 20;,t-' CITY OF SEWARD By: Printed Name:.�!/�'ti DATED this day of , 20_. State of Alaska, Department of Administration Division of Motor Vehicles By: (mot/ enna Wright, Dep ty Director, Signed 5/10/21 Printed Name: Its: Its: Page 10 of 10 49 Resolution 2021-097 Documents: • Agenda Statement • Resolution 2021-097 • Attachments: o DPS Contract FY22 611 City Council Agenda Statement Meeting Date: September 13, 2021 To: City Council Through: Janette Bower, City Manager From: Alan Nickell, Chief of Police Agenda Item: Resolution 2021-097: Authorizing the City Manager to Enter into a Contract with the Alaska Department of Public Safety to Provide Basic Clerical Services, Parking, and Access to the Datamaster Instrument for the Alaska State Troopers Background and justification: For decades, the City of Seward has entered into an agreement to provide dispatch and clerical services, parking and Datamaster instrument access to the Alaska State Troopers and Fish and Wildlife Protection Officers in the Seward Community. The amount of compensation for the contract is $36,000, and the attached extension would continue services through June 30, 2022. Consistency checklist: Comprehensive Plan: (Page 14) Public Safety Strategic Plan: (Page 18) Promote a Safe Community Other: N/A Fiscal note: Upon approval of this contract, the 2022 budget will include $36,000 in dispatch contract revenue account 01000-1210-4203. Finance Department approval: 4 Attorney Review: Yes ❑ No F Not applicable ❑ Recommendation City Council approve Resolution 2021-097. 61 Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2021-097 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Enter into a Contract with the Alaska Department of Public Safety to Provide Basic Clerical Services, Parking, and Access to the Datamaster Instrument for the Alaska State Troopers WHEREAS, the City of Seward has entered into a contract with the Department of Public Safety for decades; and WHEREAS, the services provided include basic dispatch and clerical services, parking, and access to the Datamaster device in the jail; and WHEREAS, this agreement proposes the amount of compensation for services consistent with the previous agreement at $36,000; and WHEREAS, the attached contract would continue services through June 30, 2022. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The city manager is hereby authorized to enter into the contract with the Department of Public Safety to provide services to State of Alaska Public Safety employees in the Seward area for $36,000. Section 2 This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 2021 AYES: NOES: ABSENT: ABSTAIN: THE CITY OF SEWARD, ALASKA Christy Terry, Mayor 6% ALASKA DEPARTMENT OF PUBLIC SAFETY CONTRACT FOR SPECIAL SERVICES July 1, 2021 to June 30, 2022 GENERAL PROVISIONS The parties. The parties to this contract are the Alaska Department of Public Safety (hereinafter referred to as the "Department") and the City of Seward (hereinafter referred to as the "City"). Sole Agreement. The City and the Department undertake this contract under the terms set forth below. This contract is the sole agreement between the parties relating to special services, and there are no other agreements, express or implied. Effective Date/Termination/Amendments. This contract is effective July 1, 2021 and continues in force until June 30, 2022. Either party may terminate the agreement with thirty (30) days written notice to the other party. This agreement may be amended by written agreement of the parties. The Department will pay the City for services provided in accordance with, and under the terms of, this contract. Payments will be made quarterly in the amount of $9,000.00, for a total of $36,000.00. Payment for services provided under this contract will be made in four payments in the amount of and covering the period indicated below: Period Covered Amount Payment Process Can Be Initiated 07/01/21 - 09/30/21 $9,000.00 10/01/21 10/01/21 - 12/31/21 $9,000.00 01/01/22 01/01/22 - 03/31/22 $9,000.00 04/01/22 04/01/22 - 06/30/22----t- $9,000.00 06/01/22 12 Month Total $36,000.00 2. The City will provide and perform the services specified in this contract to the satisfaction of the Department, in support of Department personnel and operations. Page I of 2 53 ALASKA DEPARTMENT OF PUBLIC SAFETY CONTRACT FOR SPECIAL SERVICES July 1, 2021 to June 30, 2022 SPECIFIC PROVISIONS 1. The City will: a. Permit continued access to and utilization of the Data Master. Continue to provide parking for state vehicles. b. Permit continued transport and security of prisoners from the Seward City Jail to Seward Court for hearings and arraignments. IN WITNESS OF THIS AGREEMENT, the undersigned duly authorized officers have subscribed their names on behalf of the City and the Department respectively. For the City of Seward: Printed Name Official Title 014 e8'f( , Date y - 1 �- 0119- For the Department of Public Safety: By.� Printed Name James Cockrell Official Title Commissioner Date 5/3/2021 Page 2 of 2 54 Resolution 2021-098 Documents: • Agenda Statement • Resolution 2021-098 • Attachments: o City of Seward Portable Toilet Service Contract 611 City Council Agenda Statement Meeting Date: September 13, 2021 To: City Council Through: Janette Bower, City Manager From: Tyler Florence, Parks & Recreation Director Agenda Item: Resolution 2021-098: Approving a Change Order to the Purchase Order for Portable Toilet Services to Account for Additional Servicing During Peak Season in the Amount Of $30,905 and Appropriating Funds Background and justification: Parks & Recreation has historically contracted out for portable toilet services in order to meet the public demand for restroom facilities in City parks and campgrounds, especially during the high - traffic summer season. Service locations include First Lake, the Jon Perry Ball Field, and the campgrounds, e.g., Spring Creek, Harborside, Resurrection, and Williams. Contracted services include seasonal unit rentals and servicing to meet baseline demand, as well as on -call unit rentals and servicing to meet surges in visitor traffic as needed. Resolution 2021-042 authorized the City to enter into a contract with Resurrection Rental to provide said services. Per the agreed upon bid price, additional toilet rentals and service visits were requested and delivered to meet user demand during the peak summer season. A change order to the existing purchase order in the amount of $30,905 is required to cover the cost of these additional services. Consistency checklist: Comprehensive Plan: Chapter 3.6.1.1 Improve existing and develop additional recreational infrastructure. Strategic Plan: Recreation and Leisure - Provide diverse, year-round, indoor and outdoor recreation facilities. Other: N/A Fiscal note: Funding is from: General Fund unassigned fund balance 01000-0000-3400. Finance Department approval: ` a Attorney Review: Yes ❑ No F Not applicable ❑ Recommendation 611 City Council approve Resolution 2021-098. 57 Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2021-098 A Resolution of the City Council of the City of Seward, Alaska, Approving a Change Order to the Purchase Order for Portable Toilet Services to Account for Additional Servicing During Peak Season in The Amount Of $30,905 and Appropriating Funds WHEREAS, the City of Seward has a contract with Resurrection Rental to provide portable toilet rentals & services; and WHEREAS, additional toilet rentals and service visits were requested and delivered at the agreed upon bid price to meet user demand during the peak summer season; and WHEREAS, a change order to the existing purchase order in the amount of $30,905 is required to cover the cost of these additional services. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THAT: Section 1. Approve a change order to the purchase order for portable toilet services to account for additional servicing during peak season in the amount of $30,905. Section 2. Funding in the amount of $30,905 is hereby appropriated from General Fund unassigned fund balance account 01000-0000-3400 to contracted services account 01000-1411- 7009. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13rh day of September, 2021. AYES: NOES: ABSENT: ABSTAIN: THE CITY OF SEWARD, ALASKA Christy Terry, Mayor 58 CONTRACT CITY OF SEWARD, ALASKA PORTABLE TO]LET RENTAL" & SERVICE CONTRACT ("Contract"), between the City of Seward, Alaska, herein called the City, acting by and through its City Manager, and upon signing; this document shall serve as the notice to proceed, and NJ Company Name Company Address (Street or PO Box, City, State, Zip) atan Individual Partnership Joint Venture Sole Proprietorship Corporation E. incorporated under the laws of the State of Alaska, its successors and assigns, herein called the Contractor, is effective the date of the signature of the City Manager on this document. The Contractor, for and in consideration of the payment or payments herein specified and agreed to by the City, hereby covenants and agrees to furnish and deliver all the materials and to do and perform all the work and labor required per the terms specified in the Portable Toilet Rental & Service bid packet as bid by the Contractor with bid and prices named below. It is distinctly understood and agreed that no claim for additional work or materials, done or furnished by the Contractor and not specifically herein provided for, will be allowed by the City, nor shall the Contractor do any work or furnish any material not covered by this Contract, unless such work or materials is ordered in writing by the City. In no event shall the City be liable for any materials furnished or used, or for any work or labor done, unless the materials, work, or labor are required by the Contract or on written order furnished by the City. Any such work or materials which may be done or furnished by the Contractor without written order first being given shall be at the Contractor's own risk, cost, and expense and the Contractor hereby covenants and agrees to make no claim for compensation for work or materials done or furnished without such written order. The Contractor further covenants and agrees that ail materials shall be furnished and delivered and all work and labor shall be done and performed, in every respect, to the satisfaction of the City, on or before; March 31. 2022 or within 14 calendar days following the date of notice to proceed. It is expressly understood and agreed that in case of the failure on the part of the Contractor, for any reason, except with the written consent of the City, to complete the furnishing and delivery of materials and the doing and performance of the work before the aforesaid date, the City shall have the right to deduct from any money due or which may become due the Contractor. The Contractor further covenants and agrees that the ail services will be done under the administration of and to the complete satisfaction of the City subject to the inspection at all times and approval by any regulatory agency of the Local, State, or Federal Government of the United States of America, and in accordance with the laws of the State of Alaska and the City of Seward. For purposes of this Contract, Contracting Officer means Adam Sayler or any other person designated by the City Manager. The Contractor is an independent contractor and not an employee or agent of the City. City of Seward Portable Toilet Rental & Service CONTRACT 6Td Page Z of 3 Payment for services under this Contract shall be made in accordance with the following bid schedule; All shipping, delivery, and fuel charges must be included in the bid price. The City will pay no additional shipping, delivery, and fuel charges. CATEGORY A — PORTABLE TOILET RENTAL & SERVICING Item Unit Type Quantity Bid Price for Summer Season (Apr. 1 — Sept. 31l 1. Standard unit serviced twice per week 13 $37,752 2. ADA accessible unit serviced twice per week) 1 $3.630 CATEGORY B —SERVICING OF CITY -OWNED PORTABLE TOILETS Item Service Frequency Quantity Bid Price for Winter Season Oct. 1 - Mar. 31 1. Serviced once per week 1 $55 CATEGORY C — ADDITIONAL (NON-SCHEDULED) UNIT RENTAL & SERVICING Item Unit Type Bid Price Per Unit 1. 2. Standard unit serviced twice per week ADA accessible unit serviced twiceper week $200 f er week $200 f er week 3. Additional non-scheduled service $50 f er visit CATEGORY D — DELIVERY TERMS (TIME REQUIRED FOR DELIVERY AFTER RECEIPT OF ORDER) Item Service Bid 1. Additional non-scheduled unit rental "Same day service to be provided when contractor is notified before 4:00 PM, 2. Additional non-scheduled service "Same day service to be provided when contractor is notified before 5:00 PM, Monday — Saturday. 'The City shall notify the Contractor of the need for additional non-scheduled services using the following contact methods: 7 -- c � - i yG c:' Contractor Phone Number / 1 0 q / Y Lam"+ l 4 L✓' [� Contractor Email City of Seward Portable Toilet Rental & Service CONTRACT Page 2 of 3 60 IN WITNESS WHEREOF the parties hereto have executed this Contract and agree to as terms and conditions. CONTRACTOR �tee�-j �7� C❑rnpany Name _ _ gnaturd offAuthor¢ed Company Representative Name and Title Yi 4, Date CITY OF SEWARD I Signature of City Ma at Name Date CVClerk Act y (ATTEST) C'- *Y C 1 N lC �r C� •i .rpma.eu0r���f.�tia A M r f� �a�aaaadsM n w+�°1�� City Of Seward Portable Toilet Dental & Service CONTRACT Page 3 of 3 61 Resolution 2021-099 Documents: • Agenda Statement • Resolution 2021-099 • Attachments: o Bid Package from McKinley Fence Company o Photos of Existing Fence City Council Agenda Statement Meeting Date: September 13, 2021 To: City Council Through: Janette Bower, City Manager From: Rob Montgomery, Electric Utility Manager Agenda Item: Resolution 2021-099: Authorizing the City Manager to Enter into a Contract with McKinley Fence Company in the Amount of $98,489 to Tear Down the Existing Security Fence around the Fort Raymond Substation and Replace with a Stronger and Taller Security Fence to Improve Public Safety and Security Background and justification: There is currently 1,235 feet of chain -link security fencing around the Fort Raymond Substation. While a small section of the fence was rebuilt in 2009, there remains nearly 800 feet that is in poor and deteriorating condition, creating a legitimate safety and security risk because of the ease of access into substation. This ease of access is of particular concern since the Fort Raymond Substation is in a residential area with schools, ball fields and other recreational areas nearby. In some sections, the 7-foot fence is leaning so badly that ease of access into the substation is a serious concern. In fact, in recent years, copper wire was stolen from within the substation, and in another incident, a moose was found inside before being chased out by crews. The substation fence in its current condition is unacceptable since it seriously compromises public safety and service reliability. Consistency checklist: Comprehensive Plan: N/A Fiscal note: Funding from: Electric Fund Reserves account no. 15000-0-3400 Finance Department approval: C'��44 Attorne Review: Yes No Not applicable Recommendation City Council approve Resolution 2021-099. 63 Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2021-099 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Enter into a Contract with McKinley Fence Company in the Amount of $98,489 to Tear Down the Existing Security Fence around the Fort Raymond Substation and Replace with a Stronger and Taller Security Fence to Improve Public Safety and Security WHEREAS, nearly 800 feet of the 1,235-foot chain -link fence is only 7 feet tall and is shorter than the newer, 11-foot section of fence constructed in 2009; and WHEREAS, the existing 7-foot fencing is in poor condition and is leaning significantly in some areas, making access easier than acceptable; and WHEREAS, the substation is located in a residential neighborhood with schools, ballfields and other recreational areas nearby; and WHEREAS, copper wire was stolen from the substation in 2019; and WHEREAS, the new fence will be built to industry specifications to help ensure public safety and security. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to enter into a contract with McKinley Fence Company in an amount of $98,489 to remove the existing 7-foot security fence and install a new fence at least 10-foot in height to improve public safety and security. Section 2. Funding in the amount of $98,489 is hereby appropriated from Electric Unassigned Fund Balance account no. 15000-0000-3400 to Improvements other than Buildings account no. 15000-3000-8105. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of September 2021. 64 �. -= ALASKA'S OLDEST FENCE COMPANY Phone (907) 357-3731 1220 WEST MYSTERY AVE. Fax (907) 357-3723 Chain Link Fences * Guardrails * Wood Fences WASILLA, AK. 99654 LETTER OF TRANSMITTAL Attn: Janet Bower City Manager McKinley Fence Company hereby accepts the terms of the conditions of this RFP and shall work in coordination with Seward Electric to provide a secured and established security fence for the Fort Raymond Substation. McKinley Fence Company stands by our workmanship and service throughout the State of Alaska in providing customers with the satisfaction in knowing that their fence has been installed to the highest quality. McKinley Fence Company has been serving the State of Alaska for over 60 years on many platforms and facilities from Military, Department of Transportations, Municipality, Department of Corrections, and Utilities inclusive of substation enclosures. Throughout these years, we have grown to be recognized for our dependency, efficiency, and professionalism. As a company we stand by our workmanship, knowledge, and experience in providing secure and lasting products that customers can feel confident and secure in their investment. Throughout the years we have installed several types of fences around substations across the state to ensure a lasting product for the Fort Raymond Substation, McKinley Fence will safely remove the existing unsecured fence and replace it with a 1Oft security fence with barbwire and razor ribbon at or above industry standards to provide a secured area for the City of Seward and Seward Electric. We look forward for to your consideration and possible partnership to provide our services to give all of you peace of mind in a secured fence for the Fort Raymond Substation for many years to come. Sincerely, AZ Coleman Project Manager 65 �. -= ALASKA'S OLDEST FENCE COMPANY Phone (907) 357-3731 1220 WEST MYSTERY AVE. Fax (907) 357-3723 Chain Link Fences * Guardrails * Wood Fences WASILLA, AK. 99654 PREVIOUS CLIENTS / REFERENCES Below you will find our previous clients / projects that pertain in similarity in scope as your RFP. Additional information available upon request. SOUTH CENTRAL POWER PLANT (CHUGACH ELECTRIC) - 2013 Contractor: SNC-Lavalin JOHN SHAW SUBSTATION — 2014 Contractor: Alaska Line Builders HANE SUBSTATION — 2015 Contractor: Alaska Line Builders CLEAR LONG RANGE DISCRIMINATION RADAR (POWER PLANT) — 2017 Contractor: UNIT Company / USAF DOUGLAS SUBSTATION — 2017 Contractor: Alaska Line Builders CHUGACH ELECTRIC BELUGA POINT FACILITY FENCE UPGRADES — 2017 / 2018 Contractor: Chugach Electric DEBARR SUBSTATION — 2018 Contractor: Electric Power Contractors SUBSTATION 8 — 2019 Contractor: ML&P / Alaska Line Builders �. -= ALASKA'S OLDEST FENCE COMPANY Phone (907) 357-3731 1220 WEST MYSTERY AVE. Fax (907) 357-3723 Chain Link Fences * Guardrails * Wood Fences WASILLA, AK. 99654 STAFF PLAN McKinley Fence Company currently has over 20 employees with offices in Anchorage and Wasilla Alaska. I, Al Coleman will personally serve as the coordinator and project manager to ensure this project is completed in an efficient and timely manner with the help and coordination with Seward Electric. I, along with the owner Jason Lindstrom, will be the points of contact with the assistance of our lead foremen selected to manage our boots on the ground. If plans and costs can be agreed upon in short order, McKinley Fence will ensure all work is completed within this construction season. SERVICE PLAN (See Attached Submittal Sheets for Review) 1.) Mobilize and coordinate with Seward Electric for planned activities and final layout 2.) Remove and dispose of existing fence with preparation of new fence. 3.) Layout, excavate, and set new fence posts as directed at proper depth and grade. 4.) Properly frame and stretch new fence fabric, barbwire, and razor wire to industry standards. 5.) Clean area and demobilize upon final approval from City of Seward. SERVICES EXPECTED OF THE CITY Provide applicable permits to erect the new 1 Oft + fence upon McKinley's application and acceptance. FEE PROPOSAL All fees and expenses for materials, labor, and travel are covered in our proposal costs. Any changes and or additions to better increase the quality, efficiency, or accessibility to be negotiated with the City of Seward if needed. 67 �. -= ALASKA'S OLDEST FENCE COMPANY Phone (907) 357-3731 1220 WEST MYSTERY AVE. Fax (907) 357-3723 Chain Link Fences * Guardrails * Wood Fences WASILLA, AK. 99654 PROPOSAL 8/25/2021 To: City of Seward Re: Fort Raymond Substation Subject: Our Bid for the Above Referenced Project Scope of Work: 1.) Remove and dispose of approx. 800LF of 7ft to 8ft existing chain link fence in preparation of new fence. 2.) Furnish and install approx. 800LF of 1Oft 9-gauge commercial chain link fence + 3 strands of barbwire inclusive of 18" coil razor ribbon. Quote will not include any gates, specialty panels, or isolation panels / hardware at this time. MATERIALS: 1Oft 9-gauge galvanized chain link fabric 1 5/8" Galvanized 40wt Top and Middle Rail 2 7/8" Galvanized 40wt Line Posts 4" Galvanized 40wt Terminal Posts 7-gauge Galvanized Tension Wire 4pt 12-gauge Galvanized barbwire 18" Galy / Galy Coil Razor Ribbon LUMP SUM: $98,489.00 EXCLUSIONS: Survey, staking, grading, clearing, permits, testing, grounding, SWPPP, all dirt work to include trenching / backfill / compaction / removal of spoils, winter work, landscape / asphalt / concrete repair, ground grid repair, owner supplied utility locates, pot holing for locates, digging in / excavation of boulders / bedrock, rock drilling, safety watch, bollards, signs, and bond. Sincerely, A/ Coleman Project Manager 68 2865 W Seafront Drive Wasilla, AK. 99654 907-892-3500 (tel) 907-892-3506 (fax) January 06, 2021 ANC Certificate of Compliance GBW 2" mesh chain link fence fabric manufactured by TMCAlaska, Inc. meets the following specification: Chain Link Fence Fabric 9ga (0.148) and 11 ga (.120) ASTM Spec. - A-392 Class 1 (1.2 oz. zinc coating) & Class II (2.0 oz zinc coating) Fed. Spec. - RR-F-191/1D AASHTO Spec. - M-181 Weaving Wire 9ga (0.148) ASTM Spec. - A-817 Type II (hot -dipped zinc coated galvanizing) Chain link fence manufactured by TMCAlaska, Inc. meets DOT specifications for the following states: California — Caltrans Washington — WSDOT Oregon — ODOT Idaho - IDOT Alaska — Alaska DOT This material has been produced to the best industry practices and in all respects complies with industry standards. Manufactured in Alaska, U.S.A. Jason W. Chew President TMCAlaska, Inc. MADE jN ALASKA High -strength Spec Fence Framework The strength and corrosion characteristics of Wheatland WT-40 fence pipe have been tested, documented and certified by independent testing agencies to ensure complete compliance with ASTM F1043, Group IC, and AASHTO M181. Wheatland WT-40 fence framework meets or exceeds the most demanding specifications and codes imposed by private, independent and government agencies. Wheatland WT-40 fence framework offers protection against corrosion and white rust. 90% zinc -rich interior coating Cold -rolled, high -strength steel provides a minimum yield strength of 50,000 psi Continuous 1.0 oz/ftz +/- 0.1 oz/ftz hot -dip galvanized coating Intermediate conversion coating inhibits white rust Clear polymer coating seals in protection, and provides a smooth, lustrous finish Materials 1. Steel —Steel strip used in the manufacture of Wheatland WT-40 fence pipe shall conform to ASTM A1011 and will meet or exceed all performance criteria set forth in this standard specification. 2. Zinc —Zinc used in Wheatland WT-40 fence pipe shall conform to ASTM B6. Galvanizing shall be continuous hot -dipped on OD. 3. Conversion Coating —An intermediate conversion coating shall be applied in -line over the continuous hot -dip galvanizing coating to inhibit white rust and enhance corrosion resistance. 4. Clear Polymer Coating —A clear polymer coating shall be applied over the intermediate conversion coating. This polymer coating provides a smooth, lustrous protective finish. S. Heat -set Internal Coating —A heat -set zinc -rich ID coating shall have a minimum zinc loading of 90%. Weight of Coatings 1. Zinc —Weight of zinc shall be 1.0 oz./ft.2 +/- 0.1 oz./ft.2 and shall be determined by the method described in ASTM A90. 2. Intermediate Coating —Intermediate conversion coatings shall be 30 micrograms/in.2 +/- 10 micrograms/in.2 and shall be determined by a strip and weigh method utilizing an atomic absorption spectrophotometer or X-ray fluorescence spectrograph. 3. Polymer Coating —Thickness of the clear polymer coating shall be .5 mils +/- 0.2 mils and shall be determined by measurement with a suitable magnetic or eddy current coating thickness tester. Strength Characteristics 1. Load Strength —The strength of line, end, corner and pull posts shall be determined by the use of 4' or 6' cantilevered bend test. The top rail shall be determined by a 10' free -supported beam test. 2. Bending Moment —Pipe strength may be determined via the alternative method of calculating bending moment. (See table.) Conformance can be demonstrated by measuring the yield strength multiplied by the section modulus. The yield strength shall be determined according to the methods described in ASTM E8. For materials under this specification, the 0.2 offset method shall be used in determining yield strength. 70 Corrosion Resistance 1. Salt Spray a. Exterior Surface -The exterior clear polymer coating shall have a demonstrated ability to resist 1,000 hours or more of exposure to salt fog with a maximum of 5% red rust. Tests shall be conducted in accordance with ASTM B117. b. Interior Surface -The interior zinc -rich surface coating shall withstand no less than 650 hours of exposure to salt fog with a maximum of 5% red rust. Tests shall be conducted in accordance with ASTM B117. 2. Humidity -The exterior clear polymer coating of Wheatland WT-40 fence pipe shall resist 500 hours of exposure to 100% relative humidity without signs of blistering or peeling. Tests shall be performed in accordance with ASTM D4585 (D2247). 3. Weatherometer- The clear polymer coating of Wheatland WT-40 fence pipe shall resist failure for no less than 500 hours at a black panel temperature of no less than 145° F. Tests shall be performed in accordance with ASTM G155 Xenon Type BH apparatus (formerly G26) or ASTM G153 Carbon ArcType HH apparatus (formerly G23). Specifying Agencies • American Association of State Highway and Transportation Officials (AASHTO) M181, Grade 2 • Federal specifications RR-F-191/2E and RR-F-191/3E • U.S. Army Corps of Engineers UFGS-32 3113 • Department of the Navy • Federal Highway Administration • Federal Aviation Administration AC 150/5370-10 Item 162 • U.S. Department of Justice -Federal Bureau of Prisons • ASTM Specification F1043 Group IC Standard Specification for Strength and Protective Coatings on Steel Industrial Chain Link Fence Framework • American Institute of Architects (AIA) MasterSpec" Availability Wheatland Tube is committed to a full complement of finished inventory. Our high-speed material -handling capabilities enable us to react to special length requests with exceptional order fill rates. WT-40 DIMENSIONS AND STRENGTH CHARACTERISTICS MAX. FENCE DECIMAL OD PIPE WALL SECTION MIN. YIELD BENDING INDUSTRY EQUIVALENT THICKNESS WEIGHT MODULUS X STRENGTH = MOMENT CALCULATED LOAD (LBS.) Cantilever 10' Free OD in. (mm) in. (MM) lb./ft. (kg/m) in? (mm3) x psi (MPa) = lb./in. Supported 4' 6' is/all 1.660 42.16 0.111 2.82 1.84 2.74 0.1962 4.98 x 50000 345 at 9810 327 204 136 17/8" 1.900 48.26 0.120 3.05 2.28 3.39 0.2810 7.14 x 50000 345 = 14050 468 293 195 23/e" 2.375 60.33 0.130 3.30 3.12 4.64 0.4881 12.40 x 50000 345 - 24405 814 508 339 _ '2.875 73.03 T0.160 4.0 = W 0.8M V10 x 50000 34l = 43890 1463 914 610 3'/2 3.500 88.90 0.160 4.06 5.71 8.50 1.3408 34.06 x 50000 345 - 67042 2235 1397 931 - A.QQ& 'n� 0.151 = = Q.JL 1.7820 45.26 W 50000, wilJi a 89098 2970 1856 1237 6%" and 8%" full -weight Schedule 40 perASTM F1083 is available for terminal post applications. Specifications, illustrated material and descriptions are accurate as known at time of publication and are subject to change without notice. PROJECT: CONTRACTOR: DATE: Fort Raymond Substation Security Fence Installation McKinley Fence Co of Mat -Su Valley, Inc. 8/25/2021 ENGINEER: LOCATIONS: SPECIFICATION REFERENCE: COMMENTS: SYSTEM TYPE: VI e W2aie dlEa 4435 S. Western Boulevard 2001 East Dominguez Street info@wheatland.com Chicago, IL 60609 Long Beach, CA 90810 wheab-apd.com tMMeatiandTube P 800.257.8182 P 800.257.8182 Follow us on Twitter: A DIVISION OF ZEKELMAN INDUSTRIES F 724.346.7260 F 724.346.7260 @WheatlandTube Alaska Business License# 94559 Alaska Department of Commerce, Community, and Economic Development Division of Corporations, Business, and Professional Licensing PO Box 110806, Juneau, AK 99811-0806 This is to certify that MT. MCKINLEY FENCE COMPANY OF MAT-SU VALLEY PO BOX 870889, WASILLA, AK 99687 owned by MT. MCKINLEY FENCE COMPANY OF MAT-SU VALLEY is licensed by the department to conduct business for the period November 9, 2020 to December 31, 2022 for the following line(s) of business: 23 - Construction This license shall not be taken as permission to do business in the state without having complied with the other requirements of the laws of the State or of the United States. This license must be posted in a conspicuous place at the business location. It is not transferable or assignable. Julie Anderson Commissioner - __ 72 - - - License /202 V5120235656 State of Alaska Effecllvel/S1 Expires: 1213112022 Department of Commerce, Community,. and Economic Development Division of Corporations, Business, and Professional Licensing Regulation of Construction Contractors and Home Inspectors Licensee: MT. MCKINLEY FENCE COMPANY OF MAT-SU VALLEY License Type: General Contractor Without Residential Contractor Endorsement Status: Active Doing Business As: MT. MCKINLEY FENCE COMPANY OF MAT-SU VALLEY Commissioner: Julie Anderson 73 Request for Taxpayer Give Form to the Form Identification Number and Certification requester. Do not (Rev. October2018) Department of the Treasury send to the IRS. Internal Revenue Service ► Go to www.irs.gov/FormW9 for instructions and the latest information. 1 Name (as shown on your income tax return). Name is required on this line; do not leave this line blank. 2 Business name/disregarded entity name, if different from above M �p 3 Check appropriate box for federal tax classification of the person whose name is entered on line 1. Check only one of the Y 4 Exemptions codes apply only to p� ( pp Y Y m following seven boxes. certain entities, not individuals; see c- instructions on page 3): o ❑ Individual/sole proprietor or ElC Corporation ElS Corporation ElPartnership ElTrust/estate w ai c single -member LLC Exempt payee code (if any) a o ❑ Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=Partnership) ► p +7i. Note: Check the appropriate box in the line above for the tax classification of the single -member owner. Do not check Exemption from FATCA reporting w LLC if the LLC is classified as a single -member LLC that is disregarded from the owner unless the owner of the LLC is code (if any) another LLC that is not disregarded from the owner for U.S. federal tax purposes. Otherwise, a single -member LLC that IL is disregarded from the owner should check the appropriate box for the tax classification of its owner. y ❑Other (see instructions) ► (Applies to accounts maintained outside the U.S.) y 5 Address (number, street, and apt. or suite no.) See instructions. Requester's name and address (optional) U) 6 City, state, and ZIP code 7 List account number(s) here (optional) Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid Social security number backup withholding. For individuals, this is generally your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the instructions for Part I, later. For other - TU entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN, later. or Note: If the account is in more than one name, see the instructions for line 1. Also see What Name and I Employer identification number Number To Give the Requester for guidelines on whose number to enter. F—T-1 PAMMM s "M". "�; Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and 2. 1 am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and 3. 1 am a U.S. citizen or other U.S. person (defined below); and 4. The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct. Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions for Part II, later. Sign Signature of Here U.S. person ► 4 Date ► 8/25/2021 General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Future developments. For the latest information about developments related to Form W-9 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/F`ormW9. Purpose of Form An individual or entity (Form W-9 requester) who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) which may be your social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN), to report on an information return the amount paid to you, or other amount reportable on an information return. Examples of information returns include, but are not limited to, the following. • Form 1099-INT (interest earned or paid) • Form 1099-DIV (dividends, including those from stocks or mutual funds) • Form 1099-MISC (various types of income, prizes, awards, or gross proceeds) • Form 1099-B (stock or mutual fund sales and certain other transactions by brokers) • Form 1099-S (proceeds from real estate transactions) • Form 1099-K (merchant card and third party network transactions) • Form 1098 (home mortgage interest), 1098-E (student loan interest), 1098-T (tuition) • Form 1099-C (canceled debt) • Form 1099-A (acquisition or abandonment of secured property) Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN. If you do not return Form W-9 to the requester with a TIN, you might be subject to backup withholding. See What is backup withholding, later. Cat. No. 10231X 74 Form W-9 (Rev. 10-2018) FAIIt _EMPLOYMENT PRACTICES FOR QUAIMCATIONS OF BIDDERS CITY OF SEWARD, ALASKA THIS QUESTIONNAIRE ON FAIR EMPLOYMENT PRACTICES FOR THE QUALIFICATIONS OF BIDDERS IS PART OF THIS BID DOCUMENT AND MUST BE RETURNED WITH YOUR BID ._ FAILURE TO COMPLETE THIS FORM MAY BE SUFFICIENT CAUSE FOR REJECTION OF YOUR BID. IT WILL BE NECESSARY TO SUBMIT THIS FORM ON AN ANNUAL BASIS IN ORDER FOR THE CITY TO MAINTAIN AND UP-TO-DATE FILE ON YOUR PROGRESS IN EQUAL OPPORTUNITY EMPLOYMENT. AS REQUIRED BY FEDERAL AND STATE LAWS AND REGULATIONS, THE CITY MAY REQUEST ADDITIONAL EQUAL EMPLOYMENT OPPORTUNITY INFORMATION FROM YOU. "FAIR" OR "EQUAL EMPLOYMENT" MEANS THE PRACTICE OF NOT DISCRINIINATING AMONG PERSONS ON THE BASIS OF RACE, COLOR, SEX, NATIONAL ORIGIN OR AGE. THIS QUESTIONNAIRE WILL BE EVALUATED BY THE PURCHASING AGENT AND HIS RECOMMENDATIONS WILL BE A FACTOR IN DETERMIlVING WHETHER YOUR FIRM IS TO BE RETAINED ON THE CITY'S BID LIST. SECTION PLEASE ANSWER ALL THE FOLLOWING QUESTIONS: A NAME OF FIRM McKinley Fence Comfy of Mat -Su Vallt-y, lnr.,_ ADDRESS 1220 W Mystery Ave. Wasilla, AK. 99654 TELEPHONE NUMBER 907-357-3731 NATURE OF BUSINESS Fence and Guardrail NUMBER OF FULL TIME EMPLOYEES 20 PERSON FILLING OUT FORM AI Coleman TITLE General Manager SECTION DO YOU HAVE A WRITTEN EQUAL EMPLOYMENT POLICY? YES `/ NO B IF YES, PLEASE ATTACH COPY IF NO, DO YOU PLAN TO ADOPT ONE IN THE NEAR FUTURE? YES NO SECTION DO YOU HAVE A WRITTEN AFFIRMATIVE ACTION POLICY? YES V NO C IF YES, PLEASE ATTACH COPY IF NO, DO YOU PLAN TO ADOPT ONE IN THE NEAR FUTURE? YES NO Fort Raymond Substation Security Fence Installation City of Seward ril SECTION DO YOU UTILIZE AFFIRMATIVE ACTION IN EMPLOYMENT PRACTICES, SUCH AS ADVERTISING ALL POSITIONS 'WITH THE EQUAL OPPORTUNITY D CLAUSE, MAKING SPECIAL EFFORTS TO RECRUIT MINORITY AND FEMALE JOB APPLICANTS AND REVIEWING JOB -TESTING PROCECURES TO ENSURE THAT NO DISCRIMINATORY BIASES EXIST? YES V NO SECTION NAME OF OFFICER OF FIRM Al Coleman F SIGNATURE OF OFFICER DATE 8/25/2021 CITY OF SEWARD NON -COLLUSIVE AFFIDAVIT OF PROPOSER The undersigned proposer, having fully informed themselves regarding the accuracy of the statements made herein certifies that: (1) the proposer developed the bid independently and submitted it without collusion with, and without any agreement, understanding, or planned common course of action with any other entity designed to limit independent bidding or competition, and (2) the proposer, its employees and agents have not communicated the contents of the bid to any person not an employee or agent of the proposer and will not communicate the proposal to any such person prior to the official opening of the proposal. The undersigned proposer further certifies that this statement is executed for the purpose of inducing the City of Seward to consider the proposal and make an award in accordance therewith. McKinley Fence Comapny of Mat -Su Val_fe_y 1220 W Mystery Ave. Wasilla, AK. 99654 Legal Name of Proposer/Finn Business Address IdW ignature and Title Al Coleman / GM Printed Name of Title Person 8/25/2021 Date Subscribed and sworn to me this��day of Notary Public My Commission Expires x: NOTARY PUBLIC a S.Ilrlliam Hacgood d Comm. Eq. 513112023 Fort Raymond Substation Security Fence installation City of Seward rV MCKINLEY FENCE COMPANY INC. IIPP EEAAP EEAAP AND STATEMENT OF POLICIES The purpose of The Company's Equal Employment and Affirmative Action Plan (the "Plan) is to describe the application of key policies and procedures designed to assure the right of all persons to work and to advance based on ability. This Plan has been developed for the following purposes: • To achieve full equal treatment of minority groups and women at all levels and in all sectors of the work force • To ensure compliance with applicable equal employment laws and government regulations • To set forth mandatory steps to be taken at all Company office locations to maintain and implement equal employment and affirmative action policies throughout The Company STATEMENT OF POLICIES Equal Employment_— The company's employment policy is to make no distinctions in treatment, hiring, or advancement of applicants or employees based on race, religion, color, sex, age, national origin, handicap status, Vietnam era or disabled veterans status, or on any other basis prohibited by law. Affirmative Action — The Board of Directors, President, and all officers of the company will affirmatively implement the policies and procedures in this plan with regard to women, minorities, and protected class individuals and will regard those policies and procedures as contract requirements. DISSEMINATION OF THE PLAN AND POLICIES Internal The company will communicate to each executive, manager, supervisor, and foreman this Plan and its equal employment and affirmative action policies through the following procedures: • Upon request, the company will give to any employee a copy of this Plan • The existence and requirements of the Plan will be communicated to all employees from time to time through such internal publications as may be appropriate • A copy of the Statement of Policies will be given to all applicants for employment upon their request for an employment application • Implementation of the Plan will be discussed during management staff meetings • Periodically, the Equal Opportunity Officer will meet with each manager and the manager's immediate staff to give them assistance in implementing the Plan • The company will communicate to union officials this Plan and its equal employment and affirmative action policies and procedures • Posters and policies relevant to the Plan will be displayed in conspicuous places where employees are located and particularly, in employment areas © SSC July-2017 v1.2 IIPP 40-1 77 41 AM' 4v ff 441) q7 !w "t A"5 Ar -Al ho -17 jj l7- . 7 - All Ali it N Xy, -M .1 Resolution 2021-100 Documents: • Agenda Statement • Resolution 2021-100 • Attachments: o Project Estimate from Dryden & La Rue o Map — Proposed 115kV Line to the Harbor 80 City Council Agenda Statement Meeting Date: September 13, 2021 To: City Council Through: Janette Bower, City Manager From: Rob Montgomery, Electric Department Director Agenda Item: Resolution 2021-100: Authorizing the City Manager to Purchase Transmission System MaterialsPoles, Pole Top and Support Assemblies, Conductors, Insulators, and Other Related Equipment, in the amount of $15,021,744 to Replace Aging and Deteriorating Equipment and to Upgrade the System's Voltage Capacity to Meet Future Load Growth Background and justification: Much of the existing equipment making up Seward's electric transmission system is beyond its service life and in poor condition. In fact, many of the poles and other "system delivery" equipment along Nash Road were installed in the 1950s and `60s, and their condition makes them a high risk for service reliability and unsafe for the public and even for linemen to climb. As part of an effortto improve safety, service reliability and meet future system demand, the Electric Department must rebuild all transmission infrastructure along Nash Road and upgrade system equipment on a short section from the Seward Highway into the Fort Raymond Substation. Also, to meet future demand primarily driven by plans to provide cruise ship power, a need exists for a small substation around the harbor. Following is an estimate based upon labor, materials, design engineering and contingencies for the various projects: Nash Road Infrastructure Project ($3,410,955) — Includes 88 transmission poles (wood), pole -top assemblies, support assemblies, conductors/lines, insulators and other related equipment and materials. The voltage capacity also will be upgraded from 69kV to 115kV to meet future load growth. Seward Highway Upgrade Project ($426,184) — Includes 18 transmission poles (wood), pole -top assemblies, support assemblies, conductors/lines, insulators and other related equipment and materials needed to complete the last half -mile section of the transmission system feeding into the Fort Raymond Substation. Substation Voltage Conversion Project ($5,581,873) — Does not include the transformers but does include labor for removing existing transformers and installing new transformers. (Note: order for new transformers to go before Council in a separate Resolution). Does include removal of existing transformers, new circuit switchers, breakers and reclosers, adding protection relays and SCADA, and other related materials and hardware. 81 SMIC Substation Refurbishment Project ($3,498,655) — Includes refurbishing the Lawing 25MVA transformer and moving to the Spring Creek Substation as a backup, rebuilding the Load Tap Changer for voltage control, replacing fence and ground grid, replacing antique relays, replacing external oil -filled breakers and other related materials and hardware. New Harbor Substation Project ($2,104,077) — Includes 22 transmission poles (wood), pole -top assemblies, support assemblies, conductors/lines, insulators and other related equipment to carry power from Fort Raymond to the new substation, substation fencing and construction, and other associated equipment and materials. The existing transmission delivery system, particularly along Nash Road, is in such poor condition that it could fail at any time, resulting in long outages that could be costly to the City and local businesses. All the equipment and materials outlined above, along with the order for seven new transformers (see the resolution regarding the transformer purchase) are part of an overall $19.4 million project to rebuild the "backbone" of Seward's electric transmission system. The new materials and equipment needed to rebuild this backbone, along with the new transformers, will help ensure service reliability in and around the city for the next 35 to 40 years. Consistency checklist: Comprehensive Plan: N/A Fiscal note: Cost of projects listed in this resolution (5): $ Cost of transformers (see other resolution): $ Total project cost: $ Anticipated revenue bond funding $ Remaining funding through electric reserves $ Total project cost: $ Finance Department approval: `d� Attorne Review: Yes n No Not applicable �X Recommendation City Council approve Resolution 2021-100. 15,021,744 4,360,000 19,381,744 18,000,000 1,400,000 19,400,000 82 Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2021-100 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Purchase Transmission System Materials —Poles, Pole Top and Support Assemblies, Conductors, Insulators, and Other Related Equipment, in the amount of $15,021,744 to Replace Aging and Deteriorating Equipment and to Upgrade the System's Voltage Capacity to Meet Future Load Growth WHEREAS, much of the existing transmission infrastructure along Nash Road, in substations and in other targeted sections of the system are in poor condition and beyond their service life; and WHEREAS, the system's voltage capacity must be upgraded from its current 69kV to 115kV to meet future load growth, including plans to provide power to visiting cruise ships; and WHEREAS, the existing infrastructure, in its current state, could fail at any time, seriously compromising service reliability for customers and creating safety risks for the public and the crews who must work on the system; and WHEREAS, all the equipment and materials needed are part of an overall $19.4 million project to rebuild the "backbone" of Seward's electric transmission system, thereby helping to ensure service reliability in and around the City for the next 35 to 40 years. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to purchase transmission system equipment and materials and pay for the labor for a total amount of $15,021,744 to improve the service reliability and safety of Seward's electric transmission infrastructure. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of September 2021. THE CITY OF SEWARD, ALASKA Christy Terry, Mayor 83 9/2/2021 The following scope is based on the 8/12/2021 site visit and Chris Davis follow-up email. Estimates are added for City of Seward's use. Material prices are are current and include no escalation beyond 8/31/2021 ROW assumes the City will deal with easements on City owned property and ADOT ROW. Generation during construction has not been included in estimates. DescriptionProject 1. Nash Road (10%Contingency on Construction) Phase 1, Existing Upgrade Plans $ 1,396,580.00 $ 884,992.74 $ 2,281,572.74 $ 228,157.27 $ 2,509,730.01 Add 1.3 miles distribution under -build to connect the Nash Road Distribution to $ 167,851.81 $ 245,874.02 $ 310,066.33 $ 31,006.63 $ 341,072.96 the SMIC distribution to provide an alternate voltage feed Add motor operated, SCADA controlled 115kV switch at the intersection of $ 12,000.00 $ 30,000.00 $ 42,000.00 $ 4,200.00 $ 46,200.00 Seward Highway and Nash Road Engineering $ 18,600.00 $ 18,600.00 $ 18,600.00 Phase 2, Existing 115kV Upgrade Plans $ 108,775.00 $ 214,045.89 $ 322,820.89 $ 32,282.09 $ 355,102.98 Replace old tangent poles that were not replaced in the original plans. $ 23,200.00 $ 97,535.94 $ 120,735.94 $ 12,073.59 $ 132,809.53 Engineering $ 7,440.00 $ 7,440.00 $ 7,440.00 2. Seward Hwy Transmission (10%Continency on Construction) 3,410,955.48 Complete constriction of plans to rebuild the last 1/2 mile of line into Fort Raymond $ 206,207.50 $ 181,232.66 $ 387,440.16 $ 38,744.02 $ 426,184.18 from 69kV to 115kV. 2. Seward Highway 69kV to 115kV Transmission Upgrade Sub -totals $ 0. 3. Substation Voltage Conversion (15%Contingency): Needs to happen simultaneously with multiple contractors while generation is running 1. Lawing Substation: Replace the existing failing circuit switcher over the transformer with 115kV $ 12,000.00 $ 30,000.00 $ 42,000.00 $ 6,300.00 $ 48,300.00 automated circuit switcher designed for final voltage configuration. Remove 25 MVA 69x115kV-12.5kV transformer See above Remove 2.51AVA 12.5kV-24.9kV step-up transformer. $ 12,000.00 $ 12,000.00 $ 1,800.00 $ 13,800.00 Install 2.51AVA 115kV-24.9kV stepdown transformer and appropriate protection $ 254,240.00 $ 732,478.00 $ 986,718.00 $ 148,007.70 $ 1,134,725.70 (Size to be verified by existing demand over last year.) Added protection relays and SCADA to be dertermined. $ 25,000.00 $ 20,000.00 $ 45,000.00 $ 6,750.00 $ 51,750.00 Engineering $ 119,682.57 $ 119,682.57 $ 119,682.57 2. Fort Raymond Substation: The only thing that remains is the generator step up $ 1,607,798.85 $ 2,393,158.65 $ 4,000,957.50 $ 600,143.63 $ 4,601,101.13 transformers and the 12.5kV buswork Includes replacing existing ground grid Includes replacing existing 69kV overhead bus/switches/breaker with 115kV bus/switches/breaker Includes replacing existing 10M VA 69kV-12.5kV transformers with 10M VA 115kV-12.5kV transformers. Includes replacing five external oil filled breakers with new Viper Reclosers using new 351R control. Added protection relays and SCADA to be dertermined. Engineering $ 460,110.11 $ 460,110.11 $ 460,110.11 3. SMIC Substation: Replace 69kV Circuit Switcher with 115kV circuit switcher. $ 13,000.00 $ 27,000.00 $ 40,000.00 $ 6,000.00 $ 46,000.00 4. Primrose Transformer: Replace existing 69kV-24.9kV transformer with 115kV- 24.5kV transformer sized at 125%of the maximum demand over the last year. Added $ 276,240.00 $ 750,478.00 $ 1,026,718.00 $ 154,007.70 $ 1,180,725.70 protection relays and SCADA to be dertermined. ROW and Permitting $ 78,500.00 $ 78,500.00 $ 78,500.00 Engineering $ 118,072.57 $ 118,072.57 $ 118,072.57 5. Victor Creek Transformer: Replace existing 69kV-24.9kV transformer with 115kV- 24.5kV transformer sized at 125%of the maximum demand over the last year. Added $ 276,240.00 $ 750,478.00 $ 1,026,718.00 $ 154,007.70 $ 1,180,725.70 protection relays and SCADA to be dertermined. ROW and Permitting $ 78,500.00 $ 78,500.00 $ 78,500.00 Engineering $ 118,072.57 $ 118,072.57 $ 11,807.26 $ 129,879.83 4. SMIC 0,. 0... Substation Refurbishment & N-1 1. Refurbish existing substation (20%Contingency on Construction) Fix Load Tap Changer on existing 25MVA 69x115kV-12.5kV transformer $ 35,000.00 $ 65,000.00 $ 100,000.00 $ 20,000.00 $ 120,000.00 Remove vegetation $ 4,000.00 $ 4,000.00 $ 800.00 $ 4,800.00 Replace fence and ground grid $ 50,000.00 $ 50,000.00 $ 100,000.00 $ 20,000.00 $ 120,000.00 Replace existing antique differential relays with modern relays $ 20,182.00 $ 17,621.00 $ 37,803.00 $ 7,560.60 $ 45,363.60 Replace three external oil filled breakers with new Viper Reclosers using same $ 112,500.00 $ 225,000.00 $ 337,500.00 $ 67,500.00 $ 405,000.00 351R control Engineering $ 69,516.36 $ 69,516.36 $ 69,516.36 2. Refurbish and move 25 MVA 69x115kV-12.5kV transformerto proposed substation after 3.1 complete above. Add 115kV circuit switcher, oil containment, ground grid, $ 611,260.00 $ 1,377,086.00 $ 1,988,346.00 $ 497,086.50 $ 2,485,432.50 and two Viper Reclosers for distribution feeders. (25%Contingency on Construction) Engineering $ 248,543.25 $ 248,543.25 $ 248,543.25 5. Proposed 4. SMIC Substation Refurbishment & N-1 Sub -totals $ 0000 $ 2,885,708.61 Harbor Substation (25%Contingency) 1. Extend the 115kV overhead to a new substation to be determined near the proposed cruise ship dock. This will require new construction plans and ROW work. $ 208,200.00 $ 246,384.80 $ 454,584.80 $ 113,646.20 $ 568,231.00 The overhead line is estimated to be 1-mile. ROW and Permitting along west side of Seward Highway. $ 122,500.00 $ 122,500.00 $ 122,500.00 Engineering $ 75,000.00 $ 75,000.00 $ 75,000.00 2. New 12 MVA 115kV-12.5kV transformer (Voltage TED), 115kV circuit switcher, oil containment, ground grid, and two Viper Reclosers for proposed cruise liner $ 491,260.00 $ 991,174.00 $ 1,482,434.00 $ 370,608.50 $ 1,853,042.50 distribution feeders. ROW and Permitting: No work assumed on existing city parcel $ - $ - Engineering $ 185,304.25 $ 185.304.25 $ 185,304.25 5. Proposed Harbor Substation Sub -totals 115kV Total $ 0• $ 7,623,376.84 :0 $ 9,329,539.71 $ 16,849,257.04 $ 2,532,489.39 :0, ,077.75 17 19,381,746.43 Resolution 2021-101 Documents: • Agenda Statement • Resolution 2021-101 • Attachments: o Project Estimate from Dryden & La Rue 85 City Council Agenda Statement Meeting Date: September 13, 2021 To: City Council Through: Janette Bower, City Manager From: Rob Montgomery, Electric Utility Manager Agenda Item: Resolution 2021-101: Authorizing the City Manager to Purchase Seven Electric Transformers in an Amountnotto Exceed $4,800,000, which includes a 15% contingency, to Help Ensure Service Reliability for Seward Residents and Businesses While also Allowing the City to Meet Future Load Growth, and Appropriating Funds Background and justification: Many of the transformers currently operating on Seward's electric transmission system are 40 years old or older and are beyond their service life. As part of an effort to update and rebuild its electric transmission system to improve service reliability and meet future system demand, the Electric Department must replace six existing transformers and install one new transformer near the harbor: 0 Fort Raymond Substation - Two 10-MVAtransformers ($1.4M) 0 Lawing Substation - One 2.5 MVA transformer ($565K) 0 Harbor Substation - One 12-MVA transformer; new substation to be constructed to serve new cruise ship dock and future growth ($700K) 0 Primrose and Snow River - Two 1.25 MVA transformers ($1.13M) 0 One 1.25 MVA transformer to serve as a back-up for Primrose and Snow River ($565K) 0 15% contingency ($440K) With the supply chain for delivery expected to take 60-72 weeks for the larger transformers, it's important that an order be placed as soon as possible so installation work can begin in spring/summer of 2023. The existing transformers are in a deteriorating condition and could fail at any time. The new transformers are part of an overall $19.4-million project to rebuild the "backbone" of Seward's electric transmission system. The transformers, along with the transmission system work needed in targeted areas, are critical to service reliability in and around the city for the next 35 to 40 years. Consistency checklist: Comprehensive Plan: N/A 86 Fiscal note: Funding from: Electric Fund Unassigned Fund Balance 15000-0000-3400 Finance Department approval: f2144 Attorney Review: Yes ❑ No ❑ Not applicable �X Recommendation City Council approve Resolution 2021-101. 87 Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2021-101 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Purchase Seven Electric Transformers in an Amount not to Exceed $4,800,000, which includes a 15% contingency, to Help Ensure Service Reliability for Seward Residents and Businesses While also Allowing the City to Meet Future Load Growth, and Appropriating Funds WHEREAS, there are six existing transformers needing to be replaced because they are beyond their service life and their condition is poor and deteriorating; and WHEREAS, an additional transformer is needed in a yet -to -be constructed substation near the boat harbor to ensure enough system capacity to serve a new cruise ship dock; and WHEREAS, some of the transformers may take up to 72 weeks for delivery, it's critical to place the order as quickly as possible so they arrive in early 2023 and work can begin shortly after their delivery; and WHEREAS, the new transformers are part of an overall $19.4 million project to rebuild the "backbone" of Seward's electric transmission system to help ensure service reliability for the next 35 to 40 years. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to purchase seven new electric transformers to improve service reliability and meet future load growth. Section 2. Funding in the amount of $4,800,000 is hereby appropriated from Electric Fund Reserves account no. 15000-0000-3400 to Electric Critical Infrastructure Project Fund account no. 15340-0000-8101. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of September 2021. 88 9/1/2021 The following scope is based on the 8/12/2021 site visit and Chris Davis follow-up email. Estimates are added for City of Seward's use. Material prices are are current and include no escalation beyond 8/31/2021 ROW assumes the City will deal with easements on City owned property and ADOT ROW. Generation during construction has not been included in estimates. DescriptionProject 1. Nash Road (10%Contingency on Construction) Phase 1, Existing Upgrade Plans $ 1,396,580.00 $ 884,992.74 $ 2,281,572.74 $ 228,157.27 $ 2,509,730.01 Add 1.3 miles distribution under -build to connect the Nash Road Distribution to $ 167,851.81 $ 245,874.02 $ 310,066.33 $ 31,006.63 $ 341,072.96 the SMIC distribution to provide an alternate voltage feed Add motor operated, SCADA controlled 115kV switch at the intersection of $ 12,000.00 $ 30,000.00 $ 42,000.00 $ 4,200.00 $ 46,200.00 Seward Highway and Nash Road Engineering $ 18,600.00 $ 18,600.00 $ 18,600.00 Phase 2, Existing 115kV Upgrade Plans $ 108,775.00 $ 214,045.89 $ 322,820.89 $ 32,282.09 $ 355,102.98 Replace old tangent poles that were not replaced in the original plans. $ 23,200.00 $ 97,535.94 $ 120,735.94 $ 12,073.59 $ 132,809.53 Engineering $ 7,440.00 $ 7,440.00 $ 7,440.00 2. Seward Hwy Transmission (10%Continency on Construction) 3,410,955.48 Complete constriction of plans to rebuild the last 1/2 mile of line into Fort Raymond $ 206,207.50 $ 181,232.66 $ 387,440.16 $ 38,744.02 $ 426,184.18 from 69kV to 115kV. 2. Seward Highway 69kV to 115kV Transmission Upgrade Sub -totals $ 0. 3. Substation Voltage Conversion (15%Contingency): Needs to happen simultaneously with multiple contractors while generation is running 1. Lawing Substation: Replace the existing failing circuit switcher over the transformer with 115kV $ 12,000.00 $ 30,000.00 $ 42,000.00 $ 6,300.00 $ 48,300.00 automated circuit switcher designed for final voltage configuration. Remove 25 MVA 69x115kV-12.5kV transformer See above Remove 2.51AVA 12.5kV-24.9kV step-up transformer. $ 12,000.00 $ 12,000.00 $ 1,800.00 $ 13,800.00 Install 2.51AVA 115kV-24.9kV stepdown transformer and appropriate protection $ 254,240.00 $ 732,478.00 $ 986,718.00 $ 148,007.70 $ 1,134,725.70 (Size to be verified by existing demand over last year.) Added protection relays and SCADA to be dertermined. $ 25,000.00 $ 20,000.00 $ 45,000.00 $ 6,750.00 $ 51,750.00 Engineering $ 119,682.57 $ 119,682.57 $ 119,682.57 2. Fort Raymond Substation: The only thing that remains is the generator step up $ 1,607,798.85 $ 2,393,158.65 $ 4,000,957.50 $ 600,143.63 $ 4,601,101.13 transformers and the 12.5kV buswork Includes replacing existing ground grid Includes replacing existing 69kV overhead bus/switches/breaker with 115kV bus/switches/breaker Includes replacing existing 10M VA 69kV-12.5kV transformers with 10M VA 115kV-12.5kV transformers. Includes replacing five external oil filled breakers with new Viper Reclosers using new 351R control. Added protection relays and SCADA to be dertermined. Engineering $ 460,110.11 $ 460,110.11 $ 460,110.11 3. SMIC Substation: Replace 69kV Circuit Switcher with 115kV circuit switcher. $ 13,000.00 $ 27,000.00 $ 40,000.00 $ 6,000.00 $ 46,000.00 4. Primrose Transformer: Replace existing 69kV-24.9kV transformer with 115kV- 24.5kV transformer sized at 125%of the maximum demand over the last year. Added $ 276,240.00 $ 750,478.00 $ 1,026,718.00 $ 154,007.70 $ 1,180,725.70 protection relays and SCADA to be dertermined. ROW and Permitting $ 75,000.00 $ 75,000.00 $ 75,000.00 Engineering $ 118,072.57 $ 118,072.57 $ 118,072.57 5. Victor Creek Transformer: Replace existing 69kV-24.9kV transformer with 115kV- 24.5kV transformer sized at 125%of the maximum demand over the last year. Added $ 276,240.00 $ 750,478.00 $ 1,026,718.00 $ 154,007.70 $ 1,180,725.70 protection relays and SCADA to be dertermined. ROW and Permitting $ 75,000.00 $ 75,000.00 $ 75,000.00 Engineering $ 118,072.57 $ 118,072.57 $ 11,807.26 $ 129,879.83 4. SMIC 0,. 0... Substation Refurbishment & N-1 1. Refurbish existing substation (20%Contingency on Construction) Fix Load Tap Changer on existing 25MVA 69x115kV-12.5kV transformer $ 35,000.00 $ 65,000.00 $ 100,000.00 $ 20,000.00 $ 120,000.00 Remove vegetation $ 4,000.00 $ 4,000.00 $ 800.00 $ 4,800.00 Replace fence and ground grid $ 50,000.00 $ 50,000.00 $ 100,000.00 $ 20,000.00 $ 120,000.00 Replace existing antique differential relays with modern relays $ 20,182.00 $ 17,621.00 $ 37,803.00 $ 7,560.60 $ 45,363.60 Replace three external oil filled breakers with new Viper Reclosers using same $ 112,500.00 $ 225,000.00 $ 337,500.00 $ 67,500.00 $ 405,000.00 351R control Engineering $ 69,516.36 $ 69,516.36 $ 69,516.36 2. Refurbish and move 25 MVA 69x115kV-12.5kV transformerto proposed substation after 3.1 complete above. Add 115kV circuit switcher, oil containment, ground grid, $ 611,260.00 $ 1,377,086.00 $ 1,988,346.00 $ 497,086.50 $ 2,485,432.50 and two Viper Reclosers for distribution feeders. (25%Contingency on Construction) Engineering $ 248,543.25 $ 248,543.25 $ 248,543.25 5. Proposed 4. SMIC Substation Refurbishment & N-1 Sub -totals $ 0000 $ 2,885,708.61 Harbor Substation (25%Contingency) 1. Extend the 115kV overhead to a new substation to be determined near the proposed cruise ship dock. This will require new construction plans and ROW work. $ 208,200.00 $ 246,384.80 $ 454,584.80 $ 113,646.20 $ 568,231.00 The overhead line is estimated to be 1-mile. ROW and Permitting along west side of Seward Highway. $ 122,500.00 $ 122,500.00 $ 122,500.00 Engineering $ 75,000.00 $ 75,000.00 $ 75,000.00 2. New 12 MVA 115kV-12.5kV transformer (Voltage TED), 115kV circuit switcher, oil containment, ground grid, and two Viper Reclosers for proposed cruise liner $ 491,260.00 $ 991,174.00 $ 1,482,434.00 $ 370,608.50 $ 1,853,042.50 distribution feeders. ROW and Permitting: No work assumed on existing city parcel $ - $ - Engineering $ 185,304.25 $ 185.304.25 $ 185,304.25 5. Proposed Harbor Substation Sub -totals 115kV Total $ 0• $ 7,616,376.84 :0 $ 9,329,539.71 $ 16,842,257.04 $ 2,532,489.39 :0, ,077.75 17 19,374,746.43 Resolution 2021-102 Documents: • Agenda Statement • Resolution 2021-102 • Attachments: o Purchase and Sale Agreement — Signed by Chugachmiut o Chugachmiut Letter dated March 31, 2021 o Qutekcak Native Tribe Letter dated January 14, 2020 o Alaska Mental Health Trust Authority dated January 16, 2020 o Congressman Don Young Letter dated January 17, 2020 o US Senator Dan Sullivan Letter dated January 17, 2020 o US Senator Lisa Murkowski Letter dated January 17, 2020 o Senator Gary Stevens Letter dated January 20, 2020 o SeaView Community Services Letter dated January 17, 2020 o Chugachmuit Letter dated December 30, 2020 o Qutekcak Native Tribe Letter dated January 28, 2021 o MacSwain Associates LLC Appraisal o Black -Smith, Bethard, & Carlson, LLC Appraisal o Fort Raymond Map o Resolution 2021-38 0111 Agenda Statement Meeting Date: September 13, 2021 To: City Council Through: Janette Bower, City Manager From: Jackie Wilde, Community Development Director Agenda Item: Resolution 2021-102: Authorizing the City Manager to Enter into and Execute the Purchase and Sale Agreement and Related Documents with Chugachmiut for the Sale of a 3.31 Acre Portion of Lot 7A Fort Raymond Subdivision Replat No 1, Physical Address 2101 Dimond Blvd, 2109 Dimond Blvd, in the Amount of $663,500 Background and Justification: On January 25, 2021, the City Council discussed a request from Chugachmiut to buy 3.31 acres of City land located at Fort Raymond Sub Replat No 1 Lot 7A. Legally described as: T 1N R 1 W SEC 34 SEWARD MERIDIAN SW 0870012 FORT RAYMOND Sub Replat No I Lot 7A with the Physical Addresses of: 2101 Dimond Blvd, 2109 Dimond Blvd. Chugachmiut is a 501 c3 tribal organization formed in 1975 to provide health and social services to the Alaska Native/American Indian (AN/AI) population in the Chugach region. Chugachmiut has partnered with the U.S. Government under the Indian Health Service Joint Venture Construction Program to build a 15,000 square foot hub clinic in Seward. Chugachmiut through an agreement with the U.S. Department of Veteran's Affairs, provides services to veterans living in Seward and the surrounding area Chugachmiut's new clinic will add approximately 24 new jobs and will boost the local economy by greater consumer spending and expenses associated with the operation of a facility almost three times the size of the leased space they currently occupy. On April 12, 2021, the City Council approved Resolution 2021-038, authorizing the City Manager to negotiate with Chugachmiut the sale terms of 3.31 acres of City land that is a portion of Fort Raymond Replat No 1 Lot 7A. Seward City Code 7.05.120 (a) states the City shall not sell any real property interest without first making an appraisal of the fair market value of that interest, unless the City Council finds that the public interest will not be served by an appraisal. Two appraisals of a Lot 7A were completed. One appraisal valued a 3.31-acre portion of Lot 7A at $750,000. Another appraisal valued the same parcel at $577,000. Resolution 2021-XX accepts $663,500 as the midpoint and as fair market value. Following negotiations, Chugachmiut agreed (see the signed Purchase and Sale Agreement) to purchase the property for $663,500. Chugachmiut will survey and replat the 3.31 acres at its own expense in accordance with provisions of the Kenai Peninsula Borough code. Chugachmiut has paid the City of Seward earnest money, in the amount of $10,000 for the purchase of the Property. Resolution 2021-XX approves the Purchase and Sale Agreement and authorizes the City Manager to execute the Purchase and Sale Agreement in substantial form and to make corrections and execute related documents as may be necessary to fulfill the intent of the resolution on behalf of the City of Seward. Consistency Checklist: Comprehensive Plan: 3.1.1 Attract new business and industry to the greater Seward area 3.2.1 Promote residential and commercial development within the city of Seward and its vicinity in accordance with community values. Economic Base: We are a community that promotes. economic diversity; encourages growth of year-round businesses, desires environmentally -responsible industry, and seeks jobs that promote a higher standard of living. Growth Manygement and Land Use Planning We have an attractive community in which to live, work, be educated and recreate, where growth is orderly and driven by community consensus. Growth and land use planning are coordinated through the collaboration ofprivate and public entities. We promote and facilitate balanced development. Economic Base: We are a community that promotes economic diversity, encourages growth of year- round businesses, desires environmentally -responsible industry, and seeks jobs that promote a higher standard of living Other: 2014 Municipal Lands inventory and management plan Fiscal note: No cost is associated with this resolution. An appropriating resolution will be brought before the council at a later date. Finance Department approval: Attorney Review: Yes x❑ No ❑ Not applicable ❑ Recommendation: Adopt Resolution 2021-102. ON Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2021-102 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Enter into and Execute the Purchase and Sale Agreement and Related Documents with Chugachmiut for the Sale of a 3.31 Acre Portion of Lot 7A Fort Raymond Subdivision Replat No 1, Physical Address 2101 Dimond Blvd, 2109 Dimond Blvd, in the Amount of $663,500 WHEREAS, on January 25, 2021, the City Council discussed a request from Chugachmiut to buy 3.31 acres of city land located at Fort Raymond Sub Replat No 1 Lot 7A physical addresses: 2101 Dimond Blvd, 2109 Dimond Blvd; and WHEREAS, on February 11, 2021 the Planning and Zoning Commission held a work session to discuss possible land sale/uses, both public and private, of municipal lands, including but not limited to, the Ft. Raymond Subdivision; and WHEREAS, on March 2, 2021 the Planning and Zoning Commission met during their regularly scheduled meeting and determined that the City should appraise and sell Lot 7A; and WHEREAS, on April 12, 2021, the City Council approved Resolution 2021-038, authorizing the City Manager to negotiate with Chugachmiut the sale terms of 3.31 acres of City land located at Fort Raymond Replat No 1 Lot 7A; and WHEREAS, Chugachmiut is a 501 c3 tribal organization formed in 1975 to provide health and social services to the Alaska Native/American Indian (AN/AI) population in the Chugach region; and WHEREAS, Chugachmiut has partnered with the U.S. Government under the Indian Health Service Joint Venture Construction Program to build a 15,000 square foot hub clinic in Seward; and WHEREAS, Chugachmiut through an agreement with the U.S. Department of Veteran's Affairs, provides services to veterans living in Seward and the surrounding area; and WHEREAS, in 1987, Chugachmiut established the North Star Health Clinic in Seward to provide basic primary care and to function as a regional hub for the four village clinics staffed by Community Health Aides; and WHEREAS, Chugachmiut received support to build a new clinic in Seward from Alaska Mental Health Trust Authority, Qutekcak Native Tribe, SeaView Community Services, State Senator Gary Stevens, Congressmen Don Young, United States Senators Dan Sullivan and Lisa Murkowski; and WHEREAS, the City Council of the City of Seward, Alaska, has repeatedly determined that economic development of the City of Seward is in the public interest; and 93 CITY OF SEWARD, ALASKA RESOLUTION 2021-102 WHEREAS, Chugachmiut's new clinic will add approximately 24 new jobs and will boost the local economy by greater consumer spending and expenses associated with the operation of a facility almost three times the size of the leased space they currently occupy; and WHEREAS, the City of Seward recognizes the new positions will bring professional personnel and their families to boost rental and/or the sale of homes in Seward; and WHEREAS, the City of Seward currently owns property, legally described as: a 3.31-acre portion of Lot 7A Fort Raymond Subdivision Replat No 1 with the Physical Addresses of: 2101 Dimond Blvd and 2109 Dimond Blvd; ("the Property"); and WHEREAS, Chugachmiut will survey and replat the 3.31 acres at its own expense in accordance with provisions of the Kenai Peninsula Borough code; and WHEREAS, Chugachmiut has paid the City of Seward earnest money, in the amount of $10,000 for the purchase of the Property; and WHEREAS, Seward City Code 7.05.120 states City Council may acquire or dispose of an interest in real property by negotiation, public auction, or sealed bid; and WHEREAS, the Property was recently appraised twice by licensed appraisers independently retained by the City of Seward and Chugachmiut; and WHEREAS, one appraisal valued the Property at Seven Hundred and Fifty Thousand Dollars as of July 8, 2021, and another appraisal valued the Property at Five Hundred and Seventy - Seven Thousand Dollars of June 16, 2021; and WHEREAS, the midpoint of these two appraisals is Six Hundred and Sixty -Three Thousand and Five -Hundred Dollars ($663,500); and WHEREAS, this midpoint is accepted as fair market value of the Property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council finds it is in the public's interest to enter into a purchase and sale agreement with Chugachmiut by sole source negotiation pursuant Seward City Code 7.05.120, Resolution 2021-038, and the essential terms and conditions in the attached Purchase and Sale Agreement. Section 2. The attached Purchase and Sale Agreement marked as Exhibit A, is hereby approved and the City Manager is hereby authorized to execute the Purchase and Sale Agreement in substantial form as attached hereto and to make such corrections and execute related documents as may be necessary to fulfill the intent of this resolution on behalf of the City of Seward. 94 CITY OF SEWARD, ALASKA RESOLUTION 2021-102 Section 3. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 131h day of September, 2021. AYES: NOES: ABSENT: ABSTAIN: VACANT: ATTEST: Brenda Ballou. City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Christy Terry, Mayor 4i PURCHASE AND SALE AGREEMENT This Purchase and Sale Agreement ("Agreement") is made as of , 2021 between Chugacbmiut ("Buyer"). and the City of Seward ("City-). organized as a first-class home -rule municipality under the laws of the State of Alaska. Purchaser and City agree as follows: 1. Purchase and Sale: Subject to the terms and conditions of this Agreement, the City agrees to sell and Purchaser agrees to purchase good and marketable fee simple title to the real property described as follows (the "Property"): 3.31-acres located at T 1N Ix 1W See 34 Seward Meridian SW 0870012 Fort Raymond Sub Replat No 1 Lot 7A with the Physical Address of: 2101 Dimond Blvd, in Seward, Alaska. The final legal description is subjectto plat approval by the parties and responsible agencies and subject only to the "Permitted Exceptions" as defined in Section 5 below. The Property will be legally described as set forth in the final plat approved by The City and Purchaser, and properly recorded in the appropriate rccordirig district prior to Closing. 2. Purchase Price and Pa, ment Terms: The purchase price for the Property shall be Six Hundred Sixty -Three Thousand Five Hundred ($663,500.00) dollars, � hic.h is fair market value determined by appraisal. PUrchaser will pay a deposit of Ten Thousand dollar,v (SIO,000.00) (the "Earnest Money" or "Deposit") to the EscroNv Agent described in Section 4 Nrith Purchaser's delivery of this signed Agreement to the City. After a]I other - terms and conditions of this Agreement have becra satisfied, including completion of all contingencies in .Section 8 to Purchaser's sole sansfae.ticrrr, the balance of the purchase price shall be due to the City at Closing. Under the municipal charter and code of ordinances of Seller, the City resolution required to approve this Agreement will be effective 30 days following adoption of such resolution, except as Provided in Section 3. a. In addition to payment of the purchase price, Purchaser shall pay the costs and fees associated with subdividing and platting the Property from the l,ar,,,er parcel of which it is currently a part, including but not limited to survey expense, tiling and application fees, certificate to plat costs, title insurance and recording fees; provided, that Purchaser shall only be responsible for paying fees and/or charges for services and other items that are actually ordered directly or approval in advance by Purchaser. Should the sale fail to close for any reason. tho City will not reirnburSe Purchase for costs related to the platting process, except as provided in Section 3. 3. Referendum: Under the charter and code of Seller, the resolution approving this Agreement may be subject to a referendum an the City Council's sale approval may be voided. Nothing in this Agreement shall affect ChuguchmiutPurcha%-e and SaleAgreenrent Page 1 of 8 0.z. or reduce the rights of the voters of the City of Seward to reject the City Council's approval of this Agreement bN! referendum. In the event a referendum petition is timely filed ;and accepted, Scl ler shall provide written notice of acceptance to Purchaser at the time the petition is accepted. Purchaser agrees that it shall have no rights under this Agreement unless and until a resolution is approved by the voters of the City of Seward. Based on the burden and delay inherent in a Referendum. Purc,hawr shall have the option of canceling this Agreement by providing written notice to the City no later than th H-t (30) days after the Referendum petition is approved, with the City returning Purchaser's Earncsi. P,lonc� and prompt reimbursement by Seller of all of Purchaser's reasonable, third -party cosh incurred by Purchaser in connection with the subdivision and replat, if a referendum poiion i s approved. Purchaser shall not be entitled to any damages or other relief against the Seller in the event the voters void the Council's resolution. If the resolution approving this Agreement is voided by such referendum action, this Agreement shall terminate, the Deposit shall be promptly returned to Purchaser, and platting costs returned, within 10 days of the formal certification of the referendum vote, and neither party shall have any further obligation hereunder. 4. Closing: The parties shall cause an escrow (the "Escrow") to be established with First American Title Company of Alaska - Seward Office ("Escrow Agent"), Consummation of the sale (the "Closing") shall take place through the Escrow at the offices of the Escrow Agent, or such other place as the City and Purchaser agree upon in writing. The City and PUrclra.scr shall he given One Hundred Eighty (180) days from the effective date of the resolution approving this A recine.rtt to complete the subdivision and platting process required to close this transaction. The parties shall agree iri NAT[t ing on the specific date of CIosing. In the event this transaction is not closed vv ithin One Hundred Eighty (1 Sp) days of the effective date of the resolution approving this transaction, this Agreement shall tenminate ornle.ss extended. Purchaser shall have one extension as a matter of right, for 60 days, by issuing written notice to the City. Any other extension must be agreed to in writing by both parties. Notwithstanding the foregoing, if this transaction will close, then the City and Purchaser shall cause the fallowing to occur at the Closing: A Quitclaim Deed conveying the Property (including after acquired title) to Purchaser, duly executed and acknowledged by the City, shall be recorded in the Records of the Seward Recording. District, Third Judicial District, State of Alaska. a. Purchaser shall pay to the City the price set forth in Section Z of this Agreement. b, The title company shall issue to Purchaser the title insurance policy described in Section 7 of this Agreement. 5. Title: The City will deliver to purchaser, at Purchaser's expense, Nvithin ten (10) days of mutual execution of this Agreement a commitment for title insurance (tire "Preliminary Commitment") preliminary to the issuance of the title policy referred to in Seefion 7 of this Agreement. IoL!e.ther with copics, of all underlying exceptiurrs described in the Preliminary (-7onimitment. The. Property is to be sold and conveyed subject to; (a) the condition that title to the Property is vested solely in the City and in the Chugachiniut Purrcharse and Sale Agreement Page 2 of 8 97 City's name prior to closing, and (b) reservations, restrictions and easements as disclosed in the Preliminary Commitment and approved by Purchaser. Purchaser shall be entitled to object to arrty exceptions stated in the Preliminary Commitment by delivering written notice to the City and f sc.i•ow Agent on or before fifteen (15) days after the receipt of the Preliminan, Commitment, supplemented with the copies of the underlying exceptions described therein, which notice shall specify the matters to which Purchaser objects. if Purchaser objects to any such matters, the City shall have fifteen days after receiving written notice from Purchaser to attempt to eliminate the matters to which Purchaser has objected or to cause Escrow Agent to insure over said matters. The City shall notify Purchaser in writing, within the fifteen (1 �) day period, if the City is unable or unwilling to eliminate said matters or cause Escrow Agent to insure Over said matters. Purchaser may then elect, by written notice to the City and Escrow Agent, either to waive the objectionable matters and proceed to Closing or to terminate this Agreement and receive a refund of the Deposit, and the parties shall have no further obligations to each other under this Agreement. The parties agree that, promptly after the recordation of the plat for the Property. the Escrow Agent shall update the Preliminary Commitment to reflect the Property as the Property to be insured under the title policy With respect to such update., and with respect to any other amendments or updates to the Preliminary Commitment that Occur prior to Closing, if there are any exceptions or matters not previously discksed to which Purchaser objects, Purchaser may then elect To object to said matters as provided above. to terminate the Agreement and receive a refund ol'the Deposit; or waive the objectionable matters acid proceed to Closing. Purchaser shall have the rikl1t to extend closing to address new or amended exceptions. Permitted E-Exceertioris: Notwithstandin, the immediately preceding paragraph, Purchaser may not object to any of the lt�ll�:��� ir�g title matters: reserved mineral rights; and rights reserved to federal patents, All items to which Purchaser does not object under the immediately preceding paragraph, plus all items described in this paragr'aph, are referred to herein as "Permitted Exceptions". 6. Deed: Title to the Property shall be conveyed to Purchaser by a Quitclaim Deed (the "Deed") duly executed by the City and recorded at the Closing. The Deed shall be in the farm and content acceptable to the City and Purchaser. 7, Deiivery ofFTitle Polick. At Closing, or as soon as practical thereafter, the City shall cause to be delivered to Purchaser the owner's title insurance policy required by this Agreement, which policy shall insure Purchaser's fee simple interest in the Property in the amount of the Purchase price, and which shall contain no exceptions other than the general exclusions and exceptions common to the form of policy issued, and the Permitted Exceptions. 8. Closin-- Costs: All Closing; casts of the transaction, unless other\~ ise provided in this Agreement, shall be divided as follows: Chugaelindid Purchase and Safe Agreement Page 3 of 8 98 The City shall pay the following Closing costs. - a. Any outstanding or pending assessments or liens b. 01N.'s attorney fees and cosh C. ci y's cost of appraisal {McSwain's fee.k d. Real Property taxes will be prorated to date L t_ closing and if applicable, paid throu-h escrow Subject to Section 2 above, Purchaser shall pay the following Closing costs: a. All recording fees b. All document preparation fees c. A I escrow closing fees d. Owner's standard coverage title insurance described herein (Required) e. Any ALTA title insurance policies desired by Purchaser (.Optional) £ All Pure base.r's attorney fees and costs g. Cast of Purchaser's appraisal, Commitment fees, paints, and financing costs h. Real Property taxes if any, will be prorated to date of closing and, if applicable, paid through escrow Notwithstanding the above, if the escrow fails to close due to the default of one party, the defaulting party shall pay any escrow and title policy cancellation fees. Except for items in Section 11, from the date of mutual acceptance of this Agreement until Closing. Seller agrees to maintain the Property in its present condition. 9. Seller's Conditions Precedent: The parties acknowledge that the City's obligation to close on the purchase of the Property shall be subject to the following: a. Receipt of approval by Purchaser of Purchaser's inspection of the Property not revealing any basis upon which. Purchaser timely terminates this Agreement as provided in paragraph 10 below b. Approval of this Agreement by the Seward City Council, and, if a timely referendum petition is filed, approval by voters in a referendum election No litigation or other claim which has any probability or reasonable likelihood of success, challenges or controverts the Purchaser's action to acquire the Property. d. Completion by Purchaser and the City of all items necessary to subdivide and plat the Property to be purchased. Purchaser to pay all amounts required by this Agreement Ch ugachmiut Purch ase and Sale Agreement Page 4 of 8 99 to, Inspection: Purchaser, its agents and contractors. were provided with a Right of .Entry on April 19, 20211 which gave Purchaser reasonable access to the Property to conduct such tests and inspections as Purchaser deems appropriate; provided, Purchaser gave the City reasonable notice of Purchaser's intention to access the Property. If Purchaser reasonably determines from the inspections or testing that any condition of the Property does not meet Purchaser's satisfaction, Purchaser shall have the right within thirty (30) days after the effective date of this Agreement to object to such matter by delivering written notice to the City specifying the matters to which Purchaser objects. To the extent that any objection is curable, the City shall have twenty (20) days after receipt of the written notice to cure the deficiency, at The City 's expense and to Purchaser's satisfaction, or negotiate an acceptable resolution with the Purchaser. Unless Purchaser has agreed to proceed as a result of the City's cure or other agreed -upon resolution, Purchaser may elect, by written notice to the City, to waive the objectionable matter and proceed to Closing, negotiate a different, written resolution with the City, or to terminate this Agreement. If this Agreement is terminated by Purchaser. the Deposit shall be returned to Purchaser and the parties shall have no further obligation to each other under this Agreement. 11. Pro erh , Condition: The parties ackrowledge that the value and use of the Property will be determined in part through an environmental us c sment and review process, to be undertaken at Purchaser's option and expense. If Purchaser, based on research, inspection, sampling, environmental testing or similar reliable data, determines that the Property is not acceptable to Purchaser due to contamination, spills, pollution, hazardous or toxic substances or waste, Purchaser shall have the option of terminating this Agreement prior to Closing. In that event, Seller agrees to return 100 percent of the Earnest Money to Purchaser, and the parties shall have no further obligation to each other under this Agreement. If the sale closes, Purchaser will be responsible for subsequent acts or omissions causing pollution, contamination, hazardous conditions, or hazardous substances after closing, but shall not assume liability of prior owners or users of the property. The City expressly makes no warranties as to the physical condition of the Property and all inspection obligations rest with the Purchaser. Except as provided above, Purchaser acknowledges that Purchaser has inspected the Property and accepts the same "as -is" and without reliance on any expressed or implied representations or warranties of the City or agents of the City, as to the actual physical condition or characteristics thereof of the Property. Provided, however, that nothing in this Section l l waives Purchaser's rights or remedies under AS 46.03.8220). Purchaser shall provide at its own cost, on -site sewer and water and fire protection. 12, Remedies: L If Purchaser (a) fails, without legal excuse, to complete the purchase of the Property, or (b) otherwise defaults under this Agreement, the City shall be entitled to retain the $10,000.00 deposited by Purchaser with the Escrow Agent pursuant to Seelion 2.a Chagachrniut Purchase and Sale Agreement Page 5 of 8 Will above, and such retention by the City of this $10.000.00 Deposit shall be the sole and exclusive remedy available to the City for such failure or default by Purchaser; provided. however, Purchaser shall remain responsible to pay its portion of subdivision and platting costs owed to the City or third parties and Purchaser shall not be reinnbursed by the t itY for any subdivision and platting costs already paid by Purchases, unless specif leaky provided otherwise herein. The City otherwise waives all c.laints for damages from Purchaser. b. if the City fails, without legal excuse, to complete the sale of the Property, chest the Deposit shall be returned to Purchaser, and City shall be responsible for reimbursing any subdivision and plattints, costs paid by Purchaser. The City's return of the `4510,000.00 Deposit to Put-chaset• and reimbursement of any subdivision and platting ci-tsts paid by Purchaser, shall be the sole and exclusive remedy available to Purchaser far such failure or default by the City. 13. Costs and Fees: If either party institutes suit concernin4 this Agreement, the prevailing party (if any) as detennnined by the court shall be entitled to its reasonable attorneys' fees and costs. it Waives•: No delay in c xercising any right or rentudy shall constitute a waiver thereof, and no waiver by tine City or Purcha sez of a hr'each of any covenant of this Agreement shall be construed as a waiver of any preceding or succeeding breach of the same or any other covenant or condition of this Agreement. 15. Assi,,-,rzment- This Agreement is binding on the heirs, successors, and assigns of the parties, but shall not be voluntarily assiinc:d by either party without prior written consent of the other party. which consent shall not be unreasonably withheld. 16. Commissions: Each party represents and warrants to the other that it has not engaged the sere ices of any broker, finder or other person who would be entitled to any commission or fee in respect to the subjcb.-t ;-patter of this Agreement and each shall indemnify the other against any loss, cost.. liahility or incurred by the other as a result of any claim asserted by any such broker, finder or otlnr i,,tiSs ,tt On the basis of any brokerage or similar arrangement or agreement made or alleged to have: 17. Notices: No notice, consent, approval or other communication provided for herein or given in connection \vlth this Agreement shall be validly given, made, delivered w, served unless it is in writing and delivercd personally, sent by overnight courier or sent by registered or certified United States mail, posta. e prepaid, with return receipt rec;nested to: Seller; City of Seward Janette Bower, City Manager P.O. Box 167 Chiuguchmrur Purchase and .Sala Agreement Page 6 of 8 Seward, Alaska 99664 Purchaser: Chugachmiut Angela J, Vanderpool, Exclutive Director 1840 Bragaw Street. Suite i 10 Anchorage, Alaska 99508 or to such other addresses as either party may from time to tirne designate 'In writing and deliver in a like manner to the other party. Notices. consent, approvals, and cOMITlun car IOTIS given by mail shall be deemed delivered upon the earlier o three days after deposit in the United States mail in the manner provided above or immediately upon delivery to the respective addresses set fo ilh above. if delivered personally or sent by overnight coUrier, 18. Eutire Agreement: This document and its attachnaertts contain the entire Agreement between the parties. It may not be modified except in writing and signed by all parties. 19. Construction of Agreement. The captions of the paragraphs of this Agreement are for convenience only and shall not govern or influence the interpretation hereof. This Agreement is the result of negotiations between the parties and, accordingly, shall not be construed for or against either party regardless of which party drafted this Agreement or any portion thereof. 20. 5u rvivin Covenants: The provisions of this Agreement shall survive the delivery of the Deed. 21. Time is of the Essence: Time is of the essence of this ,' greement. 22. Exclusive Agreement: This Agreement shall constitute an exclusive arrangement between the. parties. The City shall not market, sell, negotiate for the sale of, or convey the Property to any ether person, provided that Purchaser has not delivered notice that it will not close due to art unsatisfied condition, 23. Controllini2 Law and Venue: This Atli-ceinent shall be governed 13y. construed under and ent'arcA in accordance with the lav,:s of the State of Alaska, and venue for actions between the parties arising out afar related to this Ap, 'tin,: nt shall be in the Alaska Superior Court, Third Judicial District, Anchonivc, Alaska.. 24. Further Assurances: Whenever requested to do so by the other party, the City or Purchaser promptly and expeditiously 4hall execute, acknowledge and deliver any and all such cO11ti0'a1 es. assivnrnents, confirmations, satisfactions, releases, instruments of further assurance, approvals, consents and any and all further instruments and documents as may be reasonably necessary. expedient, or proper in order to complete any and all conveyances. transfers, sales, and assignments herein provided, and to do any and all other C h agrach nihil I -lurch ase and Sale Agreement Page 7 of 8 `11YA reasonable acts and to execute, acknowledge and deliver any and all documents as so reasonably requested in order to carry out the intent and purpose of this Agreement, including but not limited to subdividing and platting the tract containing the Property and the parcel to be the Property. 25. Possession: Purchaser shall receive possession of the Property at the closing and recording of the Quitclaim deed. Executed this Buyer. Cl il.1(sAC1 iMiLI`l_, Angela J. Van,'.Ia cool, day of .2021 Executive Director STATE OF ALASKA } ) ss: THIRD JUDICIAL DISTRICT) The foregoing instrument was acknowledged before the this , of , 2021 by Angela J. Vanderpool, Executive Director of an Alaska nonprofit corporation, on behalf of Chugachm iut. GEORGINA SUMSTA❑ Notary Public State of Ataska 'Ay ommission Expires May 27. 2425 Seller: CITY OF SEWARD Janette Bower, City Manager STATE OF ALASKA } ) as: THIRD JUDICIAL DISTRICT) iffjO (A 41 ��11 rns �a CY atary P licin an or Alaska My Commission Expires: y-' ATTEST: The foregoing instrument was acknowledged before me this this cif' _, 2021 by Janette Bower, City Manager of the City of Seward, an Alaska munici pail corporation, on behalf of the City. (Sea]) Jackie C. Wilde- Noi:ary Public in and for Alaska My Commission Expires: qtr usl 12, 2022 Chugachmiut Purchase and Sale Agreement Page 8 of 8 HIM Valdez Talwillek Eyak Chenega Prince. Gu It of Alaska Qutakeak William Sound Port Graham C 1 u g a c 1 1 m i t Nanwal9k u I March 31, 2021 Norm Regis, Acting. City Manager City of Seward 410 Adams Street Seward, Alaska 99664 Dear Mr. Regis: First allow me to introduce myself. My name is Kelley Baker and I serve as the Health Services Division. Director at Chugachmiut. Chugachmiut is interested in land purchase in Seward. Please allow me to explain why. Our current clinic serves predominantly Alaska Native and American Indian Seward community members, which are the second highest race population in Seward. A highly competitive joint venture program opportunity came up two years ago with Indian Health Services. We submitted our application and we're 1 of 5 in the United States to be awarded. Along with our application were letters of support from our Alaska senators as they also understand the health disparities and needs impacting the Alaska Native/American Indian population in Alaska and in. Seward. Senator Murkowski's letter of support wrote "As senator for Alaska since 2003, 1 recognize the needs and accomplishments of Native Alaskans. The indigenous peoples of Alaska have the unfortunate distinction of leading or nearly leading the rest of the country in severe health and behavioral health issues such as tobacco consumption, carcinomas, depression and suicidality, heart disease, and diabetes. Whereas we proudly celebrate the cultural and linguistic accomplishments of our state's first residents, we are not blind to the consideration health challenges faced by these same people. The Indian Health Service Joint Venture Construction Program is one of those bold programs that strive to reverse these health disparities. Consistent with all relevant rules, laws, and regulations, I respectfully request that all due consideration be given to this application. I wish you the best in these worthy efforts to bring health and hope to the Chugach Region, and, by extension, to all of Alaska." The final application's scoring criteria was based off data such as current population served, current staffing, facility size and most importantly- community need. I can assure you a thorough review of your strategic plan and economic development plan was conducted and the result of the review proved this project is in alignment with the city and community members goals. We also discovered based on the population served in Seward, we are currently operating 50% under staffing and facility capacity based off IHS criteria. Meaning to serve the needs of your 1840 Bragaw Street, Suite 1 10 / Anchorage, Ak 99508-3463 / (907) 562-4155 / Fax (907) 563-2891 A Tribal Organization Serving the Chugach Native &oples a{Alaska 7AMAMTA PICiPE7 "All of Ours" Valdez Talfllek Eyak Chenega Prince Gult of Alaska QutaWk William Sound Port Graham Nanwal9k ` ` C l�.�y u g a c h m i`'u t community members who are Alaska Natives and American Indians- a larger staffing package and facility is needed. For this project, the land must be tribally owned not leased and at least 3 acres of land. We estimate the build will cost approximately $18 million dollars and with such a large investment, securing land out of the tsunami and flood zone is a high priority for us. I understand research was conducted for Seward city owned land and the preference towards leasing land opposed to selling land. However, I would like to offer that investing in the health and wellness of your community has a long term return on investment and reduces overall costs. With this project we will bring at least 28 additional Long term healthcare professionals to Live and work within the community of Seward. In essence these individuals will purchase homes, pay taxes and add to local city business revenues. We would sincerely appreciate your consideration and support in investing in the health and wellness of the people in your community and approve the sale of land to Chugachmiut. Thank you in advance and we look forward to your favorable response to this request. I'm available to meet with you and/or the city council at any time. Please do not hesitate to contact me electronically at keliq a.chugachmiut.org or telephonically at (907) 441-8565. Regards, Kelley Baker, Health Services Division Director CC: Christy Terry, Mayor Brenda Ballou, City Clerk 1840 Bragaw Street, Suite 110 / Anchorage, AK 99508-3463 / (907) 562-4i 55 / Fax (907) 563-2891 A Tribal Oi"gonization Serving the Chugach Native.&oples of Alaska TAMAMTA PCGPET "All of Ours" 4 r Indian Health Service May 8, 2020 FOR IMMEDIATE RELEASE Press Release Contact: (301) 443-3593, uewsroorn,u ihs.go IHS selects five projects for Joint Venture health care facilities Partnerships with tribes will expand access to health core in Indian Country The Indian Health Service has selected five projects for new or expanded health care facilities through the IHS Joint Venture Construction Program. For nearly 30 years, this program has strengthened partnerships with tribes across the country and expanded access to comprehensive, culturally appropriate health services for American Indian and Alaska Native people. "The IHS Joint Venture Construction Program provides meaningful partnership and collaboration with our tribal partners as we work together to accomplish the IHS mission of raising the physical, mental, social and spiritual health of American Indians and Alaska Natives to the highest level," said Rear Adm. Michael D. Weahkee, IHS director. Selected Projects IHS Area Tribe or Tribal Organization Facility Type Location Alaska Area Southeast Alaska Regional Health Consortium Inpatient Sitka, Alaska Alaska Area Chugachmiut Outpatient Seward, Alaska Great Plains Area Three Affiliated Tribes Outpatient Newtown, North Dakota Oklahoma City Area Chickasaw Nation Outpatient Newcastle, Oklahoma Portland Area Confederated Tribes of the Colville Reservation Outpatient Omak, Washington The program enables a partnership in which a tribe or tribal organization constructs, acquires, or renovates a facility using non-IHS funds, and leases it to the IHS at no cost for 20 years. In return, IHS requests funding from Congress to staff, operate and maintain the facility. Since 1991, more than 25 tribes have partnered to provide more than 30 facilities, from health centers to hospitals, increasing access to quality health care services for their communities. More than 40 applications were received for the current round of this highly competitive program. Projects were selected through a two-phase process, which included evaluation by an objective review team comprised of members representing tribes, tribal organizations, the IHS, and the Department of Health and Human Services. The selected tribes and tribal organizations will now be required to prepare planning documents. The IHS will work with each tribe or tribal organization to develop a joint venture agreement, which includes the specific responsibilities and authorities of each party. The IHS, an agency in the U.S. Department of Health and Human Services provides a comprehensive health service delivery system for approximately 2.6 million American Indians and Alaska Natives who belong to 574 federally recognized tribes in 37 states. Follow the agency via social media on Facebook and Twitter. M6 ,1 44) 'Changing with the tides in harmony with our people, land and heritage." January 14, 2020 Ms. Angela Vanderpool, Executive Director Chugachmiut 1.840 Bragraw Street, Suite 110 Anchorage, AK 99508-3463 RE: Letter of Support for the Indian Health Service Joint Venture Construction Program Dear Ms. Vanderpool: The Qutekcak Native Tribe would like to support the Indian Health Service Joint Venture Construction Program (IHS-JV) that Chugachmiut is applying for on behalf of the residents of Seward and the Chugach Region. We recognize that Chugachrr iut is the sole provider of health services in Port Graham, Nanwalek, Tatitlek, and Chenega, and through ]eased space operates a regional "hub" clinic in. Seward. We also recognize that all of Seward and the surrounding areas which include Lowell Paint, Bear Creek, Primrose, Crown Point, and Moose Pass are all eligible to access the services provided by Chugachmiut. We believe this IHS-JV would be a benefit to the City of Seward, Chugach Region, and to the state of Alaska in the form of a sizeable infusion of federal dollars, in new jobs and reduced unemployment rates, but most importantly to the beneficiaries of Chugachmiut with the increased direct health services improving health for many people. Sin erely, Dolly Wil Tribal Administrator Cc Qutekcak Tribal Council Chugachmiut P.C. Box 1467.221 Third Avenue , Seward, Alaska 99664 - Tat, 907-224-3118 - Fax: 907-224-58 Jt PinaI Application Page 43 of 234 ltI117n, t Alaska Merital Health Trust Authority January 16, 2020 Angela Vanderpool, Executive Director Chugachmiut 184o Bragaw Street, Suite no Anchorage, Alaska 995o8 3745 Cummunity Park liuup, auitc 200 Anchorage, AK99,oS Tel 907,269.796o RE: Support for Chugachmiut's Joint Venture Application Dear Ms. Jan Vanderpool; 1 am pleased to write this letter of support for Chugach miut's efforts to secure a Tribal Health Facility through new construction in Seward, Alaska and in support of the needed behavioral health/medical/administrative staffing package as offered through the Indian Health Service's 2019 Joint Venture Construction Program (JVCP). The Trust fully supports efforts of Chugachmiut to expand access to health and behavioral health care in the region. The Trust seeks to assist and improve the lives of people suffering mental health and substance abuses, of which Alaska Native peoples have the unfortunate distinction of leading or nearly leading the rest of the country in severe health and behavioral health issues including depression and suicidality. The Joint Venture Construction Program is an innovative opportunity that will enable Chugachmiut to aggressively work to improve these health disparities. The Trust is pleased to offer this letter of support for Chugachmiut, and to support your commitment to bring health and hope to the Chugach Region, and, by extension, to all of Alaska. ectfully, Steve Willi ms Chief D acing Officer Chugachmiut im JV Final Application Page 42 of 234 bolo YOUNG CONGRESS1tl1AN FOR ALL ALASKA WASHiNGTON OFFICE: 2314 RAYBUHN GUELE ING WM1SHINGIUN. DC 20515 202-225-5765 DEAN OF THE HOUSE �' ~"MIItlMNW (Congress of t4v lhnitrb Mates Eause of 1Rvpresettt:ttibe5 111asllitt9tntt, i i_(['_ *-,[I--,[-, January 17, 2020 Angela Vanderpool, Executive Director Chugachmiut 1840 Bragaw Street, Ste, 110 Anchorage, AK 99508-3463 Dear Ms. Vanderpool: COMMITTEE ON NATURAL RESOURCES REPUBLICAN LEADER, SUBCOMMITTEE ON NATIONAL PARKS, FORESTS AND PUBLIC LANDS COMMITTEE ON TRANSPORTATION & INFRASTRUCTURE REPUBLICAN STEERING COMMITTEE I offer this letter of support of Chugachmiut's efforts to establish a health clinic in Seward, Alaska through an application proposal to the Indian Health Service Joint Venture Construction Program (iHS-JV), Chugachmiut is the sole provider of health services in Port Graham, Nanwalek, Tatitlek and Chenega and through leased space, operates a regional 'hub' clinic in Seward. Additionally, everyone in Seward and adjacent communities including Lowell Point, Bear Creek, Primrose Crown Point, and Moose Creek are eligible for certain services and a number of the citizens do access these services provided by Chugachmiut. This is an exceptionally beneficial opportunity for the residents of Seward, the Chugach Region, and Alaska in general. As a legislator, I recognize the needs and accomplishments of Native Alaskans. The indigenous peoples of Alaska have the unfortunate distinction of leading or nearly leading the rest of the country in severe health and behavioral health issues such as tobacco consumption, carcinomas, depression and suicidality, heart disease, and diabetes. Whereas we proudly celebrate the cultural and linguistic accomplishments of our state's first residents, we are not blind to the considerable health challenges faced by these same people. The Indian Health Service Joint Venture Construction. Program is one of those bold programs that strive to reverse these health disparities. Therefore, I am pleased to offer this letter of support for Chugachmiut, and I want to be a part of these worthy efforts to bring health and hope to the Chugach Region, and, by extension, to all of Alaska. Consistent with all relevant rules, laws and regulations, I respectfully request that all due consideration be given to this application and all other eligible Alaska - based applications. Thank you for your consideration. Sincerely, 4nAA I Me DON YOUNG//& Congressman for All Alaska 471 W 3[+TH AwOUF 1L1O7 CUSHMAN SPREE F. SU11k 207 Ch.�., �.�y �k1��} SUiTF 201 P ©. 8nx 73110 UAR&R'WGT . ANCHUFACE, A- ASK: 99509 FAiNFAN•::. Al Atirn 99707 �arrr:��danVauny.nause.y�e- 907471-597Fi iz� 907-456.0210 JV Final Application. Page 38 df 234 DAN SULLIVAN AL.ASKA 5, ,J. 70, �..��...r-..IfUnitcrl Mates [Batt .. �r.DC.GI. i. �Iu, January 17. 2020 I_CDR Ornobogie Amadasu. P.E.. Program Manager IHS Joint Venture Construction Program Division of Facilities Planning and Construction. Indian Health Service ti600 Fishers Lane Mailstop: ION 14C Rockville, MD 20857 Dear 0mobogie Amadasu. ARMED SERVICES COMMERCE. SCIENCE, AND TRANSPORTATION ENVIRONMENT AND PUBLIC WORKS VETERANS' AFFAIRS 1 write you in sLsppor-t of the Chugachmiut`s application for fundin�L through the Indian Health Sen-ice Joint Venture Construction Program (JVCP) to enhance healthcare and wellness for communities in the Kodiak region. Chugachmiut is the sole provider of health services in Port Graham. Nan%valek, Tatilek, and Chenega. It operates a regional hub clinic in Seward through leased space. All community members in Seward and adjacent communities including l,o-%%-ell Point. Bear Creek. Primrose Crown Point. and Moose Creek are eligible for certain services provided by Chugachmiut. The Chugachmiut IHS JVCP would provide significant benefits to the City of Seward and the Chugach region by expanding. direct health services to the area and surrounding communities. Consistent with applicable law, I respectfully ask that you give due consideration to the Chugachmiut Indian Health Service Joint Venture Construction Program application and all Alaskan grant applications. I ask that you keep my office apprised on the outcome of the application. .._}+ +A.,-_ Chugachmiut Thank you. Dan Sullivan United States Senator if JEALI EtJA.. .'.H IY_r :Ea A'.'EJJL'f ��:�r'. T:wi;G J'C-' ; - .. E ,�� JV Final Application 630 Page 39 of 234 USA MURKOWSVJ ALASKA UNM1TrEF& ENERGY AND WITURAL RESOUACES C ARMAH APPROPRIATIONS S4J9CQIJ%UrTEEc ON 04TERPR Ew%RaN114 YT AM3 R[ LA i EP AGENCIES CKARVAFJ r1EALTH. EDUGaTION. LABOR. ANDPENWONS MOWN AFFAIRS niteb tate,5 *mate WASHINGTON, OC 20510.0203 Angela Vanderpool, Executive Director Chugachmiut 1840 Bragaw Street, Ste. 110 Anchorage, AK 99508-3463 Dear Ms. Vanderpool, (M) 224-855 (202) 224.5301 FAX January 17 51 a L STREET, SurrE 800 A1JCHC aArM. AK 99541-1956 (9071271-3735 2SO CuSKMAN STREET, 9u1TE2D FAlR6Arr(S. JIK 9.7'01 (907) 4!4-42:1 80fl GLACIER AVENUE Su1TE 101 JU>•EAu, AK 9001 (907) 5-WT277 44639 STFTiuhrG HW Wmv,, SUTri 203 SoLDC)TNA. AK S9689 (907) 262-422C IWO Feiss AWENuc Si.NTE,225 KE'rcatucAN. AK 92M -059 B5i FJLSTWie' h'�..,f UiTr 307 Wa Dua, Ali QM4-7142 (907)376-7686 1 offer this letter of support of Chugachmiut's efforts to establish a health clinic in Seward, Alaska through an application proposal to the Indian Health Service Joint Venture Construction Program (NHS-JV). I understand. Chugachmiut is the sale provider of health services in Port Graham, \an walek, Tatitlek and Chenega and through leased space, operates a regional `hub" clinic in Seward. Additionally, everyone in Seward and adjacent communities including Lowell Point, Bear Creek, Primrose Crown Point, and Moose Creek are eligible for certain services and a number orthe citizens do access these services provided by Chugachmiut. This is an exceptionally beneficial opportunity for the residents of Seward, the Chugach Region, and Alaska in general. As a Senator for Alaska since 2003, I recognize the needs and accomplishments of Native Alaskans. The indigenous peoples of Alaska have the unfortunate distinction of leading or nearly leading the rest of the country in severe health and behavioral health issues such as tobacco consumption, carcinomas, depression and suicidality, heart disease, and diabetes. Whereas we proudly celebrate the cultural and linguistic accomplishments of our state's first residents, we are not blind to the considerable health challenges !'aced by these same people. The Indian Health: Service Joint Venture Construction Program is one of those bold programs that strive to reverse these health disparities. Consistent with all relevant rules, laws, and. regulations, I respectfully request that all due consideration be given to tlus application. I wish you the best in these worthy efforts to bring health and hope to the Chugach Region, and, by extension, to all of Alaska. Thank you for inviting me to show my support for the health and wellbeing of every Alaskan. Sincerely, Lisa Murkowski United States Senator Chugachmiut 166 1V Final Application Page 40 of 234 SESSION ADDRESS: Alasb Sure Capitol ]uneau, Alaska 99B01-[ L82 (907) 4654925 I-= (907) 465.3517 Toll Free: 143MB21.4925 January 20, 2020 Senator Gary Stevens Alaska State Legislature Angela Vanderpool, Executive Director Chugachmiut 1840 Bragaw Street, Ste. 110 Anchorage, AK 99508-3463 Dear Ms. Vanderpool: INTERIM ADDRESS 305 Center Ave, Ste. 1 Kodiak, Alaska 99615 (907) 4864925 Fax. (907) 486.5264 Please consider this letter my support of Chugachmiut's efforts to establish a health clinic in Seward through an application proposal to the Indian Health Service Joint Venture Construction Program (IHS-JV). As you know, Chugachmiut is the sole provider of health services in the rural communities of Port Graham, Nanwalek. Tatitlek and Chenega, which I represent in the Alaska State Senate. As a legislator, I recognize the needs and accomplishments of Native Alaskans. The indigenous peoples of Alaska have the unfortunate distinction of leading or nearly leading the rest of the country in severe health and behavioral health issues such as tobacco consumption, carcinomas, depression and suicidality, heart disease, and diabetes. Funding from the IHS-JV Construction Program will be of great benefit in Chugachmiut's critical work in meeting these health challenges. Thank you for the opportunity to add my support for you me to show my support in this important endeavor. Sincere ary Stevens Chugachmiut 162 IV Final Application Senator.Gary.Srevens&a kleg.gov Page 41 of 234 SeaView Community Services January 17, 2020 Angela Vanderpool, Executive Director Chugachmiut 1840 Bragaw Street, Ste. 110 Anchorage, AK 99508-3463 Dear Ms. Vanderpool, P,O. Box 1045 302 Railway Avenue Seward, Alaska 99664 Phone 907.224 5257 Alaska toll free 1,888,224.5267 Fax: 907.224.7081 SeaView Community Services is the state certified Community Behavioral Health Center (CBHC) that has been providing substance use and mental health treatment services for residents and visitors on the Eastern Kenai Peninsula for nearly 50 years. SeaView's behavioral health services currently include recovery housing, adult mental health residential, psychiatry, 24/7 crisis services, partial hospitalization and outpatient treatment. Our service area includes the communities of Lowell Point, Seward, Moose Pass, Crown Point, Cooper Landing and Hope; however, our housing programs often serve patients from across the state. Chugachmiut has long been a community partner in the provision of needed services in the Seward area. I offer this letter of support of Chugachmiut's efforts to construct or purchase a health clinic in Seward, Alaska and obtain operational funding through an application proposal to the Indian Health Service Joint Venture Construction Program (LHS-JV). I understand Chugachmiut is the sole provider of health services in Port Graham, Nanwalek, Tatitlek and Chenega and operates a regional hub clinic in Seward in leased space, currently Iocated across the street from the SeaView CBHC. As a healthcare partner, SeaView recognizes the needs and accomplishments of Native. Alaskans. Chugachmiut is not alone in understanding that indigenous peoples of Alaska have the unfortunate distinction of leading or nearly leading the rest of the country in severe health and behavioral health issues such as tobacco consumption, carcinomas, depression and suicidality, heart disease, and diabetes. We agree that we can all proudly celebrate the cultural and linguistic accomplishments of our state's first residents and are not blind to the considerable health challenges faced by these same people. The Indian Health Service Joint Venture Construction Program is a potential pathway to address these and other health disparities. I sincerely appreciate this opportunity to provide support to a valuable community partner and look forward to our future collaboration on creating a healthy community! Best regards, Christine Sheehan Chief Executive Officer Chugachmiut JV Final Application 71, Page 440f234 v,Adez TatMek. Iyak Chenega Prince Gut? of Alaska. Oaekcak William Saund Port rr NanwaletChugachmiut December 30, 2020 Norm Regis, Acting City Manager City of Seward P.O. Box 167 410 Adams Street Seward, Alaska 99664 Dear Mr. Regis: Chugachmiut is a 501(c)(3) tribal organization formed in 1975 to provide health and social services to the Alaska Native/American Indian (AN/AI) population in the Chugach region. The region is composed of seven communities and villages in southcentral Alaska spanning approximately 15,625 square miles, with a combined population of approximately 2,200 Alaska Natives/ American Indians including Seward/Qutekcak. Additionally, through an agreement with the U.S. Department of Veteran's Affairs, we provide services to veterans living in Seward and the surrounding area. In 1987.Chugachmiut established the North Star Health Clinic in Seward to provide basic primary care and to function as a regional hub for the four village clinics staffed by Community Health Aides. We've improved and supplemented services as technology and medical knowledge advanced and at present we offer a diverse selection of clinical and ancillary services. These services include, but are not limited to, enhanced primary care, pharmacy, behavioral health, substance abuse treatment & prevention, diabetes intervention & prevention, dental, tobacco intervention & prevention, nutrition, health promotion & education, telehealth, and electronic health records. Last fiscal year, ending September 30, the North Star Health Clinic processed 3,508 patient encounters in Seward and processed an additional 4,429 patient encounters to the four remote village clinics for dental, medical and behavioral liculth purposes. With an increase in the number of beneficiaries and service delivery over the years we have simply out grown our current clinic space and need to expand. Based on our need for expansion, we are very pleased to present an opportunity that decidedly improves the City of Seward while enhancing the health and well-being of the people we serve. Chugachmiut is partnering with the U.S. Government under the Indian Health Service Joint Venture Construction Program to build a 15,000 square foot hub clinic in Seward. The clinic comes with approximately 24 new lobs and will boost the local economy by greater consumer spending and expenses associated with the operation of a facility almost three times the size of the leased space we currently occupy. These new positions will bring professional personnel and their families to boost rental and/or the sale of homes in Seward. TAMAMTA PIGPET 1 &40 Bragaw Street, Suite 1 10 / Anchorage, AK 99503-3463 1 (907) 562-4155 / Fax (907) 563-2891 "All of ©cars" A Trigs! Orgonuotton Serving the Chugach Native Peoolet jp4 Alaska In addition to personnel based in Seward, the number of itinerants cycling through Seward in support of the facility will also bring increased, year-round consumption of hotel, restaurant, and other services. We anticipate a minimum of 200 itinerant lodging days with accompanying purchases -at local restaurants and personal shopping as well. While Chugachmiut will be increasing staff and expanding services in Seward we will continue to be reliant upon on the local hospital for laboratory services, x-rays, and emergency room care. We will also continue to refer patients to local providers for services beyond the scope of care at the regional hub clinic. Over the past 10-11 months, Chugachmiut has been in discussions with Jackie C. Wilde, Community Development Director about the possibility of purchasing land owned by the City of Seward for this project. Ms. Wilde helped us identify sites and allowed us to conduct preliminary, non-invasive analysis of four city owned sites. After initial analysis, Chugachmiut is very interested in 3.31 acres in the southern -most section of `Fort Raymond'. Depending on price, we may be in a position to purchase more than the 3.31 acres identified. Our next step is to conduct an intensive study of the preferred land parcel. However, before we order an expensive study, we need a firm commitment along with an initial price no later than January 28, 2021 from the City of Seward for the `Fort Raymond' selection. There are fixed deadlines imposed by our federal partner for each phase of the project and an in-depth land study is mandatory. Thank you in advance and we look forward to your favorable response to this request. I'm available to meet with you and/or the Seward City Council at any time. Please do not hesitate to contact me via e-mail at iarni�chu =ach miut.utg or by phone at (907) 562-4155 or (907) 441- 5514. Regards, Angela J. Vanderpool, Executive Director CC: Christy Terry, Mayor Brenda Ballou, City Clerk 705 'Changing with the Was in harmony with our people, land and heritage " January 28, 2021 Christy Terry, Mayor Seward City Council P.O. Sox 167 4I0 Adams Street Seward, AK 99664 RE: Chugachmiut Regional Health Clinic Dear Mayor Terry: The Qutekcak Native Tribe (QNT) is pleased to support the Chugachmiut Regional Health Clinic (CRHC) project in Seward and urges the Seward City Council to sell land to Chugachmiut for the project. The Fort Raymond site under consideration is situated for easy access by QNT tribal membership and others served by Chugachrrmiut clinical operations. While Chugachrruut may have other options, they've consulted QNT leadership in making selections and QNT considers the land in question most suitable to the needs of our membership. QNT believes the project will benefit the City of Seward while enhancing the health and well-being of QNT tribal members and other patients from the surrounding areas. We understand that the CRHC will create more than 24 new jobs and boost the local economy by increased year-round convur aer spending secondary to the influx of new jobs and the resulting collection of sales, bed, and property takes. Chugachmiut's local spending for utilities and sales tax will increase due to ownership and operation of a facility almost three times the size of the space they are leasing now for the North Star Health Clinic. We were informed that the number of itinerants cycling through Seward in support of the CRHC will also bring a year-round increase to the community through hotel, restaurant and shopping opportunities. Chugachmiut estimates a minimum of 200 lodging days at local hotels plus per diem spent at local restaurants and other local vendors. Key benefits include bringing in more than 60 million in federal funding to Seward over the next 20 years; new jobs through the hiring of local contractors and construction personnel. Additional benefits include 38 permanent jobs in Seward and improved access to healthcare for under -served populations such as ours, 1 Te P.O. Box 1467 • 221 Third Avenue - Seward, Alaska 99664 - Tel: 907-224-3118 - Fax: 907-224-5874 Again, we strongly advise the City Council to sell a small portion of its land assets to Chugachmiut thereby assuring that Qutekcak tribal members receive critical medical services. Sincerely. Dolly, —Wiles, Tribal Administrator 1717 MACSWAIN ASSOCIATES LLC 4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503 APPRAISAL REPORT City of Seward Land: 144,184± SF (3.31 ± Acres) South Portion of Lot 7A, Fort Raymond Subdivision Replat No. 1 2109 Dimond Blvd., Seward, Alaska u Dimond Boulevard A. Appraised Land 144,184± SF (3.31± Acres) WW Date of Value: July 8, 2021 File No. 21-3547 Submitted To: Janette Bower, City Manager City of Seward PO Box 167 Seward, AK 99664 Is&E MacSwain Associates LL C 4401 Business Park Blvd., Suite 22 Anchorage, Alaska 99503 Phone: 907-561-1965 Fax: 907-561-1955 s. macswain(?�macswain. com July 19, 2021 Janette Bower, City Manager City of Seward PO Box 167 Seward, AK 99664 Re: City of Seward Land: 144,184± SF (3.31± Acres) South Portion of Lot 7A, Fort Raymond Subdivision Replat No. 1 2109 Dimond Blvd., Seward, Alaska Dear Ms. Bower: We have prepared an Appraisal Report of the above -referenced commercial land fronting the Seward Highway in Seward, Alaska. The appraised parcel consists of 144,184± square feet or 3.31± acres, which is legally part of an 11-acre tract. The property was formerly used as the United States Air Force Recreation Center, and any remaining above -grade improvements are excluded from the valuation. It is a hypothetical condition of the appraisal that the appraised 3.31± acres is legally separated and developable to its highest and best use. The purpose of the appraisal is to assist the client with a potential sale of the subject 3.31± acres. The type of value estimated is market value. The property rights appraised is the fee simple estate. The report is prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). Based on the data, reasoning, and analysis that follows, the market value of the appraised property, as of July 8, 2021, is estimated as follows. SEVEN HUNDRED FIFTY THOUSAND DOLLARS $750,000 The appraisal report is subject to the following language. This appraisal was performed following public awareness that COVID-19 was affecting residents in the United States. At the time of the appraisal, COVID-19 was having widespread health and economic impacts. The effects of COVID-19 on the real estate market in the subject neighborhood were not yet measurable based on reliable data. The analyses and value opinion in this appraisal are based on the data available to the appraiser at the time of the assignment and apply only as of the effective date indicated. No analysis or opinions contained in this appraisal should be construed as predictions of future market conditions or value. 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 119 MacSwain Associates LLC We direct your attention to the Scope of Work, Certificate of Appraisal, and Assumptions and Limiting Conditions for an explanation of restrictions and limitations of this report. We also direct your attention to the hypothetical condition of the appraisal. Finally, we direct your attention to the limiting language regarding COVID-19, which succeeds the Assumptions and Limiting conditions in the addendum. If you have any questions, please contact our office. Respectfully submitted, Alex Kleinke State of Alaska Certificate No. 148873 Steve MacSwain, MAI State of Alaska Certificate No. 42 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 120 MacSwain Associates LLC Appraiser Certification The undersigned certifies that to the best of their knowledge and belief: 4 The statements of fact contained in this report are true and correct. 4 The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 4 We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. 4 We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 4 We have not performed any services as an appraiser or in any other capacity, regarding the property that is the subject of this report, within the three-year period immediately preceding acceptance of this assignment. 4 Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 4 Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 4 The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 4 The reported analyses, opinion, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 4 The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 4 Alex Kleinke inspected the property on July 8, 2021. Steve MacSwain, MAI is familiar with the property from other appraisal assignments in Seward. 4 No one provided significant real property appraisal assistance to the persons signing this certification. 4 As of the date of this report, Alex Kleinke and Steve MacSwain, MAI are certified General Real Estate Appraisers in the State of Alaska and have completed the education requirements through June 2023. 4 As of the date of this report, Steve MacSwain, MAI has completed the Standards and Ethics Education Requirements for Designated Members of the Appraisal Institute. 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 121 MacSwain Associates LLC 4 As of the date of this report, Alex Kleinke has completed the Standards and Ethics Education Requirements for Practicing Affiliates of the Appraisal Institute. 4 As of the date of this report, Steve MacSwain, MAI has completed the continuing education program for Designated Members of the Appraisal Institute. 4 As of the date of this report, Alex Kleinke has completed the continuing education program for Practicing Affiliates of the Appraisal Institute. Steve MacSwain, MAI State of Alaska Certificate No. 42 7119121 Alex Kleinke Date State of Alaska Certificate No. 148873 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 122 MacSwain Associates LLC Table of Contents Title Page Transmittal Letter Appraiser Certification Table of Contents Appraisal Summary Chapter 1: Definition of the Appraisal Problem 5 Chapter 2: Seward Area and Market Summary 9 Chapter 3: Neighborhood Description and Analysis 13 Chapter 4: Site Description and Analysis 15 Chapter 5: Highest and Best Use Analysis 18 Chapter 6: Land Valuation - Sales Comparison Approach 19 Addendum Assumptions and Limiting Conditions Hypothetical Condition Statement on COVID-19 Appraiser Qualifications 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 123 MacSwain Associates LLC Appraisal Summary Value Type: Market value Property Type: Commercial land Property Rights Appraised: Fee simple estate Location: Northwest corner of Seward Highway and Aspen Lane, just west of Dimond Boulevard, near Seward Highway MP 2, approximately one mile north of the Seward Small Boat Harbor, Seward, Alaska Legal Description: South Portion of Lot 7A, Fort Raymond Subdivision Replat No. 1, Plat No. 87-12. Tax Parcel No: 145-026-07 (portion) Physical Address: 2109 Dimond Boulevard, Seward, Alaska Property Owner: City of Seward (per KPB) Zoning: AC — Auto Commercial Site Description: Irregular -shaped parcel containing 144,184± square feet or 3.31± acres per client Topography: Level and slightly below Seward Highway grade, near grade with Aspen Lane Access/Frontage: 448± feet on Seward Highway, 125± feet on Aspen Lane, minimal on Dimond Boulevard Utility Service: Public water, sewer, electricity, and telephone Soil and Subsurface Based on observations of surrounding development, soils Conditions: appear to be suitable for development Hazardous Substances: None known Wetland Designation: None Flood Hazard Restrictions: Zone X, an area outside the 0.2% annual chance floodplain Easements and Restrictions: Per plat 87-12: 30-foot utility easement along south/east boundary, 10-foot utility easement along east boundary, 20- foot sewer easement along south/east portion, underground electric easement minimally impacts center/west corner Sale/Lease History: No known sales or leases of property in past three years 21-3547 South Portion ofLot 7A, FortRaymond Subdivision ReplatNo. 1, Seward, Alaska 1 124 MacSwain Associates LLC Highest and Best Use: Extraordinary Assumption: Hypothetical Condition: Date of Property Inspection: Effective Appraisal Date: Date of Report: Commercial development None The appraised 3.31± acres is legally separated and developable to its highest and best use. July 8, 2021 July 8, 2021 July 19, 2021 Market Value Estimate: $750,000 ($5.20/SF) 21-3547 South Portion ofLot 7A, FortRaymond Subdivision ReplatNo. 1, Seward, Alaska 2 125 MacSwain Associates LLC Date: July 8, 2021 Subject Property Photographs Taken By: Alex Kleinke South view from south half of property towards Seward Highway Southwest view of Seward Highway frontage 21-3547 South Portion ofLot 7A, FortRaymond Subdivision ReplatNo. 1, Seward, Alaska 3 126 MacSwain Associates LLC Date: July 8, 2021 Subject Property Photographs Taken By: Alex Kleinke East view of property from west boundary North view of property from south boundary 21-3547 South Portion ofLot 7A, FortRaymond Subdivision ReplatNo. 1, Seward, Alaska 4 127 MacSwain Associates LLC Chapter 1: Definition of the Appraisal Problem Overview We prepare an Appraisal Report that analyzes a 144,184± square foot (3.31± acre) parcel located approximately one mile north of the Seward Small Boat Harbor. Currently, the appraised land is part of an 11-acre parcel owned by the City of Seward. Thus, we invoke a hypothetical condition that the appraised 3.31± acres is legally separated and developable to its highest and best use. The purpose of the appraisal is to assist the City of Seward with selling the subject property to Chugachmiut; however, the City of Seward is the only intended user of this Appraisal Report. The report is intended to comply with the Uniform Standards of Professional Appraisal Practice (USPAP). Value Type Market value Client City of Seward Intended Use of Assist client with selling property to Chugachmiut Appraisal Report Intended User of City of Seward, property owner Appraisal Report Property Inspection July 8, 2021 Date Effective Appraisal July 8, 2021 Date Date of Report July 19, 2021 Identification of Real The appraised property contains 3.31± acres, which is a portion of an Estate Appraised 11-acre tract used as the former United States Recreation Center property. Any remaining above -grade improvements are excluded from 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 5 128 MacSwain Associates LLC the valuation. The Kenai Peninsula Borough identifies the property as Parcel ID 145-026-07 and the physical address as 2109 Dimond Boulevard, Seward, AK. The land fronts the north/west side of Seward Highway, approximately one mile north of the Small Boat Harbor. Definition of The type of value estimated is market value. Market value is defined as Market Value follows. The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. buyer and seller are typically motivated; b. both parties are well informed or well advised, and acting in what they consider their own best interests; C. a reasonable time is allowed for exposure in the open market; d. payment is made in terms of cash in US dollars or in terms of financial arrangements comparable thereto; and e. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. 1 We estimate the market value of the fee simple estate, which is defined Property Rights as follows. Appraised Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.2 I Appraisal ofReal Estate, Fifteenth Edition (2020), by the Appraisal Institute, p. 49. 2 Appraisal ofReal Estate, Fifteenth Edition (2020), by the Appraisal Institute, p. 60. 21-3547 — South Portion ofLot 7A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 6 129 MacSwain Associates LLC Legal Description The property is a portion of an 11-acre parcel. For the purpose of this appraisal assignment, the legal description is as follows: South Portion of Lot 7A, Fort Raymond Subdivision Replat No. 1, Plat No. 87-12. Property Owner Public Records indicate the owner of the appraised property is as follows. City of Seward PO Box 167 Seward, AK 99664-0167 Assessed The property is owned by the City of Seward and exempt from taxation. Value The property's assessment history applies to the entire 11-acre parcel, rather than the appraised 3.31± acres, and is not considered applicable. Three Year Sale and There have been no known sales or leases of the property in the past Lease History three years. Report Type and This Appraisal Report develops the sales comparison approach to Methodology estimate market value. Neither the cost nor the income capitalization approach reflects market behavior for commercial land. Qualitative techniques are used to measure differences between the comparable sales and the subject. The appraisal report is a summary of the appraisers' data, analyses, and conclusions with supporting documentation retained on file. Scope of Appraisal Alex Kleinke of MacSwain Associates, LLC performed the inspection of the appraised property, data collection, and analysis. Steve MacSwain, MAI has observed the property during the course of other Seward appraisal assignments and is familiar with the neighborhood. In addition, Steve MacSwain, MAI administered the appraisal process, reviewed draft appraisals, and concurred with an opinion of value. Preparation of this report encompassed the following scope of work that concluded with an opinion of market value. 4 Inspected the appraised property on July 8, 2021; 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 7 130 MacSwain Associates LLC 4 Discussed the property with Norm Regis, Harbormaster with the City of Seward; 4 Discussed and inspected the property with Jackie Wilde, Community Development Director with the City of Seward; 4 Reviewed aerial mapping indicating appraised property premises provided by City of Seward; 4 Reviewed KPB assessor map 145-026; 4 Reviewed Plat Map 87-12; 4 Reviewed City of Seward Zoning Map and zoning codes; 4 Reviewed City of Seward 2030 Comprehensive Plan Update prepared by PDC Engineers, adopted May 30, 2017; 4 Gathered data from the KPB Assessor's office and State of Alaska Recorder's office regarding ownership, assessments, and general property information; 4 Interviewed Seward real estate Brokers, agents, and property owners regarding land sales; 4 Interviewed Seward market participants regarding current commercial land market conditions, trends, and expectations; 4 Gathered and confirmed information on comparable land sales; 4 Inspected the primary comparable sales we relied upon in our comparative analysis; and 4 Applied the sales comparison approach to arrive at a market value indication. Exposure Time We have collected and analyzed market and economic data that projects real estate trends and activity for similar land. Discussions with Brokers and analysis of similar property sales indicate that a period of approximately 6-9 months prior to our effective date of value is a reasonable exposure period. 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 8 131 MacSwain Associates LLC Clam Gulcho Inlet NiP -'- Chapter 2: Seward Area and Market Summary Overview We present a summary analysis of factors that define the socio- economic factors defining the Seward economy and real estate market. The map below depicts Seward location within Southcentral Alaska. Seward is located at the head of Resurrection Bay, on the southeast side of the Kenai Peninsula. It lies 70 air miles south of Anchorage or 126 miles via the Seward Highway. Seward has an ice -free port with year- round access to the Alaska Railroad. Location Map tN Anchorage Anchorage �., �Tyonek U N I T E D S T A T E S Whittier Nikiski o Salamatof Kenai oSterling Soldotna Bsoldotna Cohoeo Landing r �9 1 Kenai National Wildlife Refuge Seward Seward Nation non iordS Park X, oAnohor Dint Kachemak oC ity Cooper Chugach State Park ohenega Population Within city limits, Seward's 2020 population estimate was 2,509, representing stability over the past decade. Community growth areas are principally rural residential neighborhoods to the north outside city boundaries. According to the State of Alaska Division of Community and Regional Affairs (DCRA), a table containing Seward's historic population follows. 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2,509 2,545 2,569 2,512 2,663 2,740 2,768 2,487 2,752 2,746 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 9 132 MacSwain Associates LLC The actual contributory population to the Seward economy is 4,700± residents with the inclusion of rural residential districts located outside of city boundaries. Moreover, the seasonal population swells to nearly 6,000± during the prime summer months. Seward Employment Seward employment is gradually shifting from trades and fishing to leisure, hospitality, and government. Although Seward employment is projected to increase, we anticipate unemployment to remain above the statewide rate due to the seasonal character of the economy. Because of high demand for seasonal employment, part of the work force resides outside of the Seward residential sphere. Seward Area Map S �Y Small Boat Seward %4 -i Harbor Townsite SMIC Seward Economic Ice -free deep -water port facilities integrated with road and rail service Sectors to interior Alaska drive the Seward economy. The port is home to a commercial fishing fleet, and is the impetus for thriving tourism and recreation. These latter economic sectors have enhanced retail and service industries as well as increased demand for petroleum products. 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 10 133 MacSwain Associates LLC Diversification of the Seward economy has been a central theme of city management, planning, and infrastructure development over the past few decades. Examples of economic diversification include expansion of the Small Boat Harbor, Alaska Vocational and Technical Center (AVTEC), Aurora Energy Services Coal Terminal (not operating), and the Spring Creek Correctional Facility. Furthermore, construction of a breakwater to protect Seward Marine Industrial Center (SMIC) from prevailing weather and seas will improve the economic viability as a market alternative for shipbuilding and repair. Evolving economic diversification is a stabilizing influence and cause to enhance growth opportunities for corollary industries. Despite the seasonal character of the Seward economy, government, natural resources, health care, and transportation sectors contribute year-round employment. A summary analysis of the primary components of the Seward economy follows. Tourism: Tourism has continued to be a strong economic sector of the Seward Economy since the recovery from the national recession. Over the five-year period from 2014 to 2018, the City of Seward reported a 17% increase in sales tax revenue, and a 31% increase in hotel/motel tax over the same period, with 2019 figures anticipated to grow further. New hotel construction in 2020 has the potential to further increase revenues in future seasons. Cruise ship port calls increased from year to year since 2013 (50 ships) to 2016 (67 ships) to 2019 (87 ships and 95 days with cruise ships in port). Consequently, Seward cruise ship visitation increased by 84 percent over the same period, with 125,000± passengers in 2013 to 230,000± passengers estimated in 2019.3 The 2013 figures represent an average passenger/ship ratio of 2,500 passengers, while 2019 figures indicate 2,640 passengers. The increase is due to not only fuller ships, but also the industry replacing medium- sized cruise ships with larger cruise ships. Conversely, expedition style trips with 100 to 200 passengers are becoming increasingly common. These ships, while lowering the passenger/ship average, offer exclusive, high -cost ecotrips. As this trend continues, passenger volume should continue to increase over the long term, with exception to the substantial decline anticipated for 2020 and 2021 due to the COVID-19 Pandemic. Port Activity: As an industrial port, Seward has not reached the potential that was invested in port infrastructure. However, over the past several years, SMIC has benefited from increased demand for lease property. Companies that commenced leases in SMIC in 2013 and 2014 include Rainbow Fiberglass and Boat Repair and Vigor Alaska. Rainbow has continued to expand their lease footprint, entering into new leases in 3 City of Seward, Comprehensive Annual Financial Reporting. 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 11 134 MacSwain Associates LLC 2016 and 2019. JAG Alaska, Inc. became the new operator at the Seward shipyard after Vigor announced its withdrawal. Additional new lessees in SMIC include SEWMAR, LLC and Hamilton Construction. Established marine industrial uses that enhance economic productivity include bulk fuel storage, ship repair and dry-dock, and fish processing plants. The US Coast Guard has expressed interest in commencing land leases in SMIC, however no official commitments have been made as of early 2021. SMIC recently completed a new $27M± rubble mound breakwater, intended to improve protection and enable moorage of larger ships, with a new dock rounding out recent SMIC construction. Construction: A summary of construction projects that had a measurable effect on the Seward economy include: 4 $30 million Seward Long -Term Care Facility (LTCF) in 2010 4 16,300± square foot, $5 million± Seward Community Library and Museum in 2012 4 $13 million student housing complex for Alaska Vocational Technical Center in 2014 4 Conversion of the 13,500± square foot former Elks Lodge into a brewery/restaurant in 2013 New 80± room hotel on the corner of 4th Avenue and Van Buren Street 4 19,000± square foot special -use marine industrial building located north of the Seward Small Boat Harbor Real Estate Market We anticipate the Seward real estate market to remain stable over the Summary medium and long-term with upward trending prices for properties in high demand and limited supply. Importantly, the real estate market has a direct link to the health of Seward's economic sectors. For example, increases in tourism and recreation cause greater demand for properties that can accommodate cruise ships. These market dynamics will cause upward price pressure. We weighed these market conditions in analyzing the appraised property that benefits from a strategic location fronting the Seward Highway. Short-term uncertainty, especially for the Summer 2021 cruise ship season could dampen the Seward economy, which relies heavily on tourism. An employee shortage has prevented many businesses, primarily restaurants, from operating at full capacity and taking advantage of the return of overland tourism, as hesitancy to travel has diminished. 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 12 135 MacSwain Associates LLC Chapter 3: Neighborhood Summary Overview The subject neighborhood is approximately one mile north of the Small Boat Harbor, bounded by the Seward Highway. The neighborhood is mixed -use in character, with commercial development evident on properties fronting the north side of Seward Highway. The reader is referred to the zoning map below illustrating neighborhood land use and assisting with the description and analysis that follows. City of Seward Zoning Map Neighborhood The neighborhood is situated along the Seward Highway corridor north Description of the Seward Small Boat Harbor. Industrial use comprises the south side of the highway with Leirer Subdivision and Alaska Railroad Corporation land. In the subject's immediate vicinity, commercial development fronts the north side of the Seward Highway extending south to the harbor. Businesses along this corridor include Safeway, Wells Fargo, Tesoro, Shore Side Car Wash, The Cup Espresso, and Saltwood Smokehouse. Just to the north of the subject is the Seward Military Resort. Further north, and to the west, development consists of schools, athletic fields, and parks. 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 13 136 MacSwain Associates LLC While the neighborhood is mixed -use in character and includes a multitude of zoning designations, the land along the Seward Highway is zoned Auto Commercial (AC), a highly regarded zoning designation affording a wide range of uses including office, personal services, retail and residential support which do not detract from residential areas. Summary In summary, with tourism industry as the economic focal point, Seward's outlook is promising. The subject neighborhood is just north of the Seward Small Boat Harbor and benefits from its frontage on the Seward Highway. The effects of the COVID-19 Pandemic have had a measurable effect on the Seward economy, primarily attributed to the loss of jobs and tax revenue. The impact on real estate prices is not yet measureable based on reliable data. No analysis or opinions contained in this appraisal should be construed as predications of future market conditions or value. Based on these factors, the outlook for the subject neighborhood is unpredictable. 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 14 137 MacSwain Associates LLC Chapter 4: Site Description and Analysis Overview Analysis of land describes the characteristics that enhance or detract from its utility or marketability. The site description and analysis is based on our property inspection and review of the Plat Map No. 87-12, aerial, Borough, and other mapping. The plat map below overlaid with the approximate dimensions provided by the client, as well as the aerial mapping on the following pages assist in the description and analysis of the parcel that follows. Site Description Plat Map No. 87-12 tNi ® i....;S /t Appraised Land t �ti 144,184± SF �" Dimond Boulevard s � 4 r � d d Seward Highway a 1 a Aspen Lane err i Location: Northwest corner of Seward Highway and Aspen Lane, just west of Dimond Boulevard, near Seward Highway MP 2, approximately one mile north of the Seward Small Boat Harbor, Seward, Alaska Shape and Land Irregular -shaped parcel containing 144,184± Area: square feet or 3.31± acres Access: Seward Highway (paved, two lane arterial with center turn lane) provides primary access. Secondary access from the south afforded by 21-354 7 — South Portion ofLot 7A, Fort Raymond Subdivision Replat No. 1, Seward, Alaska 15 138 MacSwain Associates LLC Zoning: Frontage and Exposure: Easements and Restrictions: Public Utilities: Topography: Aspen Lane, paved. Dimond Boulevard fronts east boundary but is no longer improved. Legal access is assumed. AC — Auto Commercial, intended to provide areas to accommodate highway -oriented commercial activities such as offices, certain institutional uses, and limited personal services and retail uses requiring substantial outdoor activity, traffic, and parking, and which do not materially detract from nearby residential uses. 448± feet on Seward Highway, 125± feet on Aspen Lane, minimal on Dimond Boulevard Per plat 87-12: 30-foot utility easement along south/east boundary, 10-foot utility easement along east boundary, 20-foot sewer easement along south/east portion, underground electric easement minimally impacts center/west corner Public water, sewer, electricity, and telephone Level and slightly below Seward Highway grade, near grade with Aspen Lane GIS Aerial Map (Kenai Peninsula Borough) 2020 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 16 139 MacSwain Associates LLC Vegetation: Soil Conditions: Wetland Designation: Flood Hazard: Environmental Conditions: Site Improvements: Site Utility: Partially cleared due to previous use with some vegetation remaining Based on observations of surrounding development, soils appear to be suitable for development None noted on KPB Wetland Mapper Zone X, an area outside the 0.2% annual chance floodplain The existence of any hazardous material or other type of environmental contamination, which may or may not be present on the property, was not observed by the appraisers nor do the appraisers have any knowledge of the existence of such substances. Our value conclusion assumes that the property is free of environmental and hazardous contaminants. Above -grade improvements excluded from valuation The site is suitable for commercial -related development. Due to highway frontage, exposure, and Auto Commercial zoning, coupled with relative proximity to other commercial areas including the Small Boat Harbor, the site is well suited for commercial development. 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 17 140 MacSwain Associates LLC Chapter 5: Highest and Best Use Analysis Overview The parcel is located within the City of Seward, subject to zoning regulations. Zoning is AC, Auto Commercial. According to the City of Seward Zoning Code, this designation was: Intended to provide areas to accommodate highway -oriented commercial activities such as offices, certain institutional uses, and limited personal services and retail uses requiring substantial outdoor activity, traffic and parking, and which also serve the offices and nearby residential areas, and which do not materially detract from nearby residential areas. The AC District allows a wide variety of uses, consisting of commercial, residential, institutional, or industrial development alternatives. Some uses require administrative or conditional use permits. The appraised parcel contains 144,184± square feet or 3.31± acres, and benefits from 448± feet of frontage on the Seward Highway. Importantly, the lot has direct highway access from both north and south directions due to the center turn lane. Secondary access is afforded by Aspen Lane. The site is level, slightly below grade the Seward Highway, and has been partially cleared of vegetation. Public water, sewer, electricity, and telephone are available. Surrounding development varies; however, commercial development is evident on parcels fronting the north side of the Seward Highway. The location one mile north of the Small Boat Harbor coupled with highway frontage encourages commercial development. Determining the specific land use alternative that maximizes productivity is a difficult analytical task. Based on highway frontage, relative proximity to the Seward Small Boat Harbor and other commercial areas, commercial development is considered financially feasible and is the highest and best use of the property, as vacant. The most probable user is an owner -user. Highest and Best Use As Vacant Commercial Development 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 18 141 MacSwain Associates LLC Chapter 6: Land Valuation - Sales Comparison Approach Overview The sales comparison approach is a systematic procedure of estimating the subject's market value by comparing it directly to property sales afforded similar physical and economic character. The approach is founded on the principle of substitution, theorizing value is a function of a knowledgeable investor's (buyer) intent to pay no more for a specific property than the cost of acquiring an alternative property offering similar utility (economic satisfaction). The sales comparison approach is the best approach for valuing vacant land. Comparative Market Our sales search focused on vacant land with similar zoning, physical, Analysis and economic character to the subject, located in the immediate neighborhood. This search criteria produced a paucity of sale data, compelling us to expand our search to alternatives locations with varying zoning designations. This search produced four transactions that transpired in from 2016 to 2018. Of these, three transactions are land sales and one transaction is a land lease on ARRC land. We also analyzed a land listing in the immediate subject neighborhood. The primary land sales we relied upon are listed in the table below. Additional details of the comparables are retained on file. Summary of Primary Land Sales No. Location Zone Sale Date Sale Price Size (SF) $/SF 1 Southwest corner of Seward Highway and AC N/A $590,000 250,034 $2.36 Dieckgraeff Road (Listing) 2 Northeast corner of Seward Highway and N/A 11/18 $130,000 74,923 $1.74 Seward Park Drive 3 North side of Seward Highway between Seward N/A 7/18 $85,000 98,881 $0.86 Park Drive and South Fork Lane 4 West side of First Avenue at corner of Madison INS 11/17 $200,000 41,818 $4.78 Street 5 Southeast corner of Port Avenue and Fourth HC 10/16 $300,000 22,194 $13.52 Avenue Northwest corner of Seward Highway and AC 7121 -- -- 144,184 -- -- Aspen Lane, one mile north of SSBH (Subject) 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 19 142 MacSwain Associates LLC Elements of The elements of comparison that have the greatest influence on market Comparison behavior and the price paid for similar land in Seward is location and physical character, including clearing/grading, frontage/access, and size. We use a qualitative comparison technique that rates elements of comparison as superior, inferior, or similar. Comparable Land Sales Map Land Listing 1 Land Listing 1 is a land listing of a property just north of the subject fronting the Seward Highway. The irregular -shaped parcel consists of two lots, which total 250,034± square feet or 5.74± acres. The property has public electricity and telephone, but lacks water and sewer. Zoning is AC, Auto Commercial. The property has been listed on and off over the years, and was reoriented as a result of the Seward Levee Project. Prior to the listing, a recorded easement vacation removed a bisecting utility easement. Most recently, the property was exposed to the market for 200 days at $590,000 or $2.36 per square foot before the listing was 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 20 143 MacSwain Associates LLC cancelled and converted to a `for sale by owner'. The listing Broker indicated no written offers were received, but there was initial interest. By comparison, this property has additional land area, lacks public water and sewer, and is slightly farther from the Seward commercial area. Moreover, portions of the site are subject to flooding per FEMA. These factors require upward adjustments. Conversely, it has greater highway frontage. Importantly, as this is a listing that did not culminate in a closed transaction, we report it as information only. Land Sale 2 Land Sale 2 is the November 2018 sale located on the northeast corner of the Seward Highway and Seward Park Drive, approximately 3.5 miles north of the Small Boat Harbor. The irregular -shaped lot contains 74,923± square feet or 1.72± acres. Situated outside of Seward City Limits, the parcel is unzoned. The listing Broker indicated there was a 700 square foot shop on the property connected to electric service, but that power was turned off. Additionally, it was revealed the well and septic on -site likely did not meet ADEC standards, and the well lacked a well pump. The property was exposed to the market for 104 days, originally listed for $150,000. The sale price of $130,000 indicates a unit value of $1.74 per square foot. By comparison, downward adjustments are necessary for size differential and improvements on the property at the time of sale. Conversely, overriding upward adjustments are required for lack of public water and sewer, and inferior location. Thus, Land Sale 2 indicates a unit value greater than $1.74 per square foot for the subject. Land Sale 3 Land Sale 3 is the July 2018 sale located at the north side of the Seward Highway between Seward Park Drive and South Fork Lane, approximately 3.5 miles north of the Small Boat Harbor. The irregular - shaped lot contains 98,881± square feet or 2.27± acres. Situated outside of Seward City Limits, the parcel is unzoned. The listing Broker indicated the lot has been cleared, and a building pad was prepped for a structure approximating 40 feet by 70 feet. It was also revealed an engineered septic system would be required to facilitate development. The property was exposed to the market for 107 days, originally listed for $95,000. The sale price of $85,000 indicates a unit value of $0.86 per square foot. Subsequent to the sale, a dental clinic was constructed on the site. By comparison, downward adjustments are necessary for size differential and site improvements at the time of sale. Conversely, overriding upward adjustments are required for lack of public water and 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 21 144 MacSwain Associates LLC sewer, and inferior location. Thus, Land Sale 3 indicates a unit value greater than $0.86 per square foot for the subject. T.and qn]" d Land Sale 4 is November 2017 located on the west side of First Avenue at the corner of Madison Street, just north of the Seward Hospital. The nearly rectangular -shaped lot contains 41,818± square feet or 0.96± acre. Access is from First Avenue, a paved, two-lane road running north/south on the west side of the townsite. Zoning is INS, Institutional, which also allows some commercial uses. At the time of sale, the property was vacant as the original structure had been razed prior to 2012. The property was exposed to the market for 108 days before selling at the list price of $200,000. This indicates a unit value of $4.78 per square foot. The motivation for the purchase was for eventual medical -related expansion due to its adjacency to the hospital campus. By comparison, downward adjustments are necessary for size differential and shape. Overriding upward adjustments are necessary for lack of highway frontage and zoning, which influence commercial potential. The net adjustment is upward, indicating a unit value greater than $4.78 per square foot for the subject. Land Transaction 5 Land Transaction 5 is the October 2016 lease of ARRC land located at the north end of the Seward Small Boat Harbor on the southwest corner of Port Avenue and Fourth Avenue. The nearly -trapezoidal shaped site contains 22,194± square feet or 0.51± acre, including a small portion encumbered by public use easements. Access is from paved, two-lane streets and all public utilities are available. Zoning is HC, Harbor Commercial. The property is currently used for restaurant and tourism - oriented uses, benefitting from its proximity to the harbor and railroad depot. The lease rate of $24,000 per year indicates a capitalized value of $300,000 using an 8% rental rate specified in the lease. The lease is subject to five-year renewals based on an MAI appraisal. It indicates a unit value of $13.52 per square foot. By comparison, downward adjustments are required, primarily to reflect the superior location and size differential. Thus, a unit value less than $13.52 per square foot is indicated for the subject. 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 22 145 MacSwain Associates LLC Reconciliation of Presented below is a rating grid and analysis of the comparables used in Comparative Market comparative analysis. Analysis No. $/SF Rank Net Adjustment 5 $13.52 Superior Subject -- -- -- -- -- -- 4 $4.78 Inferior T 2 $1.74 Inferior T 3 $0.86 Inferior T The comparables indicate a wide value range from $0.86 to $13.52 per square foot. Land Sales 2, 3, and 4 are rated inferior indicating a unit value greater than 4.78 per square foot. Conversely, Land Transaction 5 (which is a land lease) is rated superior indicating a unit value significantly less than $13.52 per square foot. Land Listing 1 is not a closed sale and presented as information only, but suggests a price in excess of $2.36 per square foot. After comparative analysis and making the necessary adjustments, we conclude with a unit range from $5.00 to $5.50 per square foot. This develops the following indicators. 144,184 SF X $5.00/SF = $720,920 144,184 SF X $5.50/SF = $793,012 Based on the preceding analysis, we reconcile with a value near the middle of the range. Therefore, the market value of the appraised land, as of July 8, 2021, is estimated as follows. Market Value Estimate $750,000 Marketing and Estimated 6 to 12 months Exposure Time 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 23 146 �rrnrmr�mm 147 MacSwain Associates LLC Assumptions and Limiting Conditions This appraisal is subject to the following assumptions and limiting conditions. 4 No responsibility is assumed for the legal description provided or for matters pertaining to legal or title considerations. Title to the property is assumed to be marketable unless otherwise stated. 4 The property is appraised free and clear of all liens or encumbrances unless otherwise stated. 4 The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. 4 All maps, plot plans, and other illustrative material are believed to be accurate, but are included only to help the reader visualize the property. 4 It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 4 It is assumed the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report. 4 It is assumed the property conforms to all applicable zoning, land use regulations, and platting restrictions unless the nonconformity is identified, described, and considered in the appraisal report. 4 Possession of this report, or a copy thereof, does not carry with it the right of publication. 4 The appraisers, by reason of this appraisal, is not required to give consultation or testimony or to be in attendance in court with reference to the property in question unless arrangements have been previously made. 4 Neither all nor any part of the contents of this report shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraisers. 4 The existence of any hazardous material or other type of environmental contamination, which may or may not be present on the property, was not observed by the appraisers nor do the appraisers have any knowledge of the existence of such substances. However, the presence of these substances may affect the value of the property. Therefore, the client is urged to retain an environmental assessment for discovery and evaluation. Hypothetical Condition This appraisal is subject to the following hypothetical condition. 4 It is a hypothetical condition of this appraisal that the appraised 3.31 acres is legally separated and developable to its highest and best use. 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 148 MacSwain Associates LLC Statement on COVID-19 The appraisal report is subject to the following language. 4 This appraisal was performed following public awareness that COVID-19 was affecting residents in the United States. At the time of the appraisal, COVID-19 was having widespread health and economic impacts. The effects of COVID-19 on the real estate market in the subject neighborhood were not yet measurable based on reliable data. The analyses and value opinion in this appraisal are based on the data available to the appraiser at the time of the assignment and apply only as of the effective date indicated. No analysis or opinions contained in this appraisal should be construed as predictions of future market conditions or value. 21-3547—South Portion ofLot 7A, Fort Raymond Subdivision ReplatNo. 1, Seward, Alaska 149 MacSwain Associates LLC 4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503 Appraiser: Alex Kleinke State of Alaska, Certified General Real Estate Appraiser — License 4148873 Education: Bachelor of Business Administration, Finance, University of Alaska Anchorage (2009) Master of Business Administration (MBA), University of Alaska Anchorage (2012) Professional Experience: 2009 to Present — MacSwain Associates LLC Real estate appraiser of all property types throughout Alaska including commercial, industrial, land, rights -of -way, and special-purpose properties. Appraisals performed for financing, right-of-way acquisitions, conservation easements, leasing, insurance, taxation, estate planning, investment analysis, and buy -sell decisions. Appraisal Education: The following is a list of recently completed appraisal courses and seminars. 2021 Analyzing Operating Expenses by the Appraisal Institute, Online 2021 Business Practices and Ethics by the Appraisal Institute, Online 2020 7-Hour National USPAP 2020-2021 Update Course by the Appraisal Institute, Anchorage, AK 2017 Business Practices and Ethics by the Appraisal Institute, Online 2017 7-Hour Equivalent USPAP Update Course by the Appraisal Institute, Online 2016 Advanced MarketAnalysis and Highest and Best Use by the Appraisal Institute, Chicago, IL 2016 General Sales Comparison Approach by the Appraisal Institute, Chicago, IL 2015 Real Estate Finance, Statistics, and Valuation Modeling by the Appraisal Institute, San Diego, CA 2015 General Report Writing and Case Studies by the Appraisal Institute, Las Vegas, NV 2015 General Income Approach Parts I and II by the Appraisal Institute, San Diego, CA 2013 The Discounted Cash Flow Model: Concepts, Issues, and Apps. by the Appraisal Institute, San Diego, CA 2013 General Appraiser Site Valuation and Cost Approach by the Appraisal Institute, Fort Lauderdale, FL 2012 General Market Analysis and Highest and Best Use by the Appraisal Institute, San Diego, CA 201115-Hour National USPAP Course by the Appraisal Institute, Anchorage, AK 2010 Basic Appraisal Procedures by the Appraisal Institute, Anchorage, AK 2010 Basic Appraisal Principles by the Appraisal Institute, Anchorage, AK Sample of Significant and Project Assignments: 2020-21 — Eight right-of-way appraisals for Knik-Goose Bay Road Reconstruction Project 2020 — 43 City of Seward Lease Parcels including commercial, industrial, and marine -type properties 2020 — 41 City of Kenai Lease Parcels including aviation, commercial, industrial, and marine -type properties 2019 — City of Kodiak Lease Parcels including aviation and communication sites, seaplane base, and shipyard 2018 — Fractional interest of land and sandwich leases for Anchorage hotel and fuel station properties 2017 — Pacific Spaceport Complex, market rent of launch complex facilities within PSCA on Kodiak Island 2016-2017 — Provided insurable value project appraisals for properties in Utgiagvik, Dillingham, Iliamna, Kotzebue, Nome, Cordova, Naknek, Angoon, Haines, Hoonah, Juneau, Kake, Anchorage, Bethel, and Yakutat 2015 — 40 City of Seward Lease Parcels including commercial, industrial, and marine -type properties 2015 — 97 City of Kenai Lease Parcels including aviation, commercial, industrial, and marine -type properties 2015 — Assisted with cost estimate to acquire lands to develop proposed AKLNG from Pt. Thomson to Nikiski 2014-2020 — 50+ Right-of-way appraisals for Parks Highway MP 48.8 to 52.3 Reconstruction Project 2014 — Assisted with project management and appraisals of Nikiski properties for Alaska LNG acquisitions 2012 — Assisted in the income analysis portion of the Trans Alaska Pipeline System (TAPS) 2010-2021 — Alaska Railroad Corporation (ARRC) land lease appraisals in Anchorage, Seward, and Whittier Professional Affiliation: Practicing Affiliate — Appraisal Institute ffense�:1 EState of Alaska Effective: 512312021 Expires:0613012023 Department of Commerce, Community, and Economic Developme Division of Corporations, Business, and Professional Licensing Board of Certified Real Estate Appraisers Licensee: ALEXANDER H KLEINKE License Type: Certified General Real Estate Appraiser Status: Active Commissioner: Julie Anderson MacSwain Associates LLC 4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503 Appraiser: Steve MacSwain, MAI Member of Appraisal Institute - No. 5700 State of Alaska, Certified General Real Estate Appraiser - No. 42 Professional Experience: 1986 to Present - MacSwain Associates LLC 1976 to 1986 - Appraisal Company of Alaska - President 1970 to 1975 - Real Estate Services Corporation — Appraiser 1969 to 1970 - State of Alaska Department of Highways - Right of Way Agent Real estate appraiser and consultant of all property types throughout Alaska including commercial, industrial, subdivisions and special-purpose properties. Appraisals have been performed for financing, leasing, insurance, condemnation, taxation, property damages, investment analysis, and buy -sell decisions. Appraisals include valuation of both real property and business enterprises. Professional experience totals 49 years. Life-long Alaskan resident of Alaskan Native descent. Education: Bachelor of Business Administration, Finance (1969), University of Alaska Fairbanks Appraisal Education: The following is a list of completed appraisal courses and seminars. 2021 Cool Tools: New Technologyfor Real Estate Appraisers by the Appraisal Institute 2021 Desktop Appraisals (Bifurcated, Hybrid) and Evaluations by the Appraisal Institute 2021 Hot Topics & Myths in Appraiser Liability by LIA Administrators & Insurance Services 2020 Uniform Standards of Professional Appraisal Practice Update by the Appraisal Institute 2019 How Tenants Create or Destroy Value: Leasehold Valuation and its Impact on Value by the Appraisal Institute 2017 — Appraising Environmentally Contaminated Properties by the Appraisal Institute 2017 Residential & Commercial Valuation of Solar by the Appraisal Institute 2017 Right of Way Acquisition for Pipeline Projects by the International Right of Way Association 2015 Litigation Appraising: Specialized Topics and Applications by the Appraisal Institute 2015 Business Practices and Ethics by the Appraisal Institute 2013 Complex Litigation Appraisal Case Studies by the Appraisal Institute 2013 Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) by the Appraisal Institute 2012 Appraisal Curriculum Overview by the Appraisal Institute 2010 Reviewing Appraisals in Eminent Domain by the International Right of Way Association 2010 Commercial Appraisal Engagement and Review Seminar for Bankers and Appraisers by the Appraisal Institute 2009 — The Appraiser as an Expert Witness: Preparation and Testimony by the Appraisal Institute 2009 Attacking and Defending an Appraisal in Litigation by Whitmer Education 2008 Uniform Standards of Professional Appraisal Practice by the Appraisal Institute 2007 Business Practices and Ethics by the Appraisal Institute 2007 Eminent Domain Law for Right of Way Professionals by the International Right of Way Association 2007 Appraisal Review for Federal Aid Programs by the International Right of Way Association 2007 Analyzing Operating Expenses by the Appraisal Institute 1969-2006: Numerous appraisal classes pertaining to principles, income capitalization, cost analysis, sale comparison approach, and highest and best use analysis by the Appraisal Institute, Society ofReal Estate Appraisers, International Right -of -Way Association, International Association of Assessing Officers, and Marshall Valuation Service Membership and Organizations: Member of Appraisal Institute — No. 5700, International Right of Way Association (IRWA), and Building Owners and Managers Association (BOMA) Public Service: Past Chairman of the State Board of Certified Appraisers Past Member of Board of Equalization, Municipality of Anchorage, National Experience Review Committee of the Appraisal Institute, and Regional Ethics and Counseling Panel of the Appraisal Institute Past President of Alaska Chapter 57 of the Appraisal Institute Significant Assignments: 4 Appraised Pacific Spaceport Complex -Alaska (PSCA) land and facilities for Alaska Aerospace Corporation on Kodiak Island. 4 Appraised proposed LNG Pipeline, a FERC-regulated 860-mile pipeline transporting liquefied natural gas. 4 Appraised the Trans -Alaska Pipeline System, a FERC-regulated 800- pipeline that transports crude oil from Prudhoe Bay to Valdez, for TAPS ownership. 4 Appraised remote lands (65,000± acres) owned by three Native corporations damaged by the Selendang Ayu grounding and subsequent oil spill. 4 Appraised Calais Company, Inc., a real estate holding company consisting of 39 commercial parcels in Anchorage. 4 Principal real estate consultant and expert witness for all lands affected by the Exxon Valdez oil spill. Project involved over 2,000,000 acres of remote land and nearly 2,000 private property owners. 4 Appointed as a representative of a three -member panel that analyzed and valued over 1,000,000 acres and 8,000 parcels for the Mental Health Lands Settlement. Contract assessor for the North Slope Borough, Kodiak Island Borough, City of Nome, and the City of Valdez. Represented Seibu Alaska, Inc. (Alyeska Resort and Alyeska Prince Hotel) in preparing of their property tax appeal with the Municipality of Anchorage that resulted in a $65 million reduction in assessed value. 4 Appraised submerged tideland parcels and wetlands parcels located in Womens Bay on Kodiak Island for the purpose of an exchange between Koniag, Inc. and U.S. Fish and Wildlife Service. 4 Appraised Common Carrier Pipeline right-of-ways leased and operated by BP Transportation Alaska and ConocoPhillips Alaska. 4 Appraised 3,600 acres consisting of the former Adak Naval Air Station and Submarine Base conveyed to the City of Adak and the State of Alaska. Expert Witness Experience: Steve MacSwain, MAI is qualified as an expert witness in both the United States Federal Court and the State of Alaska Superior Court. Steve has testified as an expert witness in State and Federal courts. In addition, Steve has testified as expert witness in numerous Alaskan municipal tax courts, public hearings, and depositions on matters related to real property. Arbitrator Experience: Appointed a Master by the Superior Court of Alaska and Municipality of Anchorage to serve as an arbitrator in determining just compensation. APRG42State of Alaska ENectivtive: Bi8t2021 f2021 Ekpires: 0513W2023 Department of Commerce, Community, and Economic Development Division of Corporations, Business, and Professional Licensing Board of Certified Real Estate Appraisers Licensee. STEVEN JAMES MACSWAIN License Type: Certified General Real Estate Appraiser Status: Active Comrnhssioner: Julie Anderson 4ENIr`.J 4w r Geographic 7 Information ©g 0 0 ' 144 North Binkley Street, Soldotna, Alaska 996(-M Chugachmiut Possible Land Sale Layout Legend • Mileposts City Limits Highways Major Roads Roads Town Medium Volume Town Low/Seasonal; Other Proposed Parcels Image ■ Red: Band-1 ❑ Green: Band-2 ■ Blue: Band-3 This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. It is not to be used for navigation. Notes Actual layout will be negotiated through Purchase and Sale Agreement DATE PRINTED: 3/27/2021 154 3.31 acres- Vacant Land located in in Seward, Alaska FOR Date of Appraisal Chugachmiut July 7, 2021 1840 Bragaw Street; Suite 110 Anchorage, Alaska, 99508 Dates of Valuation "As Is" — June 16, 2021 Attn. : Charlie Sink or Kelley Baker Date of Inspection June 16, 2021 B-SBC FILE No. 21-052 BY Brian Z. Bethard, MAI General Real Estate Appraiser Wert. #281) Ryan McGillivray General Real Estate Appraiser Wert. #970) Black -Smith, Bethard and Carlson, LLC 1199 E. Dimond Boulevard, Suite 200 Anchorage, Alaska, 99515 Black Smith, Bethard & Carlson, LLC. 155 PART I - INTRODUCTION 116 Black Smith, Bethard & Carlson, LLC. Appraisers 1199 Dimond Blvd, Suite 200 Anchorage, Alaska 99515 Phone:907-274-4654 Fax:907-274-0889 BLACK -SMITH, BETHARD & CARLSON, LLC E-mail:bsr@ak.net July 7, 2021 Client: Chugachmiut 1840 Bragaw Street; Suite 110 Anchorage, Alaska, 99508 Attn. : Charlie Sink or Kelley Baker RE: 3.31 acres- Vacant Land located in in Seward, Alaska Charlie Sink or Kelley Baker: In fulfillment of our agreement as outlined in the letter of engagement dated April 29, 2021, we submit our appraisal report of the estimated market value of the fee simple interest in the above referenced property. Fee Simple Market Value Date of Value Value Conclusion June 16, 2021 $577,000 Our appraisal is qualified by certain definitions, assumptions, limiting conditions and certifications. A copy of the appraisal instructions is contained in the Addenda. The value opinions are stated in terms of cash and a market exposure period of one year. The appraisal conforms to and satisfies the requirements of the Uniform Standards of Professional Practice (USPAP) and Volume 12, Code of Federal Regulations, Part 34, Subpart C. The report is intended to comply with requirements set forth under Standards Rule 2-2(a) of USPAP (2012-2013) for an appraisal reportin a self -contained format. Sincerely, BLACKSMITH, BETHARD & CARLSON, LLC. 113 ' Brian Z. Bethard, MAI General Real Estate Appraiser (Cert #281) Ryan McGillivray, Appraiser General Real Estate Appraiser (Cent #970) 2 157 Blacksmith, Bethard and Carlson LLC. CERTIFICATION 4 EXECUTIVE SUMMARY 5 NATURE OF THE ASSIGNMENT 9 SCOPE OF WORK 10 EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS 11 SUBJECT PHOTOGRAPHS 13 AREA OVERVIEW 15 NEIGHBORHOOD DESCRIPTION 17 SITE DESCRIPTION 19 MARKET ANALYSIS 24 HIGHEST AND BEST USE 25 LAND VALUATION 26 AnnFNnA Engagement Letter Comparable Data Write -Ups Underlying Assumptions and Limiting Conditions Qualifications of Appraisers 3 Blacksmith, Bethard and Carlson LLC. 158 The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and is my personal, impartial, and unbiased professional analyses, opinions, and conclusions. We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and the Standards of Professional Practice of the Appraisal Institute. This report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. Ryan McGillivray made a personal inspection of the property that is the subject of this report No one provided significant real property appraisal assistance to the persons signing this certification As of the date of this report, Brian Z. Bethard, MAI and Ryan McGillivray have completed the continuing education program of the Appraisal Institute. Brian Z. Bethard, MAI is certified by the State of Alaska as a General Real Estate Appraiser (Certificate No. 281). Ryan McGillivray is certified by the State of Alaska as a General Real Estate Appraiser (Certificate No. 970). Brian Z. Bethard, MAI and Ryan McGillivray have the appropriate knowledge and experience necessary to complete this appraisal assignment competently. We have not performed services as an appraiser or in any other capacity regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Dated July 7, 2021 Brian Z. Bethard, MAI General Real Estate Appraiser (Cert. # 281) 11 Ryan McGillivray, Appraiser General Real Estate Appraiser (Cert #970) `&V Blacksmith, Bethard and Carlson LLC. Property Appraised A 3.31 acre portion of an ±11 acre City of Seward parcel identified by the Kenai Peninsula Borough (KPB) Assessor as: • Tax ID# 1450267 • Lot 7A, Fort Raymond Subdivision Re -Plat #1 in TIN, R1W, S34, SM As authorized, we developed the appraisal according to the hypothetical con( tlonl that the acquisition area is platted as -proposed on the date of the inspection. "A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of the analysis." Uniform Standards of Professional Practice. Note: Reliance on a hypothetical condition could affect the assignment results. 5 Blacksmith, Bethard and Carlson LLC. 160 Owners of Record The City of Seward per KPB records. Property Rights Appraised Fee Simple Estate Date of Appraisal: July 7, 2021 Date of Inspection: June 16, 2021 Date of Valuation: June 16, 2021 (As -Is) Highest & Best Use: Conforming commercial development Value Conclusions Date of Value Fee Simple Market Value June 16, 2021 m Value Conclusion $577,000 Blacksmith, Bethard and Carlson LLC. PART II - PREMISES OF THE APPRAISAL Blacksmith, Bethard and Carlson LLC. 00 Property Appraised A 3.31 acre portion of an ±11 acre City of Seward parcel identified by the Kenai Peninsula Borough (KPB) Assessor as: • Tax ID# 1450267 • Lot 7A, Fort Raymond Subdivision Re -Plat #1 in TIN, R1W, 534, SM LI As authorized, we developed the appraisal according to the hypothetical condltlon2 that the acquisition area is platted as - proposed on the date of the inspection. Ownership The City of Seward per KPB records. Property History According to a consulting project 4 manager for Chugachmiut, Eric Fredeen, "Chugachmiut has been working with the City of Seward to C1 purchase 3.31 acres of City owned land. This land is part of an existing 11 acre parcel and will be re -platted as part of the sale process. This 11 acre parcel was the site of Ft. Raymond during World War II and subsequently was used as a recreational site for RVs, tent camping and some small cabins by the Air Force, who leased it from the City." The property has not sold in the past 3 years. 2 "A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of the analysis." Uniform Standards of Professional Practice. Note: Reliance on a hypothetical condition could affect the assignment results. 8 Blacksmith, Bethard and Carlson LLC. 163 Client Chugachmiut 1840 Bragaw Street; Suite 110 Anchorage, Alaska, 99508 Attn. : Charlie Sink or Kelley Baker Purpose of the Appraisal and Property Rights Appraised The purpose of this appraisal is to estimate the market value3 of the fee slmple4 interest of the property. The value opinions are stated in terms of cash. The market exposure period (looking backward) and the marketing time (looking forward) are both estimated at six months to one year. Effective Date of Value June 16, 2021 (As -Is) Intended Use of the Appraisal/Intended Users The function of this appraisal report is to assist the client, Chugachmiut, with an evaluation of the proposed acquisition. The client for this appraisal is Chugachmiut, its officers and directors. 3_"The most probable price, which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1) Buyer and seller are typically motivated; 2) Both parties are well informed or well advised, and both acting in what they consider their own best interest; 3) A reasonable time is allowed for exposure in the open market; 4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.43 Definitions [q. 4 Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Appraisal Institute 1993; Dictionary of Real Estate Appraisal 9 Black -Smith, Bethard and Carlson LLC. 164 This appraisal reports the appraiser's data, analyses, and conclusions. All documentation necessary to support the final estimate of value for the subject property is included in this report. In preparation of the appraisal: Property Data The client identified the property and provided a proposed plat of the subject. Brian Bethard, MAI, and Ryan McGillivray conducted a visual inspection and photographed the subject property on June 16, 2021. The seller's representative, Jackie Wilde5 was contacted prior to the inspection but did not meet with us on -site. Our inspection included an examination of the subject site and neighborhood. KPB records, assessment data and zoning records for the parent parcel were reviewed. Area Data State and local demographics have been examined, including population and employment trends and overall economic growth patterns. Sources consisted of Alaska Department of Community and Economic Development, Economic and Business Journals, Newspapers, and Labor Statistics published by the Federal Government. Market Data Local economic data and comparable rental and sales data was obtained by searching Multiple Listing Service records, surveying several real estate agents/brokers, property managers, local lenders and other appraisers. Market data was confirmed with the property owners, managers, agents, or parties knowledgeable regarding the transaction. Market Analyses The Appraisal Institute recognizes two categories of market analysis: Inferred and fundamental Inferred analyses (levels A and B) are basic methods by which future supply and demand conditions are inferred by current and general market conditions (secondary data). In fundamental analyses (levels C and D), general information is supplemented by detailed data in order to forecast supply and demand as well as subject -specific absorption, and capture (primary data). Because the subject is a conventional property type in a stable market, a lower level of analysis is appropriate. For the purposes of this appraisal, demand is inferred from general market conditions and the available data. Valuation The property is vacant land; the cost and income approaches are not applicable. I developed my opinion of value by the sales comparison approach. 5 Community Development Director, City of Seward, 907-224-4048 10 Blacksmith, Bethard and Carlson LLC. 165 General limiting conditions and assumptions are summarized in the addenda. Extraordinary assumptlons,6hypothetical con( tlons,7 and limiting conditions specific to this appraisal are identified below. Note Reliance on extraordinary assumptions and/or -hypothetical conditions could affect the assignment -results. • The subject is a 3.31 acre portion of an fll acre City of Seward parcel identified by the Kenai Peninsula Borough (KPB) Assessor as: • Tax ID# 1450267 • Lot 7A, Fort Raymond Subdivision Re -Plat #1 in TIN, R1W, S34, SM As authorized, we developed the appraisal according to the hypothetical condition that the acquisition area is platted as -proposed on the date of the inspection. • We were not provided with an environmental report. We developed our opinion of value according to the extraordinary assumption that the site is not affected by environmental issues and is considered to be clean. 6 "An assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinions or conclusions." Uniform Standards of Professional Practice 7 "A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis." Uniform Standards of Professional Practice 11 Blacksmith, Bethard and Carlson LLC. 166 PART III - PRESENTATION OF DATA 12 Blacksmith, Bethard and Carlson LLC. `[:YA Photos taken by Ryan McGillivray (June 16, 2021) View of the subject property looking north. View of the Seward Highway from the subject property. Street scene looking south on the Seward Street scene looking north on the Seward Highway from the subject. Highway from the subject. Interior view of the subject. Interior view of the subject. 13 G[* Blacksmith, Bethard and Carlson LLC. SUBJECT PHOTOGRAPHS CONT. Sewer cap located on the subject. Electrical lines located on the subject. Looking towards the northwest corner of the Former campsite located on the subject. subject. Interior view of the subject. Interior view of the subject. 14 Blacksmith, Bethard and Carlson LLC. 169 ALASKA Economic Outlook Alaska shed 27,200 jobs last year, dropping employment to 2003 levels. Before the pandemic, Alaska had weathered a long statewide recession followed by a single year of weak growth. Absent another shock, we'll recover some of the lost jobs this year with a forecasted gain of about 81600, but it will take several years to regain 2019's job levels.8 Government and oil will continue to cut jobs in the short term, but all other industries will hold steady or begin to rebound. The industries likely to grow the most in 2021 will be those that suffered the steepest losses in 2020. Leisure and hospitality lost more than any other sector in 2020 (9,600 jobs) because the tourist season never materialized. It will add about 3,500 jobs this year. Another casualty whose recovery depends on visitors returning is the transportation, warehousing and utilities sector, which lost 3,600 jobs and might recoup just under half of them this year. Clouds remain on the horizon as a crippling year ends. Long-term state budget and revenue problems remain unresolved, oil prices are forecasted in the mid-$40s, Alaska's population has been dropping since 2017, and we've lost more movers than we've gained for the last seven years in a row. This year's success also hinges on several factors yet to be determined. The pandemic isn't over, and the timing and success of widespread vaccination will be a major determinant of 2021's course. Schools haven't reopened yet, the tourist season is up in the air, especially for cruise ships, and questions linger about people's appetites for traveling and shopping.9 Population More than 60% of Alaska's population resides in the south-central region that includes the Matanuska- Susitna Borough (MSB), Kenai Peninsula Borough (KPB) and the Municipality of Anchorage (MOA). Historic population data is summarized in the following table: *1990 *2000 *2010 **2019 %A over 29 years Anchorage 226,338 260,283 291,826 291,845 29% Mat -Su Borough 39,683 59,332 88,995 106,438 168% • Palmer 2,866 4,533 5,937 9,284 224% • Wasilla 4,028 5,469 7,831 8,736 117% Kenai Peninsula Borough 40,802 49,691 55,400 58,936 44% • Kenai 6,327 6,942 7,100 7,056 12% • Soldotna 3,482 3,759 4,163 4,233 22% • Homer 3,660 3,946 5,003 5,478 50% • Seward 2,699 2,830 2,693 2,545 -6% * U. S. Census ** Alaska Department of Labor Estimates 8 Karinne Wiebold, Alaska Economic Trends, January 2021 9 Karinne Wiebold, Alaska Economic Trends January 2021 15 Blacksmith, Bethard and Carlson LLC. 170 As of July 1, 2020, Alaska is estimated to have 728,903 residents, the lowest figure since July 2011. Alaska's population has declined for four consecutive years, the longest string of declines since modern recordkeeping began in 1945. According to the state data, 8,873 more people moved out of the state than moved into it between July 1, 2019 and July 1, 2020. It's the eighth year in a row that emigration outpaced immigration. Birth rates fell and death rates plateaued during the same period, leading to a decline in "natural increase," which is at its lowest level since 1968.10 KENAI PENINSULA BOROUGH The Kenai Peninsula extends from Southcentral Alaska toward the Gulf of Alaska along Cook Inlet. The area can be accessed by the Sterling Highway, a paved two-lane highway that connects with the Seward Highway which extends north to Anchorage. The Kenai Peninsula Borough (KPB) encompasses all of the Kenai Peninsula and includes lands located across Cook Inlet. Borough functions include tax assessment and collection, education, planning and zoning, solid waste disposal, hospitals, fire department, and recreation. The population is estimated at ±58,471.11 The KPB encompasses all of the Kenai Peninsula and includes lands located across Cook Inlet. The cities of Kenai and Soldotna are the business centers for the region. Kenai, on the east shore of Cook Inlet, is the principal commercial fishing and processing center. Soldotna, located approximately seven miles inland along the Kenai River, is the seat of the Borough government, location of the Central Peninsula Hospital, and Kenai Community College. The Kenai River is 82 miles long and runs from Kenai Lake through the Kenai National Wildlife Refuge and Skilak Lake to its outlet in Cook Inlet. The river is the primary outdoor attraction of Southcentral Alaska and is a significant resource in terms of seasonal industries: commercial fishing and a growing commercial recreation industry. The regional economy is increasingly diversified and continued slow growth is projected. Offshore and some onshore oil and gas production contributes to the economic base. COVID-19 UPDATE January 2021 Deteriorating economic conditions attributed to both the recent crash in oil prices and the COVID-19 pandemic can be expected to influence local real estate market conditions. However, at this time, there is no evidence of seller/lessor concessions. 10 Alaska's population drops for the 4th year in a row, extending record losses. Anchorage Daily News- January 7, 2021 11 Alaska Department of Labor and Workforce Development population estimates reported in the Alaska Dispatch News — January 10, 2019 16 Blacksmith, Bethard and Carlson LLC. 171 GENERAL The general neighborhood is referenced by the Seward Airport. The NEIGHBORHOOD port/harbor district is located to the south. The Seward CBD is located f2 miles to the south. Access Access is good via a network of fully improved arterials. Utilities Water, sewer, electricity and telephone. Services Police, fire protection and road maintenance are provided by the City of Seward. Refuse service is also available. Land Development The area is roughly 50% developed with a variety of industrial uses. Externalities Positive: General compatibility and synergy. Negative: The area on the north side of Seward near the Resurrection River is located in a floodway. Because different districts are suitable for different uses, these conditions tend to be offsetting. In any case, the net effect is accounted for by the data analyzed. 17 Black Smith, Bethard and Carlson LLC. 172 IMMEDIATE NEIGHBORHOOD Adjacent Properties: North: Vacant commercial land/ Former campground South: Aspen Lane- Office building/ Seward Chamber of Commerce across East: Seward Highway- Alaska Railroad property across West: Cemetery Suitability: The neighborhood is general commercial industrial or marine industrial. It is suitable for users or investors. 18 Black Smith, Bethard and Carlson LLC. 173 Location The subject is located on the northwest corner of Aspen Road and the Seward Highway. 19 Black Smith, Bethard and Carlson LLC. 174 On the date of the inspection, June 16, 2021, the parcel had not been legally subdivided. It is a 3.31 acre portion of an fll acre City of Seward parcel identified by the Kenai Peninsula Borough (KPB) Assessor as: • Tax ID# 1450267 • Lot 7A, Fort Raymond Subdivision Re -Plat #1 in TIN, R1W, 534, SM • 2101 & 2109 Dimond Boulevard, Seward, Alaska As authorized, we developed the appraisal according to the hypothetical con( tlonl2 that the acquisition area is platted as -proposed on the date of the inspection. Area and Shape The shape of the subject is irregular with adequate frontage on the Seward Highway. The area is shown as follows: Acres SF 3.31 144,184 Access/Exposure The subject has 2 points of direct access. One from Aspen Avenue and the other from the Seward Highway. Both are paved streets in good condition. Imagery from a provided plat for the parent parcel (87-12) indicates the Dimond Boulevard right-of-way is also at the northeast corner of the parcel. Access is adequate and exposure is good. Easements A title report was not provided. Plat 87-12 indicates a 30' wide utility easement and a 20' wide sewer easement fronting the Seward Highway. These easements limit the usable area of the site but can be incorporated into an overall site plan. Topography and Soils The subject is level and at grade with the Seward Highway and Aspen Lane. Interior driveways/ former campsites are cleared with a gravel base. Minor treed areas are on -site. There is a slight upward slope to the west. A soils report was not provided, however soils appear adequate as noted by the several improvements in the area. Utilities All public available. 40 H at V� 2139 Seward Hwy. „t 3.31 Acres A� / -r 4 y� ZnrrT utilities including electricity, public water/sewer, refuse and telephone are There is no natural gas service which is typical of the area. 12 "A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of the analysis." Uniform Standards of Professional Practice. Note: Reliance on a hypothetical condition could affect the assignment results. 20 Blacksmith, Bethard and Carlson LLC. 175 Flood Plain, Seismic, Wetlands The lot is located outside of high risk flood areas.13 Most of south-central Alaska is classified in "seismic zone 4". Permitting agencies typically recognize this zone in its application of the uniform building code. Zoning The lot is zoned AC- (Auto Commercial District). Intended to provide areas to accommodate highway -oriented commercial activities such as offices, certain institutional uses, and limited personal services and retail uses requiring substantial outdoor activity, traffic and parking, and which also serve the offices and nearby residential areas, and which do not materially detract from nearby residential areas. There is a 34 foot building height limitation and building setbacks are 10' in the front and back yards and 5' in the side yard (10' when adjacent a street). Maximum site coverage is 50%. Environmental Issues We are unaware of any environmental issues with the site. We were not provided with an environmental report. We developed our opinion of value according to the extraordinary assumption that the site is not affected by environmental issues and is considered to be clean. Suitability of the Site The lot is 3.31 acres, primarily cleared, level with a slightly upward slope to the west and at grade. It is served by all available public utilities and access is adequate. The zoning is a liberal classification that allows for many general commercial uses. Easements fronting the Seward Highway limit usable area; however, they can be incorporated into an overall site plan. In summary, it is well -suited for possible permissible general commercial uses predominate in the area. 13 Flood Insurance Rate Maps, Federal Emergency Management Agency, panel number 02122C4543E, September 20, 2016. 21 Blacksmith, Bethard and Carlson LLC. 176 TAX AND ASSESSMENT DATA Real Estate Taxes Outstanding taxes or assessments are liens. Verification and reporting is a function of preliminary title reports. We developed our value opinion as if free and clear. Tax ID# 14502607- 2190 Dimond Boulevard Year 2021 2020 2019 Reason Blain Fell Blain Roll Blain Roll Certification Certification Certification Land Assd $1,553,300 $1,553,300 $1,420,000 Imp Assd $500,000 $500,000_i_ $590,900_] Total Assd $2,053,300 $2,0533300 $1112911000 It is noted that this is the assesed value for the parent parcel (11.04 acres). The improvements have been removed. The parent parcel is owned by a government agency and not subject to property taxes. 22 Black Smith, Bethard and Carlson LLC. 177 PART IV - ANALYSIS OF DATA CONCLUSIONS 23 Blacksmith, Bethard and Carlson LLC. 178 Market Exposure Time may be defined as "the estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market." 14 The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. Marketing time is also a function of the amount and quality of the available inventory, asking prices and investor requirements. General Market Conditions Because the Multiple Listing Service (MLS) 10-year Comparison Report does not distinguish between vacant land types, it is only indicative of general trends. Over the last five years, activity * number of transactions) and market exposure times (days on market [DOMD has remained relatively the same. 1 0-year Comparison Report Property Type: Land Area- 365 - Seward - Cooper Landing Construction Type: Existing and New Construction Year # Sold Avg. List Price % List Price Avg gold Price % Sold Price Avg DOM Change Change 2011 9 $53,000 CIA $47,633 NA 312 2012 11 $80,213 51.35% $76,018 59.59% 311 2013 13 $108,492 3525% $96,819 27.36% 267 2014 19 $39,576 -63.52% $35,284 -63.56% 155 2015 17 $86,549 118.69% $78,505 122.49% 232 2016 25 $57,989 -33.00% $50,552 -35.61 % 217 2017 14 $76,100 31.23% $69,257 37.00% 296 2018 26 $98,084 15.75%n $75,674 927% 310 2019 24 $95,355 -3.10% $76,185 0.68% 232 2020 14 $59,125 -30.73% $54,425 -28.56% 253 Note: The data is only useful to establish an active and competitive market. Properties vary significantly in size and location. Averages can be misleading and are not suitable for direct comparison. 14 Source: Appraisal Standards Board Statement 6 and Advisory Opinion G-7. 24 Blacksmith, Bethard and Carlson LLC. 179 HIGHEST AND BEST USE "AS VACANT" Highest and Best Use is defined in the 141h Edition of the Appraisal of Real Estate, Appraisal Institute, as "the reasonably probable use that results in the highest value." Permissible Use Legal restrictions can include public restrictions (zoning), private restrictions (conditions, covenants, & restrictions [CCR's]), plat notes, and easements. Public Restrictions The property is located in the city of Seward and is zoned AC- (Auto Commercial District). The district is a liberal classification intended to provide areas to accommodate highway -oriented commercial activities such as offices, certain institutional uses, and limited personal services and retail uses requiring substantial outdoor activity, traffic and parking, and which also serve the offices and nearby residential areas, and which do not materially detract from nearby residential areas. Private Restrictions &Plat Notes No private restrictions were reported. Easements A 30' wide utility easement and a 20' wide sewer easement fronting the Seward Highway. These easements limit the usable area of the site but can be incorporated into an overall site plan. Possible Uses The parcel is adjacent the Seward Highway and has adequate access, good exposure and all public utilities are available. The soils and topography appear adequate for improved uses. The zoning allows for multiple types of highway -oriented commercial uses. Given these conditions the most probable use is for a conforming, compatible commercial use. Feasible Use Given the local economic conditions and the physical characteristics of the property, the parcel is suitable for commercial development. Maximally Productive Use Absent possible financially feasible uses, the highest and best use is for a conforming commercial development. 25 Black Smith, Bethard and Carlson LLC. 180 Sales comparison is the most common technique for valuing land and it is the preferred method when comparable sales are available. Elements of comparison include: 15 • Property rights Physical characteristics • Financing terms ➢ Zoning • Conditions of sale (motivation) ➢ Utility availability • Expenditures immediately after purchase ➢ Access • Market conditions (sale date) ➢ Location ➢ Soils and topography ➢ Size ➢ Shape SUMMARY OF COMPARABLE SALES The market is extremely limited and there are very few comparable sales. The comparable data used is made up of dated sales, cancelled listings and leased properties in the area. They are identified in the following table in ascending date. The analysis recognizes a price -per -square foot unit of comparison. No. Address Status Date $ SF $/SF Sub". Southern portion 2190 Dimond Boulevard N/A 6-21 N/A 144,184 N/A 2919 2405 & 2413 Seward Highway Cancelled 1-20 $590,000 250,034 $2.36 3488 1101 Fourth Avenue Sold 6-19 $140,000 6,534 $21.43 3865 1106 Port Avenue Leased 8-19 $475,180* 94,961 $5.00 3866 501 First Avenue Sold 1-17 $200,000 41,818 $4.78 1944 1 NSN Phoenix Road Sold 4-08 $399,021 57,003 $7.00 x Represents annual land rent cap at 8% 15 The Appraisal of Real Estate, 14th Edition, Appraisal Institute 26 Blacksmith, Bethard and Carlson LLC. 181 DESCRIPTION OF THE COMPARABLES The comparables are identified in the previous table and on the map. The property characteristics are summarized in the following comparison grid. Details are presented in the Addenda. CORRELATION (EXPLANATION OF THE ADJUSTMENTS) Three of the comparables reflect arm's length sales/acquisitions of the fee simple interest, while comparable 3865 is a long term ground lease. No undue stimulus was reported. Atypical motivations, if any, are recognized in the reconciliation. The indicated unit values are already adjusted to a cash equivalent value (if required) and for expenditure immediately after purchase (e.g. demolition or the cost -to -cure known defects/deficiencies). QUANTITATIVE ADJUSTMENTS Market Conditions In general, the data does not support reliable quantitative adjustments for market conditions (time). Evidence of change (if any) is weighed in the final reconciliations. 27 Black Smith, Bethard and Carlson LLC. 182 Size The comparables range from 6,543 SF to 250,034 SF and bracket the subject property in terms of size. In the end, no quantitative size adjustment is applied and differences are considered qualitatively in the reconciliation. Zoning The zoning types permit a variety of uses. The most probable use of the subject and the comparables is determined more by location and neighborhood characteristics. The data does not support an adjustment for zoning. QUALITATIVE ADJUSTMENTS Because buyer preferences and evaluation criteria are not universal, reliable percentage or dollar adjustments for various other physical characteristics (e.g., location, restrictions, soils/topography, other [amenity] etc.), cannot be isolated from the data available. We correlated other inequalities with qualitative adjustments (superior, inferior, approximately equal). COMPARATIVE ANALYSIS I correlated the comparables in the following relative comparison analysis grid. An overall net adjustment (<, >, f) is applied to develop value indicators on the bottom line. W Black Smith, Bethard and Carlson LLC. 183 RELATIVE COMPARISON GRID Comparable # SUBJECT 2919 3488 3865 3866 1944 Address NWC Aspen 2405 & 2413 1101 Fourth 1106 Port 501 First NSN Phoenix Rd.& Seward Seward Avenue Avenue Avenue Road Hwy Highway Status n/a Cancelled Sold Leased Sold Sold CEV $/SF n/a $2.36/SF $21.43/SF $5.00* $4.78 $7.00 Qualitative Ad/ustments Market Conditions 6-21 1-20 6-19 8-19 1-17 4-08 Approx. = Approx. = Approx. = Approx. = Inferior General Location Seward Hwy Seward Hwy Seward AK Railyard Seward West of the near the near the harbor district townsite/ Seward Hwy Seward Seward Adjacent the near the Airport & Airport & hospital harbor Alaska Resurrection Railroad River ---------------------------------------------------- Neighborhood ------------------------------ Mixed -Use ------------------------------ Mixed -Use ------------------------------ Commercial/ ------------art ------------ Marine ------------------------------ Institutional/ ------------------------------ Mixed -Use highway highway retail industrial Residential Commercial/ district district Residential Slightly Far Superior Slightly Approx. = Slightly inferior inferior inferior Soils and Topography Appear Appear Appear Appear Appear Appear adequate; adequate; adequate; adequate; adequate; adequate; Primarily Fairly level Cleared, level Cleared, level Cleared, level portion in cleared, level and below and at grade and at grade and at grade flood zone and at grade grade; Cleared, level with slight partially and at grade slope to the cleared & west filled, located in a floodzone Slightly Approx. = Approx. = Approx. = Slightly inferior inferior Size 3.31 AC 5.74 AC 0.15 AC 2.18 AC 0.96 AC 1.31 AC 144,184 SF 250,034 SF 6,534 SF 94,961 SF 41,818 SF 57,003 SF Slightly Far Superior Superior Superior Superior inferior Access/ Highway/ Highway/ Paved/ Gravel/ Paved/ Paved/ Exposure Good Good Good Minimal Good Good Approx. = Approx. = Slightly Approx. = Approx. _ inferior Utilities All available Electricity All available All available All available All available Inferior Approx. = Approx. = Approx. = Approx. = Zoning Auto Auto Auto Industrial Institutional Industrial Commercial Commercial Commercial Approx. = Approx. = Approx. = Approx. = Approx. _ Shape/ Slightly Slightly Rectangular/ Rectangular Rectangular Slightly Corner irregular/ irregular/ Corner interior lot interior lots/ irregular Minor corner Minor corner high frontage interior lots to depth Approx. = Superior Slightly Approx. = Slightly inferior inferior Other Easements Assemblage Purchased by None Assemblage Assemblage limit usable of 2-lots adjoining of 2-lots of 3-lots area owner for purchased by purchased by hotel adjacent adjacent development owner owner Superior Superior Superior Superior Su erior Indicated $/SF --- > $2.36/AC < $21.43/SF < $5.00/SF < $4.78/SF < $7.00/AC * Represents annual land rent cap at 8% "Net Usable Area 29 Blacksmith, Bethard and Carlson LLC. 184 Reconciliation The data generates a range of adjusted unit values from $2.36/AC to $21.43/SF. Absent the upper -end of the range (small lot, undue stimulus and superior qualities), the range is narrowed ($2.36/SF to $7.00/SF). The relative market position of the subject is isolated in the following table. Comp. # $/SF Reconciliation 1944 ♦ $7.00 Most dated sate; assemblage of 3 lots purchased by adjacent owner. 3865 ♦ $5.00 Lease located at the Alaska Railroad yard to an industrial marine shop. 3866 ♦ $4.78 Smaller size; assemblage of 3 lots purchased by adjacent owner. Subject 2919 ♦ $2.36 Unsold cancelled; slightly inferior for location, soils, size and utilities. Summary The reconciliation grid brackets the subject between $2.36/SF and $4.78/SF. The upper -end of the range is located closer to the city center with reported stimulus (purchased by adjacent owner). The lower -end of the range is an unsold, cancelled listing that has been marketed multiple times over the past 8+ years at descending prices. Absent any more definitive data, a unit value at the middle of the narrowed range, may be appropriate. Although the unsold listing (2919) is arguably the most similar. It sets the low -end of the range but is inferior for location, size, soils and utilities. Considering the bulk of the data indicates less than $4.78/SF to $7.00/SF, a conclusion slightly above the middle of the bracketing range is reasonable. The market value of the subject is fairly represented at $4.00/SF or $577,000 ($4.00 x 144,184 SF = $577,000, rounded). 100 Black -Smith, Bethard and Carlson LLC. ADDENDA 41 Blacksmith, Bethard and Carlson LLC. CONTRACT REQUISITION FORM Contract # Charles Sink ChugachmiutProgram Manager Charles Sink Supervising Division Director 20221 Fund # COMPENSATION Contractorwill be paid afixed fee/lump sum Of $6, 500.00 Contractor will be compensated for time and materials in the amount of: Compensation Other Amount: Description of Other: Black-Smith,Bethard & Carlson,LL( Contractor (organization) Steve, Carlson Contractor Representative MAI Contractor Representative Title 20-1986982 SSN / EIM 1199 E. Dimond Blvd., #200 Business Mailing Address or PO Box Anchorage, Alaska 99515 City/State/Zip (907) 274-4608 Phone (907)274-0889 Fax bsrQak.net E-mail $ 6,500.00 Total amount paid to Contractor will not exceed: Contract begins (month, day, year) O5/03/2021 Contract ends (month, day, year) 09/_M2021 Blacksmith, Bethard and Carlson LLC. 187 SCOPE OF WORK Description of work to be performed (as many specifics as possible) Property to be appraised is located in Seward. Alaska and more particularly described as: "A 3.31 acre portion of a tl 1-acre City of Seward parcel identified by the KPB Assessor: Sax ID# 14502607 Lot 7A, Fort Raymond Subdivision Re -plat 41 in TIM R1 W, 534, SM." The purpose of the appraisal is to estimate the as -is market value3 of the fee simple interest (surface estate) as of the date of inspection_ Scope of work 1. Contractor will inspect the property and the market -area comparable properties relied on. 2. Contractor will give the buyer and seller representatives the opportunity to accompany contractor on their inspection and/or comment on the property attributes, other conditions that might influence value, and any meaningful market data. 3. The appraisal report will weigh general economic conditions with neighborhood and property -specific characteristics. Contractor analyses will rely on sales that meet the market test implicit in the applicable definition of market value. 4. Contractor analyses, opinions, and conclusions will be developed. and the report prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) If rnore. space is required, include at end of Attachment A. In addition to the general standards stated in the General Conditions. Contractor cyill: (list any additional standards to be met) 1. Contractors employment will not be conditioned upon the appraisal producing a specific value or a value within a given range. I Contractor's compensation will not be contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. 3. Contractor acknowledges another appraisal is being prepared for the seller, City of Seward, Alaska. If contact with Seward's contractor, MacSwam and Associates , contractor will limit such contact to exchange of actual data without discussion of analyses, reasoning, conclusions, and other related information. Final Products or Deliverables: Appraisal report of the described property in conformity with the Uniform Standards of professional Appraisal Practice_ Blacksmith, Bethard and Carlson LLC. 188 Processed by: CHUGACHNUUT COti TR ACT Contact 4 This Contract is entered into by and between Chugacluniut and Black-Smith.Bethard & CarlsOn.LLC (Contractor) for the purpose of providing the sen ices described on the attached Scope ofWork. Chugachnriut is a Native Not -far -Profit. Section 501(c)(3) organization whose ability to contract is contingent upon the availability of findirig. In the event that fiuuding is not available or becomes unavailable. this Contract shall be void. Schedule. This Contract be2irus 05/03/2021 and ends 09/3012021 Curless earlier terminated or completed pursuant to Section 9 of this Contract. 2. Independent Contractor. Contractor represents that Contractor is an independent contractor. not an employee or agent of Chugaclmriut. Contractor shall be exclusively responsible for covering its tax and licensing obligations, insurance coverage. and wages or benefits it may owe any workers it hires to complete Chugachnriut s scope of work. In no event shall any federal tax wvilhholdutgs or other deductions (such as payroll loxes, health iuburauce bcmclit6. ,acaliom. or unemployment insurance) be deducted from the compensation to be paid to Contractor. 3. General Terms and Conditions. a Contract oversight shall be provided by Charles Sink The work to be performed under this Contract (the '`Work') is described on Attachment A. the Scope of Work. b Contractor shall perform the Work nonnegligently. in accordance ur.th workivarrlike standards. using diligence. professionalism and care that meeta or exceeds the standard of care generally applicable for work of this naturre in Anchoragc Alaska. Any additional or special standards applicable to the Work shall be identified in the Scope of Work (AttachrrnentA). c The Contractor shall at all tunes comply with tribal_ state. federal and local laws which in any manner affect the Work or the conduct of the Work. d The Contractor represents that it has reviewed the "Chugacluruut Contractor Handbook" and agrees to comply with the Handbook. Contractor agrees to direct any questions concerning procedures and policies to Charles Sink In no event may the Contractor access. copy or disclose confidential urforruatiort of Chugachnniut for personal use or gain. Blacksmith, Bethard and Carlson LLC. 189 e. Contractor shall not unlawfully discrinunate against any individual because of race. sex. age. color. marital status. change in marital status. national origin.. etluuc or cultural affiliation. physical handicap. pregnancy or parenthood. religious beliefs or practices as required by federal or state regulations ns and/or statutes. f Contractor agrees that any Work Product produced by the Contractor pursuant to this Contract is the exehrsive property of Ctrugachrniut dnring the term of this Contract and after the Contract's expiration. completion or ternunation. for whatever cause. As used in this Contract. "Work Product" includes but is not limited to_ writings_ video or audio recordings. graphic representations. manuals. forms. diapams. ,.vork charts. data files. data processing programs. computer programs. plans and desipns. Upon termination of thus Contract the Contractor shall deliver or return all Chugaclm ut property. including Work Products and equipment of any nature that are in the Contractor's possession or under the Contractor's control. g All sen-ices described in Attachwent A wit] be completed and a frrral product delivered to Chugaclunniut withfii the term of this Contract. h The Contractor shall not delegate or assign any portion of the services to be performed under this Contract to another entity or business without Chugaclmusufs prior written approval. i Services to be provided will be coordinated with Chuugachnuiuit to occur at a time that is convenient to and not disnuptive of Chuugachmiut. 4 Compensation. a Chugachuniut shall compensate the Contractor as follows: $6.500.00 Fixed fee/Lu nip Sum Time and rmeterials Other Description of Other The total amount that may be eompersated urrder this Contract shall not exceed: $ 6,500.00 h Iuvoicine. Chugaclmuiut Account Code: 20221 Please cite this number on all invoices. The Contractor shall submit an invoicetliat references the Contract number. Account Code and includes a detailed written explanation. of services provided. c The Schedule. The Contractor shall abide by time limitations established for each service described in Attaclunent A. No request for extension of time shall be binding or effective unless submitted by Contractor in writing. and approved in writing by the Executive Director or designee. Black -Smith, Bethard and Carlson LLC. 190 5. Payment. Chugacluniut shall process payment(s) within thirty (30) working days of receipt of an invoice submitted by the Contractor. In the event that Chugachmiut fords a discrepancy in the invoice or back-up. payment for the questioned portion will be withheld pending clarification by the Contractor and approval by Chugacluniut. 6. Disputes. Any dispute between tine Contractor and Chugacluniut arising from this Contract will be decided by the Executive Director of Chugacluniut under Chugachrnnint's contracting procedures. If the dispute is not resolved utilizing normal operating procedures. the dispute may be bought by either party to the Chugachmiut Board of Directors. Either the full Board of Directors or the Board Executive Committee may decide such disputes. or either parry may request the Chairman of the Chugachrnniut Board of Directors to call a special meeting of the Board Executive Committee to hear such dispute. 7. Indemnification. The Contractor shall hold harmless. defend. and indemnify Chugachmiut. its employees. agents. officers. and insurers, from and against any and all liability. loss.. cost, darnage. judgnnents.. actions or claims of any nature. inchidnig but not limited to personal irnjuuy. property damage. and ivrongfirl death. arising or resulting directly or indirectly out of Contractor's acts or ornnissions to act. whether negligent, willful, grossly negligent or reckless, including acts or omissions of Contractor's employees_ agents. contractors, licensees and invites. in the performance of the services described in Attachment A. S Modifications. Amendments or modifications to Attachment A. direction. intent or compensation shall be made in writing and incorporated into this Contract prior to being undertaken by either party. Requests for modifications by either party shall be supported by written evidence justifying the proposed modification or amendment. 9. Termination. Unless otherwise provided on Attachment A, this Contract may be terminated by five (5) days' written notice delivered by either party, which notice shall state the date temnination will be effective. If the termination is based on a curable default or violation_ the notice shall provide a reasonable time period. not to exceed 10 days. in which the defaulting party shall cure the default in pen-forniance. 10. Disclosure. The Contractor is required to disclose any outside activities. interests.. ownership. or participation in a related business that conflicts or may conflict with the best interests of Chugacluniut. Prompt disclosure is required under this section if the activity or interest is related.. directly or indirectly. to any activity that the Contractor may be involved in on behalf of Chugachmiut. 11. Severability. If any section of this Contract is being held to be invalid or unenforceable for any reason.. the remaining provisions shall be valid and enforceable. If a court finds that any section of this Contract is invalid or unenforceable_ but by limiting the section it becomes valid and enforceable. then the section shall be deemed to be written. construed. and enforceable to its limits. 12. Applicable Law This Contract shall be governed by tine laws of the State of Alaska. Blacksmith, Bethard and Carlson LLC. 191 13. Addresses. Where this Contract regiures written notice, the notice shall be valid if mailed, e-mailed or faxed to the following addresses: Chugachmiut: 1840 Bragaw Street. Suite 110 Anchorage, AK 99508 ATTN: Phone:907-562-4155 Fax:907-563-2891 Contractor: Black-Srnith.Bethard & Carlson.LLC 1199 F. Dimond Bled.. %i200 Anchorage, Alaska 99515 Phone: (907)274-4608 Fax: (907) 274-0889 E-mail: bsr@ak.net I4. Entire Contract. This Contract contains the entire agreement of the patties and there are no other promises or conditions in any other Contract whether oral or -written relevant to Attachment A. This Contract supersedes any prior written or oral contract between the parties. 15. Force Mai eure. Chugacluruut and the Contractor shall not be liable for their respective failure to perform any of their obligations wider this Contract if prevented from performing such obligation by a cause beyond their respective reasonable control which by the use of due diligence the Contractor or Chugachnuut shall not have been able to overcome_ including, but not limited to acts of God. natural disaster, civil commotion, quarantine, fire, labor disputes or any action or non -action, by the United States Government, including changes in existing legislation affecting the subject matter of this Contract. 16. Execution. In witness thereof, the parties hereto have executed, or caused to be executed by their authorized representatives, this Contract by signatures shown below. Steve. Carlson MAI Date Date CIUD Angela 3. derpool Executive Director IMYi Blacksmith, Bethard and Carlson LLC. ATTACHMENT A SCOPE OF WORK OR SERVICES 1. Description ai a-ork to Ue petianned fas many specifics as possiUle i Property to be appraised is located in Seward. Alaska and more particularly described as: "A 3.31 acre portion ofa tl1-acre City- of Seward parcel identified by the KPS Assessor: Tax ID## 14501607 Lot 7A- Fort Raymond Subdivision Re -plat 91 in T1N, R1W. 534. SM." The purpose of the appraisal is to estimate the as -is market value3 of the fee simple interest (surface estate) as of the date of inspection_ Scope of Work 1 _ Contractor will inspect the property and the market -area comparable properties relied on- Z. Contractor will give the buyer and seller representatives the opportunity to accompany contractor on their inspection and or comment on the property attributes, other conditions that might influence value, and any meaningfW market data. 3. The appraisal report will weigh general economic conditions with neighborhood and property -specific characteristics. Contractor analyses will rely on sales that meet the market test implicit in the applicable definition of market value_ 4_ Contractor analyses, opinions, and conclusions will be developed, and the report prepared. in conformity with the Uniform Standards of Professional Appraisal Practice CUSPAP). if more space is required, include at end of Attacltnient A. In addition to the general standards stated in the General Conditions. Contractor will: (list any additional standards to be atet) 1. Contractors employment will not be conditioned upon the appraisal producing a specific value or a value within a given range_ 2_ Contractor's compensation will not be contingent upon the reporting of a predetertuiued value or direction in value that favors the cause of the client. the amount of the value estimate, the attainment of a stipulated result or the occurrence of a subsequent event. 3. Contractor acknowledges another appraisal is being prepared for the seller, City of Seward, Alaska_ If contact with Seward"s contractor. MacSwain and Associates, contractor will limit such contact to exchange of actual data without discussion of analyses, reasoning- conclusions. and other related information_ Final Products or Dch-.erables. Appraisal report of the described property in conformity with the Uniform Standards of Professional Appraisal Practice. Blacksmith, Bethard and Carlson LLC. 193 Comparable Data Write -Ups Pronertv Identification Record ID 2919 Property Type Commercial Property Name Dieckgraeff-Gillespie Replat Tr B Address 2405 and 2413 Seward Hwy, Seward, Alaska Location Seward Highway near Resurrection Creek, adjacent to airport Tax ID 14502133 and 14502140 Sale Data Marketing Time See remarks Conditions of Sale Cancelled Listing — cancelled 1/13/2020 Verification Wynn Moser; 907-244-7437, July 1, 2021; Other sources: MLS #13- 11880, #13-6062 and #19-10694 Asking Price $590,000 (assembled asking price) Land Data Topography Fairly level, below road grade; located in a floodzone Utilities E & T Shape Irregular assemblage Landscaping Portions cleared and filled Land Size Information Gross Land Size 5.7 Acres or 248,292 SF Indicators Asking Price/Gross SF $2.36 Remarks 2 vacant parcels (1.14 and 4.6 AC) totaling 5.7 acres, listed for $590,000 (as assembled). The listing was cancelled on January 13, 2021 after 200 days on the market. The properties were previously listed between 2013 and 2017 at $1,300,000. The 1.14 acre corner parcel was also separately listed for $496,584, or $10/SF. The listing agent, Wynn Moser, reported there was not much interest in the lots at the last listing price. Blacksmith, Bethard and Carlson LLC. 194 ka Photo provided by MLS MI Blacksmith, Bethard and Carlson LLC. 195 Pronertv Identification Record ID 3488 Property Type Commercial Address 1101 Fourth Ave., Seward, Alaska Location NWC of Fourth Ave. and Vanburen St. Tax ID 14727004 Legal Description Lot 2, Block 7, Oceanview Subd. Sale Data Grantor Robert Candopoulos Grantee Tom Tougas (Major Marines Tours) Recorded Plat 71-162 Property Rights FS Marketing Time Not Listed Conditions of Sale No undue stimulus reported Financing Cash Sale History See remarks Verification Tom Tougas (buyer); tom@tmtalaska.com, June 29, 2019; sources: B-SBC File No. 19-057, Confirmed by Mike Forsland Land Data Zoning AC, Auto Commercial Topography Cleared, level at grade Utilities All available Shape Rectangular Access Adequate, paved Soils Appear adequate Land Size Information Gross Land Size 0.150 Acres or 6,534 SF Other Remarks Lot 2, Block 7, Oceanview Subdivision (1101 Fourth Avenue) is under contract between Seward Wildlife Cruises, LLC. (grantee) and Robert Candopoulos (grantor), reportedly for $140,000 ($21.43/SF). We were not provided a Purchase and Sale Agreement and/or Escrow Agreement. We developed this appraisal according to the extraordinary assumption that the information provided is reliable. The property was not professionally marketed; the grantee approached the grantor. The grantor was hesitant on selling because he used the lot for employee parking for this lodge business. He originally asked for $200,000 and eventually accepted $140,000. Mr. Tougas (grantee) reported that the sale price is over market but he needed the lot for his proposed hotel project. Based on comparable sales, it appears to be supported by the market and is therefore considered an arms -length transaction. Blacksmith, Bethard and Carlson LLC. 196 Photo taken by Mike Forsland on July 4, 2019 Blacksmith, Bethard and Carlson LLC. 197 Property Identification Record ID 3865 Property Type Marine Industrial, Marine Industrial Address 1106 Port Avenue, Seward, Alaska 99664 Sale Data Lessor ARRC Lessee Catalyst Marine Sale Date August 01, 2019 50 year lease commenced Property Rights Leased fee Conditions of Sale No undue stimulus reported Other Restrictions None Verification Erin Ealum; 907-265-2325, July 7, 2021; McGillivray Sale Price $475,180 Based on $5/SF Land Data Zoning I, industrial Topography Cleared, level and at grade Utilities All available Shape Rectangular interior lot Neighborhood AK railyard Access Gravel Soils Adequate Land Size Information Gross Land Size 2.180 Acres or 94,961 SF Indicators Price/Gross SF $5.00 Confirmed by Ryan Remarks Located in the ARRC rail yard near the Port of Seward. This is a 50 year ground lease to Catalyst Marine Engineering based on an appraisal. The rate is $5/SF, or $38,000 annually. Based on an annual land rent cap of 8% the lot value is $475,180. The company constructed a warehouse facility that services marine uses. Blacksmith, Bethard and Carlson LLC. 198 Blacksmith, Bethard and Carlson LLC. 199 Pronertv Identification Record ID 3866 Property Type Institutional, Vacant Land Address 501 First Avenue, Seward, Alaska 99664 Tax ID 1480200102 Sale Data Grantor United Methodist Women Grantee Seward Community Health Center Sale Date January 13, 2017 Pending date Deed Book/Page 2017-000511 Recorded Plat S-19 Property Rights Fee simple Marketing Time 108 Conditions of Sale No undue stimulus reported Financing Cash Verification Todd Peterson; 907-362-6200, July 01, 2021; MLS# 16-15540, Confirmed by Ryan McGillivray Sale Price $200,000 Land Data Zoning INS, INS Topography Cleared, level and at grade Utilities All available Shape Rectangular- high frontage to depth Neighborhood Seward townsite- adjacent the hospital Access Paved Soils Adequate Land Size Information Gross Land Size 0.960 Acres or 41,818 SF Indicators Sale Price/Gross Acre $208,333 Sale Price/Gross SF $4.78 Other sources: Remarks This is the sale of 2 lots located adjacent the Seward Hospital. The hospital was the purchaser. The listing/ selling agent Todd Peterson reported it was a straight forward transaction. Blacksmith, Betbard and Carlson LLC. 200 Blacksmith, Bethard and Carlson LLC. 201 Pronertv Identification Record ID 1944 Property Type Commercial Property Name Lots 20, 21 & 22 Clearview Sub. 6 Address NSN Phoenix Rd and Resurrection Rd, Seward, Alaska Location Lots 20, 21 & 22 Clearview Sub. 6 Sale Data Grantor Steve Lierer Grantee CIRI Sale Date April 01, 2008 Deed Book/Page 2008-000475 Property Rights fee Marketing Time n/a Conditions of Sale Motivated buyer adjoining owner 7-14% above market value Verification Robin Ward; 274-8638, April 20, 2010; Rob Conn, Confirmed by Brian Bethard Sale Price $399,021 Land Data Zoning AC, Commercial Topography level Utilities all (w/s, gas, elec) Dimensions Irreg Shape Irreg Landscaping Cleared Flood Info Ptn. in Flood Zone A Neighborhood No wetlands Access 30 foot utility easement Land Size Information Gross Land Size 1.309 Acres or 57,003 SF Front Footage Resurrection; Phoenix Indicators Sale Price/Gross SF $7.00 Remarks Three adjoining lots, level, at grade with all utilities and good access. The property was purchased with AC and R2 zoning based on rezone to AC. Buyer paid premium of 7 to 14% above appraised value, but they were the adjoining owner and needed the site for parking. Blacksmith, Bethard and Carlson LLC. 202 Google Earth imagery from Phoenix Road -Carl lit Blacksmith, Bethard and Carlson LLC. 203 This appraisal report has been made with the following general assumptions: 1. No responsibility is assumed for the legal description provided or for matters pertaining to legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated. 2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. 3. Responsible ownership and competent property management are assumed 4. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. 5. All engineering studies (if any) are assumed to be correct. The plot plans and illustrative material in this report are included only to help the reader visualize the property. 6. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 7. It is assumed that the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report. 8. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless a nonconformity has been identified, described, and considered in the appraisal report. 9. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the opinion of value contained in this report is based. 10. It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report. 11. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, was not observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea -formaldehyde foam insulation and other potentially hazardous materials may affect the value of the property. The value estimated is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for such conditions or for any expertise or engineering knowledge required to discover them. The intended user is urged to retain an expert in this field, if desired. Blacksmith, Bethard and Carlson LLC. 204 This appraisal report has been made with the following general limiting conditions: 1. Any allocation of the total value estimated in this report between the land and the improvements applies only under the stated program of utilization. The separate values allocated to the land and buildings must not be used in conjunction with any other appraisal and are invalid if so used. 2. Possession of this report, or a copy thereof, does not carry with it the right of publication 3. The appraiser, by reason of this appraisal, is not required to give further consultation or testimony or to be in attendance in court with reference to the property in question unless arrangements have been previously made. 4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser. Additional Assumptions and Limiting Conditions: 1. Any opinions of value provided in the report apply to the entire property, and any proration or division of the total into fractional interests will invalidate the opinion of value, unless such proration or division of interests has been set forth in the report. 2. Only preliminary plans and specifications were available for use in the preparation of this appraisal; the analysis, therefore, is subject to a review of the final plans and specifications when available. 3. The forecasts, projections, or operating estimates contained herein are based on current market conditions, anticipated short-term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes with future conditions. 4. The Americans with Disabilities Act (ADA) became effective January 26, 1992. The appraiser has not made a specific compliance surveyor analysis of the property to determine whether or not it is in conformity with the various detailed requirements of ADA. It is possible that a compliance survey of the property and a detailed analysis of the requirements of the ADA would reveal that the property is not in compliance with one or more of the requirements of the act. If so, this fact could have a negative impact upon the value of the property. Since the appraiser has no direct evidence relating to this issue, possible noncompliance with the requirements of ADA was not considered in estimating the value of the property. Blacksmith, Bethard and Carlson LLC. 205 QUALIFICATIONS OF APPRAISERS Brian Z. Bethard, MAI State Certification No. 281 General Education Service High School, Anchorage, Alaska - Graduate 1989 The Colorado College, Colorado Springs, CO - Bachelor of Arts, Economics 1993 University of Alaska, Anchorage, Anchorage, AK - MBA 1996 Employment History Black -Smith, Bethard & Carlson, LLC - Managing Member — 2005 + Black -Smith and Richards, Inc. - Fee Appraiser -1995 to 2005 Randall, Hayes, and Henderson, Inc. - Fee Appraiser -1993 to 1995 Appraisal Courses/Seminars Taken Residential Case Study - University of Alaska Anchorage - 1994 Uniform Residential Appraisal Report - Appraisal Institute - 1993 Standards of Professional Practice, Part A & B - Appraisal Institute - 1996 Advanced Sales Comparison & Cost Approaches - Appraisal Institute - 1997 Appraisal Principles & Procedures - Appraisal Institute - 1998 Highest and Best Use Market Analysis - Appraisal Institute - 1998 Advanced Applications and Market Analysis - Appraisal Institute - 1998 Report Writing and Valuation Analysis - Appraisal Institute, 1998 Advanced Income Capitalization, Course 510 - Appraisal Institute - 2000 Intro to Statistics & Supporting Adjustments - Appraisal Institute - 2002 Market Studies for Affordable Housing - NH&RA - 2002 Standards of Professional Practice - Appraisal Institute — 2002/03/04/05/07/09/11/13/15 Subdivision Analysis - Appraisal Institute — 2004/15 Rates & Ratios —Appraisal Institute — 2005 Principles of Real Estate Law — I RWA — 2005 Skills of Expert Testimony — IRWA — 2006 Analyzing Distressed Real Estate — Al — 2006 Condemnation Appraising — Al — 2007 Appraisal Challenges in Declining Markets — Al, 2009 Forecasting Revenue — Al, 2009 USPAP Update — Al, 2011 Yellow Book — Al, 2011 Appraisal Curriculum, General — Al, 2011 Real Estate Financing, Statistics & Value Modeling — Al, 2013 Appraisal of Limited Service Hotels — Al, 2015 Certifications Alaska State Certification: General Real Estate Appraiser #281 Affiliations Member Appraisal Institute (Member No. 11857) President: Alaska Chapter Appraisal Institute — 2005 & 2006 Vice Pres: Alaska Chapter Appraisal Institute - 2004 Blacksmith, Bethard and Carlson LLC. 206 Tvaical Clients Cook Inlet Housing Authority Northrim Bank Alaska Housing Finance Corp. HDR Engineering The Municipality of Anchorage The City of Valdez Alaska Industrial Development & Export Authority Wells Fargo Bank Key Bank State of Alaska Department of Natural Resources First National Bank Alaska Alaska First Bank Denali Alaska Credit Union Department of Justice Appraisal Assignments Various Multifamily, Land and Special Purpose Attwood Building Rent Study, Anch., AK Kenai Senior Housing Market Study, Kenai, AK Highlands Luxury Apartments, Anch., AK The Veco Building, Anch., AK City of Valdez Assessment, Valdez, AK Charter North Hospital, Anch., AK McKay Building, Anch., AK Alaska DOT Building, Juneau, AK Alyeska Pipeline Appraisal, Prudhoe - Valdez 15th Avenue Extension ROW Project, Anch., AK Saint Paul Health Clinic, St. Paul, AK Residential Mortgage Building, Anch., AK Sprucewood Housing; 300 Units Belson AFB 1.icensaffntiv .: 6A2 iN21 State of Alaska EYFackive: Br2812p21 Expires 0660,'2023 Department of Commerce. Community, and Economic Development Division of Corporations, Business, and Professional Licensing Board of Certified Real Estate Appraisers Licensee: BRIAN ZANE BETHARD License Type: Certified General Real Estate} Appraiser Status: Active Commissioner; Julie Anderson Blacksmith, Bethard and Carlson LLC. 207 General Education University of Alaska Anchorage, Bachelor of Arts, Journalism Public Communications, Minor Business, 2004 Service High School, Anchorage, Alaska — Graduate 1998 Appraisal Courses Taken Appraisal Institute- Basic Appraisal Principles; 1/2008 Appraisal Institute- General Appraiser Income Approach Part 1; 4/2008 Appraisal Institute- Uniform Standards of Professional Appraisal Practices; 11/2008 Appraisal Institute- Basic Appraisal Procedures; 3/2009 Appraisal Institute- General Appraiser Market Analysis and Highest & Best Use; 3/2010 Appraisal Institute- General Appraiser Sales Comparison Approach; 6/2010 Appraisal Institute- General Appraiser Site Valuation and Cost Approach; 6/2010 Appraisal Institute- General Appraiser Report Writing and Case Studies; 10/2010 Appraisal Institute- Real Estate Finance, Statistics and Valuation; 5/2011 Appraisal Institute- Income Valuation of Small, Mixed -Use Properties; 12/2012 IRWA- Principles of Real Estate Law; 12/2012 ASFMRA- Income Approach for General Appraisers; 4/2013 Appraisal Institute- Litigation Appraising: Specialized Topics and Applications; 3/2015 Appraisal Institute- National USPAP 7-hour Update; 4/2015 Appraisal Institute- National USPAP 7-hour Update; 4/2017 Appraisal Institute- Residential and Commercial Valuation of Solar; 5/2017 Appraisal Institute- Eminent Domain and Condemnation; 6/2017 Appraisal Institute- Uniform Appraisal Standards for Federal Land Acquisitions: Practical Applications; 4/2018 Appraisal Institute- How Tenants Create or Destroy Value: Leasehold Valuations and its Impact on Value; 5/2019 Appraisal Institute- National USPAP 7-hour Update; 6/2019 Appraisal Institute- Small Hotel/ Motel Valuation; 6/2021 Appraisal Institute- Cool Tools: New Technology for Real Estate Appraisers; 6/2021 Appraisal Institute- Subdivision Valuation; 6/2021 Appraisal Institute- National USPAP 7-hour Update; 6/2021 Certifications Alaska State Certification: General Real Estate Appraiser #970 Business Experience Black -Smith, Bethard and Carlson, LLC, Appraiser, October 2006 + Licensed Real Estate Agent, Alaska, December 2005 License#:A1State of Alaska Effective : 6,212021 22021 I Expires: 05f30i2023 Department of Commerce. Community. and Economic Development Division of Corporations. Business, and Professional Licensing Board of Certified Real Estate Appraisers Licensee: RYAN T MCGILLIVRAY License Type: Certified General Real Estate Appraiser Status: Active Commissioner: Julie .Anderson Blacksmith, Bethard and Carlson LLC. 208 Sponsored by. Regis Public Hearing:. April 12, 2021 CITY OF SEWARD, ALASKA RESOLUTION 2021-038 A RESOLUTION OF THE CITY COt: NCIL OF THE CITY OF SEWARD, ALASK:A, AUTHOR11ZING THE CITY MANAGER TO NEGOTIATE WITH CH LtGACHMIUT, TI I E SAL E: TERMS OF 3.31 ACRES OF CITY LAND LOCATED AT FORT RAYMONI) SLIB RE PLAT NO I LOT 7A AND PHYSICAL :ADDRESSES OF: 2101 DIMOND BLVD AT APPRAISED MARKET VALUE WHEREAS, on 1anuar,, 25. 2U_' 1, the City Council discussers a request frorn Chugachmiut to btiv ! 11 acres of city -oar ned land located at Fart ]Zwmiotid Sub Replat No 1 Lot 7A, with the physical address of2101 Dimond Boulevard; and WHEREAS, Chugachmiut is a 5010 tribal organization, formed in 1975 to provide health and social services to the Alaska Native/American Indian (AN/AI) population in the Chugach s-egion; and NN11E.REAS, Cliu4,acllnllut has partnered with the U.S. Government under the Indian. Health Service (Fi1S) ]tint N"ClltUre Construction Program to build a 15,000 square foot hub clinic in Seward: and WHEREAS, the Chugach region is composed of seven communities and villages in southcentral Alaska spanning approximately 15,625 square miles, with a combined population of approximately 2,200 Alaska Natives/American Indians, including Seward/Qutekcak; and WHEREAS, Chugachmiut, through an agreement with the U.S. Department of Veteran's Affairs, provides services to veterans living in Seward and the surrounding area; and. WHEREAS, in l QN' C IAL111,10uniut established the North titer 11ealth Clinic in Seward to provide basic primary care and to t-Unction its 11 regionai hub for the four N illage clinics staffed by Cr1111111L1.111C,,Health Aides; and WILE RLAS, in Chugachmiut last fiscal year, the North Star 1lealth Clinic processed 3,508 paticiii encounters in Seward and processed an additional 4,429 patient encounters to the foci ; cni sic pillage clinics for dental, medical and behavioral health purposes; and %N'IIEREAS, Chugachmiut has received support to build a new clinic in Seward from Alaska N lental Health Trust Authority, Qutekcak Native Tribe, SeaView Community Services, State Senator Gary Stevens, Congressmen Don Young, United States Senators Dan Sullivan and Lisa Murkowski; and 209 CITY OF SEWARD, ALASKA RESOLUTION 2021-038 WHEREAS, the City Council has repeatedly determined that development of the City is to the public 111t0l'ltit; ,:i11e1 1N'1.1ERFAS, Chugachmltlt'�, new chili, ww ill acid all1)r(1r1inmciv 24 new jobs and will boost. the local ec:onornw through greater consumer spenchn- and erl,enses associated with the operation of facility. which will be almost three tI1T]C5 the sire ot'thl /cased Simi,, tI10V c111-1-CIAV oCcUff, and WHEREAS, the City recognizes that the new positions will bring lirofessionil l)c•r-,onncl and their families to Seward, which will boost rental and/or home sales in Seward; and WHEREAS, the City's Strategic Plan states Seward is a communitN that prcrnlotes economic diversity, encourttgc.w growth of year-round businesses. desires eliviroillrlentalIv- responsible industry, and sceks ,lobs that promote a higher standard of 1IN! ing,; and WHEREAS, Chtigachmiut anticipates a minimum of 200 itinerant lochg]T7g claws, with cstatirants and personal shopping, as well, and acct"ri]l1y� awing purchases at local I . " FIE E REAS, Chugachmiut has fixed deadlines imposed by their federal partner; and NVII :REAS, Chugachmiut deeds a firm commitment from the City for the purchase of 3.31 acres before they order an expensive study that is r'cyuil-ccl: and WHEREAS, the City currently owns the property, legally dcscribed as: T IN R 1W Sec 34 Seward Meridian SW 0870012 Fart Raymond Sub Replat No l Lot 7A. with the physical address of2101 Dimond Boulevard; and WHEREAS, Seward City t" udc 7.D5.150(a) states, "tile (AN, shall not sell anv real property interest without first making ',in al}l)r�ilslal of the rair ninrket w altie ol'that interest. finless the City Council finds that the public interest ww i l l not be served by an appraisal"; and WHEREAS, the City h1anay. cr will negotiate the terms of the purchase with the property owner, and both parties ti,ree tO a J)LII'Chasc price to bQ dctcrimned by a property appraisal conducted hy NIc Swwain and Associates, Lind WHEREAS, Seward City Cock 7.(}5.120 states, "City Council may acquire or dispose of an interest in real prolicrty by negotiation, public auction, or sealed bid".. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to negotiate, on behalf of the City, a 04111 CITY OF SEWARD, ALASKA RESOLUTION 2021-038 Purchase and Sale Agreement, in substantial form as attached, with Chugachmiut, and to make such corrections and rxccLltc Such related documents as may be necessary to fulfill the intent of kill~ on bchalf of'the City OF se�vard. Section 2. The final proposed Purchase and Sale Agreement w itli C huIILIC111111Lit xh.11l Ix fi r ncy less than al pralsed tall' market VaILIC and shall be subject to furtlici- consideration and Null appi-oval by the City Counci I at a later date - Section 3. This resolution shall take effect imnied itcly upon adoption. PASSED AND APPROVED by the City Council of the City of5eward_ Alaska, this 12,h day of April, 2021. THF/CAT)1 O>F',$EWARD, ALASKA isty Terry Mayor c--.' AYES: Osenga, McClure, Casagranda, DeMoss, Terry NOES: None ABSEN : Seese.13aclaan ABS7 AI\: None ATTEST: crv1 C Brenda J. Bal lou, MMC A s y e r k City Clerk (City Seal) 11 i 4'r."8 �1#�• or- •�:�09f . .01 SEAL 211 Council Agenda Statement Meeting Date: April 12, 2021 To: City Council Through: Norm Regis, Acting City Manager From: Jackie Wilde, Community Development Director Agenda Item: A Resolution Authorizing the City Manager to Negotiate with Chugachmiut, The Sale Terms Of 3.31 Acres of City Land Located at Fort Raymond Sub Replat No I Lot 7A And Physical Addresses Of: 2101 Dimond Blvd At Appraised Market Value BACKGROUND & JUSTIFICATION: On January 25, 2021, the City Council discussed a request from Chugachmiut to buy 3.31 acres of city land located at Port Raymond Sub Replat No I lot 7A. Seward City Code 7.05,120 states City Council may acquire or dispose of an interest in real property by negotiation, public auction, or sealed bid. The City Council of the City of Seward, Alaska, has repeatedly determined that development of the City of Seward is in the public interest. Chugachmiut is a 501 (c)(3) tribal organization formed in 1975 to provide health and social services to the Alaska Native/American Indian (AN/Al) population in the Chugach region. The Chugach region is composed of seven communitie,, and villages in southcentral Alaska spanning approximately 15,625 Square miles, with a combined population of approximately 2,200 Alaska Natives/ American Indians including Seward/Qutekcak. In 1987, Chugachmiut established the North Star Health Clinic in Seward to provide basic primary care and to function as a regional hub for the four village clinics staffed by Community Health Aides. Chugachmiut's last fiscal year, the North Star Health Clinic processed 3,508 patient encounters in Seward and processed an additional 4,429 patient encounters to the four remote villagc clinics for dental, medical, and behavioral health purposes. Chugachmiut has partnered with the U.S. Government under the Indian Health Service Joint Venture Construction Program to build a 15,000 square foot hub clinic in Seward. Through an agreement with the U.S. Department of Veteran's Affairs, this provides services to veterans living in Seward and the surrounding area. Chugachmiut has received support to build a new clinic in Seward from Alaska Mental Health Trust Authority, Qutekcak Native Tribe, SeaV iew Community Services, State Senator Gary Stevens, Congressmen Don Young, United States Senators Dan Sullivan, and Lisa Murkowski. Chugachmiut's new clinic will add approximately 24 new jobs and will boost the local economy by greater consumer spending and expenses associated with the operation of a facility almost three times the size of the leased space they currently occupy. In addition to personnel based in Seward, the number of itinerants cycling through Seward in support of the facility will also bring increased, year-round consumption of hotel, restaurant, and other services. Chugachmiut anticipates a minimum of 200 itinerant lodging days with accompanying purchases at local restaurants and personal shopping as well. 248 February 1, 2021, Council held a work session regarding the possible disposition of city land located at Fort Raymond Sub Replat No 1 lots 7A and 10A. At the conclusion of this work session, Council directed the Planning and Zoning Commission to review the possible subdivision and sale of city property located at Fort Raymond. On March 2, 2021, Planning and Zoning approved Resolution 2021-006 titled, "Recommending City Council Approval of The Subdivision, Appraisal and Sale of City Land Located at Fort Raymond Sub Replat No 1 Lots 7A and 10A Physical Addresses Of: 2101 Dimond Blvd, 2109 Dimond Blvd and 905 Sea Lion Ave". Seward City Code 7.05.150 (a) states, "the City shall nat sell any real property interest without first making an appraisal of the fair market value of that interest, unless the City Council finds that the public interest will not be served by an appraisal." The City Manager or designee will negotiate a purchase price to be determined by a property appraisal conducted by McSwain and Associates. INTENT;_ Direct the City Manager or designee to negotiate the terms of the purchase with Chugachmiut to sell 3.31 acres located at Fort Raymond Sub Replat No 1 Lot 7A with the Physical Addresses of: 2101 Dimond Blvd; CONSISTENCY CHECKLIST: Yes No ' NIA Comprehensive Plan (document source here):3.1.1 Attract new business and industry to the greater Seward area 3.2.1 Promote residential and commercial development within the city of Seward and its vicinity in accordance with community values. 1-4 1.3.4.3 Health Care & Social Services Explore the feasibility of providing veterans care locally. 2.2.6 Health Care -- Support medical health care professionals to relocate to Seward. Encourage cooperation benveen all Health care 1. providers. Support educational, preventative and rehabilitation social X services. Retain Seward as the httb far social services on the eastern Kenai Peninsula. 3. 1. 1. ISupport efforts of village and regional Alaska Native corporations to expand business activities and services. Support Alaska Native cultural events and activities 3.1.1.6 Support existing public institutions in their efforts to maintain, expand and develop. Strategic Plan (document source here)., Economic Base: We are a community that promotes. economic diversity, encourages growth of year-round businesses, desires environmentally -responsible industry, and seeks jobs that promote a higher standard of living. 2. Growth Management and Land Use Planning: X We have an attractive community, in which to live, work, be educated and recreate, where growth is orderly and driven by community consensus. Growth and land use planning are coordinated through the collaboration of private and public entities. We pro»tote and facilitate balanced development. 249 Economic Base: We are a community that promotes econontic diversity, encourages growth of year- round businesses, desires eitviroit»teiitally-responsible industry, and seeks jobs that promote a higher standard of living..... Maintain and enhance medical and social services: We are a community that provides an integrated array of health care services designed to protect and improve the quality of life for all rcitizens 3. Other (list): 2014 Municipal Lands inventory and management plan X FISCAL NOTE: No fiscal impact associated with this resolution. Any land sale revenue will go to the General Fund. Approved by Finance Department; -��6144 ATTORNEY REVIEW: Yes X No Not Applicable RECOMMENDATION: Approve Resolution 2021- 038, Authorizing the City Manager to Negotiate with Chugachmiut, The Sale Terms Of 3.31 Acres of City Land Located at Fort Raymond Sub Replat No 1 Lot 7a And Physical Addresses Of: 2101 Dimond Blvd At Appraised Market Value arM Resolution 2021-103 Documents: • Agenda Statement • Resolution 2021-103 • Attachments: o Project Materials Estimate PAR City Council Agenda Statement Meeting Date: September 13, 2021 To: City Council From: Janette Bower, City Manager - Agenda Item: Resolution 2021-103: Authorizing the City Manager to Purchase Distribution System MaterialsPoles, Lines, Pole -top Assemblies, Support Assemblies, Insulators and Other Hardware —in an Amount not to Exceed $110,196, Including a 15% Contingency, for the Relocation of Poles and Power Lines to Accommodate an Alaska Department of Transportation (AKDOT) Shoulder Widening Project on the Seward Highway near Moose Pass, and Appropriating Funds Background and justification: At the request of the AKDOT, the City's Electric Department will relocate its distribution infrastructure (poles, conductors, insulators, and other related materials) between MP 17 and MP 22.5 along the Seward Highway near Moose Pass. The existing overhead electric distribution facilities impede the work AKDOT must perform to widen the shoulder and therefore those electric facilities are being moved anywhere from 15 to 30 feet based upon AKDOT engineering plans. AKDOT plans to begin work as soon as weather permits in the spring, and it has asked the City to get its work underway at the same time. To accommodate this request, it's important that the Electric Department order materials as quickly as possible since the supply chain could take six to eight months for some items. The Electric Department expects its part of the proj ect to take up to eight weeks to complete, with a materials' cost not to exceed $110,196 including a 15% contingency. The City will be reimbursed for all labor and materials related to the project. Consistency checklist: Comprehensive Plan: N/A Fiscal note: Funding from: Electric Fund Reserves 15000-0000-3400 to be reimbursed by AKDOT. Finance Department approval: ` 1 Attorne Review: Yes n No Not applicable Recommendation City Council approve Resolution 2021-103. Pall Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2021-103 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Purchase Distribution System Materials —Poles, Lines, Pole -top Assemblies, Support Assemblies, Insulators and Other Hardware —in an Amount not to Exceed $110,196, Including a 15% Contingency, for the Relocation of Poles and Power Lines to Accommodate an Alaska Department of Transportation (AKDOT) Shoulder Widening Project on the Seward Highway near Moose Pass, and Appropriating Funds WHEREAS, the existing electric distribution facilities impede the work AKDOT must perform between Mile Post 17 - 22.5 of the Seward Highway to widen the highway shoulder; and WHEREAS, electric distribution facilities will be moved anywhere from 15 to 30 feet based upon AKDOT engineering plans, and WHEREAS, AKDOT plans to begin the project in the spring and some electric materials could take up to eight months for delivery; and WHEREAS, the City will be reimbursed for all labor and material costs since this AKDOT project is federally funded. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to purchase electric distribution materials in an amount not to exceed $110,196, including a 15% percent contingency, to accommodate AKDOT's shoulder -widening project on the Seward Highway near Moose Pass. Section 2. Funding in the amount of $110,196 is hereby appropriated from Electric Fund Reserves account no. 15000-0000-3400 to operating supplies account no. 15000-3007-7215 Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of September 2021. 04VA City of Seward Victor Creek Pole Relocation Powerline Relocation Construction Cost Estimate 4/11/2019 (qty/items updated 9/3/2021) Material Costl Assembly Qty 1/0 ACSR Raven, primary 15300 ft $0.42 $6,426.00 25 kV 133% 1/0 1200 $4.50 $5,400.00 1/0 TPLX, secondary service 1141 $1.80 $2,053.80 1/0 TPLX, secondary Undgrd 300 $1.80 $540.00 350 MCM Undgrd TPLX 310 $4.25 $1,317.50 Pole 30/4 3 $610.00 $1,830.00 Pole 30/2 1 $650.00 $650.00 Pole 35/4 1 $680.00 $680.00 Pole 40/2 2 $1,000.00 $2,000.00 Pole 45/2 5 $1,300.00 $6,500.00 Pole 50/2 4 $1,750.00 $7,000.00 Pole 55/2 5 $2,000.00 $10,000.00 Pole 60/2 1 $2,500.00 $2,500.00 Pole 60/1 1 $3,000.00 $3,000.00 Pole 65/1 1 $3,500.00 $3,500.00 M2-11 9 $75.00 $675.00 VA5.21, 1mDeadend 3 $400.00 $1,200.00 VA1.11, 10 tangent 1 $180.00 $180.00 VC5.31F 30 single deadend 5 $500.00 $2,500.00 VC5.31H 30 single deadend 1 $750.00 $750.00 VC6.51A 30 double deadend angle 1 $600.00 $600.00 VC1.41, 30 tangent 13 $400.00 $5,200.00 VS1.01 Fused Cutout 2 $150.00 $300.00 HAL, single down guy 11 $80.00 $880.00 E1-4 1 $125.00 $125.00 HAL 1 $110.00 $110.00 E9-2 3 $125.00 $375.00 E9-3 11 $125.00 $1,375.00 E9-3C 4 $125.00 $500.00 TG-11A 3 $175.00 $525.00 E3-10 Guy Marker 29 $15.00 $435.00 F1-4P, (anchor, plate,24") 30 $200.00 $6,000.00 TA -RA (anchor, rock) 3 $200.00 $600.00 UA2 1 $690.00 $690.00 UA3 4 $700.00 $2,800.00 UK5 Sec Ped 2 $150.00 $300.00 UM12 URD Warning Sign 1 $25.00 $25.00 UM5 Sec Riser 3 $45.00 $135.00 UM1-7NC composite ground sleeve 2 $150.00 $300.00 UM6-1 Elbow 3 $110.00 $330.00 UM48-1 Pad Ground 2 $45.00 $90.00 VG1.7-15 1 $1,750.00 $1,750.00 VG1.7-25 1 $1,925.00 $1,925.00 UR2 (12x48) 1342 $0.00 UR2-1 (12x48) 225 $0.00 HDD 4 inch HDPE (2 each 85 Ft length -BORE) 170 $0.00 UG6-25 Padmount X-form 1 $3,200.00 $3,200.00 UG7-25 Padmount X-form 1 $3,200.00 $3,200.00 Transformer x-fer existing 4 $0.00 $0.00 J5, secondary assembly 1 $12.00 $12.00 J6, secondary assembly 10 $12.00 $120.00 J10 secondary assembly 4 $12.00 $48.00 2 inch Conduit 100 $3.25 $325.00 4 inch Conduit 530 $8.20 $4,346.00 Underground Feed Meter Base Conversion 12 1$250.00 1$500.00 Total $95,823.30 ►AM Resolution 2021-104 Documents: • Agenda Statement • Resolution 2021-104 • Attachments: o Appendix A o Project Cost Information o IRS Code PA City Council Agenda Statement Meeting Date: September 13, 2021 To: City Council From: Janette Bower, City Manager Agenda Item: Resolution 2021-104 Declaring Its Intention to Reimburse Itself from Proceeds of One or More Tax -Exempt Financings for Certain Expenditures Made/Or to be Made in Connection with the Acquisition, Construction and Equipping of Certain Electric System Capital Improvements Background and justification: On July 26, 2021, the Electric Department delivered a presentation to City Council which demonstrated the condition of the deteriorating electrical transmission system. In order to address the critical infrastructure needs, a major capital improvement project has been identified. All costs for the project, including labor and material, have been identified and evaluated by an engineer. The total cost of the project is estimated to be $19.4 million, which includes labor. Funding sources have been researched by Finance and it has been determined that a revenue bond is the best financing option for funding the large project due to the long-term debt structure of the bond. The City has applied for a revenue bond, through the Alaska Municipal Bond Bank Authority, in the amount of $18 million to fund the project. Prior to the approval of the City's application, the City's Bond Counsel recommends the City pass a resolution declaring the intention to seek reimbursement for qualifying preliminary project costs with bond proceeds for expenses incurred before the bond is issued. The Internal Revenue Code provides the ability for reimbursement of qualifying preliminary expenditures. However, any prolonged delay in issuing the bond could result in project costs being solely paid for by the City without reimbursement. This reimbursement resolution provides a mechanism to allow for reimbursement of certain costs to be paid with proceeds of the City's tax-exempt bond. Consistency checklist: Comprehensive Plan: N/A Strategic Plan: N/A Other: N/A Fiscal note: There is no cost associated with this resolution. Preliminary expenditures will be spent out of Electric Fund reserves with the intent of reimbursement after the issuance of the bond. Finance Department approval: 4 220 Attorney Review: Yes F No ❑ Not applicable ❑ Recommendation City Council adoption of Resolution 2021-104. ►414 Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2021-104 A Resolution of the City Council of the City of Seward, Alaska, Declaring Its Intention to Reimburse Itself from Proceeds of One or More Tax -Exempt Financings for Certain Expenditures Made/Or to be Made in Connection with the Acquisition, Construction and Equipping of Certain Electric System Capital Improvements WHEREAS, the City of Seward, Alaska ("City") owns, operates, and maintains an electric system ("System") which needs certain additions, improvements and extensions, as more fully described in Appendix A attached hereto, ("Capital Projects"); and WHEREAS, the City will pay on and after the date hereof (or has paid beginning no earlier than the 60 days prior to adoption of this resolution) certain expenditures ("Expenditures") in connection with the Capital Projects; WHEREAS, the Council of the City has determined that the money to be advanced on and after the date hereof (or previously advanced no more than the 60 days prior to adoption of this resolution) to pay Expenditures are available only for a temporary period and it is necessary to reimburse the City for the Expenditures from proceeds of one or more issues of tax-exempt bonds ("Bonds"). NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City hereby officially declares its intent under Treas. Regs. Section 1.150- 2 to reimburse the City with proceeds of the Bonds for Expenditures with respect to the Capital Projects made no more than 60 days prior to the date hereof. The City reasonably expects on the date hereof that it will reimburse the Expenditures with proceeds of Bonds. Section 2. Each Expenditure was and will be of a type properly chargeable to a capital account under general federal income tax principles (determined in each case as of the date of the Expenditure). Section 3. The maximum cost of the Capital Project is expected to be no greater than $18 million. Section 4. This resolution shall take effect immediately upon adoption and approval. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 13th day of September, 2021. {01187440}Appendix A owl APPENDIX A Description of Capital Projects Each project referenced below constitute capital improvements, which are, or will be, owned, operated and maintained by the City of Seward. • Nash Road transmission upgrades and extensions, including addition of 1.3 miles of under -build to connect Nash Road distribution to SMIC substation and replacement of tangent poles. • Seward Highway transmission equipment replacement and upgrades. • Lawing, Fort Raymond and SMIC substations transmission replacements and upgrades. • Primrose transformer replacement and upgrades. • Victor Creek transformer replacement and upgrades. • Spring Creek substation upgrades. • Harbor substation upgrades. 223 9/1/2021 The following scope is based on the 8/12/2021 site visit and Chris Davis follow-up email. Estimates are added for City of Seward's use. Material prices are are current and include no escalation beyond 8/31/2021 ROW assumes the City will deal with easements on City owned property and ADOT ROW. Generation during construction has not been included in estimates. DescriptionProject 1. Nash Road (10%Contingency on Construction) Phase 1, Existing Upgrade Plans $ 1,396,580.00 $ 884,992.74 $ 2,281,572.74 $ 228,157.27 $ 2,509,730.01 Add 1.3 miles distribution under -build to connect the Nash Road Distribution to $ 167,851.81 $ 245,874.02 $ 310,066.33 $ 31,006.63 $ 341,072.96 the SMIC distribution to provide an alternate voltage feed Add motor operated, SCADA controlled 115kV switch at the intersection of $ 12,000.00 $ 30,000.00 $ 42,000.00 $ 4,200.00 $ 46,200.00 Seward Highway and Nash Road Engineering $ 18,600.00 $ 18,600.00 $ 18,600.00 Phase 2, Existing 115kV Upgrade Plans $ 108,775.00 $ 214,045.89 $ 322,820.89 $ 32,282.09 $ 355,102.98 Replace old tangent poles that were not replaced in the original plans. $ 23,200.00 $ 97,535.94 $ 120,735.94 $ 12,073.59 $ 132,809.53 Engineering $ 7,440.00 $ 7,440.00 $ 7,440.00 2. Seward Hwy Transmission (10%Continency on Construction) 3,410,955.48 Complete constriction of plans to rebuild the last 1/2 mile of line into Fort Raymond $ 206,207.50 $ 181,232.66 $ 387,440.16 $ 38,744.02 $ 426,184.18 from 69kV to 115kV. 2. Seward Highway 69kV to 115kV Transmission Upgrade Sub -totals $ 0. 3. Substation Voltage Conversion (15%Contingency): Needs to happen simultaneously with multiple contractors while generation is running 1. Lawing Substation: Replace the existing failing circuit switcher over the transformer with 115kV $ 12,000.00 $ 30,000.00 $ 42,000.00 $ 6,300.00 $ 48,300.00 automated circuit switcher designed for final voltage configuration. Remove 25 MVA 69x115kV-12.5kV transformer See above Remove 2.51AVA 12.5kV-24.9kV step-up transformer. $ 12,000.00 $ 12,000.00 $ 1,800.00 $ 13,800.00 Install 2.51AVA 115kV-24.9kV stepdown transformer and appropriate protection $ 254,240.00 $ 732,478.00 $ 986,718.00 $ 148,007.70 $ 1,134,725.70 (Size to be verified by existing demand over last year.) Added protection relays and SCADA to be dertermined. $ 25,000.00 $ 20,000.00 $ 45,000.00 $ 6,750.00 $ 51,750.00 Engineering $ 119,682.57 $ 119,682.57 $ 119,682.57 2. Fort Raymond Substation: The only thing that remains is the generator step up $ 1,607,798.85 $ 2,393,158.65 $ 4,000,957.50 $ 600,143.63 $ 4,601,101.13 transformers and the 12.5kV buswork Includes replacing existing ground grid Includes replacing existing 69kV overhead bus/switches/breaker with 115kV bus/switches/breaker Includes replacing existing 10M VA 69kV-12.5kV transformers with 10M VA 115kV-12.5kV transformers. Includes replacing five external oil filled breakers with new Viper Reclosers using new 351R control. Added protection relays and SCADA to be dertermined. Engineering $ 460,110.11 $ 460,110.11 $ 460,110.11 3. SMIC Substation: Replace 69kV Circuit Switcher with 115kV circuit switcher. $ 13,000.00 $ 27,000.00 $ 40,000.00 $ 6,000.00 $ 46,000.00 4. Primrose Transformer: Replace existing 69kV-24.9kV transformer with 115kV- 24.5kV transformer sized at 125%of the maximum demand over the last year. Added $ 276,240.00 $ 750,478.00 $ 1,026,718.00 $ 154,007.70 $ 1,180,725.70 protection relays and SCADA to be dertermined. ROW and Permitting $ 75,000.00 $ 75,000.00 $ 75,000.00 Engineering $ 118,072.57 $ 118,072.57 $ 118,072.57 5. Victor Creek Transformer: Replace existing 69kV-24.9kV transformer with 115kV- 24.5kV transformer sized at 125%of the maximum demand over the last year. Added $ 276,240.00 $ 750,478.00 $ 1,026,718.00 $ 154,007.70 $ 1,180,725.70 protection relays and SCADA to be dertermined. ROW and Permitting $ 75,000.00 $ 75,000.00 $ 75,000.00 Engineering $ 118,072.57 $ 118,072.57 $ 11,807.26 $ 129,879.83 4. SMIC 0,. 0... Substation Refurbishment & N-1 1. Refurbish existing substation (20%Contingency on Construction) Fix Load Tap Changer on existing 25MVA 69x115kV-12.5kV transformer $ 35,000.00 $ 65,000.00 $ 100,000.00 $ 20,000.00 $ 120,000.00 Remove vegetation $ 4,000.00 $ 4,000.00 $ 800.00 $ 4,800.00 Replace fence and ground grid $ 50,000.00 $ 50,000.00 $ 100,000.00 $ 20,000.00 $ 120,000.00 Replace existing antique differential relays with modern relays $ 20,182.00 $ 17,621.00 $ 37,803.00 $ 7,560.60 $ 45,363.60 Replace three external oil filled breakers with new Viper Reclosers using same $ 112,500.00 $ 225,000.00 $ 337,500.00 $ 67,500.00 $ 405,000.00 351R control Engineering $ 69,516.36 $ 69,516.36 $ 69,516.36 2. Refurbish and move 25 MVA 69x115kV-12.5kV transformerto proposed substation after 3.1 complete above. Add 115kV circuit switcher, oil containment, ground grid, $ 611,260.00 $ 1,377,086.00 $ 1,988,346.00 $ 497,086.50 $ 2,485,432.50 and two Viper Reclosers for distribution feeders. (25%Contingency on Construction) Engineering $ 248,543.25 $ 248,543.25 $ 248,543.25 5. Proposed 4. SMIC Substation Refurbishment & N-1 Sub -totals $ 0000 $ 2,885,708.61 Harbor Substation (25%Contingency) 1. Extend the 115kV overhead to a new substation to be determined near the proposed cruise ship dock. This will require new construction plans and ROW work. $ 208,200.00 $ 246,384.80 $ 454,584.80 $ 113,646.20 $ 568,231.00 The overhead line is estimated to be 1-mile. ROW and Permitting along west side of Seward Highway. $ 122,500.00 $ 122,500.00 $ 122,500.00 Engineering $ 75,000.00 $ 75,000.00 $ 75,000.00 2. New 12 MVA 115kV-12.5kV transformer (Voltage TED), 115kV circuit switcher, oil containment, ground grid, and two Viper Reclosers for proposed cruise liner $ 491,260.00 $ 991,174.00 $ 1,482,434.00 $ 370,608.50 $ 1,853,042.50 distribution feeders. ROW and Permitting: No work assumed on existing city parcel $ - $ - Engineering $ 185,304.25 $ 185.304.25 $ 185,304.25 5. Proposed Harbor Substation Sub -totals 115kV Total $ 0• $ 7,616,376.84 :0 $ 9,329,539.71 $ 16,842,257.04 $ 2,532,489.39 :0, ,077.75 17 19,374,746.43 224 Internal Revenue Service, Treasury § 1.150-2 Proceeds of bonds used for reimbursement. (a) Table of contents. This table of contents contains a listing of the head- ings contained in § 1.150-2. (a) Table of contents. (b) Scope. (c) Definitions. (d) General operating rules for reimburse- ment expenditures. (1) Official intent. (2) Reimbursement period. (3) Nature of expenditure. (e) Official intent rules. (1) Form of official intent. (2) Project description in official intent. (3) Reasonableness of official intent. (f) Exceptions to general operating rules. (1) De minimis exception. (2) Preliminary expenditures exception. (g) Special rules on refundings. (1) In general —once financed, not reim- bursed. (2) Certain proceeds of prior issue used for reimbursement treated as unspent. (h) Anti -abuse rules. (1) General rule. (2) One-year step transaction rule. (i) Authority of the Commissioner to pre- scribe rules. (j) Effective date. (1) In general. (2) Transitional rules. (b) Scope. This section applies to re- imbursement bonds (as defined in para- graph (c) of this section) for all pur- poses of sections 103 and 141 to 150. (c) Definitions. The following defini- tions apply: Issuer means (1) For any private activity bond (ex- cluding a qualified 501(c)(3) bond, quali- fied student loan bond, qualified mort- gage bond, or qualified veterans' mort- gage bond), the entity that actually issues the reimbursement bond; and (2) For any bond not described in paragraph (1) of this definition, either the entity that actually issues the re- imbursement bond or, to the extent that the reimbursement bond proceeds are to be loaned to a conduit borrower, that conduit borrower. Official intent means an issuer's dec- laration of intent to reimburse an original expenditure with proceeds of an obligation. Original expenditure means an expend- iture for a governmental purpose that is originally paid from a source other than a reimbursement bond. § 1.150-2 Placed in service means, with respect to a facility, the date on which, based on all the facts and circumstances (1) The facility has reached a degree of completion which would permit its operation at substantially its design level; and (2) The facility is, in fact, in oper- ation at such level. Reimbursement allocation means an al- location in writing that evidences an issuer's use of proceeds of a reimburse- ment bond to reimburse an original ex- penditure. An allocation made within 30 days after the issue date of a reim- bursement bond may be treated as made on the issue date. Reimbursement bond means the por- tion of an issue allocated to reimburse an original expenditure that was paid before the issue date. (d) General operating rules for reim- bursement expenditures. Except as other- wise provided, a reimbursement alloca- tion is treated as an expenditure of proceeds of a reimbursement bond for the governmental purpose of the origi- nal expenditure on the date of the re- imbursement allocation only if: (1) Official intent. Not later than 60 days after payment of the original ex- penditure, the issuer adopts an official intent for the original expenditure that satisfies paragraph (e) of this section. (2) Reimbursement period (i) In gen- eral. The reimbursement allocation is made not later than 18 months after the later of (A) The date the original expenditure is paid; or (B) The date the project is placed in service or abandoned, but in no event more than 3 years after the original ex- penditure is paid. (ii) Special rule for small issuers. In ap- plying paragraph (d)(2)(i) of this sec- tion to an issue that satisfies section 148(f)(4)(D)(i) (I) through (IV), the "18 month" limitation is changed to "3 years" and the "3-year" maximum re- imbursement period is disregarded. (iii) Special rule for long-term construc- tion projects. In applying paragraph (d)(2)(i) to a construction project for which both the issuer and a licensed ar- chitect or engineer certify that at least 5 years is necessary to complete con- struction of the project, the maximum 149 01M § 1.150-2 reimbursement period is changed from "3 years" to "5 years." (3) Nature of expenditure. The original expenditure is a capital expenditure, a cost of issuance for a bond, an expendi- ture described in § 1.148-6(d)(3)(ii)(B) (relating to certain extraordinary working capital items), a grant (as de- fined in §1.148 6(d)(4)), a qualified stu- dent loan, a qualified mortgage loan, or a qualified veterans' mortgage loan. (e) Official intent rules. An official in- tent satisfies this paragraph (e) if: (1) Form of official intent. The official intent is made in any reasonable form, including issuer resolution, action by an appropriate representative of the issuer (e.g., a person authorized or des- ignated to declare official intent on be- half of the issuer), or specific legisla- tive authorization for the issuance of obligations for a particular project. (2) Project description in official in- tent(i) In general. The official intent generally describes the project for which the original expenditure is paid and states the maximum principal amount of obligations expected to be issued for the project. A project in- cludes any property, project, or pro- gram (e.g., highway capital improvement program, hospital equipment acquisition, or school building renovation). (ii) Fund accounting. A project de- scription is sufficient if it identifies, by name and functional purpose, the fund or account from which the original ex- penditure is paid (e.g., parks and recre- ation fund recreational facility capital improvement program). (iii) Reasonable deviations in project description. Deviations between a project described in an official intent and the actual project financed with reimbursement bonds do not invalidate the official intent to the extent that the actual project is reasonably related in function to the described project. For example, hospital equipment is a reasonable deviation from hospital building improvements. In contrast, a city office building rehabilitation is not a reasonable deviation from highway im- provements. (3) Reasonableness of official intent. On the date of the declaration, the issuer must have a reasonable expectation (as defined in § 1.148-1(b)) that it will reim- burse the original expenditure with 26 CFR Ch. 1 (4-1-15 Edition) proceeds of an obligation. Official in- tents declared as a matter of course or in amounts substantially in excess of the amounts expected to be necessary for the project (e.g., blanket declara- tions) are not reasonable. Similarly, a pattern of failure to reimburse actual original expenditures covered by offi- cial intents (other than in extraor- dinary circumstances) is evidence of unreasonableness. An official intent declared pursuant to a specific legisla- tive authorization is rebuttably pre- sumed to satisfy this paragraph (e)(3). (f) Exceptions to general operating rules (1) De minimis exception. Para- graphs (d)(1) and (d)(2) of this section do not apply to costs of issuance of any bond or to an amount not in excess of the lesser of $100,000 or 5 percent of the proceeds of the issue. (2) Preliminary expenditures exception. Paragraphs (d)(1) and (d)(2) of this sec- tion do not apply to any preliminary expenditures, up to an amount not in excess of 20 percent of the aggregate issue price of the issue or issues that fi- nance or are reasonably expected by the issuer to finance the project for which the preliminary expenditures were incurred. Preliminary expendi- tures include architectural, engineer- ing, surveying, soil testing, reimburse- ment bond issuance, and similar costs that are incurred prior to commence- ment of acquisition, construction, or rehabilitation of a project, other than land acquisition, site preparation, and similar costs incident to commence- ment of construction. (g) Special rules on refundings (1) In general once financed, not reimbursed. Except as provided in paragraph (g)(2) of this section, paragraph (d) of this section does not apply to an allocation to pay principal or interest on an obli- gation or to reimburse an original ex- penditure paid by another obligation. Instead, such an allocation is analyzed under rules on refunding issues. See §1.148-9. (2) Certain proceeds of prior issue used for reimbursement treated as unspent. In the case of a refunding issue (or series of refunding issues), proceeds of a prior issue purportedly used to reimburse original expenditures are treated as unspent proceeds of the prior issue un- less the purported reimbursement was 150 PKI.1 Internal Revenue Service, Treasury a valid expenditure under applicable law on reimbursement expenditures on the issue date of the prior issue. (h) Anti -abuse rules (1) General rule. A reimbursement allocation is not an expenditure of proceeds of an issue under this section if the allocation em- ploys an abusive arbitrage device under §1.148-10 to avoid the arbitrage restric- tions or to avoid the restrictions under sections 142 through 147. (2) One-year step transaction rule(i) Creation of replacement proceeds. A pur- ported reimbursement allocation is in- valid and thus is not an expenditure of proceeds of an issue if, within 1 year after the allocation, funds cor- responding to the proceeds of a reim- bursement bond for which a reimburse- ment allocation was made are used in a manner that results in the creation of replacement proceeds (as defined in §1.148-1) of that issue or another issue. The preceding sentence does not apply to amounts deposited in a bona fide debt service fund (as defined in §1.148- 1). (ii) Example. The provisions of para- graph (h)(2)(i) of this section are illus- trated by the following example. Example. On January 1, 1994, County A issues an issue of 7 percent tax-exempt bonds (the 1994 issue) and makes a purported reim- bursement allocation to reimburse an origi- nal expenditure for specified capital im- provements. A immediately deposits funds corresponding to the proceeds subject to the reimbursement allocation in an escrow fund to provide for payment of principal and in- terest on its outstanding 1991 issue of 9 per- cent tax-exempt bonds (the prior issue). The use of amounts corresponding to the pro- ceeds of the reimbursement bonds to create a sinking fund for another issue within 1 year after the purported reimbursement alloca- tion invalidates the reimbursement alloca- tion. The proceeds retain their character as unspent proceeds of the 7 percent issue upon deposit in the escrow fund. Accordingly, the proceeds are subject to the 7 percent yield restriction of the 1994 issue instead of the 9 percent yield restriction of the prior issue. (i) Authority of the Commissioner to prescribe rules. The Commissioner may by revenue ruling or revenue procedure (see §601.601(d)(2)(ii)(b) of this chapter) prescribe rules for the expenditure of proceeds of reimbursement bonds in circumstances that do not otherwise satisfy this section. § 1.150-4 (j) Effective date (1) In general. The provisions of this section apply to all allocations of proceeds of reimburse- ment bonds issued after June 30, 1993. (2) Transitional rules(i) Official in- tent. An official intent is treated as satisfying the official intent require- ment of paragraph (d)(1) of this section if it (A) Satisfied the applicable provi- sions of §1.103-8(a)(5) as in effect prior to July 1, 1993, (as contained in 26 CFR part 1 revised as of April 1, 1993) and was made prior to that date, or (B) Satisfied the applicable provi- sions of § 1.103 18 as in effect between January 27, 1992, and June 30, 1993, (as contained in 26 CFR part 1 revised as of April 1, 1993) and was made during that period. (ii) Certain expenditures of private ac- tivity bonds. For any expenditure that was originally paid prior to August 15, 1993, and that would have qualified for expenditure by reimbursement from the proceeds of a private activity bond under T.D. 7199, section 1.103-8(a)(5), 1972 2 C.B. 45 (see §601.601(d)(2)(ii)(b)) of this chapter, the requirements of that section may be applied in lieu of this section. [T.D. 8476, 58 FR 33551, June 18, 1993; 58 FR 44453, Aug. 23, 1993] § 1.150-4 Change in use of facilities fi- nanced with tax-exempt private ac- tivity bonds. (a) Scope. This section applies for purposes of the rules for change of use of facilities financed with private ac- tivity bonds under sections 150(b)(3) (relating to qualified 501(c)(3) bonds), 150(b)(4) (relating to certain exempt fa- cility bonds and small issue bonds), 150(b)(5) (relating to facilities required to be owned by governmental units or 501(c)(3) organizations), and 150(c). (b) Effect of remedial actions (1) In general. Except as provided in this sec- tion, the change of use provisions of sections 150(b) (3) through (5), and 150(c) apply even if the issuer takes a remedial action described in §§ 1.142 2, 1.144-2, or 1.145-2. (2) Exceptions(i) Redemption. If non - qualified bonds are redeemed within 90 days of a deliberate action under § 1.145-2(a) or within 90 days of the date 151 Resolution 2021-105 Documents: • Agenda Statement • Resolution 2021-105 • Attachments: o Council CIP Survey Results o Council Overall Survey Results o Work Session ePacket May 24 o Work Session ePacket June 28 228 City Council Agenda Statement Meeting Date: September 13, 2021 To: City Council From: Janette Bower, City Manager - Agenda Item: Resolution 2021-105: Approving Certain General Fund Capital Improvement Projects for Planning, Prioritization, and Implementation Background and justification: In an effort to discern the City Council's desire regarding certain projects, City Administration provided City Council members a survey by which each member was able to rank their own input on the Capital Improvement priorities. As a follow up to this survey, work sessions took place in May and June of 2021 to discuss the survey results and evaluate which projects should be undertaken in the coming years. The Animal Shelter project that ranked as the first priority is underway and as such, it is not included in this resolution. With the United States Legislature likely to enact a trillion -dollar infrastructure bill in the coming months, it is important that the City of Seward not only prioritize its Capital Improvement projects, but also move those high priority projects to "shovel -ready", ensuring the likelihood of being given Federal financial support. This priority list will serve as the direction for Administration to begin work on these projects. While this resolution will provide general guidance, the actual order of project completion will also be a function of available funding, unforeseen circumstances that might arise, and grant opportunities that become available. The entire Capital Improvement Project listwill be included in the FY 2022 budget. Consistency checklist: Comprehensive Plan: N/A Fiscal note: No funding from the City is required. This is a priority list with no associated cost. Finance Department approval: Attorney Review: Yes ❑ No ❑ Not applicable �X Recommendation City Council approve Resolution 2021-105. 229 Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2021-105 A Resolution of the City Council of the City of Seward, Alaska, Approving Certain General Fund Capital Improvement Projects for Planning, Prioritization, and Implementation WHEREAS, the purpose of the Capital Improvement Plan (CIP) prioritization list is to provide general guidance and direction for administrative purposes and will be modified based upon available funding, unforeseen circumstances that might arise, and grant opportunities that become available; and WHEREAS, each year, the Seward City Council evaluates the overall Capital Improvement Project list as part of the budget process; and WHEREAS, in an effort to discern the City Council's desire regarding certain projects, the Seward City Council completed a survey which asked members to rank Capital Improvement Project priorities in April 2021; and WHEREAS, the Seward City Council held a work session on May 24, 2021, to discuss the Capital Improvement Plan and Council CIP priorities survey results; and WHEREAS, the Seward City Council held a work session on June 28, 2021, to discuss the Capital Improvement Plan prioritization; and WHEREAS, in anticipation of an infrastructure bill, it is important the City not only prioritize its Capital Improvement projects, but also move those high priority projects to "shovel -ready", ensuring they are more likely to be given Federal financial support. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council approves the following projects for planning, prioritization, and implementation: 1. Completion of the Lowell Creek Tunnel which is a collaboration between the City of Seward and United States Army Corp of Engineers. 2. Construction and relocation of Public Works into a new facility. 3. Addition of utility sites to municipal campground sites on the waterfront. 4. Purchase of Alaska Land Mobile Radios for public safety purposes. 5. Establishment of a Community Recreation Center. 230 CITY OF SEWARD, ALASKA RESOLUTION 2021-105 Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of September, 2021. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda Ballou, MMC City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Christy Terry, Mayor 0911 Council Members CIP Survey Results Baclaan DeMoss Osenga Terry McClure Seese Casagranda No Yes Yes Yes Yes would love to move Comment The current version is forward as quickly as Must proceed with good. Lets get it done possible this Campgrounds: General Fund 1 Additional utility sites Relocation of Public on waterfront Works building New animal shelter New animal shelter New animal shelter 2 Community Rec Lagoon boardwalk Center Construction New animal shelter Lowell Creek Tunnel Lowell Creek Tunnel rebuild 3 Community Rec Mobile & Portable Relocation of Public Parks & Rec Building Heat Loop Project center construction Radios for ALMR Works Building Demo Lowell Tunnel needs a full court press before I rated my decisions it fails and we have an on items that could emergency on our improve the livelihood hands. Animal shelter of citizens, while also low hanging fruit Comment being revenue ready to move generators. I rated forward. Moving City lowell creek tunnel Shop finally has good last as we are moving support and forward with the new momentum with project. I I JCouncil. Seward marine Electric Fund Fort Raymond terminal electical Fort Raymond Fort Raymond substation Fence upgrades for cruise T-Line Replace Nash Substation Fence substation fence Upgrade ships Rd upgrade upgrade Ships aren't asking for electrical upgrades at docks, but would be another large user if we make them connect. Fence at ft Comment raymond needs to get I really only have an done before someone opinion about #1 & #2 gets hurt. Then also (#2 choice was look at quality of downtown alleys infrastrure and underground) number of customers. Water Replace Lowell New water meter Distribuition Piping Replace Lowell Canyon 200k tank program - with auto- upgrades (ductile iron Canyon 200K tank with 500k tank readers Gateway Tank Roof pipe) with 500K tank Wastewater Watewater Lagoon Replace infrastructure Wastewater Lagoon SMIC lower lift station Wastewater lagoon sludge removal past userful life (75K) sludge removal construction sludge removal Comment Not very well versed on these projects. Harbor Replace K&L and Replace anodes on remainder of G float concrete floats NE Boat Launch Ramp NE Boat Launch Ramp Ne Boat launch ramp SMIC Pave City owned boat Additional power Improve drainage and Addtion of fire North Dock Paving yard roads stalls fence storage area hydrants Comment ►4cY: 10 9 8 6 5 4 3 2 1 0 Please rank the list of General Fund projects from highest priority to lowest priority. 18 16 14 12 10 8 6 4 2 0 OC \oa: ay,; off,: fir: a5 ��e: `o�:`ae. 0J\a p�eJ ``ear �5 ctaa� toJc Qa,\\ e o �oJ,c Qo�a aIle, t�•p aoaa �a� �o� Jc Quo, Pe era oc �e \toa Pe �Q�Ogee ooQ 4f �a� a�• �J a'� y`tr La o0 4a e� � J ca ac �a ac �C. ,��, Co�� Please rank the list of Electric enterprise fund projects from highest priority to lowest. Convert T-Line Downtown Gateway Lake Drive Old Mill #3 Radiator Woodland Fort Security Seward transmission Replace Nash Alleys (2nd, Upper and (Stoney Hoods Hills Raymond Upgrades to Marine line to 115 kV Rd 3rd, 4th and Lower Creek) Substation substations Terminal 5th) Fence electric Underground Upgrade upgrades for cruise ships 233 ■ Score ■ Score 8 6 5 4 3 2 1 0 Please rank the list of Water enterprise fund projects from highest priority to lowest priority. Replace Lowell Distribution Replace 10" and Replace 10" and Gateway Tank Abandon wells Hypochlorite Replace water New Water Canyon 200K Piping upgrades 14" AC water 14" AC water Roof at Fort Raymond Generator - lines - Elm Street Meter Program - gallon Tank with (ductile iron line between line between SMIC Pump with auto- 500K gallon tank pipe) Phoenix and Sea Phoenix and Sea House - readers Lion Lion Construction Please rank the list of Wastewater enterprise fund projects from highest priority to lowest priority. 6 5 4 3 2 1 0 Qua `c� mac ��c `c� eQ\a ca�J oJ� a`'� \aca L\o L\o �•Q Q� o\e to 234 ■ Score ■ Score 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Please rank the list of Harbor enterprise fund projects from highest priority to lowest priority. Replace K&L and remainder NE Boat Launch Ramp 50 Ton wash down pad of G Float At� 5 Ton crane 1-dock Replace anodes on concrete floats Please rank the list of SMIC enterprise fund projects from highest priority to lowest priority. Improve Drainage and North dock paving Pave City owned boat Additional power stalls Additional restroom Addition of Fire Fence Storage Area yard roads Hydrants 235 ■ Score ■ Score Seward City Council Work Session Packet Topic: Discuss Capital Improvement Plan (CIP) Prioritization May 24, 2021 Cite Council Chambers Beginning at 5.00 p.m. OWN �4Af1t� TEMPORARY PROCESS FOR CITIZEN COMMENTS AT MAY 24, 2021 CITY COUNCIL WORK SESSION The Seward City Council will hold a Work Session on Monday, May 24, 2021. Because the City of Seward is currently experiencing a declared public health emergency due to Coronavirus Disease 2019.(COVID-19), alternate methods for providing comments has been created. CITIZEN COMMENTS 1. WRITTEN comments can be emailed to clerk-@cilyofseward.net. Identify whether you want your comments forwarded to council immediately, read aloud at the work session, or both. 2. TELEPHONIC comments can be made by sending an email request to clerk a cityofseward.net. Be sure to include the phone number you wished to be called. Questions? Call the city clerk at 2244045. How To Virtual& ATTEND The Meeting L The meeting will be Live Streamed on the city's YouTube page. Log onto YouTube and type "City of Seward Alaska" into the search bar. 2. Listen on the radio. Tune to KIBH-FM 91.7 3. Watch on television. Tune into GCI Cable Channel 9. PAGIN CITY COUNCIL WORK SESSION Monday, May 24, 2021 at 5:00 p.m. TOPIC: Discuss Capital Improvement Plan (CIP) Prioritization City Council Survey Questions.............................................................. Pg. 2 SurveyResults ... •............................................................ Pg. 12 Survey Roll Up ....................................................... ...... Pg. 13 Department Heads SurveyRoll Up.............................................................. Pg. 16 238 XOIF SE Council Member CIP Survey Results City of Seward — May 10t', 2021 CIP Priorities Survey (--, Survey asked council r-nembersto rank CIP projects for each fund by priority r) Results presented show highest ranked projects from each fund o Results are based on completed surveys received by5/10/21 c, Complete survey results and comments can be found in the packet 240 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Yes No Are you in favor of the current proposal by administration for the d wd Mr. r I TRIM e F M, h M General Fund Top Priorit�A Relocation of Publ Works Building 20% Campgrounds: Additional utility sites on waterfront 20% New Animal Shelter 60% ►zy: Electrir Pi ind T-Line replacement Nash Seward marine terminal electrical upgrades far cruise ships 20°% Fort Raymond substation fence upgrade 60% 243 Public Works - Water Distribuition piping upgrades (ductile iron pipe) 20% Gateway tank roof 20% Replace Lowell Canyon 200k gallon tank with 500k gallon tank 40% Aw water meter program - with auto - readers 20% 244 SMIC lower lift stati construction 20% Wastewater lagoon sludge removal 60% Replace infrastructure past useful life 20% my Replace anodes o concrete floats 20% NE boat launch ramp 60% Replace K & L and remainder of G floats 20% SMIC Addition of fire hydrants 20% Improve drainage and fence storage area 20% 10 KInrth rPryCL �avin� P 44k M,i pave City owned boat w yard roads 20% r Additional power stalls 20% Oz,VA Questions CT� Comments Council Members CIP Survey Results Baclaan DeMoss Osenga I Terry I McClure Seese Casagranda ProposalAnimal Shelter No Yes Yes Yes Yes would love to move Comment The currentversion is forward as quickly as Must proceed with good. Lets get it done possible this Campgrounds: General Fund 1 Additional utility sites Relocation of Public on waterfront Works building New animal shelter New animal shelter New animal shelter 2 Community Rec Lagoon boardwalk Center Construction New animal shelter Lowell Creek Tunnel Lowell Creek Tunnel rebuild 3 Community Rec Mobile & Portable Relocation of Public Parks & Rec Building Heat Loop Project center construction Radios for ALMR Works Building Demo Lowell unne needs a full court press before I rated my decisions it fails and we have an n items that could emergency on our improve the livelihood hands. Animal shelter of citizens, while also low hanging fruit Comment being revenue ready to move enerators. I rated forward. Moving City lowell creek tunnel Shop finally has good last as we are moving support and orward with the new momentum with project. I I JCouncil. Seward marine Electric Fund Fort Raymond terminal electical Fort Raymond Fort Raymond substation Fence upgrades for cruise T-Line Replace Nash Substation Fence substation fence Upgrade ships Rd upgrade upgrade Ships aren't asking for electrical upgrades at docks, but would be another large user if we make them connect. Fence at ft Comment raymond needs to get I really only have an done before someone opinion about 91 &rig gets hurt. Then also (rig choice was look at quality of downtown alleys Infrastrure and underground) number of customers. Water- Replace Lowell New water meter Distribuition Piping Replace Lowell Canyon 200k tank program - with auto- upgrades (ductile iron Canyon 200K tank with SOOk tank readers Gateway Tank Roof pipe) with SOOK tank Wastewater Watewater Lagoon Replace infrastructure Wastewater Lagoon SMIC lower lift station Wastewater lagoon sludge removal past userful life (75K) sludge removal construction sludge removal Comment Not verywell versed on these projects. Harbor Replace K&L and Replace anodes on remainder of G float concrete floats NE Boat Launch Ramp NE Boat Launch Ramp Ne Boat launch ramp SMIC Pave City owned boat Additional power Improve drainage and ddtion of fire North Dock Paving and roads stalls fence storage area hydrants Comment KM 19 � g 7 6 5 4 3 2 1 0 Please rank the list of General Fund projects from highest priority to lowest priority. 18 16 14 12 10 8 6 4 2 0 Q cp .` Q\�'• oc,: \a ,• ae; �a,: e`. L` o 91, yh ov o<,a ' c to �a Q oc �� 9t �� e� 9 pata�a a`ac�\Qa�.�ea��oo aboo Este C;� v Please rank the list of Electric enterprise fund projects from highest priority to lowest. Convert T-Line Downtown Gateway Lake Drive Old Mill #3 Radiator Woodland Fort Security Seward transmission Replace Nash Alleys (2nd, Upper and [Stoney Hoods Hills Raymond Upgrades to Marine line to 115 kV Rd 3rd, 4th and Lower Creek] Substation substations Terminal 5th) Fence electric Underground Upgrade upgrades for cruise ships 13 ■ Scare ■ Score 250 Please rank the list of Water enterprise fund projects from highest priority to lowest priority. s -- - 6 5 4 3 2 1 0 a Scare Replace Lowell Distribution Replace 10" and Replace 10" and Gateway Tank Abandon wells Hypochlorite Replace water New Water Canyon 200K Piping upgrades 14" AC water 14" AC water Roof at Fort Raymond Generator - lines - Elm Street Meter Program - gallon Tank with (ductile iron line between line between SMIC Pump with auto- SOOK gallon tank pipe) Phoenix and Sea Phoenix and Sea House - readers Lion Lion Construction Please rank the list of Wastewater enterprise fund projects from highest priority to lowest priority. 7 6 S 4 3 2 1 0 ■ Snare oc; to oo mac; y5r 41A A�5 ale \aoy `\0 G\o� J<ao Fo 14 041.11 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Please rank the list of Harbor enterprise fund projects from highest priority to lowest priority. Replace K&L and remainder NE Boat Launch Ramp 50 Tan wash dawn pad 5 Tan crane 1-dock Replace anodes on concrete of G Float floats Please rank the list of SMIC enterprise fund projects from highest priority to lowest priority. Improve Drainage and North dock paving Pave City owned boat Additional power stalls Additional restroom Addition of Fire Fence Storage Area yard roads Hydrants 15 ■ Scare Scare owl Seward City Council Work Session Packet Topic: Discuss Capital Improvement Plan (CIP) Prioritization June 28, 2021 City Council Chambers Beginning at 5: 00 p.m. 253 CITY COUNCIL WORK SESSION Monday, June 28, 2021 5:00 p.m. TOPIC: Discuss Capital Improvement Plan (CIP) Prioritization PRESENTATIONS Department Page Fire 2 Police 3 Harbor & SMIC • Anode Replacement 13 • G, K & L Floats 17 • NE Launch Ramp 21 • SMIC 26 Electric 29 Public Works 38 Information Technology Parks & Recreation 55 Community Development 254 1 New Fire Station The current fire station was built in 1963 and very few changes or upgrades have been done since. Designed for just a limited staff and smaller equipment, the building has been long past it's service life. Staff have to share office space leaving no privacy and difficultly in focusing with so many projects each staff member is working on. Our apparatus bay is cramped tight with little walking room between trucks and this makes for a dangerous situation when backing into the bay and difficulty in checking our equipment. The station will not accommodate the Ladder truck due to its height and length restrictions and therefore we do not get credit for having an aerial for ISO purposes. Every time we pull out of the bay we drag and tear up the sidewalk. Our ventilation system is inadequate and dangerous carcinogen fumes from our bunker gear can freely float into guest and office space. Plumbing issues continue to plague the building with leaks, valves frozen, main water line valve frozen open and rusty pipes providing drinking water. Asbestos has not been remediated, only covered up. Our utilities continue to skyrocket with little to no insulation and aging infrastructure. We are requesting $250,000 for the need's assessment and shovel ready design so that we may apply for grants or seek loans for the construction of a new fire station. We are also willing to look at combining with other departments such as police and or community development if that would assist the city in other long-term projects. We have had state and federal senator offices inquiry about this project, and having a shovel ready design could put us in a position to move forward if state or federal dollars become available. Hydrant upgrades Current national standard for the installation and spacing of fire hydrants is one every 500 feet, any further can greatly delay fire department operations. While much of Seward proper is well covered there are still areas that are much greater than the standard. At SMIC, there are vast areas that far exceed 500 feet. On the last boat fire at SMIC we laid over 900 feet of 5" supply hose. With limited personnel this becomes a huge problem for us. Each section of hose weighs 110lbs empty. So not only do we have to lay this hose, we have to pick it up after the fire, after the firefighters are already tired. The faster we can lay hose, the faster we can put out the fires. Much of SMIC is thousands of feet away from the nearest hydrant. We recommend that with more development at SMIC that the infrastructure include fire hydrants and install additional fire hydrants to unserved areas as soon as possible. OPIR POLICE CAPITAL IMPROVEMENT PROJECT Building the Future of Seward's Public Safety CURRENT NEEDS • Currently, the only major project directly affecting the Seward Police Department is the need for a proper facility to conduct police, corrections and dispatch operations. • One other project facing several city departments and related to the Police Department is an issue with ALMR Radios and the purchase of radios which can accept the current configuration. PUBLIC SAFETY BUILDING • The much larger scale need for the police department is a new facility. The current department workspace is too small with inadequate space for personnel, necessary functions, and privacy for our customers. It does not meet the expectations of a modern police facility. The building itself is a hazard with water leaks, asbestos walls, exposed pipes wrapped in asbestos, and an ancient fire detection system in the jail which may or may not work. The building is beyond inefficient and costs the taxpayers a boatload of money every year in heating costs and repairs. A water main coming into the jail from under Sth Avenue is leaking and threatening to break. If it does, it will flood the jail and the entire basement of city hall. Should this happen, besides the risk of loss of life, the city's records, evidence, armory, heating and electric systems for city hall will be impacted and likely destroyed before it can be contained and controlled. WHAT DOES A POLICE DEPARTMENT NEED? ➢ Community room / Training Room / EOC ➢ Armory and ammo storage ➢ Lobby/Reception (ADA accessible) Rooms to take reports near the lobby Public Restrooms ➢ Interview Rooms Evidence Processing Room/Lockers Evidence Storage ➢ Computer Crime Lab ➢ Child Abuse Interview Room ➢ Controlled Suspect Restroom ➢ Dispatch with adequate space ➢ Evidence Packaging area ➢ Safety Precaution sinks, eyewash, etc. CONTINUED ➢ Executive Offices ➢ Staff Offices Y Secured File Storage Y Meeting Room / Recruiting Interview and Testing space ➢ Fitness center Y Parking and Impound Y Sally Port The items listed are just a snapshot, and not a complete list of the many things the Police Department needs to function to its best capability. The privacy issue should not be overlooked. Currently, people must stand in a public hallway and air their business at the dispatch window or be brought into the entrance area where people are constantly coming and going. The situation does not lend to respectful, quality service which is something we are trying to provide to everyone. Imagine trying to report a sexual assault in this manner! Our citizens deserve better than this. THINGS TO CONSIDER We should give thought to ways we can make this building better serve the city. For example, we can take a Multi -Agency / Justice Complex approach and incorporate space for other law enforcement agencies such as the Alaska State Troopers. The Alaska Court System could also be relocated to the facility. Even city council could move to this building. Additionally, with a well thought out community room we can hold trainings, meetings, or do other functions to serve the community. Without a doubt, the Fire Department and the Police Department should share the facility as this will take care of the needs of both and place the hub of the city's public safety in one location. Not to mention, building one facility for both departments will save the city a considerable amount of money. DISASTERS AND EMERGENCIES It is very important when a site for this building is selected it is done with emergency operations in mind. City hall sits at or in the tsunami inundation zone depending on which map you're seeing. It sits in the path of the Lowell Canyon creek's natural flow. No matter what, the hub of public safety shouldn't be in the direct path of two types of natural disasters, particularly when city hall is the location of our E.O.C. and we have no back-up. Seward needs a public safety building which can weather a natural disaster and continue to function, and it needs to be poised to stay functional and capable of response when a natural disaster strikes. We've dodged a few bullets in recent years with major earthquakes and tsunami warnings. It is paramount to take action to protect the citizens of the community, the employees of the city, and the city's assets as soon as possible. ALMR RADIOS To wrap this up, the last item on the list is our ALMR radios needing upgraded. The ALMR radio system was given an upgrade which will only work on today's modern radios. Most of the radios used in the Police Department vehicles have been reused over the years from vehicle to vehicle. Also, some of the department's handheld radios are quite old. While making these radios last as long as possible saves money, it leaves us in a predicament when something like this current upgrade comes along and all your old equipment is suddenly defunct. Working radios in public safety are of supreme importance. We are already taking steps to correct this situation and council can expect to see our resolution to the problem before them shortly. Z m n CAD ` n L Y m a 0 o_ -n ro m o r+ O m Q n (D Ea l4 rF u� E ' 1 E i mi R . a -4 �V M' I 1 14 L4 wl i 104 &A Min ttlq 0 IT tT 301b Aivoiofs PILING E-Float 71 F-Float 36 N-Float 42 J-Float 19 G-Float 18 Total 169 Anodes Engineers estimate $1,200 per anode Welded on $ 202,000.00 V;:; 1 MY OF SEWARD Harbor Departinent P. 0. Box 167 907,224.3138 907.224.7187 fa-x 110 Adams Street ki�t'borrna�ce�C cityc�Ise� irtl.nct Sem-Lrd, Alhtika 99664 Seward Harbor G, K and L Dock Replacement Project Summary The City of Seward Boat Harbor is poised to replace the remaining old docks in the northwesterly corner of the Boat Harbor. The attached grant applications based on the 2019 and 2020 engineering report (Block 4) as modified by experience and funding limitations. If successful the state funds for construction would be available in mid-2022. On May 6, 2020 the Port and Commerce Advisory Board PACAB approved a resolution 2020-002 recommending to Seward City Council to authorize the City Manager apply for the Harbor Facility Grant for SY 2022.On May 26, 2020 the Seward City Council in resolution 2020-036 authorizing the City Manager to apply for the Harbor Facility Grant and committed the local matching funds. Per the attached engineers drawing (Block 4), the scope of the project is proposed as follows: 1) Replace G-Dock in place. 2) Replace K-Dock in place. 3) Replace L-Dock in Place. 4) Drive new piling G, K and L Dock. The City of Seward working with R&M are currently at 95% design and are waiting on permitting to be 100% shovel ready. Project Need Statement This project will replace Docks that are over 50 years old. This project has been included in the City's Capital Improvement Plan since 2009. The 2019 — 2020 engineering report (Block 4) recommends that G, K and L Dock be replaced. G, K and L dock are the last remaining docks from when the State transferred the Seward harbor to the City of Seward. These docks are unsafe. The floating docks are slowly sinking — freeboard distance from the water to the deck, averages about half of a new dock (approximately 22 inches). The current docks do not float level — they are twisted and rock back and forth while walking down the main dock, the corner of G and L dock sinks and leans outboard as you walk around the corner. The deck height above the water varies from 12 to 12.5 inches. With the exception of L-Dock G and K dock have no bull rails installed which is a safety hazard. The wooden pilings are beyond their service life of 40 years, many are worn flat and the creosote has been scraped free allow marine borers to enter the wood. In 2011 a wind storm caused a broken piling. This project will replace the old creosote treated piling with stronger galvanized steel pilings. There are no light poles on G-dock and only 2 light poles on K-Dock and 2 light poles on L-Dock, this reduced lighting is a safety issue. Replacing the old docks is the best way to solve these safety and environmental issues and improve the economic viability of the Seward Boat Harbor. Seward Harbor Municipal Harbor Facility Grant Application Document in Support of Block #1 ►FKQ PARCEL 145f4010 PARCEL 145RO15 IJNnII / i I I I I So N TRAVEL LIFT DOCK zzzz �/ / l/ E 2242B25fi33 ,Q IOC CK 1 _ �L) tad ]SPACES .1 I I {I 25.0"=175 _- J k I t O n n AOA SLIP REMOVABLE NEWIUX20 BULRAIL 51.4 TRANSIENTFLCAT 16,, � a v✓' 1 .i �O NEADWALKF I �HEAOWALK. FLOAT NEW t6'0 1iV ANEW 10 •dSd , �� \ F ADA 6LIP REMOVABLE 2 PILING'LYP, �` rl`1N FLOAT Nn 108.121 '� TbOCK TC LJ i ,I BULLRAII 53.4 E: 1T43296, 613 / -y_(Q I N � ~� AMOR MARINE FLOAT �JY % [J `{•Jrl I� � [] 23 JCLEPA� l NEWTx9Q FINGER FLOA\TYP. r _ rr fL' c In LEM EXISTING Sx 3� F INGER n F. n IF] IT, n n n n ✓ \ Ll—.vLL—_ 'l� I� I I 1 AROEL I4]33045 i��j T ��I I I I I II I I �I,,,zr��h C�LI'�?�.�II hl I II Li I WI f l I I I I I I I I I I I � ��� �• n — l u Li Li u u u u l u o u u _ u Ll 1 FISH CLEANING STATION 0 FLOAT PLAN Wl scale: 1" = 40' CITY OF SEWA RD „ .f P. 0. Box 167 410 Adams Street Seward, Alaska 99664 July 6, 2020 Statewide Program Development Juneau Filed Office 6880 Glacier Highway Juneau, Alaska 99811-2506 Re: Municipal Harbor Facility Grant Fund Application To whom it may concern, Harbor Department 907.224.3135 907.224.7187 fix harhonnaster@cityofse ard.net I am pleased to submit the enclosed 2022 Harbor Facility Grant Fund Application for the City of Seward. We are requesting a $1,729,988 match to replace an existing float system in the Seward Harbor. This float system (G, K and L float) will replace existing infrastructure originally installed in the early 70's. G, K & L Float is approximately 50 years old and has reached the end of its useful life. These grant funds will be used to purchase and install components critical to the operation of the harbor including: pilings, floats, safety lighting and electrical service. The G, K & L float replacement project improves critical safety features and corrects hazards and deficiencies that currently exist. Please do not hesitate to contact me for further information, or with any questions you may have. Thank you for considering of our project for the state fiscal year 2022. We look forward to future correspondence regarding this project. Thank you again for your time today. Sincerely, Norman Regis Seward Harbormaster ►14 City of Seward Small Boat Harbor G, K, & L Dock Replacement Project Estimate 4 3 20 Base Bid items: Engineer's Estimate Description Quantity Unit Unit Price Extended Price 1 Mobilization/Demobilization 1 LS $ 350,000 $ 350,000 2 Construction Survey 1 LS $ 35,000 $ 35,000 3 Protected Species Observer 1 LS $ 30,000 $ 30,000 4 Demolition of Existing Float 1 LS $ 150,000 $ 150,000 5 F&I 10'X245' Main Floats at G Float 1 LS $ 274,400 $ 274,400 6 F&I 10'X460' Main Floats at K Float 1 LS $ 515,200 $ 515,200 7 F&I 10'X200' Main Floats at L Float 1 LS $ 220,000 $ 220,000 8 F&I 4'X32' Stall Floats 14 EA $ 14,720 $ 206,080 9 16" Dia x 70' long Galv Steel Plies Furnished 33 EA $ 7,500 $ 247,500 10 16" Dia Galv Steel Piles Driven 33 EA $ 2,800 $ 92,400 11 F&I Potable Water System 1 LS $ 225,000 $ 225,000 12 F&I Dry Standpipe Fire Suppression System 1 LS $ 200,000 $ 200,000 13 Leveling Flotation Furnished 30 EA $ 200 $ 6,000 14 Leveling Flotation Installed 30 EA $ 500 $ 15,000 15 F&I Fire Extinguisher and Cabinet 8 EA $ 1,200 $ 9,600 16 F&I Life Ring and Cabinet 8 EA $ 1,200 $ 9,600 17 F&I Retractable Ladders 14 EA $ 500 $ 7,000 18 F&I Heavy Duty Ladder 4 EA $ $ 1,400 1,200 $ 5,600 18 F&I Anodes 33 EA $ 39,600 19 Power and Lighting Systems 1 LS $ 130,000 $ 130,000 Subtotal Base Sid Items: Contingency 25% Subtotal Base Bid Items: Construction Administration @100% Total Construction Costs: $ $ $ $ 2,767,980 691,995 3,459,975 $345,998 3,806,000 Seward Harbor Municipal Harbor Facility Gra?NApplication Document in Support of Block #4 SECTION 00030 - PUBLIC NOTICE - INVITATION TO BID CITY OF SEWARD, ALASKA Public Notice — Invitation for Bids Seward North Harbor Launch Ramp Renovation Notice is hereby given that the City of Seward will receive bids for the construction of the Seward North Harbor Launch Ramp Renovation project. The project generally consists of the following Work: Replace the existing concrete boat launch and floats with a new concrete ramp and timber boarding floats supported by new galvanized steel pipe. The associated scope includes demolition and disposal of the existing ramp, cast -place -concrete slabs and abutments, pre -cast concrete panels, timber boarding floats, timber trestle, fendering, galvanized steel pipe pile, aluminum gangway, riprap revetment, excavation, embankment, storm drain, asphalt paving, bollards, public and private utility relocations, diving inspections, and other miscellaneous improvements. Elements of the scope require in -water work. The Engineer's Estimate for all work is between $X,XXX,XXX and $X,XXX,XXX . Sealed bids will be received at the City Clerk, P.O. Box 167, Seward, Alaska 99664, physically located at 410 Adam Street, Seward, Alaska until 3:00 p.m. prevailing time on September, XX, 2021 at which time the Bids will be publicly opened and read aloud in the City Council Chambers. Clearly mark on the outside of the envelope "Sealed bids for Seward North Harbor Launch Ramp Renovation, Opening Date September XX, 2021". Proposals may not be withdrawn for thirty days following date of opening. The City of Seward is not responsible for any undelivered mail. The Contract Documents will be available for download beginning August Pt for no charge from the City of Seward's website at www.cityofseward.us. Hard copies of the Contract Documents will be available at the Department of Public Works for a fee of $25.00. Receipt of the bid documents requires registration with PND Engineers, Inc at (907)56I-10I1 in order to be placed on the Plan Holders List and to ensure notification of Addendum. Prospective bidders are encouraged to attend a Pre -Bid Conference that will be held in Seward on [Date TBD] beginning at l :00 PM at the City Council Chambers that will include a tour of the project site and the City quarry. Prospective bidders may also participate in the Pre -Bid Conference by teleconference by dialing [Number TBD]. When prompted enter PIN: [Number TBD]. Questions regarding this project shall be directed to Paul Kendall, P.E. at PND Engineers, Inc at [Number TBD]. All questions must be received no later than 4:00 p.m. on [Date TBD]. The contract shall be let by the Seward City Council to the lowest qualified responsive and responsible bidder. Selection of the low bidder will be based on the base bid amount. Local preference will be excluded from the bid selection process. The selection of the qualified bidder will be at the sole discretion of the City of Seward, and the City reserves the right to reject any and all bids or not to award a contract if deemed in the best interest of the City. This solicitation does not commit the City of Seward to pay any costs incurred in the preparation of the bid or to award any contract. SEWARD NORTH HARBOR LAUNCH RAMP RENOVATION PUBLIC NOTICE - INVITATION TO BID Page 00030 -1 ® ® p `�, Seward NE Harbor Launch Prepared by: LI M Ramp Renovation Date, 5/18/21 E N G 1 N I- F R S, I N C. 75% Cost Estimate 1 Base Bid 1.1 Schedule A - Launch Ramp 1.1.1 1505.1 Mobilization 1.1.2 15$0.1 Protected Species Observer 1.1.3 2060.1 Demolition and Disposal 1.1A 2202.1 Excavation and Disposal 1.1.5 2202.2 Underlayer Rock 1.1.6 2202.3 Granular Fill 1.1.7 2204.1 Base Course, Grading A 1.1.8 2204.2 Base Course, Grading D-1 1.1.9 2205.1 Rip Rap, Class II 1.1.10 2702.1 Construction Surveying 1.1.11 2718.1 Signage 1.1.12 2720.1 Painted Traffic Markings 1.1.13 2801.1 AC Pavement, Type II, Class 8, 3" Thick 1.1.14 2892.1 Approach Dock 1.1.15 2893.1 Timber Boarding Float 1.1,16 2894.1 Gangway 1.1.17 2896.1 Furnish and install 12,75" dia. Steel Pipe Pile 1.1.18 2896.2 Remove and Reinstall 16" dia. Steel Pipe Pile 1.1.19 3301.14-inch Thick Concrete Infill 1.1.20 330S.1 Apron and Abutment 1.1.21 3305.2 Precast Concrete Ramp Planks 1.1.22 Contingency (15%) 1.2 Schedule B - Uplands Improvements 1.2.1 1505.1 Mobilization 1.2.2 2060.1 Demolition and Disposal 1.2.3 2201.1 Clearing and Grubbing 1.2.4 220T Excavation and Disposal 1.2.5 2204.2 Base Course, Grading D-1 1.2.6 2501A 12" CPEP Storm Drain Pipe 1.2.7 2501.2 24" CPEP Storm Drain Pipe 1.2.8 2501.3 Board Insulation 1.2,9 2502.1 Reconstruct Storm Drain Manhole, Type II 1.2.10 2502.2 Storm Drain Catch Basin 1.2.11 2503.1 Oil Water Separator 1.2.12 2601.1 Water System Improvements 1.2.13 2702.1 Construction Surveying 1.2.14 2714.1 Filter Cloth, Type B 1.2.15 2718.1 Signage 1.2.16 2720.1 Painted Traffic Markings 1.2.17 2801.1 AC Pavement, Type II, Class B, 3" Thick 1.2.18 2920.1 Seeding 1.2.19 Contingency (15%) 2 Additive Alternative 1- Driveway Paving 2.1 1505.1 Mobilization 2.2 2060.1 Demolition and Disposal 2.3 2201.1 Clearing and Grubbing 2.4 2801.1 AC Pavement, Type II, Class B, 3" Thick 2.5 2801.2 Pavement Milling 2.6 Continganry f'i1;0/-Y 1 1 LS 1 LS 1 LS 1360 CY 335 CY 165 CY 350 CY 145 CY 360 CY 1 LS 1 LS 1 LS 30 Ton 1 LS 1 LS 1 LS 16 EA 2 EA 1 LS 1 LS 1 LS 1 LS 1 LS 1 LS 1 LS 1 LS 3000 CY 1290 CY 160 LF 50 LF 27 EA 1 EA 1 EA 1 EA 1 LS 1 LS 90 SY 1 LS 1 LS ?770 Ton 1 LS 1 LS 1 LS 1 LS 1 LS 1 LS 300 Ton 600 SY 1 LS $14.00 $83m $43.00 $150.00 $15,000.00 $200.00 $99,990.00 $1,014,360.00 $157,200.00 $11,481.25 $7,140.00 $1,300.00 $117,670.00 $1,139,500,00, $14.00 $55.00 $150.00 $200.00 $50.00 $3,300.00 $3,000.00 20,000.00 $2,500.00 $8,500.00 $125,000.00 $113,000.00 $200.00 $5.00 $15,000.00 $20,000.00 $80,000.00 $27,805.00 $7,095.00 $10,500.00 $7,975.00 $54,000.00 $15,000.00 $5,000.00 $4,000.00 $6,000.00 $99,990.00 1,014,360.00 $157,200.00 $183,700.00 $14,280.00 $1, 300.00 $117,670.00 $480,000.00 $970,050.00 $50,000.00 $10,000.00 $5,000.00 $24,000.00 $10,000.00 $1,350.00 $3,300.00 $10,000.00 $450.00 $2,500.00 $8,500.00 $554,000.00 $5,000.00 $125,000.00, $5,000.00 $60,000.00 $13,000.00 1,14 AL SECTION A n OIL / WATER SEPARATOR C NTS STRUCTURE WITH STRUCTURE WITHOUT PENEIRAT10N6 PEN ETR "., r h ' d BACKFILL BACKFILL SLOPE OR SHORE PER SLOPE OR SHORE _� OSILA STANDARDS PER OSHA STANDARDS MIN 4s BEDDING BmDING n TYPICAL STRUCTURE EXCAVATION AND BACKFILL ALOV Nrs PWME FINISHED GRACE z I b IT I C RIPRAP LINED SWE caox Nrs UNPAVED AREA RAVED AREA 6' SURFACE COURSE 3' ASPHALT RAVEN'n EXISTING 2' AGGREGATE BASE COURSE, GRADE GRADING D 1 BACKFILL SEE - ZT v NOTE 2 DRAIN -- tlRAIN PIPE EXCAVATION SLOPE PER OSHA 12 r 1 REQUIREMENTS MARKER TAPE 's E V RIGID INSUTATION� r"� BEDDING, GUARD, 4'xR' SECTION 0.T COMPACT IN 12't IAA% LIF SEWER LINE CROSSING NDTFR. 1. ASPWILi THICKNESS SHALL MATCH SURROUNDING E%ISIING THICKNESS, Z REPLACE UNSUITABLE TRENCH EXCAVATION WITH SELECTED MATERIAL, I1'PE A. A TYPICAL STORM DRAIN PIPE TRENCH SECTIC c Ns 001— ENGINEFRS, INC51�T ti Llcenesr,«o ►%,1l CITY OF SEWARD hl.arFor L�elaart€i7ent r BCD: 1 410AdAnlsStr�t - ISari,erna.s: er <<cit cf e,,ar(l.net CONTRACT MODIFICATION (CHANGE ORDER) CONTRACT MODIFICATION NO. OWNER: City of Seward PROTECT: SMIC Harbor Improvements -Paving PROJECT M CONTRACTOR: GMG Genera!, Inc ADDRESS: 8000 Petersburg St. Anchorage, AK 99507 The Contract Documents are modified as follows upon execution of this Contract Modification: DESCRIPTION: A change to the contract is recommend for the Contractor to provide a replacemert pre -cast concrete reducing slain for the stormd; air, marlhole i:, tha travefift runway. The existing slaty was found to be in poor coy aition. ATTACHMENTS: RFI 06 replace Manhole Reducing Slab response signed 5/8/2019. CHANGE IN CONTRACT AMOUNT: C iANGE IN CONTPACi TIME {CALENDAR DAYS): gOriginal Arnount: — — 9 jCriginal Duration: $669,496.00 Previously Executed Modifications 0 to No. 0 Total: $0.o0 Contract Price prior to this Modification: $669,496.00 Amount of thhis Modification: (negative number for deduct( $3,575.00 REVISED Contract Amount: RECOMMENDED: f ngln�2Y�Ir,5p2CkCtf Date:a/8/201 ACCEPTED: ay: Ow Completion Date (daysldate 6i15/2019 Previously Executed Modifications.- 0 to No. 0 Completion Date (days/date): 5..5/2r,19 (negative number for deduct days) Contract Times prior to this Modification: Completion Date (days%date): 6/15/2019 REVISED Contract Time: Completion Bate (daysrdate; o ACCEPTED: By: Contractor Date: ON j Capital Improvement Projects Seward Electric Department June 28, 2021 Capital Improvement Projects • Three Priority Projects o Fort Raymond Substation perimeter fencing (1A) o Transmission infrastructure along Nash Road, including the Spring Creek Substation (1 B) o Transmission Infrastructure along Seward Highway, including the Lawing and Fort Raymond substations (2) Safety and service reliability are the driving factors behind the Electric Department's capital improvement projects. M1: Fort Raymond Fencing In its current condition, the fence presents a major safety hazard Only 8-feet tall; should be 12 feet minimum Fence is leaning significantly in some areas, making substation easily accessible for people or animals Substation and plant are in a residential area with schools and ball fields nearby Easy access to the substation also compromises service reliability Recommend replacing as soon as possible The cost estimate to replace the fencing is approximately $130, 000. E0 �T b� �,�� a.. ��= j+ � \ �,$`\ �+" ♦fit* ' fit Infrastructure — Nash Road • Much of the equipment (poles, lines, transformers) along the transmission corridor and in the Spring Creek Substation are beyond their service life • Recent oil testing of transformers indicate: Spring Creek Substation — Transmission transformer is in a deteriorating condition; should plan for a replacement now (up to $1 M) Testing also showed the load tap changer (LTC) for the transformer is failing; should be replaced or rebuilt asap (up to $100,000 to rebuild) • Since infrastructure must be replaced anyway, recommend upgrading from existing 69kV to 115kV Total estimate to replace and upgrade the entire infrastructure is $8 to $10 million. } 2k Infrastructure — Seward Highway • Same story as Nash Road: Aging equipment along the transmission corridor and in the Lawing and Fort Raymond substations • Recent oil testing of transformers indicate: Lawing Substation - Transmission transformer is in a deteriorating condition; should plan for a replacement now Testing on the Lawing distribution transformer indicates imminent failure; should be replaced immediately Fort Raymond Substation —All four transmission transformers are in a deteriorating condition with one much worse than the others; should plan for a replacement now • Recommend upgrading to 115kV; must be replaced anyway Total estimate to replace and upgrade the infrastructure is approximately $12 million. Questions mull June 28, 2021 Work Session for CIP Projects. Public Works Re -Location Information From Public Works Director, Douz Schoessler 434 6th Ave Public Works Facility The following inforinalion is provided regarding the relocation of the Public Works from downtown on 6th Ave to some other location in or around Seward. We have been dealing with this issue for many years and have an extensive file on the project. The desire is to relocate the facility. The existing property is considered prime property for development and could be sold to help pay for the new facility. The current Public Works department and shoe are located on 2.5 acres and this location includes 3 buildings and 3 convex units for storage. Outside electric bull rails with plugins for heavy equipment are along the building and the east side fence. Supersack shipments of salt and calcium chloride are stored outside in the weather along with tires, large equipment parts, and all vehicles and equipment. -The primary building is a 5000-sf. shop with tight equipment work areas, parts and tool storage, and crowded office space. -Secondary buildings include a 1440-sf 3-sided sand shed, and a 900-sf heated workshop for water/wastewater equipment and parts. -One of the 40 ft long convex containers has electricity wired in for lights, and shelving throughout. -We also have limited offsite storage in other locations. -We would also plan to add a bay on the new building for the Fire Dept's Ladder truck to be parked back on this side of the bay. This would benefit all concerned. %w :7 Environmental: The City has conducted prior soil analysis at the 6"' Ave location which was last updated in 2004 by R&M Consultants. This demonstrated no apparent environmental reasons for not selling the property for development. We have reached out to R&M as our "on call engineering fine" to conduct a new updated level I and level 2 site assessment. We will bring that cost forward on a Resolution to Council at the first meeting in July. Equipment availability: Although we have an equipment evacuation plan in the event of and earthquake and potential tsunami at our present location, it should be noted that our people are only at work approximately 23% of the hours available in a year's time and the odds of a disaster happening at an hour when no one is available to immediately move the equipment are very high. Therefore, we need to protect the shop and the equipment as much as possible by locating it away from potential tsunami and or floodway damage. Most of this equipment is essential to recovery after an event and needs to be in an area out of those zones. We have approximately $3M of rolling equipment parked at Public Works at this time. Proiected Cost: Before the Covid-19 increases, was estimated at $5.5M for CIP worksheets. Depending on when and where we relocate, that cost could be substantially higher. We were able to visit the Kenai and Soldotna Public Works facilities on 6/23/21. We met with their staff about recent PW facility builds, and to ask many questions while doing a walk through at each location. - A strong suggestion was to do pre -design "architectural programming". Architectural Pre -Design Services will often include programming, although the client sets the program the architect can assist and advise. The program is a Iist of all the spaces to go into the building and the general size or occupancy. This service usually takes just 3-4 weeks (per the Kenai group). It would most likely need an RFP to solicit design services. Possible Funding Sources: - Selling City owned properties including the 32 lots at the current Public Works Location - Possible grants through federal infrastructure funding - Use of some General Fund Reserves - Put the project out for GO bonds and repay with property sales revenue Note: Sample bond resolutions from the recent street paving bonds are available for reference and scheduling if decided to proceed in that direction. QA A prospective optimistic schedule is as follows: - Site selected to proceed to design phase. - Funding decision options decided through City Council and public. - RFP for Design and engineering by September 2021 resulting in successful bidder completing design by February 15, 2022 - RFP for Construction out for bidders by February 28, 2022, and due by April 11, 2022. - Construction Award April 25, 2022 City Council - Break ground asap after award and finish building by December 1, 2022 *Building material availability at this time is very limited and will most likely delay the Construction schedule. * New Facility Needs • It is estimated that a Public Works Facility building of 10,000-12,000 sf will adequately support the growing public works functions and the mechanical equipment to support them. • Sand storage adequate to hold 1000 - 1200 CY of winter sand will be required. Open storage of sand requires a 7-8% salt mixture versus a 3-4% mix in covered area. The difference leaches out in outside storage. A domed sand storage structure is the preferred solution. * Covered vehicle storage for dump trucks, loaders and other equipment would include an open faced shed building. • Outside materials laydown. It may be possible for seldom used items such as pipe to be located on the less valuable property in the back of SMIC • Security such as fencing, lighting and intrusion and fire alarms must be considered. • Additional warehouse parking section for the Fire Department's ladder truck to be stored on this side of the bay. Proposed Site Selection Criteria; In order to select a suitable new site, we must establish facility criteria and consider the needs to support future city growth. - Access should be via multiple points by way of arterial street/ or highway so as not to direct equipment through residential areas or school zones - Location should be: a) as central as possible to the population center & work activity in order to reduce response time, travel distance and operational costs. b) in an area with minimal potential for isolation ftom community during M disasters and least possible direct exposure to disasters. There is generally no time to reposition supplies and equipment out of hann's way, and city equipment will be needed for emergency service response during disasters. c) the more remote the site the greater the need for security. Cost should be kept to a minimum. Using already owned City property would be preferable to removal of private property from the tax rolls through purchase or lease incurring long term lease payments. A fair market value trade would be an acceptable alternative. Utilities including water, sewer and power are a necessity for fire protection, security and employee needs. Attarhyn.pntc! - 2004 Seward Public Works preliminary plans and sketches. 3 pages - City of Soldotna warm storage and admin pies and some design. 5 pages - 1998 Site Location Evaluation spreadsheet. 1 page - Seward Public Works larger pictures at 6'h Ave. 4 pages W SEWARD CITY SHOP & OFFICES GPaFscf-I EXTERIOR DESIGN SNOT JUNE 2a 2004 CONCEPT it 5-09AGE MACHINE SHO? WElDiNG O`PICE UIRT BREAK RMi]k16 - \��is�` & Jl PARTS RM a� S'zt6 C1SHOP CSHOP L"BY METER RM C 7 Sw? �'EV BAY I BAY BAY BAY / �w \ ELECTRICAL LUNCH ElECialCAL M anurw r'/ ROOM O BAY BAY k ,—_I " X z err iocxrs 72i20 x m+s vim FOk LURMBCN -launaR La,ry STORAGE --- GENERAL STORAGE / 1044 OQ .. _� -^ MECHANIC d SffO? e _ 5 1405 ELECTRICAL DEPARTMENY ___ ex�r \ - -.,- .,,,-,,,,-� i,a :J�J!5is1bb4e` • 2 SEWARD CITY SHOP & ENGINEERING 2nd FLOOR DESIGN S'7UDY MAY 14, 2004 CONCEPT #I VACHINE SHO BE,-CW --" 5' �iALLWAY ls, FLOOR BATHROGMs !, SHOWERS ;sf FLOOR GENERATOR BOILER BELOW c,mu 641 ctusTRuc rioN, WINDOW WALL & METAL PANE-S -' I O-FICE OFFICE OF~ICE O�F��E ;17 OFFICE Qx1 'Ux,O 30x10 -ICx:v 10xiU 716 COPY �iJiP'r1E"JT O�F!c= 13x1� r� -- L-cbB - IfVEETING R00;v ' 2x23 F � 3 I •. I OFFICE _OFFI� vO7EOF' E vFFICE OF=:CE pax .-' lox10 1loxIc a: l WINDOW WALL & METAL PANELS GPARCH XAU A R C H J T F C T S 0 2 4 6 8 iC , ai 7 -' a,- i EQu:P --' r JL_ E 5TOR. EQUIPMENT lax10 I ; 2-1 r STAIR SEPARA-ON REQUIR=WENT I A+ 0- b wr 'tic tM14ts➢,v y 1(' w -90A E ' t �YGle, WeW]M' �R •6 'fAYlSY� y 7 2 P�!' *; _ -•�!! GCG6 CAC Su?f11Md SilO�.:l�iYa Sl]7llX]LY Sb33NCN7 _ �T T �,r !�r� L��i�/�r�/� Si�1DA� Y �G�, A ViV1lL lSll =` spa; QiV2iOd�I©�iIT a ggj (,yi Jul ..pj!njja2ujojS m zujj i[d El!E TEL Ij-1I lltmJ= g 10111— J.,��,1 I I—,1-1 E I - 1 L=lwL 1 _3=J1 Lii III 1_ l-Il=[ I = -1111 _:[II-~- 1P _IH=E1 Il it =f41_I C {=1E=E1 1' HEI I =1I �= J !' III-11 11-LIE ,i t' E- I I �T_71 if 11 1i Q---1 - - � - -l11 I !1C =P _� iii;1 - I—i_— I L-=-HQ iIF 1- II i1- _ ! I IE=iiE-il Y; IF -.1 W -10=1i - I I=JEi=,I .11E='li- -111=i F� �- I ......,'' I- I I i_ I f =111_ II Ifk=1 11- II_il II��I-1 ;_FF --11 Z f-1�=11E. -:ICI Wir 'NI21 �"�} f•T]`wri»Si•+min%++W7wKYu�N.do..uQ;d.W.�V•C>S'P601Gmonr,EDrtY w t—wra+ 4 ---------------- 3m 2 CITY SHOP ALTERNATE SITE LOCATION EVALUATION Map # > 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18119120 21 b L y G O w n U iz O xi 1 �eL �` p •1%¢� Y l >. as " L ,G CC QI 'O F+ �-1 L L wwi C,j 6i O 5 eu U C U u TJ C a U O K SC w w w d w O LTr iZ u p a w a w a a� w w o w � t7 40�-4 C V w CurrentZoning »> IACIRMIINSI I IHCI I 1INS1 I INS R1 INS INS I I AC R Rl INS I I n/a Site Available yes no + + + I + + + + < + + " + + + + + + + + + Ownership - city, other ov't, private city private/other + + + - + + - + + - - + - + + Property Size (acres) adequate small + - - + + - - : + + + + + + + + + + - Zonin / LUP match need change + - + + + + + + + + + - - + - + + Access via multiple routes yes no + - + - - - - - + + + + - - - - - - Access via non-residential street no yes - - - + + + + + + + Distance to most of work area central remote + - + + Susceptible to direct disaster no yes - - - - + + > + - + + - - - + + Susceptible to disaster isolation no yes - - + - - + + + + + + + + Isolated from security no yes + - + + - - + - - + - - - - - - Cost of Property development lower higher + + + + - - - + + - + - - + Utilities in place extend + + + + + + - - - - - - - + - Community aesthetics maintained reduced - - + + - - - - + - + + + - Wetlands permitting no yes + + + - + + - + - + - + + Lightin im act on residential neighbors no yes + - + + + + + + + + + + + Within 100 yr flood or tsunami zone no yes + - + - + + + Intersection congestion increased no yes - - - - + - + - + - - + + + Near School or Hospital no yes + - + + + - - + + + + + + + + + No longer available . 01/02/98 1 SHOPALT.WK4 303 1,.. mil.- -.'1P a ar PP.. r ��r_..• _.-."� n ! � . JL .,�. �•• r``P awl e•-.-' �__P rr rrrAB m `� $ C r-� II OF. ir 7�a' 401 rri� r °Z ? e mr *�L--t�; P.1 °- rI rr---`I r--17 M � r � �- r rr s r..�e o- r --- t_ � - f„-,,,•,' Pr�°� r1 fy�l r.. r'"°ram �".el a. ®®,.I A� A -r 1.� � ; � A r ar®► r--^'r " A P I r � � ""•A R... "' I r_r`'-! a-,-9 A r'®®a r'o,� $ 'l�'^11 p.®-P ` �° 6 'A s� w a► '�" r �-``i r—.y r—"-"1 rff---I--}" l I , P F� F—a a - ♦ r u ° r e I T� rya r + a A"'�L:'4.P—F J- I A®°1,®.'. of , lr—l9 q r- a .v P r r r r--: a --� .:m �-' r " `l r i r� r-- a f r—� r-- r 1��i�c1 6 IF ram a r 1 r—R _ r--n F---1 r—n rI r�9 Imp q-•�..a r.�".n'# r. 1 e•-4 1 r -.6r c 9 r---• �, r---° r-�ti � a--"'1 eat rr'-'ti ° � d ! .•w �� r.—° d f� A�q-",.• .. 1�� T'"".v'i "'! •s `B 1"� 0'� y • �♦ r �lw:'Ri A�yr.•."7 d�-r s-'"� t �a r, 6 l-1°`! A r�� ..x�l , �� I a r• e r �rl r ° �"�„` r e F----fir p- m or e � ,« � e 1 A °mil In Rr 9 A 7! * s ram--.5.I � F . p •- 's; I a „ � ; � � + e +• � }I��'�-1,! a y: 017 434 6" Ave. Public Works Location 2021 0A la--------- Mi4D'_I5�]nI�S�T F a +iW W see_------a-.....n 6 a i 1 a - f t o I � 1 1 a 1 fl ! n 1 e 1 n 1 0 � � e �Rsvn► sr 0 3 1 E 1 1 f _ 1 1 1 1 t 1 f o f I 1 5 F 1 e 1 n 0 u n 9 r - t B f 1 1 f e a a 1 F t 1 1 e ftop i E. z� t a 1 e � fame- PEtR: Additional RV Utility Sites ► Cost estimate: $200,000-$300,000 ► Rationale: ► Electric RV hookup is our highest demand offering. ► Vehicle electrification is increasing rapidly, further increasing demand. am P&R; Campfire Rings & Picnic la bles 00. Cost estimate: $60,000-$70,000 Ra t i o n a l e, These items are considered basic amenities at most campgrounds and a often requested. Providing proper fire containment has safety and environmental benefit, 2M P&R; Community Recreation Center Cost estimate, $3-$5 million Rationale, One of the most important factors cited in quality of life surveys is access to year-round recreation. Provide a dedicated programming space for community recreation activities and offer unique recreation facilities, e.g., climbing wall. �fA Department Head CIP Survey Results Va arie Alan Norm Dustin Tyler I Jackie General Fund Rob Clinton Ooug Sam Mobile and P & R Lowell Creek Lowell Creek Public Safety Lowell Creek 1 Animal shelter Animal shelter Portable Radios Warehouse/Office Animal5helter Animal Shelter Tunnel for ALMR �Ret Center Tunnel Building Tunnel Mobile and Mobile and 2 Lowell Creek Relotation of PW Relocation of PW Animal shelter Community Rep Publicsafety Portable Radios Portable Radios Relocation of PW Relocation of PW Tunnel Center Building ALMR for ALMR Campgrounds: Wellington Mobile and Wellington Fire Hydrant Fire Hydrant Additional utility 3 Pavilion Portable Radios Animal Shelter Relocation of PW Pavilion Relocation of PW Upgrades PH 1 Upgrades PH J. Animal Shelter sites on the ALMR waterfront K�` towel Creek Ti. 3D% Mobile and Protable Radic ALMR 10% Department Head Top General Fund CIP Project Public Safety Building 10% Parks & Rec. house/office/rec center 10% 41V, Seward City Council Work Session Packet Topic: Discuss Capital Improvement Plan (CIP) Prioritization June 28, 2021 City Council Chambers Beginning at 5: 00 p.m. 010 CITY COUNCIL WORK SESSION Monday, June 28, 2021 5:00 p.m. TOPIC: Discuss Capital Improvement Plan (CIP) Prioritization PRESENTATIONS Department Page Fire 2 Police 3 Harbor & SMIC • Anode Replacement 13 • G, K & L Floats 17 • NE Launch Ramp 21 • SMIC 26 Electric 29 Public Works 38 Information Technology Parks & Recreation 55 Community Development 314 1 New Fire Station The current fire station was built in 1963 and very few changes or upgrades have been done since. Designed for just a limited staff and smaller equipment, the building has been long past it's service life. Staff have to share office space leaving no privacy and difficultly in focusing with so many projects each staff member is working on. Our apparatus bay is cramped tight with little walking room between trucks and this makes for a dangerous situation when backing into the bay and difficulty in checking our equipment. The station will not accommodate the Ladder truck due to its height and length restrictions and therefore we do not get credit for having an aerial for ISO purposes. Every time we pull out of the bay we drag and tear up the sidewalk. Our ventilation system is inadequate and dangerous carcinogen fumes from our bunker gear can freely float into guest and office space. Plumbing issues continue to plague the building with leaks, valves frozen, main water line valve frozen open and rusty pipes providing drinking water. Asbestos has not been remediated, only covered up. Our utilities continue to skyrocket with little to no insulation and aging infrastructure. We are requesting $250,000 for the need's assessment and shovel ready design so that we may apply for grants or seek loans for the construction of a new fire station. We are also willing to look at combining with other departments such as police and or community development if that would assist the city in other long-term projects. We have had state and federal senator offices inquiry about this project, and having a shovel ready design could put us in a position to move forward if state or federal dollars become available. Hydrant upgrades Current national standard for the installation and spacing of fire hydrants is one every 500 feet, any further can greatly delay fire department operations. While much of Seward proper is well covered there are still areas that are much greater than the standard. At SMIC, there are vast areas that far exceed 500 feet. On the last boat fire at SMIC we laid over 900 feet of 5" supply hose. With limited personnel this becomes a huge problem for us. Each section of hose weighs 110lbs empty. So not only do we have to lay this hose, we have to pick it up after the fire, after the firefighters are already tired. The faster we can lay hose, the faster we can put out the fires. Much of SMIC is thousands of feet away from the nearest hydrant. We recommend that with more development at SMIC that the infrastructure include fire hydrants and install additional fire hydrants to unserved areas as soon as possible. OR POLICE CAPITAL IMPROVEMENT PROJECT Building the Future of Seward's Public Safety CURRENT NEEDS • Currently, the only major project directly affecting the Seward Police Department is the need for a proper facility to conduct police, corrections and dispatch operations. • One other project facing several city departments and related to the Police Department is an issue with ALMR Radios and the purchase of radios which can accept the current configuration. PUBLIC SAFETY BUILDING • The much larger scale need for the police department is a new facility. The current department workspace is too small with inadequate space for personnel, necessary functions, and privacy for our customers. It does not meet the expectations of a modern police facility. The building itself is a hazard with water leaks, asbestos walls, exposed pipes wrapped in asbestos, and an ancient fire detection system in the jail which may or may not work. The building is beyond inefficient and costs the taxpayers a boatload of money every year in heating costs and repairs. A water main coming into the jail from under Sth Avenue is leaking and threatening to break. If it does, it will flood the jail and the entire basement of city hall. Should this happen, besides the risk of loss of life, the city's records, evidence, armory, heating and electric systems for city hall will be impacted and likely destroyed before it can be contained and controlled. WHAT DOES A POLICE DEPARTMENT NEED? ➢ Community room / Training Room / EOC ➢ Armory and ammo storage ➢ Lobby/Reception (ADA accessible) Rooms to take reports near the lobby Public Restrooms ➢ Interview Rooms Evidence Processing Room/Lockers Evidence Storage ➢ Computer Crime Lab ➢ Child Abuse Interview Room ➢ Controlled Suspect Restroom ➢ Dispatch with adequate space ➢ Evidence Packaging area ➢ Safety Precaution sinks, eyewash, etc. CONTINUED ➢ Executive Offices ➢ Staff Offices Y Secured File Storage Y Meeting Room / Recruiting Interview and Testing space ➢ Fitness center Y Parking and Impound Y Sally Port The items listed are just a snapshot, and not a complete list of the many things the Police Department needs to function to its best capability. The privacy issue should not be overlooked. Currently, people must stand in a public hallway and air their business at the dispatch window or be brought into the entrance area where people are constantly coming and going. The situation does not lend to respectful, quality service which is something we are trying to provide to everyone. Imagine trying to report a sexual assault in this manner! Our citizens deserve better than this. THINGS TO CONSIDER We should give thought to ways we can make this building better serve the city. For example, we can take a Multi -Agency / Justice Complex approach and incorporate space for other law enforcement agencies such as the Alaska State Troopers. The Alaska Court System could also be relocated to the facility. Even city council could move to this building. Additionally, with a well thought out community room we can hold trainings, meetings, or do other functions to serve the community. Without a doubt, the Fire Department and the Police Department should share the facility as this will take care of the needs of both and place the hub of the city's public safety in one location. Not to mention, building one facility for both departments will save the city a considerable amount of money. DISASTERS AND EMERGENCIES It is very important when a site for this building is selected it is done with emergency operations in mind. City hall sits at or in the tsunami inundation zone depending on which map you're seeing. It sits in the path of the Lowell Canyon creek's natural flow. No matter what, the hub of public safety shouldn't be in the direct path of two types of natural disasters, particularly when city hall is the location of our E.O.C. and we have no back-up. Seward needs a public safety building which can weather a natural disaster and continue to function, and it needs to be poised to stay functional and capable of response when a natural disaster strikes. We've dodged a few bullets in recent years with major earthquakes and tsunami warnings. It is paramount to take action to protect the citizens of the community, the employees of the city, and the city's assets as soon as possible. ALMR RADIOS To wrap this up, the last item on the list is our ALMR radios needing upgraded. The ALMR radio system was given an upgrade which will only work on today's modern radios. Most of the radios used in the Police Department vehicles have been reused over the years from vehicle to vehicle. Also, some of the department's handheld radios are quite old. While making these radios last as long as possible saves money, it leaves us in a predicament when something like this current upgrade comes along and all your old equipment is suddenly defunct. Working radios in public safety are of supreme importance. We are already taking steps to correct this situation and council can expect to see our resolution to the problem before them shortly. O L LA > ro O —r5 O_ N O 41 � � _rt O v 'Ott INV , 3 w , N1 low A 9 OF O .Z "o 400. CZ PILING E-Float 71 F-Float 36 H-Float 42 J-Float 19 G-Float 18 Total 169 Anodes Engineers estimate $1,200 per anode Welded on $202,000.00 [c10 MY OF SEWARD P. 0. Box 167 410 Aduns Street Seward, Alaska 99664 Harbor Departnacm 907.224.3138 907.224.7187 fax har}aat��raste�@cityol sere rd.net Seward Harbor G, K and L Dock Replacement Project Summary The City of Seward Boat Harbor is poised to replace the remaining old docks in the northwesterly corner of the Boat Harbor. The attached grant applications based on the 2019 and 2020 engineering report (Block 4) as modified by experience and funding limitations. If successful the state funds for construction would be available in mid-2022. On May 6, 2020 the Port and Commerce Advisory Board PACAB approved a resolution 2020-002 recommending to Seward City Council to authorize the City Manager apply for the Harbor Facility Grant for SY 2022.On May 26, 2020 the Seward City Council in resolution 2020-036 authorizing the City Manager to apply for the Harbor Facility Grant and committed the local matching funds. Per the attached engineers drawing (Block 4), the scope of the project is proposed as follows: 1) Replace G-Dock in place. 2) Replace K-Dock in place. 3) Replace L-Dock in Place. 4) Drive new piling G, K and L Dock. The City of Seward working with R&M are currently at 95% design and are waiting on permitting to be 100% shovel ready. Project Need Statement This project will replace Docks that are over 50 years old. This project has been included in the City's Capital Improvement Plan since 2009. The 2019 — 2020 engineering report (Block 4) recommends that G, K and L Dock be replaced. G, K and L dock are the last remaining docks from when the State transferred the Seward harbor to the City of Seward. These docks are unsafe. The floating docks are slowly sinking — freeboard distance from the water to the deck, averages about half of a new dock (approximately 22 inches). The current docks do not float level — they are twisted and rock back and forth while walking down the main dock, the corner of G and L dock sinks and leans outboard as you walk around the corner. The deck height above the water varies from 12 to 12.5 inches. With the exception of L-Dock G and K dock have no bull rails installed which is a safety hazard. The wooden pilings are beyond their service life of 40 years, many are worn flat and the creosote has been scraped free allow marine borers to enter the wood. In 2011 a wind storm caused a broken piling. This project will replace the old creosote treated piling with stronger galvanized steel pilings. There are no light poles on G-dock and only 2 light poles on K-Dock and 2 light poles on L-Dock, this reduced lighting is a safety issue. Replacing the old docks is the best way to solve these safety and environmental issues and improve the economic viability of the Seward Boat Harbor. Seward Harbor Municipal. Harbor Facility Grant Application Document in Support of Block 41 n,p,,,ld ,VS qIN s..S OuJ II-J uV —S J LI]1 l t—i ...r A9 and l4;£ OZOZIZ%L P-4;-ld 3m C rI'Y OF SEWARD P. 0. Box 167 410 Adams Street Seward, Alaska 99664 July 6, 2020 Statewide Program Development Juneau Filed Office 6880 Glacier Highway Juneau, Alaska 99811-2506 Re: Municipal Harbor Facility Grant Fund Application To whom it may concern, Harbor Depamnent 907.224.3138 907.224.7187 fax harhorttias to r@cityofsc,a°ard. ne C I am pleased to submit the enclosed 2022 Harbor Facility Grant Fund Application for the City of Seward. We are requesting a $1,729,988 match to replace an existing float system in the Seward Harbor. This float system (G, K and L float) will replace existing infrastructure originally installed in the early 70's. G, K & L Float is approximately 50 years old and has reached the end of its useful life. These grant funds will be used to purchase and install components critical to the operation of the harbor including: pilings, floats, safety lighting and electrical service. The G, K & L float replacement project improves critical safety features and corrects hazards and deficiencies that currently exist. Please do not hesitate to contact me for further information, or with any questions you may have. Thank you for considering of our project for the state fiscal year 2022. We look forward to future correspondence regarding this project. Thank you again for your time today. Sincerely, Norman Regis Seward Harbormaster do=' City of Seward Small Boat Harbor G, K, & L Dock Replacement Project Estimate 4 3 20 Base Bid Items: Engineer's Estimate Description Quantity Unit Unit Price Extended Price 1 Mobilization/Demobilization 1 LS $ 350,000 $ 350,000 2 Construction Survey 1 LS 1 $ 35,000 $ 35,000 3 Protected Species Observer 1 LS $ 30,000 $ 30,000 4 Demolition of Existing Float 1 LS $ 150,000 $ 150,000 5 F&I 10'X245' Main Floats at G Float 1 LS $ 274,400 $ 274,400 6 F&I 10'X460' Main Floats at K Float 1 LS $ 515,200 $ 515,200 7 F&I 10'X200' Main Floats at L Float 1 LS $ 220,000 $ 220,000 8 F&I 4'X32' Stall Floats 14 EA $ 14,720 $ 206,080 9 16" Dia x 70' long Galv Steel Piles Furnished 33 EA $ 7,500 $ 247,500 10 16" Dia Galy Steel Piles Driven 33 EA $ 2,800 $ 92,400 11 F&I Potable Water System 1 LS $ 225,000 $ 225,000 12 F&I Dry Standpipe Fire Suppression System 1 LS $ 200,000 $ 200,000 13 Leveling Flotation Furnished 30 EA $ 200 $ 6,000 14 Leveling Flotation Installed 30 EA $ 500 $ 15,000 15 F&I Fire Extinguisher and Cabinet 8 EA $ 1,200 $ 9,600 16 F&I Life Ring and Cabinet 8 EA $ 1,200 $ 9,600 17 F&I Retractable Ladders 14 EA $ 500 $ 7,000 18 F&I Heavy Duty Ladder 4 EA $ $ 1,400 1,200 $ 5,600 18 F&I Anodes 33 EA $ 39,600 19 Power and Lighting Systems 1 LS $ 130,000 $ 130,000 Subtotal Base Bid Items: Contingency 25% Subtotal Base Bid Items: Construction Administration @10% Total Construction Costs: $ $ $ $ 2,767,980 691,995 3,45%975 $345,998 3,806,000 Seward Harbor Municipal Harbor Facility Gra*BApplication Document in Support of Block #4 SECTION 00030 - PUBLIC NOTICE - INVITATION TO BID CITY OF SEWARD, ALASKA Public Notice — Invitation for Bids Seward North Harbor Launch Ramp Renovation Notice is hereby given that the City of Seward will receive bids for the construction of the Seward North Harbor Launch Ramp Renovation project. The project generally consists of the following Work: Replace the existing concrete boat launch and floats with a new concrete ramp and timber boarding floats supported by new galvanized steel pipe. The associated scope includes demolition and disposal of the existing ramp, cast -place -concrete slabs and abutments, pre -cast concrete panels, timber boarding floats, timber trestle, fendering, galvanized steel pipe pile, aluminum gangway, riprap revetment, excavation, embankment, storm drain, asphalt paving, bollards, public and private utility relocations, diving inspections, and other miscellaneous improvements. Elements of the scope require in -water work. The Engineer's Estimate for all work is between $X,XXX,XXX and $X,XXX,XXX . Sealed bids will be received at the City Clerk, F.O. Box 167, Seward, Alaska 99664, physically located at 410 Adam Street, Seward, Alaska until 3:00 p.m. prevailing time on September, XX, 2021 at which time the Bids will be publicly opened and read aloud in the City Council Chambers. Clearly mark on the outside of the envelope "Sealed bids for Seward North Harbor Launch Ramp Renovation, Opening Date September XX, 2021". Proposals may not be withdrawn for thirty days following date of opening. The City of Seward is not responsible for any undelivered mail. The Contract Documents will be available for download beginning August I" for no charge from the City of Seward's website at www.cityofseward.us. Hard copies of the Contract Documents will be available at the Department of Public Works for a fee of $25.00. Receipt of the bid documents requires registration with PND Engineers, Inc at (907)561-1011 in order to be placed on the Plan Holders List and to ensure notification of Addendum. Prospective bidders are encouraged to attend a Pre -Bid Conference that will be held in Seward on [Date TBD] beginning at 1:00 PM at the City Council Chambers that will include a tour of the project site and the City quarry. Prospective bidders may also participate in the Pre -Bid Conference by teleconference by dialing [Number TBD]. When prompted enter PIN: [Number TBD]. Questions regarding this project shall be directed to Paul Kendall, P.E. at PND Engineers, Inc at [Number TBD]. All questions must be received no later than 4:00 p.m. on [Date TBD]. The contract shall be let by the Seward City Council to the lowest qualified responsive and responsible bidder. Selection of the low bidder will be based on the base bid amount. Local preference will be excluded from the bid selection process. The selection of the qualified bidder will be at the sole discretion of the City of Seward, and the City reserves the right to reject any and all bids or not to award a contract if deemed in the best interest of the City. This solicitation does not commit the City of Seward to pay any costs incurred in the preparation of the bid or to award any contract. SEWARD NORTH HARBOR LAUNCH RAMP RENOVATION PUBLIC NOTICE - INVITATION TO BID Page 00030 -1 ® J Seward NE Harbor Launch Prepared by: LI 10 Ij Ramp Renovation Date: 5/18/21 E N C'� I N E I R S, I N C. 75% Cost Estimate 1 Base Bid 1 LS $4,633,625.00 $4,633,625.00 1.1 Schedule A - Launch Ramp 1 L5 $3,663,575.00 $3,663,575.00 1.1.1 1505.1 Mobilization 1 LS $200,000.00 $200,000.00 1.1.2 15$0.1 Protected Species Observer 1 LS $20,000.00 $20,000.00 1.1.3 2060.1 Demolition and Disposal 1 LS $80,000.00 $80,000.00 1.1.4 2202.1 Excavation and Disposal 1300 CY $14.00 $18,200.00 1.1.5 2202.2 Underlayer Rock 335 CY $83.00 $27,805.00 1.1.6 22073 Granular Fill 165 CY $43.00 $7,095.00 1.1.7 2204.1 Base Course, Grading A 350 CY $30.00 $10,500.00 1.1.8 2204.2 Base Course, Grading D-1 145 CY $55.00 $7,975.00 1.1.9 2205.1 Rip Rap, Class II 360 CY $150.00 $54,000.00 1.1.10 2702.1 Construction Surveying 1 L5 $15,000.00 $15,000.00 1.1.11 2718.1 Signage 1 L5 $5,000.00 1.1.12 2720.1 Painted Traffic Markings 1 LS $4,000.00 ,000.00 1.1.13 2801.1 AC Pavement, Type II, Class B, 3" Thick 30 Tan $200.00,000.00 li$4,000.00 1.1.14 2892.1 Approach Dock 1 LS $99,990.00 1.1.15 2893.1 Timber Boarding Float 1 LS $1,014,360.00 ,990.00 $1,014,360.00 1.1.16 2894.1 Gangway 1 LS $157,200.00 $157,200.00 1.1.17 2896.1 Furnish and Install 12.75" dia. Steel Pipe Pile 16 EA $11,481.25 $183,700.00 1.1.i8 28 66.2 Remove and Reinstall 16" dia. Steel Pipe Pile 2 EA $7,140.00 $14,280.00 1.1.19 3301.14-inch Thick Concrete Infill 1 LS $1,300.00 $1,300.00 1.1.20 3305,1 Apron and Abutment 1 LS $137,670.00 $117,670.00 1.1.21 3305.2 Precast Concrete Ramp Planks 1 LS $1,139,500.00 $1,139,500.00 1.1.22 Contingency (15%) 1 LS $480,000.00 $480,000.00 1.2 Schedule B - Uplands Improvements 1 LS $970,050.00 $970,050.00 1.2.1 1505.1 Mobilization 1 LS $50,000.00 $50,000.00 1.2.2 2060.1 Demolition and Disposal 1 L5 $10,000.00 $10,000.00 1.2.3 2201.1 Clearing and Grubbing --ij LS $5,000.00 $5,000.00 1.2.4 2202.1 Excavation and Disposal 3000 CY $14.00 $42,000.00 1.2.5 2204.2 Base Course, Grading D-1 "CPEP 1290 CY $55.00 $70,950.00 1.2.6 2501.1 E Storm Drain Pipe 160 LF $150.00 $24,000.00 1.2.7 2501.2 24" CPEP Storm Drain Pipe SO LF $200.00 $10,000.00 1.2.8 2501.3 Board Insulation 27 EA $50.00 $1,350.00 1.2.9 2502.1 Reconstruct Storm Drain Manhole, Type II EA $3,300.00 $3,300.00 1.2,10 2502.2 Storm Drain Catch Basin EA $3,000.00 $3,000.00 1.2.11 2503.1 Oil Water Separator EA M-E- $20,000.00 $20,000.00 1.2.12 26U Water System Improvements L5 $25,000.00 $25,000.00 1.2.13 2702.1 Construction Surveying $10,000.00 $10,000.00 1.2,14 2714.1 Filter Cloth, Type B 90 SY $5.00 $450.00 1.2.15 2718.1 Signage 1 LS $2,500.00 $2,500.00 1.2.16 2720.1 Painted Traffic Markings 1 LS $8,500.00 $8,500.00 1.2.17 2801.1 AC Pavement, Type ll, Class B, 3" Thick 2770 Ton $200.00 $554,000.00 1.2.18 2920.1 Seeding 1 LS $5,000.00 $5,000.00 1.2.19 Contingency(15%) 1 LS $125,000.00 $125,000.00 2 Additive Alternative i - Driveway Paving 1 115 $15,000.00 $113,000.00 2.1 1505.1 Mobilization 1 LS $15,000.00 $15,000.00 2.2 2060.1 Demolition and Disposal 1 LS $5,000.00 $5,000.00 2.3 2201.1 Clearing and Grubbing 1 LS $5,000.00 $5,000.00 2.4 2801.1 AC Pavement, Type II, Class B, 3" Thick 300 Ton $200.001 $60,000.00 2.5 2801.2 Pavement Milling 2600 SY $5.00 $13,000.00 2.6 Contingency [15%) 1 L5 515.oaann Einnn nn ---------- _ _.-_ — 9811011119 F- LL V O (V O 0 at y �Z w J >"I �i z ` O Kd � 4 �S ��L, 7A WI/p7M tMlm� 9L9ik 9J9LLW I[i�r����e� .�, — r " DIV -- _ae==a 3MtlM 351VM -�; ON ON a iw� = SP New q w O Z 300 OF wao N 0 A ❑ ❑ N k Will �eYe3' saa a�a,$ !N s Z � n z �a „vio 12, . Pl wu yO A n �. a m_ rxn aid z �-S�S'o' o m � move vmz cznn "gz `,fir n m C I O 0 m 0 O c z n � 223' 1.?I' 1.73' 4.27' O c=i 7.87' MIN. 0 9 VARES m Al D�> t ..>Amok | 2 ^\ . ,»� � w CITY OF SEWARD E 4 I 0ti lc; -1 to Adam5 Street Harbor Department .. e2 1 s9 907-22 , 718- fa Itarl3ort��astear.:: city of>N;.,•artl. ne# -- _ CONTRACT MODIFICATION (CHANGE ORDER) CONTRACT MODIFICATION NO. OWNER: City of Seward PROJECT: 5MIC Harbor Improvements - Paving PROJECT M CONTRACTOR: GMG General, Inc ADDRESS: 8000 Petersburg 5t. Anchorage, AK 99507 The Contract Documents are modified as follows upon execution of this Contract Modification: DESCRIPTION: A change to the contract is recommend for the Contractor to provide a replacement pre -cast concrete reducing slab for the stormdrain manhole in the travelift runway. The existing slab was found to be in poor condition. ATTACHMENTS: RFI 06 Replace Manhole Reducing Slab response signed 5/8/2019. C.F ANUt IN CONTRACT AMOUNT: � CHANGE IN CONTRACT TIME (CALENDAR DAYS): Original Amount: Original Duration: 1... $669,496.00 Completion Date (days/date): 6/15/2019 Previously Executed Modifications: Previously Executed Modifications; 0 to No. 0 0 to No. 0 Total: $0.00 Completion Bate (days/date): 6/15/2019 Contract Price prior to this Modification: (negative number for deduct days) $669,496.00 Amount of this Modification: Contract Times prior to this Modification: (negative number for deductF Completion Date (days/date): 6/15/2019 53,575.00 REVISED Contract Amount: REVISED Contract Time: $673,071.00 Completion Date (days/date) 0 RECOMMENDED. ACCEPTED: ACCEPTED: --r---- By;ay: E nginee7spe'Tr Ow Contractor Date: 5/8/2019 Bate: Cj Date: 3l1 Capital Improvement Projects \\ Seward Electric Department June 28, 2021 Capital Improvement Projects • Three Priority Projects o Fort Raymond Substation perimeter fencing (1A) o Transmission infrastructure along Nash Road, including the Spring Creek Substation (1 B) o Transmission Infrastructure along Seward Highway, including the Lawing and Fort Raymond substations (2) Safety and service reliability are the driving factors behind the Electric Department's capital improvement projects. M Fort Raymond Fencing In its current condition, the fence presents a major safety hazard o Only 8-feet tall; should be 12 feet minimum o Fence is leaning significantly in some areas, making substation easily accessible for people or animals o Substation and plant are in a residential area with schools and ball fields nearby o Easy access to the substation also compromises service reliability o Recommend replacing as soon as possible The cost estimate to replace the fencing is approximately $130, 000. 3W /.fir � � y'4. � V„q y,� ^S � wp 'lYa ��e„ r ✓ - .. � �: ��� it � � �,� ��.» `r � , � Rx ''+'• � � � x . �r Si AFri ES q!f Infrastructure — Nash Road • Much of the equipment (poles, lines, transformers) along the transmission corridor and in the Spring Creek Substation are beyond their service life • Recent oil testing of transformers indicate: o Spring Creek Substation — Transmission transformer is in a deteriorating condition; should plan for a replacement now (up to $1 M) o Testing also showed the load tap changer (LTC) for the transformer is failing; should be replaced or rebuilt asap (up to $100,000 to rebuild) • Since infrastructure must be replaced anyway, recommend upgrading from existing 69kV to 115kV Total estimate to replace and upgrade the entire infrastructure is $8 to $10 million. W Infrastructure — Seward Highway • Same story as Nash Road: Aging equipment along the transmission corridor and in the Lawing and Fort Raymond substations • Recent oil testing of transformers indicate: o Lawing Substation - Transmission transformer is in a deteriorating condition; should plan for a replacement now o Testing on the Lawing distribution transformer indicates imminent failure; should be replaced immediately o Fort Raymond Substation —All four transmission transformers are in a deteriorating condition with one much worse than the others; should plan for a replacement now • Recommend upgrading to 115kV; must be replaced anyway Total estimate to replace and upgrade the infrastructure is approximately $12 million. Questions June 28, 2021 Work Session for CIP Projects. Public Works Re -Location Information From Public Works Director, Doug Schoessler 434 6"' Ave Public Works Facility The following infornialion is provided regarding the relocation of the Public Works from downtown on 6th Ave to some other location in or around Seward. We have been dealing with this issue for many years and have an extensive file on the project. The desire is to relocate the facility. The existing property is considered prime property for development and could be sold to help pay for the new facility. The current Public Works department and shop are located on 2.5 acres and this location includes 3 buildings and 3 convex units for storage. Outside electric bull rails with plugins for heavy equipment are along the building and the east side fence. Supersack shipments of salt and calcium chloride are stored outside in the weather along with tires, large equipment parts, and all vehicles and equipment. -The primary building is a 5000-sf shop with tight equipment work areas, parts and tool storage, and crowded office space. -Secondary buildings include a 1440-sf 3-sided sand shed, and a 900-sf heated workshop for water/wastewater equipment and parts. -One of the 40 ft long convex containers has electricity wired in for lights, and shelving throughout. -We also have limited offsite storage in other locations. -We would also plan to add a bay on the new building for the Fire Dept's Ladder truck to be parked back on this side of the bay. This would benefit all concerned. Its Iti Environmental: The City has conducted prior soil analysis at the 6"' Ave location which was last updated in 2004 by R&M Consultants. This demonstrated no apparent environmental reasons for not selling the property for development. We have reached out to R&M as our "on call engineering fine" to conduct a new updated level I and level 2 site assessment. We will bring that cost forward on a Resolution to Council at the first meeting in July. Equipment availability: Although we have an equipment evacuation plan in the event of and earthquake and potential tsunami at our present location, it should be noted that our people are only at work approximately 23% of the hours available in a year's time and the odds of a disaster happening at an hour when no one is available to immediately move the equipment are very high. Therefore, we need to protect the shop and the equipment as much as possible by locating it away from potential tsunami and or floodway damage. Most of this equipment is essential to recovery after an event and needs to be in an area out of those zones. We have approximately $3M of rolling equipment parked at Public Works at this time. Proiected Cost: Before the Covid-19 increases, was estimated at $5.5M for CIP worksheets. Depending on when and where we relocate, that cost could be substantially higher. We were able to visit the Kenai and Soldotna Public Works facilities on 6/23/21. We met with their staff about recent PW facility builds, and to ask many questions while doing a walk through at each location. - A strong suggestion was to do pre -design "architectural programming". Architectural Pre -Design Services will often include programming, although the client sets the program the architect can assist and advise. The program is a Iist of all the spaces to go into the building and the general size or occupancy. This service usually takes just 3-4 weeks (per the Kenai group). It would most likely need an RFP to solicit design services. Possible Funding Sources: - Selling City owned properties including the 32 lots at the current Public Works Location - Possible grants through federal infrastructure funding - Use of some General Fund Reserves - Put the project out for GO bonds and repay with property sales revenue Note: Sample bond resolutions from the recent street paving bonds are available for reference and scheduling if decided to proceed in that direction. WM A prospective optimistic schedule is as follows: - Site selected to proceed to design phase. - Funding decision options decided through City Council and public. - RFP for Design and engineering by September 2021 resulting in successful bidder completing design by February 15, 2022 - RFP for Construction out for bidders by February 28, 2022, and due by April 11, 2022. - Construction Award April 25, 2022 City Council - Break ground asap after award and finish building by December 1, 2022 *Building material availability at this time is very limited and will most likely delay the Construction schedule. * New Facility Needs • It is estimated that a Public Works Facility building of 10,000-12,000 sf will adequately support the growing public works functions and the mechanical equipment to support them. • Sand storage adequate to hold 1000 - 1200 CY of winter sand will be required. Open storage of sand requires a 7-8% salt mixture versus a 3-4% mix in covered area. The difference leaches out in outside storage. A domed sand storage structure is the preferred solution. * Covered vehicle storage for dump trucks, loaders and other equipment would include an open faced shed building. • Outside materials laydown. It may be possible for seldom used items such as pipe to be located on the less valuable property in the back of SMIC • Security such as fencing, lighting and intrusion and fire alarms must be considered. • Additional warehouse parking section for the Fire Department's ladder truck to be stored on this side of the bay. Proposed Site Selection Criteria; In order to select a suitable new site, we must establish facility criteria and consider the needs to support future city growth. - Access should be via multiple points by way of arterial street/ or highway so as not to direct equipment through residential areas or school zones - Location should be: a) as central as possible to the population center & work activity in order to reduce response time, travel distance and operational costs. b) in an area with minimal potential for isolation ftom community during rNO disasters and least possible direct exposure to disasters. There is generally no time to reposition supplies and equipment out of hann's way, and city equipment will be needed for emergency service response during disasters. c) the more remote the site the greater the need for security. Cost should be kept to a minimum. Using already owned City property would be preferable to removal of private property from the tax rolls through purchase or lease incurring long term lease payments. A fair market value trade would be an acceptable alternative. Utilities including water, sewer and power are a necessity for fire protection, security and employee needs. Attarhyn.pntc! - 2004 Seward Public Works preliminary plans and sketches. 3 pages - City of Soldotna warm storage and admin pies and some design. 5 pages - 1998 Site Location Evaluation spreadsheet. 1 page - Seward Public Works larger pictures at 6'h Ave. 4 pages w g C.7 � EL x [c:;s_^; - -.,- .,,,-,,,,-� i,a :J�J!5is1bb4e` • 2 SEWARD CITY SHOP & ENGINEERING 2nd FLOOR DESIGN S'7UDY MAY 14, 2004 CONCEPT #I VACHINE SHO BE,-CW --" 5' �iALLWAY ls, FLOOR BATHROGMs !, SHOWERS ;sf FLOOR GENERATOR BOILER BELOW c,mu 641 ctusTRuc rioN, WINDOW WALL & METAL PANE-S -' I O-FICE OFFICE OF~ICE O�F��E ;17 OFFICE Qx1 'Ux,O 30x10 -ICx:v 10xiU 716 COPY �iJiP'r1E"JT O�F!c= 13x1� r� -- L-cbB - IfVEETING R00;v ' 2x23 F � 3 I •. I OFFICE _OFFI� vO7EOF' E vFFICE OF=:CE pax .-' lox10 1loxIc a: l WINDOW WALL & METAL PANELS GPARCH XAU A R C H J T F C T S 0 2 4 6 8 iC , ai 7 -' a,- i EQu:P --' r JL_ E 5TOR. 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'451, e f -TA-1 w r � T r a 1.� R r, L1 i „ PEtR: Additional RV Utility Sites ► Cost estimate: $200,000-$300,000 ► Rationale: ► Electric RV hookup is our highest demand offering. ► Vehicle electrification is increasing rapidly, further increasing demand. am PEtR: (-;;mpfire Rings Et Picnic Tables o. Cost estimate: $60,000-$70,000 � Rationale: These items are considered basic amenities at most campgrounds and are often requested. Providing proper fire containment has safety and environmental benefits. M PEtR: Community Rec ► Cost estimate: $3-$5 million ► Rationale: One of the most important factors cited in quality of life surveys is access to year-round recreation. Provide a dedicated programming space for community recreation activities and offer unique recreation facilities, e.g., climbing wall. Seward City Council Work Session Packet Topic: Discuss Capital Improvement Plan (CIP) Prioritization May 24, 2021 City Council Chambers Beginning at 5:00 p.m. Kr` TEMPORARY PROCESS FOR CITIZEN COMMENTS AT MAY 24, 2021 CITY COUNCIL WORK SESSION The Seward City Council will hold a Work Session on Monday, May 24, 2021. Because the City of Seward is currently experiencing a declared public health emergency due to Coronavirus Disease 2019 (COVID-19), alternate methods for providing comments has been created. CITIZEN COMMENTS 1. WRITTEN comments can be emailed to clerk(cr�,cityofseward.net. Identify whether you want your comments forwarded to council immediately, read aloud at the work session, or both. 2. TELEPHONIC comments can be made by sending an email request to clerkkcityofseward.net. Be sure to include the phone number you wished to be called. Questions:' Call the city clerk at 224-4045. How To Virtually ATTEND The Meeting 1. The meeting will be Live Streamed on the city's YouTube page. Log onto YouTube and type "City of Seward Alaska" into the search bar. 2. Listen on the radio. Tune to KIBH-FM 91.7 3. Watch on television. Tune into GCI Cable Channel 9. 41% CITY COUNCIL WORK SESSION Monday, May 24, 2021 at 5:00 p.m. TOPIC: Discuss Capital Improvement Plan (CIP) Prioritization City Council Survey Questions.............................................................. Pg. 2 SurveyResults................................................................ Pg. 12 SurveyRoll Up................................................................ Pg. 13 Department Heads SurveyRoll Up.............................................................. Pg. 16 373 Council Member= CIP Survey Results City of Seward — May 1011, 2021 CIP Priorities Survey o Survey asked council members to rank CIP projects for each fund by priority o Results presented show highest ranked projects from each fund o Results are based on completed surveys received by 5/10/21 o Complete survey results and comments can be found in the packet '411.7 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Yes No Are you in favor of the current proposal by administration for the 4 new animal shelter? Mril General Fund Top Priority Relocation of Public - Works Building 20% Campgrounds: Additional utility sites on waterfront 20% New Animal Shelter 60% Karl Electrir R ind T-Line replacement Nash Seward marine terminal electrical upgrades for cruise ships 20% Fort Raymond substation fence upgrade 60% 378 Public Works - Water Distribuition piping upgrades (ductile iron pipe) 20% Gateway tank roof 1 20% __. Replace Lowell Canyon 200k gallon tank with 500k gallon tank 40% New water meter program - with auto - readers 20% 379 Public Works - Wastewater SMIC lower lift statl construction 20% Replace infrastructure past useful life 20% Wastewater lagoon sludge removal 60% 380 Harbor Replace anodes on concrete floats 20% Replace K & L and remainder of G floats 20% NE boat launch ramp 60% 381 SMIC Addition of fire hydrants Improve drainage fence storage ar 20% I 10 North dock paving 20% ' Additional power stalls 20% Pave City owned boat yard roads 20% 41S'a Questions or Comments Council Members CIP Survey Results Baclaan DeMoss Osenga Terry McClure Seese Casagranda ... No Yes Yes Yes Yes would love to move Comment The current version is forward as quickly as Must proceed with good. Lets get it done possible this Campgrounds: General Fund 1 Additional utility sites Relocation of Public on waterfront Works building New animal shelter New animal shelter New animal shelter 2 Community Rec Lagoon boardwalk Center Construction New animal shelter Lowell Creek Tunnel Lowell Creek Tunnel rebuild 3 Community Rec Mobile & Portable Relocation of Public Parks & Rec Building Heat Loop Project center construction Radios for ALMR Works Building Demo Lowell Tunnel needs a full court press before I rated my decisions it fails and we have an on items that could emergency on our improve the livelihood hands. Animal shelter of citizens, while also low hanging fruit Comment being revenue ready to move generators. I rated forward. Moving City lowell creek tunnel Shop finally has good last as we are moving support and forward with the new momentum with project. I I JCouncil. Seward marine Electric Fund Fort Raymond terminal electical Fort Raymond Fort Raymond substation Fence upgrades for cruise T-Line Replace Nash Substation Fence substation fence Upgrade ships Rd upgrade upgrade Ships aren't asking for electrical upgrades at docks, but would be another large user if we make them connect. Fence at ft Comment raymond needs to get I really only have an done before someone opinion about #1 & #2 gets hurt. Then also (#2 choice was look at quality of downtown alleys infrastrure and underground) number of customers. Water Replace Lowell New water meter Distribuition Piping Replace Lowell Canyon 200k tank program - with auto- upgrades (ductile iron Canyon 200K tank with 500k tank readers Gateway Tank Roof pipe) with 500K tank Wastewater Watewater Lagoon Replace infrastructure Wastewater Lagoon SMIC lower lift station Wastewater lagoon sludge removal past userful life (75K) sludge removal construction sludge removal Comment Not very well versed on these projects. .. Harbor Replace K&L and Replace anodes on remainder of G float concrete floats NE Boat Launch Ramp NE Boat Launch Ramp Ne Boat launch ramp SMIC Pave Cityowned boat Additional power Improve drainage and Addtion of fire North Dock Paving yard roads stalls fence storage area hydrants Comment 318-4 Please rank the list of General Fund projects from highest priority to lowest priority. 18 16 14 12 10 8 6 4 2 0 M, ■ Score 64 \5 `ce c° Qa m c° Q° o` c po .a Q �\`a`C ° 'Q G Q� P. QQ' �Ka °C` Q`z `tea Q� °°4Q \aa� Q.� .C�a\� G �\, e a°� oa at e� \Q e ea \, Please rank the list of Electric enterprise fund projects from highest priority to lowest. 10 9 8 7 6 5 4 3 2 1 0 ■ Score Convert T-Line Downtown Gateway Lake Drive Old Mill #3 Radiator Woodland Fort Security Seward transmission Replace Nash Alleys (2nd, Upper and (Stoney Hoods Hills Raymond Upgrades to Marine line to 115 kV Rd 3rd, 4th and Lower Creek) Substation substations Terminal 5th) Fence electric Underground Upgrade upgrades for cruise ships 4r.11 8 Please rank the list of Water enterprise fund projects from highest priority to lowest priority. 7 6 5 4 3 2 Score 1 0 ■ Replace Lowell Canyon 200K gallon Tank with 500K gallon tank Distribution Replace 10" and Replace 10" and Gateway Tank Abandon wells Hypochlorite Replace water New Water Piping upgrades 14" AC water 14" AC water Roof at Fort Raymond Generator - lines - Elm Street Meter Program - (ductile iron line between line between SMIC Pump with auto- pipe) Phoenix and Sea Phoenix and Sea House - readers Lion Lion Construction Please rank the list of Wastewater enterprise fund projects from highest priority to lowest priority. 7 6 5 4 3 2 1 0 ■ Score oJ�14 LNo Goo �•Q o\¢ ca KIY:i n1- - v -1, 4-L,- I:-i -F u—. L -.--i-v-M:-- C..- ,I - -4-- Cw-- L.:-L --4- 4.5 F- IVC10V I C11 In LI IV I10L VI I IC 1 IJVI VI I L V I PI 10V I U I I PI VJGL.W 11 VI1 I I III I V 0 L priority to lowest priority. 4 3.5 3 2.5 2 ■ Score 1.5 1 0.5 0 Replace K&L and remainder NE Boat Launch Ramp 50 Ton wash down pad 5 Ton crane 1-dock Replace anodes on concrete of G Float floats 5 4.5 Please rank the list of SMIC enterprise fund projects from highest priority to lowest priority. 4 3.5 3 2.5 2 ■ Score 1.5 1 0.5 0 Improve Drainage and North dock paving Pave City owned boat Additional power stalls Additional restroom Addition of Fire Fence Storage Area yard roads Hydrants KI:YI Department Head CIP Survey Results Valarie Alan Norm Dustin Tyler Jackie Rob Clinton General Full Doug Sam Mobile and P & R Lowell Creek Lowell Creek Public Safety Lowell Creek 1 Animal Shelter Animal Shelter Portable Radios Warehouse/Office Animal Shelter Animal Shelter Tunnel Tunnel Building Tunnel for ALMR /Rec Center Mobile and Mobile and Lowell Creek Community Rec Public Safety 2 Tunnel Relocation of PW Relocation of PW Animal Shelter Center Building Portable Radios Portable Radios Relocation of PW Relocation of PW ALMR for ALMR Campgrounds: Wellington Mobile and Wellington Fire Hydrant Fire Hydrant Additional utility 3 Pavilion Portable Radios Animal Shelter Relocation of PW Pavilion Relocation of PW Upgrades PH 1 Upgrades P H 1 Animal Shelter sites on the ALMR waterfront 388 Lowel Creek Ti 30 Mobile and Protable Radic ALMR 10% Department Head Top General Fund CIP Project Public Safety Building 10% Parks & Rec house/office/rec center 10% 389 Council Members CIP Survey Results Baclaan DeMoss Osenga Terry McClure Seese Casagranda No Yes Yes Yes Yes would love to move Comment The current version is forward as quickly as Must proceed with good. Lets get it done possible this Campgrounds: General Fund 1 Additional utility sites Relocation of Public on waterfront Works building New animal shelter New animal shelter New animal shelter 2 Community Rec Lagoon boardwalk Center Construction New animal shelter Lowell Creek Tunnel Lowell Creek Tunnel rebuild 3 Community Rec Mobile & Portable Relocation of Public Parks & Rec Building Heat Loop Project center construction Radios for ALMR Works Building Demo Lowell Tunnel needs a full court press before I rated my decisions it fails and we have an on items that could emergency on our improve the livelihood hands. Animal shelter of citizens, while also low hanging fruit Comment being revenue ready to move generators. I rated forward. Moving City lowell creek tunnel Shop finally has good last as we are moving support and forward with the new momentum with project. I I JCouncil. Seward marine Electric Fund Fort Raymond terminal electical Fort Raymond Fort Raymond substation Fence upgrades for cruise T-Line Replace Nash Substation Fence substation fence Upgrade ships Rd upgrade upgrade Ships aren't asking for electrical upgrades at docks, but would be another large user if we make them connect. Fence at ft Comment raymond needs to get I really only have an done before someone opinion about #1 & #2 gets hurt. Then also (#2 choice was look at quality of downtown alleys infrastrure and underground) number of customers. Water Replace Lowell New water meter Distribuition Piping Replace Lowell Canyon 200k tank program - with auto- upgrades (ductile iron Canyon 200K tank with 500k tank readers Gateway Tank Roof pipe) with 500K tank Wastewater Watewater Lagoon Replace infrastructure Wastewater Lagoon SMIC lower lift station Wastewater lagoon sludge removal past userful life (75K) sludge removal construction sludge removal Comment Not very well versed on these projects. Harbor Replace K&L and Replace anodes on remainder of G float concrete floats NE Boat Launch Ramp NE Boat Launch Ramp Ne Boat launch ramp SMIC Pave City owned boat Additional power Improve drainage and Addtion of fire North Dock Paving yard roads stalls fence storage area hydrants Comment 390 Please rank the list of General Fund projects from highest priority to lowest priority. 18 16 14 12 10 8 6 4 2 0 gy t ° �� \GL'a�°�a \o`a�°r Jc\aQ �a��� t �P �a�Q ��°r �a��a a`Q��aJ \ 4r a°OJ°coa`a�a a�a��J mQ\a°m \Qa�,° �\c, �a ■ Score Please rank the list of Electric enterprise fund projects from highest priority to lowest. 10 T— 8 6 5 3 2 ]Ulu 1 0 ul Score Convert T-Line Downtown Gateway Lake Drive Old Mill #3 Radiator Woodland Fort Security Seward transmission Replace Nash Alleys (2nd, Upper and (Stoney Hoods Hills Raymond Upgrades to Marine line to 115 kV Rd 3rd, 4th and Lower Creek) Substation substations Terminal 5th) Fence electric Underground Upgrade upgrades for cruise ships 391 8 6 5 4 3 2 1 0 6 5 4 3 2 1 0 Please rank the list of Water enterprise fund projects from highest priority to lowest priority. Replace Lowell Distribution Replace 10" and Replace 10" and Gateway Tank Abandon wells Hypochlorite Replace water New Water Canyon 200K Piping upgrades 14" AC water 14" AC water Roof at Fort Raymond Generator - lines - Elm Street Meter Program - gallon Tank with (ductile iron line between line between SMIC Pump with auto- 500K gallon tank pipe) Phoenix and Sea Phoenix and Sea House - readers Lion Lion Construction Please rank the list of Wastewater enterprise fund projects from highest priority to lowest priority. tea\ 5�\ `��\ SAC• �a� � J 392 ■ Score ■ Score 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Please rank the list of Harbor enterprise fund projects from highest priority to lowest priority. Replace K&L and remainder NE Boat Launch Ramp 50 Ton wash down pad of G Float 5 Ton crane 1-dock Replace anodes on concrete floats Please rank the list of SMIC enterprise fund projects from highest priority to lowest priority. Improve Drainage and North dock paving Pave City owned boat Additional power stalls Additional restroom Addition of Fire Fence Storage Area yard roads Hydrants 393 ■ Score ■ Score City of Seward, Alaska City Council Meeting Minutes August 23, 2021 Volume 41, Page CALL TO ORDER The August 23, 2021 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Christy Terry. OPENING CEREMONY Police Chief Alan Nickell led the Pledge of Allegiance to the flag. ROLL CALL There were present: Christy Terry presiding and Tony Baclaan (arrived 7:17 p.m.) Liz DeMoss comprising a quorum of the Council; and Janette Bower, City Manager Brenda Ballou, City Clerk Jessica Stallard, Deputy City Clerk Excused — Seese Absent — None Sue McClure John Osenga Ristine Casagranda APPROVAL OF AGENDA AND CONSENT AGENDA Motion (McClure/Osenga) Approval of Agenda and Consent Agenda Terry added a Kenai Peninsula Economic Development District (KPEDD) presentation by Executive Director Tim Dillon to the agenda. Terry requested a housekeeping change to Resolution 2021-092 to change the year from 2021 to 2022 in the title. Casagranda pulled Resolution 2021-091 off consent. Motion Passed Unanimous The clerk read the following approved consent agenda items: Resolution 2021-087, Authorizing The City Manager To Seek Federal Funds Through The America Rescue Plan Act (ARPA) In The Amount Of $577,195 As Administered By The Kenai Peninsula Borough (KPB). 394 City of Seward, Alaska City Council Meeting Minutes August 23, 2021 Volume 41, Page Resolution 2021-088, Supporting The City Manager To Seek Additional Funds From The Federal Infrastructure/Stimulus Package, And Another Time Extension From The Alaska Energy Authority For The Heat Loop Project Grant. Resolution 2021-090, Authorizing The City Manager To Approve Change Order 1 To Task Order 7 With R&M Consultants Inc. For Engineering Support Services During The Construction Phase For The Replacement Of G, K And L-Floats At The Seward Boat Harbor, And Appropriating Funds Not To Exceed $65,082. Resolution 2021-092, Approving The 2022 Grant Year Budget For The Seward Community Health Center (SCHC) As Required By The Co -Applicant Agreement Between The City Of Seward And SCHC. Resolution 2021-093, Supporting The Efforts Of The Kenai Peninsula Borough To Secure A Grant From The Alaska U.S. Congressional Delegation For Spruce Bark Beetle Mitigation Within The Kenai Peninsula Borough And The Cities Within The Kenai Peninsula Borough. Resolution 2021-094, Authorizing The City Manager To Sign The Automatic Aid Agreement And Operational Plan Between The City Of Seward Fire Department And Seward Volunteer Ambulance Corps. Approval of the August 9, 2021 City Council Regular Meeting Minutes. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Tim McDonald appreciated the city's input on the Lowell Point sewer lagoon. He said there should be a minimum of three tests done on the lagoon and he looked forward to seeing the results. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Honoring Seward High School Athlete Lydia Jacoby for Winning Gold & Silver Medals for Swimming in the 2021 Summer Olympics Recognizing Nursing Supervisor Lynne Lawrence as Spring Creek Correctional Center's Employee of the Year for 2020 National Preparedness Month Proclamation Founder's Day Proclamation Vice Mayor Baclaan entered the meeting at 7:17 p.m. WWI City of Seward, Alaska City Council Meeting Minutes August 23, 2021 Volume 41, Page City Manager Report. City Manager Janette Bower said her and Assistant City Manager Stephen Sowell met with state and federal lobbyists and Tim Dillon regarding the stimulus package. It was a one to five-year stimulus package that would provide money into the economy for the next five years. The city manager would be bringing legislative priorities to council, so they could look for funding opportunities within the stimulus package. The budget kick-off meeting was scheduled for September 27, 2021. Budget assumptions would be provided to council by September 3, 2021. An employee mask mandate would go into effect for all city employees on August 24, 2021. In response to Baclaan, Parks & Recreation Director Tyler Florence said attendance numbers for Boys & Girls' Club and Parks & Recreation events could be provided to council. Other Reports and Announcements Chamber of Commerce Report by Jason Bickling. Bickling said this year's Silver Salmon Derby was a great event with the best weather. Ben Cheeseman was the derby winner with a 14.03 lb. salmon. The Chamber was working on the 2022 visitor guide and a marine marketing guide. Bickling thanked council for their consideration of the Seward Small Business Advisor position. In response to Terry, Bickling said the marine marketing guide would be ready in time for the Pacific Marine Expo. Presentations Business Advisor presentation by Cliff Cochran from the Small Business Development Center (SBDC). Presentation of the City's Draft 2020 Financial Report by Altman, Rogers & Co. KPEDD Presentation by Executive Director Tim Dillon. Council recessed at 8:25 p.m. Council resumed at 8:30 p.m. PUBLIC HEARINGS Ordinances for Public Hearing and Enactment Ordinance 2021-006, Amending Portions Of Seward City Code 15.10.140 Definitions; 15.10.226 Land Uses Allowed, To Change, Update, And Accommodate The Wishes Of The Public To Promote Life Safety And Maintain A City Code That Reflects The Community's Needs. This ordinance was introduced on July 26, 2021 and had a public hearing and was postponed on August 9, 2021. Bower requested council fail this ordinance and ask Planning & Zoning to bring it back to council. WIN City of Seward, Alaska City Council Meeting Minutes August 23, 2021 Volume 41, Page Notice ofthe public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared and the public hearing was closed. Terry said the Community Development Department and Planning & Zoning Commission had done a lot of good work on this ordinance but it needed to be fine-tuned. DeMoss concurred. Motion Failed Unanimous UNFINISHED BUSINESS — None NEW BUSINESS Resolutions Resolution 2021-089, Authorizing The City Manager To Purchase A Ventrac Sidewalk Snow Vehicle Plus Accessories From Totem Equipment And Supply In The Amount Of $26,235, And Appropriating Funds. Motion (Baclaan/McClure) Motion to Amend (Terry/Baclaan) Motion to Amend Passed Main Motion Passed Approve Resolution 2021-089 Amend Resolution 2021-089 by removing "and appropriating funds" from the title. Unanimous Unanimous Resolution 2021-091, Authorizing The City Manager To Enter Into A Contractual Agreement With The Alaska Small Business Development Corporation And The Seward Chamber Of Commerce For Three Years To Establish A Seward Small Business Advisor Position, Which Is Intended To Increase Small Businesses Development In The Seward Community, In An Amount Not To Exceed $25,000 Per Year, And Appropriating Funds. Motion (Baclaan/McClure) Approve Resolution 2021-091 In response to McClure, Bower said the person hired for this position would be living and working in Seward. Council suspended the rules to speak to Chamber Director Jason Bickling. In response to McClure, Bickling said this would be an employee of the Small Business Development Center (SBDC). He said SBDC had high standards and they were very successful. Bickling clarified that this would be a three-year position. WIN City of Seward, Alaska City Council Meeting Minutes August 23, 2021 Volume 41, Page In response to Casagranda, Bickling said this position was not related to the Blue Pipeline. He was very confident that SBDC would be very good for Seward businesses. Casagranda supported this position 100% and she said it was her dream job. Council resumed the rules. Baclaan had worked with SBDC and the Chamber of Commerce on the Small Business Start - Up Week. He supported the Small Business Advisor position. Terry was very happy to hear so much support for this position. DeMoss loved the city supporting anything that was for small businesses. Motion Passed Unanimous INFORMATIONAL ITEMS AND REPORTS — None CITIZEN COMMENTS Tim McDonald thanked council for their hard work. He was concerned that the Alaska Railroad extending their dock would bring too many cruise ships to Seward. He was in favor of extending the dock to be a back-up port for Anchorage, but he was not in favor of more cruise ships in Seward. He wanted plastics to be recycled. Lynda Paquette was concerned that JI s were not being prioritized by the state department, because this created a summer worker shortage. She requested that everyone reach out to lobbyists and ask them to prioritize summer workers and J1 visas. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Bower said she would be bringing federal and legislative priorities to council. She encouraged council to think big and think about the city's infrastructure needs. DeMoss thanked Paquette for her citizen comments. She agreed that not having JIs was a major problem for Seward. She congratulated Jacoby and Lawrence. Osenga congratulated Jacoby and Lawrence. He asked everyone to be COVID aware and to take care of each other. McClure said Founder's Day would be celebrated from 1:00-4:00 p.m. on August 28, 2021 at the Seward Library Community Museum. There would be an informational speech on Mary Berry, who passed away this year. She asked everyone to do what they can to keep themselves and everyone else safe from COVID. 398 City of Seward, Alaska City Council Meeting Minutes August 23, 2021 Volume 41, Page Baclaan thanked McDonald and Paquette for their citizen comments. He thanked John Osenga, Leighton Radner, Randy Wells, and Mike Calhoon for running for council. He asked everyone to register to vote and participate in our local elections. Terry asked the city manager to include J1 visas in council's state and federal priorities. She said council needed to focus on supporting both year-round and seasonal businesses. She encouraged council to focus on childcare and housing. She thanked the Chamber of Commerce, the Harbor, and other city departments for a great Silver Salmon Derby and a great summer. ADJOURNMENT The meeting was adjourned at 9:00 p.m. Jessica Stallard, CMC Christy Terry Deputy City Clerk Mayor (City Seal) 399 MEMORANDUM �6 Meeting Date: September 13, 2021 To: Seward City Council From: Brenda Ballou, City Clerk Agenda Item: Appointment to the City of Seward seat on the Cook Inlet Aquaculture Association Board (CIAA) BACKGROUND & JUSTIFICATION The City of Seward retains a seat on the Cook Inlet Aquaculture Association Board (CIAA). At its August 24, 2020 meeting, council appointed Katrina Counihan, PhD to serve as the city's representative with a term to expire May, 2022. Unfortunately, Dr. Counihan had to resign from the role in August when she relocated to Pennsylvania, so the city clerk solicited letters of interest from the public to serve the remainder of the term. Two citizens submitted letters of interest: Robert White and Robert Barnwell. The letters are attached for council review. There is no formal appointment process outlined for this seat on the CIAA, so the clerk's recommendation for appointment is to use the ballot voting format outlined for Board and Commission Appointments, as outlined by Seward City Code 2.30.310: • Ballots have both names on them. • Each council member votes for no more than one applicant. • Pass the voted ballots to the city clerk to be read aloud and tallied. • The applicant must receive at least four of the votes to be appointed. (SCC 2.30.210/310/410 states the council appoints by ballot voting if there is more than one applicant for the position.) RECOMMENDATION Council conducts a vote to determine which applicant should fill the vacancy on the Cook Inlet Aquaculture Association Board with a term to expire in May, 2022. Clerk's Note: Since the term will expire in May, 2022, council may choose to appoint the representative to serve the remainder of the current term plus the next full term (May, 2025), or else the city clerk will solicit letters of interest in April, 2022 for the next term. 400 RECEIVED AUG 2 5 2021 OFFICE OF THE CITY CLERIC August 26, 2021 City of Seward City Clerk PO Box 167 Seward, AK 99664 Madam Clerk, am writing this letter in response to the request for applicants for the CIAA board of directors. I am a long time resident of Seward, an avid fisherman both sport and commercial. In addition to bringing numerous years of local expertise in these areas, I am a member of the Seward Fish and Game Advisory committee. That committee is a state of Alaska committee that is advisory to the Board of Fish and Board of Game. Thank you for consideration on this appointment, unfortunately I have a conflict in my schedule and will be out of town on the night of the council meeting.. I can be reach on my cell phone most times 907.362 1453 Robert White i 401 August 27, 2021 To Whom it May Concern: RECEIVED AUG 2 7 Z021 OFFICE OF THE CITY CLERK My name is Bob Barnwell and I'm applying for the Cook Inlet Aquaculture's vacant board position representing the City of Seward. I have extensive experience in fisheries, as detailed below, and am interested in representing Seward. Relevant Experience: Icicle Seafoods 1978-79 Front Dock Crew in Seward Alaska Department of Fish and Game Fish Tech 1980-85 Cook Inlet to Bering Sea experience: salmon fish counts, egg takes, fish sampling and field surveys Commercial Fishing Salmon 1985-2007 Kodiak, Bristol Bay, Lower Yukon experience: Lower Yukon Drift, Bristol Bay Drift and Set Net, Kodiak Set Net Sports Fishing Guide 2009-2016. Alaska Fjord Charters Owner experience: guided multi day fishing and sight seeing trips in Gulf of Alaska Teacher 1989-2017 Retired. All subjects, including fisheries science experience: Hoonah, Unalaska, Seward, Venezuela, Myanmar Education: BA English Literature- Montana State University Teaching Certificate- University of Alaska Juneau Masters of Teaching- Framingham University Contact Information: P.O. Box 2611 Seward, Alaska 99664 907-599-0493 rbarnwe1155CcDgmaiI. com Sincerely, Bob Barnwell :11YA Annex Building Discussion Documents: • Agenda Statement • Attachments: o Appraisal Report :111X1 City Council Agenda Statement Meeting Date: September 13, 2021 To: City Council From: Janette Bower, City Manager Agenda Item: Discuss the possible sale of the Annex building Background and justification: In response to discussion at recent City Council meetings where Council Members requested the City Manager examine the viability of selling the "Annex" building, the City Manager ordered an appraisal of the property, located at Lots 38,39, & 440 (physical address is 238 Fifth Avenue, Seward Alaska 99664). MacSwain Associates LLC conducted the appraisal in July of 2021 and determined that the property has an estimated market value of $400,000. Items of note that should be evaluated include the following: The Appraiser noted the following, "Notably, the subject building was constructed in 1950 and is nearing the end of its economic life. Information provided by the client indicates the building is afflicted with environmental conditions including mold, asbestos, and lead paint. These factors greatly impact the marketability of the property and represent a detrimental condition. After completing our analysis, we determined the highest and best use is for redevelopment of the property. The report is prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP)." 2. A local nonprofit food bank (He Will Provide) operates out of the Annex building and has a lease which is set to expire in 2025, with a 5-year option to renew. He Will Provide provides a valuable service to the community through their distribution of hundreds of free meals to the vulnerable population in Seward. The City Manager requests that City Council provide direction on the possible sale of the Annex building. Consistency checklist: N/A Fiscal note: No fiscal impact at this time. Finance Department approval: 4 Attorney Review: Yes ❑ No ❑ Not applicable x❑ Recommendation City Council provide the City Manager direction on the future use or sale of the Annex facility. 404 MACSWAIN ASSOCIATES LLC 4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503 APPRAISAL REPORT City of Seward Annex Property Lots 38, 39, & 40, Original Townsite of Seward 238 Fifth Avenue, Seward, Alaska Date of Value: July 8, 2021 File No. 21-3551 Submitted To: Janette Bower, City Manager City of Seward PO Box 167 Seward, AK 99664 :EIS. MacSwain Associates LL C 4401 Business Park Blvd., Suite 22 Anchorage, Alaska 99503 Phone: 907-561-1965 Fax: 907-561-1955 s. macswain(?�macswain. com August 2, 2021 Janette Bower, City Manager City of Seward PO Box 167 Seward, AK 99664 Re: City of Seward Annex Property Lots 38, 39, & 40, Original Townsite of Seward 238 Fifth Avenue, Seward, Alaska Dear Ms. Bower: We have prepared an Appraisal Report of the above -referenced property located in Seward, Alaska. The appraised property consists of the 8,192± square foot Annex Building situated on 9,000± square feet of land at the southeast corner of Adams Street and Fifth Avenue. The purpose of the appraisal is to assist the client with making a selling decision. The type of value estimated is market value. The City of Seward leases a portion of the basement area to the Food Bank in Seward. According to the City, the initial lease rate was $625 per month, but subsequently reduced in order to assist the Food Bank with enhancing their charitability. The lease is valid through 2025 with a five-year option to renew. We do not consider this lease to meet the criteria of an arm's-length transaction as the City of Seward is not acting in their best financial interest, but rather as a steward of the community. Thus, the property rights appraised is the fee simple estate. Notably, the subject building was constructed in 1950 and is nearing the end of its economic life. Information provided by the client indicates the building is afflicted with environmental conditions including mold, asbestos, and lead paint. These factors greatly impact the marketability of the property and represent a detrimental condition. After completing our analysis, we determined the highest and best use is for redevelopment of the property. The report is prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). Based on the data, reasoning, and analysis that follows, the market value of the appraised property, as of July 8, 2021, is estimated as follows. FOUR HUNDRED THOUSAND DOLLARS $400,000 21-3551: City of Seward Annex Property, Seward, Alaska 406 MacSwain Associates LLC We direct your attention to the Scope of Work, Certificate of Appraisal, and Assumptions and Limiting Conditions for an explanation of restrictions and limitations of this report. We also direct your attention to the limiting language regarding COVID-19, which succeeds the Assumptions and Limiting conditions in the addendum. If you have any questions, please contact our office. Respectfully submitted, Alex Kleinke State of Alaska Certificate No. 148873 Steve MacSwain, MAI State of Alaska Certificate No. 42 21-3551: City of Seward Annex Property, Seward, Alaska 407 MacSwain Associates LLC Appraiser Certification The undersigned certifies that to the best of their knowledge and belief: 4 The statements of fact contained in this report are true and correct. 4 The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 4 We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. 4 We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 4 We have not performed any services as an appraiser or in any other capacity, regarding the property that is the subject of this report, within the three-year period immediately preceding acceptance of this assignment. 4 Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 4 Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 4 The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 4 The reported analyses, opinion, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. 4 The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 4 Alex Kleinke inspected the property on July 8, 2021. Steve MacSwain, MAI is familiar with the property from other appraisal assignments in Seward. 4 No one provided significant real property appraisal assistance to the persons signing this certification. 4 As of the date of this report, Alex Kleinke and Steve MacSwain, MAI are certified General Real Estate Appraisers in the State of Alaska and have completed the education requirements through June 2023. 4 As of the date of this report, Steve MacSwain, MAI has completed the Standards and Ethics Education Requirements for Designated Members of the Appraisal Institute. 21-3551: City of Seward Annex Property, Seward, Alaska 408 MacSwain Associates LLC 4 As of the date of this report, Alex Kleinke has completed the Standards and Ethics Education Requirements for Practicing Affiliates of the Appraisal Institute. 4 As of the date of this report, Steve MacSwain, MAI has completed the continuing education program for Designated Members of the Appraisal Institute. 4 As of the date of this report, Alex Kleinke has completed the continuing education program for Practicing Affiliates of the Appraisal Institute. Steve MacSwain, MAI State of Alaska Certificate No. 42 812121 Alex Kleinke Date State of Alaska Certificate No. 148873 21-3551: City of Seward Annex Property, Seward, Alaska 409 MacSwain Associates LLC Table of Contents Title Page Transmittal Letter Appraiser Certification Table of Contents Appraisal Summary 1 Chapter 1: Definition of the Appraisal Problem 5 Chapter 2: Seward Area and Market Summary 9 Chapter 3: Neighborhood Summary 13 Chapter 4: Site Description and Analysis 15 Chapter 5: Improvement Description and Analysis 17 Chapter 6: Highest and Best Use Analysis 21 Chapter 7: Property Valuation 23 Addendum Assumptions and Limiting Conditions Statement on COVID-19 Appraiser Qualifications 21-3551: City of Seward Annex Property, Seward, Alaska 410 MacSwain Associates LLC Appraisal Summary Value Type: Market value Property Type: Commercial Property Rights Appraised: Fee simple estate Location: Southeast corner of Adams Street and Fifth Avenue, within the Seward Townsite, Seward, Alaska Legal Description: Lots 38, 39, & 40, Block 8, Original Townsite of Seward. Tax Parcel No: 149-130-10 Physical Address: 238 Fifth Avenue, Seward, Alaska Property Owner: City of Seward (per KPB) Site Description: Three (3) rectangular -shaped lots each measuring 30'X 100', totaling 9,000± square feet; site is moderately sloping and near access grade, soils are considered good. Zoning: CBD — Central Business District Access/Frontage: 100± feet of frontage on Adams Street, 90± feet of frontage on Fifth Avenue and alley Utility Service: Public water, sewer, electricity, and telephone Improvement Description: The subject improvement was constructed in 1950, originally as a co-op grocery store. It then was converted into City offices on the main level with the Food Bank utilizing a portion of the basement for storage. The structure contains 8,192± square feet of gross building area. Construction type is concrete with metal panels on the second main level. Our analysis indicates the building is nearing the end of its economic life. Personal Property & FF&E: Not included Land to Building Ratio: 1.1 to 1 Off -Street Parking: No off-street parking required in CBD zone; subject lot has three to four on -site parking spaces on southeast portion of site Hazardous Substances: Asbestos, lead paint, and mold in building 21-3551: City of Seward Annex Property, Seward, Alaska 1 411 MacSwain Associates LLC Wetland Designation: Flood Hazard Restrictions: Highest and Best Use: Date of Property Inspection: Effective Appraisal Date: Date of Report: Market Value Estimate: None Zone X, an area outside the 0.2% annual chance floodplain As Vacant — Commercial development As Improved — Interim -use (office -storage) July 8, 2021 July 8, 2021 August 2, 2021 $400,000 21-3551: City of Seward Annex Property, Seward, Alaska 2 412 MacSwain Associates LLC Subject Property Photographs Date: July 8, 2021 Taken by: Alex Kleinke South view of subject from Adams Street East view of property from Adams Street / Fifth Avenue intersection East view of Adams Street frontage South view of subject from Adams Street Northwest view of subject from southeast corner North view of Fifth Avenue frontage 21-3551: City of Seward Annex Property, Seward, Alaska 3 413 MacSwain Associates LLC Subject Property Photographs Date: July 8, 2021 Taken by: Alex Kleinke Interior view of office area on main level View towards office from entrance on main level Basement office area Demised office area on main level View of office on main level Basement area used by Food Bank 21-3551: City of Seward Annex Property, Seward, Alaska 414 4 MacSwain Associates LLC Chapter 1: Definition of the Appraisal Problem Overview We prepare an Appraisal Report that analyzes the City of Seward Annex Property, consisting of an 8,192± square foot building comprised of offices and storage space, situated on a 9,000± square foot site. The purpose of the appraisal is to assist the City of Seward with making a selling decision. The report is intended to comply with the Uniform Standards of Professional Appraisal Practice (USPAP). Value Type Market value Client City of Seward Intended Use of Assist client with making selling decision Appraisal Report Intended User of City of Seward, property owner Appraisal Report Property Inspection July 8, 2021 Date Effective Appraisal July 8, 2021 Date Date of Report August 2, 2021 Identification of Real The appraised property is known as the City of Seward Annex, which Estate Appraised was the former community library. The physical address is 238 Fifth Avenue, Seward, Alaska. The Kenai Peninsula Borough identifies the property as Parcel ID 149-130-10. This location is within the Seward Townsite, proximate to the current Seward Community Library & Museum. 21-3551: City of Seward Annex Property, Seward, Alaska 5 415 MacSwain Associates LLC Definition of The type of value estimated is market value. Market value is defined as Market Value follows. The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. buyer and seller are typically motivated- b. both parties are well informed or well advised, and acting in what they consider their own best interests; C. a reasonable time is allowed for exposure in the open market; d. payment is made in terms of cash in US dollars or in terms of financial arrangements comparable thereto; and e. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. I We estimate the market value of the fee simple estate, which is defined Property Rights as follows. Appraised Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.2 Legal Description According to the Kenai Peninsula Borough's assessment information, the subject property is legally defined as follows: Lots 38, 39, & 40, Block 8, Original Townsite of Seward, Section 10, Township I South, Range I West, Seward Meridian. 1 Appraisal of Real Estate, Fifteenth Edition (2020), by the Appraisal Institute, p. 49. 2 Appraisal of Real Estate, Fifteenth Edition (2020), by the Appraisal Institute, p. 60. 21-3551: City of Seward Annex Property, Seward, Alaska 6 416 MacSwain Associates LLC Property Owner Public Records indicate the owner of the appraised property is as follows. City of Seward PO Box 167 Seward, AK 99664-0167 Assessed The property is owned by the City of Seward and exempt from taxation. Value The property's assessment history for the past three years is as follows. The real estate taxes column assumes private ownership, which would be subject to taxation. Our analysis indicates the assessed value exceeds market value, as it likely does not reflect the environmental conditions afflicting the subject. KPB Historical Assessed Value (149-130-10) Year Land Improvements Total Mill Rate RE Taxes 2021 $152,500 ($16.94/SF) $498,900 $651,400 9.29 $6,051.51 2020 $152,500 ($16.94/SF) $537,400 $689,900 9.29 $6,049.18 2019 $140,300 ($15.58/SF) $542,000 $682,300 9.29 $6,338.57 Three -Year Sale and There have been no known sales or of the property in the past three Lease History years. The Food Bank leases a portion of the basement area for storage. The City of Seward indicated the initial lease rate was $625 per month, but was subsequently reduced in order to assist the Food Bank with meeting their charitable obligations. The lease is valid through 2025 with a five-year renewal option. Based on the terms of the lease, we do not consider this agreement to meet the criteria of an arm's-length transaction. Report Type and The cost, sales comparison, and income capitalization approaches to Methodology value were examined and considered in the appraisal process. Due to difficulty in estimating depreciation, a cost approach was not developed. Therefore, the appraisers relied on the sales comparison and income capitalization approaches to value. The appraisal report is a summary of the appraisers' data, analyses, and conclusions with supporting documentation retained on file. 21-3551: City of Seward Annex Property, Seward, Alaska 7 417 MacSwain Associates LLC Scope of Appraisal Alex Kleinke of MacSwain Associates, LLC performed the inspection of the appraised property, data collection, and analysis. Steve MacSwain, MAI has observed the property during the course of other Seward appraisal assignments and is familiar with the neighborhood. In addition, Steve MacSwain, MAI administered the appraisal process, reviewed draft appraisals, and concurred with an opinion of value. Preparation of this report encompassed the following scope of work that concluded with an opinion of market value. 4 Inspected the appraised property on July 8, 2021; 4 Discussed and inspected the property with Jackie Wilde, Community Development Director with the City of Seward; 4 Reviewed aerial mapping indicating appraised property premises provided by City of Seward; 4 Reviewed KPB assessor map 149-130; 4 Reviewed Original Townsite of Seward plat map; 4 Reviewed City of Seward Zoning Map and zoning codes; 4 Reviewed City of Seward 2030 Comprehensive Plan Update prepared by PDC Engineers, adopted May 30, 2017; 4 Gathered data from the KPB Assessor's office and State of Alaska Recorder's office regarding ownership, assessments, and general property information; 4 Interviewed Seward real estate Brokers, agents, and property owners regarding commercial sales and rentals; 4 Interviewed Seward market participants regarding current commercial market conditions, trends, and expectations; 4 Gathered and confirmed information on comparable remodel costs, demolition costs, sales and rentals; 4 Applied the sales comparison approach to arrive at an indication of market value of the land; 4 Reviewed demolition costs on file to estimate cost to raze improvement at the end of its economic life; 4 Applied the discounted cash flow (DCF) method to determine the contributory value of the improvements, if any; and 4 Concluded with an estimate of market value. Exposure Time We have collected and analyzed market and economic data that projects real estate trends and activity for similar commercial properties. Discussions with Brokers and analysis of similar property sales indicate that a period of approximately 12 months prior to our effective date of value is a reasonable exposure period. 21-3551: City of Seward Annex Property, Seward, Alaska 8 418 MacSwain Associates LLC Chapter 2: Seward Area and Market Summary Overview We present a summary analysis of factors that define the socio- economic factors defining the Seward economy and real estate market. The map below depicts Seward location within Southcentral Alaska. Seward is located at the head of Resurrection Bay, on the southeast side of the Kenai Peninsula. It lies 70 air miles south of Anchorage or 126 miles via the Seward Highway. Seward has an ice -free port with year- round access to the Alaska Railroad. Location Map Anchorage j NAnchorage �Tyonek U N I T E D S T A T E S Whittier Nikiski o Salamatof c Kenai oSterling Chugach State Park Soldotna _Soldotna o Cooper Cohoe Landing Q Cgi j Clam Gulch Kenai National Wildlife Refuge Chenega o ook lnfet Ni SewardSeward s Homer enai Fjords National Park+ .S_ .Anchor Dint - Resurrection Bay Kachemak City ma Co ri ht6Hn2o03r Micro-so-ft`G'60+andfor its suppliers. All ri hts reserved. Population Within city limits, Seward's 2020 population estimate was 2,509, representing stability over the past decade. Community growth areas are principally rural residential neighborhoods to the north outside city boundaries. According to the State of Alaska Division of Community and Regional Affairs (DCRA), a table containing Seward's historic population follows. 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2,509 2,545 2,569 2,512 2,663 2,740 2,768 2,487 2,752 2,746 21-3551: City of Seward Annex Property, Seward, Alaska 9 419 MacSwain Associates LLC The actual contributory population to the Seward economy is 4,700± residents with the inclusion of rural residential districts located outside of city boundaries. Moreover, the seasonal population swells to nearly 6,000± during the prime summer months. Seward Employment Seward employment is gradually shifting from trades and fishing to leisure, hospitality, and government. Although Seward employment is projected to increase, we anticipate unemployment to remain above the statewide rate due to the seasonal character of the economy. Because of high demand for seasonal employment, part of the work force resides outside of the Seward residential sphere. Seward Area Map OP a�, ,• r0�7 �i j\ {`j(j/1j IIi W/A� 1`� ',��' � �r�1 I V•'��..�-- '1 � Y O"W7.i it Small Boat Seward 'J'' . Harbor Town ite 7% SMIC�.' Seward Economic Ice -free deep -water port facilities integrated with road and rail service Sectors to interior Alaska drive the Seward economy. The port is home to a commercial fishing fleet, and is the impetus for thriving tourism and recreation. These latter economic sectors have enhanced retail and service industries as well as increased demand for petroleum products. 21-3551: City of Seward Annex Property, Seward, Alaska 10 420 MacSwain Associates LLC Diversification of the Seward economy has been a central theme of city management, planning, and infrastructure development over the past few decades. Examples of economic diversification include expansion of the Small Boat Harbor, Alaska Vocational and Technical Center (AVTEC), Aurora Energy Services Coal Terminal (not operating), and the Spring Creek Correctional Facility. Furthermore, construction of a breakwater to protect Seward Marine Industrial Center (SMIC) from prevailing weather and seas will improve the economic viability as a market alternative for shipbuilding and repair. Evolving economic diversification is a stabilizing influence and cause to enhance growth opportunities for corollary industries. Despite the seasonal character of the Seward economy, government, natural resources, health care, and transportation sectors contribute year-round employment. A summary analysis of the primary components of the Seward economy follows. Tourism: Tourism has continued to be a strong economic sector of the Seward Economy since the recovery from the national recession. Over the five-year period from 2014 to 2018, the City of Seward reported a 17% increase in sales tax revenue, and a 3 1 % increase in hotel/motel tax over the same period, with 2019 figures anticipated to grow further. New hotel construction in 2020 has the potential to further increase revenues in future seasons. Cruise ship port calls increased from year to year since 2013 (50 ships) to 2016 (67 ships) to 2019 (87 ships and 95 days with cruise ships in port). Consequently, Seward cruise ship visitation increased by 84 percent over the same period, with 125,000± passengers in 2013 to 230,000± passengers estimated in 2019.3 The 2013 figures represent an average passenger/ship ratio of 2,500 passengers, while 2019 figures indicate 2,640 passengers. The increase is due to not only fuller ships, but also the industry replacing medium- sized cruise ships with larger cruise ships. Conversely, expedition style trips with 100 to 200 passengers are becoming increasingly common. These ships, while lowering the passenger/ship average, offer exclusive, high -cost ecotrips. As this trend continues, passenger volume should continue to increase over the long term, with exception to the substantial decline anticipated for 2020 and 2021 due to the COVID-19 Pandemic. PortActivity: As an industrial port, Seward has not reached the potential that was invested in port infrastructure. However, over the past several years, SMIC has benefited from increased demand for lease property. Companies that commenced leases in SMIC in 2013 and 2014 include Rainbow Fiberglass and Boat Repair and Vigor Alaska. Rainbow has continued to expand their lease footprint, entering into new leases in 3 City of Seward, Comprehensive Annual Financial Reporting. 21-3551: City of Seward Annex Property, Seward, Alaska 11 421 MacSwain Associates LLC 2016 and 2019. JAG Alaska, Inc. became the new operator at the Seward shipyard after Vigor announced its withdrawal. Additional new lessees in SMIC include SEWMAR, LLC and Hamilton Construction. Established marine industrial uses that enhance economic productivity include bulk fuel storage, ship repair and dry-dock, and fish processing plants. The US Coast Guard has expressed interest in commencing land leases in SMIC, however no official commitments have been made as of early 2021. SMIC recently completed a new $27M± rubble mound breakwater, intended to improve protection and enable moorage of larger ships, with a new dock rounding out recent SMIC construction. Construction: A summary of construction projects that had a measurable effect on the Seward economy include: 4 $30 million Seward Long -Term Care Facility (LTCF) in 2010 4 16,300± square foot Seward Community Library and Museum in 2012 4 $13 million student housing complex for Alaska Vocational Technical Center in 2014 4 Conversion of the 13,500± square foot former Elks Lodge into a brewery/restaurant in 2013 New 80± room hotel on the corner of 4th Avenue and Van Buren Street 4 19,000± square foot special -use marine industrial building located north of the Seward Small Boat Harbor Real Estate Market We anticipate the Seward real estate market to remain stable over the Summary medium and long-term with upward trending prices for properties in high demand and limited supply. Importantly, the real estate market has a direct link to the health of Seward's economic sectors. For example, increases in tourism and recreation cause greater demand for properties that can accommodate cruise ships. These market dynamics will cause upward price pressure. We weighed these market conditions in analyzing the appraised property that benefits from a strategic location fronting the Seward Highway. Short-term uncertainty, especially for the Summer 2021 cruise ship season could dampen the Seward economy, which relies heavily on tourism. An employee shortage has prevented many businesses, primarily restaurants, from operating at full capacity and taking advantage of the return of overland tourism, as hesitancy to travel has diminished. 21-3551: City of Seward Annex Property, Seward, Alaska 12 422 MacSwain Associates LLC Chapter 3: Neighborhood Summary Overview The subject is located in Downtown Seward within the Historic District. Development in the neighborhood is comprised of both private commercial use and public institutional use. The reader is referred to the zoning map below illustrating neighborhood land use and assisting with the description and analysis that follows. City of Seward Zoning Map tN Rural Residential Single Family Residential Two Family Residential Subject r Multi Family Residential ■ Urban Residential ■ Office Residential Harbor Commercial W., Auto Commercial Central Business District ■ Industrial " Institutional Park Resource Management a Neighborhood The neighborhood is in the southern portion of Downtown Seward. Description Located south of the Seward Small Boat Harbor, this neighborhood is primarily zoned commercial. The prime commercial area fronts Fourth and Fifth Avenues bounded by Adams Street to the north and Railway Avenue to the south. Development consists of restaurants, lodging facilities, and retail, taking advantage of the tourism -based economy. Laid out in a grid pattern, streets are paved and improved with sidewalks, curbs, and street lights. Fourth and Fifth Avenues contain street parking to enable access to neighborhood businesses. All public utilities are available. The new City of Seward Community Library & Museum is located just to the east of the subject and City offices are situated to the northwest. Overall, the immediate neighborhood is considered to be one of the prime commercial areas in Seward. 21-3551: City of Seward Annex Property, Seward, Alaska 13 423 MacSwain Associates LLC Summary In summary, with tourism industry as the economic focal point, Seward's outlook is promising. The subject neighborhood south of the Seward Small Boat Harbor and benefits from its proximity to the Alaska SeaLife Center. The effects of the COVID-19 Pandemic have had a measurable effect on the Seward economy, primarily attributed to the loss of jobs and tax revenue. The impact on real estate prices is not yet measureable based on reliable data. No analysis or opinions contained in this appraisal should be construed as predications of future market conditions or value. Based on these factors, the outlook for the subject neighborhood is unpredictable. 21-3551: City of Seward Annex Property, Seward, Alaska 14 424 MacSwain Associates LLC Chapter 4: Site Description and Analysis Overview Analysis of land describes the characteristics that enhance or detract from its utility or marketability. The site description and analysis is based on our property inspection and review of the KPB Parcel Map 149-130, aerial, Original Townsite plat map, and other mapping. The parcel map below as well as aerial mapping on page 17 assists in the description and analysis of the parcel that follows. Site Description KPB Parcel Map 149-130 140 o n Subject Adams Adams Street St N CD � e -----------------i - 70 Cn `— ---0.22AC 77 PA .09 AC~ 4�m ,A LIU Al AC Fifth Avenue - - - - ---- ----- J Q7AC. - 16 o.ra ac. P �S PQ7AG K Location: Southeast corner of Fifth Avenue and Adams Street within the Seward Townsite, Seward, Alaska Shape and Land Rectangular -shaped site comprised of three Area: 30'X 100' lots, totaling 9,000± square feet or 0.21± acre Access: Fifth Avenue and Adams Street allow street parking fronting the north and west sides of the property allowing for parking and pedestrian access to the property, while the alley along the east boundary allows vehicular access to the site. Zoning: I CBD — Central Business, which provides for an area of convenient, attractive, concentrated 21-3551: City of Seward Annex Property, Seward, Alaska 15 425 MacSwain Associates LLC Frontage and Exposure: Easements and Restrictions: Public Utilities: Topography: Vegetation: Soil Conditions: Wetland Designation: Flood Hazard: Environmental Conditions: Site Utility: commercial development primarily intended for retail, financial, entertainment and professional services occurring within enclosed structures. 100± feet of frontage on Adams Street, 90± feet of frontage on Fifth Avenue and alley None known or shown on Original Townsite plat or KPB parcel map Public water, sewer, electricity, and telephone Moderate descending slope from northwest to southeast, near grade with access Cleared Based on observations of existing and surrounding improvements, soils appear to be suitable for development None noted on KPB Wetland Mapper Zone X, an area outside the 0.2% annual chance floodplain The existence of any hazardous material or other type of environmental contamination, which may or may not be present on the property, was not observed by the appraisers nor do the appraisers have any knowledge of the existence of such substances. Our value conclusion assumes that the property is free of environmental and hazardous contaminants, beyond those that are known to afflict the building (asbestos, lead paint, and mold). Due to arterial frontage and exposure, coupled with a location within the Seward Townsite and CBD zoning, the site is well -suited for commercial development. 21-3551: City of Seward Annex Property, Seward, Alaska 16 426 MacSwain Associates LLC Chapter 5: Improvement Description and Analysis Overview The description and analysis that follows is based on observations of the appraised property during the July 8, 2021 property inspection. It provides the basis for determining the property's highest and best use and helps in identifying and selecting comparables suitable for analysis. However, this description and analysis should not be misconstrued as an engineering report. A description of the subject building follows with additional details retained on file. Google Earth Aerial (2011) Improvement Subject Description Improvements: The subject building contains 4,396± square feet on the main level with a 3,796± square foot finished basement area. Gross building area is 8,192± square feet. The main level is built out with individual offices and open office area demised with cubicle walls. Additionally, there is a reception area, breakroom, and restrooms. The basement is used for storage with minimal office build out with restrooms, boiler room, and communications room. Constructed in 1950, the actual age of the structure is 71 years. It has been renovated and remodeled over the years; however, has reportedly been condemned due to the 21-3551: City of Seward Annex Property, Seward, Alaska 427 17 MacSwain Associates LLC Construction Type: presence of asbestos, mold, and lead paint. Based on high costs associated with remediating the building's deficiencies, and recognizing the demand for vacant land in Seward, we consider the building to be nearing the end of its economic life. Concrete construction with metal panels Floor Plan Drawn By: KPB f �, I 7 5. 5 72.5 EFP 81 3796 13 8.54 5 49 S3 75.5 10.9 26 13.4 __10.9 - 56 23.5 1 s Fr EF 108 5 18 4396 27.5 10.9 26 13.4 10.9 SS Year Built: Foundation/Floors: 1950 per KPB Poured concrete foundation, floors on main level contain commercial -grade carpet in office areas, basement area has some exposed concrete, with others containing carpet and laminate. 21-3551: City of Seward Annex Property, Seward, Alaska 428 18 MacSwain Associates LLC Roof: Exterior Walls: Interior Finish: Electrical/ Plumbing: Heating/ Mechanical: Fire Protection: Land -to -Building Ratio: Parking: Quality and Condition: Deferred Maintenance: Flat, built-up roof, membrane covering, roof appears to require maintenance, enclosed wood -frame portion provides additional covering, overhangs above rear stairs are contain metal covering. Exterior walls contain stucco over metal panels with vinyl siding also evident Interior walls are textured/painted drywall in office areas. Some storage areas contain unfinished drywall, ceilings are drop tile throughout. The electrical and plumbing systems appear to be adequate for the current use of the building. There is fluorescent lighting throughout. There are two (2) two -fixture restrooms, one per floor. Additional plumbing includes sinks in utility room and basement, drinking fountains. Heating oil -fired boiler, reportedly in need of replacement, baseboard heat throughout both main level and basement, suspended unit heater in basement The building is equipped with a wet sprinkler system on the basement level. The land -to -building ratio is 1.1 to 1, typical of commercial improvements in the CBD district in Downtown Seward City of Seward not require on -site parking in CBD zone; subject lot has three to four on -site parking spaces on the southeast corner and ample street parking along west and north boundaries Quality of construction is average and condition is rated fair. Items disclosed during the property inspection included the need for a new boiler, environmental issues including asbestos, lead paint, and mold, and areas of the foundation subject to water inundation. With the 21-3551: City of Seward Annex Property, Seward, Alaska 429 19 MacSwain Associates LLC Remaining Economic Life: Site Improvements: FF&E: Suitability of Improvements: exception of proposed costs for boiler replacement ($60,000) we were not provided with building remediation costs. The subject building was constructed in 1950, indicating an actual age of 71± years. We estimate an effective age less than actual age, but still nearing the end of its economic life. While the economic life can be extended with additional building upgrades and renovations, we consider razing the property to be more financially feasible. Thus, we conclude the improvements are nearing the end of their remaining economic life. Site improvements consist of gravel on -site parking area, concrete pad, fuel tank, and landscaping Freezers and refrigerators excluded from valuation The subject building is suited for interim use as an office and storage until redevelopment occurs. 21-3551: City of Seward Annex Property, Seward, Alaska 430 20 MacSwain Associates LLC Chapter 6: Highest and Best Use Analysis Overview The parcel is located within the City of Seward, subject to zoning regulations. Zoning is CBD, Central Business District. According to the City of Seward Zoning Code, this designation: Provides for an area of convenient, attractive, concentrated commercial development primarily intended for retail, financial, entertainment and professional services occurring within enclosed structures. Regulations applying to this zone are designed to encourage a compact group ofbusinesses ofthe type which are mutually beneficial and located close enough together to encourage walk-in trade. Highest and Best Use The CBD District allows a wide variety of uses, consisting of As Though Vacant commercial, residential, institutional, or industrial development alternatives. Some uses require administrative or conditional use permits. The appraised site consists of three rectangular -shaped lots measuring 30'X 100'. The 9,000± square foot corner site has 100± feet of frontage on Adams Street and 90± feet of frontage on Fifth Avenue and the alley. The site slopes gently from northwest to southeast and is near access grade. All public utilities are available. Surrounding development varies; however, commercial development including restaurants, lodging facilities, and retail are evident. The new City of Seward Community Library & Museum is located just to the east of the subject and City offices are situated to the northwest. Determining the specific land use alternative that maximizes productivity is a difficult analytical task. Based on corner arterial frontage, a location within the prime commercial area of Seward, commercial development is considered financially feasible and is the highest and best use of the property, as vacant. Highest and Best Use As Vacant Commercial Development Highest and Best Use The subject improvement was originally constructed as a co-op grocery as Improved store and was long used as the Seward library. After completion of the new City of Seward Community Library & Museum, the subject improvement was converted for City office use on the main level, with the Food Bank utilizing a portion of the basement for storage. The improvement was constructed in 1950 per KPB and is in fair condition. 21-3551: City of Seward Annex Property, Seward, Alaska 21 431 MacSwain Associates LLC Reportedly, the structure is afflicted by environmental conditions including asbestos, lead paint, and mold. In its current condition, the existing improvements could not generate sufficient income to attract potential buyers for continued use in perpetuity. The capital expenditure required to rehabilitate the structure likely renders this alternative financially unfeasible. Increasing land values and diminishing supply of prime sites in Downtown Seward has created external obsolescence. Based on the site value, property redevelopment with a new commercial building is the only financially feasible use. Market evidence in Downtown Seward supports this conclusion. The former video store property immediately to the south was purchased in 2019, and the improvement was subsequently razed for site redevelopment. Moreover, the subject building was reportedly considered for a remodel in order to accommodate the new City of Seward Community Library & Museum. Instead, the decision was made to construct the building on the adjacent site, rather than rehabilitate the former library building. The reported construction cost for the new project was $7.4 million when the project was planned. Ultimately, the actual costs were reported to exceed $20 million. Consequently, we classify the subject property as an interim -use. However, as an interim -use property, sufficient income could be generated over the interim period to offset holding costs. Based on the foregoing, we conclude that the highest and best use, as improved, is an interim -use property used primarily for office, with some storage uses. Highest and Best Use Conclusion As Improved — Interim -Use (Office and Storage) 21-3551: City of Seward Annex Property, Seward, Alaska 22 432 MacSwain Associates LLC Chapter 7: Property Valuation Overview Our conclusion of highest and best use requires a land valuation, an analysis of interim income potential, and an estimate of demolition costs. Therefore, we do not prepare cost approach and sales comparison approach for improved properties. However, we did collect and analyze cost and improved sales data to determine highest and best use. The land sales comparison approach is a systematic procedure of estimating the market value by comparing it directly to property sales afforded similar physical character. The approach is founded on the principle of substitution theorizing value is a function of a knowledgeable investor's (buyer) intent to pay no more for a specific property than the cost of acquiring an alternative property offering similar utility (economic satisfaction). Comparative Market Our sales search focused on vacant land with similar zoning, physical, Analysis and economic character to the subject, located in the immediate neighborhood. This search criteria produced three sales in the immediate vicinity and two additional sales located on the north end of the Seward Townsite. The sales transpired between 2017 and 2021, including a current pending sale. Four sales contain CBD zoning while one is zoned AC, Auto Commercial. The land sales we relied upon are listed in the table below. Additional details of the comparables are retained on file. Comparable Land Sales No. Location Zone Sale Date Sale Price Size (SF) Price/ SF 1 Southwest corner of Fourth Avenue and CBD 7/21 $445,000 8,763 $50.78 Washington Street (pending) 2 Northwest comer of Van Buren Street and AC 9/19 $140,000 6,534 $21.43 Fourth Avenue 3 Northwest comer of Fourth Avenue and D CBD 6/19 $350,000 14,139 $24.75 Street 4 West side of Fifth Avenue between Adams CBD 2/19 $175,000 3,876 $45.15 and Washington Street 5 Northwest comer of Railway Avenue and CBD 5/17 $300,000 5,772 $51.98 Fourth Avenue __ __ Southeast corner of Adams Street and CBD 7/21 -- -- 9,000 -- -- Fifth Avenue (subject) 21-3551: City of Seward Annex Property, Seward, Alaska 23 433 MacSwain Associates LLC Elements of The elements of comparison that have the greatest influence on market Comparison behavior and the price paid for Seward land is location, zoning, utilities, access, easements, topography, size differential, shape, and vegetation/clearing. Comparative Land Analysis Pending Land Sale 1 Land Sale 1 is a pending sale of a commercial site located on the southeast corner of Fourth Avenue and Washington Street. The site contains 8,763 square feet and zoning is CBD, Central Business District. Frontage is on three streets plus the alley. The site gently slopes from northwest to southeast and is near grade with surrounding streets. It has been completely cleared, graded, and gravel filled and is bordered by a small fence. Available public utilities include water, sewer, electricity, and telephone. The property was exposed to the market for over 500 days, originally listed for $500,000. The pending sale price of $445,000 indicates a unit value of $50.78 per square foot. By comparison, Land Sale 1 is rated superior in terms of quality of frontage and topography, but inferior in terms of shape. The net adjustment is downward, indicating a unit value less than $50.78 per square foot for the subject land. Land Sale 2 Land Sale 2 is the September 2019 of a commercial site located on the northwest corner of Van Buren Street and Fourth Avenue, approximately 1,000 feet south of the Seward Small Boat Harbor. The site contains 6,534 square feet and is zoned AC, Auto Commercial. The lot is generally level and near grade with surrounding streets and properties. Available public utilities include water, sewer, electricity, and telephone. At the time of sale, the lot was used for storage. It was not listed for sale through a Broker but the seller's initial asking price was $200,000. The purchase motivation was for assemblage with the adjacent site for construction of the Seward Gateway Hotel. The sale price of $140,000 indicates a unit value of $21.43 per square foot. Comparatively, Land Sale 2 is superior in terms of topography and size differential. Overriding upward adjustments are necessary for easements and inferior location away from the prime commercial area of the Seward Townsite and outside of the Small Boat Harbor Boardwalk area. Overall, an upward adjustment is necessary, indicating a unit value greater than $21.43 per square foot for the subject land. 21-3551: City of Seward Annex Property, Seward, Alaska 24 434 MacSwain Associates LLC x ,r ,�. Land Cglp I Land Sale 3 is the June 2019 sale of a commercial site located on the northwest corner of Fourth Avenue and D Street, near the intersection of Ballaine Boulevard. The site consists of two lots totaling 14,139 square feet and is zoned CBD, Central Business District. It is generally level and near grade with surrounding streets and properties. Available public utilities include water, sewer, electricity, and telephone. At the time of sale, the property was used as a storage yard as the site was fully fenced with chain - link plus three -strand barbed-wire and security gates. The purchase motivation was to fulfill boat storage needs. The sale price of $350,000 indicates a unit value of $24.75 per square foot. Downward adjustments are required for topography and site improvements. Conversely, location away from the prime commercial core of Seward necessitates a substantial upward adjustment. An additional upward adjustment is necessary for size differential. Overall, we rate this sale inferior, indicating a unit value greater than $24.75 per square foot for the subject land. 21-3551: City of Seward Annex Property, Seward, Alaska 25 435 MacSwain Associates LLC Land Sale 4 Land Sale 4 is the February 2019 sale of a commercial site, which was improved with an older structure nearing the end of its economic life. - — The property is located on the west side of Fifth Avenue between Adams ,= Street and Washington Street. Containing 3,876 square feet, zoning is CBD, central business district. The site moderately slopes from north E `^'� to south and is near grade with Fifth Avenue. Publicly available utilities dEI°� include water, sewer, electricity, and telephone. The property was exposed to the market for 308 days, originally listed for $325,000 and subsequently reduced to $179,000. The sale price of $160,000 requires an upward quantitative adjustment of $15,000 to reflect the demolition cost of the older structure. Thus, the adjusted sale price of $175,000 indicates a unit value of $45.15 per square foot. Comparatively, Land Sale 4 is rated similar, indicating a unit value approximating $45.15 per square foot for the subject land. I and Cah. 4%- Land Sale 5 is the May 2017 sale of a commercial site located on the far, northwest corner of Railway Avenue and Fourth Avenue. At the time "W9 riof sale, the site was comprised of three lots approximating 5,772 square FV- feet. The trapezoidal shaped site has frontage on Railway Avenue and Fourth Avenue and slopes gently downward from north to south. Zoning is CBD, Central Business District. Public utilities available include water, sewer, electricity, and telephone. The purchase IMOL 2 motivation was to assemble with the adjacent restaurant property and construct a deck. Subsequently, the site was replatted with the adjacent restaurant site. The sale price of $300,000 indicates a unit value of $51.98 per square foot. By comparison, this sale is rated inferior in terms of shape, but superior in terms of quality of frontage and size differential. The net adjustment is downward, indicating a unit value less than $51.98 per square foot for the subject land. 21-3551: City of Seward Annex Property, Seward, Alaska 26 436 MacSwain Associates LLC Reconciliation of Presented below is a rating grid and analysis of the land sales used in Comparative Market comparative analysis. Analysis Land Sale No $/SF Rank Net Adjustment 5 $51.98 Superior 1 $50.78 Superior 4 $45.15 Similar -- -- -- -- -- -- -- -- Subj ect -- -- -- -- 3 $24.75 Inferior 2 $21.43 Inferior T The comparable transactions indicate a unit value range from $21.43 to $51.98 per square foot. Land Sales 2 and 3 are rated inferior, indicating a unit value greater than $24.75 per square foot. Conversely, Land Sales 1 and 5 are rated superior, indicating a unit value less than $50.78 per square foot. Moreover, Land Sale 4 is rated similar, indicating a unit value approximating $45.15 per square foot. After considering the necessary adjustments, we estimate the unit value of the appraised site approximates $45 per square foot, which develops the following. 9,000 SF x $45/SF = $405,000 Based on the preceding analysis, market value of the appraised land, as of July 8, 2021, is estimated as follows. Estimated Land Value $400,000 (R) Present Value of Interim Income from Improvements The contributory value of the interim -use improvements is estimated by discounting projected net operating income to present value. We note that estimating the projected interim -use period of the property is difficult and would likely vary among developers. We anticipate a relatively short holding period as a buyer of this type of property is likely to commence development imminently. We anticipate a two-year holding period is sufficient to plan and design a development, acquire permitting and contractors, and demolish existing improvements. During this two-year period, it is a reasonable expectation a property 21-3551: City of Seward Annex Property, Seward, Alaska 27 437 MacSwain Associates LLC owner / developer would attempt to lease out the property to offset holding costs. We utilize market rent to project income as the subject building is primarily owner -occupied with a portion of the basement leased to the Food Bank, which we consider to be anon arm's-length agreement. We reviewed lease data from several properties in Seward, including office, storage, and retail space. The rent comparables collected indicate a wide range from $0.78 to $3.07 per square foot, per month, primarily on full - service bases. After making the necessary adjustments, the rental rates support a blended rate of $1.55 per square foot, per month, which is based on $2.25 per square foot per month for the main level and $0.75 per square foot for the basement area, both on a full -service bases. This equates to an annual revenue of $152,400±. Typical vacancy rates in Seward reported by Brokers hover in the range of 3% to 8%. Published studies of vacancy rates in the Kenai Peninsula Borough are scarce, especially since the KPB ceased their economic and financial publications. The short-term nature of the interim period increases difficulty in securing tenancy. Therefore, we utilize a higher vacancy rate, or 10% of potential gross income. This results in an effective gross income of $137,160. After deducting estimated property owner expenses (management, taxes, utilities/heating fuel, insurance, snow removal), the estimated net operating income is $101,600 (based on operating expense ratio range of 25% to 30%). Owner expenses include management, property taxes, insurance, utilities and heating fuel, and minor maintenance / snow removal. We note, an expense category for major maintenance and reserves is not necessary as a property owner would not make capital expenditures in a building shortly prior to razing. The net operating income projection of $101,600 represents the cash flow for Year 1 and Year 2 of the holding period. Next, we analyze the cost of demolition, which represents a negative cash flow in Year 2. Cost of Demolition The appraisers have reviewed and analyzed comparable demolition costs retained on file. The comparable demolition cost data has a wide range from $6 to $20 per square foot with the upper end reflecting properties with known hazardous materials on site. Further, we have also interviewed Alaska Demolition regarding the cost to demolish similar structures. They indicated the general cost to remove properties similar to the subj ect range from $10 and $15 per square foot of building area, and indicated demolition costs for buildings with known asbestos are typically double those without, or $20 to $30 per square foot. Due to the subject building's known environmental factors, location, and 21-3551: City of Seward Annex Property, Seward, Alaska 28 438 MacSwain Associates LLC type, we estimate a mid -range demolition cost or $25 per square foot. This equates to a demolition cost of $204,800 for the subject building. We anticipate demolition costs to increase by the end of the holding period. We consider a 2% to 4% annual increase to be reasonable, which results in a demolition cost range of $213,074 to $221,512. We reconcile with aprojected demolition cost of $215,000. Conclusion of Present The present value of the improvements is based on two years of interim Value of income represented by positive cash flows in Year 1 and Year 2 of the Improvements holding period. The cash flow for Year 1 is simply the income estimated on Page 28 of $101,600. The Year 2 cash flow consists of two figures: the same $101,600 positive cash flow, and the demolition cost of $215,000, which is a negative cash flow. Combining these figures results in a negative cash flow of $113,400 for Year 2. Cash Flow Period Cash Flow Year 1 $101,600 Year 2 - $113,400 Our projection uses a discount range between 10% and 15% to discount the cash flows in the holding period. A 10% discount rate yields a present value of negative $1,355, while a 15% discount rate yields a present value of positive $2,601. Therefore, an investor would consider the value attributable to the interim income, and the cost of demolition to offset. Conclusion of Market Because the value of the improvements is offset by demolition, the Value market value of the property is equal to our opinion of the market value of the subject land. In conclusion, it is our opinion the market value of the subject's unencumbered fee simple estate as of July 8, 2021 is $400,000. Estimated Market Value of Subject Property $400,000 21-3551: City of Seward Annex Property, Seward, Alaska 29 439 �rrnrmr�mm !L1i; MacSwain Associates LLC Assumptions and Limiting Conditions This appraisal is subject to the following assumptions and limiting conditions. 4 No responsibility is assumed for the legal description provided or for matters pertaining to legal or title considerations. Title to the property is assumed to be marketable unless otherwise stated. 4 The property is appraised free and clear of all liens or encumbrances unless otherwise stated. 4 The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. 4 All maps, plot plans, and other illustrative material are believed to be accurate, but are included only to help the reader visualize the property. 4 It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discover them. 4 It is assumed the property is in full compliance with all applicable federal, state, and local environmental regulations and laws unless the lack of compliance is stated, described, and considered in the appraisal report. 4 It is assumed the property conforms to all applicable zoning, land use regulations, and platting restrictions unless the nonconformity is identified, described, and considered in the appraisal report. 4 Possession of this report, or a copy thereof, does not carry with it the right of publication. 4 The appraisers, by reason of this appraisal, is not required to give consultation or testimony or to be in attendance in court with reference to the property in question unless arrangements have been previously made. 4 Neither all nor any part of the contents of this report shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraisers. 4 The existence of any hazardous material or other type of environmental contamination, which may or may not be present on the property, was not observed by the appraisers nor do the appraisers have any knowledge of the existence of such substances, with the exception of known asbestos and lead paint. However, the presence of any additional substances may affect the value of the property. Therefore, the client is urged to retain an environmental assessment for discovery and evaluation. 21-3551: City of Seward Annex Property, Seward, Alaska EM MacSwain Associates LLC Statement on COVID-19 The appraisal report is subject to the following language. 4 This appraisal was performed following public awareness that COVID-19 was affecting residents in the United States. At the time of the appraisal, COVID-19 was having widespread health and economic impacts. The effects of COVID-19 on the real estate market in the subject neighborhood were not yet measurable based on reliable data. The analyses and value opinion in this appraisal are based on the data available to the appraiser at the time of the assignment and apply only as of the effective date indicated. No analysis or opinions contained in this appraisal should be construed as predictions of future market conditions or value. 21-3551: City of Seward Annex Property, Seward, Alaska Ezy: MacSwain Associates LLC 4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503 Appraiser: Alex Kleinke State of Alaska, Certified General Real Estate Appraiser — License 4148873 Education: Bachelor of Business Administration, Finance, University of Alaska Anchorage (2009) Master of Business Administration (MBA), University of Alaska Anchorage (2012) Professional Experience: 2009 to Present — MacSwain Associates LLC Real estate appraiser of all property types throughout Alaska including commercial, industrial, land, rights -of -way, and special-purpose properties. Appraisals performed for financing, right-of-way acquisitions, conservation easements, leasing, insurance, taxation, estate planning, investment analysis, and buy -sell decisions. Appraisal Education: The following is a list of recently completed appraisal courses and seminars. 2021 Analyzing Operating Expenses by the Appraisal Institute, Online 2021 Business Practices and Ethics by the Appraisal Institute, Online 2020 7-Hour National USPAP 2020-2021 Update Course by the Appraisal Institute, Anchorage, AK 2017 Business Practices and Ethics by the Appraisal Institute, Online 2017 7-Hour Equivalent USPAP Update Course by the Appraisal Institute, Online 2016 Advanced MarketAnalysis and Highest and Best Use by the Appraisal Institute, Chicago, IL 2016 General Sales Comparison Approach by the Appraisal Institute, Chicago, IL 2015 Real Estate Finance, Statistics, and Valuation Modeling by the Appraisal Institute, San Diego, CA 2015 General Report Writing and Case Studies by the Appraisal Institute, Las Vegas, NV 2015 General Income Approach Parts I and II by the Appraisal Institute, San Diego, CA 2013 The Discounted Cash Flow Model: Concepts, Issues, and Apps. by the Appraisal Institute, San Diego, CA 2013 General Appraiser Site Valuation and Cost Approach by the Appraisal Institute, Fort Lauderdale, FL 2012 General Market Analysis and Highest and Best Use by the Appraisal Institute, San Diego, CA 201115-Hour National USPAP Course by the Appraisal Institute, Anchorage, AK 2010 Basic Appraisal Procedures by the Appraisal Institute, Anchorage, AK 2010 Basic Appraisal Principles by the Appraisal Institute, Anchorage, AK Sample of Significant and Project Assignments: 2020-21 — Eight right-of-way appraisals for Knik-Goose Bay Road Reconstruction Project 2020 — 43 City of Seward Lease Parcels including commercial, industrial, and marine -type properties 2020 — 41 City of Kenai Lease Parcels including aviation, commercial, industrial, and marine -type properties 2019 — City of Kodiak Lease Parcels including aviation and communication sites, seaplane base, and shipyard 2018 — Fractional interest of land and sandwich leases for Anchorage hotel and fuel station properties 2017 — Pacific Spaceport Complex, market rent of launch complex facilities within PSCA on Kodiak Island 2016-2017 — Provided insurable value project appraisals for properties in Utgiagvik, Dillingham, Iliamna, Kotzebue, Nome, Cordova, Naknek, Angoon, Haines, Hoonah, Juneau, Kake, Anchorage, Bethel, and Yakutat 2015 — 40 City of Seward Lease Parcels including commercial, industrial, and marine -type properties 2015 — 97 City of Kenai Lease Parcels including aviation, commercial, industrial, and marine -type properties 2015 — Assisted with cost estimate to acquire lands to develop proposed AKLNG from Pt. Thomson to Nikiski 2014-2020 — 50+ Right-of-way appraisals for Parks Highway MP 48.8 to 52.3 Reconstruction Project 2014 — Assisted with project management and appraisals of Nikiski properties for Alaska LNG acquisitions 2012 — Assisted in the income analysis portion of the Trans Alaska Pipeline System (TAPS) 2010-2021 — Alaska Railroad Corporation (ARRC) land lease appraisals in Anchorage, Seward, and Whittier Professional Affiliation: Practicing Affiliate — Appraisal Institute ffense�:1 EState of Alaska Effective: 512312021 Expires:0613012023 Department of Commerce, Community, and Economic Developme Division of Corporations, Business, and Professional Licensing Board of Certified Real Estate Appraisers Licensee: ALEXANDER H KLEINKE License Type: Certified General Real Estate Appraiser Status: Active Commissioner: Julie Anderson MacSwain Associates LLC 4401 Business Park Boulevard, Suite 22, Anchorage, Alaska 99503 Appraiser: Steve MacSwain, MAI Member of Appraisal Institute - No. 5700 State of Alaska, Certified General Real Estate Appraiser - No. 42 Professional Experience: 1986 to Present - MacSwain Associates LLC 1976 to 1986 - Appraisal Company of Alaska - President 1970 to 1975 - Real Estate Services Corporation — Appraiser 1969 to 1970 - State of Alaska Department of Highways - Right of Way Agent Real estate appraiser and consultant of all property types throughout Alaska including commercial, industrial, subdivisions and special-purpose properties. Appraisals have been performed for financing, leasing, insurance, condemnation, taxation, property damages, investment analysis, and buy -sell decisions. Appraisals include valuation of both real property and business enterprises. Professional experience totals 49 years. Life-long Alaskan resident of Alaskan Native descent. Education: Bachelor of Business Administration, Finance (1969), University of Alaska Fairbanks Appraisal Education: The following is a list of completed appraisal courses and seminars. 2021 Cool Tools: New Technologyfor Real Estate Appraisers by the Appraisal Institute 2021 Desktop Appraisals (Bifurcated, Hybrid) and Evaluations by the Appraisal Institute 2021 Hot Topics & Myths in Appraiser Liability by LIA Administrators & Insurance Services 2020 Uniform Standards of Professional Appraisal Practice Update by the Appraisal Institute 2019 How Tenants Create or Destroy Value: Leasehold Valuation and its Impact on Value by the Appraisal Institute 2017 — Appraising Environmentally Contaminated Properties by the Appraisal Institute 2017 Residential & Commercial Valuation of Solar by the Appraisal Institute 2017 Right of Way Acquisition for Pipeline Projects by the International Right of Way Association 2015 Litigation Appraising: Specialized Topics and Applications by the Appraisal Institute 2015 Business Practices and Ethics by the Appraisal Institute 2013 Complex Litigation Appraisal Case Studies by the Appraisal Institute 2013 Uniform Appraisal Standards for Federal Land Acquisitions (Yellow Book) by the Appraisal Institute 2012 Appraisal Curriculum Overview by the Appraisal Institute 2010 Reviewing Appraisals in Eminent Domain by the International Right of Way Association 2010 Commercial Appraisal Engagement and Review Seminar for Bankers and Appraisers by the Appraisal Institute 2009 — The Appraiser as an Expert Witness: Preparation and Testimony by the Appraisal Institute 2009 Attacking and Defending an Appraisal in Litigation by Whitmer Education 2008 Uniform Standards of Professional Appraisal Practice by the Appraisal Institute 2007 Business Practices and Ethics by the Appraisal Institute 2007 Eminent Domain Law for Right of Way Professionals by the International Right of Way Association 2007 Appraisal Review for Federal Aid Programs by the International Right of Way Association 2007 Analyzing Operating Expenses by the Appraisal Institute 1969-2006: Numerous appraisal classes pertaining to principles, income capitalization, cost analysis, sale comparison approach, and highest and best use analysis by the Appraisal Institute, Society ofReal Estate Appraisers, International Right -of -Way Association, International Association of Assessing Officers, and Marshall Valuation Service Membership and Organizations: Member of Appraisal Institute — No. 5700, International Right of Way Association (IRWA), and Building Owners and Managers Association (BOMA) Public Service: Past Chairman of the State Board of Certified Appraisers Past Member of Board of Equalization, Municipality of Anchorage, National Experience Review Committee of the Appraisal Institute, and Regional Ethics and Counseling Panel of the Appraisal Institute Past President of Alaska Chapter 57 of the Appraisal Institute Significant Assignments: 4 Appraised Pacific Spaceport Complex -Alaska (PSCA) land and facilities for Alaska Aerospace Corporation on Kodiak Island. 4 Appraised proposed LNG Pipeline, a FERC-regulated 860-mile pipeline transporting liquefied natural gas. 4 Appraised the Trans -Alaska Pipeline System, a FERC-regulated 800- pipeline that transports crude oil from Prudhoe Bay to Valdez, for TAPS ownership. 4 Appraised remote lands (65,000± acres) owned by three Native corporations damaged by the Selendang Ayu grounding and subsequent oil spill. 4 Appraised Calais Company, Inc., a real estate holding company consisting of 39 commercial parcels in Anchorage. 4 Principal real estate consultant and expert witness for all lands affected by the Exxon Valdez oil spill. Project involved over 2,000,000 acres of remote land and nearly 2,000 private property owners. 4 Appointed as a representative of a three -member panel that analyzed and valued over 1,000,000 acres and 8,000 parcels for the Mental Health Lands Settlement. Contract assessor for the North Slope Borough, Kodiak Island Borough, City of Nome, and the City of Valdez. Represented Seibu Alaska, Inc. (Alyeska Resort and Alyeska Prince Hotel) in preparing of their property tax appeal with the Municipality of Anchorage that resulted in a $65 million reduction in assessed value. 4 Appraised submerged tideland parcels and wetlands parcels located in Womens Bay on Kodiak Island for the purpose of an exchange between Koniag, Inc. and U.S. Fish and Wildlife Service. 4 Appraised Common Carrier Pipeline right-of-ways leased and operated by BP Transportation Alaska and ConocoPhillips Alaska. 4 Appraised 3,600 acres consisting of the former Adak Naval Air Station and Submarine Base conveyed to the City of Adak and the State of Alaska. Expert Witness Experience: Steve MacSwain, MAI is qualified as an expert witness in both the United States Federal Court and the State of Alaska Superior Court. Steve has testified as an expert witness in State and Federal courts. In addition, Steve has testified as expert witness in numerous Alaskan municipal tax courts, public hearings, and depositions on matters related to real property. Arbitrator Experience: Appointed a Master by the Superior Court of Alaska and Municipality of Anchorage to serve as an arbitrator in determining just compensation. APRG42State of Alaska ENectivtive: Bi8t2021 f2021 Ekpires: 0513W2023 Department of Commerce, Community, and Economic Development Division of Corporations, Business, and Professional Licensing Board of Certified Real Estate Appraisers Licensee. STEVEN JAMES MACSWAIN License Type: Certified General Real Estate Appraiser Status: Active Comrnhssioner: Julie Anderson COUNCIL AGENDA STATEMENT Meeting Date: September 13, 2021 To: City Council From: Christy Terry, Mayor Agenda Item: Review the joint letter concerning the Port of Alaska from the Alaska Mayors and Chambers of Commerce, and authorize the Mayor to sign on behalf of the City of Seward BACKGROUND & JUSTIFICATION: The `Port of Anchorage' was rebranded to the `Port of Alaska (POA)' in 2017 in an effort to emphasize its importance to the State. The POA provides critical transportation infrastructure to the citizens of Anchorage and to a majority of the citizens of the State of Alaska both within and beyond the Railbelt. Seventy-four percent of all the waterborne freight and ninety-five percent of the refined petroleum products entering the state through Southcentral Alaska ports is shipped through the Port of Alaska. This includes 100 percent of the jet fuel supplied to Joint Base Elmendorf- Richardson and approximately 66 percent of the jet fuel for Ted Stevens Anchorage International Airport. Our local Port of Seward, Harbor Facilities and Seward Marine Industrial Center are also essential components of Alaska's transportation infrastructure. The Seward Port is an important year-round, ice -free port, deep draft freight port with all-weather air, road, and rail access, with connectivity to Alaska's major population centers. The close proximity to the population center of Alaska, the Port of Seward is about 125 miles south of Anchorage and is the southern terminus of the Alaska Railroad. All these items make Seward a valuable and crucial marine contingency component for our community, Statewide food and merchandise security, a strategic national military and research destination, and lifeline to marine ports in Western Alaska. However, Anchorage still remains the largest Port in Alaska and Seward's Citizens depend on the companies operating there for needed items. Mayor Dave Bronson is seeking our support for the attached letter. He has pledged his own support for Seward's dock expansion plans and recognizes food security and contingency planning for the State, including his own constitutions, must also include Seward. INTENT: Provide our support for a needed project that transcends multiple communities and benefits all the State of Alaska including direct benefits to the Citizens of Seward. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): X Strategic Plan (document source here) : X Other (list): X FISCAL NOTE: No fiscal impact. Approved by Finance Department: ATTORNEY REVIEW: Yes No X Not Applicable RECOMMENDATION: Motion: Approve Mayor Terry's signature on the joint letter concerning the Port of Alaska on behalf of the City of Seward. CLf/ Alaska Mayor's and Chambers of Commerce Joint Letter Concerning the Port of Alaska TO: The Honorable Pete Buttigieg, US Department of Transportation 1200 New Jersey Ave, SE Washington DC 20590 SUBJECT: Port Infrastructure Funding Date: August 11, 2021 Dear Secretary Buttigieg, We write to you today to request your personal assistance in securing $750 Million from the forthcoming Bipartisan Infrastructure bill for critical repairs needed at the Port of Alaska. The Port of Alaska is the primary port serving the economic, national defense, and emergency response and disaster recovery for the state. Originally built in the 1950's, the port began operations in 1961. The port serves five primary customer bases: general cargo, bulk petroleum, dry goods, cruise ships, and has a dry barge landing area. A Port of Alaska Modernization Program began in 2016 to expand capabilities to meet current industry standards, but also to replace the aging infrastructure of the original dock area. Located along the Knik Arm, at the upper end of the Cook Inlet, the port experiences extreme tidal activity. This, combined with brackish water, high silt content, and the presence of a biological component common to northern latitudes has caused extensive corrosion and deteriorated the primary dock support poles. Current engineering assessment is that the damage to the wharf piles is severe and replacement is necessary within the next few years to avoid collapse of the dock area. The port has initiated design for replacement of the deteriorated dock support poles. However, project estimates exceed $1.0 Billion, for which the Municipality of Anchorage is requesting this financial support through the Bipartisan Infrastructure bill currently being advanced through Congress. Located in Southcentral Alaska, with both road and railroad connections to interior Alaska, as well as air cargo connections across the state and pipeline connections to Joint Base Elmendorf-Richardson, Ted Stevens International Airport, and the Marathon refinery in Nikiski, the Port of Alaska is the primary in -bound entry point for food, pharmaceuticals, 448 refined petroleum, and supplies for nearly eighty percent of the state's population. Twenty percent of this cargo is destined for the Department of Defense installations as well. With only about a five to seven days' supply of food in most Alaskan communities, any disruption to the port operations would have a devastating effect on the residents of the state and could quickly create a humanitarian crisis. The Port of Alaska is one of seventeen commercial port's in America specifically identified in the National Port Readiness Network, providing national security support for the major force deployment of Alaskan based military forces. Alaska serves a strategic location for the deployment of military forces, especially in regard to the Indio -Pacific region. Maintaining a reliable port for rapid deployment of military forces is essential to our nation's secu rity. The Port of Alaska is also a strategic port for delivery of petroleum products to the state, which supports both surface transportation and military and commercial aviation fuel requirements. The Ted Stevens Anchorage International Airport is one of the busiest air cargo facilities in the world, providing the most direct connections between North America and Asia. In the first quarter of this year, the airport ranked as the world's fourth busiest air cargo hub. The majority of aviation fuel provide to the airport comes through the Port of Alaska. Ensuring a consistent and reliable fuel supply to the airport is critical to the ability to support trade between the United States and Asian nations. Any interrupted delivery of petroleum products through the Port of Alaska would create a serious commerce disruption that would impact the entire nation. Since the Port of Anchorage provides the primary entryway into Alaska for the majority of commodities used by the majority of Alaskans, it is imperative the port infrastructure be able to sustain any significant impacts associated with a potentially major earthquake, as well as the tremendous impacts of the currents and silty conditions of the Knik Arm, to remain operational. Additionally, the Port of Alaska has developed into a terminus for commercial passenger cruise operations, complimenting the cruise ship operations at both Whittier and Seward. Therefore, any degradation to the dock and pier area would have a significant impact on the tourist industry of Southcentral Alaska. We recognize Alaska has numerous other port and dock infrastructure requirements across the state and we are continually working with both state and federal agencies to identify the necessary funds to complete these numerous repairs and improvements. However, the Port of Alaska is a statewide asset that serves the broader population, as well as other national interests. It is with that understanding that we have joined together in this letter to request your support in securing the necessary funds to repair the Port of Alaska before it experiences a catastrophic failure that would have statewide consequences. The Alaska Congressional delegation supports expedited repairs to the Port of Alaska. Anchorage Mayor Bronson has briefed the delegation on the potential impacts to both the state and nation should the Port of Alaska have a catastrophic failure. By this letter, we are asking for your engagement in securing $750 Million from within the $17.0 Billion being set aside for Ports and Waterways in the Bipartisan Infrastructure bill. 9L9 We understand you may be visiting Alaska later this month. Should your schedule permit, we would encourage you to tour the Port of Alaska to see first-hand the deteriorating conditions of the dock and pier areas. Please contact Anchorage Mayor Dave Bronson direct if you have the opportunity to visit the port. Thank you for your consideration of this request. We look forward to working with you to ensure the ports of Alaska continue serving the needs of our state and great nation. Sincerely, Mayor Dave Bronson Mayor Bryce Ward Mayor Jim Matherly Municipality of Anchorage Fairbanks North Star Borough City of Fairbanks Mayor Charlie Pearce Mayor John K. Handeland Mayor Christy Terry City of Kenai City of Nome City of Seward Mayor Ken Castner Mayor Joe Vinatieri Mayor Jeremy O'Neil City of Homer City of Whittier City of Valdez Mayor Vern Halter Mayor Glenda Ledford Mayor Edna Devries Matanuska-Susitna Borough City of Wasilla City of Palmer Mayor Bill Roberts Mayor Patricia Branson Kodiak Island Borough City of Kodiak Mayor Vincent M. Tutiakoff City of Unalaska Kati Capozzi Bruce Bustamante Executive Director President and CEO Alaska Chamber of Commerce Anchorage Chamber of Commerce :1616, Jinnel Choiniere Lucas Parker President and CEO President Fairbanks Chamber of Commerce Palmer Chamber of Commerce Jessica Viera Jason Bickling Executive Director Executive Director Wasilla Chamber of Commerce Seward Chamber of Commerce Debbie Rinckey Jenna Lowmaster Executive Director Executive Director Chugiak Eagle River Chamber of Commerce Kodiak Chamber of Commerce Brad Anderson Sharon Anderson Executive Director Executive Director Homer Chamber of Commerce Valdez Chamber of Commerce Brittany Brown Shanon Davis Executive Director Executive Director Kenai Chamber of Commerce Soldotna Chamber of Commerce Marlene Fogarty -Phillips Patty Wilbanks Executive Director Executive Director North Pole Community Chamber of Commerce Girdwood Chamber of Commerce :162 September 2021 October 2021 September 2021 SuMo TuWe Th Fr Th Sa SuMo TuWe Th Fr Sa 1 2 3 4 1 2 5 6 7 8 91011 3 4 5 6 7 8 9 12 13 14 15 16 17 18 10 11 12 13 14 15 16 19 20 21 22 23 24 25 17 18 19 20 21 2223 26 27 28 29 30 24 25 26 27 28 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Aug 29 30 31 Sep 1 2 3 4 12:00pm PACAB Mtg 5 6 7 8 9 10 11 HOLIDAY 7:00pm P&Z Mtg IN 6:15pm HPC (Regular Work Session Meeting) (Council L..ha....m......b..e...rs_a...................... _._._._.. 7:00pm HPC Regular Meeting (Council .ham r 12 13 14 15 16 17 18 12:OOpm PACAB :OOpm CC Special (7:00pm Work Session Meetin (Review the Seward Marine CC Mtg ncil Industrial m r Center (SMIC) Development Plan) 19 20 21 22 23 24 25 6:00pm P&Z Work Session (Ground Truthing and Land Use Table Process).... 26 27 28 29 30 Oct 1 2 5:30pm CC WS - Kick -Off Budget W 7:00pm CC Mtg Chambers Council Calendar 1 9/8/2021 11:51 AM 452 October 2021 November 2021 October 2021 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 1 2 3 4 5 6 3 4 5 6 7 8 9 7 8 9 10 11 12 13 10 11 12 13 14 15 16 14 15 16 17 18 19 20 17 18 19 20 21 22 23 21 22 23 24 25 26 27 24 25 26 27 28 29 30 28 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Sep 26 27 28 29 30 Oct 1 2 3 4 5 6 7 8 9 ELECTION DA� 12:OOpm PACAB 1:00pm Canvass 7:00pm P&Z Mtg Mt Board _.—_._:_:_._._._:- 6:00pm (Regular 6:00pm Meeting TENTATIVE TENTATIVE Budget Work Budget Work Session Session 10 11 12 13 14 15 16 7:00pm CC Mtg 6:00pm 6:00pm (Council TENTATIVE TENTATIVE umbers) .................... Budget Work Bu t W rk Session 6:15pm HPC Join Work Session 7:00pm HPC Re ular 17 18 19 20 21 22 23 HOLIDAY (Alaska 6:00pm P&Z 12:00pm PACAB D Work Session Work Session (Council (Chambers) Chambers) 24 25 26 27 28 29 30 7:00pm CC Mtg (Chambers) 31 Nov 1 2 3 4 5 6 Council Calendar 2 9/8/2021 11:51 AM 453 November 2021 December 2021 November 2021 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 6 1 2 3 4 7 8 9 10 11 12 13 5 6 7 8 9 10 11 14 15 16 17 18 19 20 12 13 14 15 16 17 18 21 22 23 24 25 26 27 19 20 21 22 23 24 25 28 29 30 26 27 28 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Oct 31 Nov 1 2 3 4 5 6 6:00pm P&Z Joint 12:00pm PACAB 6:15pm HPC Work Session - Mtn Work Session HPC (Council (Council Chambers Chambers) 7:00pm P&Z Mtg 7:00pm HPC (Regular Regular Meetin Meeting _ (Council Chamber)__ 7 8 9 10 11 12 13 7:00pm CC Mtg NEO Trainin Online throucih AML HOLIDAY (Council Chambers 14 15 16 17 18 19 20 ....................................................................................Aof r n inA_n.c....h_.ora_m AAMConferencein Anchoraae 6:00pm P&Z 12:00pm PACAB Work Session Work Session (Council (Chambers) _ Chambers) 21 22 23 24 25 26 27 HOLIDAY 7:00pm CC Mt ....... ham b..e.r.. 28 29 30 Dec 1 2 3 4 Council Calendar 3 9/8/2021 11:51 AM 454