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HomeMy WebLinkAbout11142022 City Council Meeting PacketSeward City Council Agenda Facet Monday, November 14, 2022 City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward, Alaska CITY COUNCIL MEETING AGENDA II City Council Chambers, 410 Adams Street Please silence all cell phones during the meeting Mayor Sue McClure Vice Mayor John Osenga Council Member Liz DeMoss Council Member Mike Calhoon 1. CALL TO ORDER Council Member Randy Wells Council Member Kevin Finch Council Member Vacant November 14, 2022 at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL yof SE ct 9� 'Q�ASKf' City Manager Janette Bower City Clerk Brenda Ballou City Attorney Brooks Chandler 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Note: 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 Note: Approval of Consent Agenda passes all routine items indicated by asterisk (*). Consent Agenda items are not considered separately unless a council member requests. In the event ofsuch a request, the item is returned to the Regular Agenda. 6. SPECIAL ORDERS, PRESENTATIONS AND AWARDS A. Proclamations and Awards 1. Congratulating the Seward High School Boys Swim Team for winning Regionals and for placing second at State........................................................................... Pg. 4 2. Recognizing Seward High School Swim Coach Solomon D'Amico for his service and dedication......................................................................................... Pg. 6 B. City Manager Report.............................................................................. Pg. 8 C. City Clerk Report D. City Attorney Report............................................................................. Pg. 63 E. Other Reports and Announcements — None F. Presentations 1. Seward Small Business Development Center (SBDC) Presentation by Kelly Ann Cavaretta. 65 7. CONSENT AGENDA A. Minutes of Preceding Meeting *1. October 19, 2022 City Council Special Meeting. * 2. October 24, 2022 City Council Special Meeting. *3. October 24, 2022 City Council Regular Meeting. *4. October 27, 2022 City Council Special Meeting. *5. November 1, 2022 City Council Special Meeting B. Introduction of Ordinances ............................................ Pg. 66 ........................................... Pg. 68 ........................................... Pg. 70 ............................................ Pg. 80 ........................................... Pg. 82 1. Ordinance 2022-015, Amending The Land Use Plan To Rezone Proposed Tract B, Hemlock Subdivision, From Institutional (Ins) Zoning District To Park (P) Zoning District.... Pg. 85 C. Resolutions 1. Resolution 2022-111, Authorizing The City Manager To Purchase A New Toolcat UW56 From Craig Taylor Equipment Co. To Replace A 2005 Toolcat For A Total Amount $61,052.80 Plus 10% Contingency, For A Total Amount Of $67,158.08, Utilizing Sourcewell RFP Contract 9040319-CEC, And Appropriating Funds ................................. Pg. 102 *2. Resolution 2022-112, Approving the Optional One -Year Extension to the Operating Contract as Amended by Amendment 94 between the City of Seward and Seward City Tours, And Appropriating Funds........................................................................... Pg. 109 *3. Resolution 2022-113, Authorizing The City Manager To Purchase From Southern States, LLC, Two Circuit Switches For The Fort Raymond Substation In A Not -To -Exceed Amount Of $264,100, As Part Of The Infrastructure Work Planned In 2023 To Replace Aging Equipment And Increase The System's Voltage Capacity And Appropriating Funds.Pg. 181 D. Action Memoranda —None E. Other Items —None 8. PUBLIC HEARINGS (Public hearing comments are limited to five (5) minutes per person. After all speakers have spoken, a person may speak for a second time for no more than one (1) minute.) A. Ordinances for Enactment — None B. Resolutions Requiring Public Hearing — None 9. UNFINISHED BUSINESS — None 10. NEW BUSINESS A. Resolutions 1. Resolution 2022-114, Selecting Homer Electric Association as the Preferred Electric Utility to Purchase Seward Electric...........................................................................Pg. 189 B. Action Memoranda 1. Action Memorandum 2022-011, Adopting the Port and Commerce Advisory Board (PACAB) Priorities for the Calendar Year 2023............................................................ Pg. 282 C. Other New Business 1. Presentations from applicants for the city council vacancy; the applicants are Kim Kowalski - Rogers, Suzanne Towsley, and Robert Barnwell; followed by council vote on the appointment. The newly -appointed council member will take their oath and be seated at the dais........ Pg. 287 2. Introduction of Ordinance 2022-016, Amending Seward City Code 15.10.140(B)(49) Definitions, Lodging; 15.10.226(B) Land Uses Allowed, Modifying And Including Additional Regulations Relating To Lodging, Short -Term Rentals; And 15.10.226 Land Uses Allowed Table................................................................................................... Pg. 293 11. INFORMATIONAL ITEMS AND REPORTS (No action required.) A. Boards and Commissions Minutes 1. Planning & Zoning Commission a. August 2, 2022 Regular Meeting........................................................... Pg. 324 2. Historic Preservation Commission a. May 12, 2022 Regular Meeting............................................................. Pg. 330 b. May 16, 2022 Special Meeting............................................................. Pg. 335 3. Port and Commerce Advisory Board B. Other Items 1. Planning & Zoning Commission 2nd and 3rd Quarter 2022 Activity Reports ............. Pg. 337 2. City of Seward 3rd Quarter 2022 Financials.................................................... Pg. 340 3. Veterans Day Proclamation, dated November]], 2022; delivered to the American Legion. 358 12. CITIZEN COMMENTS (There is no sign in for this comment period. Time is limited to five (5) minutes per speaker.) 13. COUNCIL AND ADMINISTRATION COMMENTS AND RESPONSES TO CITIZEN COMMENTS 14. EXECUTIVE SESSION 15. ADJOURNMENT 3 PROCLAMATION WHEREAS, the Seward High School Seahawks Boys Swim Team won the 2022 Northern Lights Conference Region III Boys Swimming & Diving Team Championship for the first time in Seward High School History; and WHEREAS, following the very successful region championship victory, the five boys tied for runner- up at the Alaska State Swim and Dive Championship meet, in a sport without enrollment population classifications; and WHEREAS, the quest for these five young men, representing one of the smallest teams in the Region III championship meet to be more competitive, resulted in them beating nine schools with 66 points, edging out Colony's 64 with 26 boys on their team; and WHEREAS, runner-up Colony had over four times as many participants on the boys side of the competition in Region III championship meet; and WHEREAS, the boys' efforts at the state championship meet earned them 51 points in total, enough to share runner-up trophy winners with Eagle River; and WHEREAS, the 2nd place finish in a non -school enrollment classified sport is one of Seward High School's best such performances, since the state runs of the boys basketball teams of 1950 and 1961; which were also unclassified and ended up with Seward as runner-up; and WHEREAS, Nickolas Ambrosiani, Bengimin Ambrosiani, Jackson Bird, Iver Gates, and Paxton Hill had an exceptional meet for the Seahawks resulting in new best times for all of them individually, as well as their relays; and WHEREAS, Nickolas Ambrosiani, Bengimin Ambrosiani, Jackson Bird, and Paxton Hill at the region meet captured all three school records in the relays; they broke the record they had previously been broken on multiple occasions this season, the 4x100 freestyle relay, by five seconds. They also destroyed the medley relay record by nearly four seconds, along with the 4x50 freestyle relay record by over three seconds; and WHEREAS, first place in 200 Yard Freestyle Relay with 1:30.26 (Ambrosiani, Ambrosiani, Bird & Hill) in Region III championship meet; and WHEREAS, first place in 400 Yard Freestyle Relay with 3:20.21 (Ambrosiani, Ambrosiani, Bird & Hill) in Region III championship meet; and WHEREAS, first place in 200 Yard Medley Relay with 1:40.72 (Ambrosiani, Ambrosiani, Bird & Hill) in Region III championship meet; and WHEREAS, Jackson Bird (SR) at State, swam near his lifetime best in his individual event in his preliminary swim to finish 9th in a time of 1:03.57, less than 0.15 seconds off his best. Took 1st place in Region III Championships in 100 Yard Breaststroke with 1:03.43; and 4 WHEREAS, Nickolas Ambrosiani (JR), swam a new lifetime best in the preliminary round of the 50 freestyle event with a 22.45, advancing him to the finals where he improved another 0.02 to 22.43, placing him 71h at State and earning the team 4 points. Took 2nd place in Region III Championships on 50 Yard Freestyle with 22.69; and WHEREAS, Paxton Hill (SR), swam very near his lifetime best in the preliminary round of the 100 butterfly with a 53.86, advancing him to the finals, where he outswam his seed placement for state to finish 5th and earn the team four points. Took 1st place in Region III Championships in 100 Yard Butterfly with 53.76; and WHEREAS, Bengimin Ambrosiani (JR), swam a lifetime best in the preliminary round of the 100 freestyle with a 49.05, advancing him to the finals where he improved 0.34 seconds to a 48.71. With his new lifetime best of 48.71 in the final at State, Ben earned himself a podium 4th place finish and earned the team five points. Took 3rd place in Region III Championships on 100 Yard Freestyle with 49.64; and WHEREAS, Iver Gates (Freshmen) took 6th place in Region III Championships in 100 yard breaststroke with 1:10.93 ; and WHEREAS, in the 200 yard medley relay, the team of Bengimin in the backstroke, Jackson in the breast stroke, Paxton in the Butterfly, and Nickolas in the freestyle, re -broke their school record from the region championship by 0.59 to place 5th at the state championship meet earning the team eight points; and WHEREAS, in the 400 freestyle relay, the team of Bengimin, Nickolas, Jackson, and Paxton finished in 2nd place by less than 0.10 to Robert Service High School with a time of 3:15.37, which in addition to dropping nearly five seconds off their previously set school record from the region championship meet and earning the team 14 points at the state championship meet; and WHEREAS, in the 200 freestyle relay, the team of Ben, Nick, Jackson, and Paxton emerged from the battle victorious by nearly a second over the next closest team, Robert Service High School. The boys improved on their school record and region championship winning time from the week before by an astounding 1.62 seconds, or an average of a little of 0.4 seconds per leg, earning the team 18 points at the state championship meet; and WHEREAS, this would not have been possible without the guidance of their Coach Solomon D'Amico, who teaches the athletes core principles of improving athletic performance, and who allowed the athletes to take the reins of their journey so they could own their outcomes. NOW THEREFORE I, Sue McClure, Mayor of the City of Seward, Alaska, do hereby congratulate the Seward High School Seahawks Boys Swim Team and congratulate them on their wins at Region and State! Dated this 14$h day of November, 2022 THE CITY OF SEWARD, ALASKA Sue McClure, Mayor StAMAWO PROCLAMATION WHEREAS, Solomon D'Amico is an alum of Seward High School and is the swimming coach; and WHEREAS, Solomon has achieved a winning record against teams that are ten times larger than Seward High School; and WHEREAS, Coach D'Amico is an example of someone who believes that a small school can make it in a big competition, and to never underestimate the power of perseverance; he always encourages his athletes to reach for their goals; and WHEREAS, Solomon D'Amico, was named the region's "Coach Of The Year" in 2021 and 2022 in Region III Boys Swimming & Diving Championship Team at the Northern Lights Conference championships at the Palmer Pool; and WHEREAS, under Coach D'Amico the 2022 boys' swim team won the Region III Championships in Palmer; and WHEREAS, with Coach D'Amico the boys' swim team took second place in the Alaska School Activities Association/First National Bank Alaska Swim & Dive State Championship in Anchorage; and WHEREAS, Solomon D'Amico was the swim coach for Olympic Champion Lydia Jacoby from 2014-2022; and WHEREAS, Solomon D'Amico is scientifically -minded, has an incredible dedication on the pool deck and in the weight room, and has put in thousands of volunteer hours; and WHEREAS, Coach D'Amico's athletes gain an understanding of how important it is to respect and believe in the process of coaching and team work; and WHEREAS, Coach D'Amico is intelligent and is always learning more and bringing his knowledge to the team daily during practices; and WHEREAS, Solomon D'Amico coaches his athletes to work as a team and he raises every member up to their fullest potential; he is a positive influence on our kids and in our community; and NOW THEREFORE I, Sue McClure, Mayor of the City of Seward, Alaska, do hereby recognize and thank Coach Solomon D'Amico for his service and dedication to the students of Seward High School and congratulate him on his many accomplishments. Dated this 14$h day of November, 2022 THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 6 Thank you Coach Solomon D'Amico Swimmers (L-R): Paxton Hill, Iver Gates, Jackson Bird, Nickolas Ambrosiani, Bengimin Ambrosiani FA City of Seward City Manager's Report November 14, 2022 Mayor McClure and Council Members, 2023/2024 Budget The 2023/2024 budget continues to be developed and examined for efficiencies. Questions asked by council will be provided on November 14. The first budget public hearing is November 24, with the second public hearing and budget adoption on December 12, 2022. Public Works Facility Process A project kickoff charette meeting with R&M Engineering and city staff will be held on November 8. Further information regarding meeting outcomes will be provided as they become available. Winter Wonderland City staff continues to work on the Christmas lights and decorations. Weather and staffing permitted, the goal is to have the lighting and decorations in place the week before Thanksgiving. The Chamber of Commerce is coordinating with Chamber members to hold holiday events. More information to follow.... Business Sidewalk Snow Removal The letter provided to business owners concerning snow removal is included with this report. A big thank you to the businesses for their compliance. Pedestrian access to businesses is important during the winter season. Seward Community Recreation Center Funding Options Survey Also included in this report is the results from the follow-up survey concerning the community's thoughts regarding funding for a recreation center. A future meeting will be held to discuss the survey responses. Organizational Core Values Internally, each department is defining their core values, with the goal of developing overarching core values that will be woven into everything we do. These values will be reflected in our hiring, evaluation, and performance practices. I look forward to sharing these values with you. City of Seward Personnel Transactions Prepared by Tammy Nickell, City of Seward Human Resources Manager Separations: Department: Date of Separation: Police Dispatcher Police 10/30/2022 Patrol Officer Police 11/02/2022 Account Tech AP Finance 10/31/2022 New Hires: Department: Date of Hire: Accounting Tech PR Finance 10/31/2022 Internal Promotion Available Full Time Positions: Finance Director Accounting Tech AP Patrol Officer Department: Position Status: Finance Advertising Since 10/05/2021 Finance Advertising Since 10/31/2022 Police Advertising Since 04/20/2022 Police Dispatcher Police Advertising Since 06/28/2022 Dispatch Supervisor Police Advertising Since 08/18/2022 Recreation Assistant SPRD Advertising Since 08/30/2022 Maintenance Mechanic/Operator PW Advertising Since 09/22/2022 Utility Cashier Finance Advertising Since 10/10/2022 Available Seasonal Positions: Department: Position Status: Recreational Program Aide SPRD Advertising Since 07/20/2022 Library/Museum Aide Library Advertising Since 08/15/2022 Winter Park Maintenance Worker SPRD Advertising Since 08/30/2022 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: ❑e artment I Order Date IVendor IDescription I Amount C Tr SHOD I 10i14i2022 N-1 LE-X EQU Dr•:lE\T. \C IShopToo s - Refr Seran. r•Janagemen. 5•;s:em, 1 3.395.00 Thank you, jr City of Seward Department Activity Reports Assistant City Manager Stephen Sowell ➢ Public Works Shop Project: Work is underway to begin the project now that City Council has selected the site and approved the task orders for initial work. R&M Engineering will be on -site the first week of November to conduct test borings and work on the geotechnical investigation. City Administration will provide Council and the Public an update once we have the finalized results. Additionally, Public Works staff and City Administration met with the architects and engineers from R&M Engineering on November 8t" for the project kick-off/charrette. This time will be used to begin work on generating the Concept Drawings, Narrative, and Construction Cost Estimate. ➢ The supplemental survey for the Recreation Center and funding options closed on October 14t". City Administration is in the process of compiling and analyzing the survey responses. Once we have this information finalized, a special meeting with City Council will be scheduled to continue discussing the project. The raw data from the survey are included in this CMR Report (see the attachment). ➢ The US Army Corp of Engineers was on -site in Seward October 25t" and 26t" to continue work on the design and engineering phase of the Lowell Creek Tunnel project. ➢ Seward businesses who are responsible for clearing sidewalks were sent a copy of the attached flyer and letter on October 28t". Our goal is to continue to create a safe and inviting community that welcomes locals and visitors and contributes to a positive shopping experience for business purposes. As we strive for more year-round business development, this is one of the important pieces to continue working on (see the attachment). Having safe and walkable sidewalks is of a benefit to the entire Seward community. ➢ The Animal Shelter project is nearly completed. Work continues on the final "punch list" for the building as well as installation of fixtures and furniture. Some items such as the kennels and cabinets are on order. There are items such as flooring, the dryer vent, and fencing that need to be reinstalled and addressed. ➢ Now that the grant for the Heat Loop project has been submitted, we are just awaiting funding notifications from DOE, which are scheduled to be announced in March 2023. is City of Seward PO Box 167 Seward, Alaska 99664 AIA Sfw* 7fm.. . Dear Seward Business Owner, City Manager's Office Janette Bower, City Manager Phone: 907-224-4012 Email: jbower@cityofseward.net First off, I want to take a moment and wish each of you a Happy Holiday Season! 2022 was certainly a unique and busy year. As the City of Seward looks forward to 2023, 1 want to thank you for all you do each day to make Seward the wonderful place it is to live and work. As Seward continues to grow, the City of Seward organization is working diligently to create a more robust, year-round economy. One of the aspects we hear from citizens and businesses alike is the need to ensure pedestrian access remains open to our local businesses. One key component of that access is ensuring our sidewalks and right of ways are clear of snow and ice. I am sharing the attached City code with all business owners. Please take a moment to read it and understand the obligations of each business. Please also note: it is the responsibility of each owner or occupant to ensure snow and ice are removed in a timely manner. Sincerely, Janette Bower City Manager im Seward City Code Title 13 — Streets and Public Improvements 13.01.025 - Clearing sidewalks of snow and ice. (a) No person having the care, either as owner, an agent of an owner, or occupant of any premises, bordered by a graded or paved sidewalk shall fail to remove promptly any snow which may fall or ice which may form thereon. (b) The approved methods to remove snow and ice from a sidewalk include hand shoveling with light shovels, pushers and brooms or the use of light tractors with blades, brooms or blowers configured so they cannot scrape, ship or otherwise damage the concrete or asphalt sidewalk surface. The snow may be placed in the street along the street curb in a manner so as not to block or impede traffic, provided that the street has not already been plowed and snow removed from the curb. The use of metal ice chippers or tractors and other equipment with chains or steel lugs on wheels or tracks is prohibited. Urea based snow melting chemicals or light application of salt or calcium chloride compounds may be applied to the sidewalk to prevent surface moisture from freezing. (c) The removal and disposal of snow and ice from a driveway or parking lot is the responsibility of the person having care, either as owner, an agent of an owner, or occupant of the premises. Placing of snow and ice from any driveway, parking lot or other location on private property onto the public streets or within the public rights -of -way is prohibited. (d) Any person required under this section to remove snow and ice from any sidewalk shall effect such removal at his own cost within 24 hours of the cessation of visible precipitation and in event of failure to effect such removal within such period shall be deemed in violation of this section and the pertinent sidewalk shall be deemed in nonconforming condition with respect to the requirements of this section. (e) Any person in violation of this section who by his failure to perform as required hereunder maintains or allows to be maintained any sidewalk in nonconforming condition shall be deemed guilty of gross neglect of the public safety. Any person placing snow in the rights - of -way in violation of this section shall be required to remove snow from the rights -of -way or shall be required to pay the cost of removal by the city. Any person damaging the surface of a sidewalk and curb in violation of this section shall be required to remove and replace the damaged sidewalk and curb as directed by the city or shall be required to pay the cost of the city to remove and replace the sidewalk. 13 The City of Seward, Seward businesses, Seward Visitors and Seward Shoppers Need Your Help! We are working diligently to create a more robust, year- round economy. One of the aspects we hear from citizens and businesses alike is the need to ensure pedestrian access remains open to our local businesses. One key component of that access is ensuring our sidewalks and right of ways are clear of snow and ice. Seward City Code requires a person, either as an owner, an agent of an owner, or occupant of any premises, to promptly remove snow & ice from premises bordered by a graded or paved sidewalk. So ... let's step our efforts to remove snow & ice from the sidewalks! Our businesses, visitors, and shoppers will love you for it. Uv15ake co�,dit�ov�5 kof ped ecAfl av►5 14 In October 2022, as a follow-up to our Feasibility Study for a Community Recreation Center, Victus Advisors completed an additional online survey with local residents regarding potential funding options for development of a new community recreation center in the City of Seward (the "City" or "Seward"). The survey link was distributed by City staff, and we received 211 responses. As shown below, 52% were Seward residents, 43% were not Seward residents but lived within the "Greater Seward" area (which includes Lowell Point and all areas between Seward City limits and the "Y" interchange), and 5% lived outside of the Greater Seward area. �' iii i - • - - i` - 5% ■ Inside Seward City limits ■ Outside Seward City limits but in "Greater Seward" area Not in "Greater Seward" area 2 At the beginning of the survey, respondents were given the following general information and shown sample concept plans from our feasibility study: Seward Community Recreation Center - Funding Options Survey Introduction After recently completing a feasibility study and concept plan for a potential new community recreation center, the City of Seward is now reviewing funding options that might be utilized to construct such a facility. Based on the results of the feasibility study, the City is considering an estimated 38,500 sq. ft, $18.5 million community recreation center with the following amenities: • Multi -use gymnasium with multiple courts for basketball, volleyball, and other youth/adult sports, as well as flexible space for community gatherings, banquets, meetings, etc. • Indoor walking/jogging track. • Youth center and senior center to relocate and expand upon the existing programs that currently take place at 336 3rd Ave. • Child care options. • Community rooms, meeting rooms, and multi -purpose rooms for a wide range of community activities and programs. • Parks and recreation offices and administrative space. • Additional support areas/amenities such as bathrooms, locker/changing rooms, vending machines, parking, and storage. 17 3 Prior to any further information, 69% of Seward residents and 76% of respondents living outside the City in Greater Seward (or 72% overall), support the City building a new community recreation center.* 80% 72% 70% 60% 50% 40% 30% 28% 31% 20% 10% 0% All Respondents Seward Residents Greater Seward ■Yes, I support the idea of the City building a new community recreation center m No, I do not support the idea 'Note: For the remainder of this report, the following definitions apply., • All Respondents" = All survey respondents, regardless of residence • `Seward Res/dents" = Survey respondents who res/de w/thin the City of Seward • `Greater Seward" = Survey respondents who are not Seward residents ,but reside within the Greater Seward area, which includes Lowell Point and a#areas ,between Seward City limits and the "Y"interchange Next, survey respondents were presented with information regarding several potential funding options: Bed Tax Increase within the City of Seward: • The City of Seward currently collects a bed tax of 4.0% on all short-term room rental transactions within City limits, including hotels, motels, Airbnb, etc. Other cities in Alaska that have bed taxes currently range from 4.0% to 12.0%. Combination of Various Tax Increases within the City of Seward: • This could include a combination of smaller increases to Bed, Property, and/or Sales Taxes within the City of Seward, as well increases to other City rates and fees, rather than a single larger increase to just one tax source. Property Tax Increase within the City of Seward: • Within City limits, the City of Seward currently taxes Real & Personal Property at a mill rate of 3.84 mills (or $3.84 per each $1,000 of assessed property value). When combined with additional property taxes assessed by the Kenai Peninsula Borough and the Seward -Bear Creek Flood Service Area, the total mill rate for a property owner within the City of Seward is 9.09 mills (or $9.09 per each $1,000 of assessed value). Recreational Service Area (Property Tax) including City of Seward and nearby communities on the east side of Kenai Peninsula: • This would include not just an increase to the 3.84 mill property tax rate assessed by the City of Seward within City limits, but also an increase in the property tax rate within a yet -to -be -defined area outside of City limits. This Recreational Service Area would be intended reflect the projected service/usage area for a new community recreation center in Seward, regardless of City limits. • Currently, many residents of communities to the north of Seward on the Kenai Peninsula pay a property tax rate of as much as 9.90 mills (or $9.90 per each $1,000 of assessed value), which includes property taxes levied by the Borough, the Flood Service Area, the Bear Creek Fire & Emergency Service Area, and a Road Maintenance assessment district. Sales Tax Increase within the City of Seward: • Local governments in Alaska (boroughs and cities) may collect a sales tax within their jurisdictions, not to exceed a total local sales tax rate of 7.5%. Within Seward, the City collects a sales tax rate of 4.0% and the Kenai Peninsula Borough assesses a rate of 3.0%, for a total combined rate of 7.0%. 19 Among both City residents and Greater Seward residents, a Bed Tax Increase had the most support (33- 39%), followed by a Recreational Service Area (15-17%) and a Combination of Various Tax & Fee Increases (10-13%). 37% I would support a Bed Tax increase within the City of Seward 39% 33% I would support a Recreational Service Area that increases property tax within not only the 16% City of Seward, but also nearby communities on the east side of the Kenai Peninsula 17% 15% 11% I would support a Combination of Various Tax & Fee Increases within the City of Seward 10% 13% I would support a Property Tax increase within the City of Sewardr2-/� % 4% 4% I would support a Sales Tax increase within the City of Seward 2% 7% 29% 1 do not support the construction of the recreation facility 30% 27% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% ■AII Respondents ■Seward Residents ■Greater Seward 20 6 For the respondents who supported any funding option in the previous question (i.e. any choice but "I do not support"), they were then asked to rank all of the potential funding options. Both Seward residents and Greater Seward residents selected a Bed Tax increase within the City as their most preferred option. However, Seward residents strongly preferred a Recreational Service Area as their second most preferred option, whereas Greater Seward residents had similar preferences for a Sales Tax or Recreational Service area for their second most preferred option. Neither group had a strong preference for a Property Tax increase within iust the Citv of Seward. All Average Rank Respondents 1 Bed Tax Increase within the City 1.54 2 Recreational Service Area 2.33 3 Sales Tax Increase within the City 2.88 4 Property Tax Increase within the City 3.25 Sewa rd Average Rank Residents 1 Bed Tax Increase within the City 1.57 2 Recreational Service Area 2.00 3 Sales Tax Increase within the City 3.03 4 Property Tax Increase within the City 3.40 Greater Average Rank Seward 1 Bed Tax Increase within the City 1.51 2 Sales Tax Increase within the City 2.70 3 Recreational Service Area 2.72 4 Property Tax Increase within the City 3.07 21 7 Respondents were then told that in addition to potential tax increases that could be used to pay for construction and operations of a new community recreation center in Seward, it is also common for community recreation facilities to charge annual membership fees to help support the ongoing operations of the facility. For example, existing public sports and recreation facilities in other parts of the Kenai Peninsula charge as much as $35 to $50 per month for an individual adult membership. As shown below, 57% of Seward residents and 68% of Greater Seward residents (or 62% overall), said they would definitely, likely, or possibly pay for an annual membership. 26 Definitely pay 26% L 26 6 / o 62% f All Respondents Likely pay 15% 57°r6 f Seward Residents 17 % 68% of Greater Seward 20 Possibly pay 16 25 18% Likely would not pay 23% 13% 20 Definitely would not pay 21 0% 5% 10% 15% 20% 25% 30% ■ All Respondents ■ Seward Residents ■ Greater Seward 8 Respondents were also told that some communities also implement tiered pricing options for admissions and usage of municipal recreation centers. The goal of such pricing models is to charge non-resident users higher fees to offset the usage costs for tax -paying residents. For example, when purchasing a monthly membership at comparable venues, a City resident might pay $35 to $40 per month, whereas a non-resident might pay $45 to $50 per month. Or as another example, a City resident might pay $5 to $6 per day for drop -in use of the facility, whereas a non-resident might pay $7 to $8 per day. As shown below, 78% of Seward residents and 62% of Greater Seward residents (or 71 % overall) said they would be in favor of a tiered pricing structure based on residents vs. non-residents. 90% 80% 70% 60% 50% 40% 29% 30% 22% 20% 10% 0% All Respondents Seward Residents Greeter Seward ■ Yes No 23 0 If only city residents are taxed then the "outside city limits" users should be under a tiered system. Otherwise if the funding is coming from all users equally then there should not be a tiered system. With 40 year high inflation and fuel and food cost and the city discussing selling it's "cash cow" the electric utility, this is a no-brainer. It makes zero sense to spend this kind of money right now and add more taxes to the citizens that are already struggling right now. Seward is expensive as it is and adding more taxes is a horrible idea. BAD IDEA!! Seniors should not be charged a monthly fee. Based on the plan for this building I would not be in favor of using it. The cost is too high for a gym and track. I would be in favor of something just not this No taxes This project has grown too large! Where's the ice ring? Where's some bowling lanes? This proposal sounds like the city is jumping in to improve its look and forgot about all the families inside & outside the city limits who have low incomes! Increasing city sales tax effects us all! Restructured & gives us less fluff & more recreation! I would support tiered fees only if out of town people were not charged tax but in town did. I would not support it if everybody in the greater seward area (outside seward) had to pay the same tax as in town. While I would love for our town to have more options for entertainment and etc this is clearly not feasible. We aren't paying current city employees enough and don't have enough for current city needs but you want to throw 18.5 million at something that is projected to lose almost another 1/2 a million per year. Clearly that's not feasible or smart. If there's a recreational service area that encompasses Seward residents and non-residents, then you can't charge more to non-residents if there's a fee. I feel this project is a waste of time and resources. Seward already has most of these amenities, they are just poorly managed or understaffed. 24 'At the end of the survey, respondents were given the option (but were not required) to submit open-ended commentary prior to exiting the survey. 10 The cost of this is too great for the Seward Community and I do not support funding this. The City is unable to staff the gym at AVTEC more than 3 days a week currently. This new recreation center funding is not sustainable. We are entering a deep recession. I like this idea but the timing is wrong. Come back in a few years. Partnering with local healthcare for health care prescriptions and grants for low income/need-based individuals would be wonderful As a long time Seward resident, business owner and community member, I do not believe Seward can sustain such a building. I am glad to see an ice rink is not part of the plan as that would be not cost effective at all. But This facility isn't bringing anything new that we don't already have in some capacity other than an indoor track. Put the money into the things we already have to make them better. Parks and rec can barely run a sports program as it is and I don't see them stepping up their game in a new facility . If there were more programs from them and they were busting at the seams to make something work, maybe. But they put even less effort into the community than with the previous director. Spending this kind of money on something "new" won't pan out for the city later down the line. I would strongly encourage Seward to instead of build a new center, to fund and improve the recreation program and AVTEC gym we already have. Why not increase AVTEC gym access to 6-7 days a week instead of the three days we have now? If the senior center moves to a new building, where is the space for their cafeteria? They have an entire floor of their current building; the proposed rec center plan gives them one room. Ditto for the Boys and Girls Cub. Seward needs to get its priorities in order. While this community center is a worthwhile project, it should not be ahead of other infrastructure projects which are more important. Public Works, Fire, Police and even city hall should come before this project. You can't call the community center to come protect you when you need help or your house is on fire and its not going to plow the snow on your street. Also, if Seward raised the bed tax and perhaps some of the other tax options, within a few years we could raise the capital to fund these projects. If we leave the taxes in place permanently, we will be continually raising money for future projects as well. Seward never should have fallen into this state of disrepair. The council and city administration needs to step up and lead the city in the right direction with a comprehensive, strategic plan to accomplish these needs in an orderly fashion. I believe it is not sound thinking to build a new facility this size in Seward, especially when there isn't even sufficient housing available for people to reside in. If people want this project then save the $$ and build it. So tired of going into Tax debt to fund these things. There are many other things needed in the Seward community . Alaska has so many opportunities to recreate outdoors what a waste of resources. 11 It sounds good but the cost of it will go over budget. The of maintenance is something a lot of people don't take in to account. The use will not be the glowing numbers everyone always provides they will a lot less use and more wasteful spending when there are other things that money could be better spent on. public donation drive. buy a brick. matching grants, rasmussen, SCF In general, I support a rec center for the community. I do NOT support an ice sheet as the space is too restrictive on flexible use whereas gym space can be used for a variety of activities. I am concerned about the cost of the facility. Seward is not a wealthy town. Much of the population could not afford increase taxes and fees. We want to make sure that we can properly fund the facility and yet provide access to ALL groups including those that can not afford the user fees. This survey is deceiving because it does not mention anything about the yearly $500,000 operating cost that the citizens of Seward will get stuck with every year. Let's do this! Would also love to see future plans for a pool, extended area for sports like soccer I would support improving existing critical infrastructure (sewage lagoon) before rec center. Where's the pool? The high school pool is inadequate for competitive swim meets. Would 100% support if it included a pool. I feel like what I see in the plans we already basically have through AVTEC. Why send all this money on something we already have? Thanks for asking Having a center will bring the community back together. The usage will be determined by the amenities, fees, and seasonal activities. The tiered membership fees should be higher for persons not living in the greater Seward and Moose Pass communities. Persons not effected by a higher city or borough tax paid to support a Seward community center. 26 12 I chose "possibly pay" because I am already a member of a local gym. However - I still think this rec center would add value to the Seward community. Too bad the ice rink was nixed. I think that rink would've brought in a lot of revenue :) I feel like we should look to utilizing all of the recreational centers and gyms that we have that are unutilized. Think out -of -the -box how can we use the middle school gym high school gym elementary school gym Avtec gym. These are all already built, maintained and utilities paid for but severely underutilized. I just think if we build something we have to be able to staff it pay for it and sustain it and I think we've seen where we've run into problems when we've built these large buildings and we're unable to staff and keep up with ever raising utilities. Again if it got built I would wholeheartedly support it but I just feel like we have so much existing facilities that are under utilized at this point that this just would not be a good use of funding. Why are the city's campground fees not listed as a revenue source for this building? I support a portion of campground fees to pay for a facility. Please do this and also consider moving toward creating a phase plan for additions including turf areas, ice facilities and additional meeting spaces for the future. The City of Seward has spent hundreds of thousands of dollars over the years on feasability studies for projects that have gone no where. The City needs to put their time and money into continued infrastructure improvement and rebuilding of City Buildings for public safety, etc. Thanks for working on this! Our youth and seniors will grow! And it's about time we look to care for our citizens in the capacity. Thank you! 27 13 \1\ V I C T U S A D V I S O R S Victus Advisors LLC Park City, Utah (435) 776-5728 info@victusadvisors.com www.victusadvisors.com 28 14 Community Development Department Jason Bickling Director Notes: ➢ The 2023 Legislative Priorities / Capital Improvement Projects Guide is complete and printed. We updated the priorities and added maps in the back to be able to have discussions over. ➢ The STR (short term rental) Regulation Language was passed at our regular meeting on October 11th. It will be coming before council on November 14 for an Ordinance introduction. In order to help create understanding, we will be doing a short presentation to explain the proposed ordinance at the introduction. ➢ Final clean up and mitigation for the Jesse Lee Home site was completed on October 10th — 12th The results from that final clean-up are on their way to ADEC. We will have to wait for them to get final sign off on the property before we can move ahead with any plans or work on the site. If it is signed off before we get solid freezing, we will have Metco fill it in and grade it flat for the winter. After final sign off, we will also come back to council with determination for future plans. ➢ We are continuing to process the information from the Ground Penetrating Radar work done in the cemetery and adding it to the GIS. Once we get that into the system, we are going to set up some meetings with knowledgeable people to help us interpret some of the unknowns. After that, we will be giving a presentation to council in regards to the findings as well as the GIS information. ➢ We are working on Title 16 Revisions (Subdivisions) as well as our Subdivision Agreement. ➢ 2023 is the last year for the Summer Shuttle Contract. We will be putting out another RFP in the near future for the 2024-2026 Summer Seasons. ➢ The department is reviewing Title 15 for proposed areas of revision that we will be bringing to P&Z starting in November. We will be looking at a number of topics in regards to efficient land use that will hopefully help us continue to address the housing shortage. ➢ Continuing GIS work for Community Development, Fire, Building, Public Works, Utility, and Parks and Rec. We are also developing detailed "work" maps for the departments as well. ➢ We are continuing with our normal business of processing of records requests, short term rental permits, replats, rezones, Cups, and consulting regularly with community members that have questions about the development and use of their land and helping with applications. 011 W, , I r I ftj LOWELL TUNNEL OUTFALL (FEDERAL) I � WATER & SEWAGE EXPANSION (STATE/FEDERAL) 06 SIDFWAI K IMPROVF FM NTS (STATF/FFDFRAI MANAMM 1,"!" LOCATED AT THE NORTHERN TIP OF RESURRECTION BAY, SEWARD HAS LONG BEEN AN IMPORTANT DESTINATION. In the Alutiiq language, Seward is known as Qutekcak, meaning 'big beach', and served the Alutiiq, Sugpiaq, and other Alaska Native peoples as a meeting area. A deep -water, ice -free port with rail, highway, and air transportation, Seward is easily accessible from Alaska's major hubs and the Lower 48. The wild and stunning natural landscapes attract adventurers from around the world to enjoy the beautiful vistas, hike the stunning trails, experience the diverse wildlife, paddle and fish the rich waters, and explore our historic community. Today, Seward is home to a vibrant community with a deep appreciation for the natural environment and local history and culture, with hundreds of thriving small businesses, robust maritime and tourism industries, as well as valuable educational and research opportunities. We welcome you to join us in Seward and learn why we say Alaska Starts Here. Incorporated in 1912, Seward, Alaska is a home -rule city in the Kenai Peninsula Borough. Seward has a population of 2,600, with approximately 3,000 additional people residing in surrounding communities just outside of city boundaries. 2 2023 Legislative Priorities Report 32 Welcome to Seward, Alaska _1 , BOROUGH GOVERNMENT Seward is located within the Kenai Peninsula Borough - incorporated in 1964 as a second-class borough. An elected Borough Mayor serves as the chief administrator who works with an elected 9-member legislative assembly, on which Seward has one seat The Borough is responsible for area -wide education, solid -waste management, planning and zoning, taxation and assessment. Local service area boards provide hospital, fire, and emergency services. N . e, VA LOCAL GOVERNMENT Seward is a city manager form of government, governed by a Mayor and City Council who are elected by the people of the City. The City Manager is appointed by the elected 7-person City Council, along with a City Attorney and City Clerk. The Mayor and City Council act together as the Governing Body. The Governing Body, being the elected representative of the people, adopts all ordinances and resolutions and determines the general goals and policies of the city. TAXATION The city, along with the state of Alaska has no personal income tax. Real/ personal property tax within the city is at a low 3.84 mils. The real/personal property tax outside the city but within the borough is at 4.5 mils with an additional .5 mils for the Seward/ Bear Creek Area Flood Service Board. The sales tax for Seward is 4%. The sales tax for the Borough is 3%. Seward also has a 4% bed tax. About Our Government 33 2023 Legislative Priorities Report 3 I CITY MANAGER Janette Bower, City Manager j b o we r@ c i tyof s ewa rd . u s Office: 907-224-4012 Cell: 907-362-1020 Stephen Sowell, Assistant City Manager ssowell@cityofseward.us Office: 907-224-4066 Cell: 907-362-4062 410 Adams St. PO Box 167 Seward, AK 99664 4 2023 Legislative Priorities Report 34 a , 7�i 2023 GOVERNING BODY Sue McClure, Mayor Term expires October 2025 John Osenga Term expires October 2024 Liz DeMoss Term expires October 2023 Mike Calhoon Term expires October 2024 Randy Wells Term expires October 2025 Kevin Finch Term expires October 2025 Open Seat Term expires 2023 About Our Government CONTINUED FULL FUNDING FOR THE CONSTRUCTION AND MAINTENANCE OF THE UNITED STATES ARMY CORP OF ENGINEERS LOWELL TUNNEL OUTFALL DIVERSION STRUCTURE. (FEDERAL) JANUARY 2022: CONSTRUCTION FULLY FUNDED THROUGH THE INFRASTRUCTURE AND JOBS ACT. $185 MILLION. THANK YOU TO ALL WHOSE EFFORTS MADE THIS FUNDING POSSIBLE. The district aims to construct a new flood diversion system for Lowell Creek in Seward, Alaska. Upgrades include a new 18-foot diameter tunnel and diversion dam upstream from the current tunnel; refurbishment to the existing tunnel; extension of the outfall by 150-feet to carry creek flow and debris over Lowell Point Road; and canopy to protect the tunnel inlet from landslides. The plan also calls for select tree removal that in a flood event could block the tunnel if swept up. Lowell Tunnel Outfall Diversion Project 35 2023 Legislative Priorities Report 5 EXPANSION OF WATER/SEWER AND ACCESS INFRASTRUCTURE WHICH WILL INCREASE CONSTRUCTION OF NEW RESIDENTIAL DEVELOPMENT THROUGHOUT CITY LIMITS. (STATE AND FEDERAL) There are two strategic areas that have been identified for utility expansion that would open the door to residential development. Afognak / Forest Acres is an area on the northwest portion of town that has over 25 residential lots There are 150 acres of private and public land to the north of the Seward Marine Industrial Complex that can be opened up for development with the expansion of sewer lines. Afognak Acres • Water, sewer, electric: $2,51 I,000 • Roadway: $958,000 SMIC • Sewer: $1,090,000 • Lift Station: $100,000 Residential bousing has been an ongoing issue in Seward and tbis project will add lots for immediate construction of much needed housing. FULL FUNDING OF THE ALASKA DEPARTMENT OF CORRECTIONS IN ORDER TO RETURN TO 100% FUNDING OF THE OPERATIONAL COSTS ASSOCIATED WITH OPERATING THE SEWARD COMMUNITY JAIL. In 2013, the City of Seward entered into a 5-year contract with the State of Alaska to run the community jail in Seward. The amount of the contract at that time was $655,470.00 with the guarantee of an inflation adjustment annually not to exceed 2%. In 2015, the state amended the contract on the basis of budget cuts and voided the CPI increase language. The value of the contract dropped to $368,952.00 where it has remained ever since. There have been no CPI increases and there have been no opportunities to negotiate. The state has never addressed employee wage changes, increases to benefit package costs, or increases to the costs of operation. Most recently, Seward has attempted communications with the Commissioner of the Department of Corrections and have been unable to have discourse with the office. Our calls and emails go unanswered and we have, as of this 2021, been shifted to the Probations and Parole office at the state level. The employees in this office admit they are not in a position to negotiate the jail contracts and are not authorized to make contract adjustments. Therefore, the City of Seward is now weighing its options to determine the best course of action moving forward regarding the future of the jail facility. Collectively, the community jail Chiefs of Police are working along with their respective City Managers, Mayors and Councils, and AML/JIA to bring the state to the table to discuss our collective issues and find solutions so these jails can stay in operation. 2023 Legislative Priorities Report 36 Water & Sewer Infrastructure and Seward Community Jail SLUDGE REMOVAL FOR THE LOWELL POINT AND SMIC SEWAGE TREATMENT LAGOONS. (STATE & FEDERAL) The City of Seward has a sludge removal program in place for the two separate wastewater treatment plants. These programs are to complete sludge removal every 7-10 years depending on the depth of sludge measured yearly. The very high costs to complete is well out of what City ratepayers can afford. With this project we will also have to install a new liner and replace aeration equipment in the lagoon. Recommended by Senator Murkowski for Congressionally Directed Spending The current liner and aeration equipment are beyond the 30- year life span. We can only fund this program by utilizing grants and loan programs that are available. There is a one -to -two-year lead time to bidding, contracting, and scheduling this work. The successful award offunding now will allow us to proceed with the lengthy and important process to get these lagoons modernized and cleaned. Estimated cost is $2,000,000. Seward Treatment Lagoons 37 2023 Legislative Priorities Report 7 SEWARD MARINE INDUSTRIAL CENTER INFRASTRUCTURE The Seward Marine Industrial Center (SMIC) has seen a significant increase in demand overthe last few years since the grand reopening and with the resident lease taken over by Jag Independent Marine. Every fall the boat yard is completely full with many additional requests for space and amenities that aren't currently available. The US Coast Guard Fast Response Cutter and support will be located there starting in 2024. To allow the industry to continue to grow and flourisb, there are a number of infrastructure upgrades needed. 20 ACRE LAND EXPANSION (1): There is approximately 20 undeveloped acres to the north of the current boat yard and syncrolift area (boundary bounded by Olga, Sorrel, Delphin, and Jellison). The city already has had a number of requests for use of that land for leases for marine work by companies both currently operating and new businesses interested in operating out of SMIC. Costs: • Brusb, fill, top, andgrade: $500,000 • 500 Foot Road Extensions of MustangAve and Morris Ave. 2vitb Pipe Culverts to Support330-ton travel lift.• $225,000 SHIPYARD: FILL AND REGRADE (2): The main boat yard area (approximately 20 acres) needs to be slightly lifted and regraded for drainage during the rainy season and break up so that the boat moving and repair business can continue with minimal disruption: Costs: • Regrading: $100,000 LINE EXTENSIONS AND POWER PEDESTALS IN MAIN SHIP YARD (3): There is and increasing demand for power in more areas of the yard. This would fund line extensions and 20 additional power pedestals in main yard which would allow more work to be done concurrently. Costs: • Pedestals (20 x $8,000ea): $160,000 • Line Installation: $150,000 8 2023 Legislative Priorities Report 38 City of Seward, AK WATER SERVICE AND FIRE HYDRANTS (4): With the boat yard expansion and growth, the need for water extensions and fire hydrants has increased. Costs: • Water Line (6900LFx $2251 IF): $1,500,000 • Fire Hydrants (15 x $5000ea): $150,000 PUBLIC RESTROOMS (5): There is only one, small public restroom located at SMIC which covers over 90 acres and provides space for over a hundred large vessels. An additional, large public restroom with shower facilities is needed to service the area for current use and continued growth. Costs: • Lift Station Cost and Install: $100, 000 • Extension Lines: $100,000 • Building and Facilities: $350, 000 1 3 6" 2 %n 1I �4 C' SECURITY (6): Narrative: With the increasing boat working going on and the presence of equipment and tools, the area needs securing upgrades to help keep theft down and business moving without delays. Costs: • Fencing.- $250,000 • Security Camera System (20 Cameras and installation on lightpoles): $100,000 City o,fSeward, AK 2023 Legislative Priorities Report 9 REPLACEMENT OF OLD PIPING WITH NEW DUCTILE IRON PIPING THROUGHOUT SEWARD. (STATE & FEDERAL) The City of Seward needs funding to replace existing galvanized and transite (AC — asbestos -cement) water mains. These problem mains are nearly 60 years old and well past their lifespan. The new ductile iron mains will replace and thus prevent the inevitable collapse and failure of the old water mains. With available funding we will replace up to 1000 feet per year to keep safe drinking waterfor the community. Estimated cost is $4,000,000. 7 'W W _ --^max. 10 2023 Legislative Priorities Report 40 Ductile Pipe - Water Department SIDEWALK REPLACEMENT AND REFURBISHMENT THROUGHOUT THE CITY OF SEWARD. (STATE & FEDERAL) Pedestrian Safety is a high priority in Seward as our visitors increase and our sidewalks continue to deteriorate. We have multiple sidewalks needing attention throughout Seward. Securinggrant andADA funds for sidewalk replacement and refurbishment allows us to address ADA access issues for ramps, parking, and dangerous large cracks and broken concrete areas 2vitb high pedestrian traffic. Estimated cost is $2,500,000. Sidewalk Repair & Replacement 41 2023 Legislative Priorities Report 11 FUNDING FOR THE CONSTRUCTION OF A NEW PUBLIC SEWARD PUBLIC WORKS WORKS FACILITY AT A MORE APPROPRIATE SITE. THIS MOVE WILL FREE UP SIGNIFICANT LAND FOR RESIDENTIAL DEVELOPMENT ON THE CURRENT PUBLIC WORKS FACILITY SITE. (STATE & FEDERAL) The Seward Public Works Facility was built in 1965 after the '64 earthquake. Relocating this facility from downtown has been a desire of this community for over 40 years. The relocation of the facility to a more commercial area with adequate acreage for a new equipment warm storage building, a maintenance repair shop, and other public works function are needed. The current building is worn out and doesn't fit well in the more residential use district. It is too small, very inefficient, and critically inadequate fortoday's operations and staff. Ibis project is bigb on the City's priority list for funding. Completing this project asap 2vill also free up 32 small downtown residentiallots to the public and willgreatly help 2vitb the housing shortage in Seward. Estimated cost is $10,000,000. Current Public Works facility. Responsible for operations of the Water and Wastewater utilities, the Street Department, the City Shop, and limited Municipal Building maintenance. It is our mission to provide the City of Seward residents with prompt service and maintenance in a cost effective manner. The majority of our work consists of maintenance, repairs, and improvements of the City's streets, utilities, and equipment. SERVICES • Maintaining approximately 31 miles of paved and unpaved roads. • Maintenance of 28+ miles of both water distribution and wastewater collection main lines. • Maintaining the City's vehicle fleet. • Providing snow removal and sanding for safe roads in the winter. Conceptual examples of new Public Works Department facility. 12 2023 Legislative Priorities Report 42 Public Works Facility FLOAT EXTENSION PROJECT IN THE HARBOR FOR Z FLOAT. (STATE & FEDERAL) There is currently an extensive wait list for vessels in the Seward Harbor. The wait list is a barrier for businesses and economic growth with charter vessels, tugs, barges, personal vessels, and commercial transient vessels not having the places they need to operate. The current wait list has been in existence for over 10 years 2vben this was initially placed on the Capital Improvements List. There has been movement on this list but the overall list (of over 200) has not cbanged significantly with the oldest request currently still waiting since 2014. Estimated cost is $8,000,000. t� FWALCRAFT Seward Harbor Z-Float Expansion 43 2023 Legislative Priorities Report 13 FULL FUNDING AND ONGOING MAINTENANCE FOR THE SEWARD AIRPORT OPERATED BY THE STATE OF ALASKA. (STATE) The Seward Airport, operated by the State of Alaska, is a vital lifeline for our community and its safety. With no over -the -road ambulance service, we have regular Medevac flights to get citizens, workers, and visitors the urgent medical care that they need. The US Coast Guard uses the airport regularly for local refueling and transport as well during rescue operations. When there have been avalanches or slides and the road is closed, the airport is our only link for goods and supplies. Less urgent but also important is that it generates significant commerce for our community with businesses in the visitor industry. We are requesting funding for prioritized and regular maintenance. 11 E The Seward Airport is unmanned and operated by the State under visual flight rules. Some air service, flight -seeing and charter services are available. Two paved runways are utilized with one being 4,240' long by 100' wide, and the other is 2,279' long by 75' wide. Flight time to Anchorage is about 45 minutes. 14 2023 Legislative Priorities Report 44 Seward Airport CITY OF SEWARD (GREATER SEWARD AREA) /01 w'� w » r r T .5yk e wx� ' r4' r Ily_ , r r r, w "ara r up .r� w m ' , u il 4.�'; 16 2023 Legislative Priorities Report -City of Seward Map (Northwest) City of Seward, AK u i � r- e A e 0 31i, a � elw y n7,1 . u City of Seward, AK 2023 Legislative Priorities Report -City of Seward Map (Northeast) I 17 18 2023 Legislative Priorities Report - City of Seward Map (South) City of Seward, AK ia City of Seward, AK 2023 Legislat9iivePriorities Report -City of Seward Map (SMICArea) 19 p NN " wNL'* p vim, City of Seward © 2023 a ! City of Seward, AK I P.O. Box 167 410Adams Street City Hall Building a u -w�a Seward, AK 99664 1 (907) 224 3331 . www.cityofseward.us t The City of Seward would like to 7. _ d^ acknowledge the Seward Chamber of Commerce & CVB for their invaluable partnership in economic development and ". a destination marketing and management. Their work is supported by the thousands of Seward annual visitors to through a portion x of the 4% bed tax collected by Seward's P esteemed lodgingproviders, as voted by p the citizens of Seward in the 1995 I - general m October election via Initiative Ord. 95- u 001z, which took effect in November 1995, ., s and was implemented January of 1996. ,�.. Branding, design, and photography elements for the 2022 City of Seward Legislative Priorities Report have been provided by the Seward Chamber of Commerce & CVB, as it continues to strive to fulfill its mission to keep Seward the best place in the world to live, work and play. i Seward Chamber of Commerce & CVB PO Box 749 1 2001 Seward Highway Seward, AK 99664 1 (907) 224-8051 www.seward.com I� 'IsY w lt\ \ Hill 1:11 AL A S K N FPFWAPD, AK - 2022 LEGISLATIVE PRIORITIES In Electric System Director Rob Montgomery ➢ Utility Sale Executive Session — Participated in City Council's executive session on October 27 to determine the City's preferred electric provider should citizens approve the sale of the electric system in the May 2 Special Election. Council selected Homer Electric Association as the preferred utility based on several factors, including: o HEA's long-term strategic plan and investments already made in its infrastructure and operations; o HEA being further along than other Railbelt utilities in its investments in cybersecurity and other system technologies; o HEA's plan for integrating into the Seward community; o HEA ensuring Seward representation on the HEA board of directors; o Existing synergies between HEA and Seward Electric since both are located on the Kenai Peninsula and share key relationships within the Borough; o HEA's commitment and strategy for stable electric rates. ➢ Seward Electric Monthly Employee Meeting — City Manager Janette Bower met with Seward Electric employees on November 4 as part of the department's monthly safety/training/information meetings. The meeting provided employees an opportunity to get an update directly from the City Manager on key issues and to ask questions on those issues. ➢ Title 14 Electric Code Updates — Department staff worked with accounting firm Carmen Jackson representatives to review and update Title 14 (Electric) of the Seward City Code as part of the City's department -wide code review. ➢ NWPPA Conference (Anchorage) — Seward Electric Field Engineer Patrick Burnett attended the Northwest Public Power Association Conference in Anchorage the week of October 31. During the conference, he participated in a two-day, National Electrical Safety Code (NESC) training course and also participated in an engineering roundtable. In making contacts at the conference, he was asked and agreed to serve on an engineering committee with other Alaska utility representatives. ➢ 2023-2024 Budget Review — Finalized the Electric Department's two-year budget and presented to City Council during the November 1 Special Meeting. ➢ Railbelt Committee Meetings — Participated in various Railbelt committee meetings the weeks of October 24 and October 31, including: Railbelt Utilities Managers (RUM), Utility Committee on Energy Infrastructure and the Committee for Clean Energy Standards. The committees are working to address Railbelt transmission system upgrades, identifying and seeking federal grants to assist with system upgrades, and developing a common-sense clean energy strategy. 6% CMR Finance Department Sully Jusino Deputy Finance Director Mission Statement: Valuable Objectives: To provide the highest level of services responsive to our We built trust with all stakeholders through responsible community's expectations and to enhance the quality of life stewardship of public resources with integrity, and economic vitality. accountability, and respect. Utility Department: • Carmen Jackson Firm and Finance department continue working with the initial internal and forensic audit work plan. • Invoices and refunds for electric work orders are sent to the customers. Carmen Jackson Firm and Finance Staff- - Carmen Jackson LLC continued assisting the Finance Department in account reconciliation, journal entry review, and analysis workflows. - Finance Staff continuously worked with FEMA on the Lowell Point Landslide emergency in May. - Carmen Jackson's team is assisting finance staff in preparation for the first draft of the FY23_24 Budget presented to the council. - Finance is continually working with CM to review the Alaska Waste contract for 2023. Annual Audit: - The application for the GFOA certificate for our FY21 audit has been submitted and accepted for review. 53 Fire & Building Department Fire Chief Clinton Crites &7 11 We NEED 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 7:00pm. Statistical Information: Fire & Life Safety Inspections 2022 YTD: 364 with 298 violations noted. Emergency Calls YTD: 309 New Building Permits Issued 2022: 54 with a total valuation of $9,845,349.97 Demo Permits Issued YTD: 3 Teenagers Jaelyn Crites and Amiyah Tatum first noticed the fire and ran to notify their parents, Julie Crites and Albl Tatum, who immediately called 911 and began shouting at the unaware residents to evacuate. Quick action from bystanders and a swift evacuation saved this famlly' lives. Seward Fire responded with 4 firefighters and Bear Creek responded as automatic aid with 6 firefighters. The cause is still under investigation. Even with limited manpower and gusting winds, Incident Commander Chief McCoy controlled the fire quickly and protected the attached home and other nearby structures. 54 Av, AA, Y04 4 E E V %AIknVn %/ni 1—E E si Every Bedroom Needs a Working Smoke Alarm! Half of home fire deaths happen between 11 p.m. and 7 a.m., when most people are asleep. Test alarms at least onCe a month by pushing 411 the test button. lopReplaCe all smoke alarms when they are 10 years old or if they do not sound when tested. rIRE DEPT. 11 M1,)4 " For the best protection, install imereonneeted smoke alarms in your home_ When one sounds, they, all sound_ A ' Install smoke alarms in every bedroom, outside eaCh separate sleeping area, and on every level of the home, ineludingthe basement. Larger homes may need more alarms_ Some people, espeCially Children and olderadultsr may need help to wake up. Make sure someone will wake them if the smoke alarm sounds. When the smoke alarm sounds, got outside and stay ' outside. So to your outside meeting place. Mr 911 Cal I the fire department from a rellphone Ora neighbor's phone. Stay outside until the fire department says its safe to go bark inside_ giuing a little jog to our local children 12 1 New OnLine Registration 8 :4 OCT 7=NOV I Follow the R code to register or ollow the website below. Use Angel Code; sAK For more information cali: 907-224-3445 or sufd0sew ardfire.com Harbor Harbormaster Norm Regis ➢ The 50-ton and 330-ton Travelift has slowed down; most vessels are out for the winter. ➢ We are training three new harborworkers on the maintaining the Travelifts. ➢ We are working on the SMIC yard drainage to keep water flowing into the ditches. ➢ We have opened G, K and L-float; contractor is working on the punch list. ➢ The pedestals have arrive and have been installed. ➢ We are still working with the public with COVID protocol in mind while continuing to do boat lift's and public contact in the Seward Harbor office. ➢ A continuous cleanup is still in process on the last lot at SMIC, this cleanup is starting to take shape, just a few more items to deal with and we can lease out the property again. ➢ The harbor office will be closed on Sundays until spring 2023. ➢ The harbor office will be closed November 24, through the 26th for Thanksgiving weekend, A Harborworker will still log the floats and answer any calls that had come in. ➢ The North East harbor launch ramp has a few punch list items left for the contractor to work on. ➢ I called Washington and checked on the City of Seward Harbors PIDP grant it is in the final weeks of technical review, an announcement of the grant awardees will be in a couple of weeks. (NO WORD YET) ➢ We are continuing to work with Moffatt & Nicole on the design for the 5-ton crane on I - Dock, Corp Permit has been approved ➢ The harbor is fully staffed. ➢ Received an update from the Coast Guard on the lease for the new FRC location, the package went to Headquarters for review. After the review, negotiations can take place for the lease land located at SMIC. (GETTING CLOSER) no word yet. ➢ The Coast Guard called again for more information on the lease transfer with Polar Equipment. ➢ Winter is here please remember do not shovel the snow off your vessels onto the dock; please place the snow into the water. 58 Seward Community Library & Museum Bailey Sayler MUSEUM TEMPORARY DISPLAY Seward Coal Loading Facility The Temporary Display space presents a history of the now abandoned coal loading terminal. Learn the history of the terminal, along with its machinery pieces, and issues the terminal faced in its 32 years of operation. Also featured are historic photos of the terminal and models of historic Alaska Central Railway train cars and modern Alaska Railroad passenger cars. MUSEUM WINDOW DISPLAY Alaska Steamship Companv Menus Featured in the Windows of History display is a collection of artwork by Josephine Crumrine and Eustace Ziegler that graced Alaska Steamship Company souvenir menus throughout the 1930s- 1940s. You'll also see a brief history of Alaska Steam and some of its historic brochures. Play n Chat Every Tuesday and Thursday, the Library and Bloom work together to bring arts n crafts, story time, and play time for our younger crowd. NalloWriMo meetings are every Thursday at 3 p.m. during the month of November. For the month of October, we served over 7200 people. Library hours Tuesday —Friday 9 a.m. — 6 p.m. Saturdays 9 a.m. — 5 p.m. Museum Summer Hours Tuesday — Saturday 11 a.m. — 3 p.m. (Winter Hours) We are currently taking passport appointments for new passports. The library does not do renewals. Please call 907-224-4082 to make an appointment. 6T] Parks & Recreation Admin & Maintenance • Winter seasonal staff onboarding and training. • Winter maintenance and Sports & Recreation staff recruitment ongoing. • Outdoor Christmas decoration work ongoing. • AK Hood Services scheduled to service Branson Pavilion hood exhaust system 11/8. • Finalizing RFP for layout design & pavement marking for the Harbor Parking lots. • Annual Campground Occupancy: 34,507 bookings, October Occupancy for Iditarod: 131 bookings. • Total of 28,033 Gallons of trash removed from Big Belly Bins this season. • IT Department & TelAlaska completed internet upgrades for Sports & Recreation office at AVTEC gym. Sports & Recreation AVTEC gym hours to the public. Thursday - Saturday from 12-8 pm Sauna Hours Thursday - Saturday Men: 5-6 pm Women: 6-7 pm Racquetball Court can be reserved online at Seward.recdesk.com Thursday - Friday: 2-8 pm Saturday: 12-8 pm Adult Open Basketball: Thursday 6-8 pm Youth Open gym (ages 16 and under): Thursday: 12-1 pm and Friday 3-5 pm, $3 per youth 16+yrs Open Volleyball: Friday 6-8 pm Senior Walking Hour (60 and above): Saturday 12 - 1 pm FREE Seward Senior Citizens get FREE access to the AVTEC facility during Public Hours. Thanks to Seward Senior Center! Membership/Punch Passes are available at Seward. recdesk. com . Yearly adult rate (18+): $100 Yearly youth rate (17 to 6): $50 5 and under: Free 6 punch pass $20 12 punch pass $40 Adult day rate: $5 youth day rate: $3 SEWARD 75 Mlle Tracker 0= BIKE ( = HIKE 0= WALK 0= RUN AVTEC will be closed to the public for Thanksgiving on Thursday, November 24. Re -open Friday, November 25 from 12-8 pm. AVTEC usage numbers October 13 - 27: 206-day users Upcoming events/ Ongoing: -Seward 75. Get your body moving in the fall months. Walk, hike, run, or bike 75 miles, October - December. Mile Tracker at City of Seward Sports and Recreation website. Win a Seward 75 sticker. -Puzzle Battle, Saturday, November 26. 6-8 pm AVTEC multi -purpose studio room. Teams of 2-4 race against other teams to finish the same 500-piece jigsaw puzzle. Registration at Seward.recdesk.com is $10 per team. Only 1 person needs to register per team. Space is limited to 6 teams. Rec Volleyball League Wednesday nights at the Seward Middle school, 5:30 - 10:00 pm. Finals will be on November 30 and December 7. No games on November 23. AVTEC GYM: R.Y. "$ T%sws"r - Satorday lop, IC AVTEC Gym Schedule Thursday - Saturday 12.-00 - &OOpm - 4.— &—a a Activitoom %POftWvd by $OVA" $"Not C44" CO-1wr qw, Seward Senior Citizens Free A'v'TEC P"JELIC �-lEMBERqHlPs kt". F MIRE 16H 11, "TEC Memberships Seviard.recdesk.com Membership includes a multi -sport gym, weight/cardio room, racquetball court, sauna, and showers. Information about membership can be found on the website above. SEWR CITIZEN INALKING NOW AVTIC GYM, Co" *" tree Um " SM MMrMywlnMwrRFwr Senior Citizen Walking Hour Free access to the AVTEC gym for AVTEC GYM. Come walk the gym and get Seward citizens ages 60 and above- your body moving - Sponsored by the Seward Senior Citizen Saturday's in October center- *Local ID is required at check -in. 12-00 - 1 -OOPM 1.1 Past events: This year's Halloween Carnival, October 31. 5-8 pm, Cruise ship terminal. 11 vendors in total. 46 Il[IRRINK �You �.x.For Coming We appreciate your organization coming Ito the Halloween Carnival. We could not make this event happen with out you! What a great turn out for the Halloween Carnival! Huge thank you to all vendors and volunteers. We cannot pull off events like this without you! We hope that you had a good time and that your organization was able to raise some funds. We hope to see you next year! —Jenny Rutledge I.% CHANDLER, FALCONER, MUNSON & CACCIOLA, LLP SUITE 302 0 EKTITUMSIMKell'. IGVIQ►VIVO ANCHORAGE, ALA SKA 99501 TELEPHONE: (907) 272-8401 FACSIMILE: (907) 274-3698 bcf@bcfaklaw.com November 9, 2022 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 October. General Matters: We advised on an appeal from a suspension of a chauffeur permit. We advised on procurement of pavement marking services for parking lots. We reviewed a proposal for a joint grant application. We advised on multiple public records requests. We advised on a contract interpretation issue with the City's solid waste contractor. We advised on incorporation of building code requirements into the schedule of minor offenses. We reviewed a gravel extraction agreement. We analyzed city responsibility for potentially dangerous trees. Electric Utility: We continued to advise on the potential sale of the Electric Utility. Personnel: We advised on various personnel matters. Planning: We advised on abatement of an encroachment in a city right of way and assisted in issuance of a notice of abatement, which ultimately resulted in voluntary abatement of a significant obstruction to a city right of way. Port: We advised on an abandoned vessel. We reviewed and revised a lease assignment. 63 Status Report to Seward City Council November 9, 2022 Page 2 of 2 You can expect to receive our next status report by December 7. Very truly yours, CHANDLER, FALCONER, MUNSON & CACCIOLA, LLP Brooks Chandler 64 DocuSign Envelope ID: FBFA9497-CE28-4COE-92A4-OCD3F594F54D Alaska Small Business Development Center ALASKA SBDC LAr BUSINESS ENTERPRISE- INSTULITE October 14, 2022 City of Seward 410 Adams St Seward, AK 99664 Dear Mayors Terry and McClure, City Council, and City Staff, This letter serves as our quarterly report for the period July 1 to September 30, 2022. The quarter started and ended with some impressive milestones from our Seward Business Advisor. During the first weekend, KellyAnn Cavaretta competed in the Mount Marathon Race, finishing with a personal record and placing 54th among women, while also beating 54% of men participants. KellyAnn is the first woman SBDC business advisor to serve on the Kenai Peninsula, with the previous six advisors all being men. When the SBDC's fiscal year ended September 30, KellyAnn became the first SBDC advisor on the Kenai Peninsula to achieve perfect internal metrics in their first year. Not only did she top a majority of male Mount Marathon racers, but all of the male peninsula SBDC advisors, past and present, as well. Here is a summary of deliverables to the Seward community this quarter (year): Client Hours: 124.9 (480.6) Jobs Supported: 282 (414) Total Clients: 51 (82) Capital Infusion: $335,841 ($3,424,190) New Businesses Started or Bought: 2 (10) Client Surveys: 100% positive (100% positive) The contract rate for a business advisor is $55 per hour, which includes salary, benefits, fixed, and administrative expenses. In addition to local expertise, the Alaska SBDC provides IBISWorld industry reports, retailing for $925 each, and ProfitCents financial analyses, valued at $2,750 each, to clients free of charge. Here is a summary of value provided to the Seward community during the quarter (year): Business Advisor: $22,880 ($76,560) IBISWorld Industry Reports: $12,025 ($43,475) ProfitCents Financial Analyses: $33,000 ($68,750) Total: $67,905 ($188,785) We would like to thank the City of Seward for their support of the Seward Business Advisor position. KellyAnn has been doing excellent work in Seward, as evident not only by metrics, but in the comments business owners and entrepreneurs have sent to us. We appreciate the knowledge, experience, and energy she brings to our team. Please do not hesitate to contact us if you have any questions. Sincerely, DocuSigned by: F3E1FHMADF4BD... Jon Bittner Executive Director Alaska SBDC 65 City of Seward, Alaska City Council Special Meeting Minutes October 19, 2022 Volume 42, Page CALL TO ORDER The October 19, 2022 special meeting of the Seward City Council was called to order at 5:30 p.m. by Vice Mayor McClure. OPENING CEREMONY Council Member Liz DeMoss led the Pledge of Allegiance to the flag. ROLL CALL There were present: ChFis y T-ef y presiding and Sue McClure (presiding) Liz DeMoss Mike Calhoon comprising a quorum of the Council; and Janette Bower, City Manager Brenda Ballou, City Clerk Excused — Terry, Casagranda Absent — None John Osenga Randy Wells CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Skip Reierson, inside the city, said there were 51 viewers who watched the special meeting on Monday. He was concerned that the meeting on Monday did not allow more interaction with the public as the budget discussions were no longer being held during a work session; he was dismayed that public comments were more limited as a result. Regarding sales tax revenues, he said Soldotna and Kenai appeared to have been less affected by COVID-19 than Seward, and Seward had marked decreases in sales tax revenues. He admonished council to be mindful of this concern when planning the budget; expenses should be kept down. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Osenga/DeMoss) Motion Passed Approval of Agenda and Consent Agenda Unanimous The clerk read the following approved consent agenda items: There were no consent agenda items. City of Seward, Alaska City Council Special Meeting Minutes October 19, 2022 Volume 42, Page NEW BUSINESS Other New Business Committee of the Whole: 2023/2024 City of Seward Budget. Motion (Osenga/DeMoss) Go into Committee of the Whole to discuss the 2023/2024 City of Seward budget. Motion Passed Unanimous Council moved into Committee of the Whole at 5:35 p.m. Council came out of Committee of the Whole at 7:48 p.m. CITIZEN COMMENTS Kat Sorensen, inside the city, believed a budget was an indication of the health of an organization, and she thought this budget reflected that the city was in good shape. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSES TO CITIZEN COMMENTS Bower wondered if there would be a quorum for the November 1, 2022 special meeting. Wells thanked everyone for their work and presentations. He appreciated that there was a separate budget now for all three city buildings. Osenga echoed the thanks for staff preparation and the presentations. DeMoss thanked administration and staff for their work. She appreciated the citizen comments, as well. McClure thought tonight was an excellent meeting and budget presentations. She thought things were going smoothly. The next meeting for the budget would be on October 24, 2022 starting at 5:30 p.m. She cautioned everyone to be careful with the darkness and to watch for ice. ADJOURNMENT The meeting was adjourned at 7:53 p.m. Brenda Ballou, MMC City Clerk (City Seal) Sue McClure Vice Mayor 67 City of Seward, Alaska City Council Special Meeting Minutes October 24, 2022 Volume 42, Page CALL TO ORDER The October 24, 2022 special meeting of the Seward City Council was called to order at 5:30 p.m. by Vice Mayor McClure. OPENING CEREMONY Council Member John Osenga led the Pledge of Allegiance to the flag. ROLL CALL There were present: ChFis+y T-ef y presiding and Sue McClure (presiding) Liz DeMoss Mike Calhoon comprising a quorum of the Council; and Janette Bower, City Manager Brenda Ballou, City Clerk Excused — Terry, Casagranda Absent — None John Osenga Randy Wells CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Kat Sorensen, inside the city, wished to advocate for the Chamber of Commerce budget that would be discussed tonight. She and the chamber board wanted to have an open discussion with council about the chamber's contract with the city and the roles and responsibilities of the chamber. Sorenson said the state would be putting $10 million towards tourism in 2023; she planned to focus on preparing for those visitors coming to Seward. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (DeMoss/Wells) Motion Passed Approval of Agenda and Consent Agenda Unanimous The clerk read the following approved consent agenda items: There were no consent agenda items. NEW BUSINESS 68 City of Seward, Alaska City Council Special Meeting Minutes October 24, 2022 Volume 42, Page Other New Business Committee of the Whole: 2023/2024 City of Seward Budget. Motion (Osenga/DeMoss) Go into Committee of the Whole to discuss the 2023/2024 City of Seward budget. Motion Passed Unanimous Council moved into Committee of the Whole at 5:36 p.m. Council came out of Committee of the Whole at 5:55 p.m. CITIZEN COMMENTS — None COUNCIL AND ADMINISTRATION COMMENTS & RESPONSES TO CITIZEN COMMENTS McClure thanked everyone for the budget discussions tonight. ADJOURNMENT The meeting was adjourned at 5:56 p.m. Brenda Ballou, MMC City Clerk (City Seal) Sue McClure Vice Mayor 69 City of Seward, Alaska City Council Meeting Minutes October 24, 2022 Volume 42, Page CALL TO ORDER The October 24, 2022 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Vice Mayor Sue McClure. OPENING CEREMONY Deputy Police Chief Karl Schaefermeyer led the Pledge of Allegiance to the flag. SWEAR IN NE WL Y ELECTED COUNCIL MEMBERS The city clerk delivered the Oath of Office to Council Member Randy Wells. (Kevin Finch was sworn in by the city clerk earlier today) ROLL CALL There were present: Mayor, Vacant presiding and Sue McClure presiding John Osenga Liz DeMoss Mike Calhoon Randy Wells Kevin Fire] comprising a quorum of the Council; and Janette Bower, City Manager Brenda Ballou, City Clerk Excused — Finch Vacant — One CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Peggy Ventura, outside the city, spoke at Planning & Zoning Commission meetings for the last year; she wanted the Forest Acres Campground to remain a campground and not be developed. That area was full of wildlife and birds and was a great park to visit. She said when COVID-19 happened, it became well -documented that spending time outdoors was important to peoples' well- being. The Municipal Land Plan on tonight's agenda for approval indicated the campground should be turned into a residential area in the future, and she hoped that property would remain a campground. Carol Griswold, inside the city, said last week a Trumpeter swan had hit the lines on Nash Road and died; she wondered why the Nash Road transmission lines were not being buried 70 City of Seward, Alaska City Council Meeting Minutes October 24, 2022 Volume 42, Page underground while the upgrade project was underway. On the Municipal Land Plan, Griswold wondered why the geotechnical and flood information had not been included in the plan for the Forest Acres Campground property; she thought the best use of the campground was to keep it as a campground. Tim McDonald, inside the city, thought the power lines were messy; he also wondered why they couldn't be buried, even if it cost more money. He didn't vote in the recent municipal election, but he believed that residents who lived outside city limits should have a chance to vote on city issues. He thought the lives of residents outside the city were easier without having to deal with the city, but he felt strongly that annexing to Mile 8 was important because most people lived outside the city limits. He said most businesses ran on a 15% profit margin, and having to pay 7% sales tax cut into their profits. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Osenga/Wells) Approval of Agenda and Consent Agenda McClure postponed recognizing Christy Terry for her service as Mayor to November 14, 2022. McClure moved Resolution 2022-107 onto the consent agenda with no objection from council. Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the October 10, 2022 City Council Regular Meeting Minutes. Approval of the October 17, 2022 City Council Special Meeting Minutes. Resolution 2022-107, Adopting The Municipal Lands Inventory And Management Plan-2022 Revision. Resolution 2022-108, Approving Amendment 42 To The Employment Agreement With The City Manager. Resolution 2022-109, Supporting Full Funding ($8,236,815) For The State Of Alaska Municipal Harbor Facility Grant Program In The FY 2024 State Capital Budget. Resolution 2022-110, Accepting And Appropriating The Gulf Of Alaska Pink Salmon Fishery Disaster Relief Grant Funds In The Amount Of $118,914 From The Pacific States Marine Fisheries Commission (PSMFC). Action Memorandum 2022-009, Authorizing the City Manager to Sign a Joint Agreement Between the City of Seward and Chugach Regional Resources Commission to Apply for EDA Grant Applications at the Mari -Culture Technical Center. r`i City of Seward, Alaska City Council Meeting Minutes October 24, 2022 Volume 42, Page Action Memorandum 2022-010, Approving Continuation of the Heat Loop Ad Hoc Committee Until December 31, 2023. Accept the resignation of Council Member Sue McClure. Approve the City Council Candidate application form and procedures to be used for filling vacancies. Direct the city clerk to solicit interest from residents to fill the Council Member vacancy. SWEAR IN NE WL Y ELECTED MAYOR The city clerk delivered the Oath of Office to Mayor Sue McClure. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards City Manager Report City Manager Janette Bower said she was planning to host a community conversation on February 23, 2023 to engage the community in discussion about housing needs and concerns; there would be a panel of speakers and it would be facilitated by Tim Dillon from the Kenai Peninsula Economic Development District (KPEDD). McClure asked about the status of the Jesse Lee Home property clean up. Community Development Director Jason Bickling said the clean up efforts have been communicated throughout to the Alaska Department of Environmental Conservation (DEC); the engineer's final report went to the DEC about two weeks ago and Bickling was awaiting sign off. City Clerk Report — None City Attorney Report — None Other Reports and Announcements Chamber of Commerce Report by Executive Director Kat Sorensen Executive Director Kat Sorensen said she had met with 20-25 representatives from Chitose, Hokkaido, Japan on Saturday who were visiting Alaska to attend the Alaska Federation of Nations event in Anchorage. VA City of Seward, Alaska City Council Meeting Minutes October 24, 2022 Volume 42, Page She announced the Seward Chamber of Commerce had won the Alaska Chamber of the Year Award. Sorensen said the final installation for the electric vehicle charging station at the chamber would be done on November 12, 2022. She reminded everyone that the cost of that charging station had been covered by a grant from the Volkswagen settlement agreement. Next weekend would be busy with Halloween activities, including a downtown and harbor trick or treating activity and a haunted house. Kids could download a bingo card from the chamber's website and if they attended two or more locations, they could turn in their card at the chamber and receive a big candy bar. The chamber had started planning for the January 1, 2023 fireworks display. The timing of the fireworks was being discussed and might be changed to earlier in the evening on December 31 st or moved to sometime on January 1st In response to Wells, Sorensen said use of the charging station was paid for by the user. Presentations — None PUBLIC HEARINGS Resolutions Requiring Public Hearing Resolution 2022-0969 Recommending Kenai Peninsula Borough Approval Of The Preliminary Right Of Way (Row) Acquisition Plat For The Seward Airport Located In T 1N & 1S R 1W Sec 34, 35, 2 & 3, Seward Meridian SW, That Point Known As The Seward Airport, Physical Location, 2310 Airport Road; Acquiring And Replatting Various Legals Located In Sec 34, 35, 2 & 3, Seward Meridian SW. Motion (Osenga/DeMoss) Approve Resolution 2022-096 Bower said representatives from the Alaska Department of Transportation (DOT) were here tonight to answer questions. DOT Project Manager Joy Vaughn introduced herself and Angela Folk, Assistant Project Manager. Vaughn said the DOT had filed for an acquisition plat last year. Before the DOT began purchasing property, they filed a preliminary plat; once that was approved, they could begin purchasing property. The state had started purchasing property once their preliminary plat made it to the borough. During that process, questions arose about whether the DOT would be doing a subdivision; as a result, some things were added to the plat, including the installation of utilities and fire hydrants and that there would be a guarantee of beach access. Subsequently, the DOT went back to the city to request those additional conditions removed from the plat so the project could move forward. 73 City of Seward, Alaska City Council Meeting Minutes October 24, 2022 Volume 42, Page Vaughn said, historically, the Resurrection River has flooded the airport property routinely; in 2013, the main runway was flooded eight times. Each time there was a flood event, it necessitated the surface pavement to be repaired. The DOT could not keep repairing the runway every time the river overran it. In considering how to fix the problem, the state hydrologist examined the property and discovered several things. The Federal Emergency Management Agency (FEMA) put out maps for insurance purposes called Flood Insurance Rate Maps (FIRM); the maps for the Seward airport indicated there was a floodway directly across the runway at the airport, and this was different than the airport being in a floodplain. Bringing in fill to a floodway was not allowed by federal law. As a result, Vaughn said the DOT could not continue to fix the runway over and over to protect their investment. Another issue, Vaughn said, was when the DOT materials folks went to the airport and "thumped" the runway, a process similar to using seismometers, they discovered the flooding has not only been peeling to surface off the runway, but also has been weakening the subgrade. They determined that the runway could no longer support a large aircraft landing on it. Therefore, the DOT had to reduce the weight of incoming aircraft that would be allowed to use the runway. Following those tests, the hydrologist concluded that, if the runway was raised to a level where flooding no longer impacted it, the result would be that flood waters would back up onto other properties up river. Vaughn said the DOT's first approach would be to maintain the airport infrastructure; however, the DOT determined they could not just simply repave the runway, nor could they bring fill into the floodway because it was prohibited by federal law, nor could they raise the level of the runway without causing damage to other properties. Vaughn said the DOT relied on federal funds to cover 93% of the costs to repair airports. Therefore, the projects had to comply with federal regulations in order to be considered eligible for funding. Vaughn said, in addition to the concerns she outlined, the Federal Aviation Administration (FAA) required runways to be designed for a "design aircraft". In this regard, the FAA had consultants would study the aircraft that took off and landed to determine how much of the runway was being used. The study for the Seward airport resulted in the FAA determining they would never rebuild the long runway, yet because the subgrade of the long runway was compromised, it would have to be rebuilt in order to be safe. Vaughn clarified that simply exposing the D1 gravel underneath the asphalt would be considered reconstruction; in order to justify reconstruction of the long runway, larger planes would have to take off and land at least 500 times a year, cumulatively. Vaughn said the FAA has been amenable to lengthening the short runway, so that is the focus the DOT has taken. She said the DOT had to defend and justify extending the short runway, and the FAA agreed to it after about six months. Vaughn said the FAA would not pay for bringing in utilities or fire hydrants to the airport property, nor would they grant access to the public to cross the property to access the beach because that kind of access did not already exist. 74 City of Seward, Alaska City Council Meeting Minutes October 24, 2022 Volume 42, Page The DOT wished to purchase the tidelands to the south in order to wrap up the project. The DOT had already purchased all the property to the bay, and the city's parcel was the last piece the DOT wanted for the purpose of protecting the runway approach. The city's parcel would not be developed by the DOT, but would be in place for if/when the city decided to extend the short runway from 3,300 feet to 4,000 feet. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Carol Griswold, inside the city, said the city turned down an offer to sell the parcel to the DOT in June this year. She did not believe this particular parcel was considered surplus city land, according to the Municipal Land Plan which recommended the city retain ownership of all city - owned tidelands. Griswold stated she had also discovered a fiber optic cable lease for $104,800 for 10.57 acres which ran across the city's parcel; the Municipal Land Plan recommended the city continue ownership and continuation of this lease. Griswold was concerned that these conflicts were not noted on the preliminary plat. She didn't understand how or why the city would sell a parcel of land which had an income -producing lease on it, and recommended the city coordinate an easement for the DOT which excluded the lease. Griswold noted that there was another parcel of 23.6 acres that had an easement on it for airport aviation and hazard purposes which was south of the long runway; this was not sold to the DOT, but was an easement. She thought it would be prudent for the city to require that easement to revert back to the city once the long runway was abandoned by the DOT. She asked council to postpone this resolution until the plat could be updated and the supporting materials could be corrected. Tim McDonald, inside the city, was concerned that there was not enough attention being paid to visitor traffic; he thought there should be a road cut in as a by-pass starting at the airport at the abandoned long runway and going to the cruise ship terminal to alleviate road traffic on the Seward highway going into town. McDonald said the Resurrection River needed to be built up with large rip rap to prevent the river from continuing to flood the airport. He wondered if having an airport nearer to Kenai Lake would be a more appropriate location. No one else appeared and the public hearing was closed. Council suspended the rules to speak with the DOT. Osenga asked what capacity the DOT had determined the airport to be at today, and what capacity did the DOT anticipate the airport to handle after the project was completed. Vaughn said the goal was to have an airport that could be maintained, and right now the long runway could not be maintained. Vaughn said what could be done was to repave the aprons and the short runway; the DOT was proposing to lengthen the short runway so that the capacity of the airport would not be reduced as much as it would if the short runway was not lengthened and the long runway went away. The usage study indicated the use of the airport was more on par with keeping the short runway, but the DOT had been able to justify to the FAA that the short runway should be lengthened. W City of Seward, Alaska City Council Meeting Minutes October 24, 2022 Volume 42, Page Calhoon wondered what the DOT would do if they did not purchase the last parcel from the city and the city decided they did not wish to lengthen the short runway. Vaughn said if the city decided not to have the short runway lengthened, she would have to consider what the DOT would do. In response to Wells, Vaughn said the because the city wanted to have a long runway, the DOT built their plan in such a way accomplish two things: for the DOT to repair and lengthen the short runway to 3,300 feet, and to set up the city to extend the runway to 4,000 feet in the future. McClure wondered if this was a catch 22 situation wherein if the runway wasn't long enough to properly document airplane traffic to justify having a 4,000 foot runway, there was no way to prove that a longer runway was needed. Vaughn said there was an alternate approach to justifying a longer runway and that would be through forecasting; one of the concerns currently with the airport was with the approaches, and if the approaches were improved it could have an impact. Vaughn said the current approach required an airplane to be at an altitude of 2,500 feet in order to see the runway, and if the weather was bad, that could be difficult; the reason the planes needed to be so high was because they had to be able to execute a missed approach. Vaughn said, if the approaches were improved, it may become economically viable for a commercial carrier to operate out of the airport; if they operated flights often enough, a forecast may be used to justify building a longer runway. Calhoon recalled when Seward had a commercial airplane business in the summertime and said they didn't survive from a business standpoint. He favored having a good, solid short runway that would enable small aircraft and medical transport to have access. Osenga understood that the long runway could no longer be used, but he wanted to look ahead at the future to allow for the possibility of extending the runway. He favored getting the short runway repaired and lengthened to 3,300 feet, and setting up a future generation to have the choice to lengthen to 4,000 feet. Vaughn wanted to clarify the situation regarding public access to the beach. She said there is not, and never has been, legal public access to cross the airport property in order to access the beach. The public has access to the beach tidelands, but the public cannot legally cross airport property In order to get to the beach; the public could access the beach by boat. Vaugh also wished to clarify the appraised value of the tidelands property that the DOT requested to purchase from the city. The DOT made an offer based on the appraised value that they received, and the DOT's expectation was that if the city wished to have their own appraisal done, the city could do that and then counteroffer back to the DOT. In response to Bower, Vaughn said the DOT tried to determine the exact path of the fiber optic cables and it was difficult to determine. They traced the location from where the cables came on shore to try to determine the path, and the cables may cross over a portion of the property, but she couldn't say that with certainty. NI- City of Seward, Alaska City Council Meeting Minutes October 24, 2022 Volume 42, Page Calhoon wished to know what length the short runway could go to without the DOT purchasing the city's parcel. Motion to Postpone (Calhoon/DeMoss) Postpone Resolution 2022-096 to allow the DOT to determine how long the short runway could be extended to without purchasing the tidelands parcel from the city. Osenga wondered what the impact of having a postponement would have on the DOT's plans. In response, Vaughn said it would simply postpone the project; there was the possibility that the long runway could be impacted in the meantime if the river flooded again. Vaughn added that the short runway would also be raised when the project was underway. Motion to Postpone Passed UNFINISHED BUSINESS — None NEW BUSINESS Other New Business Organization of City Council Yes: DeMoss, Wells, Calhoon, McClure No: Osenga Nominate, elect, and swear in a council member as Vice Mayor with a term to expire October, 2023. DeMoss nominated Osenga to be Vice Mayor. There were no other nominations. Motion (DeMoss/Calhoon) Elect Osenga as Vice Mayor with a term to expire October, 2023. Motion Passed Unanimous The city clerk delivered the Oath of Office to Vice Mayor John Osenga. Appoint a liaison to the Seward Community Health Center with a term to expire October, 2023. Council appointed Osenga to be the liaison to the Seward Community Health Center with a term to expire October, 2023. Appoint a council representative to the Kenai Peninsula Economic Development District with a term of January 1— December 31, 2023; this person also serves as the liaison to the Port & 77 City of Seward, Alaska City Council Meeting Minutes October 24, 2022 Volume 42, Page Commerce Advisory Board with a term to expire October, 2023, unless council chooses to make a separate appointment for the PACAB liaison. Council appointed DeMoss to be the council representative to the Kenai Peninsula Economic Development District with a term of January 1 — December 31, 2023. Council did not appoint a liaison to the Port & Commerce Advisory Board with a term to expire October, 2023. Appoint a liaison to the Planning & Zoning Commission with a term to expire October, 2023. Council did not appoint a liaison to the Planning & Zoning Commission with a term to expire October, 2023. Direct the boards and commissions to provide reports to council. Council directed the boards and commissions to provide quarterly reports to council in 2023: 1Q2023 Report in person at council meeting 2Q2023 Report in writing in council packet 3Q2023 Report in person at council meeting 4Q2023 Report in writing in council packet INFORMATIONAL ITEMS AND REPORTS Boards and Commissions Minutes — None Other Items City of Seward Financials for Second Quarter 2022 (June 30, 2022). Extra Mile Day Proclamation. CITIZEN COMMENTS Tim McDonald, inside the city, said the feds were working on the tunnel through Bear Mountain; he wondered if there had been any provisions made to generate electricity with that tunnel. He said it was $180 million project and he hoped the city was taking advantage of the opportunity. He thought there could be a dam built in the canyon about 1/4 mile back and a pumped hydro system could be put in place; there would be enough electricity generated to power the city for a week. He wanted the city to annex to Mile 8 so that there were more brains available to work on city business; he said the town needed help and council was doing the best they could, but they needed help. He heard that the city would be receiving $300 million in COVID-19 relief money. He didn't think council should be run by volunteers; it should be run by dedicated professionals. Everything needed to be changed at once. 78 City of Seward, Alaska City Council Meeting Minutes October 24, 2022 Volume 42, Page Kat Sorensen, inside the city, congratulated McClure and Osenga. She appreciated keeping the boards and commissions reports in front of council for the sake of the citizens; in her experience, those reports helped her learn about the city. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Bower congratulated McClure, Osenga, Wells, and Finch on their elections. Wells thanked everyone for voting him into office. He congratulated McClure, Osenga, and Finch. Calhoon welcomed everyone to their new positions. He thanked the DOT representatives for coming to tonight's meeting. He thanked P&Z for their good work on the Municipal Land Plan; they did a great job and he reminded everyone that it was a living document. Osenga welcomed Finch and congratulated Wells. He thanked the DOT for coming to tonight's meeting, and congratulated the Chamber of Commerce on their award. He thanked Kat Sorensen for representing Seward with the Japanese delegation last weekend. He was honored to be elected vice mayor. DeMoss thanked and congratulated the Chamber of Commerce. She thanked the DOT for coming to the meeting and answering questions. She congratulated everyone on their new positions. She was pleased to work with council. McClure was excited to be mayor and was grateful to the community for voting her in. She thanked the DOT for coming to tonight's meeting. She encouraged people to apply for the vacancy on council. She said there would be a lot of Halloween activities this weekend; please be careful and watch for children. ADJOURNMENT The meeting was adjourned at 8:43 p.m. Brenda Ballou City Clerk (City Seal) Sue McClure Mayor 79 City of Seward, Alaska City Council Special Meeting Minutes October 27, 2022 Volume 42, Page CALL TO ORDER The October 27, 2022 special meeting of the Seward City Council was called to order at 5:30 p.m. by Mayor McClure. OPENING CEREMONY Police Sergeant Patrick Messmer led the Pledge of Allegiance to the flag. ROLL CALL There were present: Sue McClure presiding and John Osenga Mike Calhoon Kevin Fine] comprising a quorum of the Council; and Janette Bower, City Manager Brenda Ballou, City Clerk Excused — Finch Absent — None Vacant — One Liz DeMoss Randy Wells CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING — None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Osenga/DeMoss) Motion Passed Approval of Agenda and Consent Agenda Unanimous The clerk read the following approved consent agenda items: There were no consent agenda items. CITIZEN COMMENTS — None COUNCIL AND ADMINISTARTION COMMENTS & RESPONSES TO CITIZEN COMMENTS — None 80 City of Seward, Alaska City Council Special Meeting Minutes October 27, 2022 Volume 42, Page EXECUTIVE SESSION Per SCC 2.10.030 (b)(1), go into executive session to discuss matters, the immediate knowledge of which would clearly have an adverse effect upon the finances of the city relating to Electric Utility Sale Negotiations. Motion (McClure/DeMoss) Motion Passed Per SCC 2.10.030 (b)(1), go into executive session to discuss matters, the immediate knowledge of which would clearly have an adverse effect upon the finances of the city relating to Electric Utility Sale Negotiations. Unanimous The city manager, city attorney (telephonically), and Electric Utility Manager Rob Montgomery were invited to stay. Council went into Executive Session at 5:33 p.m. Council came out of Executive Session at 8:35 p.m. McClure stated that council had received presentations from Chugach Electric Association (Chugach) and Homer Electric Association (HEA). Motion (McClure/DeMoss) Motion Passed ADJOURNMENT The meeting was adjourned at 8:36 p.m. Brenda Ballou, MMC City Clerk (City Seal) Direct the city manager to bring a resolution on November 14, 2022 stating that the city council unanimously selected Homer Electric Association as the preferred electric utility to purchase Seward electric. Unanimous Sue McClure Mayor 81 City of Seward, Alaska City Council Special Meeting Minutes November 1, 2022 Volume 42, Page CALL TO ORDER The November 1, 2022 special meeting of the Seward City Council was called to order at 5:30 p.m. by Mayor McClure. OPENING CEREMONY Patrol Officer Josh Ballard led the Pledge of Allegiance to the flag. ROLL CALL There were present: Sue McClure presiding and John Osenga Liz DeMoss Mike Calho Randy Wells Kevin Finch comprising a quorum of the Council; and Stephen Sowell, Assistant City Manager Brenda Ballou, City Clerk Excused — Calhoon, Wells Absent — None Vacant — One CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Jonah Swiderski, outside the city, asked council to have Leirer Road at the harbor paved. This road was the only access to the Alaska Railroad Depot, and he transported 100,000 people through there throughout the summer. He understood it was a difficult road to maintain because of the potholes. Swiderski suggested the city might use Commercial Passenger Vessel (CPV) funds toward this endeavor. He would appreciate if the city at least started looking at the project to start drawing up plans. Mica Van Buskirk, inside the city, was the president of the Seward schools site based council. She missed having the School Resource Officer at the high school; the position was not staffed during COVID-19 and she wished it would be restored. She said the teachers and staff felt safer having an officer on site, and the students were better behaved. Skip Reierson, inside the city, appreciated having these budget sessions. He passed out some written comments he drafted as recommendations in relation to the hospital, electric, and harbor budgets. He requested that council revert back to using an unrestricted fund balance for enterprise funds because it would allow continuity in resolutions. 82 City of Seward, Alaska City Council Special Meeting Minutes November 1, 2022 Volume 42, Page Laura Schneider, inside the city, supported having an additional harbor employee in the budget because the harbor needed ore staff to be trained in using the Shiplift at SMIC. The current harbor staffing restricted the efficient use of the Shiplift and wash -down pad; there could only be two 350-ton lifts each day, or six 50-ton lifts each day, or a combination of one 350-ton in the morning or afternoon and three 50-ton lifts in the opposite time. Schneider said, in order to serve the harbor customers, the lifts should be operated simultaneously and that required additional staff. She also supported paving Leirer Road. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (DeMoss/Osenga) Motion Passed Approval of Agenda and Consent Agenda Unanimous The clerk read the following approved consent agenda items: There were no consent agenda items. NEW BUSINESS Other New Business Committee of the Whole: 2023/2024 City of Seward Budget. Motion (Osenga/DeMoss) Go into Committee of the Whole to discuss the 2023/2024 City of Seward budget. Motion Passed Unanimous Council moved into Committee of the Whole at 5:54 p.m. Council came out of Committee of the Whole at 6:55 p.m. CITIZEN COMMENTS Mica Van Buskirk, inside the city, observed large increases in the budget across the board, and she believed the increases were significant. She hoped that the city would also be budgeting for things to benefit year-round residents, like a Recreation Center, and suggested perhaps the city could initiate a Recreational Service Area. She requested that preliminary planning and/or engineering be started and some budget considerations be put in place to support it. Norm Regis, outside the city, noted that the harbor budget was missing passenger fee revenues, and said that would be corrected. Skip Reierson, inside the city, said the city needed to decide what kinds of services it should 83 City of Seward, Alaska City Council Special Meeting Minutes November 1, 2022 Volume 42, Page be providing. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSES TO CITIZEN COMMENTS Sowell thanked everyone for their time. DeMoss thanked staff for making their presentations, and said she would support having the SRO back in the schools. Finch also supported having the SRO in the schools. Osenga thanked everyone for their presentations, and the citizens for their comments. It was all good information. McClure supported having the SRO in the schools, and said the Halloween Carnival had been great. ADJOURNMENT The meeting was adjourned at 7:05 p.m. Brenda Ballou, MMC City Clerk (City Seal) Sue McClure Vice Mayor 84 Ordinance 2022-015 An Ordinance of the Seward City Council, Amending the Land Use Plan to Rezone Proposed Tract B, Hemlock Subdivision, from Institutional (Ins) Zoning District to Park (P) Zoning District Documents: • Agenda Statement • Ordinance 2022-015 • Attachments: o Rezone Application 85 City Council Agenda Statement Meeting Date: November 14, 2022 To: City Council Through: Janette Bower, City Manager From: Jason Bickling, Community Development Director Agenda Item: Ordinance 2022-015: Amending the Land Use Plan to Rezone Proposed Tract B, Hemlock Subdivision, from an Institutional (INS) Zoning District to Park (P) Zoning District Background and justification: On September 12, 2022, the Seward City Council approved Resolution 2022-097, which authorized the City Manager to execute a task order with R&M Consultants, Inc. for the replat and rezone of Lot 12A, Fort Raymond Subdivision, Replat No. 1, which contains the Forest Acres Campground and the Seward Community Bike Park. Although the Institutional Zoning District and Park Zoning District both allow a playground' as an outright use, the intended long-term use of the parcel of land where the Seward Community Bike Park is located is that of a Park. The Institutional Zoning District allows many uses outright that could potentially jeopardize the Seward Community Bike Park if its long-term viability is not protected by rezoning it as a Park. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Vol 1, Chapter 2.2.4 Recreation — "We value diverse, year-round, indoor and outdoor recreational opportunities and facilities for residents and visitors of all ages." Vol 1, Chapter 3.6.1 —"Improve, expand, and diversify year-round parks and recreational opportunities for residents and visitors." Vol 1, Chapter 3.6.1.1 — "Improve existing and develop additional recreational infrastructure" -improve playgrounds -sustain current zoning for city park lands -continue to protect and preserve all city parks Strategic Plan: Recreation and Leisure (pg. 12): "We provide diverse, year-round, indoor and outdoor recreational, educational, and cultural opportunities and facilities for residents and visitors of all ages and socioeconomic backgrounds. -Develop and improve public playgrounds -Encourage cultural activities, expand library services, and develop additional recreation facilities" Other: M1 Certification of Funds Total amount of funds listed in this legislation: $ NA This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ x Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): General SMIC Boat Harbor Parking Motor Pool Other Unassigned Fund Balance*: Available Unrestricted Cash Balance* eYes Attorney Signature: Not applicable Comments: Electric Wastewater Water F1 Healthcare *unaudited numbers Finance Signature: Review Administration Recommendation e✓ Adopt Ordinance Other: 87 Sponsored by: Bower Introduction Date: November 14, 2022 Public Hearing Date: November 28, 2022 Enactment Date: November 28, 2022 CITY OF SEWARD, ALASKA ORDINANCE 2022-015 An Ordinance of the Seward City Council, Amending the Land Use Plan to Rezone Proposed Tract B, Hemlock Subdivision, from Institutional (Ins) Zoning District to Park (P) Zoning District WHEREAS, on September 12, 2022, the City Council passed Resolution 2022-097 authorizing the City Manager to execute a task order with R&M Consultants, Inc. to replat and rezone Lot 12A, Fort Raymond Subdivision, Replat No 1. also known as 911 Hemlock Ave; and WHEREAS, on October 11, 2022 the Planning and Zoning Commission approved Resolution 2022-022 recommending City Council approval of the Land Use Amendment to rezone proposed Tract B, Hemlock Subdivision, from Institutional (Ins) to Park (P); and WHEREAS, the current and future use of proposed Tract B is that of a community bike park; and WHEREAS, the current zoning allows many uses outright that could jeopardize the intended future of the Seward Community Bike Park as a Park if its zoning designation is not changed. NOW, THEREFORE, THE CITY OF SEWARD ORDAINS that: Section 1. The Seward City Council hereby authorizes the amendment of the official Zoning Map of the City of Seward by amending the zoning designation of proposed Tract B, Hemlock Subdivision, from Institutional (Ins) Zoning District to Park (P) Zoning District. Section 2. The Seward City Council further amends the official Land Use Map of the City of Seward by changing the land use designation of proposed Tract B, Hemlock Subdivision, from Institutional (Ins) Zoning District to Park (P) Zoning District. Section 3. This ordinance shall take effect ten (10) days following its enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, the 28th day of November, 2022. THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 88 CITY OF SEWARD Community Development P. O. Box 167 907.224.4049 907.224.4038 fax 410 Adains Street Seward, Alaska 99664 LAND USE PLAN AMENDMENT -REZONING APPLICATION This completed application is to be submitted to the Community Development Department no later than four (4) weeks in advance of the next regularly scheduled Planning and Zoning Commission meeting. Regular meetings are held the first Tuesday of each month. The application must be accompanied by the $300 filing fee. Petitioner: City of Seward, represented by Taryn Oleson-Yelle, AICP, R&M Consultants, Inc. Address: 9101 Vanguard Dr, Anchroage AK 99507 Telephone Number: 907-646-9645 Email: toleson(a)_rmconsult.com Property Description Address: 911 Hemlock Avenue, Seward AK (current) Lot: Block: Tract B Subdivision: Hemlock (proposed) Size of subject area: 3.337 acres Number of parcels within subject area: 1 Additional Information Located in Historic Overlay District? Yes L] No [X] Intended use and/or reason for rezoning: To most appropriately zone the existing and planned use of proposed Tract B for public park & recreation (bike park), a rezone from Institutional to Parks is proposed. Please see provided narrative. Does the proposed amendment comply with the Comprehensive Plan? Seward 2030 Comprehensive Plan Volume L htt2s://www.cilyofseward.us/home/showdocument?id=1705 Volume 11: hllps://www.cityofseward.us/home/showdocument?id=1707 Yes, see provided narrative. 89 Does the proposed amendment comply with the Historic Preservation Plan (skip if not within Historic Overlay District) Proposed amendment is not within the Historic Overlay District. What is the effect of the zoning amendment on the property owners and on the community at large? The rezone will be a benefit to the City of Seward and the community at large by ensuring long-term use of the property for public park & recreation use. Please see provided narrative. I hereby certify that the above statements and other information submitted are true and accurate to the best of my knowledge. I understand that this item will be scheduled for action only if all application materials are submitted not less than four weeks in advance of the next regularly scheduled Planning and Zoning Commission meeting. Regular meetings are held the first Tuesday of every month. Applicant Signature: 2 i4- v Enclosed: $300 Payment ( X ) Map of the subject area ( X ) Other: ( ) A map is required to accompany this application. Proof of ownership for parcel(s) must be available if Borough tax roles do not indicate applicant's name. The APPLICATION and MAP (indicating the specific area) must be submitted together, with a FEE of $300.00 (payable to the City of Seward) to the Community Development Office. Signatures of 51% of property owners involved in the rezoned area. (Attach a separate sheet if necessary) SIGNATURE ADDRESS (legal) DATE -�a o S— / ky wb. i Lo+ I I- �1 2 0.I9 REZONE APPLICATION R&M CONSULTANTS, INC TO: Mr. Jason Bickling, Director of Community Development, City of Seward FROM: Taryn Oleson-Yelle, AICP, Planner on behalf of the City of Seward SUBJECT: Rezone Application Narrative for proposed Tract B of Hemlock Subdivision ACTION: Rezone Hemlock Subdivision Tract B from Institutional District to Parks District DATE: September 6, 2022 Overview of Proposed Action: On behalf of the City of Seward, R&M Consultants, Inc. has prepared the following application for a rezoning of the proposed Tract B of Hemlock Subdivision (preliminary plat has been submitted for concurrent review with this application). This action will rezone the 3.337 acres of Tract B of the new subdivision from Institutional District to Parks District to best match its current and planned use as a public park, specifically the Seward Community Bike Park (bicycle pump park). The City of Seward owns Lot 12A, Fort Raymond Subdivision Replat, No. 1, which is proposed for subdivision. Concept planning for Lot 12A was complete in January 2022 which informed this rezone request. On September 12t'', 2022 the City Council of the City of Seward authorized the city manager to execute a rezone and Teplat of the subdivision (see attached City Council Resolution 2022-097); the concurrent Hemlock Subdivision Teplat and rezone of Tract B to Parks District implements a portion of the action authorized by City Council. Parcel ID: 14502602 Site Address: 911 Hemlock Avenue Zoning: The current zoning is Institutional. Hemlock Subdivision Tract B is proposed for a rezone to Parks District to appropriately reflect the existing and planned continued recreational use. Adjacent zoning includes Multifamily Residential and Park to the west, Institutional to the south, and Auto Commercial, Institutional and Multifamily Residential to the north (see Figure 1 and Figure 2.). Proposed Tract A of the Hemlock Subdivision, encompassing an existing municipal -run campground, will remain zoned Institutional. Size: 3.337 acres of the proposed Hemlock Subdivision (Tract B), see concurrent preliminary plat and Figure 2. Uses: The area of existing Lot 12A requested for a rezone (proposed Tract B) is currently being used as a public bike park maintained by the city. The remaining portion of Lot 12A (proposed Tract A) is used for a municipal -run campground. Adjacent land uses west of the proposed Hemlock Subdivision include a park, a multifamily develop owned by Kenai Peninsula Housing A& pol1 9101 Vanguard Drive • Anchorage, AK 99507 • 907.522.1707 Initiatives, Inc., Seward Resort and Seward Elementary. Land uses to the north include private residential dwelling and several B&Bs and vacant land. Access: Access is provided from Sea Lion Ave, a 60-foot right-of-way to the south. See concurrent Preliminary Plat for Hemlock Subdivision Tracts A & B. Zoning Development Requirements per City Code Title 15, Table 15.10.222: The proposed preliminary plat of Hemlock Subdivision and the existing recreation facilities on site meet the development requirements of the Parks zoning districts. Zoning District Parks Maximum Building Height (ft.) 34 Minimum Buildable Lot Size (ft.) None Minimum Lot Width (ft.) None Minimum Front Yard Setback (ft.) 20 Minimum Side Yard Setback (ft.) 20 Minimum Side Yard Setback Adjacent to Street (ft.) 20 Minimum Rear Yard Setback (ft.) 20 Maximum Accessory Building Height (ft.) 20 Maximum Lot Coverage (%) 10 The existing use of proposed Tract B meets the intent of the Parks zoning district. Parks zoning is a more appropriate, accurate district for the bike park than is current Institutional zoning. Seward Code 15.10.140(b)66 defines Park as any public land available for recreational, educational cultural oT aesthetic use. 15.10.140(b)76 defines Recreational, outdoor public as outdoor recreation facilities such as sports fields, ice rinks, playing fields oT miniature golf. Table 15.10.226 Land Uses Allowed, allows playground, public tot lot and parking lots as outright permitted uses, and recreation, outdoor i.e., miniature golf conditionally. The Institutional zoning district prohibits recreation, outdoor uses and permits other uses not intended oT desired for the site of the Seward Community Bike Park, including churches, medical clinics, libraries, commercial communication towers, utility facilities, vehicle impound lots, emergency services, and dormitory housing. A& P922 9101 Vanguard Drive • Anchorage, AK 99507 • 907.522.1707 Figure 1. Area Proposed for Rezone (outlined in pink), source: City of Seward Zoning App (Public) pg.03 9101 Vanguard Drive • Anchorage, AK 99507 •907.522.1707 Concurrent Actions: A preliminary plat for Hemlock Subdivision Tracts A and B has been submitted for review and approval by the City of Seward Planning & Zoning Commission and the City Council. This rezone is contingent on approval by the City of Seward and Kenai Peninsula Borough and recording of the final plat. Following recording, Tract B of Hemlock Subdivision will be created and be able to be rezoned to Parks. a MtAmG INSTITIRIOWM1 i:ilSn71M_ ]C' 3.I � ! F SCA LICNAVE. 23r P FT f-ii- IT IIEH I 1--ii FEEL-T II.. 1 2ONIN, uu._.un_ "' "' ;vin::Ivti-lr.irC:vai Figure 2. Area Proposed for Rezone to Parks (Tract B) highlighted on Preliminary Plat of Hemlock Subdivision Tracts A & B 3�u P944 9101 Vanguard Drive • Anchorage, AK 99507 • 907.522.1707 Consistency with the Local Plan & Policies: The proposed rezone is compatible with Local Plans & Policies. 2030 Comprehensive Plan Update (2017): The proposed rezone is supported by the City of Seward Comprehensive Plan. The Future Land Use Map carries forward Lot 12A's current Institutional Zoning. The proposed subdivision of Lot 12A retains Tract A for institutional zoning and uses but proposes a zoning change for Tract B to match is current community -supported uses of a public park. The proposed comprehensive plan amendment to Parks zoning is supported by the following Comprehensive Plan Goals and objectives: Vol 1, Chapter 2.2.4 Recreation: We value diverse, year-round, indoor and outdoor recreational opportunities and facilities for residents and visitors of all ages. • Vol 1, Chapter 3.6.1: Improve, expand, and diversify year-round parks and recreational opportunities for residents and visitors. • Vol 1, Chapter 3.6.1.1: Improve existing and develop additional recreational infrastructure o Improve playgrounds o Sustain current zoning for city park lands o Continue to protect and preserve all city parks Municipal Lands Management Plan (2014): The City of Seward Municipal Lands Management Plan (2014) identifies Lot 12A of Fort Raymond Subdivision, Replat No. 1 as Forest Acres Campground. The Plan recommends continuing to use the parcel as a public park and to sell with a sound development plan. This proposed rezone and concurrent subdivision request helps implement the plan for Lot 12A by separating the lot into two tracts to ensure the bike park continues as a public park (Tract B) and provides flexibility for the city to sell Tract A if a community -supported development plan is presented. Strategic Plan (1999): The following goals and objectives of the City of Seward Strategic Plan are supported or implemented by the proposed rezone: Recreation and Leisure Vision Element: we provide diverse, year-round, indoor and outdoor recreational, educational, and cultural opportunities and facilities for residents and visitors of all ages and socioeconomic backgrounds. o Develop and improve public playgrounds o Encourage cultural activities, expand library services, and develop additional recreation facilities Historic Preservation Plan: the subject area is not within the Historic Overlay District. P955 9101 Vanguard Drive • Anchorage, AK 99507 • 907.522.1707 Effect of the zoning amendment on the property owners and on the community at large: There will be no negative oT significant impact on adjacent property owners or the community at large due the proposed rezoning. The city will continue use of proposed Tract B for public park and recreation facilities (bike park), and the rezoning from Institutional to Parks reinforces that use in the long-term by giving it the most appropriate zoning. Parks zoning is a more use -restrictive zoning district than Institutional, ensuring that the parcel is used only for public recreation purposes. The rezone will provide a lo-ng-teTM positive impact on the community at large by ensuring the property is available to the public for diverse recreation opportunities. The Seward City Council authorized the subdivision of Lot 12A of Fort Raymond Subdivision Replat No. 1 with the intent of eventually selling the northern portion of the subdivision for residential development to proactively work to address the significant housing shortage within the city, in accordance with the Municipal Lands Management Plan. This rezone from Institutional to Parks provides additional protections to Tract B so that it remains for public recreational use and that any future change to the use of proposed Tract A will be compatible with the bike park. Summary of Request: The City of Seward requests the City Council approval of the rezone of proposed Hemlock Subdivision Tract B from Institutional to Park, dependent on final recording of the plat. ATTACHMENTS: 1. Preliminary Plat of Hemlock Subdivision Tracts A & B 2. City Council Resolution 2022-097 P966 9101 Vanguard Drive • Anchorage, AK 99507 • 907.522.1707 CERTF—E—E—I—L-1-10N 111 N'. C.1.11101 110�1� 4 —1- p RAFT NOT— ---T S 11 A-- CERTIFIC—OFACC— F,� �Cl�ITIL,%llll Fll 1-11 111, m�rA 9L 0 L NIl �1­1 UM APINll" --I, �l --N -1—MEN11 c"i I 'PINIOEl N.1,/D111LE OPOSED PLAT OF I. , F,1", P HEMLOCK SUBDIVISION .. ........ ............... 1-1111- IE—T No .... ...... .—C—l—E D 2022—XXXXX ... ....... 1 n Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2022-097 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO EXECUTE TASK ORDER 2734.26 WITH R&M CONSULTANTS FOR THE REZONE AND REPLAT OF THE FOREST ACRES CAMPGROUND AND BIKE PARK (LOT 12A, FORT RAYMOND SUBDIVISION, REPLAT NO. 1 (PLAT NO. 87-12), PHYSICAL ADDRESS 911 HEMLOCK AVE.) IN THE AMOUNT NOT TO EXCEED $33,985 AND APPROPRIATING FUNDS WHEREAS, the City of Seward owns the Fort Raymond Property at 911 Hemlock Avenue, which consists of the Forest Acres Campground and the Seward Bike Park; and WHEREAS, re -platting the parcel into two smaller parcels, and re -zoning the Seward Bike Park from Institutional (INS) to Parks (P) is the forthcoming recommendation from the Planning and Zoning Commission in the Municipal Lands Inventory and Use Plan; and WHEREAS, the replat and rezone of this property is the next step to make best use of this property for the community. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to execute the task order 2734.26 with R&M Consultants for the replat of the Forest Acres Campground and Bike Park (Lot 12A, Fort Raymond Subdivision, Replat No. 1 (Plat No.87-12), physical address 911 Hemlock Ave.) Section 2. Funding in the amount of $33,985.00 is hereby appropriated from General Fund Unassigned Fund Balance account no. 01000-0000-3400 to Community Development Contracted Services account no. 01000-1122-7009 within the 2022 operating budget. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the Cjy of Seward, Alaska, this 12°i day of September, 2022. T Mayor .- 98 CITY OF SEWARD, ALASKA RESOLUTION 2022-097 AYES: McClure, Osenga, Calhoon, DeMoss, Terry NOES: Casagranda ABSENT: Wells ABSTAIN: None ATTEST: (City Sej)�uaui��s� �•"'� OF SEA" SEAL �ti e I �s ��°��� • u � aaNaa, 1 OR City Council Agenda Statement Meeting Date: September 12, 2022 To: City Council Through: Janette Bower, City Manager From: Jason Bickling, Community Development Director Agenda Item: Resolution 2022-097: Authorizing the City Manager to Execute Task Order 2734.26 with R&M Consultants for the Rezone and Replat of the Forest Acres Campground and Bike Park (Lot 12A, Fort Raymond Subdivision, Replat No. 1 (Plat No.87-12), Physical Address 911 Hemlock Ave.) in the Amount Not to Exceed $33,985 and Appropriating Funds Background and justification: The current Lot 12A, Fort Raymond Subdivision, Replat No. 1 (Plat No.87-12), physical address 911 Hemlock Ave., contains both the Forest Acres Campground and the Bike Park and is currently zoned institutional. The Seward Bike Park was designed and constructed in 2018 and 2019. This replat will divide the single parcel into two parcels and rezone the Bike Park from institutional to pa rk. This was recently discussed at the recent Planning and Zoning Commission work session and is the forthcoming recommendation from Planning and Zoning to City Council in the Municipal Lands Inventory and Use Plan for that parcel of land. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.6.1 Improve, Expand, and Diversity Year -Round Parks and Recreation Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 33,985.00 This legislation (✓): Creates revenue in the amount of: $ X Creates expenditure in amount of: $ 33,985.00 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): X Not budgeted Not applicable 246 Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): ✓ General SMIC Boat Harbor Parking Motor Pool Other Unassigned Fund Balance*: Available Unrestricted Cash Balance* Yes Attorney Signature: ✓ Not applicable Comments: Electric Wastewater Water Healthcare 5,405,940.93 7,998,191.37 Finance Signature: Review Administration Recommendation e✓ Adopt Resolution Other: *unaudited numbers 249 Resolution 2022-111 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Purchase a New Toolcat UW56 from Craig Taylor Equipment Co. to Replace a 2005 Toolcat for a Total Amount $61,052.80 Plus 10% Contingency, for a Total Amount of $67,158.08, Utilizing Sourcewell RFP Contract #040319- CEC, And Appropriating Funds. Documents: • Agenda Statement • Resolution 2022-111 • Attachments: o Craig Taylor Equipment Co., Purchase Proposal 111YA City Council Agenda Statement Meeting Date: November 14, 2022 To: City Council Through: Janette Bower, City Manager From: Doug Schoessler, Public Works Director Agenda Item: Resolution 2022-111: Authorizing the City Manager to Purchase a New Toolcat UW56 from Craig Taylor Equipment Co. to Replace a 2005 Toolcat for a Total Amount $61,052.80 Plus 10% Contingency, for a Total Amount of $67,158.08, Utilizing Sourcewell RFP Contract #040319-CEC, and Appropriating Funds Background and justification: The Public Works Department's Tool Cat - Unit #1-219, is 17 years old and past the anticipated useful life. Unit #1-219 will be disposed of in the City Surplus Auction. The age of the unit, yearly costly repairs, and mechanical issues make the purchase of new ToolCat necessary to service Seward's road maintenance needs. The purpose and use of the ToolCat will be for alley maintenance, sweeping streets and sidewalks in town and City Hall and City Annex snow removal. The City of Seward Departments have a ToolCat, and this standardization of equipment saves money and improves maintenance efficiencies. Seward City Code 6.10.120(B) allows competitive procurement purchases which utilize competitive bids obtained by other governmental units, and the Public Works Department will be purchasing this vehicle through Craig Taylor Equipment Co. utilizing Sourcewell's joint purchasing contract #040319- CEC. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.4 Transportation 3.7 Public Facilities and Services 3.8 Natural Hazards Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 61,052.80 + 10% contingency=$67,158.08 This legislation (✓): Creates revenue in the amount of: $ x Creates expenditure in amount of: $ 67,158.08 Creates a savings in the amount of: $ Has no fiscal impact WIN Funds are (✓): Budgeted Line item(s) X Not budgeted Not applicable 03000-4000-8103 Motor Pool Water Capital Equipment Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking Water Healthcare X Motor Pool Other Unassigned Fund Balance*: $ 3,698,693.39 *unaudited numbers Available Unrestricted Cash Balance*: $ 2,543,027.92 Finance Signature: &+ Attorney Review RYes Attorney Signature: Not applicable Comments: eAdopt Resolution Other: Administration Recommendation WE Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2022-111 A Resolution Of The City Council Of The City Of Seward, Alaska, Authorizing The City Manager To Purchase A New Toolcat UW56 From Craig Taylor Equipment Co. To Replace A 2005 Toolcat For A Total Amount $61,052.80 Plus 10% Contingency, For A Total Amount Of $67,158.08, Utilizing Sourcewell RFP Contract #040319-CEC, And Appropriating Funds WHEREAS, the Public Works Department's 2005 ToolCat is past the anticipated useful life and has continued to have multiple yearly break downs and mechanical issues; and WHEREAS, to continue providing quality service to the Seward community, the Public Works Department needs to replace the 17-year-old ToolCat with a new ToolCat UW56, and WHEREAS, the purchase of the ToolCat is consistent with the City of Seward's policy of the Standardization of Equipment; and WHEREAS, the purpose and use of the ToolCat will be for alley maintenance, sweeping streets and sidewalks in town and City Hall and City Annex sidewalk snow removal; and WHEREAS, the City of Seward is a member of Sourcewell for government purchasing; and WHEREAS, Sourcewell issued an RFP for competitive bids for these ToolCats, and awarded a contract to Craig Taylor Equipment Co. for such equipment; and WHEREAS, Seward City Code 6.10.120(B) allows competitive procurement purchases which utilize competitive bids obtained by other governmental units, and the Public Works Department is purchasing this vehicle utilizing Sourcewell's joint purchasing contract; and WHEREAS, funds are available in the Motor Pool Reserves for this purchase of ToolCat for Public Works in the amount of $61,052.80 plus a 10% contingency. 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 the ToolCat UW56 from Craig Taylor Equipment Co. for an amount not to exceed $61,052.80, plus a 10% contingency, for atotal of $67,158.08. Section 2. The Seward City Council hereby finds that it is in the public interest to select and purchase ToolCat UW56 utilizing the competitive procurement RFP contracts by Sourcewell. Section 3. Funding for this purchase is hereby appropriated from the Motor Pool reserves `u17 CITY OF SEWARD, ALASKA RESOLUTION 2022-111 account no. 03000-0000-3400 to capital equipment no. 03000-4000-8103 within the 2022 operating budget. Section 4. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of November 2022. THE CITY OF SEWARD, ALASKA Sue McClure, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou, MMC City Clerk (City Seal) Product Quotation _5��ioBobcat w Quotation Number: MMB-01488 Date: 2022-10-14 15: l 6:11 Customer Name/Address: Bobcat Delivering Dealer ORDER TO BE PLACED WITH: Contract Holder/Manufacturer CITY OF SEWARD Craig Taylor Equipment Co, Clark Equipment Co dba Bobcat Attn: TRACY Soldotna, AK Company 410 Adams Street City 44170 KALIFONSKY BEACH 250 E Beaton Dr, SEWARD, AK 99664 ROAD West Fargo, ND 58078 SOLDOTNA AK 99669-8266 Phone: 701-241-8719 Phone: (907) 262-5977 Fax: 855-608-0681 Fax: (907) 262-9516 Contact: Heather Messmer Heather. Mess m er(&doosa n.com Description Bobcat UW56 Adjustable Vinyl Seats All -Wheel Steer Automatically Activated Glow Plugs Auxiliary Hydraulics • Variable Flow with dual direction detent Beverage Holders Bob-Tach Boom Float Cargo Box Support Cruise Control Speed Management Enclosed Cab with HVAC Dual Port USB charger Lower Engine Guard Limited Slip Transaxle Engine and Hydraulic Monitor with Shutdown Front LED Work Lights Full-time Four -Wheel Drive Horsepower Management • Roll Over Protective Structure (BOPS). Meets Requirements of SAE-J1040 & ISO 3471 • Falling Object Protective Structure (FOPS) . Meets Requirements of SAE-J1043 & ISO3449, Level 1 Dome Light Part No Qty Price Ea. Total M1225 1 $53,265.60 $53,265.60 Hydraulic Dump Box Instrumentation: Standard 5" Display with Keyless Start, Engine Temperature and Fuel Gauges, Hour meter, RPM and Warning Indicators. Includes maintenance interval notification, fault display, job codes, quick start, and security lockouts. Joystick, Manually Controlled with Lift Arm Float Lift Arm Support Parking Brake, automatic Power Steering with Tilt Steering Wheel Radiator Screen Rear Receiver Hitch Seat Belts, Shoulder Harness Spark Arrestor Muffler Suspension, 4-wheel independent Tires: 27 x 10.5-15 (8 ply), Lug Tread Toolcat Interlock Control System (TICS) Two -Speed Transmission Machine Warranty: 12 Months, unlimited hours Bobcat Engine Warranty: Additional 12 Months or total of 2000 hours after Initial 12 month wa rra my Deluxe Road Package M1225-P01-001 1 $2,316.00 $2,316.00 Deluxe Road Package includes: Backup Alarm, Turn Signals, Flashers, Tail Lights, Brake Lights, Rear view mirror, Side Mirrors, Horn, Rear work lights, and headlights 29 X 10.5 Trac Tire M1225-ROS-004 1 $436.80 $436.80 Attachment Control M1225-ROB-0O2 1 $188.80 $188.80 Power Bob-Tach M1225-R14-0O3 1 $879.20 $879.20 Radio Option M1225-R15-0O2 1 $426.40 $426.40 Traction Control M1225-R16-0O2 1 $436.00 $436.00 Engine Block Heater M1225-A01-0O2 1 $104.00 $104.00 Description Part No Qty Price Ea. Total Freight 1 $3,000.00 $3,000.00 Total of Items Quoted $61,052.80 1191A Dealer P.D.I. Freight Charges Dealer Assembly Charges Other Charges: Material and Logistics Quote Total - US dollars Notes: $150.00 $1,400.00 $0.00 $4,934.00 $67,536.80 *Prices per the Sourcewell Contract #040319-CEC. *Terms Net 60 Days. Credit cards accepted. *FOB Destination *State Sales Taxes apply. IF Tax Exempt, please include Tax Exempt Certificate with order. *TID# 38-0425350 *Orders Must Be Placed with: Clark Equipment Company dba Bobcat Company, Govt Sales, 250 E Beaton Drive, West Fargo, ND 58078. *Quote valid for 30 days ORDER ACCEPTED BY: SIGNATURE PRINT NAME AND TITLE DELIVERY ADDRESS: BILLING ADDRESS (if different than Ship To): DATE PURCHASE ORDER NUMBER TAX EXEMPT? YES NO Exempt in the State of Tax Exempt ID: FEDERAL- STATE - Expiration Date: 108 Resolution 2022-112 A Resolution of the City Council of the City of Seward, Alaska, Approving the Optional One -Year Extension to the Operating Contract as Amended by Amendment #4 between the City of Seward and Seward City Tours, And Appropriating Funds Documents: • Agenda Statement • Resolution 2022-112 • Attachments: o Resolution 2019-038 o Resolution 2018-042 o City of Seward and Seward City Tours Contract Amendment No. 1 o City of Seward and Seward City Tours Contract Amendment No. 2 o City of Seward and Seward City Tours Contract Amendment No. 3 o City of Seward and Seward City Tours Contract Amendment No. 4 o Professional Services Agreement with Seward City Tours, LLC for Seasonal Transportation Services and Related Services `SIR City Council Agenda Statement Meeting Date: November 14, 2022 To: City Council From: Janette Bower, City Manager Agenda Item: Resolution 2022-112 Approving the Optional One -Year Extension to the Operating Contract ss Amended by Amendment #4 Between the City of Seward and Seward City Tours, And Appropriating Funds Background and justification: The City of Seward's 2030 comprehensive plan specifically includes the provision of a seasonal shuttle bus service which will add to local small business growth. The City of Seward has provided for a shuttle bus service for this purpose since 2010 using funds from the Commercial Passenger Vessel Tax (CPV). The shuttle service has proven to be beneficial for visiting tourists, Seward community members, and local businesses. Seward City Tours and the City of Seward entered an operating agreement in 2018 to continue this valuable service to the community. The contract provided for services in 2018-2020, with two optional, one-year extensions. This resolution approves the final, one-year extension of the contract through 2023. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 8.2 Shuttle bus service Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 241,701 This legislation (✓): Creates revenue in the amount of: x Creates expenditure in amount of: Creates a savings in the amount of: Has no fiscal impact Funds are (✓): x Budgeted Line item(s) Not budgeted Not applicable $ 241,701 KPB CPV Account # 11113-0000-3710 Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Wat F1 Healthcare Motor Pool Other KPB CPV x $300,541.98 "[t, Unassigned Fund Balance*: $ *unaudited numbers Available Unrestricted Cash Balance*: $ Finance Signature: Attorney Review Yes Attorney Signature: ✓ Not applicable Comments: Administration Recommendation e✓ Approve Resolution Other: ISE Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2022-112 A Resolution of the City Council of the City of Seward, Alaska, Approving the Optional One -Year Extension to the Operating Contract as Amended by Amendment #4 between the City of Seward and Seward City Tours, And Appropriating Funds WHEREAS, in 2010, the City of Seward began providing a shuttle bus service between the Cruise Ship Terminal, the harbor, and historic downtown Seward; and WHEREAS, the shuttle service has proven to be beneficial for visiting tourists, Seward community members, and local businesses; and WHEREAS, Resolution 2018-042 approved the contract between the City of Seward and Seward City Tours for provision of shuttle bus services for 2018 and 2019; and WHEREAS, Resolution 2019-038 authorized Amendment No. 1 to the operating contract which increased the contract rate by $21,720, extended the term by two years, and added two optional one-year extensions pending City Council approval, and WHEREAS, the operating agreement for 2021 was reduced in the scope of services through Amendment No. 2 to the contract in response to the elimination of cruise ship visitation to Seward due to the COVID-19 pandemic; and WHEREAS, Resolution 2021-125 approved the extension of the operating agreement as modified by Amendment 92 through 2022 at the base level of $83,800 with the expectation that a supplemental resolution would be forthcoming, and WHEREAS, Resolution 2022-010 approved Amendment # 3 to the operating contract, which provided for the funding necessary to deliver services to the cruise ship visitation based upon the finalized sailing schedule, and WHEREAS, this resolution approves the final, one-year extension of the contract through 2023. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council hereby authorizes the City Manager to extend the contract, based upon the operational description in Amendment No. 3, between the City of Seward and Seward City Tours. Section 2. Funding in the amount of $241,701 is hereby transferred and appropriated `re: CITY OF SEWARD, ALASKA RESOLUTION 2021-112 in 2022 from the CPV fund 11113-0000-3710-0000-30051 to the Bus Transportation Fund Contracted Services account no. 30051-0000-7009. Section 3. This resolution shall take effect upon approval. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of November 2022. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou, MMC City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor imp.] Sponsored by: Regis CITY OF SEWARD, ALASKA RESOLUTION 2019-038 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING AMENDMENT NO. 1 TO THE SHUTTLE CONTRACT WITH SEWARD CITY TOURS IN AN ADDITIONAL AMOUNT NOT TO EXCEED $21,720 FOR THE OPERATION OF THE 2019 SEASONAL SEWARD SHUTTLE SUS SERVICE, EXTENDING THE CONTRACT TERM FOR TWO ADDITIONAL YEARS IN AN AMOUNT NOT TO EXCEED $430,226, AND ADDING TWO OPTIONAL ONE-YEAR EXTENSIONS PENDING COUNCIL APPROVAL, AND APPROPRIATING FUNDS WHEREAS, in 2010, the City of Seward began providing a shuttle bus service between the cruise ship terminal, the harbor and historical downtown Seward; and WHEREAS, the service has proved beneficial to the economic well-being of our community and is valued by the cruise ship industry, visitors, and residents alike; and WHEREAS, the City of Seward entered into a contract with Seward City Tours (SCT) on April 23, 2018 via Resolution 2018-042 for shuttle services for the 2018 and 2019 seasons in the amount of $362,411; and WHEREAS, payments for SCI's seasonal transportation services for 2018 equaled $226,507; and WHEREAS, scheduled payments for SCI's seasonal transportation services for 2019 will equal $135,904; and WHEREAS, the 2019 cruise ship schedule has additional challenges due to the increase in days vessels will be in port, as well as the number of port of calls. The number of cruise ships increased from 61 to 87, totaling 95 docking days; and WHEREAS, due to this increase, SCT has proposed an additional 362 hours of bus operation time at an additional cost of $21,720; and WHEREAS, additionally, administration and SCT agree to provide certainty to the contractor in order to replace a non -wheelchair accessible bus with an accessible bus by adding a two-year extension plus two additional one-year options to extend; and WHEREAS, SCT is proposing $430,226 ($268,891 in 2020 and $161,335 in 2121) for the additional two years; and WHEREAS, if exercised, each optional one-year extension will increase by 6% each "EII CITY OF SEWARD, ALASKA RESOLUTION 2019-038 year based on the average price per year in the 2020 and 2021 contract ($215,113) equaling $228,020 in 2022 and $241,701 in 2023; and WHEREAS, the shuttle bus has been funded from Commercial Passenger Vessel Excise Tax receipts ("Cruise Ship Tax") and this is an appropriate use of the funds; and WHEREAS, SCT intends to provide the same level of service in the upcoming years, as well as increasing the number of ADA compliant buses within their fleet: and WHEREAS, these services will facilitate the flow of visitors around the City of Seward during summer months to maximize the Seward experience and provide a means to assist cruise ship passengers with the transport of their luggage between the Dale R. Lindsey Alaska Railroad Intermodal Facility (i.e., Cruise Ship Terminal) and the Alaska Railroad Depot. 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 amend the contract between Seward City Tours and the City of Seward in substantial farm as attached hereto, in the additional amount of $21,720 for 2019 operations, totaling $157,624. Funding for this amendment is hereby appropriated as follows: $21,720 from the commercial passenger vessel proceeds account no. 11113-0000-3071-30051 to the Bus Transportation contracted services account no. 30051-0000- 7009. Section 2. The Seward City Council hereby authorizes the City Manager to exercise a two-year contract extension for the 2020 and 2021 shuttle seasons in an amount not to exceed $430,226. Funding for this contract extension is hereby appropriated as follows: $268,891 in 2020 and $161,335 in 2021 from commercial passenger vessel proceeds account no. 11113- 0000-3071-30051 to the Bus Transportation account no. 30051-0000-7009. Section 3. The city manager, pending council approval, is hereby authorized to approve two additional optional one-year extensions so long as each additional year does not exceed a 6% increase in expenditures based on the average per year contract amount for 2020 and 2021 ($215,113). Section 4. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22"d day of April, 2019. "&7 CITY OF SEWARD, ALASKA RESOLUTION 2019-038 THE CITY OF SEWARD, ALASKA David Squires, Mayor AYES: Lane, Horn, McClure, Towsley, Seese, Osenga, Squires NOES: None ABSENT: None ABSTAIN: None ATTEST: Ae:L h I � Brenda J. Bal au, MMC City Clerk •�ia�arrrrrs (City Sea ?C,` ` S AL r r t� • �,_/Ly� � i Y+ti f 1� f++++r+r e e ► s t�'►' IsM Agenda Statement Meeting Date: April 22, 2019 To: City Council From: Acting City Manager Norm Regis �A- Agenda Item: Amendment to the Shuttle Bus service contract with Seward City Tours BACKGROUND & JUSTIFICATION The City of Seward has contracted the operation of shuttle bus services since 2010. These services benefit pedestrians in Seward including ship passengers and crew and is funded utilizing Commercial Passenger Vessel Excise Tax receipts ("Cruise Ship Tax"). These services have proved beneficial to the economic well-being of our community and is valued by the cruise ship industry. The City of Seward entered into contract with Seward City Tours (SCT) on April 23, 2018 via Resolution 2018-042 in the amount of $362,411 for transportation services. To date, as specified in the contract, SCT has received $226,507. In 2019, SCT is scheduled to receive the remaining $135,904. The 2019 cruise ship schedule has additional challenges due to the increase in days vessels will be in port as well as the number of port of calls. The number of cruise ships in 2019 is increasing from 61 to 87 with a total of 95 docking days. Due to this increase, SCT has proposed an additional 362 hours of bus operation time for 2019 for an additional amount of $21,720. Administration and SCT have also identified the need to provide certainty to the contractor so as to replace a non -accessible bus with an accessible bus by adding a two-year extension for the 2020 and 2021 seasons as well as two optional one-year extensions. SCT has requested a 12% increase to the amended bid price for the two-year extension totaling $430,226 ($268,891 in 2020 and $161,335 in 2021). Additionally, each one-year extension, if exercised, would increase 6% per year based on the average yearly contract amount for 2020 and 2021 ($215,113). If awarded, the SCT contract for 2022 would equal $228,020 and 2023, $24L701. The shuttle bus has been funded from Commercial Passenger Vessel Excise Tax receipts ("Cruise Ship Tax") and this is an appropriate use of the funds. Seward City Tours intends to provide the same level of service in the upcoming years, as well as increasing the number of accessible busses in their fleet. These services will facilitate the flow of visitors around the City of Seward during summer months to maximize the Seward experience and provide a means to assist cruise passengers in transporting their luggage between the Dale Lindsey Cruise Ship Terminal and the Alaska Railroad Depot. INTENT: Approve the contract amendments for shuttle bus services with Seward City Tours. UU CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan Comprehensive Plan: 1. Economic Development and Transportation: Improve public X transportation between downtown and the harbor Strategic Plan: Foster a community with diverse transportation 2. facilities including road, rail, air, pedestrian and water routes that X meet the needs of residents , businesses and visitors. 3. Other (list): X FISCAL NOTE: The total funding required for these shuttle contract amendments is $451,946 and will be appropriated from the Commercial Passenger Vessel funds to the Bus Transportation Fund. Approved by Finance Department: ATTORNEY REVIEW: Yes X No RECOMMENDATION: Council approve Resolution 2019-038 authorizing the City manager to amend the contract with Seward City Tours to account for additional cruise ship activity and extend the term for an additional two years and two one-year options to extend and appropriate $451,946 cruise ship head tax funds. ON CONTRACT NO. C 18-042 AMENDMENT NO. 001 Agreement between the CITY OF SEWARD And SEWARD CITY TOURS, LLC SUBJECT: Transportation services for cruise ship passengers and other visitors, between the Seward Cruise Ship Port, the Alaska Railroad Seward Depot, the downtown business district and the Seward Boar Harbor in Seward, Alaska, authorized and subsequently amended as follows: Original Contract: 2019 Seasonal Transportation Services $135,904 approved by Resolution 2018- 042 on April 23,d, 2018 Beginning approximately May 17, 2018 and running the entire 2018 and 2019 tourist season, concluding at the end of the tourist season 2019 cruise ship schedule, or other date agreed by both parties pursuant to section 26.2 of this agreement Amendment No. 1: 2019 Seasonal Transportation Services $157,624 approved by Resolution 2019- on April 22na, 2019 2020 Seasonal Transportation Services $268,891 approved by Resolution 2019- on April 22nd, 2019 2021 Seasonal Transportation Services $161,335 approved by Resolution 2019- on April 22" d, 2019 *2022 Seasonal Transportation Services $228,020 approved by Resolution 2019- on April 22na, 2019 *2023 Seasonal Transportation Services $241,701 approved by Resolution 2019- on April 22na, 2019 Beginning approximately May 17, 2018 and running the entire 2018, 2019, 2020, and 2021 with one-year options to extend for the 2022 and 2023 tourist seasons, concluding at the end of the 2021, 2022 or 2023 cruise ship schedule, or other date agreed by both parties pursuant to section 26.2 of this agreement. *Indicates seasonal transportation service extensions if awarded by the City Manager as established in Resolution 2019- and funds are appropriated. i; SEWARD CITY TOURS, LLC By: Its: Ck-\ ap-1%(- CITY OF SEWARD Norm Regis, City Manager ATTEST: Brenda Ballou, City Clerk Date:1' Date Date A N PO BOX 2031 Seward, AK 99664 P. 907-231-5773 To Whom It May Concern, itt4�f11�i., .seta The 2018 Cruise Ship Season appears to have been a successful one for Seward operators. For SewardCityTours it was equally challenging and rewarding. The feedback rarnivari #rnm inralc anri tni irictc tinrac nvannrhalminnhi nnc.itivp ranarriinn tha F-rap qhi Ittim anri we look forward to improving our service for the 2019 year. The 2019 cruise ship schedule has additional challenges due to the increase in days vessels will be at port as well as the number of port of calls these additional ships have crharii ilari Thin ci Arian anri i inavnartari inrrP A zo in Wnrk is ci7ahiP onni inh to Winrrant a rhannQ order as the scope of work has increased. Based on the `Contractor's Proposal' by SewardCityTours referenced in the signed "Professional Services Agreement with SewardCityTours, LLC for Seasonal Transportation Services and Related Services" bus hours in additional to the original scope of work are to be charged at the rate of $751hour. There is an additional 362 hours of bus operation time due to the increase in work for 2019. Based on the agreed contract these 362 hours total $27,150. Inevitably some change is to be expected between any two years of operation and so SewardCityTours will cover 20% of the increase in scope for the 2019 season. This reduces the cost by $5,430 to a new total of Not covered in the 'Contractor's Proposal' is an additional hourly cost for an expeditor when one is required to be present at the cruise ship terminal on heavy passenger days or double ship days as defined in the RFR SewardCityTours will have an additional 24 hours of expeditor costs at a rate of $351hour. Because this was not addressed in the proposal 1 Apw rri(`itNiTni irc +.Nil! acgl imp thPga rusts totalinn BRA() tnr tha MC) caacnn m PO BOX 2031 Seward, AK 99664 P. 907-231-5773 The graph below shows the additional hours for both bus operations and expeditor operations and their associated costs. As mentioned above the expeditor costs have been removed from the final total. u -i y Add'I Bus Hours Add'I Exp. Hours f i ours 362 24 Total Less Expeditor Costs Mai C;osl $27,150 $840 $27,990 $840 i_ess -0 Total Cost Increase $21,720 I look forward to discussing this further with the city and council members so it can be fina117Pri nrinr to tho haninninri of the ')010 rri iicP chin caaznn Plaaczp lat mp knn�.ai if fhn n anything more that I can do to help expedite the process. Jonah Swiderski Owner/Operator SewardCityTours � Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2018-042 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CONTRACTING WITH SEWARD CITY TOURS FOR OPERATION OF THE SEASONAL SEWARD SHUTTLE BUS SERVICE, IN AN AMOUNT NOT TO EXCEED $362,411, AND APPROPRIATING FUNDS WHEREAS, in 2010 Seward began providing a shuttle bus service between the cruise ship terminal, the harbor and historical downtown Seward; and, WHEREAS, the service has proved beneficial to the economic well-being of our community and is valued by the cruise ship industry; and, WHEREAS, Seward intends to provide the same level of service in 2018 and 2019; and WHEREAS, in accordance with Seward City Code 6.10.310 the City of Seward released a request for proposals on March 28, 2018 to include all the cost associated with providing the services; and WHEREAS, Seward City Tours was the successful proposer; and WHEREAS, the shuttle bus has been funded from Commercial Passenger Vessel Excise Tax receipts ("Cruise Ship Tax") and this is an appropriate use of the funds; and WHEREAS, these services will facilitate the flow of visitors around the City of Seward during summer months to maximize the Seward experience and provide a means to assist cruise passengers transport their luggage between the Dale Lindsey Cruise Ship Terminal and the Alaska Railroad Depot. 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 between Seward City Tours and the City of Seward in substantial form as attached hereto, with 2018 and 2019 operations not to exceed $362,411. Section 2. The Seward City Council hereby appropriates the amount of $362,411 from the commercial passenger vessel proceeds account no. 11113-0000-3071-30051 to the Bus Transportation contracted services account no. 30051-0000-7009. Section 3. This resolution shall take effect immediately upon adoption. CITY OF SEWARD, ALASKA RESOLUTION 2018-042 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23`d day of April, 2018. THE CITY OF SEWARD, ALASKA David Squires, Mayor AYES: Casagranda, Keil, McClure, Slater, Horn, Towsley, Squires NOES: None ABSENT: None ABSTAIN: None ATTEST: Brenda J. Ballou, MMC City Clerk ;S%a easse , (City Seal) ,. OF cutv O 1yc/: 1 �Q 1�` •.i Y �I� a � _ ° w� Y a° , ���sernaesas�a4 4R Council Agenda Statement Meeting Date: April 23, 2018 Through: Jim Hunt, City Manager From: Ron Long, Assistant City Manager Agenda Item: Shuttle bus service contract with Seward City Tours BACKGROUND & JUSTIFICATION: The City of Seward has contracted out for the operation of a shuttle bus service since 2010. The service benefits pedestrians in Seward including ship passengers and crew and is funded utilizing Commercial Passenger Vessel Excise Tax receipts ("Cruise Ship Tax"). In accordance with Seward City Code and as reported to council, a Request for Proposals was prepared to issue the contract for the summers of 2018 and 2019. The request solicited qualified firms to provide transportation services to cruise ship passengers and other visitors, between the Seward Cruise Ship Port, the Alaska Railroad Seward Depot, the downtown business district, and the Seward Boat Harbor from May 17, 2018 through September 26, 2018, and then approximately equivalent dates in 2019. The RFP required no addenda. There were a total of five plan holders for the RFP. Two proposals were submitted by the deadline and two were judged to be responsive and reviewed by the selection team using the criteria reported to Council. Se,,v and City Tours obtained the highest points and is the selection team°s recommendation as the transportation services firm. A draft contract is attached. Services for the shuttle are scheduled to begin \1a% 17, 2018. INTENT: Approve a contract for shuttle bus services with Seward City Tours. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): Economic Development 1 and Transportation: Improve public transportation between downtown X and the harbor Strategic Plan (document source here): Foster a community with diverse ' 2 transportation facilities including road, rail, air, pedestrian and water X routes that meet the needs of residents, businesses and visitors. 3 Other Gist): X FISCAL NOTE: The total of funding required for the shuttle program, $362,411 will be appropriated from the Commercial Passenger Vessel funds to the Bus Transportation Fund. Approved by Finance Department: ATTORNEY REVIEW: Yes X_ No _ The City Attorney reviewed and provided comments for the draft contract that is attached. RECOMMENDATION: City Council approve Resolution 2018- 01-4uthorizing the City Manager to enter into a contract with Seward City Tours and appropriate $362,411 of cruise ship head tax funds for the 2018-2019 shuttle bus service contract. Professional Services Agreement with Seward City Tours, LLC for Seasonal Transportation Services and Related Services This AGREEMENT, made and entered into this 23rd day of April, 2018 by and between the CITY OF SEWARD, a home rule municipal corporation located within the Kenai Peninsula Borough and organized under the laws of the State of Alaska, hereinafter referred to as the "City" and Seward City Tours, LLC authorized to do business in Alaska, with offices located at PO Box 2031, Seward, AK 99664, hereinafter referred to as the "Contractor." WITNESSETH WHEREAS, the City of Seward wishes to enter into a contract with an independent contractor to provide transportation services for cruise ship passengers and other visitors, between the Seward Cruise Ship Port, the Alaska Railroad Seward Depot, the downtown business district and the Seward Boat Harbor in Seward, Alaska; and WHEREAS, in response to a request for proposals, Seward City Tours, LLC submitted a proposal asserting it is qualified to perform these services and able to do so in a timely manner; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: 1.0 DEFINITIONS 1.1 "Agreement" shall mean this Professional Services Agreement, including: Exhibit B — City's request for proposals dated March 28, 2018, (collectively, "UP"). 1.2 "Change Order" is an addition to, or reduction of, or other revision approved by the City in the scope, complexity, character, or duration of the services or other provisions of this Agreement. 1.3 "City" shall mean the City of Seward, Alaska. 1.4 "Contracting Officer" shall mean Assistant City Manager, Ron Long, and include any successor or authorized representative. 1.5 "Project" shall mean the transportation and other tasks related to the transportation of cruise ship passengers, crew and other visitors, between the Seward Cruise Ship Port, the Alaska Railroad Seward Depot, the Page 1 of 9 `A downtown business district and the Seward Boat Harbor in Seward, Alaska as further described in the RFP issued by the City of Seward on March 28, 2018. 2.0 TERM OF AGREEMENT. This Agreement shall take effect upon execution. This Agreement shall remain in full force and effect until the Project has been completed and further, until all claims and disputes have been concluded. The work is considered complete when the City has received and found acceptable the finished product of all work described in 4.0 Scope of Services or changes thereto. This date is not necessarily the Completion Date as described in 5.0 Completion Date. This Agreement may be amended only in writing and upon compliance with all applicable statutes, ordinances, and regulations. 3.0 FEES. 2018 Seasonal Transportation Services $ 226,507 2019 Seasonal Transportation Services $ 135,904 Fees to be paid pursuant to schedule in Contractors' accepted price proposal, said fees will be paid 30 days after approval of contract. 4.0 SCOPE OF SERVICES. The City and Contractor have agreed upon a scope of work described in the Contractor's proposal, in response to the RFP issued by City dated March 28, 2018, to provide professional services based on approved standards and instructions as specifically described in the same RFP. This Scope of Services can only be changed in writing pursuant to Section 26.0 of this Agreement. 5.0 SCHEDULE FOR COMPLETION. The schedule for completion for all services described herein shall be as follows: Beginning approximately May 17, 2018 and running the entire 2018 and 2019 tourist season, concluding at the end of the tourist season 2019 cruise ship schedule, or other date agreed to by both parties pursuant to section 26.2 of this agreement. 6.0 PERSONNEL/ORGANIZATION 6.1 Key Personnel. Work and services provided by the Contractor will be performed by: Seward City Tours, LLC Jonah Swiderski. 6.2 Changes in Key Personnel. The Contractor shall give the City reasonable advance notice of any necessary substitution or change of key personnel and shall submit justification therefore in sufficient detail to permit the City to evaluate the impact of such substitution on this Agreement. No substitutions or other changes shall be made without the written consent of the City. Page 2of9 7.0 STANDARD OF PERFORMANCE. The Contractor agrees to provide all required professional services to complete the project and any additions or changes thereto. The Contractor accepts the relationship of trust and confidence established between it and the City by this Agreement. The Contractor covenants with the City to furnish its best skill and judgment, and to further the interest of the City at all times through efficient business administration and management. The Contractor shall provide all services in a competent manner. It is understood that some of the services to be rendered hereunder require professional judgment and skill. In those cases, the Contractor agrees to adhere to the standards of the applicable profession. 8.0 TIMELINESS OF PERFORMANCE. Time is of the essence in this Agreement. Contractor's failure to meet any such deadlines or required performance may adversely imperil other contractual obligations of the City. If the Contractor fails to deliver the services by May 17, 2018, Contractor shall pay as liquidated damages and not as penalty $ 500 per day for each day after May 17, 2018 the services are not delivered. 9.0 COMPLIANCE WITH LAWS. The Contractor shall be familiar with and at all times comply with and observe all applicable federal, state and local laws, ordinances, rules, regulations, and executive orders, all applicable safety orders, all orders or decrees of administrative agencies, courts, or other legally constituted authorities having jurisdiction or authority over the Contractor, the City, or the service which may be in effect now or during performance of the services. Contractor shall have a Seward and State of Alaska Business License. 10.0 INDEMNITY. The Contractor shall indemnify, defend, and hold and save the City, its officers, agents and employees harmless from any claims or liability of any nature or kind including costs and expenses (including attorneys' fees), for or on account of any and all legal actions or claims of any character whatsoever alleged to have resulted from injuries or damages sustained by any person or persons or property (including contract rights or intangible assets) and arising from, or in connection with, performance of this Agreement, and caused in whole or in part by any negligent act or omission of the Contractor; provided, however, that this paragraph shall not be construed so as to require indemnification of the City from such claims, damages, losses, or expenses caused by or resulting from the negligence of the City. 11.0 INSURANCE. The Contractor understands that no City insurance coverage, including Workers' Compensation, is extended to the Contractor. The Contractor shall at all times maintain adequate (commercially reasonable coverage levels) insurance covering Workers' Compensation, general commercial liability, automobile liability, and property damage including a contractual liability endorsement covering the liability created or assumed under this Agreement. The Contractor shall not commence work under this Agreement or any work on Page 3 of 9 1m any phase of the Project until the Contractor provides the City with certificates of insurance evidencing that all required insurance has been obtained. These insurance policies and any extension or renewals thereof must contain the following provisions or endorsements: a. City is named as an additional insured for all liability coverages, b. City will be given thirty (30) days prior notice of cancellation or material alteration of any of the insurance policies, c. Insurer waives all rights of subrogation against City of Seward and its employees or elected officials, d. Any deductibles or exclusions in coverage will be assumed by the Contractor, for account of, and at the sole risk of the Contractor. The minimum amounts for each type of insurance shall be no less than the following: a. Commercial General Liability Insurance on an "occurrence basis" with limits of liability not less than $ 5 Million per occurrence and $ 5 Million aggregate combined single limit, personal injury, bodily injury and property damage, b. Motor Vehicle Liability Insurance for all owned, hired and non -owned vehicles, including no-fault coverage with limits of liability not less than $5,000,000 per occurrence combined with single limit Bodily Injury and Property Damage, c. Workers Compensation as required by Alaska law, AS 23.30.045 and regulations adopted thereunder. Upon request, Contractor shall permit the City to examine any of the insurance policies specified herein. The minimum amount and types of insurance provided by the contractor shall be subject to revision at the City's request in order to provide continuously throughout the term of the Agreement a level of protection consistent with good business practice and accepted standard of the industry. 12.0 GOVERNING LAW. The laws of Alaska will determine the interpretation, performance and enforcement of this Agreement. 13.0 OWNERSHIP OF WORK PRODUCTS. Payment to the Contractor for services hereunder include full compensation for all work products and other materials produced by the Contractor and its subcontractors pertaining to this Agreement. Page 4 of 9 1W The originals of all material prepared or developed by the Contractor or its employees, agents, or representatives hereunder, including documents, drawings, designs, calculations, maps, sketches, notes, reports, data, models, computer tapes, and samples shall become the property of the City when prepared, whether delivered or not, and shall, together with any materials furnished the Contractor and its employees, agents, or representatives by the City hereunder, be delivered to the City upon request and, upon termination or completion of this Agreement. Materials previously created and copyrighted by the Contractor included in this project will remain property of the Contractor. Copies will be made available to the City upon request. Materials purchased from and copyrighted by third parties are not included in this provision. 14.0 PATENTS, TRADEMARKS, AND COPYRIGHTS. The Contractor agrees to defend, indemnify, and save the City harmless from and against any and all claims, costs, royalties, damages and expenses of any kind of nature whatsoever (including attorneys' fees) which may arise out of or result from or be reasonably incurred in contesting any claim that the methods, processes, or acts employed by the Contractor or its employees in connection with the performance of services hereunder infringes or contributes to the infringement of any letter patent, trademark, or copyright. In case such methods, processes, or acts are in suit held to constitute infringement and use is enjoined, the Contractor, within reasonable time and at its own expense, will either secure a suspension of the injunction by procuring for the City a license or otherwise, or replace such method, process, etc., with one of equal efficiency. 15.0 NONWAIVER. No failure of the City or Contractor to insist upon the strict perfor- mance by the other of any of the terms of this Agreement or to exercise any right or remedy herein conferred shall constitute a waiver or relinquishment to any extent of its rights to rely upon such terms or rights on any future occasion. Each and every term, right, or remedy of this Agreement shall continue in full force and effect. 16.0 SAFETY/PERFORMANCE. The Contractor shall perform the work in a safe and workmanlike manner. The Contractor shall comply with all federal and state statues, ordinances, orders, rules, and regulations pertaining to the protection of workers and the public from injury or damage and shall take all other reasonable precautions to protect workers and the public from injury or damage. 17.0 SUSPENSION OR TERMINATION. 17.1 Fault Termination or Suspension. This Agreement may be terminated by either party upon ten (10) days written notice if the other party fails substantially to perform in accordance with its terms. If the City terminates this Agreement it will pay the Contractor a sum equal to the percentage of work completed and accepted by the City that can be substantiated by the Contractor and the City, offset by any amounts owed to the City. Page 5 of 9 1EW However, within the ten (10) day Notice of Intent to terminate the party in default shall be given an opportunity to present a plan to correct its failure, 17.2 Convenience Suspension or Termination. The City may at any time terminate or suspend this Agreement for any reason including its own needs or convenience. In the event of a convenience termination or suspension for more than six (6) months, the Contractor will be compensated for authorized services and authorized expenditures performed to the date of receipt of written notice of termination or suspension. No fee or other compensation for the uncompleted portion of the services will be paid, except for already incurred indirect costs which the Contractor can establish and which would have been compensated but because of the termination or suspension would have to be absorbed by the Contractor without further compensation. 17.3 Activities Subsequent to Receipt of Notice of Termination or Suspens Immediately upon receipt of a Notice of Termination or suspension and except as otherwise directed by the City or its Representative, the Contractor shall: a. stop work performed under this Agreement on the date and to the extent specified in the Notice; and b. transfer title to the City (to the extent that title has not already been transferred) and deliver in the manner, at the times, and to the extent directed by the City's representative, work in progress, completed work, supplies, and other material produced as a part of, or acquired in respect of the performance of the work terminated or suspended by the Notice. 18.0 EQUAL EMPLOYMENT OPPORTUNITY. The Contractor shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, or because of age, physical handicap, sex, marital status, change in marital status, pregnancy, or parenthood when the reasonable demands of the position do not require distinction on the basis of age, physical handicap, sex, marital status, changes in marital status, pregnancy, or parenthood. The Contractor shall take affirmative action required by law to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, national origin, ancestry, age, or marital status. 19.0 NO ASSIGNMENT OR DELEGATION. The Contractor may not assign, subcontract or delegate this Agreement, or any part of it, or any right to any of the money to be paid under it without written consent of the Contracting Officer. 20.0 INDEPENDENT CONTRACTOR. The Contractor shall be an independent Page 6 of 9 im contractor in the performance of the work under this Agreement and shall not be an employee or agent of the City. 21.0 PAYMENT OF TAXES. As a condition of performance of this Agreement, the Contractor shall pay all federal, state and local taxes incurred by the Contractor and shall require their payment by any other persons in the performance of this Agreement. 22.0 PRECEDENCE AND DIVISIBILITY. The provisions of this Agreement shall fully govern the services performed by the Contractor. If any term, condition, or provision of this Agreement is declared void or unenforceable, or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. 23.0 ENTIRE AGREEMENT. This Agreement contains the entire agreement between the parties as to the services to be rendered by the Contractor. All previous or concurrent agreements, representations, warranties, promises, and conditions relating to the subject matter of this Agreement are superseded by this Agreement. 24.0 COMPLETION OF WORK, TERM OF AGREEMENT. The Contractor shall perform all work in a timely fashion, and in accordance with the schedules included in this Agreement and Exhibits. 25.0 CLAIMS AND DISPUTES. Venue for all claims and disputes under this Agreement, if not otherwise resolved by the parties, shall be in the appropriate Alaska State court in Anchorage, Alaska. 26.0 CHANGES IN SCOPE OF WORK. 26.1 General. No claim for additional services not specifically provided in this Agreement will be allowed, nor may the Contractor do any work or furnish any materials not covered by the Agreement unless the work or material is ordered in writing by the Contracting Officer. Preparation of Change Orders and design changes, due to errors and/or omissions by the Contractor, will be done at the sole expense of the Contractor. 26.2 Changes in Scope of Work. The City or its representative may, at any time, by a written Change Order delivered to the Contractor, make changes to the scope of work, or authorize additional work outside the scope of work, or the schedule for completion. 26.3 Compensation to the Contractor. If any Change Order for which compensation is allowed under this Article causes an increase or decrease in the estimated cost of, or time required for, the performance of any part of the work under this Agreement, or if such change otherwise Page 7 of 9 16sB affects other provisions of this Agreement, an equitable adjustment will be negotiated. Such an adjustment may be: a. in the estimated cost or completion schedule, or both; b. in the amount of fee to be paid; and c. in such other provisions of the Agreement as may be affected, and the Agreement shall be modified in writing accordingly. 26.4 Any claim by the Contractor for adjustment under this section must be asserted within fifteen (15) days from the day of receipt by the Contractor of the notification of change; provided, however, that the City or its representative, deciding that the facts justify such action, may receive and act upon any such claim asserted at any time prior to final payment under this Agreement. Failure to agree to any adjustment shall be a dispute within the meaning of Section 25.0 of this Agreement. 27.0 LIMITATION OF FUNDS. 27.1 At no time will any provision of this Agreement make the City or its representative liable for payment for performance of work under this Agreement in excess of the amount that has been appropriated by the City Council and obligated for expenditure for purposes of this Agreement. 27.2 Change orders issued pursuant to Section 26 of this Agreement shall not be considered an authorization to the Contractor to exceed the amount allotted in the absence of a statement in the change order, or other modification increasing the amount allotted. 27.3 Nothing in this Section shall affect the right of the City under Section 17 to terminate this Agreement. 28.0 PRIOR WORK. For the purposes of this Agreement, work done at the request of the City or its representative before execution of this Agreement shall be deemed to be work done after its execution and shall be subject to all the conditions contained herein. 29.0 NOTICES. Any notices, bills, invoices, or reports required by the Agreement shall be sufficient if sent by the parties in the United States mail, postage paid, to the address noted below: City of Seward City Manager PO Box 167 Seward, Alaska 99664-0167 Seward City Tours, LLC Jonah Swiderski PO Box 2031 Seward, Alaska 99664-2031 Page 8 of 9 164 IN WITNESS WHEREOF, the parties have executed this Agreement. City of Seward By: Jinn Hunt Title: City Man ger Date: 2 ATTEST: Bknd--g Ballou, M City Clerk 00 �1 ® sie fir► ° RP O14 s� (City Seal+ �: p SEA = o A p �' A '"•r• .i" pe4'�'y� OF Seward City Tours, LLC 2_J2 L __ By: Jona w i d e r s k i Tit : Owner Date: yr'g Page 9 of 9 1m CITY OF SEWARD, ALASKA Sponsored by: Dower RESOLUTION 2021-125 A RES01,UT10N OF TIIE CITY COUNCIL ❑F THE CITY OF SE"'AR1), ALASKA, APPRON1NC THE OPTIONAL ONE -PEAR EXTENSION TO THE OPERATING CONTRAC'f AS AMENDED BY A11ENDMENT #2 BETWEEN T I I E CIT1' ❑F SEW ARD AND SEWARD CITY TOL RS, AND APPROPRIATING FUNDS WIIF.REAS, in 2010, the City of Seward began providing a shuttle bus service betwecn the Cruise Ship Terminal, the harbor, and historic downtown Seward; and WHEREAS, the shuttle service has proven to be of a benefit to visiting tourists, Seward community members, and local businesses, and WHEREAS, Resolution 201 S-042 approved the contract between the City of Seward and Seward City Tours for provision of'shutdc hus services for 1-0 18 and 2019; and WHEREAS, Resolution 2019-038 authorized Amendment No. 1 to the operating contract which increased the contract rate by S21,720, extended the term by two years, and added two optional one -gear extensions pending City Council approval: and WHEREAS, the operating agreement for 2021 was reduced in the scope of services through Amendment No. 2 to the contract in response to the elimination of cruise ship visitation to Seward clue to tlrc COViD-19 pandemic: and WHEREAS, the amount paid i'?r the operating, a-,recmcnt in 2021 based upon Amendment No. 2 was SS N..SOO; and W l I E REAS, there is not vet ccrtainty or how many cruise ships will visit Seward in 2022; and WHEREAS, no later than February 1, 2022, the City Manager will bring a follow up resolution before the City Council to decide on whether the contract will be expanded; and WHEREAS, the above -described resolution will be based upon the proicctcd level of cruise ship visitation in 2022. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council hereby authorizes the City Manager to extend the contract. based upon the operational description in Amendment No. 2, between the City of Seward and Seward C'itv Tours. CITY OF SEWARD, ALASKA RESOLUTION 2021-125 Section 2. Funding in the amount of $83.800 is hereby transferred and appropriated in 2022 from the CPV fund 11103-0000-3710-0000-30051 to the Bus Transportation Fund Contracted Serf ices account no. 30051-0000-700Q. Section 3. This resolution shall take effect upon approval. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 81h day of Noy cmhel- 2021. A Y L S: McClure, DeMoss, Casagranda, Calls, N 0 IL S: None ABSL, N T: Osenga ABSTAIN: None VACANT: One ATTEST: Brenda J. BalWu, MMC' City Clerk (City Seal) 44sChas,,* of SE IV =• SEAL E a as++aarr�r■tr�a I6Y1 City Council Agenda Statement Meeting Date: November 8, 2021 To: City Council From: Janette Bower, City Manager Agenda Item: Resolution 2021:125: Approving the Optional One -Year Extension to the Operating Contract As Amended by Amendment #2 Between the City of Seward and Seward City Tours, And Appropriating Funds Background and justification: The City of Seward's 2030 comprehensive plan specifically includes the provision of a seasonal shuttle bus service which will add to local small business growth. The City of Seward has provided for a shuttle bus service for this purpose since 2010 using funds from the Commercial Passenger Vessel Tax (CPV). No CPV funds will be received by the City for fiscal years 2020 and 2021 due to a lack of cruise ship visitation. The projected balance for the CPV accounts by the completion of 2023 is $1,313,444. This figure is based upon the known expenditures and projected usage of CPV funds. Many of the passengers use this service to travel from the Cruise Ship Dock to downtown Seward. This in turn has a positive impact on many businesses in Seward. The shuttle service has proven to be of a benefit to visiting tourists, Seward community members, and local businesses. Seward City Tours and the City of Seward entered an operating agreement in 2018 to continue this valuable service to the community. In 2019, the contract was amended via Amendment No. 1 to extend the agreement, increase the contract rate, and allow for the City Manager to bring a resolution to City Council for extensions in 2022 and 2023. The COVID-19 pandemic caused the cruise ship industry to be unable to visit Seward in 2020 and 2021. Amendment No. 2 was agreed to by both parties on May 4, 2021, and reduced the scope of service to daily service from 11 am to 6 pm starting at the train depot and providing transportation for visitors to access the historical downtown district. The amendment reduced the rate from $161,335 to $83,800. As of Fall 2021, it remains unclear as to whether cruise ships will be coming to Alaska in 2022. However, it is desirable for the service to remain intact, while at a lower operating level, regardless of cruise ship tourism. By February of 2022, the City Manager will bring a follow up resolution before the City Council with a recommendation, based upon the likelihood of cruise ship visitation, to either retain the lower level of service in line with 2021 operations, or to increase the contract to the level of service as it occurred in 2018 and 2019. Consistency checklist: Comprehensive Plan: Item 8.2 from the Seward 2030 Comprehensive Plan includes the operation of a seasonal shuttle bus that provides service between the railroad depot, cruise ship terminal, and downtown. Fiscal note: 148 Payment schedule: • 25% of the contract is paid upon approval • Remaining balance is invoiced NTE 30 in four payments due June 1, July 1, August 1, and September 1, 2022. Funding for this contract comes from the Commercial Passenger Vessel Tax Fund 11103. There are sufficient funds available for this contract extension and revenues will resume in 2023 after the completion of the 2022 cruise ship season. Finance Department approval:`�` Attorney Review✓: Yes ❑ No X❑ Not applicable ❑ Recommendation City Council approve Resolution 2021- 125. 192 CONTRACT NO. C18-042 AMENDMENT NO. 02 Agreement between the CITY OF SEWARD And SEWARD CITY TOURS, LLC SUBJECT: Transportation services for cruise ship passengers and other visitors, between the Seward Cruise Ship Port, the Alaska Railroad Seward Depot, the downtown business district and the Seward Boar Harbor in Seward, Alaska, authorized and subsequently amended as follows: Original Contract: - 2019 Seasonal Transportation Services $135,904 approved by Resolution 2018- 042 on April 2.31d 2018 - Beginning approximately May 17. 2018 and running the entire 2018 and 2019 tourist season, concluding at the end of the tourist season 2019 cruise ship schedule. or other date agreed by both parties pursuant to section 26.2 of this agreement - 2021 Seasonal Transportation Services $161,335 approved by Resolution 2019- 038 onApril 22`"d ?o19 - *2022 Seasonal Transportation Services $228,020 approved by Resolution 2019-038 on April 22nd 2019 *2023 Seasonal Transportation Services $241,701 approved by Resolution 2019- 038 on April 22nd 2019 Amendment No. 2 • 2021.Season Transportation Services for limited service in the amount of 83,800 due to Covid-19 • Invoices will be issued for services rendered with passenger numbers. Invoices will be paid 30 days after receipt. • Daily service from I l am to 6pm starting at the train depot and providing transportation for visitors to access the historical downtown district. Many small business owners as well as the Alaska Sea Life Center greatly depend on the shuttle service to bring traffic from the Harbor. This option works with the Alaska Railroad's departure and arrival times to maximize optimal use of transportation needs. Beginning approximately May 14, 2021 and running the entire 2021 with one-year options to extend for the 2022 and 2023 tourist seasons. concluding at the end of the 2021, 2022 or 2023 cruise ship schedule, or other date agreed by both parties pursuant to section 26.2 of this agreement. 'Indicates seasonal transportation sere ice extensions if awarded by the Cite Manager as established in Resolution 2019-038 and funds are appropriated. 148 SEWARD CITY TOURS, LLC 4ZXV-uL- Jonah %viderski- Owner CITY OF SEWARD Norm Regis.City Manager ATTEST: Date Date EaAaBalloul City 'lerk fiat `aw"s% aa#jo," ~ M A 6 La e ■ rdsteam .aaaa 5/4/2Q21 146 Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2022-010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING AMENDMENT #3 TO THE OPERATING CONTRACT BETWEEN THE CITY OF SEWARD AND SEWARD CITY TOURS WHEREAS, in 2010, the City of Seward began providing a shuttle bus service between the Cruise Ship Torminal, the harbor, and historic downtown Seward; and WI -I EREAS, the shuttle service has prow cn to be of a benefit to visiting tourists, Scwward community members, and local businesses; and NN HEREAS, Resolution 2018-042 approved the contract betwect1 the City of Seward and Seward City Tours for provision of shuttle bus scrviccs for 2018 and 2019; and WHEREAS, Resolution 2019-038 authori7cd Amendment No. 1 to the operating contract which increased the contract rate by $21.720, extended the term by two years, and added two optional one-year extensions pending City Council approval; and WHEREAS, the operating agreement for 2021 was reduced in the scope of services through Amendment No. 2 to the contract in response to the elimination of cruise ship visitation to Sc xard clue to the COV I D-19 pandemic; and VI H E RECA,S, the amount paid for the operating agreement in 2021 based upon Amendment No. 2 twas SS3,800; and NN'HEREAS, Resolution 2021-125 approved the extension of the operating agreement as modified by Amendment No. 2 through 2022 at the base level of $83,800 with the expectation that a supplemental resolution would be tOrthcoming should the City expect to receive a iiormal level of cruise ship visitation in 2021 tend WIIEREAS, current market conditions indicate that the City of Seward will receive 99 or more cruise ships in calendar year 2022: and WHEREAS, Resolution 2019-038 anticipated 2022 cost of service for the Seward City Tours contract to be $228,020 based upon forecasted cruise sliip visitation levels; and NN'HEREAS, Amendment No. 3 to the operating agreement returns the level of services to be consistent %kith 99 or more cruise ships and their associated increase in ridership and increases the level of' t'unclii7�-, accordingly. NONN7, THEREF ORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY ICy: CITY OF SEWARD, ALASKA RESOLUTION 2022-010 OF SEWARD, ALASKA that: Section 1. The City Council hereby authorizes the ('ity Manago, to extend the contract, based upon the operational description in Amendment No. 3, between the. City of Seward and Seward City Tours. Section 2. Funding i1i the amount of'S144,220 is herehy Iranslerred and appropriated in 2022 from the CPV fund 11103-0000-3710-0000-30051 to the Bus Transportation Fund Contracted Services account no. 30051-0000-7009. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the ('ity COL1I1C1 of the City of Seward, Alaska, this 241� day nt'.lanl.l iry. ?Il'_2. r THE,.=C V1'Y 0 F SE WARD, A1[,ASKA AYES: Osenga, Calhoon, DeMoss, McClure, Terry NOES: None ABSENT: Wells, Casagranda ABSTAIN: None ATTEST: Brenda J. Ball , MMC City Clerk (City Sea40-",""'t"", OF ;" G� Gp�aR�T�;s � ••: r SEAL i 10 OF •+q+asr"%%'A 143 City Council Agenda Statement Meeting Date: January 24, 2022 To: City Council From: Janette Bower, City Manager Agenda Item: Resolution 2022-010: Approving Amendment No. 3 to the Operating Contract Between the City of Seward and Seward City Tours Background and justification: The City of Seward's 2030 comprehensive plan specifically includes the provision of a seasonal shuttle bus service which will add to local small business growth. The City has provided for a shuttle bus service for this purpose since 2010 using funds from the Commercial Passenger Vessel Tax (CPV). No CPV funds will be received by the City for fiscal years 2020 and 2021 due to a lack of cruise ship visitation. Many of the passengers use this service to travel from the Cruise Ship Dock to downtown Seward. This in turn has a positive impact on many businesses in Seward. The shuttle service has proven to be of a benefit to visiting tourists, Seward community members, and local businesses. Seward City Tours and the City of Seward entered an operating agreement in 2018 to continue this valuable service to the community. In 2019, the contract was amended via Amendment No. 1 to extend the agreement, increase the contract rate, and allow for the City Manager to bring a resolution to City Council for extensions in 2022 and 2023. The COVID-19 pandemic caused the cruise ship industry to be unable to visit Seward in 2020 and 2021. Amendment No. 2 was agreed to by both parties on May 4, 2021, and reduced the scope of service to daily service from 11 am to 6 pm starting at the train depot and providing transportation for visitors to access the historical downtown district. The amendment reduced the rate from $161,335 to $83,800. Resolution 2021-125 approved the extension of the operating agreement as modified through Amendment No. 2 in 2022 at the base level of $83,800 with the expectation that a supplemental resolution would be forthcoming should the City expect to receive a normal level of cruise ship visitation in 2022. Amendment No. 3 fulfills the commitment to provide for a return to a normal level of service based upon the expectation that Seward will receive 99 cruise ships in 2022. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Item 8.2 from the Seward 2030 Comprehensive Plan specifically includes the Plan: operation of a seasonal shuttle bus that provides service between the railroad depot, cruise ship terminal, and downtown Strategic Plan: Other: 144 Certification of Funds Total amount of funds listed in this legislation: $ This legislation (✓): Creates revenue in the amount of: x Creates expenditure in amount of: Creates a savings in the amount of Has no fiscal impact Funds are (✓): RxBudgeted Line item(s): Not budgeted $ 144,220 Finance Signature:-``fV"` Attorney Review✓ Administration Recommendation RxYes x Adopt Resolution Not applicable Other: `« Amendment No. 3 Amendment No. 3 to the agreement between the City of Seward and Seward City Tours., dated April 23, 2018 follows: WHEREAS, Resolution 2018-042 approved the contract between the City of Seward and Seward City Tours for provision of shuttle bus services for 2018 and 2019; and WHEREAS, the shuttle service has proven to be of a benefit to visiting tourists, Seward community members, and local businesses; and WHEREAS, Resolution 2019-038 authorized Amendment No. 1 to the operating contract which increased the contract rate by $21,720, extended the term by two years, and added two optional one-year extensions pending City Council approval; and WHEREAS, the operating agreement for 2021 was reduced in the scope of services through Amendment No. 2 to the contract in response to the elimination of cruise ship visitation to Seward due to the COVID-19 pandemic; and WHEREAS, Resolution 2021-125 approved the extension of the operating agreement as modified by Amendment No. 2 through 2022 at the base level of $83,00 with the expectation that a supplemental resolution would be forthcoming should the City expect to receive a normal level of cruise ship visitation in 2022; and WHEREAS, Amendment No. 3 to the operating agreement returns the level of services to be consistent with 99 cruise ships and their associated increase in ridership and increases the level of funding accordingly. NOW, THEREFORE, in consideration of the mutual exchange of the promises of the parties the agreed to amendment to the agreement as follows: 3. FEES shall read "Seasonal Transportation Services: $228,020" 4. SCOPE OF SERVICES shall read "The City and Contractor have agreed upon a scope of work described in the Contractor's proposal, in response to the RFP issued by City dated March 28, 2018, to provide professional services based on approved standards and instructions as specifically described in the same RFP." Except as provided herein, all other terms and conditions of the originating agreement remain in full effect. In witness thereof, the parties have set their hands and seals below: Seward City Tours Date City of Seward Date ` IFA Cruise Line Agencies of Alaska Cruise Ship Calendar for 2022 FOR PORT(S) = SEW AND SHIP(S) = ALL AND VOYAGES = ALL 10.19 Monday, September 06, 2021 Cruise Line Agencies of Alaska, Cruise Ship Calendar for 2022 Ng, 1 o1`4 148 Sunday, April 24 Monday, April 25 Tucsday, April 26 Wedncsday, April 27 Thursday Aprd 28 F Uay April 29 Saturday, April 30 SEW SEVENSEASMARINER SEW NORWEGIAN SUN 09 00- 17.00 0600- I800 Sunday May 1 Monday, May 2 Tuesday May 3 Wednesday, May 4 Thursday May 5 Frday, May 6 Saturday May 7 Sunday May 8 Monday, May 9 Tuesday May 10 Wed —day May 11 Thursday May 12 Fnday, May 13 Saturday May 14 SEW NORWEGIANJEWEL SEW VIKING ORION SEW VIKING ORION SEW VIKING ORION 0500-21 W 08:00- - -1700 SEW RADIANCE OF THE SEA 0500-2000 Sunday, May 15 Monday, May 16 Tuesday May 17 Wednesday, May 18 Thursday May 19 Fnday, May 20 Saturday, May 21 SEW SHMINERVA SEW SH MINERVA SEW SILVER MUSE SEW MILLENNIUM U6:00- -20P:00 07:00-19:00 05:00-20:00 Sunday May 22 Monday, May 23 Tuesday. May 24 Wednesday May 25 Thursday May 26 Fn&y, May 27 Saturday May 28 SEW NORWECIANIEWEL SEW SEVEN SE AS MARINER SEW RADIANCE OF THE, SEA SEW QUEENELIZABETII 05:00-?1.W 06:00-17:00 05:00-20:00 06:00-17:00 Sunday, May 29 Monday, May 30 Tuesday May 31 Wednesday, June 1 Th—day, June 2 Fnday, June 3 Satuuday, June 4 SEW ROALD AMUNDSEN SEW VIKING ORION SEW VIKING ORION 06:00-20:W - -1700 SEW VIKINGORION SEW SILVER MUSE SEW MILLENNIUM 08:00- 07:00-19:00 0500-2000 Sunday June 5 Monday, June 6 Tuesday June 7 Wednesday June 8 Thwsday, June 9 Fnday, June 10 Saturday June 11 SEW NORWEGIANJEWEL SEW SEVEN SEAS MARINER SEW SILVER SHADOW SEW RADIANCE OF THE SEA SEW STARBREEZE 05:00-21, 00 W:W-17:W 07:00-19:W 05:00-20:00 07:00-18:00 Sunday, June 12 Monday, June 13 Tuesday, June 14 Wednesday, June 15 Thursday June 16 Fnday, June 17 Saturday, June 18 SEW SILVER MUSE SEW MILLENNIUM 07:00-NW 0500-2000 Sunday, June 19 Monday, June 20 Tuesday, Jude 21 Wednesday, June 22 Thursday, June 23 Friday, June 24 Saturday, June 25 SEW NORWEGIAN JEWEL SEW VIKING ORION SEW VIKING ORION SEW VIKING ORION SEW RADIANCE OF THE SEA SEW ROALD AMUNDSEN 05:00-21:00 09:00- - -17:00 05:00-20:00 06:00-20:00 SEW SEVEN SEAS MARINER SEW SYLVIAEARLE 06:00-17:00 06:00-20:00 SEW SILVERSHADOW 07:00-19:00 Sunday, June 26 Monday, June 27 Tuesday June 28 Wednesday, June 29 Thursday, June 30 Friday July t Saturday, July 2 SEW SILVER MUSE SEW MILLENNIUM 07:00-19:00 05:00-20:00 Sunday Idly 3 Monday, JWy 4 Tuesday July 5 Wednesday July 6 Thursday July 7 Fnday, July 8 Saturday July 9 SEW SH MINERVA SEW NORWEGIAN JEWEL SEW SEVEN SEAS MARINER SEW SILVER SHADOW SEW RADIANCE OF THE SEA 0600-2300 0500-21.00 06:00-17:W 07:00-NW 0500-2000 SEW S'FARBREELE 07:00 -18:00 10:19 Monday, September 06, 2021 Cruise Line Agencies of Alaska, Cruise Ship Calendar for 2022 Page 2 of 149 Sunday July 10 Monday, July 11 Tucsday, July 12 Wcdncsday, July 13 Th—day, July 14 Frday, July 15 Saturday, July 16 SEW GOLDEN HORIZON SEW VIKING ORION SEW VIKING ORION SEW SILVER MUSE SEW MILLENNIUM 0600-18.00 - -17:W 07:00-19:00 0500-2000 SEW VIKINGORION SEW ROALD AMUNDSEN SEW PACIFIC WORLD 09:00- t9:00-21:00 09:00-2t:00 Sunday, Jdy 17 Monday, July 18 Tuesday July 19 Wednesday, July 20 Th—day, Jdy 21 Frday, July 22 Saturday, July 23 SEW NORWEGIANJEWEL SEW SEVEN SEAS MARINER SEW HANSEATICINSPIRATIO SEW RADIANCE OF THE SEA 05:00-21:00 06:00-17:00 06:00-I&W 05:00-20:00 SEW SILVERSHADOW 07:00- t9:00 Sunday, July 24 Monday, July 25 Tuesday July 26 Wednesday, July 27 Thursday July 28 Friday July 29 Saturday, July 30 SEW SILVER MUSE SEW MILLENNIUM 07:00-19:00 0500-2000 Sunday, July 31 Monday, August l Tuesday August 2 Wednesday, August 3 Th—&y, August 4 Fnday, August 5 Saturday, August 6 SEW VIKING ORION SEW VIKING ORION SEW VIKING ORION SEW SEVEN SEASMARINER SEW SILVER SHADOW SEW RADIANCE OF TI-SEA 08:00- - -17:00 06:W-FoW 07:00-t9:00 05:00-20:00 SEW NORWEGIANJEWEL SEW ROALD AMUNDSEN 0500-21.00 08.00-11.00 Sunday August 7 Monday Angnst 8 Tuesday. August 9 Wednesday August 10 Thursday Augnst 11 Fn&y, August 12 Saturday August 13 SEW STAR BREEZE SEW SILVER MUSE SEW MILLENNIUM 07:00-18,00 07:00-19:00 05:00-20:00 Sunday August 14 Monday August 15 Tuesday August 16 Wednesday August 17 Thursday August 18 F.&y, August 19 Saturday August 20 SEW ROALDAMUNDSEN SEW NORWEGIAN JEWEL SEW SEVEN SEAS MARINER SEW SILVER SHADOW SEW RADIANCE OF TI-SEA SEW HANSEATIC INSPIRATIO 1700-1900 0500-21.00 06:00-17:W 07:00-19:00 0500-2000 0600-1800 SEW VIKING ORION 0800 - Sunday, August 21 Monday, August 22 Tuesday August 23 Wednesday, August 24 Thursday August 25 Friday August 26 Saturday August 27 SEW VIKING ORION SEW VIKING ORION SEW SILVER MUSE SEW MILLENNIUM - -17, 00 07:00-19:W 05:00-20:00 Sunday August 28 Monday August 29 Tuesday, August 30 Wednesday August 31 Thursday September 1 Fnday, September 2 Satuday, September 3 SEW NORWEGIAN JEWEL SEW SEVEN SEAS MARINER SEW SILVER SHADOW SEW RADIANCE OF THE SEA 0500-21.00 06:00-t7: 00 07:00-t9:W 0500-2000 SEW STAR BREEZE 07:00 -17:00 Sunday September 4 Monday, September 5 Tuesday, September 6 Wednesday, September 7 Thursday, September 8 Frday, September 9 Saturday, September 10 SEW SILVER MUSE SEW MILLENNIUM SEW VIKING ORION 07:00-t9:00 05:00-20:00 - SEW VIKING ORION 08:00- Snnday September 11 Monday, September 12 Tuesday September 13 Wednesday, September 14 Thursday, September 15 Friday September 16 Saturday September 17 SEW VIKING ORION SEW NORWEGIAN JEWEL SEW SEVEN SEAS MARINER SEW RADIANCE OF THE SEA -17:00 05:00-21,00 06:00-17: 00 05:00-20:00 SEW SCENIC ECLIPSE 09:00 -13:00 Sunday September 18 Monday, September 19 Tuesday. September 20 Wednesday September 21 Thursday September 22 Friday September 23 Saturday September 24 10:19 Monday, September 06, 2021 Cruise Line Agencies of Alaska, Cruise Ship Calendar for 2022 Page 3 of 150 Sunday, Scptc nbcr 25 Monday, Saptambcr 26 Tuesday, Scpt—ba, 27 Wcdncsday, September 28 Th—&y, Scptambcr 29 Frday, Scptcmbcr 30 Saturday, October 1 SEW NORWEGIAN JEWEL SEW VIKING ORION 0500-21.00 0900-18.00 Sunday October 2 Monday, October 3 Tuesday October 4 Wednesday, October 5 Th—day, October 6 Friday, October 7 Saturday October 8 Sunday October 9 Monday, October 10 Tuesday October 11 Wednesday October 12 Thursday October 13 Fnday, October 14 Saturday October 15 Sunday October 16 Monday, October 17 Tuesday October 18 Wednesday October 19 Thursday October 20 Fnday, October 21 Saturday, October 22 SEW NORWEGIAN SUN 07:00 -17:00 10:19 Monday, September 06, 2021 Cruise Line Agencies of Alaska, Cruise Ship Calendar for 2022 Page 4 of 151 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2018-042 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, CONTRACTING WITH SEWARD CITY TOURS FOR OPERATION OF THE SEASONAL SEWARD SHUTTLE BUS SERVICE, IN AN AMOUNT NOT TO EXCEED $362,411, AND APPROPRIATING FUNDS WHEREAS, in 2010 Seward began providing a shuttle bus service between the cruise ship terminal, the harbor and historical downtown Seward; and, WHEREAS, the service has proved beneficial to the economic well-being of our community and is valued by the cruise ship industry; and, WHEREAS, Seward intends to provide the same level of service in 2018 and 2019; and WHEREAS, in accordance with Seward City Code 6.10.310 the City of Seward released a request for proposals on March 28, 2018 to include all the cost associated with providing the services; and WHEREAS, Seward City Tours was the successful proposer; and WHEREAS, the shuttle bus has been funded from Commercial Passenger Vessel Excise Tax receipts ("Cruise Ship Tax") and this is an appropriate use of the funds, and WHEREAS, these services will facilitate the flow of visitors around the City of Seward during summer months to maximize the Seward experience and provide a means to assist cruise passengers transport their luggage between the Dale Lindsey Cruise Ship Terminal and the Alaska Railroad Depot. 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 between Seward City Tours and the City of Seward in substantial form as attached hereto, with 2018 and 2019 operations not to exceed $362,411. Section 2. The Seward City Council hereby appropriates the amount of $362,411 from the commercial passenger vessel proceeds account no. 11113-0000-3071-30051 to the Bus Transportation contracted services account no. 30051-0000-7009. Section 3. This resolution shall take effect immediately upon adoption. `Wl CITY OF SEWARD, ALASKA RESOLUTION 2018-042 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd day of April, 2018. THE CITY OF SEWARD, ALASKA David Squires, Mayor AYES: Casagranda, Keil, McClure, Slater, Horn, Towsley, Squires NOES: None ABSENT: None ABSTAIN: None ATTEST: A41zc — Brenda J. Ballou, MMC City Clerk ��yas�aiap��da (City Seal) S . ®. SEAL , f. �"pytr OF AA',N,, u 7 153 Council Agenda Statement Meeting Date: April 23, 2018 Through: Jim Hunt, City Manager From: Ron Long, Assistant City Manager Agenda Item: Shuttle bus service contract with Seward City Tours BACKGROUND & JUSTIFICATION: The City of Seward has contracted out for the operation of a shuttle bus service since 2010. The service benefits pedestrians in Seward including ship passengers and crew and is funded utilizing Commercial Passenger Vessel Excise Tax receipts ("Cruise Ship Tax"). In accordance with Seward City Code and as reported to council, a Request for Proposals was prepared to issue the contract for the summers of 2018 and 2019. The request solicited qualified firms to provide transportation services to cruise ship passengers and other visitors, between the Seward Cruise Ship Port, the Alaska Railroad Seward Depot, the downtown business district, and the Seward Boat Harbor from May 17. 2018 through September 26, 2018, and then approximately equivalent dates in 2019. The RFP required no addenda. There were a total of five plan holders for the RFP. Two proposals were submitted by the deadline and two were judged to be responsive and reviewed by the selection team using the criteria reported to Council. Seward City Tours obtained the highest points and is the selection team's recommendation as the transportation services firm. A draft contract is attached. Services for the shuttle are scheduled to begin May 17, 2018. INTENT: Approve a contract for shuttle bus services with Seward City Tours. CONSISTENCY CHECKLIST: Yes No NIA Comprehensive Plan (document source here): Economic Development 1 and Transportation: Improve public transportation between downtown ; X and the harbor j Strategic Plan (document source here): Foster- a community with diverse ' 2 transportation facilities including road, rail, air, pedestrian and water X routes that meet the needs of residents, businesses and visitors. Other (list): X L3� FISCAL NOTE: The total of funding required for the shuttle program, $362,411 will be appropriated from the Commercial Passenger Vessel funds to the Bus Transportation Fund. Approved by Finance Department: .�. 154 ATTORNEY REVIEW: Yes X_ No The City Attorney reviewed and provided comments for the draft contract that is attached. RECOMMENDATION: City Council approve Resolution 2018- 01-4uthorizing the City Manager to enter into a contract with Seward City Tours and appropriate $362,411 of cruise ship head tax funds for the 2018-2019 shuttle bus service contract. `&V IN WITNESS WHEREOF, the parties have executed this Agreement. City of Seward Seward City ToLArs, By: Jim Hunt By: a /,,� onahS' Yderski TitMana e: City ger Owner Matte.: Dbte- �z // /(6, Brenda Ballou, MMC City Clerk (&ty Sea ) Pat, ge 9 of'9' 156 0 Main Office (907) 224-4050 CITY OF SEW,RD ["0, BOX 167 SEWARD, AI.A,�,,-,KA 99664-011 ffz�• Seward City Tours PO Box 2031 Seward, AK 99664-2031 RE: Seasonal Transportation Services and Related Services NOTICE OF INTENT TO AWARD Dear Mr. Swiderski, 0 Police (907) 2243338 0 Harbor (907) 224-3138 0 Fire (907) 224-3445 0 CRy CWk (907) 224-4046 0 Engineering (907) 224-4049 0 Utflities (907) 224-4050 0 Fax (907) 224-4038 The City of Seward intends to award the Seasonal Transportation Services and related services Contract for shuttle services to your company Seward City Tours as the lowest qualified responsive and responsible proposer for this project. I have included the City's proposed contract with this letter for your convenience. The award of the contract is contingent upon City Council approval which is scheduled to take place on April 23, 2018. We will be contacting you soon to begin discussing the proposed contract and further details. If you have questions, please don't hesitate to contact Jackie Wilde at 907-224-4048 or through email to �,,Jk Sincerely, Ron Long, Assistant City M ager i M 2(1),3� I%Iaska 99664 5773 � sc ve/ a,i ini a' i n yw u III "j fl, ('o n�a IM Seward Cit r ours, LL,C. would like to than the City of Seward for the opportunity to bid the 2018-2019 Seasonal Transportation SexicesContract. After reviewing the bid documents, Seward0ty'ours has a firm understanding of the scope of work involved with providing same., efficient, and enjoyable shuttle transportation services for the 2018 and 2019 tourist and cruise ship seasons. The owner is a resident of Seward since he was a child and has seen first hand how important this service is to our visitors and to our loc,al businesses who rely on the increased foot traffic created by the shuttle service in both the harbor and down town business centers. As a resident and the owner of SewardCityFours, fie has witnessed the difficulties previous operators have experienced when dealing with the dynamic hour-td-bour ridership derriand on cruise ship days. These past experiences, allowed the owner to approach this contract with first hand insight as an operator and as, a Seward resident., Whil;e the contract can be simplified to providing seats, to move people from point A to point B, the reality is this servi I ce provides a crucial initial experience for those visiting Seward, Alaska. SewardCityTours airns to exceed transportation needs of our visitors, by ensuring their first impression: is a positive experience by providing safe, clearx auid comfixrtable transportation services. The term letterhead"i is, often used to refer to the whole sheet imprinted with such a heading. Many companies and individuals prefer to create a letterhead template in a word processor or other software application. This generally includes the same information as pre-printed stationery but without the additional costs involved. Sincerely, Jonah Swiderski Owner and Operator P08()X 20131 Sc�vai-cl, 9966-1 907-21"11 ,'5771)'1 All vehicles, used to meet service requirements for the Seasonal Transportation Services Contract will be 2011 models or newer. No vehicle will have an odometer that reads more then 200,000 miles. All vehicles will meet Department of Transportation and Federal Motor Carrier Safety Administration requirements,. '17he base transportation route on non -cruise ship days (10arn-7pm, seven days, a week) requires a single vehicle to be in operation running approximately every half-hour. Scwand City,Tours intends to utilize a vehicle sirriflar to the following� see attachment 41 The base transportation route on cruiseship days (8am-7pm) requires a second vehicle to be in operation.. Additionally, a third vehicle is required to provide service to the supplemental transportation route between the Dale I.indsay Terminal and Alaska Railroad Depot at specific times. Sewand City'Tours intends to utilize vehicles similar to the following to provide the necessary additional capacity: see attachment #2 Vehicles provided by SewardCityTours are vehicles designed for tours and site seeing. This sets them apart frorn other transportation companies used in the past. These unotor coaches have large viewing windows with climate controlled interior, and drivers with intercom audio equipment to clearly cortununicate with visitors. Guests, will enjoy not only a safe but comfortable ride in a well- equipped vehicle. Seward,CityTours is committed to providing a quality experience that has not been matched in the past. In return the first impression of all visitors using this service will reflect the high standards, of the community. Transmission. Automatic Odometer: 100 25 Passengers, Forward Configuration: Facing, plus driver, Rear Luggage, 2 Tiedowns, Location: None Price: s4m Options/Specification: Electric Entrance Door AM/FM/CD Player 92k BTU X-C System with 2 Compressors 65k BTU Heat System Midback Rigid Seats (3) Foldaway Double Seats Oxen Gray Vinyl Seat Fabric Ricon Front Wheel Chair Lift Kinedyne Tie -Downs (2) Storage Box For Tie -Downs "PA System w/ Extra `M.ic Behind. Driver Back Up Alarm Key Switch Entry Grab Rails on Ceiling Soft Touch Interior Dropped Rear Luggage Compartment Seatbelts Armrests on Aisle Seats Anthracite Gerflor Flooring Safety Package (Fire Extinguisher, First Aide Kit and Stainless Steel'Wheel Covers Hydraulic Brakes New Bus w/ Full Warranties Canada Admissible, Nations Bus Sales - CA 10219 S. Hawthorne Blvd, Inglewood, CA 90304(310) 216-,6350 Nations Bus Sales - FL 555 Outlet Mall Blvd. St. Augustine, F1 32084(904) 347-2296 160 L; 0 speed Automatic Ovemrive EleGffic Entrance Door A.N41FN1/CD Player DVD Player w/ 19' Monitor Highback Reclining Seats, Level 5 Fabric - Streamers Blue Annrests, Retractable Seathelts Walls and Ceiling Lined in Gray Carpet WOK BTU A/C System Flooring - Gray RCA Rubber w/ Fabbed Aisle Back Up Alarm PA System Driver and Passenger Side Running Board Remote Heated Sideview Mirrors Roof Escape H,atch 76' Interior Height 225 Amp Alternator Power Door Locks Hydraulic Brakes Wheel Covers Base Paint - Black o 0 1/-11�1 I 231-"�777,3 � sclvardcio Y FSTROMMMIUMM SewardCityTours (:SC'F) was founded in 2017 when it was clear that there was a need in Seward for additional transportation services., The idea was not only to provide a service but also surpass custorner expectations. SewardCity'Tours is not simply a transportation or shuttle, company. In it's, conception STC offered historical city tours as well as a comprehensive orientation of Seward itself. The business model emphasizes that customer service is a part of a complete experience. Guest satisfaction begins with the firstgrecting of each guest, to a clean climate controlled vehicle with comfortable seats; and a driver/guide that is both knowledgeable and friendly. SewardCityTours intends on extending these guidelines to the Seasonal Transportation Services Contract. Each person that uses the free shuttle is a potential ambassador of Seward, when they return home they share their stories and experiences. Their friends and family will travel to Seward and past visitors will return which will only flourish our already thriving community. The owners Jonah Swiderski and Yen Ly have a combined 20 years of experience between them in tourism, many of those years based right here, in Alaska. STCs cruise ship terminal staff will be undergo crowd control training and be clear communicators. Their knowledge of the, transportation system and key points of interest in Seward will surpass what guests have come to expect. Driver/Guides will assist guests withloading and unloadinglug,galie aswellas, provide accurate infon-nation on Alaska Railroad schedules and policies regarding luggage storage. STC drivers will have customer service training and have extensive knowledge on local attractions and arnenifies. 907-23'1 '5773 Amanda Garcia - Owner of Salmon Berry Tours - 907-278-3572 Rick Ferroni - Port. Engineer - Crowley Marine - 907-831-6108 Liz.Denioss - Owner of Seward Alehouse - 907-491-5035 Upon successful award of the contract Sewand CityTours will ensure the driver/guides have a rninimuni of 2 years of experience in transportation within the tourism industry. SewardCity'roar s will only employs drivers that provide clean driving records that exemplify safety requirements and have undergone appropriate training. Seating Capacity andkDA Accessibility Capacity ADA Compliant Base Route Vehicle 1 25pax, 21pax + 1 wheelchair, YES 17pax + 2, wheelchairs Base Route Vehicle 2 24 pax, NO Supplemental Route 2 4 pax, NO, . . ............. . ...... The three vehicles have the combined capacity to inove 66 passengers at any given time. It is crucial to point out that the type, of veMcle being considered in this proposal is different.frorn what has been used. in the past. The smaller vehicles are equipped to make additional trips in, any given amourit of time as their design is easier for passengers to load luggagcand both embark and disembark the vehicle. Seward CityTo urs, shares the City of Seivard's desire to welcome all individuals and reduce barriers. Thus SewarclCity-Tours, will provide an ADA compliant vehicle operating the base transportation route 7-days a week. This surpasses the bid docurnents requirement for an AD compliant vehicle on cruise ship days (only). Alaska Business License # 1051729 Alaska Department of Commerce, Community, and Economic Development Division of Corporations, Business and Professional Licensing P.O. Box 110806, Juneau, Alaska 38811-0806 This is to certify that SEWARDCITYTOURS, LLC PO BOX 2031 SEWARD AK 99664 owned by SEWARDCITYTOURS, LLC is licensed by the department to conduct business for the period March 27, 2018 through December 31, 2018 for the following line of business: 48 - Transportation and Warehousing 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. Mike Navarre 164 CITY OF S'EW RD RECEIPT # 21848 410 ADAMS STREET 3/P-8/ o 8 PO BOX 167 SEWARD AK 99664 Received phone: (907) 22440�50 From Lookup Name Payment Typ Check # Amounts 11113 CITY CLERK Check 00011011 [due 30,00 Tendered 30.00 Charge Due Descriptign: OUSINESS LICENSE - SEWARD CM TOURS, LLC. Business License 30.00 I' IMM 144 North Binklev Street Soldotna, Alaska 99669-7599 "I'611-free witi-iiii the Borotigh: (800) 478-4441 @ Phoiic- (907) 262-4441 Mike'Navurre' -Sales- Tax Accouk # 00203193 Borough Mayor Sales Tax Introduction Letter and Certificate of Registration ApN 13, 2017 SEW'AROCITYTOURS LLC PO, BOX 2031 SEWARD AK 99664-2031 Dear Business Owner Attached is your now certiftate of, klftrfty Ito CoflectSaikes T. Netpraceeds of the borough -wide sales tax of 3% jS dedicated to our Borough school$rl in addition, sales, tax is colt6cted for, and turned over to the cities. The schools and cities must have this sales tax money to operate', therefore, enforcement of the sales tax ordinance is strictly maintained, , , We encourage you to promptly file your sales tax returns and remit the taxes collected each re orting period, IBy U reporting prom fly, YOmay receive a 5% credit t,,ip to $1,000 per quarter Yct.,l,Nilf berequireTto file on a QUA RTERL: Easi.S. Please note trial a returri MUST be fited by you for EVEff reportin,. g, penod, even if there were no sales (Check the box, "RErURN HAS 0 SALES') , The Sales Ta—xDivlsjon will mail you return at the end of each reporting period. Td due date, or the return is the,day your retufn, MUST FIB' BY& ±umgp� : th, 7LO�LUI� QFI�ICE B Y You will be subject to a non -filing fee of $25 for each return not filed", if'two (2) consecutive returns are missed a reinstatement fee of $100 will be assessed, in addition: to any, penalty or interest for late filing and remittance,. The Sales Tax staff in the Finance Department will' be glad to answer your questions or assist you in any way they can regarding your sales tax account. You may, contact tfic Safes Tax 010slorat (907),714-2175, or toll, free within the Borough at 11-800-478-444,1 ext, 2175. ,Apv 13 2017 1.6 ANI cwtl=o — — — — — — — — — — — — — — — — — — — — — — -- --— — — — — — — — — — — A ENINSwU LA BOROUGH CERTIFICATEOF AUr'rH0rRrr'y COL.'LECYBOROUGH SALES TAX is aualorizAA.and cmpewwczcd by the Mayor ,ofthe Kenai Pcnnsuia Donuagh WcON'x't rurthc Bolough salel T"Ay� On rk"viil S,,4vs, Ron(sand Serviccs imposcd pursuant'k) Ordinance No 3. I K (it: the Keftaii Peninsula Borough. 'rhis certificate is noti-assignable and non -transferable and must be surrendered to the Mayor by the seller to whom it w4s issued upon his ceming to do business at the location nawd herein, or any chango in owtiersbip, tbrin able or an�y other change. ACCOUNT NUMBER 00203193 DATE OF SEWARDUTYTOURS LLC REGISTRATION April 1, 2017 PO BOX,203'1 SE", ARD AK 99664-2031 THIS CERTIFICATE VUST BE DISPLAYED PROMINENTLY AT THE PLACV OF BUSINESS, MAYOR POP)OX 2031 Alisk,,'i 91,')G64 907-2�31-,5)773 � �A" g n � "�4 i �' - L Jonah Swiderski., certify that. I am the Sole Mernber of SewardCityTours, a Limited Liability Company ("LLC") organized under the laws of. l'aska, Ta identification Number 82-1057577, and that the resolutions on this document are true and correct y of resolutions adopted at a niecting of the Sole Member of the L.LC held on January 1, 2018. BE ITRESOLVED THAT, said LLC desires that the undersigned Sole Member o�f the LLC is authorized (1) Eritcr into a contract for the purposes providing transportation services to the City of Seward. (2) Endorse any legal documents, pertaining to ScwardCityTours, LLCM. BE ITRESOLVED'nwr, the undersigned Sole Member of the LLC is authorized to exercise the powers listed above regarding legal and contractual services on the behalf of the LLC. BE IT RESOLVED THAT, the undersigned Sole Member of the LI.0 hereby certi ies that lie is the only individual with significant responsibility for manaLqntr the LLC and he has BE lT RESOLVED THKr, tbis resolution shallcontinue to have effect until City of Seward..Any revocation, modification or replacement of a resolution must be accompanied by, documentation satisfactory to the City of Seward, -,stablishing the authority for the change. I n: BE i'r RESOLVED THAT, should the LLC change entity form or ownership, the undersigned shall pro fir y notify the City of Sewardin writing. Signature: Dated: NON -COLLUSION AFFIDAVIT Ihe ulnd,neJ, I), , I r o3. !�enn l�I I­xornt,t? I, I,5�t t"� 4,-t I," ,i has any other member. representative. or agent of the firm. company. corporation or partnership represented by him, entered into any combination.. collusion or acyreement with any person relative to the price to be bld b,,,, an-,vone at such letting nor to pivvent any -ioai ac�_� Wit" anv a,ther 'ff! tO SU(J-1 H,&�S`Dc :h,,v., 01, PVT recei�e directly or indirectly, any rebate. fee Lift. Commission or thine of value can account of such sale. TP AFFJ:;.°F1 I HEREBY AFFIRM UNDER THE PENALTIES FOR PERJURY THAT THE FACTS AND JNFORMATION CONTAJNED IN'THE, FOREGOING BID FOR, PyJ9,LIC Dated this 28 day of —March —.2018 Ln at ure- ACKNOWLEDGEMENT ,j "` J m -,�d'am-' SMiki,flk6,ICS co" -it Ai--i 61L� tiiv �i-uc Z"ld L'OeTk�cc, j 2018 N'oa,arw Public S i,�n tu re r, 71 C 168 Irk BOX 20,,',.H 99664, g I R'treet Addr—ess. Seward, AK 99664 Mailing Address. PO BOX 2031 Seward, AK 99664 The above Proposal Price includes the foHowinr. -AD services descyibed in bid Packet based On Provided cruise s p e ul I se sliiPschedule has additional hours are required, or cruL hi sch d ie. f additional charges unexpected changes, win bleincurred at a rate of $75/hr or $825/day. -Payment terms.- 25% of total PrOPOsal Price ($90,603') due three business days after the execution Of contract with City, The reynaining balance billed in 8 monthly installments ( ($271,808) to be $33,9761month) during operating months beginningJune-2018 through Sept-2018 and June-2019 through Sept-2019. Company Name Title Printed Name Date 77 0 Professional Services Agreement with First Student, Inc for Seasonal Transportation Services and Related Services This AGREEMENT, made and entered into this 23rd day of April, 2018 by and between the CITY OF SEWARD, a home rule municipal corporation located within the Kenai Peninsula Borough and organized under the laws of the State of Alaska, hereinafter referred to as the "City" and Seward City Tours, LLC authorized to do business in Alaska, with offices located at PO Box 2031, Seward, AK 99664, hereinafter referred to as the "Contractor." WITNESSETH WHEREAS, the City of Seward wishes to enter into a contract with an independent contractor to provide transportation services for cruise ship passengers and other visitors, between the Seward Cruise Ship Port, the Alaska Railroad Seward Depot, the downtown business district and the Seward small boat harbor in Seward, Alaska; and WHEREAS, in response to a request for proposals, Seward City Tours, LLC submitted a proposal asserting it is qualified to perform these services and able to do so in a timely manner; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: 1.0 DEFINITIONS 1.1 "Agreement" shall mean this Professional Services Agreement, including: Exhibit B — City's request for proposals dated March 28, 2018, (collectively, "UP"). 1.2 "Change Order" is an addition to, or reduction of, or other revision approved by the City in the scope, complexity, character, or duration of the services or other provisions of this Agreement. 1.3 "City" shall mean the City of Seward, Alaska. 1.4 "Contracting Officer" shall mean Assistant City Manager, Ron Long, and include any successor or authorized representative. 1.5 "Project" shall mean the transportation and other tasks related to the transportation of cruise ship passengers, crew and other visitors, between the Seward Cruise Ship Port, the Alaska Railroad Seward Depot, the Page 1 of 9 170 downtown business district and the Seward small boat harbor in Seward, Alaska as further described in the RFP issued by the City of Seward on March 28, 2018. 2.0 TERM OF AGREEMENT. This Agreement shall take effect upon execution. This Agreement shall remain in full force and effect until the Project has been completed and further, until all claims and disputes have been concluded. The work is considered complete when the City has received and found acceptable the finished product of all work described in 4.0 Scope of Services or changes thereto. This date is not necessarily the Completion Date as described in 5.0 Completion Date. This Agreement may be amended only in writing and upon compliance with all applicable statutes, ordinances, and regulations. 3.0 FEES. 2018 Seasonal Transportation Services $ 226,507 2019 Seasonal Transportation Services $ 135,904 Fees to be paid pursuant to schedule in Contractors' accepted price proposal, said fees will be paid 30 days after approval of contract. 4.0 SCOPE OF SERVICES. The City and Contractor have agreed upon a scope of work described in the Contractor's proposal, in response to the RFP issued by City dated March 28, 2018, to provide professional services based on approved standards and instructions as specifically described in the same RFP. This Scope of Services can only be changed in writing pursuant to Section 26.0 of this Agreement. 5.0 SCHEDULE FOR COMPLETION. The schedule for completion for all services described herein shall be as follows: Beginning approximately May 17, 2018 and running the entire 2018 and 2019 tourist season, concluding at the end of the tourist season 2019 cruise ship schedule, or other date agreed to by both parties pursuant to section 26.2 of this agreement. 6.0 PERSONNEL/ORGANIZATION 6.1 Key Personnel. Work and services provided by the Contractor will be performed by: Seward City Tours, LLC Jonah Swiderski. 6.2 Changes in Key Personnel. The Contractor shall give the City reasonable advance notice of any necessary substitution or change of key personnel and shall submit justification therefore in sufficient detail to permit the City to evaluate the impact of such substitution on this Agreement. No substitutions or other changes shall be made without the written consent of the City. Page 2 of 9 171 7.0 STANDARD OF PERFORMANCE. The Contractor agrees to provide all required professional services to complete the project and any additions or changes thereto. The Contractor accepts the relationship of trust and confidence established between it and the City by this Agreement. The Contractor covenants with the City to furnish its best skill and judgment, and to further the interest of the City at all times through efficient business administration and management. The Contractor shall provide all services in a competent manner. It is understood that some of the services to be rendered hereunder require professional judgment and skill. In those cases, the Contractor agrees to adhere to the standards of the applicable profession. 8.0 TIMELINESS OF PERFORMANCE. Time is of the essence in this Agreement. Contractor's failure to meet any such deadlines or required performance may adversely imperil other contractual obligations of the City. If the Contractor fails to deliver the services by May 17, 2018, Contractor shall pay as liquidated damages and not as penalty $ 500 per day for each day after May 17, 2018 the services are not delivered. 9.0 COMPLIANCE WITH LAWS. The Contractor shall be familiar with and at all times comply with and observe all applicable federal, state and local laws, ordinances, rules, regulations, and executive orders, all applicable safety orders, all orders or decrees of administrative agencies, courts, or other legally constituted authorities having jurisdiction or authority over the Contractor, the City, or the service which may be in effect now or during performance of the services. Contractor shall have a Seward and State of Alaska Business License. 10.0 INDEMNITY. The Contractor shall indemnify, defend, and hold and save the City, its officers, agents and employees harmless from any claims or liability of any nature or kind including costs and expenses (including attorneys' fees), for or on account of any and all legal actions or claims of any character whatsoever alleged to have resulted from injuries or damages sustained by any person or persons or property (including contract rights or intangible assets) and arising from, or in connection with, performance of this Agreement, and caused in whole or in part by any negligent act or omission of the Contractor; provided, however, that this paragraph shall not be construed so as to require indemnification of the City from such claims, damages, losses, or expenses caused by or resulting from the negligence of the City. 11.0 INSURANCE. The Contractor understands that no City insurance coverage, including Workers' Compensation, is extended to the Contractor. The Contractor shall at all times maintain adequate (commercially reasonable coverage levels) insurance covering Workers' Compensation, general commercial liability, automobile liability, and property damage including a contractual liability endorsement covering the liability created or assumed under this Agreement. The Contractor shall not commence work under this Agreement or any work on Page 3 of 9 172 any phase of the Project until the Contractor provides the City with certificates of insurance evidencing that all required insurance has been obtained. These insurance policies and any extension or renewals thereof must contain the following provisions or endorsements: a. City is named as an additional insured for all liability coverages, b. City will be given thirty (30) days prior notice of cancellation or material alteration of any of the insurance policies, c. Insurer waives all rights of subrogation against City of Seward and its employees or elected officials, d. Any deductibles or exclusions in coverage will be assumed by the Contractor, for account of, and at the sole risk of the Contractor. The minimum amounts for each type of insurance shall be no less than the following: a. Commercial General Liability Insurance on an "occurrence basis" with limits of liability not less than $ 5 Million per occurrence and $ 5 Million aggregate combined single limit, personal injury, bodily injury and property damage, b. Motor Vehicle Liability Insurance for all owned, hired and non -owned vehicles, including no-fault coverage with limits of liability not less than $5,000,000 per occurrence combined with single limit Bodily Injury and Property Damage, c. Workers Compensation as required by Alaska law, AS 23.30.045 and regulations adopted thereunder. Upon request, Contractor shall permit the City to examine any of the insurance policies specified herein. The minimum amount and types of insurance provided by the contractor shall be subject to revision at the City's request in order to provide continuously throughout the term of the Agreement a level of protection consistent with good business practice and accepted standard of the industry. 12.0 GOVERNING LAW. The laws of Alaska will determine the interpretation, performance and enforcement of this Agreement. 13.0 OWNERSHIP OF WORK PRODUCTS. Payment to the Contractor for services hereunder include full compensation for all work products and other materials produced by the Contractor and its subcontractors pertaining to this Agreement. Page 4 of 9 173 The originals of all material prepared or developed by the Contractor or its employees, agents, or representatives hereunder, including documents, drawings, designs, calculations, maps, sketches, notes, reports, data, models, computer tapes, and samples shall become the property of the City when prepared, whether delivered or not, and shall, together with any materials furnished the Contractor and its employees, agents, or representatives by the City hereunder, be delivered to the City upon request and, upon termination or completion of this Agreement. Materials previously created and copyrighted by the Contractor included in this project will remain property of the Contractor. Copies will be made available to the City upon request. Materials purchased from and copyrighted by third parties are not included in this provision. 14.0 PATENTS, TRADEMARKS, AND COPYRIGHTS. The Contractor agrees to defend, indemnify, and save the City harmless from and against any and all claims, costs, royalties, damages and expenses of any kind of nature whatsoever (including attorneys' fees) which may arise out of or result from or be reasonably incurred in contesting any claim that the methods, processes, or acts employed by the Contractor or its employees in connection with the performance of services hereunder infringes or contributes to the infringement of any letter patent, trademark, or copyright. In case such methods, processes, or acts are in suit held to constitute infringement and use is enjoined, the Contractor, within reasonable time and at its own expense, will either secure a suspension of the injunction by procuring for the City a license or otherwise, or replace such method, process, etc., with one of equal efficiency. 15.0 NONWAIVER. No failure of the City or Contractor to insist upon the strict perfor- mance by the other of any of the terms of this Agreement or to exercise any right or remedy herein conferred shall constitute a waiver or relinquishment to any extent of its rights to rely upon such terms or rights on any future occasion. Each and every term, right, or remedy of this Agreement shall continue in full force and effect. 16.0 SAFETY/PERFORMANCE. The Contractor shall perform the work in a safe and workmanlike manner. The Contractor shall comply with all federal and state statues, ordinances, orders, rules, and regulations pertaining to the protection of workers and the public from injury or damage, and shall take all other reasonable precautions to protect workers and the public from injury or damage. 17.0 SUSPENSION OR TERMINATION. 17.1 Fault Termination or Suspension. This Agreement may be terminated by either party upon ten (10) days written notice if the other party fails substantially to perform in accordance with its terms. If the City terminates this Agreement it will pay the Contractor a sum equal to the percentage of work completed and accepted by the City that can be substantiated by the Contractor and the City, offset by any amounts owed to the City. Page 5 of 9 174 However, within the ten (10) day Notice of Intent to terminate the party in default shall be given an opportunity to present a plan to correct its failure. 17.2 Convenience Suspension or Termination. The City may at any time terminate or suspend this Agreement for any reason including its own needs or convenience. In the event of a convenience termination or suspension for more than six (6) months, the Contractor will be compensated for authorized services and authorized expenditures performed to the date of receipt of written notice of termination or suspension. No fee or other compensation for the uncompleted portion of the services will be paid, except for already incurred indirect costs which the Contractor can establish and which would have been compensated but because of the termination or suspension would have to be absorbed by the Contractor without further compensation. 17.3 Activities Subsequent to Receipt of Notice of Termination or Suspension. Immediately upon receipt of a Notice of Termination or suspension and except as otherwise directed by the City or its Representative, the Contractor shall: a. stop work performed under this Agreement on the date and to the extent specified in the Notice; and b. transfer title to the City (to the extent that title has not already been transferred) and deliver in the manner, at the times, and to the extent directed by the City's representative, work in progress, completed work, supplies, and other material produced as a part of, or acquired in respect of the performance of the work terminated or suspended by the Notice. 18.0 EQUAL EMPLOYMENT OPPORTUNITY. The Contractor shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, or because of age, physical handicap, sex, marital status, change in marital status, pregnancy, or parenthood when the reasonable demands of the position do not require distinction on the basis of age, physical handicap, sex, marital status, changes in marital status, pregnancy, or parenthood. The Contractor shall take affirmative action required by law to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, national origin, ancestry, age, or marital status. 19.0 NO ASSIGNMENT OR DELEGATION. The Contractor may not assign, subcontract or delegate this Agreement, or any part of it, or any right to any of the money to be paid under it without written consent of the Contracting Officer. 20.0 INDEPENDENT CONTRACTOR. The Contractor shall be an independent Page 6 of 9 175 contractor in the performance of the work under this Agreement, and shall not be an employee or agent of the City. 21.0 PAYMENT OF TAXES. As a condition of performance of this Agreement, the Contractor shall pay all federal, state and local taxes incurred by the Contractor and shall require their payment by any other persons in the performance of this Agreement. 22.0 PRECEDENCE AND DIVISIBILITY. The provisions of this Agreement shall fully govern the services performed by the Contractor. If any term, condition, or provision of this Agreement is declared void or unenforceable, or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. 23.0 ENTIRE AGREEMENT. This Agreement contains the entire agreement between the parties as to the services to be rendered by the Contractor. All previous or concurrent agreements, representations, warranties, promises, and conditions relating to the subject matter of this Agreement are superseded by this Agreement. 24.0 COMPLETION OF WORK, TERM OF AGREEMENT. The Contractor shall perform all work in a timely fashion, and in accordance with the schedules included in this Agreement and Exhibits. 25.0 CLAIMS AND DISPUTES. Venue for all claims and disputes under this Agreement, if not otherwise resolved by the parties, shall be in the appropriate Alaska State court in Anchorage, Alaska. 26.0 CHANGES IN SCOPE OF WORK. 26.1 General. No claim for additional services not specifically provided in this Agreement will be allowed, nor may the Contractor do any work or furnish any materials not covered by the Agreement unless the work or material is ordered in writing by the Contracting Officer. Preparation of Change Orders and design changes, due to errors and/or omissions by the Contractor, will be done at the sole expense of the Contractor. 26.2 Changes in Scope of Work. The City or its representative may, at any time, by a written Change Order delivered to the Contractor, make changes to the scope of work, or authorize additional work outside the scope of work, or the schedule for completion. 26.3 Compensation to the Contractor. If any Change Order for which compensation is allowed under this Article causes an increase or decrease in the estimated cost of, or time required for, the performance of any part of the work under this Agreement, or if such change otherwise Page 7 of 9 176 affects other provisions of this Agreement, an equitable adjustment will be negotiated. Such an adjustment may be: a. in the estimated cost or completion schedule, or both; b. in the amount of fee to be paid; and c. in such other provisions of the Agreement as may be affected, and the Agreement shall be modified in writing accordingly. 26.4 Any claim by the Contractor for adjustment under this section must be asserted within fifteen (15) days from the day of receipt by the Contractor of the notification of change; provided, however, that the City or its representative, deciding that the facts justify such action, may receive and act upon any such claim asserted at any time prior to final payment under this Agreement. Failure to agree to any adjustment shall be a dispute within the meaning of Section 25.0 of this Agreement. 27.0 LIMITATION OF FUNDS, 27.1 At no time will any provision of this Agreement make the City or its representative liable for payment for performance of work under this Agreement in excess of the amount that has been appropriated by the City Council and obligated for expenditure for purposes of this Agreement. 27.2 Change orders issued pursuant to Section 26 of this Agreement shall not be considered an authorization to the Contractor to exceed the amount allotted in the absence of a statement in the change order, or other modification increasing the amount allotted. 27.3 Nothing in this Section shall affect the right of the City under Section 17 to terminate this Agreement. 28.0 PRIOR WORK. For the purposes of this Agreement, work done at the request of the City or its representative before execution of this Agreement shall be deemed to be work done after its execution and shall be subject to all the conditions contained herein. 29.0 NOTICES. Any notices, bills, invoices, or reports required by the Agreement shall be sufficient if sent by the parties in the United States mail, postage paid, to the address noted below: City of Seward City Manager PO Box 167 Seward, Alaska 99664-0167 Seward City Tours, LLC Jonah Swiderski PO Box 2031 Seward, Alaska 99664-2031 Page 8 of 9 177 IN WITNESS WHEREOF, the parties have executed this Agreement. City of Seward Seward City Tours, LLC By: Jim Hunt By: Jonah Swiderski Title: City Manager Title: Owner Date: Date: ATTEST: Brenda Ballou, MMC City Clerk (City Seal) Page 9 of 9 178 Amendment No. 4 Amendment No. 4 to the agreement between the City of Seward and Seward City Tours, dated April 23,2018 follows: WHEREAS, in 2010, the City of Seward began providing a shuttle bus service between the Cruise Ship Terminal, the harbor, and historic downtown Seward; and WHEREAS, the shuttle service has proven to be of a benefit to visiting tourists, Seward community members, and local businesses; and WHEREAS, Resolution 2018-042 approved the contract between the City of Seward and Seward City Tours for provision of shuttle bus services for 2018 and 2019; and WHEREAS, Resolution 2019-038 authorized Amendment No. 1 to the operating contract which increased the contract rate by $21,720, extended the term by two years, and added two optional one-year extensions pending City Council approval, and WHEREAS, the operating agreement for 2021 was reduced in the scope of services through Amendment No. 2 to the contract in response to the elimination of cruise ship visitation to Seward due to the COVID-19 pandemic; and WHEREAS, Resolution 2021-125 approved the extension of the operating agreement as modified by Amendment #2 through 2022 at the base level of $83,800 with the expectation that a supplemental resolution would be forthcoming, and WHEREAS, Resolution 2022-010 approved Amendment # 3 to the operating contract, which provided for the funding necessary to deliver services to the cruise ship visitation based upon the finalized sailing schedule, and WHEREAS, this resolution approves the final, one-year extension of the contract through 2023. NOW, THEREFORE, in consideration of the mutual exchange of the promises of the parties the agreed to amendment to the agreement as follows: 3. FEES shall read "2023 Seasonal Transportation Services $241,701" Except as provided herein, all other terms and conditions of the originating agreement remain in full effect. In witness thereof, the parties have set their hands and seals below: 179 Seward City Tours Date 10/16/2022 City of Seward Date 1EI6, Resolution 2022-113 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Purchase from Southern States, LLC, Two Circuit Switches for the Fort Raymond Substation in a Not -to -Exceed Amount of $264,100, As Part of the Infrastructure Work Planned in 2023 to Replace Aging Equipment and Increase the System's Voltage Capacity Documents: • Agenda Statement • Resolution 2022-113 • Attachments: o Southern States, LLC, Invoice o Southern States, LLC, Terms & Conditions IBM City Council Agenda Statement Meeting Date: November 14, 2022 To: City Council Through: Janette Bower, City Manager From: Rob Montgomery, General Manager - Electric Agenda Item: Resolution 2022-113: Authorizing the City Manager to Purchase from Southern States, LLC, Two Circuit Switches for the Fort Raymond Substation in a Not -to -Exceed Amount of $264,100, As Part of the Infrastructure Work Planned in 2023 to Replace Aging Equipment and Increase the System's Voltage Capacity Background and justification: Work to rebuild key sections of Seward's transmission system and upgrade the system's voltage capacity is expected to get underway in 2023. This work is part of the overall infrastructure project planned over the next three to four years. Part of this work includes replacing the two circuit switches in the Fort Raymond Substation. With an estimated shipment time of 46 weeks, the Electric Department is seeking Council approval now so the order can be placed and included in the vendor's supply chain. The new circuit switches are needed to replace the old, existing switches and to increase the substation's voltage capacity. The fast interrupting speeds of the new switches also will reduce potential operational issues. Southern States was the sole vendor that responded to the Invitation to Bid. The purchase of and installation these new circuit switches was included in the engineering design provided by the Electric Department's consultant, Dryden & LaRue. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.7.1.4 "Continue to upgrade and expand utilities to meet existing needs and encourage future development." Strategic Plan: Reduce Energy Costs — Expand customer base within the Seward Electric utility area Other: Certification of Funds Total amount of funds listed in this legislation: $ This legislation (✓): Creates revenue in the amount of: X Creates expenditure in amount of: Creates a savings in the amount of: Has no fiscal impact $264,100 Funds are (✓): Budgeted Line item(s): X Not budgeted Infrastructure Project Fund Contracted Services (15340-3004-7009) Not applicable Finance Signature: Ir-YA Attorney Review RV Yes Attorney Signature: Not applicable Comments: Administration Recommendation e✓ Adopt Resolution Other: 183 Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2022-113 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Purchase from Southern States, LLC, Two Circuit Switches for the Fort Raymond Substation in a Not -to -Exceed Amount of $264,100, As Part of the Infrastructure Work Planned in 2023 to Replace Aging Equipment and Increase the System's Voltage Capacity and Appropriating Funds WHEREAS, Southern States, LLC, was chosen to provide the new circuit switches, priced at $132,050 each, after the company was the sole vendor responding to the Invitation to Bid; and WHEREAS, the new circuit switches are part of the overall system infrastructure work planned over the next three to four years to replace aging equipment/materials, and increase the system's voltage capacity; and WHEREAS, the new circuit switches are needed to replace the existing switches, which are old and limit the voltage capacity of the Fort Raymond Substation; and WHEREAS, the new switches will allow crews to connect and disconnect power lines or other components to and from the system as needed to make system repairs during planned or unplanned system events; and WHEREAS, the fast interrupting speeds of the new switches will reduce the likelihood of system issues, resulting in better protection of substation transformers and other components for improved reliability. 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 two circuit switches for the Fort Raymond Substation to replace the existing, deteriorating switches and upgrade the voltage capacity of the substation. Section 2. Funding in the amount of $264,100 is hereby appropriated from the Infrastructure Project budget via the approved Revenue Bond from Electric Unassigned Fund Balance account no. 15000-0000-3400 to the Electric Infrastructure Fund Contracted Services account no. 15340-3004-7009. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this the 14th day of November 2022. 184 r4 r--� Southern li-tJ States 30 Georgia Ave. Hampton, GA 30228 Date: 10/31 /2022 Attn: Travis Owen Electric Power Systems, Inc. Proposal Number: SFO67910-1-1 Project Name: City of Seward - Fort Raymond Proposal Southern States is pleased to provide the following proposal per your request. • Drawings can be submitted approximately 8-10 weeks after receipt of order. • Estimated shipment is 44-46 weeks after receipt of order. • Prices are FOB Seward, AK - freight prepaid and allowed. • Our proposal is valid for 30 days. • Payment terms are Net 30 days after receipt of invoice. • Taxes: Pricing does not include applicable sales tax unless specifically itemized in the proposal. If a current Tax exemption certificate has not been provided, the applicable sales tax will be added to the Invoice. • The proposed switches are covered by Southern States Limited Warranty as specified in the Instruction Manual of the device being offered. • The equipment listed in this proposal is subject to the Southern States standard terms and conditions, https://www.southernstatesllc.com/ssllc-terms-and-conditions-of-sale. Your consideration of Southern States equipment is much appreciated. We trust you will find our bid favorable and look forward to working with you on this requirement. Best Regards, Jason Cunningham Senior Business Development Manager, PSD Southern States, LLC 30 Oak Street Hampton, GA 30228 Mobile: 678-773-9036 e-mail: j.cunningham@southernstatesllc.com 185 City of Seward - Fort Raymond Proposal Page 2 of 2 Pricing SummarySouthe BIG States rn Proposal Number: SF067910-1-1 Pricing Date: 10/31/2022 Project Name/RFQ #: City of Seward - Fort Expiration Date: 12/1 /2022 Raymond Proposal Currency: US Dollars Bid Item: 2.0 Circuit Switcher - Horizontal Unit Price: $132,050.00 Ext Price: $264,100.00 Circuit Switcher Type: CSH-B 123 kV Rated Maximum Voltage 1200 A Continuous Current Rating -40 C to +50 C 20 kA Primary Bus Fault Interrupting Rating 2.9 kA Transformer Limited Fault Interrupting Rating 4 kA Transformer Limited Fault Rating (with 7.6 kV/psec TRV) 40 kA 3 sec Withstand / 104 kA Peak Ratings 5 Cycle Interrupt Time First Pole to Clear factor: 1.5 kpp CSH 750 kV Interrupter BIL Composite Interrupter Housing 550 kV Blade BIL 84" Phase Spacing Independent Gas System Ships with positive pressure of SF6 SF6 Gas (11 lb) and Fill Kit Horizontal Upright Mounting Stationary 550 kV Insulator BIL TR286: 550kV BIL, Porcelain, 5:5 in. BC Rotating 550 kV Insulator BIL TR286: 550kV BIL, Porcelain, 5:5 in. BC CM_4AE 48 VDC Motor Voltage 48 VDC Control Voltage 120 VAC Thermostat Controlled Heater(s) 120 VAC Utility Voltage (1-Phase) Local Remote Switch (Standard) Open / Close Push Buttons Position Indicating Lights Electronic Counter Manual Crank Handle Vertical Pipe Decoupler Internal Cabinet Light with Toggle Switch Class RK5 Fuse and Fuseholder - Standard SEL-2411 (241102CBCOXOXOX1430) Relay Enclosure with Communication Package 2 Column Structure Standard Column Height 108" (9 ft) Column Spacing 20" x 20" Standard Anchor Bolt Layout FOB Destination - Seward, AK - Prepaid and Allowed TOTAL: $264,100.00 Comments Same as previously purchased on City of Seward PO 2989 / Southern States JO 608566 186 E -J -� i Southern .-- -=- States SOUTHERN STATES, LLC GENERAL TERMS & CONDITIONS OF SALE (Effective 11/9/16) 1. Payment Terms. By accepting delivery of the Southern States, LLC ("SSLLC") product(s) (the "Product"), you agree to pay SSLLC the full invoice price withinthirty(30) days of receipt of the Product, less a one-fourth of one percent (0.0025%) cash discount for payments made within ten (10) days of receipt of the invoice for the Product. All shipments are F.O.B. SSLLC's facility, Hampton, Georgia, freight prepaid and added to customer invoice within the Continental United States of America and Canada unless otherwise agreed to in writing by SSLLC. Shipment terms for shipments to destinations other than the Continental United States of America and Canada are F.O.B. Ex -Works (SSLLC's facility, Hampton, Georgia), customer to arrange pick up and transportation to destination unless otherwise agreed to in writing by SSLLC. The invoice amount will include the price of the Product, all applicable taxes, insurance, freight and other charges unless otherwise agreed to in writing by SSLLC. Interest charges of one and one-half percent (1.5%) per month or partial month will accrue on all past due amounts. All purchase orders are subject to credit approval. 2. Prices. Published prices for the Product are subject to change without notice. Price quotations are valid for thirty (30) days unless otherwise agreed to in writing by SSLLC. Commitments by agents are subject to written acceptance by SSLLC. The minimum charge for any single order of Product is $250.00. 3. Sales Tax. Unless specifically stated otherwise, sales and other similar taxes are not included in the price of the Product and are the responsibility of thepurchaser. 4. Freight Classifications. The term "electrical switches" shall be used to indicate that insulators are assembled with switches. If the switches and insulators are shipped separately, the term "electrical switches" shall be used to indicate the switch portion of the apparatus, and the term "electrical insulators" shall used for the insulator portion of the apparatus. Freight equalization will be made for government bills of lading. 5. Delivery. The Product will be delivered to the destination designated by the customer, with all insurance and shipping charges to be paid by the customer unless otherwise agreed to in writing by SSLLC. Full risk of loss or damage to the Product shall pass to the customer upon delivery by SSLLC to the carrier at SSLLC's facility unless otherwise agreed to in writing by SSLLC. SSLLC has no responsibility for any loss or damage to the Product during transport from SSLLC's facility to the destination designated by the customer unless otherwise agreed to in writing by SSLLC. Loss or damage to the Product which is apparent at the time of delivery shall be noted on the delivery copy of the freight bill and the carrier shall be notified of same. The Product shall be shipped with the route of shipment and method both at SSLLC's discretion, unless the customer supplies explicit instructions to the contrary and pays for same. No allowances will be made in lieu of freight unless otherwise agreed to in writing by SSLLC. 6. Security Interest. Until the full invoice amount has been paid for the Product, SSLLC reserves a purchase money security interest in the Product under the Uniform Commercial Code; and, if requested, the customer will execute one or more financing statements to be recorded by SSLLC. The customer also hereby grants SSLLC a power of attorney to sign on his behalf a financing statement and to record it, if desired by SSLLC. A signed copy of these General Terms & Conditions of Sale may also be filed in lieu of a financing statement. 7. Limited Warranty. SSLLC warrants only to the Warranty Holder (hereinafter defined as the "End User" or the "Immediate Purchaser", as applicable, pursuant to the terms and conditions of this Limited Warranty as set forth below), that the Product identified below will, upon shipment, be free of defects in workmanship and material for the applicable Warranty Period. The "Warranty Period" is that period of time during which this Limited Warranty is effective, and such period begins on the invoice date issued by SSLLC for the Product, and continues until the earlier to occur of (1) the expiration of the Warranty Duration period, or (2) the Number of Operations, both as specified in the table below. If the Product is both purchased and installed within the United States or Canada, this Limited Warranty is granted to each end user of the Product who acquired the Product for its own use during the Warranty Period ("End User"). In all other situations, this Limited Warranty is granted only to the first purchaser of the Product ("Immediate Purchaser") from SSLLC. No primary or remote purchaser or owner of the Product who is not a Warranty Holder may claim any benefit under this Limited Warranty, or any remedial promise included in this Limited Warranty. SSLLC shall, upon prompt written notice from the Warranty Holder, correct a nonconforming Product by repair or replacement at the sole discretion of SSLLC of the nonconforming Product or any part or component of a nonconforming Product necessary in SSLLC's discretion to make such Product conforming. Any transportation charges, labor for removing, reinstalling the Product or part, and/or costs related to providing access to the Product shall be the responsibility of the Warranty Holder. Correction in this manner will constitute the Warranty Holder's exclusive remedy and fulfillment of all SSLLC's liabilities and responsibilities hereunder. SSLLC's duty to perform under this limited warranty may be delayed, at SSLLC's sole option, until SSLLC has been paid in full for all products purchased by the Warranty Holder. No such delay will extend the Warranty Period. If SSLLC does not make such repair or replacement, SSLLC's liability for damages on account of any claimed nonconformity will in no event exceed the purchase price of the Product in question. This Limited Warranty does not apply to any Product that has been disassembled, repaired, or altered by anyone other than SSLLC. This Limited Warranty will not apply to any Product that has been subjected to improper or abnormal use of the Product. SSLLC has no responsibility to repair or replace any Product or component thereof manufactured by another party, but SSLLC will assign, to the extent assignable, to the Warranty Holder any manufacturers' warranty that applies to products and components not manufactured by SSLLC. THIS LIMITED WARRANTY IS EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES. THERE ARE NO OTHER EXPRESS, IMPLIED, OR STATUTORY WARRANTIES. ALL IMPLIED WARRANTIES WHICH MAY ARISE BY IMPLICATION OF LAW, OR APPLICATION OF COURSE OF DEALING OR USAGE OF TRADE, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT OR OTHERWISE ARE EXPRESSLY EXCLUDED. SSLLC SHALL NOT BE LIABLE OR RESPONSIBLE FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, OR PUNITIVE DAMAGES, EVEN IF SSLLC HAS BEEN ADVISED OF THE POSSIBILITY OF SAME. THE WARRANTY HOLDER IS SOLELY RESPONSIBLE FOR THE SUITABILITY OF THE PRODUCT FOR ANY PARTICULAR APPLICATION. Product Purchased Region Product Installed Region Warranty Holder Warranty Duration Number of Operations See product See Product U.S and Canada U.S and Canada End User Instruction Book Instruction Book Earlier of 1 year All Other Conditions Immediate from installation or See Product Purchaser 18 months from Instruction Book shipment 187 E -J -� i Southern -=- States 8. Intellectual Property. Purchaser agrees that all intellectual property embodied in the Product is the sole and exclusive property of SSIPLLC, and the customer acquires no ownership rights in such intellectual property. Purchaser shall not at any time file any copyright, patent, or trademark application with any governmental agency or entity pertaining to the Product or any intellectual property rights of SSIPLLC embodied therein. Purchaser shall not, and shall not permit any third party to, modify the Product or to reverse engineer, disassemble, or otherwise attempt to determine, duplicate, or copy the Product or the intellectual property of SSIPLLC incorporated therein. 9. Force Maieure. SSLLC shall not be liable for any loss or damage arising from delay in or failure to perform any of its obligations resulting from any circumstances beyond its reasonable control, including, without limitation, fire, explosion, power failure, acts of God, war, riots, strikes, inability to obtain necessary labor or materials or other catastrophes. Receipt of delivery of the Product by the customer constitutes a waiver of all claims against SSLLC for delay in or failure to perform any of its obligations. 10. Order Cancellation. Any order placed with and accepted by SSLLC can be canceled only with SSLLC's consent and upon terms that will indemnify SSLLC against any cost incurred. No Product will be accepted for return without prior written authorization from SSLLC. Any unauthorized returns may be refused and returned to the customer freight collect. Any returned goods accepted by SSLLC are subject to a minimum service charge of thirty percent (30%) and inspection by SSLLC before credit is issued unless otherwise agreed to in writing by SSLLC prior to the Product's return. All requests for cancellation are subject to SSLLC's Cancellation Policy in effect at that time. 11. Field Service. An SSLLC Field Service Engineer is available to assist the customer with Product installation, supervision, training or other purposes. Refer to Domestic Field Service Terms & Conditions rates sheet for field service costs for Product installation, supervision, training or other purposes in the United States of America and Canada and to International Field Service Terms & Conditions rates sheet for field service costs for Product installation, supervision, training or other purposes outside the United States of America andCanada. 12. Notices. Any notice required or permitted hereunder shall be sufficient if in writing, personally delivered, sent by mail or by overnight courier to the customer at the address shown on SSLLC's records, and to SSLLC at 30 Georgia Avenue, Hampton, Georgia 30228. 13. Miscellaneous. These General Terms & Conditions of Sale constitute an offer to form a contract. SSLLC expressly limits the acceptance of this offer to the terms and conditions contained herein, and any prior offers are not accepted. The issuance of a purchase order or acceptance of the Product shall constitute a binding contract governed by the laws of the State of Georgia and these General Terms & Conditions of Sale, which shall constitute the full understanding of the parties with respect to the subject matter hereof. The customer hereby submits to the jurisdiction of the State of Georgia in addition to any other appropriate jurisdiction and the venue of Henry County, Georgia, and waives any objection with respect thereto, with respect to any action or claim concerning this agreement or the performance hereunder. NO MODIFICATION HEREOF SHALL BE EFFECTED BY THE ACKNOWLEDGMENT OR ACCEPTANCE BY SSLLC OF A PURCHASE ORDER OR OTHER SHIPPING INSTRUCTION OR FORM CONTAINING TERMS OR CONDITIONS AT VARIANCE WITH OR IN ADDITION TO THOSE SET FORTH HEREIN. SSLLC EXPRESSLY OBJECTS TO AND SHALL NOT BE BOUND BY ANY TERMS, CONDITIONS, OR PROVISIONS AT VARIANCE WITH OR IN ADDITION TO THOSE CONTAINED HEREIN. THE ISSUANCE OF A PURCHASE ORDER BY THE CUSTOMER SHALL BE DEEMED ASSENT TO THE FOREGOING, NOTWITHSTANDING ANY CONFLICTING TERMS. Revised 11/9/16 188 Resolution 2022-114 A Resolution of the City Council of the City of Seward, Alaska, Selecting Homer Electric Association at the Preferred Electric Utility to Purchase Seward Electric Utility Documents: • Agenda Statement • Resolution 2022-114 • Attachments: o Resolution 2022-067 o July 25, 2022, Presentation o Resolution 2022-087 o Resolution 2022-088 o H EA Proposal `E City Council Agenda Statement Meeting Date: November 14, 2022 To: City Council Through: Janette Bower, City Manager From: Rob Montgomery, General Manager - Electric Agenda Item: Resolution 2022-114: Selecting Homer Electric Association as the Preferred Electric Utility to Purchase Seward Electric Background and justification: On May 9, 2022, Seward Mayor Christy Terry and Council Member Calhoon introduced and the council unanimously approved Resolution 2022-067 to develop a timeline and process for examining the advantages and disadvantages of selling the electric utility and bring recommendations back to city council for adoption. On July 25, 2022, the city council held a special meeting the purpose of assessing Seward's electric utility future. At that meeting, the council directed the city manager to bring forward a resolution to conduct a special election on May 2, 2023, and a resolution appropriating funds to influence the outcome of an election. On August 8, 2022, the city council approved Resolution 2022-087: submitting the question of selling the City of Seward electric utility to the qualified City of Seward voters at a special election in and for the City of Seward on May 2, 2023. The resolution language authorized the issuance of a Limited Solicitation Request for Proposals from interested and qualified electric utility in Alaska to provide electric services. The city council also approved Resolution 2022-088: appropriating funds in the amount of $25,000 to influence the outcome of an election. A Limited Solicitation Request seeking proposals from interested utilities was issued on August 17. Homer Electric Association (HEA) was one of two utilities that submitted proposals. Following three executive sessions, including one where the utilities presented to City Council, HEA was selected by Council as its preferred electric service provider. Council then directed the City Manager to negotiate a proposed contract with HEA, should citizens vote to approve the sale in the Special Election on May 2. Council selected HEA based upon several factors, including: • HEA's long-term strategic plan and investments already made in its infrastructure and operations; • HEA being further along than other Railbelt utilities in its investments in cybersecurity and other system technologies; • HEA's plan for integrating into the Seward community; • HEA ensuring Seward representation on the HEA board of directors; • Existing synergies between HEA and Seward Electric since both utilities are located on the Kenai Peninsula and each works closely with the Kenai Peninsula Borough; • HEA's commitment to freeze consumer rates for at least three years. HEA also addressed its future strategy for consumer rates. While higher today than four of the five Railbelt utilities, HEA pointed to the investments it has already made in operations, infrastructure and technology that are expected to stabilize future rates. HEA discussed how these investments IRIS have positioned it well, since other Railbelt utilities will be making similar investments in the years ahead, thus putting upward pressure on their respective rates. HEA indicated that its investments were strategic, knowing the longer -term benefit of rate stabilization for consumers would outweigh the upward pressure on rates in the short term. For the City of Seward, the discussion related to rates is important since Seward Electric is facing significant rate increases over the next several years. Should voters not approve the sale in May, Seward Electric will move forward with a rate study that is expected to increase consumer rates by no less than 10 percent in late 2023 or early 2024. This increase would be followed by future double-digit increases every two to four years, as the utility plays catch up with its investments in operations, infrastructure and technology. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.7.1.4 "Continue to upgrade and expand utilities to meet existing needs and encouraae future development." Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ This legislation (✓): Creates revenue in the amount of: Creates expenditure in amount of: Creates a savings in the amount of: Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted Not applicable Finance Signature: Attorney Review ✓ Yes Attorney Signature: Not applicable Comments: Administration Recommendation e✓ Approve Resolution Other: IRS Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2022-114 A Resolution of the City Council of the City of Seward, Alaska, Selecting Homer Electric Association as the Preferred Electric Utility to Purchase Seward Electric WHEREAS, on August 8, 2022, the Seward City Council passed Resolution 2022-087: Submitting the Question of Selling the City of Seward Electric Utility to the Qualified City of Seward Voters at a Special Election in and For the City of Seward on May 2, 2023; and WHEREAS, the resolution directed that prior to voter approval of the proposition to sell the electric utility, the city issue a Limited Solicitation Request for Proposals from interested and qualified electric utilities in Alaska to provide electric services; and WHEREAS, the resolution directed that following receipt of the proposals, the city will negotiate with, and select, the utility most qualified to meet the electric service needs of Seward while also sharing the City's community -focused values; and WHEREAS, the resolution further directs the selected utility be announced to the public prior to the vote on selling the utility and the selected utility be authorized to provide public information to City voters; and WHEREAS, the city received two proposals from qualified Alaskan electric utilities; WHEREAS, pursuant to Seward City Code 2.10.033 C, the city council met in three executive sessions to discuss the electric utility proposal and sale negotiations; and WHEREAS, following the executive session on October 27, 2022, the city council unanimously passed a motion to direct the city manager to bring a resolution before the council on November 14, 2022, stating the city council unanimously selected Homer Electric Association as the preferred electric utility to purchase Seward Electric. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Seward City Council hereby selects Homer Electric Association as the preferred electric utility to purchase Seward Electric. Section 2. The sale of the electric utility will only occur upon the affirmative vote by three - fifths of the qualified electors voting on the proposition to approve the sale of the municipal utility at the May 2, 2023 special election. Section 3. The city manager is hereby authorized to negotiate a sales contract with iPy: CITY OF SEWARD, ALASKA RESOLUTION 2022-114 Homer Electric Association and to sign all documents related to the negotiations prior to the May 2, 2023, special election subject to approval by City Council resolution of the negotiated purchase and sale agreement. Section 4. If the voters approve sale of the electric utility at the May 2, 2023 special election the city manager is hereby authorized to sign all documents related to the sale following certification of the May 2, 2023 special election. Section 5. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of November, 2022. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou, MMC City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 193 Sponsored by: Mayor Terry & Council Member Calhoon CITY OF SEWARD, ALASKA RESOLUTION 2022-067 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, DIRECTING THE CITY MANAGER TO DEVELOP A TIMELINE AND PROCESS FOR EXAMINING THE ADVANTAGES AND DISADVANTAGES OF SELLING THE ELECTRIC UTILITY AND BRING RECOMMENDATIONS BACK TO CITY COUNCIL FOR ADOPTION WHEREAS, the City of Seward currently owns and operates an electric utility; and WHEREAS, on November 7, 2000, City Council set a ballot proposition to sell the electric utility based on deregulation, industry changes, and benefits to the public that included a future trust fund from sale proceeds. The proposition failed to receive the required three -fifths of the electors; and WHEREAS, at various instances since that time, Administration, Elected Officials and Public Members have proposed reviewing again the prospect of selling the Electric Utility; and WHEREAS, it is crucial to have ample public involvement, full vetting of the advantages and disadvantages, and education prior to conducting another ballot proposition in preparation of a sale; and WHEREAS, some items under consideration will include the continuation of quality electric services and reasonable rates while at the same time seeking to manage City assets for the long-term benefit of the citizens; and WHEREAS, other items to consider include safety, accessibility for customers, providing timely responses to inquiries, planning for and making system improvements, future economic development, retaining local generation and staff; and WHEREAS, the process moving forward could include involving the Port and Commerce Advisory Board with task items, customer and employee surveys, public comments and questions, town hall meetings, valuation reports of current and future infrastructure, and entertaining or continuing discussions with potential purchasers; and WHEREAS, the outcome of the process will provide a current evaluation of the question and a recommendation for or against moving forward with an updated ballot proposition to sell the utility. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council directs the City Manager to develop a process and timeline to 194 CITY OF SE'WARD, ALASKA RESOLUTION 2022-067 study the option to sell our electric utility. Section 2. The City Manager will bring the process and timeline recommendations to Council for approval at the June 13, 2022 Regular Council Meeting. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 9 h day of May, 2022. AYES: NOES: ABSENT: ABSTAIN: McClure, Osen;a, Calhoon, Casagrar.,.�, �......,�,, �..., None Wells None ATTEST: Brenda J. L4M, C City Clerk �Os" u:..,.*r, (City Seal) OF srtY � • ,,� •......., � +Q pro a OF 7 City Council Agenda Statement Meeting Date: May 9, 2022 To: City Council From: Mayor Terry and Council Member Calhoon Agenda Item: Resolution 2022-067: Directing the City Manager to Develop a Timeline and Process for Examining the Advantages and Disadvantages of Selling the Electric Utility and Bring Recommendations Back to the City Council for Adoption Background and justification: On November 7, 2000, the City Council set a ballot proposition to sell the electric utility based on deregulation, industry changes, and benefits to the public that included a future trust fund from sale proceeds. The proposition failed to receive the required three -fifths of the electors. Since that time, administration, elected officials and public members have proposed reviewing the prospect of selling the electric utility. The current resolution proposes to direct the city manager to develop a process and timeline to study the option to sell the electric utility and to bring the process and timeline to the city council on June 13, 2022. Comprehensive and gt[aWqk Plan Con Info mation This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: --- Total amount of funds listed in this legislation: $ 0 This legislation (v): x Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (�/): Budgeted Line items): x Not budgeted Not applicable I `Pzy Unassigned Fund Balance and Available Unrestricted Cash Balance Infoftatlon Fund (✓ ): General SMIC Boat Harbor Parking Motor Pool Other Electric E Wastewater Water Healthcare Finance Signature: " r f ;` t j v •° Attorney Revlewv _ Administration Recommendation IYes Fx-] Adopt Resolution X ry Not applicable L__] Other: 197 Assessing Seward's Electric Utility Future Advantages and Disadvantages of Selling July 25, 2022 Background o Resolution 2022-067 — In May, Council approved a Resolution requesting Administration assess the advantages and disadvantages of selling the City's electric utility o Timeline —Administration was also asked to recommend a timeline should the City proceed toward a special election o Voting Requirement — For the utility to sell, Seward residents would need to approve with a three -fifths or 60 percent vote, must live within City limits In 2000, Seward residents voted to sell the utility with a 52% majority, but failed to meet the 60 percent threshold. 199 The Assessment o Steps taken: ➢ Researched information from other utility acquisitions ➢ Met with and solicited input from employees across the City: city manager, assistant city manager, department heads, electric utility employees, billing desk, etc. ➢ Input solicited from members of the community 200 Advantages of Selling o More financial resources; a larger revenue base o More human resources and in-house expertise (engineering, rates, billing) o More bench strength; easier to replace employees who leave o Rate stability - More meters for spreading costs o Regulatory oversight in setting rates and ensuring adequate services o More customer programs available (equal monthly payment, energy efficiency, weatherization, heat pumps, etc.) o Greater access to customer -focused technology (smart meters, billing software, web -based outage maps) o Local grid enhanced by automation and remote control (SCADA, cybersecurity) 201 Advantages of Selling (co nt'a) o Greater inventory of and access to equipment and materials o City no longer responsible for maintenance and related costs on major assets o City no longer dependent on bonds/grants to fund infrastructure projects o A board of directors with a singular focus on electric service; Seward representation by contract o Customers are members/owners in a co-op; annual meeting participation o Co-ops do not profit; excess revenues returned to members in capital credits o Competitive, industry -based salaries for non -union positions o A more streamlined approval process o Dedicated vegetation management resources 202 Disadvantages of Selling o Loss of General Fund contribution o Potential loss of future cruise ship revenue o Potential job losses for administrative positions o Rates no longer set locally (City Council) o Loss of flexibility to use cash reserves for other fund deficits 203 General Fund Contribution o In 2021, the Electric Department's contribution to the City's General Fund was approximately $2.1 M (Payment in Lieu of Taxes, Transfer Fee for City services): If citizens vote to sell, how will the City replace this lost revenue? 204 Questions for Voters o Is there comfort in having an electric utility with the human and financial resources to make major repairs and properly maintain the local infrastructure? o Is Seward okay having escalating rates as more money is invested to properly upgrade and maintain its infrastructure? o How important are expanded programs and services to the citizens of Seward? o In an industry where technology changes rapidly, does Seward have the financial means to make the investments necessary to keep up? o As the utility looks to replace non -union personnel, does Seward have the financial means to be competitive with "industry" wages/salaries? Decisions made today will determine the long-time future of Seward's electric service. 205 Final Thoughts o Limitations on financial and human resources make it difficult for Seward's electric utility to function as efficiently and effectively as it should. o As currently staffed and funded, the Electric Department will never be able to offer the programs, services, and technology of larger utilities. o The City will struggle in the future to fill important positions within the utility because wages/salaries are not competitive within the industry. o Oversight by the Regulatory Commission of Alaska ensures fair rates and services for all customers o Based upon my 20-plus years in the industry, I believe the City is best served by selling the utility to a large cooperative with more resources. Ultimately, the citizens of Seward will have the final say on selling the electric utility with a Special Election. 206 Proposed Timeline August 8 Resolution for Special Election August 8 Resolution appropriating funds to influence the outcome of an election August 8 Authorization to issue a Limited Solicitation RFP August 9 Valuation of utility assets Aug. 10 —Sept. 2 RFPs accepted September 12 & City Council Executive Sessions (additional September 26 executive sessions will be added as needed) Final date to be determined/no later than TBD December 31, Finalization of Purchase & Sales Agreement Jan. 1 — March 31 Public education by selected bidder April 4 Special Election 207 Administration Administration Administration Consultant Administration Council/Admin Council/Admin. Electric Co-op City Clerk Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2022-087 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, SUBMITTING THE QUESTION OF SELLING THE CITY OF SEWARD ELECTRIC UTILITY TO THE QUALIFIED CITY OF SEWARD VOTERS AT A SPECIAL ELECTION IN AND FOR THE CITY OF SEWARD ON MAY 2, 2023 WHEREAS, the City of Seward owns and operates the electric utility with approximately 2,900 meters and limited financial resources; and WHEREAS, the financial burden associated with increasing tcclinol()gical demands, completing infrastructure itnpro venients, meeting niorc stringent industry standards and attracting and maintaining qualified cniployees, has led to the City Council's consideration of selling the City's electric utility. and «'II F.REAS, it is iii the public's interest to proN idc cOnyu111crs witli safe and reliable electric service alone witli reasonable rates and value-added programs and scrN ices while, also managing the City's assets for the long -teen benefit of the citizens of the City; and WHEREAS, prior to voter approval of the proposition to sell the electric utility, the City Will Issue a 1,1iii1tcd Solicitation Request for Proposals froni lntcrested and qualified electric utilities in Alaska to provide electric serviccs: and WHEREAS, following receipt of the proposals, the City %trill negotiate with, and select, the utility most qualified to meet the electric service needs of Se�� argil %i line also sharing the City's community -focused values; and WHEREAS, the selected utility will be announced to the public prior to the vote on selling the utility and the selected utility will be authorized to provide public information to City voters; and WHEREAS, the City Council will enact an ordinance in advance of the May 2, 2023, election with an effective date contingent on voter approval o I'the sale of the utility, establishing a permanent fund for the receipt. investment, and use of proceeds from the sale and to direct that permanent fluid revenues be used to make a yearly tran4er to the General Fund and to fund capital improvements approved by the City Council; iiiid WHEREAS, Seward City Charter 13.4 permits the council to sell, lease or otherwise dispose of a municipal utility or of property and interest in property used or useful in the operation of a utility only after a proposition to do so is appriwcd by three -fifths of the cicctors (voters) of the city \ oting on the proposition. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCI1, OF THE CITY 208 CITY OF SEWARD, ALASKA RESOLUTION 2022-087 OF SEWARD, ALASKA, that: Section 1. The City shall submit the following proposition to the qualified voters of the City at the May 2, 2023, special city election. Pursuant to Section 13.4 of the City Charter, the proposition must receive an affirmative vote by three -fifths of the efuali lied electors voting on the proposition to approve the sale ofthe municipill utility, Proposition No. 1 Sale of Seward Electric Utility Shall the City of Sc��..trd sell the; Seward 1 lectric Utility with the ne."ohated teI'111S and conditions pre%-iocISIV a11)IV cd hy City Council that are contimycrit on Voter Proii0 sition No. 1 1'es No A yes vote approves the sale of the electric utility. A no vote means the City of Seward retains the electric utility. Section 2. This resolution shall take effect immediately upon City Council approval of a purchase and sale agreement for the Seward Electric utility. Proposition No. 1 shall become effective only if approved by three-fiftl7S Oi'tlie clLzafificd voters voting on the; liropositlon at the special cleetion on May 2, 2023. PASSED AND APPROVED by the: City Council of the City of Scwarcl. Alaska. t17is 8`1 day of Auk Ust, 2022. AYES: DeMoss, McClure, Casagranda, Well NOES: None ABSENT: None ABSTAIN: None 209 CITY OF SEWARD, ALASKA RESOLUTION 2022-087 ATTEST: Brenda J. all 4MMCC" C'ity Clcrk (citl .-� of EIV `o PO •i. SEAL * w r � QF 5-per+•'• 04111 City Council Agenda Statement Meeting Date: August 8, 2022 To: City Council Through: Janette Bower, City Manager From: Rob Montgomery, General Manager - Electric Agenda Item: Resolution 2022-087: Submitting the Question of Selling the City of Seward Electric Utility to the Qualified City of Seward Voters at a Special Election in and for the City of Seward on May 2, 2023 Background and justification: With less than 3,000 electric meters on its system, the City of Seward's Electric Department has limited resources, making it difficult for the utility to consistently invest in new infrastructure, system maintenance, technology, and customer -focused programs and services. In addition to the financial limitations, Seward's small number of customers and meters will make it difficult for the City to maintain electric rate stability as necessary investments are made in the areas mentioned above. A larger electric utility with thousands more customers and meters will be able to spread expenses across its entire customer base, thereby ensuring more stability in customer rates. While there are obvious advantages to selling the electric utility, a key question for the Council and Seward citizens in looking at a potential sell is: "How will the City recover the lost revenue in the General Fund from Electric Department contributions, which come in the form of a Payment In Lieu of Taxes (PILT) and an Administrative Services fee for services such as billing, human resources, accounts payable and receivable, etc.?" The bottom line is that as long as the City runs Seward's electric system, there will be financial and human resource challenges to address. These challenges will directly impact the utility's customers in the way of rates, programs, services, and system reliability. For that reason, citizens of Seward should be given the opportunity to decide whether to keep the electric utility with the City or sell it to a qualified electric utility in Alaska, starting with a Limited Solicitation Request for Proposals this fall. City Administration is recommending to Council that a Special Election be held on May 2, 2023, to determine whether to sell or not sell the City's electric utility. By identifying a potential buyer prior to the Special Election, voters will have information made available to them that may assist in their voting decision. Following receipt of the proposals, the City will negotiate with, and select, the utility most qualified to meet the electric service needs of Seward while also sharing the City's community -focused values. The selected utility will be announced to the public prior to the vote on selling the utility and the selected utility is authorized to provide public information to City voters. Before the election, the City Council will enact an ordinance establishing a permanent fund for the receipt, investment, and use of proceeds from the sale and to direct that permanent fund revenues be used to make a yearly transfer to the General Fund and to fund capital improvements approved by the City Council. This ordinance will be contingent on voter approval of the sale. ►AIP Seward City Charter 13.4 permits the council to sell, lease or otherwise dispose of a municipal utility or of property and interest in property used or useful in the operation of a utility only after a proposition to do so is approved by three -fifths of the electors (voters) of the city voting on the proposition. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.7.1.4 "Continue to upgrade and expand utilities to meet existing needs and encourage future development." Strategic Plan: 13.3 Utilities Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ X Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted X Not applicable Finance Signature: Review ✓ Yes Attorney Signature: Not applicable Comments: Administration Recommendation eAdopt Resolution Other: ►4r 1 Sponsored by: Sower CITY OF SEWARD, ALASKA RESOLUTION 2022-088 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE 2022 CITY OF SEWARD BUDGET TO APPROPRIATE FUNDS IN THE A.%IOUNT OF S25,000 TO INFLUENCE THE OUTCOME OF ELECTION CONC:ERNINC TIIE BALLOT PROPOSITION SLlBN1ITTING THE QUESTION OF SEI.I,1NG THE CITY OF SEWARD ELECTRIC UTILITY TO THE QUALIFIED CITY OF SEWARD VOTERS AT A SPECIAL ELECTION IN AND FOR THE CITY OF SEWARD ON MAY 2, 2023 WHEREAS, Alaska Statute 15.13.145 (b) allows a municipality to influence: the outcome of an election concerning a ballot proposition or quest iott i f funds are specifically appropriated for that purpose; and WHEREAS, the appropriated funds may he used to disseminate information about the time and place of an election and to hold an election, and to provide the public with nonpartisan information about a ballot proposition; and WHEREAS, Alaska Statute 15.13.145(d) requires the city to report the expenditures to the Alaska Public Offices Commission; and WHEREAS, the city wishes to prm icic information to the voters about the sale of the electric utility in advance of an election; and NN'IIERE:AS, although the city is permitted to provide neutral information about ballot propositions, in an abundance of caution, an appropriation of funds in the amount of $25,000 is I-cgtIcsted to disseminate the information. NOW, T11 EREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OFSEWARD, ALASKA, that: Section 1. Funding in the amount of`i25.000 is hereby appropriated frow the 2022 budget froni Flectric reserves account no. 15000-()U()()-.j71() and will be transferred to the General Fund 01000-0000-3,700 for the purpose of providing ini krmation to voters which could possibly be viewed as influencing the outcome of a ballot proposition %vhich asks voters whether the city should sell the electric utility. Section 2. Funding in the amount of $25,000 is hereby appropriated from the Electric Enterprise Fund to the General Fund Unassi-ned Account 01000-0000-3400 appropriating the expense to the 01000-1110-7804 Elections Expense Account. Section 3. This resolution shall take effect immediately upon adoption. ►AN CITY OF SEWARD, ALASKA RESOLUTION 2022-088 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this gih day of August, 2022. AYES: McClure, Casagranda, DeMoss, Ca y0ES: Nook ABSENT: Nmic AIIS'l'AIN: Nook Brenda J. Ballo , MMC City Clerk PAM City Council Agenda Statement Meeting Date: August 8, 2022 To: City Council From: Janette Bower, City Manager Agenda Item: Resolution 2022-088: Amending the 2022 City of Seward Budget to Appropriate Funds in the Amount of $25,000 to Influence the Outcome of Election Concerning the Ballot Proposition Submitting the Question of Selling the City of Seward Electric Utility to the Qualified City of Seward Voters at a Special Election in and for the City of Seward on May 2, 2023 Background and justification: Alaska Statute 15.13.145 (b) permits the city to influence the outcome of the election if funds are appropriated for that purpose. This resolution appropriates the funds to influence the election. Alaska Statute 15.13.145 (d) requires reporting and registration rules related to the appropriation to be reported to the Alaska Public Offices Commission (APOC). Following adoption of the resolution, steps will be taken to comply with the requirements. The appropriated funds may be used to disseminate information about the time and place of an election and to hold an election, and to provide the public with nonpartisan information about a ballot proposition. The amount requested, $25,000, will be used to disseminate information about the electric utility and needed infrastructure, the cost of operating the electric utility, public meetings, and other activities to provide information to voters. Please note this is an estimated amount. Unspent funds will be returned to the electric reserves. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.7.1.4 "Continue to upgrade and expand utilities to meet existing needs and encourage future development." Strategic Plan: 13.3 Utilities Other: Certification of Funds Total amount of funds listed in this legislation: $ 25,000 This legislation (✓): Creates revenue in the amount of: $ ✓ Creates expenditure in amount of: $ 25,000 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): ✓ Not budgeted Not applicable ►*1M Finance Signature: Review ✓ Yes Attorney Signature: Not applicable Comments: Administration Recommendation eAdopt Resolution Other: 226 04n Homer Electric Association, Inc. September 7, 2022 By Hand Delivery The Honorable Christy Terry Mayor of the City of Seward P.O. Box 167 / 410 Adams Street Seward, Alaska 99664 Ref: Proposal by Homer Electric Association, Inc. to Acquire Utility Assets Operated by the Seward Electric Utility Dear Mayor and Council Members: It gives us great pleasure on behalf of the Board of Directors (`Board") of Homer Electric Association, Inc. ("HEA") to respond to the City of Seward's ("City") request for proposals for the sale of the Seward Electric Utility ("SES"). HEA proposes to combine our two electric utility systems into a newly named, member -owned electric cooperative that could be called Kenai Peninsula Energy Cooperative, Inc. Although structured as an acquisition of SES, in spirit HEA views this transaction as the merger of our two systems, which will serve to strengthen our shared Kenai Peninsula Borough culture and values for years to come. Attached to this letter is our Proposal Term Sheet ("Term Sheet") which describes the transaction in more detail. This cover letter expresses our excitement and identifies future benefits and opportunities that will come from the creation of a combined, member -owned electric cooperative which embodies the Mission Statement HEA operates under today: To safely provide reliable electricity to our members and our community through superior customer service and innovative energy solutions at fair and reasonable prices. Our proposal addresses the reality of the growing complexity impacting the electric utility business each year. Increased costs, the implementation of cyber and electric reliability standards, together with utility members' desire for instant and targeted communications and access to the best -in -class technology solutions combine to produce challenges across the industry. A combined HEA-SES member -based utility will capture economies of scale and allow our combined systems to mitigate the upward pressure on member rates caused by the current economic and regulatory environment. Our proposal seeks to provide SES representation at the Board level. HEA would offer the City the ability to appoint an Ex Officio member to the Board to serve for an interim period between the May referendum and approval of the transaction by the Regulatory Commission of Alaska ("RCA" or the "Commission"). After the Commission approves the acquisition, the Board will recommend to the membership a bylaw change providing for the City to appoint a Board member with full membership and privileges to serve an initial three-year term on the HEA Board. At the expiration of the initial term, members in e newly established City tri voting disct' thwould elect their own representation for all subsequent terms. It is important to us that our utilities are aligned and that SES fully participates in guiding the newly formed Kenai Peninsula Energy Cooperative from the beginning. This proposed district would include all members served directly by SES including members located inside and outside of the City boundaries. Cover Letter CONFIDENTIAL Page 1 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�185280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 We propose that the two utilities work jointly on opportunities to maximize time -sensitive Infrastructure Investment and Jobs Act (" IIJA") and Inflation Reduction Act ("IRA") grants for the benefit of both parties. Additionally, we propose discussion on how, during the regulatory approval and prior to closing of the transaction, we can jointly implement technology solutions and investments to provide for the most cost-effective integration of our utilities. Provided here is an outline of HEA's guiding principles and elements of our proposal that make HEA the best partner for the City and SES. Commitment to Employees HEA's employees are our greatest asset. Our proposal includes a commitment to offer all SES employees a position in the Seward area with the combined organization including the excellent wages and outstanding benefits that HEA offers its current employees. We recognize that SES has been tightly staffed to control electric rates. Combining the SES employees with the nearly 150-strong HEA workforce would provide more service resources to SES consumers than otherwise could be afforded on a stand-alone basis. The combined workforce will have a positive impact for SES consumers, especially during outage restoration. Commitment to Culture, Community & Economic Development HEA is unique in its relationship to SES in that we share the same values and commitment to our Borough community. We believe in expanding economic opportunities throughout the Kenai Peninsula Borough to continue a strong and diverse Kenai Peninsula community for the next generation. As our employees live, work and raise their families in the Borough, HEA members' and Seward kids play and compete in sports with one another in the Borough. Our utilities' professional staff work toward shared goals in the Borough. For all these reasons it makes sense for HEA and SES to become the combined utility that works together to serve Borough residents. As such, SES and HEA will immediately benefit from our respective extensive and long-term relationships with the Kenai Peninsula Borough and the individual communities on the Kenai Peninsula, on which we will capitalize in service to our combined membership. To that end, HEA recognizes that economic development related to Seward's expanding cruise ship industry could have a significantly positive impact on the City and its residents. We are committed to advocating on the City's behalf in providing service to support increased cruise ship docking capacity in the coming years. HEA looks forward to collaborating with the City on the significant investment necessary to upgrade the Port of Seward's electrical facilities to support shore power service for increased cruise ship traffic. An essential first step is pursuing the once -in -a -lifetime opportunity to secure federal funding for port and harbor infrastructure upgrades. If selected, HEA will immediately include the City in opportunities to seek ILIA and IRA grants.' HEA is ideally suited to support this investment with both engineering, development and financial resources and commits that if selected, will immediately begin an engineering feasibility study to determine the optimum design for improved port electric infrastructure. HEA will undertake this study as soon as possible after the parties come to terms on the sale of SES this winter, with the hope that preliminary results of the study can be communicated during the public education process leading up to the voter referendum on the sale next spring. 2 HEA has been supportive of the City's prior grant applications. Our records show a decades -long supportive relationship between our utilities on seeking economic development. As detailed below, HEA previously released a portion of its Alaska Energy Authority funded grant to allow SES to utilize these funds for its generation plant. HEA is also collaborating with the Borough to provide additional federal funding for Borough communities to remove beetle kill trees throughout the Borough thereby reducing fire risks on the Peninsula. Cover Letter CONFIDENTIAL Page 2 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996JJecj5280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 Commitment to Cost Effective Rates HEA strives to provide safe, cost-effective electric service consistent with our mission as costs continue to rise driven by economic and regulatory pressures as well as by required technological and infrastructure investment. While the electric service business is capital intensive, economies of scale provide some of the best available protection to ever increasing costs to consumers. Our proposal reflects a commitment to the investment needed to maintain a high level of service across our combined service area while providing electric rates into the future that are meaningfully lower than those consumers would otherwise see absent the combination of our utility systems. SES consumers can expect to immediately benefit from HEA's ongoing investments in regulatory compliance, generation and transmission, and maintenance. HEA actively participates in the ongoing regulatory discussions regarding the formation of an Electric Reliability Organization ("ERO"), formed at the direction of the Alaska Legislature, and charged by the RCA with implementing future ERO regulations. The ERO establishes a structure for interconnected grids focusing on electric reliability standards, cybersecurity standards, interconnection standards and Railbelt integrated resource planning. Adapting to new ERO requirements comes at a cost, and HEA has made a significant investment of resources to comply with the evolving regulatory standards. The ERO will continue to have startup and ongoing costs projected to be more than $11 million per year, which when allocated by electric sales volume, will cost HEA about 10% of that total. Seward will reap immediate benefits from HEA's regulatory diligence, and together our utility systems will be better prepared to address the ERO reliability and cybersecurity standards than either of our systems would be alone. HEA also has invested in its own generation and transmission ("G&T") assets through Alaska Electric & Energy Cooperative, our wholly owned, single -member electric cooperative. The opportunity to finance these assets with low-cost government funds and operate at a lower G&T equity ratio has decreased our members' cost of owning generation, Battery Energy Storage System resources and 215 miles of transmission voltage electric facilities. The benefit of HEA's energy security investments will be passed on to SES consumers if HEA's proposal is accepted. SES will benefit from HEA's commitment to and investment in consistent maintenance as well. HEA clears its right-of-way every spring and summer on a seven-year rotational schedule to prevent trees from falling on its power lines, mitigating a major cause of outages and reducing fire danger. Our members' and communities' safety are fundamental to everything we do and HEA, in conjunction with its full-time contractor, cleared 165 miles of trees and brush from its power line right-of-way in 2021. HEA is also soliciting additional federal funding together with the Borough to increase its clearing activities and mitigate fire risk on the Peninsula. Through the combination of our two service areas and the associated increase in ratepayers, costs that would otherwise be borne by Seward alone are spread across HEM much larger Kenai Peninsula service area. The combined utility will go far to ensure that Seward consumers have reliable and consistent service, while the economies of scale help protect Seward consumers from the upward pressure on rates that could otherwise result from today's economic and regulatory climate. Cover Letter CONFIDENTIAL Page 3 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�Jd5280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 Commitment to Cost Effective Rates, continued By example, HEA is uniquely situated to assist the City in upgrading the substations anticipated in SES' capital project list. HEA has recent, extensive experience with substation upgrades and will leverage it to help the City avoid costly pitfalls. Additionally, new industry electric reliability and critical infrastructure standards mandate significant upgrades to substations and cybersecurity protocols. HEA's IT department has aggressively managed cybersecurity issues on the front end and has implemented technology that positions us to meet or exceed future mandated cybersecurity standards. Moreover, HEA's IT department leads in cybersecurity, substation automation, Advanced Metering Infrastructure ("AMI") integration, supervisory control and data acquisition ("SCADA") modernization and Advanced Distribution Management Systems ("ADMS") among utilities in Alaska. In 2012, HEA pioneered cybersecurity training and support for both utilities and members that continues to this day, serving the business community, government and fraternal organizations across Alaska. We lead the development of managed cybersecurity technologies and were the first Railbelt utility with a dedicated, on -staff cybersecurity specialist. HEA continues to make significant upgrades to automation, reliability and cybersecurity to our substations, dispatch centers, and generation plants with cybersecurity investments of over $1 million annually during each of the past five years. This investment, along with our extensive on -staff engineering, technical and operational experience offers ready resources to meet SES' significant future mandated reliability and cybersecurity regulatory requirements. HEA's AMI uses multiple technologies to offer low-cost synergies that can integrate with SES' radio -based system with ease. HEA uses ADMS along with automated Fault Location, Isolation, and Service Restoration offering speedier outage restoration and improved member communications via automated web, text, and email that SES could take advantage of shortly after integration. Finally, our advanced SCADA and Distributed Control System networks allow fully redundant dispatch managed 24/7, 365 days a year from Nikiski, Kenai, Soldotna, and Homer and with the addition and integration of SES, Seward as well. HEA's significant investments in advanced technology has improved reliability and reduced operational costs to the benefit of our Kenai Peninsula members. Many if not all these innovative technologies would be almost immediately deployable to the SES service area following the close of the transaction as a cost-effective extension of the technology investments the HEA system already has made. Commitment to Renewable Energy Resources In January 2021, the HEA Board passed Policy 505 Renewable Energy Goal which establishes a goal of 50% renewable energy generation by the end of 2025. The Grant Lake Hydroelectric Project under development has received a Federal Energy Regulatory Commission ("FERC") license, with detailed engineering underway and an expected completion in 2025. This renewable resource would provide additional energy reliability that could be dispatched to the SES system. We also are in the final design stage of the Central Peninsula Landfill ("CPL") Gas project ("CLG"). Located just south of Soldotna, the CLG project is a 1.6 MW landfill gas -to -energy project in which landfill methane, 25 times more damaging than CO2, is converted to electric power. The waste heat from the generator will be captured and used to operate the leachate evaporator at the CPL. The captured waste heat will eliminate, or significantly reduce, the landfill's natural gas bill required to evaporate leachate, lessen dependence on fossil fuels, and increase efficiency. On average it is anticipated this project will save the Kenai Peninsula Borough almost $1.3 million per year in natural gas costs. These savings benefit the City and its residents who also use the landfill and shoulder a share of its operational costs. Cover Letter CONFIDENTIAL Page 4 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 99622-15280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 Commitment to Renewable Energy Resources, continued HEA will continue to support projects that benefit HEA and its community partners with a lens to maximizing the environmental benefits in a fiscally prudent manner. That includes supporting not only HEA-constructed renewable generation opportunities, such as Grant Lake and the landfill gas project, but also projects developed by other entrepreneurs. For example, HEA continues to work with potential landowners and developers to help facilitate the 20-megawatt solar project proposed near Sterling under development between Renewable Independent Power Producers and the Kenai Native Association, Inc. HEA also participated in the research and development of projects launched by Ocean Renewable Power Company, Inc. ("ORPC"), to develop cost-effective, utility -scale renewable power systems that harness energy from free - flowing rivers and tidal currents. ORPC submitted a preliminary permit application to FERC to initiate the installation of a pilot tidal energy project at East Foreland in Cook Inlet. If this effort is successful, HEA will be strategically positioned to utilize tidal energy in its future generation mix. HEA is proactive in seeking funding that reduces the ultimate costs paid by its members. HEA continues to develop appropriation requests for Renewable Energy Funds at the state legislature to pursue renewable energy projects. Over the past year, HEA successfully advocated for and expects to receive several million dollars in the form of grant awards and appropriations that will be used for renewable generation projects. The combination of our electric systems will provide for additional opportunities to expand clean energy generation into our generation mix including battery storage, solar, tidal and wind on a cost-effective basis. Commitment to Member Service and Communication HEA's primary focus is, and always has been, our members. HEA has prioritized the use of information technology to provide our members the best customer service possible. Our investments in full-time IT staff and state-of-the-art hardware and software ensure that members have easy online access to manage their accounts and pay their bills. Similarly, automated meter reading and service status reporting provide accurate and timely information to our members on a regular basis. Additionally, HEA has dramatically expanded its internal outage map and made it publicly available to provide members outage information in real time. As outages are reported to HEA, they are immediately depicted by location and size on the map. Making the outage map available to all members provides them immediate information when outages occur and ensures HEA accountability. The HEA outage map is built on mapping technology created and maintained by the Kenai Peninsula Borough. Since Seward is part of the Kenai Peninsula Borough, HEA will be able to incorporate the Seward system into its existing outage map quickly and at low cost, rolling it out to the SES service area almost immediately. HEA plans to increase the functionality of this tool by using it to communicate projected outage response times and to report on the cause of outages in real time. Cover Letter CONFIDENTIAL Page 5 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996220280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 Commitment to Member Service and Communication, continued HEA's members also benefit from HEA's energy calculator that allows each member to create an individual energy model based on their energy consumption. The energy calculator has a planning tool that empowers members with the information necessary to shop intelligently for appliances and control their own costs by determining how and when to use electricity at their home or business. Finally, HEA has an expansive financing program, generally offered with rates below market, that allows members to finance the purchase of various electric technology including but not limited to generators, solar panels and heat pumps. This financing program has been instrumental in expanding HEA's net metering programs. We are particularly interested in expanding the use of heat pumps in our service territory and admire the aggressive adoption of heat pumps within the City by Seward residents. Commitment to Operational Transition Plan HEA is not approaching this transaction simply as means to sell power to SES. HEA seeks a collaboration between our two utilities that would result in a new regional entity to serve the Kenai Peninsula created to limit upward pressure on rates, drive regional economic opportunities, and capture economies of scale across the Borough. To demonstrate our commitment to this partnership, HEA will ask its members to change its name to the Kenai Peninsula Energy Cooperative, Inc. HEA has already secured all of the domains necessary to ensure a smooth digital transformation to a new combined utility. We are thrilled to create this partnership with the City for benefit of the residents of the Borough. An overview of our initial thoughts concerning a proposed Transition Plan can be found throughout the Term Sheet and more specifically at Exhibit A. Commitment to Working Together HEA has a long history of collaborating with Seward that stretches back at least two decades. For example, in 2013, HEA was engaged in an $18 million transmission project associated with the Sterling substation upgrade that was at least partially funded by the Alaska Energy Authority ("AEA"). At the tail end of the project, HEA recognized that it could complete the project without expending the entirety of the AEA funds. HEA and SES worked together to ensure that these excess monies stayed on the Kenai Peninsula and in our communities with HEA returning approximately $1.7 million to AEA so it could be used for Seward's generation plant. Cover Letter * Kenai Office 'I * Hamer Office II t 0 12.5 25 50 Miles Esrl, HERE, G—,in, (c) Open S,ree,M,p —,rib—, and un�,Y ,he GIS user Legend * HEAOffices IIIIIIII Homer Electric Service Area - Seward Electric Service Area Kenai Peninsula Borough Homer Electric Association, Inc. CONFIDENTIAL Page 6 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 99EM35280 1 Phone: (907) 283-5831 1 Fax: (907) 283-2353 Commitment to Working Together, continued Likewise, HEA has assisted SES employees with their analysis of an SES-managed net metering program. It was an opportunity to help our sister utility develop this program and avoid making some of the painful and costly mistakes we made in implementing our own net metering program. HEA also has loaned HEA staff and HEA equipment to Seward when necessary. In 2020, HEA lent SES a 300 kV transformer needed for SES to maintain reliable service. Between 2014 and 2016, HEA sent an HEA warehouseman to Seward for several days to assist SES with managing a period of excess inventory. Our utilities' strategic location in the same Borough allows us to actively advocate for projects that mutually benefit each other and the Borough. With our existing track record of collaborating to solve problems and overcome challenges, we look forward to engaging in further discussions about what we can achieve together as a combined utility. In closing, we reiterate our great pleasure and excitement to provide this proposal to combine our two electric systems under the Kenai Peninsula Energy Cooperative, Inc. umbrella. We look forward to working with you to explore the mutually beneficial elements of our proposal and stand ready to answer any questions you may have. We invite SES and City officials to tour our facilities and engage in additional discussions if that would be helpful to your consideration of our proposal. Sincerely, Brad Janorschke General Manager Homer Electric Association, Inc Cover Letter CONFIDENTIAL Page 7 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 99621,f280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 PROPOSAL OF HOMER ELECTRIC ASSOCIATION CITY OF SEWARD ELECTRIC UTILITY PURCHASE SEPTEMBER 7, 2022 SUMMARY OF BUSINESS TERMS Homer Electric Association, Inc. The following provisions constitute draft terms associated with Homer Electric Association Inc.'s ("HEA" or "Cooperative") proposal in response to the City of Seward's ("City" or "Seward") Request for Proposal ("RFP") for the purchase of the Seward Electric Utility ("SES"). The terms and discussion herein describe a transaction where HEA is the `Buyer" and the City and/ or SES are collectively the "Seller" of substantially all of the electric utility assets used in the electric system operated by SES (the "Transaction"). These terms are not intended as a complete statement of, or a legally binding or enforceable agreement or commitment on the part of HEA All of the discussions of financial terms assume that the hereinafter "Assets" are transferred at the closing of a Transaction ("Closing") free of all liens and other encumbrances. 1.1 Structure of the Transaction On the terms and subject to the conditions to be set forth in a definitive, legally binding, written agreement to be negotiated by HEA and the City (and/or SES, as the case may be), and subject to the approval of the parties' respective governing bodies' ("Agreement"), HEA hereby offers to purchase all of the assets used in the electric system operated by SES ("Assets"), as outlined generally in the RFP and further clarified below: (i) all of the electric generation, transmission, and distribution property used in retail electric service to customers includable in Rural Utilities Service ("RUS") Plant Asset accounts 350-399; namely electric plant in service spanning generation, substations, poles and fixtures, underground facilities, conductor, services, transformers, meters, communication plant, dispatching and testing equipment which we interpret to be in addition to assets disclosed in Exhibit A to the RFP; (ii) inventories of electric service parts, transformers, poles and associated equipment; (iii) all vehicles, tools, and buildings, either owned or leased; (iv) customer business records; (v) franchises, licenses, easements, permits, certificates of public convenience and necessity; and, (vi) all regulatory assets related to or necessary for the retail operation of the Assets. HEA would also assume all regulatory liabilities and responsibilities related to the Transaction or necessary for the retail operation of the Assets. HEA would not acquire cash accounts receivable or other liquid financial assets of SES, which would be retained by SES and monetized to the benefit of the City as a part of the Transaction. HEA's Board of Directors have authorized its General Manager, pursuant to Resolution 45.2022.24, to submit this proposal and continue discussions with the City toward a possible Transaction. Attached as Exhibit B. Term Sheet CONFIDENTIAL Page 1 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996��d5280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 1.2 Purchase Price and Additional Cash Value to the City Based on HEA's and our financial advisor's valuation analysis, subject to due diligence and the negotiation of an Agreement, we propose to pay to the City gross proceeds of $25.25 million ("Purchase Price") for the Assets. HEA would not acquire the cash or other liquid financial assets of SES, aggregating approximately $5.3 million ("Excluded Assets" as defined in Section 2.1.2 below). The amount is based on the unaudited financial statements of SES dated March 31, 2022. When combined with the Excluded Assets, the cash proceeds available to the City as a result of the Transaction would be approximately $30.5 million. 1.3 Solutions to Address SES Contribution to the City's General Revenue Fund The RFP requests that HEA propose actions to offset the City's lost revenue from the Electric Department's General Fund contribution, which totaled approximately $2.1 million in 2021. HEA considered utilizing a Payment in Lieu of Taxes ("PILT") and/or a Franchise Fee to address the City's general revenue concerns. However, Alaska law imposes barriers on HEA's ability to structure a franchise fee, and recent rulings by the Regulatory Commission ofAlaska ("RCA" or the "Commission") indicate that a PILT agreement associated with the Transaction would not withstand regulatory scmtiny.2 Nonetheless, HEA understands the City's concerns about losing General Fund transfers from SES and believes that installment sale proceeds paid to the City General Fund or a "Budget Stabilization Fund" to which a portion of the sale price is deposited could serve the purposes of the City without creating regulatory uncertainty or the basis for rejection of the Transaction. In addition, HEA is supportive of the concept of a long-term lease of the existing SES or other administrative offices to HEA as an additional source of City General Fund revenues. As an independent governmental entity, the City Council, Administration and SES have the most insight regarding the City's unique needs and are in the best position to determine how the utility sale proceeds are used for the benefit of the City and its residents. Thus, HEA proposes several options for consideration. 1.3.1. The Budget Stabilization Fund The City could earmark part of the sale proceeds for a Budget Stabilization Fund similar to the Alaska Permanent Fund. HEA is amenable to the designation of any amount of the $25.25 million purchase price to be placed in an interest yielding Budget Stabilization Fund which the City can manage and utilize to offset the loss of SES revenues annually. 1.3.2 Payment of Purchase Price in Installments If the City believes that it would be beneficial for a part of the purchase price to be paid pursuant to a schedule of fixed payments (which could be quarterly or semi-annually) over time directly to the General Fund to offset the transfers from SES, HEA would honor such a request as part of the Transaction purchase price consideration. All such payments would be considered installment payments of the purchase price and not a PILT or Franchise arrangement for HEA's financial accounting. 1.3.3. Long -Term Lease HEA is interested in the potential for a lease of SES' existing office space in Seward to provide an additional revenue stream to the City. We understand that pursuant to Seward's Municipal Code such a lease would reflect fair market value and could be entered into on a short- or long-term basis, depending on City Council's assessment of the City's best interests. HEA defers to the City's judgment on how to best structure and utilize a revenue stream of a potential lease, but it could be one more avenue by which the City recoups forgone annual SES revenue following the Transaction. 2 The RCA recently addressed the use of a PILT to fulfill a municipal general revenue obligation in the sale of Anchorage Municipal Light & Power to Chugach Electric Association ("CEA'). In that instance, the RCA determined that the PILT proposed by CEA was not in fact a PILT, but merely a deferred payment mechanism considered to be part of the acquisition premium for that transaction. U-18-102(44)/U-19-020(39)/U-19-021(39), dated May 28, 2020, at 79-80. The RCA pointed out that CEA was not subject to property tax that could be replaced by the PILT, and thus the PILT was merely a mechanism by which the transaction could replace lost revenue from ML&P's Municipal Utility Service Assessment ("MUSA'), which the RCA noted was also not a true tax for which a PILT would be appropriate. Id. at 80. Based on the RCA's recent treatment of PILT, HEA's assessment is that the creation of a PILT in connection with the acquisition of SES creates similar regulatory risk that could ultimately delay or cause a rejection of the Transaction and resulting integration of HEA and SES. Term Sheet CONFIDENTIAL Page 2 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996J�65280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 1.4 Rates Unlike SES, HEM rates for electric service and tariff rules and regulations are fully regulated by the RCA pursuant to rate case review and approval. As such, the customers of the SES would become fully rate regulated HEA system ratepayers where any change to the rates, structure of the rates or tariff rules could only occur pursuant to the approval of the RCA following the Closing. HEA expects that the RCA will issue a timetable for achieving uniform rates as soon as practicable in its final order approving the transfer of the City of Seward's Certificate of Public Convenience and Necessity ("CPCN") for electric service. That approval by the RCA is necessary to consummate the Transaction, and a Closing contingency will include such an approval requirement. The CPCN transfer docket will not include a rate case provision, and HEA will assume the SES rates and tariffs in effect at the Closing up to and including the date of the anticipated requirement for a full rate case docket following some integration period. HEA anticipates submitting its rate case through a compliance filing reflecting 12 continuous months of joint utility operation, following the terms of the order that the RCA issues to approve the Transaction. The CPCN proceeding is projected to conclude in early 2024. After the Transaction closes and HEA has authority to operate Seward's system, HEA will adopt SES' rates, COPA methodology and existing fee structure for services in excess of standard service for the legacy SES area.3 Energy rates and customer charges will remain unchanged until the filing of HEA's compliance rate case in 2025, at which time HEA could propose to the RCA a change in its rates on an interim basis while the rate case investigation is ongoing. This is a standard RCA procedure, which gives the utility the ability to adjust rates without waiting 15 months for the RCA to finish the case, based on the RCA's preliminary review of the supporting rate studies. HEA's aim regarding rates is to combine SES and HEA expenses and develop a revenue requirement and cost of service study resulting in a uniform rate structure and common Cost of Power Adjustment ("COPA') for all member rate classes regardless of geography. To this end, HEA will initiate a load survey of both HEM and SES' systems upon Closing of the Transaction. The load study will cover a 12-month period of operations. Service costs will be compiled for the same timeframe to determine the revenue requirement and new uniform rate structure, consistent with RCA requirements. The cost of service study will show how the total systemwide costs are incurred (based on factors such as peak load by customer class) and should be allocated between customer classes, so that revenues are collected in a fair and equitable manner from each customer group. The RCA, with the consumer representative Regulatory Affairs & Public Advocacy section of the Department of Law likely participating as a party, will fully investigate HEA's proposals and make final decisions on rates either based on an all -parties settlement or, if settlement can't be achieved, through the adjudicatory process. Assuming RCA approval, HEA plans to continue SES' current methodology of collecting distribution expenses through base rates, and generation charges (fuel, demand and other generation and transmission charges associated with its existing wholesale power contract with Chugach Electric Association ("CEA" or "Chugach Electric")) through its COPA, at least until the current wholesale contract expires at the end of 2024 (unless the RCA orders a different timeline' or the City of Seward initiates a change on its own). Thus, the SES COPA will continue to fluctuate based on CEA power cost charges through the term of the contract. While negotiations, documentation and approval of the Transaction is ongoing, HEA expects that SES will continue to review its rates and implement any rate adjustments that are necessary to maintain a prudent financial structure and comply with all covenants of any debt agreements. 03 HEA will propose adopting SES'rates in its RCA application as the rates that HEA will charge in the legacy SES area until rates are combined in the rate case. The RCA's rules require that the acquiring utility adopt existing rates for a period of time, so that the RCA does not have to investigate rate changes at the same time as it is reviewing the certificate application. ° HEA plans to ask the RCA to waive its COPA rules so that HEA may adopt SES' COPA methodology even though it is not in compliance with RCA regulations. HEA assumes the RCA will consent to its proposal in its final order approving the certificate transfer, but it's possible the RCA may instruct otherwise. Term Sheet CONFIDENTIAL Page 3 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�ffi5280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 1.5 Customers and Members After the Transaction closes, SES customers would become members of HEA. HEA will waive the application and record fees for all SES customers to become members. HEA will assume all customer deposit refund obligations and honor the obligation to return such funds pursuant to SES' customer deposit policies. This approach will eliminate all barriers to transitioning SES customers to HEA members and provide the cooperative membership at no cost to SES customers. A valuable member benefit offered by HEA is the opportunity to share in the margins (synonymous with profits) of the cooperative through receipt of capital credits and their subsequent payment to members over time. Each member of HEA is eligible to share in the cooperative's margins similar to how a shareholder of a for -profit company shares in the profits of the company. A for -profit company distributes the company profits to its shareholders in the form of a dividend. HEA distributes its margins to its members in the form of a capital credit disbursement. In 2021-2022, HEA distributed $9.1 million to its members in the form of capital credits. HEA currently has three election districts from which its nine Board Directors are elected. HEA intends to advocate for a bylaw revision creating a fourth district (District 4) consisting of the geographic region comprised of the SES customers. Ultimately, the intent is to allow the members in District 4 to elect their own board representation. However, HEA wants to provide an early opportunity for Seward to meaningfully participate in HEA s existing governance structure. HEA proposes that the City appoint an Ex Officio Board Member to the HEAboard upon City Council's approval of a purchase and sale agreement, currently targeted for December 31, 2022. Thereafter, upon RCA approval of the Transaction, HEA proposes that the City appoint a Board Member with full membership and privileges to serve as the HEA Board Member representing the new District 4. The City -appointed Director would serve for the first three-year term following the Close of the Transaction. When that term expires, a District 4 election would be held per the combined utility's bylaws and the District 4 members would elect their own representation to the HEA Board. HEA is strongly committed to providing meaningful City representation on its Board from the earliest date possible. 1.6 Port & Harbor Facilities HEA recognizes that the Port of Seward is an economic driver for the City and is committed to working with Seward to maximize the opportunities to modernize the port thereby increasing the value to users of the port and maximizing Seward's tax revenue. HEA's commitment begins with commissioning an engineering feasibility study to determine the optimum design for improved port electric infrastructure to support continued development of the cruise ship industry in Seward as soon as practical following HEA and SES reaching commercial terms of a Transaction. HEA will also commit to actively solicit Port Infrastructure Development Program ("PIDP") grants in the event that HEA is selected to purchase SES. The National Defense Authorization Act for Fiscal Year 2022 and the Infrastructure Investment and Jobs Act ("IIJA") authorized and appropriated $450 million for the PIDP to make grants to improve facilities related to operations of coastal seaports. The total funding amount of $2.25 billion for these grant programs is spread over the next 10 years. This provides HEA and Seward with the opportunity to jointly pursue these grant funds, possibly even on an interim basis during regulatory approval, if such a joint solicitation effort is amenable to the City. Ownership and rate governance at the point of delivery would largely depend on the structure of funding available at the time of construction. Required facility infrastructure investments would likely include the upgrade and/or replacement of substation equipment, transmission lines and feeders in addition to the construction of a new substation and portside metering and distribution facilities. It will be critical to leverage the grantees' ability to secure funding to minimize these impacts while delivering all its benefits to the newly combined membership. Term Sheet CONFIDENTIAL Page 4 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 99621f)280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 1.7 Sustainability The HEA Board has made expansion of renewable generation a priority, incorporating it as one of six pillars in its strategic plan. Most recently, HEA adopted Policy 505 Renewable Energy Goal which establishes a goal of 50% renewable energy generation by the end of 2025. Further, HEA recently created and filled a new full-time position dedicated solely to coordination of its renewables program. This position would promote renewable energy development for the legacy SES territory upon the Closing of the Transaction. Since 2008, HEA has supported its members in increasing the amount of renewable energy on its system from 2 kilowatts to over 3,231 kilowatts (through July 2022). HEA created a team to assist members who want to pursue solar, wind or any other renewable form of energy, at their property. The Cooperative's website includes a detailed process for members to follow for these types of installations. HEA will extend the same policies and process for the legacy SES territory upon the Closing of the Transaction. 1.8 Employees HEA provides excellent wage and benefit packages to both our union and non -union employees. We recognize that SES has a current collective bargaining agreement ("CBA') with the International Brotherhood of Electrical Workers ("IBEW") that includes a binding agreement clause where the current CBA is binding upon the successor in the event of the sale of the utility. HEA anticipates SES employees represented by the union would join HEA through the assumption of the current SES union contract. At the point where the IBEW believes that combining the former SES and HEA contracts into a single integrated CBA, HEA stands willing and able to accomplish that contract integration process after the Closing of the Transaction. HEA also has a long-standing relationship with the IBEW, and we are open to meet and confer with the union regarding the SES employees they represent at any time during the discussion of this proposal. HEA plans to extend offers of employment to all non -union SES employees and believes the combined wage and benefit package is very competitive in the local labor market as well as what is expected within the electric utility industry. We have attached as Exhibit Cbenefits categories for ourunion utility workforce along with specific benefit plan information for HEA s three union contracts referred to as the Inside, Outside and Generation collective bargaining agreements. HEA offers a competitive pay and robust benefit package for non -union employees which will be extended to all SES non -union employees. A basic overview of HEA's non -union benefits is also provided in Exhibit C. We welcome the opportunity to discuss HEA's compensation and benefit plans directly with the City if desired. 1.9 Power Supply & Transmission HEA will assume and honor to its term the 2022 Wholesale Power Contract Between Chugach Electric Association, Inc., and The City of Seward d/b/a Seward Electric System ("Power Supply Agreement") and the Agreement For Joint Use of Facilities ("2022 JU Agreement"). Ultimately, HEA intends to integrate SES' power requirements into the power supply portfolio of HEA as provided through Alaska Electric & Energy Cooperative (AEEC), HEA's wholly owned, single -member electric cooperative. The transition of the legacy SES territory to a dependable, internally generated and renewable energy portfolio of resources provided by HEA will be orderly, and HEA commits to maintaining emergency power generation facilities in Seward. As an example of HEA's experience in owning, operating and maintaining the important generation facilities located in the SES system, the following discussion is provided for reference. Term Sheet CONFIDENTIAL Page 5 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996J�cj5280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 HEA 1.9 Power Supply & Transmission, continued HEA currently operates and maintains five generation facilities and eight emergency backup generators to service HEA members and SES prospectively. Generation Facilities • Nikiski Combined Cycle Plant (80 MWs) • Soldotna Combustion Turbine (48 MWs) • Soldotna Battery Energy Storage System (46.5 MWs) • Bernice Lake Plant (Three Combustion Turbines (76 MWs) • Bradley Lake Hydroelectric Project (14 MWs — under State contract) HEA's total nameplate generation capacity is 218 MWs. Emergency Backup Generators • Seldovia Diesel Generation Plant (2.2 MWs) • Port Graham Diesel Generation Plant (750 kW) • Kenai Office Generator • Homer Office Generator • Soldotna Communications Generator • Kasilof Communications Generator • Ninilchik Point Communications Generator • Diamond Ridge Communications Generator All of these generators are kept in a state of readiness, tested or operated monthly to ensure emergency availability. All maintenance activities are coordinated using a CMMS (Computerized Maintenance Management System). All generators are remotely monitored in our Generation Dispatch Center that is manned 24/7. HEA has extensive experience in servicing communities that are served by a single radial feed (typical of Seldovia, Port Graham and Nanwalek). System status is constantly monitored and emergency generators are kept in a state of readiness in case of an outage. HEA's Power, Fuels & Dispatch Department ("PFD") provides 24/7 coverage of the Transmission & Generation System and the Nikiski Combined Cycle Plant. Hourly load schedules and fuel nominations are completed daily. Transmission activities are scheduled and coordinated to minimize impacts to reliability and availability of power supply. PFD ensures safety and regulation compliance of all facilities/generators within water and air permits and would provide these functions for SES existing generation plant. Pursuant to the RFP, HEA scheduled an inspection visit to SES on September 2, 2022. As part of this visit, HEA toured the SES generation plant. HEA met with a SES plant operator and discussed SES' commitment to monthly testing for existing SES generation assets. HEA would continue to ensure SES' emergency generation assets are kept in a continual state of readiness after the Close of the Transaction by continuing with monthly testing. We understand that SES plans to rebuild multiple substations. Upon the successful contract negotiation by and between our utilities, HEA would assist SES with these substation upgrades. HEA has recent experience with substation upgrades that integrate the required ERO-imposed reliability, communication and cybersecurity requirements. HEA's expertise in this area will allow SES to avoid the costs associated with external consultants and ensure that these substation upgrades are compliant with existing and proposed regulatory requirements. Term Sheet CONFIDENTIAL Page 6 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�Jd5280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 1.10 Financing If discussions progress, HEA will obtain a firm commitment letter for proceeds to finance the Transaction. HEA maintains a strong equity position of 46% and a Modified Debt Service Coverage ratio of 1.35 or above for which it receives equity, performance, volume and collateral discounts from the National Rural Utilities Cooperative Finance Corporation (CFC), a nonprofit, member - owned finance cooperative with more than $30 billion in assets, spanning 1,000 members across 49 states. 1.11 Other Provisions The Agreement would contain usual and customary representations, warranties, covenants, other necessary agreements and such other provisions as may be proposed by either SES or HEA and agreed upon by both parties. The Closing, as discussed in the Agreement, would be subject to usual and customary conditions, including, but not limited to: (i) receipt of all necessary consents or approvals of governmental bodies, including but not limited to the RCA, lenders, lessors and other third parties; (ii) absence of pending or threatened litigation regarding the Assets or the Agreement; (iii) absence of material adverse change in the Assets or the financial condition or prospects of SES; and, (iv) delivery of customary legal opinions, closing certificates and other documentation. STAKEHOLDER BENEFITS The following provisions reflect our thoughts regarding some consideration for the respective stakeholders of the City and HEA. The stakeholder benefits are an important consideration as the City weighs and evaluates potentially multiple proposals, and although not legally binding, the stakeholder benefits represent HEA s sincere, good faith commitment as a part of the Transaction documentation. 2.1 Benefits to the City of Seward Residents 2.1.1 We have outlined many of the benefits of the SES consumers becoming members of the HEA and SES combined utility in our proposal. Beyond the benefits to electric consumers, City residents would also benefit from the Transaction by lowering the outstanding amount of debt on the City's taxing authority and freeing up borrowing capacity to fund other City priorities without the capital requirements of the electric utility system creating competing needs for funds. We recognize that City budgeting has historically had transfers and payments from SES to the general fund which offset otherwise necessary taxes or fees. As discussed above, HEA proposes to fund a dedicated amount of the purchase consideration into an account to be drawn upon at the City's discretion for a period of 10 years to make up any shortfall in the City's budget. 2.1.2 As outlined in Section 1.2, HEA would acquire the utility plant assets of SES but would not acquire the cash or other liquid financial assets of SES, aggregating approximately $5.27 million, which when added to the proceeds Term Sheet from the sale of the utility assets of SES, would provide total cash proceeds at or shortly following the Transaction in the amount of $30.5 million. "Excluded Assets" is defined as: (i) cash and cash equivalents; (ii) restricted assets and investments of reserves; (iii) accounts receivable billed and outstanding as of the Closing of the Transaction; and, (iv) other deferred assets and liabilities not related to the retail operation of the Assets. CONFIDENTIAL Page 7 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996fi,5280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 2.1.2 continued It is important to understand that the monetization of the Excluded Assets can only occur within the context of a transaction for the sale of the Assets. HEA does not consider the approximately $5.27 million of Excluded Assets to be a part of the Transaction's consideration because the assets are currently held to support SES' ongoing operations. However, the ability for the City to monetize these Excluded Assets and redeploy these funds can only occur if they are no longer required to support the operations of SES. The table below provides the support for the calculation of the value of the Excluded Assets, net of current liabilities paid from the cash balance following Closing of the Transaction, as of the unaudited financial statements of SES dated March 31, 2022. Exhibit D contains a more detailed analysis of the information presented below. Net Proceeds to the City based on financials as of 3/31/2022 3/31/2022 Cash and Special deposits retained $8,325,416 Accounts receivable retained 1,532,400 Net liquid assets retained $9,857,816 2022 Bond — adjustment 10,092,211 Adjusted Net Liquid Assets $19,950,026 Less 3/31/2022 Bond balance ($14,441,390) Accounts payable 23( 9,956) Net Assets Retained $5,268,680 Purchase Price from HEA 25,250,000 Net Proceeds to the City S30,518,680 2.2 Benefits to Customers HEA has long-term experience as a rural electric cooperative in Alaska and brings to its members the best of the benefits inherent in the cooperative form of utility ownership. Since 1950, the Cooperative has reliably served its members, growing from just 56 members then to more than 25,000 today. The Cooperative is exceptionally strong and stable both in its leadership and finances and has invested more to future proof for a reliable electric system that meets or exceeds state and industry standards than any other Alaska utility. Term Sheet Exceptional Board stability Reflects HEA member satisfaction with the direction of the Cooperative Strong continuity of senior leadership HEA General Manager is the longest serving of Railbelt GMs at 18 years Enjoys consistent and continuous financial HEA equity is among the highest of all stability electric cooperatives at 46% Proactively and responsibly invests in its Integrated and implemented existing, infrastructure and security anticipated reliability and cybersecurity standards as HEA upgraded its substations CONFIDENTIAL Page 8 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996JJ:fi280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 2.2 Benefits to Customers, continued HEA has invested heavily in state-of-the-art grid modernization and consumer interface systems that provide real benefits to consumers. Outage response and restoration is made much faster and more efficient with our smart grid and Advanced Distribution Management Systems. Our investments in technology are scalable to another organization and we would expect to deploy these technologies as soon as practical for the benefit of SES customers. As SES knows, our business is capital intensive and staying on the cutting edge of technology with the ability to invest in best practices has an economy -of -scale component. Quite simply, HEA members and SES customers would benefit from being a part of a larger organization that is able to keep pace with the technological investments necessary to maintain the high levels of service, reliability and system security required by this ever more complex business. The following partial list of technology HEA has invested in is illustrative of our capabilities in: • Outage management systems • Interactive outage reporting and response • Geographic information mapping • Engineering analysis • Field staking • Automatic metering capabilities • Meter data management • Mobile workforce management • SCADA (supervisory control and data acquisition) control systems • Mutual aid agreements • Energy calculators • Mobile applications for payment • Digital communications including social media, automatic texting and podcasts • FLISR (fault location, isolation and service restoration) automated outage detection • Prepay metering • AMI (advanced metering infrastructure) including 15 minute metering data • Document imaging and archiving • Advance cybersecurity support • Mobile app and bill pay website • Online outage map • 24/7/365 Cooperative response center • SHRM (Society for Human Resource Management) -certified human resource professionals • Generation management systems • High-speed telecommunications fiber and broadband networks • CMMS (computerized maintenance management system) for maintenance planning and projection In addition, we have a number of unique staff positions that leverage our investment in the various technologies including a full-time communications and public relations strategist; dedicated purchasing and procurement specialists; a safety compliance officer; dedicated finance, accounting, customer service and information technology departments; a cybersecurity specialist; project managers and engineering professionals. A full list of these department and functions can be found at Exhibit E. Term Sheet CONFIDENTIAL Page 9 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 99EM35280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 HEA III. OTHER PROPOSED TERMS In addition to the terms and benefits we have discussed above we have listed a few additional considerations which we would propose incorporating into our discussions. 3.1 Confidentiality We have kept the development of our proposal closely held within our organization and we commit to having future discussion in a confidential manner, if the City so desires. 3.2 Joint Public Communications We assume that the City will eventually want to publicly discuss the proposal and when that occurs, HEA will be available to support and coordinate any discussion deemed in the best interests of the City and its residents. 3.3 Access to Information and Facilities In the event that the City has interest in pursuing further discussions, we would propose to have access to additional confidential due diligence information, potentially including some site visits or inspection of assets. We would coordinate these activities with the City in a manner best able to maintain non -disruptive scheduling and convenience. 3.4 Costs The level of financial analysis and development of nuanced terms in our proposal reflect HEA s ongoing financial investment in this sincere effort to pursue a Transaction with the City. HEA will continue to pay for all of its costs, and if discussions do progress, we expect the City to pay for its costs. In the event the City selects our proposal for further negotiations, HEA commits to moving efficiently and cost effectively to a Transaction, as we recognize that the process can get expensive. We would look to the City to agree to identify and address the bigger business terms early on in our discussions to determine if the outline of a Transaction is possible at the lowest cost to both of our utility systems. Term Sheet CONFIDENTIAL Page 10 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�W280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 PAGE: Homer Electric Association, Inc. Exhibit A HEA's Proposed Transition Plan Operational Transition Plan' HEA is not approaching the Transaction simply as a means to sell power to SES. HEA seeks a collaboration between our two utilities that would result in a new regional entity to serve the Kenai Peninsula created to limit upward pressure on rates, drive regional economic opportunities, and capture economies of scale across the Borough. To demonstrate our commitment to this partnership HEA will ask its members to change its name to the Kenai Peninsula Energy Cooperative. HEA has already secured all of the domains necessary to ensure a smooth digital transformation to a new combined utility. We are thrilled to pursue this partnership with the City for the benefit of Kenai Peninsula Borough residents. Upon the execution of an agreement by and between HEA and SES, it is our intent to take immediate and proactive steps to merge the operations of our utilities. While we cannot fully integrate our utilities until the RCA approves the Transaction, we can take a proactive and collaborative approach to make the approval process a period during which our utilities identify and address matters important to our collective success. RCA Transition Plan HEA has structured an offer to SES that it believes will result in a standard RCA approval process that avoids known regulatory pitfalls by excluding terms (e.g., PILT and Franchise Fee) that it knows will draw extra RCA scrutiny. We believe our proposal is fair to both parties, addresses the City's concerns, and should be approved expeditiously. HEA plans to be ready to file its petition with the RCA approximately thirty (30) days after a successful City referendum allowing the City to sell SES. This aggressive schedule and HEA's diligence to avoid contract provisions creating undue scrutiny could result in the RCA approval of the merger by the end of 2023. An RCA approval by the end of 2023 will enable our utilities to develop a rate case using 2024 as the rate case test year. This test year data will to be developed in studies and submitted to the RCA in a rate case proposing a single rate structure for our utilities, which could be filed with the RCA January 1, 2025. If we rigorously follow this aggressive schedule then a unified rate structure could be approved by the RCA and adopted by our utilities by 2027. Interim Collaboration Between HEA & SES HEA is amenable to the creation of an interim relationship allowing HEA to assist in the transition of leadership and management of the SES system in advance of RCA approval. For the most streamlined transition to uniform billing of rates, the full deployment of load study capable metering, reliable communication devices, analysis and creation of auditable plant asset records and accounting records, and billing and credit services would be best employed in the interim between referendum vote and RCA approval. After the referendum, HEA is committed to collaborating with SES to provide SES with access to HEA's robust administrative resources including the: (1) Finance, Accounting & Regulatory Department; (2) Safety Officer and immediate access to monthly and annual safety education programs; (3) Information Technology Department; (4) Member and Public Relations Department; and, (5) Administrative and Fleet Services; (6) Procurement & Purchasing Staff including a dedicated employee for purchasing and procurement processes. ' HEA has already detailed its transition proposal for power generation, regulatory matters and other items in its Terms and Conditions. To avoid duplication those items addressed in the Terms & Conditions document are not repeated here. Exhibit A CONFIDENTIAL Page 1 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�J&280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 Interim Collaboration Between HEA & SES, continued These labor resources are in addition to HEA's generation, operations and engineering departments. HEA is willing to work with SES as it begins the substation upgrades and creates and implements its overall system maintenance program. We believe that these resources will not only provide additional competencies and labor resources to SES but will also reduce the need for expensive outside consultants and also reduce the administrative load the City has devoted to providing many of these services to SES thereby allowing the City to redeploy its labor resources to other City functions. Billing & Metering SES uses radio -based metering to provide its customers use data. A single City employee (employee provides billing and metering services to SES but does not work for the SES) reviews both the water & sewer and the utility meters and creates a single unified bill for customers using water & sewar and electricity provided by the City. SES has started the process to separate its water & sewer bills from its utility bills. This bill division is critical to allow the rate data information needed for a rate case to be gathered during the 2024 test year and to allow integration into HEA. Separation of the water & sewer utilities is a first step to allowing SES billing to be integrated into HEA's Customer Information system ("CIS"). Currently, SES uses radio -based meter technology that can be integrated into the CIS billing system and TWACS metering system. HEA intends to prioritize the installation of Advanced Metering Infrastructure ("AMI") for the SES meters to reduce the labor resources necessary to read the SES meters. Once the meter reads are integrated into TWACS, HEA can use its existing billing department to bill SES customers on a monthly basis. Outage Management & Outage Communications HEA's AMI uses multiple technologies that allow integration with SES' radio -based system. HEA uses Automated Distribution Management System (ADMS) along with Fault Location, Isolation, and Service Restoration allows early identification of fault locations thus providing speedier outage restoration. ADMS is tied to our HEA Outage Map which is published on the HEA website and updated in real time. Anyone can visit HEA's Outage Map and have access to the current status of all known outages in real time. HEA created its map from the Kenai Peninsula Borough GIS mapping data files. The Borough has already created the GIS mapping information for SES allowing HEA to integrate SES into its existing Outage Map immediately. Moreover, HEA will provide SES with a local outage number that will link customer information directly to the Outage Map allowing for real time outage reporting to Dispatch and the immediate depiction of SES outages directly to the Outage Map. This also would tie SES customers into our Interactive Voice Response System providing automated communication via automated web, texts and emails. These tools could be deployed for SES shortly after integration. HEA uses advanced supervisory control and data acquisition ("SCADA") and distributed control system networks to create redundant dispatch managed coverage 24/7, 365 days ayear from Nikiski, Kenai, Soldotna and Homer. Even prior to deploying AMI technology, SES could be incorporated into and have access to these control networks. HEA will deploy its existing advanced technology to continuously improve reliability and reduce operational costs for the benefit of both HEA and SES and the individuals we serve. Exhibit A CONFIDENTIAL Page 2 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 99EM75280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 Employee Integration We have already discussed our commitment to retain all SES employees and look forward to a united workforce. We are committed to providing employment offers to all SES non -union employees which include a competitive pay scale, which appears in most cases, to exceed SES employee's current wage scale along with a suite of robust employee benefits. We recognize that stability is important to SES' dedicated employees. Accordingly, all of our offers of employment will allow SES' existing employees to continue their employment in their current geographic location. The existing SES bargaining agreement contains a clause that allows the SES union employees to keep the existing bargaining agreement in full force and effect after any sale of SES. Additionally, HEA is committed to meet and confer with the IBEW regarding the SES represented employees regarding integration into HEA contracts. HEA is committed to employ all union and non -union SES employees and to engage in conversations with those employees about their employment ideas. Exhibit A CONFIDENTIAL Page 3 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 9967385280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 EXHIBIT A Assets Property, plant & equipment $ 68,155,114 $ CWIP 535,870 Accumulated depreciation & amortization (48,407,710) _ Net electric plant in service 20,283,273 Cash & special deposits 8,325,416 Accounts receivable - net sales of energy 1,532,400 Inventories 721,247 Prepayments 7,076 Total current assets 10,586,139 Deferred debits 97,893 Total assets $ 30,967,305 $ Liabilities & equity Total margins & equity 14,772,494 Total LT debt 14,441,390 Accounts payable 239,956 Current portion - long term debt - Customer deposits 188,163 Taxes payable and taxes accrued Other current liabilities 10,092,21' 10,092,21' 10,092,21 $ 68,155,114 $ 535,870 (48,407,710) _ 20,283,273 18,417,627 1,532,400 721,247 7,076 20,678,349 97,893 1 24,864,704 14,441,390 239,956 188,163 $ 68,155,1 14 535,870 (48, 407, 710) 20,283,273 (18,417,627) - (1,532,400) - 721,247 7,076 (19,950,026) 728,323 97,893 (19.950.026) $ 21.109.489 (5,268,680) 19,596,024 (14,441,390) - (239,956) 188,163 Total current liabilities 428,119 428,119 (239,956) 188,163 Customer advances for construction 388,534 388,534 388,534 Deferred Inflows for Pension 173,925 173,925 173,925 Net Pension Liability 762,843 762,843 762,843 Total deferred credits & other liabilities 11325,302 1,325,302 1,325,302 Total Liabilities & Equity $ 30,967,305 $ - $ 41,059,515 $ (19,950,026) $ 21,109,489 Net Cash Retained by SES $ 5.268.680 Offer $ 25,250,000 Net Cash Retained 5,268,680 CONFIDENTIAL Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�1�280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 240 Homer Electric Association, Inc. Corporate Office Central Peninsula Service Center 3977 Lake Street 280 Airport Way Homer, Alaska 99603-7680 Kenai, Alaska 99611-5280 Phone (907) 235-8551 Phone (907) 283-5831 FAX (907) 235-3313 FAX (907) 283-7122 RESOLUTION 45.2022.24 AUTHORIZATION TO SUBMIT A RESPONSE TO REQUEST FOR PROPOSAL WHEREAS, the City of Seward has issued a Request for Proposal for the purchase of its electric utility; WHEREAS, Homer Electric Association, Inc. and the City of Seward electric utility share many common characteristics including their locations on the Kenai Peninsula, significant rural population base, and extensive distribution networks; WHEREAS, Homer Electric Association, Inc. and the City of Seward have historically cooperated in serving the needs of their respective utility systems; WHEREAS, Homer Electric Association, Inc. is interested in assisting the customers of the City of Seward in satisfying their electrical service requirements. BE IT RESOLVED, the General Manager is hereby authorized to explore how Homer Electric Association, Inc. can assist the City of Seward with its efforts, including submitting a response to the Request for Proposal. CERTIFICATION I, Jim Duffield, do hereby certify that I am the Secretary of Homer Electric Association, Inc., and that the foregoing resolution was adopted at a regular meeting of the Board of Directors, held on August 30, 2022, at which meeting a quorum was present. �5�0TAAC«ii� Jim Duffield Secretary/Treasurer '°nnnrrumn'�"` A Touchstone Energy' Cooperative 7(.n -A oz,VA Wage and Benefit Comparisons - Union Employees HEA Outside CBA HEA Generation CBA HEA Inside CBA Seward Electric Utility Payroll Frequency Weekly Bi-Week) Semi -Monthly Bi-Week) Hourly Wage Rate Journeymen Linemen $52.26 $51.45 Line Foreman $58.53 $57.62 Leadman $55.40 $54.02 Power Plant Operator / Mechanic $49.41 $51.45 Field Engineer HEA- Engineering Tech II or III $34.47-$56.15 $43.73 Annual Leave Maximum Accrual Balance 720 Hours 720 Hours Annual Accrual based on Years of Service (YOS) YOS Hrs/Yr 0-3 144 3+ 240 YOS Hrs/Yr 0-2 160 3-5 200 6-9 240 10-14 303.33 15+ 347.1 Holidays 12 12 New Years President's Seward's Memorial Independence Labor Veterans Thanksgiving Thanksgiving Day Following Christmas Eve Christmas New Year Eve New Years President's Seward's Memorial Independence Labor Alaska Veterans Thanksgiving Thanksgiving Day Following Christmas Eve Christmas BENEFTIS PROVIDED BY ALASKA ELECTRIC TRUST FUND Health & Welfare Insurance Benefits - Combined Premium Employee Monthly Premium $69.20 $69.20 $94.94 Varies by Plan Company Monthly Premium $2,243.80 $2,186.80 $2,224.06 $2,202.00 Medical Insurance Plan 552 Plan 553 Plan 551 Dental Insurance Plan 601 Plan 601 Plan 601 Vision Insurance Plan 702 Plan 702 Plan 701 ShortTermDisability Insurance Plan 801 Plan 801 Plan 801 Life & Accidental Death and Dismemberment AD&D Insurance Plan 901 Plan 901 Plan 901 Pension/Retirement Benefits Alaska Electrical Pension Fund AEPF - Company Contribution $11.37/COm ensable Hr. $10.00/Com ensable Hr. $6.50/Com ensable Hr. $9.33/Com ensable Hr. Alaska Electrical Trust Fund Retirement Savings Plan AEWRSP - Company Contribution $3.72/Com ensable Hr. N/A N/A $255/Mo. BENEFITS PROVIDED BYTHE NATIONAL RURAL ELECTRIC COOPERATIVE ASSOCIATION (NRECA) 401(k) Plan Company Contribution - Non -Match 0% 5.5% base a 6% of base a unknown Company Match N/A N/A additional 1 % unknown Long -Tenn Disability Plan Company Contribution 100% of benefit paid by company unknown Disability Monthly Benefit 66 2/3% of your monthly earnin s u to a maximum month) benefit of $15 000 unknown Benefit Period Begins Afler 13 weeks of disabilfty unknown Basic Life and AD&D Insumnce Basic Life and AD&D Insurance Benefit Level for Employee - Company Pas 2x annual base salary unknown Maximum Basic Life Insurance Benefit $1,000,000 unknown Maximum AD&D Insurance Benefit $1 500 000 unknown Supplemental Life and AD&D Insurance Coverage Available -Employee Pays Em to ee mav elect to Durchase up to 5x annual base earnings for self. s Ouse and child unknown 243 244 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Medical Plan 553 Annual Deductible Per Person $600 Per Family $19200 Hospital Inpatient Deductible Alaska Regional Hospital Mat -Su Regional Hospital Alaska Hospitals (outside Anchorage) Aetna Preferred Hospitals (outside Alaska) $300 Non -Preferred Hospitals (inside Anchorage and outside Alaska) $600 Reimbursement Percentage Preferred Provider and Out -of -Area 85% Non -Preferred Provider* 65% Reimbursement Percentage After Out -of -Pocket Maximum is Reached 90% $2,700 family Out -of -Pocket maximum 100% $5,400 family Out -of -Pocket maximum * Applies to the first $50,000 of Covered Charges; thereafter reimbursed at the Preferred Provider percentage 553 SB-1 6/2016 245 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Dental Plan 601 Annual Deductible None Reimbursement Percentage Part I — Routine and Preventive 90% Part II — Basic Dental 90% Part III — Major Dental 90% Orthodontia 50% Annual Maximum Benefit (Part I, II, III) Per Person $29000 Orthodontia Benefit Dependent Children Only $2,000 lifetime maximum benefit 601 SB-2 6/2016 246 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Vision Plan 702 If You See a VSP If You See a Network Provider Non-VSP Provider Copayment Exam $20 $20 Lenses & Frame $30 $30 Covered Expenses Eye Exam Paid in full Up to $45 Lenses Single Vision Paid in full* Up to $45 Lined Bifocal Paid in full* Up to $65 Lined Trifocal Paid in full* Up to $85 Lenticular Paid in full* Up to $125 Frames Paid up to $120* * Up to $47 Contacts — instead of lenses and frames Necessary*** Paid in full* Up to $250 Cosmetic Up to $120 Up to $105 Lens Options Photochromic Lenses Paid in full* Up to $5 total Tinted Lenses Paid in full* Frequency Limits Exam Every 12 months Every 12 months Lenses Every 12 months Every 12 months Frames Every 12 months Every 12 months Contacts Every 12 months Every 12 months (instead of glasses) * Lenses are paid in full, excluding cosmetic extras. Cosmetic extras include (but are not limited to) oversize lenses, coated lenses, progressive addition or blended lenses. * * A variety of frames are covered in full. If your frame exceeds the allowable cost, you will receive a 20% discount on your out-of-pocket costs for the frame. *** Medically necessary contact lenses may be prescribed by a provider for certain conditions. Your VSP provider will determine if you qualify for coverage for these types of contacts at the time of service. 702 SB-3 6/2016 247 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Weekly Disability Income Plan 801 Weekly Benefit 1-13 weeks $375 14-104 weeks $275 Maximum Benefit Period 104 weeks Occupational Disability Covered No 801 SB-4 6/2016 248 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Life and Accidental Death and Dismemberment Plan 901 Life Benefit — Employee Only $509000 AD&D Principal Sum — Employee Only $509000 901 SB-5 6/2016 249 owt,, Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Medical Plan 552 Annual Deductible Per Person $500 Per Family $19000 Hospital Inpatient Deductible Alaska Regional Hospital Mat -Su Regional Hospital Alaska Hospitals (outside Anchorage) Aetna Preferred Hospitals (outside Alaska) $300 Non -Preferred Hospitals (in Anchorage and outside Alaska) $600 Reimbursement Percentage Preferred Provider and Out -of -Area 85% Non -Preferred Provider* 65% Reimbursement Percentage After Out -of -Pocket Maximum is Reached 90% $2,600 family Out -of -Pocket maximum 100% $5,200 family Out -of -Pocket maximum * Applies to the first $50,000 of Covered Charges; thereafter reimbursed at the Preferred Provider percentage 552 SB-1 6/2016 251 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Dental Plan 601 Annual Deductible None Reimbursement Percentage Part I — Routine and Preventive 90% Part II — Basic Dental 90% Part III — Major Dental 90% Orthodontia 50% Annual Maximum Benefit (Part I, II, III) Per Person $29000 Orthodontia Benefit Dependent Children Only $2,000 lifetime maximum benefit 601 SB-2 6/2016 252 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Vision Plan 702 If You See a VSP If You See a Network Provider Non-VSP Provider Copayment Exam $20 $20 Lenses & Frame $30 $30 Covered Expenses Eye Exam Paid in full Up to $45 Lenses Single Vision Paid in full* Up to $45 Lined Bifocal Paid in full* Up to $65 Lined Trifocal Paid in full* Up to $85 Lenticular Paid in full* Up to $125 Frames Paid up to $120* * Up to $47 Contacts — instead of lenses and frames Necessary*** Paid in full* Up to $250 Cosmetic Up to $120 Up to $105 Lens Options Photochromic Lenses Paid in full* Up to $5 total Tinted Lenses Paid in full* Frequency Limits Exam Every 12 months Every 12 months Lenses Every 12 months Every 12 months Frames Every 12 months Every 12 months Contacts Every 12 months Every 12 months (instead of glasses) * Lenses are paid in full, excluding cosmetic extras. Cosmetic extras include (but are not limited to) oversize lenses, coated lenses, progressive addition or blended lenses. * * A variety of frames are covered in full. If your frame exceeds the allowable cost, you will receive a 20% discount on your out-of-pocket costs for the frame. *** Medically necessary contact lenses may be prescribed by a provider for certain conditions. Your VSP provider will determine if you qualify for coverage for these types of contacts at the time of service. 702 SB-3 6/2016 253 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Weekly Disability Income Plan 801 Weekly Benefit 1-13 weeks $375 14-104 weeks $275 Maximum Benefit Period 104 weeks Occupational Disability Covered No 801 SB-4 6/2016 254 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Life and Accidental Death and Dismemberment Plan 901 Life Benefit — Employee Only $509000 AD&D Principal Sum — Employee Only $509000 901 SB-5 6/2016 255 OW7: Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Medical Plan 551 Annual Deductible Per Person $500 Per Family $1,000 Hospital Inpatient Deductible Alaska Regional Hospital Mat -Su Regional Hospital Alaska Hospitals (outside Anchorage) Aetna Preferred Hospitals (outside Alaska) $300 Non -Preferred Hospitals (in Anchorage and outside Alaska) $600 Reimbursement Percentage Preferred Provider and Out -of -Area 85% Non -Preferred Provider* 65% Reimbursement Percentage After Out -of -Pocket Maximum is Reached 90% $2,600 family Out -of -Pocket maximum 100% $5,200 family Out -of -Pocket maximum * Applies to the first $50,000 of Covered Charges; thereafter reimbursed at the Preferred Provider percentage 551 SB-1 6/2016 257 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Dental Plan 601 Annual Deductible None Reimbursement Percentage Part I — Routine and Preventive 90% Part II — Basic Dental 90% Part III — Major Dental 90% Orthodontia 50% Annual Maximum Benefit (Part I, II, III) Per Person $29000 Orthodontia Benefit Dependent Children Only $2,000 lifetime maximum benefit 601 SB-2 6/2016 258 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Vision Plan 701 If You See a VSP If You See a Network Provider Non-VSP Provider Copayment Exam $10 $10 Lenses & Frame $20 $20 Covered Expenses Eye Exam Paid in full Up to $45 Lenses Single Vision Paid in full* Up to $45 Lined Bifocal Paid in full* Up to $65 Lined Trifocal Paid in full* Up to $85 Lenticular Paid in full* Up to $125 Frames Paid up to $120* * Up to $47 Contacts — instead of lenses and frames Necessary*** Paid in full* Up to $250 Cosmetic Up to $120 Up to $105 Lens Options Photochromic Lenses Paid in full* Up to $5 total Tinted Lenses Paid in full* Frequency Limits Exam Every 12 months Every 12 months Lenses Every 12 months Every 12 months Frames Every 12 months Every 12 months Contacts Every 12 months Every 12 months (instead of glasses) * Lenses are paid in full, excluding cosmetic extras. Cosmetic extras include (but are not limited to) oversize lenses, coated lenses, progressive addition or blended lenses. * * A variety of frames are covered in full. If your frame exceeds the allowable cost, you will receive a 20% discount on your out-of-pocket costs for the frame. *** Medically necessary contact lenses may be prescribed by a provider for certain conditions. Your VSP provider will determine if you qualify for coverage for these types of contacts at the time of service. 701 SB-3 6/2016 259 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Weekly Disability Income Plan 801 Weekly Benefit 1-13 weeks $375 14-104 weeks $275 Maximum Benefit Period 104 weeks Occupational Disability Covered No 801 SB-4 6/2016 260 Alaska Electrical Health and Welfare Fund SCHEDULE OF BENEFITS Life and Accidental Death and Dismemberment Plan 901 Life Benefit — Employee Only $509000 AD&D Principal Sum — Employee Only $509000 901 SB-5 6/2016 261 0►41M Homer Electric Association, Inc. Exhibit C (4) Non -Union Benefit Overview Wages HEA provides competitive wages in the local labor market as well as what is expected within the electric utility industry. We ensure wages remain competitive through a comprehensive re-evaluation of our plan, which recently occurred in 2022. The third -party consultant reviews the plan for both internal equity and external competitiveness by benchmarking positions with relevant local market and industry salary survey data sources. Medical (includes prescription drug coverage)/DentalNision HEA provides a medical PPO, Dental, and Vision plans for non -bargaining employees and qualified dependents to the age of 26. The Cooperative pays the full premium each month and there is no monthly employee contribution for this benefit. Life Insurance and Long-term Disability HEA also provides and pays for employee life insurance (2x annual base salary) as well as $10,000 of dependent life insurance for spouse and child(ren) up to age 26. For a premium, an employee can "buy up" the life insurance to higher dollar amounts. HEA also provides long-term disability insurance which replaces up to two-thirds of base pay, after a 13-week waiting period. Pension and 401(k) Plans There is a 12-month waiting period for employer contributions to the 401(k) and Pension plans. The pension plan is with National Rural Electrical Cooperative Association (NRECA) and is a defined benefit plan with a normal retirement date of age 65 with a 2% benefit level. The NRECA 401(k) plan is a defined contribution plan and has an employer base of 1.0% with an additional match up to 2.0% based on the employee contribution. Employer contributions are made on the employee's base salary. The employee may begin contributing to the 401(k) plan after one month of service, however, employer contributions begin after a 12-month waiting period. Holidays and Annual Leave HEA recognizes 12 holidays each year. Employees accrue six hours of annual leave each pay -period (3.6 weeks annually) for the first three years. Starting in year four, the accrual increases to ten hours of annual leave each pay -period (6 weeks annually). Annual leave begins accruing upon hire but is not available to be used until after six months of employment. An employee may accrue up to 720 hours of leave without loss, but hours beyond 720 at the end of a calendar year are forfeited. There is an option for cashing out up to 80 hours once per year if the employee maintains a balance of 80 hours following the cash out and the employee uses at least 80 hours of annual leave in the year the option is requested. After annual leave becomes available, it is a cash -value benefit at the time of separation, up to the maximum accrual of 720 hours. Exhibit C (4) CONFIDENTIAL Page 1 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�&P280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 264 Net Cash Retained by City Purchase Price from HEA Net Proceeds to the City Assets Property, plant & equipment CWIP Accumulated depreciation & amortization Net electric plant in service Cash & special deposits Accounts receivable - net sales of energy Inventories Prepayments Total current assets Deferred debits ITotal assets Liabilities & equity Total margins & equity Total LT debt Accounts payable Customer deposits Total current liabilities Customer advances for construction Deferred Inflows for Pension Net Pension Liability Total deferred credits & other liabilities Total Liabilities & Equity Net Cash Retained by SES Net assets acquired $ 5,268:680 25,250000 $ 30,518,680 $ 68,155,114 $ $ 68,155,114 $ $ 68,155,114 535,870 535,870 535,870 (48, 407, 710) - (48, 407, 710) - (48, 407, 710) $ 20,283,273 $ $ 20,283,273 $ $ 20,283,273 8,325,416 10,092,211 18,417,627 (18,417,627) - 1,532,400 - 1,532,400 (1,532,400) - 721,247 721,247 721,247 7,076 7,076 7,076 10,586,139 10,092,211 20,678,349 (19,950,026) 728,323 97,893 - 97,893 97,893 $ 30,967,305 $ 10,092,211 $ 41,059,515 $ (19,950,026) $ 21,109,489 14,772,494 24,864,704 (5,268,680) 19,596,024 14,441,390 14,441,390 (14,441,390) - 239,956 239,956 (239,956) - 188,163 188,163 188,163 428,119 428,119 (239,956) 188,163 388,534 388,534 388,534 173,925 173,925 173,925 762,843 762,843 762,843 1,325,302 1,325,302 1,325,302 $ 30,967,305 $ - $ 41,059,515 $ (19,950,026) $ 21,109,489 $ 5,268,680 CONFIDENTIAL Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�t,§280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 04�: Homer Electric Association, Inc. KEY EMPLOYEES AND DEPARTMENTS Bradley P. Janorschke, General Manager Bradley P. (Brad) Janorschke, general manager of Homer Electric Association, Inc. (HEA) and its generation and transmission entity Alaska Electric and Energy Cooperative (AEEC), is a 30-year veteran of the electric utility field who joined HEA in 2004. Prior to joining HEA, Janorschke was the CEO of Arrowhead Electric Cooperative in Lutsen, Minnesota, located on the North Shore of Lake Superior, for six years. He previously served as CFO/assistant general manager of Cooperative Light and Power Association in Two Harbors, Minnesota. Among his other utility experience is serving as a special projects coordinator for Great River Energy (formerly United Power Association), a Minnesota generation and transmission cooperative, where he primarily focused on system planning for member distribution systems. In addition, Janorschke has served on the Northwest Public Power Association (NWPPA) board of trustees since 2014 including as a member of its executive committee. Janorschke received a Bachelor of Science in engineering technology and an MBA from St. Cloud State University, St. Cloud, Minnesota. Active in his community, Janorschke serves as an EMT II/firefighter/driver operator volunteer with the local fire department. He and his wife, Sarah, have three grown children and live in Soldotna. Sheri Gower, Director of Administrative Services Sheri Gower, director of administrative services, leads a team that provides safety, human resources, warehouse, purchasing and facilities support services. Previously, she worked in HEA's human resources (HR) department as an HR generalist. Before joining HEA, Gower served as vice president, HR manager and as a member of the senior management team at Northrim Bank based in Anchorage where she also held positions in the internal audit and accounting departments. Prior to that she held increasingly responsible positions in HR in the Alaska court system. Gower earned a Bachelor of Business Administration in finance from the University of Alaska, Anchorage, and a master's in organizational leadership from the University of Wisconsin, Madison. She is a member of the Society of Human Resources Management (SHRM) and has achieved the designation of SHRM-Senior Certified Professional (SHRM-SCP). Keriann Baker, Director of Member Relations Keriann Baker, director of member relations, oversees HEA's customer service programs, public relations efforts and legislative affairs. Baker practiced law with Reeves Amodio in Anchorage and Lewis, Longman & Walker in Palm Beach County, Florida, prior to joining HEA. She serves as vice chair of the South Peninsula Hospital, Inc., board and previously has served on numerous other boards including local and state chambers as well as state and national bar associations. Baker received a Bachelor of Science from Utah Valley University, Orem, Utah, and her juris doctorate from Loyola Chicago School of Law, Chicago, Illinois. Baker and her husband, Bryan, live in Homer with their three school -aged children and two dogs. An outdoor enthusiast, she also has an advanced adventure addiction, having visited 44 U.S. states and 20 countries. Key Employees and Departments CONFIDENTIAL Page 1 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�676280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 Brad Zubeck, Director of Engineering Brad Zubeck director of engineering, is responsible for all transmission and distribution system engineering and planning, working with the operations department to maintain a safe, efficient and reliable power system. He also oversees HEA's project management and contract administration services. Zubeck began his career with HEA in 2006, stepping into his current position in 2020. Prior to joining the cooperative, he spent 13 years as a professional and general contractor in the heavy -highway and underground utility construction industries. Zubeck has served as project manager for most of the cooperative's capital projects from design development through commercial operation starting with the Healy Clean Coal Project (HCCP), and the "Independent Light" projects of the Nikiski Combined Cycle Conversion (NCC) and the Soldotna Combustion Turbine (SCT). Most recently, he oversaw the design and construction of the Battery Energy Storage System (BESS) in Soldotna, Alaska. Zubeck has a Bachelor of Science and Master of Science in civil engineering from Oregon State University, Corvallis, Oregon. David Thomas, Director of Strategic Services David Thomas, director of strategic services, facilitates the HEA board of directors' strategic goals including those around renewable energy and for environmental compliance. He also represents HEA on the Railbelt Reliability Council Implementation Committee in its efforts to establish the Electric Reliability Organization (ERO) mandated by Senate Bill 123. Previously, Thomas worked for 33 years as a staff, project, senior and principal engineer at Geraghty & Miller, Inc. (now Arcadis) and TetraTech, Inc., designing and managing the remediation of contaminated soil and groundwater at sites throughout the U.S. He also served for 12 years on the HEA board of directors including time as president of the cooperative's generation arm, Alaska Electric and Energy Cooperative (AEEC); as a director of the Alaska Power Association and as a director of the Alaska Rural Electric Cooperative Association Insurance Exchange. Active in the community, Thomas has served as the president of the Pratt Museum in Homer and of the LeeShore Women's Shelter in Kenai. He continues to volunteer time as a tutor and coach of competitive middle -school math teams through the MathCounts program. He has a bachelor's in chemical engineering from University of California at Berkeley and his Alaska engineering registration is as a civil engineer. John Jungling, Director of Cyber Security & Information Technology John Jungling director of information technologies and cyber security, is responsible for informational and operational technologies, telecommunications and cyber protection systems. He also leads HEA's alternative revenue opportunities, wholesale telecommunication business and process improvement projects. Jungling brings 40 years of IT experience and has owned several technology companies including Actelite, a pioneer in internet hosting; PurchaseNet, developer of electronic commerce applications licensed to Microsoft, Yahoo, Amazon and others; and JNet, building large data centers in the early days of the internet. Jungling & Company, a large Midwest technology firm, served Fortune 500 clients including Harley Davidson, Amoco Oil, Steelcase, Monsanto, Toshiba and others. He also was employed in various technology positions for IBM, Hunter & Associates, M&I Data systems and the Bally Corporation early in his career. He holds several technology and ecommerce patents. Jungling's studies include electrical engineering at the University of Wisconsin -Milwaukee as well as psychology and philosophy at MATC, Milwaukee. Active in the community, he works with several non -profits on their technology needs as well as carries out public education on cyber security issues as well as. He and his wife, Sue, enjoy winter activities, hunting and traveling. Key Employees and Departments CONFIDENTIAL Page 2 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996J685280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 Sarah Lambe, Director of Finance & Regulatory Affairs Sarah Lambe, director of finance and regulatory affairs, manages the regulatory, financial and information services of the cooperative so they are consistent with HEA's policies, procedures, practices, rules, regulations and philosophies as defined by the general manager and board of directors. She joined HEA in 2007 and over more than 15 years has taken on responsibilities in administration, finance, member relations and regulatory affairs. She was named to her current position in 2021. Both Lambe and her husband, Joe, grew up on the Kenai Peninsula and are raising two small boys in Homer, Alaska. In addition to their fulltime jobs at HEA and the City of Homer Public Works, respectively, they own and operate an oyster farm in Kachemak Bay. Lambe earned an MBA from the University of Alaska, Southeast, and a bachelor's in business finance from the University of Alaska, Anchorage. Steven Cannon, Director of Operations Steven Cannon, director of operations, is responsible for the distribution system construction and maintenance operations as well as fleet management functions. Previous positions with HEA include meter and apparatus superintendent of operations. Prior to joining HEA, Cannon served in a series of increasingly responsible positions culminating in his role as substation manager at Chugach Electric for five years. Before moving into management, he was a journeyman lineman for six years. Cannon earned a Bachelor of Science in applied technologies leadership from the University of Alaska, Anchorage, and journeyman lineman certification from the IBEW. Larry Jorgensen Director of Power, Fuels & Dispatch Larry Jorgensen, director of power, fuels and dispatch, manages the operation and maintenance of HEA's generation facilities. Prior to joining HEA, Jorgensen worked 28 years for the Bonanza Station for Deseret Power, a 500 MW facility, working his way up through the operations department, ultimately serving as operations superintendent. His involvement in special projects included a neural network -based control system, DCS conversion and implementation, developing and operating a high-fidelity simulator and chairing Operations Advancement. Jorgensen joined HEA as the Bradley Lake superintendent in 2011, moving to the Nikiski Combined Cycle plant as the superintendent in 2013 to complete commissioning of the plant, develop HEA's generation dispatch and load balancing area operation. He took on his current position in 2016. Jorgensen earned an Associate in Applied Science in power plant technology and Bachelor of Science in energy management through Bismarck State College, Bismarck, North Dakota. Key Employees and Departments CONFIDENTIAL Page 3 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�$P280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 Janna Davis, Safety Coordinator Janna Davis, safety coordinator, provides safety leadership and support through training and motivating employees to recognize risk, safeguard themselves, protect others, develop and promote safe work practices as well as safe home practices, strive to continuously improve and to comply with HEA, federal, state and local laws and regulations of the workplace. Her responsibilities include serving as emergency planning coordinator working with state and local government emergency planning offices, monthly departmental safety meetings, monthly/annual safety training, new employee safety orientation, incident reporting and investigation, safety compliance, PPE and safety inspections. In addition, Davis provides first responder training for local fire department and electrical safety training for local schools. Before joining HEA, Davis served as general manager for Alaska USA Federal Credit Union in Homer. She earned her Certified Loss Control Professional (CLCP) designation through the National Rural Electric Cooperative Association, is the current Alaska Power Association safety committee chair and is a trained Rural Electric Safety Achievement Program (RESAP) inspector. Becky Scudder, Purchasing & Procurement Becky Scudder, purchasing and procurement, works with the facility and warehouse manager, engineering and the generation group to procure materials and inventory for distribution, transmission and generation needs. As such, she negotiates prices and contracts, coordinates shipping and logistics and reconciles receiving, shipping and billing errors, ensuring that purchasing policies and procedures are followed per board policies and management directives. Scudder establishes and maintains the working relationships with vendors and suppliers critical to ensuring HEA gets the support it needs during the procurement process and in emergencies. She also is the point of contact for facilities -related projects and works with vendors to resolve issues. With more than 20 years of experience in supply chain management, procurement, logistics and leadership as well as 10 years in public power, Scudder works successfully with companies throughout Alaska and the Lower 48. Active in her profession and community, she serves as vice chair of the Alaska Electric Utility conference committee and on the Parks & Recreation advisory board for the city of Soldotna. Scudder relocated from Wisconsin to Fairbanks in 2003, moving to the Kenai Peninsula in 2006, where she enjoys camping biking and skiing. Tanya Lautaret, Public Relations & State Affairs Strategist Tanya Lautaret, public relations and state affairs strategist, oversees public relations, marketing and digital communications, community outreach programs and events including the scholarship and Youth Rally programs. With more than 20 years of experience in marketing, management, leadership and administrative responsibilities as well as 12 years in the public power industry, Lautaret is adept in public education, community engagement and related fields essential to supporting an informed public. She previously supervised a team of member support representatives in the Kenai office where she led the member services functions. Engaged in the community, Lautaret serves on the boards of both the Alaska State and Soldotna chambers of commerce. A born -and -raised Alaskan, she enjoys outdoor activities with her family. Key Employees and Departments CONFIDENTIAL Page 4 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996JJQ5280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 JD Drave Manager of Regulatory Affairs and Rate Design JD Draves, manager of regulatory affairs and rate design for more than a decade, has more than 20 years in business and investment -related fields. He works with consultants and staff on the development and implementation of changes to HEA's tariff and rates. He monitors the regulatory activity of other utilities and of the Regulatory Commission of Alaska for issues that may affect the cooperative, filing comments or assisting in intervening in various regulatory matters. He also conducts rate analyses and supervises special projects pertinent to rate design. Draves earned an MBA in corporate finance and investment management from Ohio State University -Columbus. Jeff Jaworkki Operations Contract/Mechanic Shop Superintendent Jeff Jaworski, operations contract/mechanic shop superintendent, has several responsibilities — management of contracted providers in the construction and maintenance of transmission and distribution facilities, maintenance of the cooperative's vehicle fleet and equipment, coordination of the ROW vegetation management programs and supervision of mechanic, foreman, journeyman and apprentice lineman and meter/apparatus technician personnel. Prior to joining HEA, Jaworski operated a consulting business for 20 years specializing in RF and renewable energy systems design, installation and maintenance throughout Alaska and in Texas. He brings multiple skill sets to the position including project management, general construction/planning, grounding systems installation, heavy equipment operation, tower and antenna installation and maintenance and crane and gin pole operation. Jaworski earned a Bachelor of Science in applied studies, business and human communications at Abilene Christian University, Abilene, Texas. He served in the United States Air Force, Air National Guard, completing training in satellite, wideband and telemetry systems. He has multiple technical certifications. Key Employees and Departments CONFIDENTIAL Page 5 Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�115280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 MAI Tim Dillon Executive Director Kenai Peninsula Economic Development District 14896 Kenai Spur Hwy, Kenai, Alaska 9961 Direct: 907-283-3335 Ext. 2 Cell: 907-242-9709 Email: tim@kpedd.org Mike Chenault 47356 Holt Lamplight Road, Kenai, Alaska 99611 Phone: 907-398-1010 Email: nikiski.redneck@yahoo.com Exhibit F Homer Electric Association, Inc. Exhibit F HEA References Wayne H. Ogle PO Box 7084, Nikiski, Alaska 99635 Phone: 907-690-1308 Email: wayne.ogle@yahoo.com Dan Chay 37306 Cetacea Lane Kenai Alaska 99611 Phone: 907-395-7653 Email: danchay@gmail.com CONFIDENTIAL Homer Electric Association, Inc. Corporate Office 3977 Lake Street / Homer, Alaska 99603-7680 / Phone: (907) 235-8551 / Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way / Kenai, Alaska 996�280 / Phone: (907) 283-5831 / Fax: (907) 283-2353 Section 4. Proposal Forms TO: City of Seward City Hall PO Box 167 410 Adams Street Seward, Alaska 99664 In submitting this Proposal, l agree: I. To hold my Proposal open for sixty (60) days. I1. To accept and comply with the provisions of the Instructions to the Request for Proposals. III. To enter into and execute a. Purchase and Sale Agreement, if awarded on the basis of this Proposal. IV. To carry out the responsibilities in the Purchase and Sale Agreement. V. That the City of Seward reserves the right to waive any informality or to reject any or all Proposals. Alaska Business License No. Date Issued: November 18, 2020 Name of the business for which issued: Homer Electric Association, Inc. The undersigned represents (check appropriate boxes) that it operates as an: ❑ Individual F1 Partnership Joint Venture 0 Corporation Registered/Incorporated in the State of Alaska The undersigned acknowledges receipt of the following addenda to the Proposal and/or specifications (give number and date of each): Addendum Q1: PILT Date 8/18/22 Initial Addendum Q2: Employees Date 9/6/22 Initial Addendum Date Initial Addendum Date Initial Addendum Date Initial 274 NAME OF FIRM OR INDIVIDUAL (Type or Print): Homer Electric Association. Inc. NAME OF PARTNERS (Type or Print):. Authorized Agent: Bradlev P. Janorschke BY (Signature in ink): TITLE (Type or Print): General Manager 275 Section 5. Proposal Schedule SEWARD ELECTRIC UTILITY EQUIPMENT AND PERSONAL PROPERTY PURCHASE In accordance with the Request for Proposals, I am submitting concurrently in a separate attached Proposal Schedule: I propose to purchase all real property, equipment, and materials that constitute the Electric Utility described in Exhibit [A], along with all associated rights, duties, and liabilities (except for outstanding bonded indebtedness which will be retired at closing) for the following lump sum price payable in full at Closing: Lump Sure: $ 25 . 25M* (see attached) Proposer (company name): Homer Electric Association, Inc. Authorized representative (print): Bradley P. Janorschke Authorized signature (print): Title (print): General Manager Date: September 7, 2022 Phone number. (907) 235-2312 CORPORATE SEAL (If Corporation) 276 AA Homer Electric Association, Inc. Section 5. Proposal Schedule Attachment *In consideration for $25.25 million, HEA will assume ownership of all real property, equipment, and materials that constitute the Electric Utility described in Exhibit [A] and further clarified in Sections 1.1(i) and 2.1.2 of HEA's Proposal. HEA proposes to acquire the utility's plant assets but not the cash and other liquid financial assets of SES which amount to approximately $5.27 million. This would provide total cash proceeds to the City at or shortly following the Transaction in the amount of $30.52 million. Homer Electric Association, Inc. Corporate Office 3977 Lake Street /Homer, Alaska 99603-7680 /Phone: (907) 235-8551 /Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way /Kenai, Alaska 99611-5280 /Phone: (907) 283-5831 /Fax: (907) 2283-2353 ►AFrl Homer Electric Association, Inc. The Honorable Christy Terry Mayor of the City of Seward P.O. Box 167 410 Adams Street Seward, Alaska 99664 Ref: Proposal Amendment One by Homer Electric Association, Inc. to Acquire Utility Assets Operated by the Seward Electric Utility Dear Mayor and Council Members: Homer Electric Association, Inc. ("HEA") appreciates the opportunity to continue negotiations with the City of Seward ("City") regarding the sale of the Seward Electric Utility ("SES"). On behalf of the Board of Directors ("Board") of HEA, we express our continued interest in working with the City to create a proposal response that addresses the City's business term expectations for the sale of SES. Please see enclosed Amendment One to HEA's proposal submitted September 9, 2022 (the "Proposal"). It is our intent to submit competitive Proposal terms that demonstrates HEA's commitment to the City and its residents. HEA submits these additional terms to create a meaningful transition plan for the City that guards against jarring City budget implications and rate increases for City residents. We welcome the opportunity to continue this dialogue with the City and are willing to provide additional detail and negotiate directly at a workshop should that approach be desirable. We recognize that HEA will be a stronger utility combined with SES. Moreover, we believe that SES would be stronger if joined to the HEA electric system. Together, we can create a new member -owned electric cooperative (Kenai Peninsula Energy Cooperative, Inc.) that powers the future of the Kenai Peninsula. It is because of our commitment to the City, and its residents, that we propose an opportunity for a perpetual City economic interest in all electric expansion at the Seward Harbor for cruise ships. Likewise, we have proposed competitive acquisition premium payments allowing the City to transition from any general revenue shortfalls created by selling SES slowly over a decade. Finally, we recognize that the City might consider Chugach's current lower rates as a defining factor in the SES asset sale. It is our hope that the City will consider two significant analyses when comparing the two utilities that submitted proposals to purchase SES. First, the City should review the rate impact that HEA's decades long strategic generation choices will have on future rates. Second, the City should compare the respective utilities strategic financial choices over the past decade. We recommend considering how each utility's past choices have impacted the current financial health of each utility. Importantly, we suggest a consideration of how this will impact rates in the near future. A comparison of this nature will inform SES of the long-term ramifications of an SES sale to each of these utilities. HEA's equity ratio at 46% exceeds the national average for electric cooperatives and reflects stable Homer Electric Association, Inc. Corporate Office 3977 Lake Street /Homer, Alaska 99603-7680 /Phone: (907) 235-8551 /Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way /Kenai, Alaska 99611-5280 /Phone: (907) 283-5831 /Fax: (907) 2283-2353 PAGE 1 278 finances, excellent liquidity and uninterrupted access to new debt for investment in its utility system. HEA's margins have been stable due to prudent financial management and reflect an industry leading debt service coverage position. Accordingly, we urge you to compare the debt coverage ratio and equity position of both utilities. HEA's current financial position reflects the achievement of its financial goals after successfully investing in its generation assets to independently meet its own generation requirements. HEA has plans to further diversify its generation mix to include renewables to reduce the upward pressure on rates created by the limited fuel gas providers within the State. HEA believe this strategy will ultimately result in long term rate stability for its members. In addition, HEA has begun implementing cyber security enhancements in advance of mandates to smooth the transition to new operating standards between generations of ratepayers. The cost of these investments can be offset if operational efficiencies are also created which is how HEA has managed to further investment in the areas while keeping base rates fixed since April 1, 2020. The City should be aware that Chugach is currently awaiting a final order from the Regulatory Commission of Alaska ("Commission") addressing Chugach's projected margin shortfalls for 2022 and 2023.1 Chugach has proposed that the Commission approve deferral of certain debt obligations and regulatory assets to stave off a general rate increase prior to its planned general rate case filing in 2023.E In addition to Chugach's existing margin performance challenges, the City should consider the extent to which Chugach's rates will need to reflect renewable generation, reliability and cyber security standards that will soon be mandated. We strongly encourage the City review publicly available filings with the Commission related to the fiscal health of each utility submitting a responsive proposal. HEA does not view SES as additional members to help shoulder the burden of prior deferrals, mergers, and future mandates. HEA instead wishes to share the benefits of its utility system, its prior investments, and its future goals with SES. Our modeling demonstrates that our combined utilities will result in additional efficiencies. Frankly, our combined utilities will create long-term rate stability for both systems due to economies of scale. This once in a lifetime opportunity for our two utilities to merge into a single regional utility strategically benefitting the Kenai Peninsula will lead to significant positive economic opportunities, result in rate stability and maintain local jobs on the Kenai Peninsula for benefit of future generations. We hope the Council will consider the long-term strategic benefits of this partnership. For our part, HEA stands ready to work in partnership with the City to create the shared Kenai Peninsula Energy Cooperative of the future. Sincerely, Brad Janorschke General Manager Homer Electric Association, Inc. ' U-21-059(14), July 29, 2022 (extending the timeline for a final order to October 27, 2022). 2 U-21-059, February 28, 2022 Compliance Filing at 4. Homer Electric Association, Inc. Corporate Office 3977 Lake Street /Homer, Alaska 99603-7680 /Phone: (907) 235-8551 /Fax: (907) 235-3313 Central Peninsula Service Center 280 Airport Way /Kenai, Alaska 99611-5280 /Phone: (907) 283-5831 /Fax: (907) 2283-2353 PAGE 2 279 Homer Electric Association, Inc. PROPOSAL AMENDMENT 1 OF HOMER ELECTRIC ASSOCIATION, INC. FOR CITY OF SEWARD ELECTRIC UTILITY PURCHASE SUBMITTED SEPTEMBER 19, 2022 I. PROPOSAL AMENDMENT ONE: ADDITIONAL BUSINESS TERMS Homer Electric Association, Inc. ("HEA") submits the following additional draft terms to supplement the terms previously submitted in HEA's proposal tendered on September 9, 2022 ("Proposal"), in response to the City of Seward's ("City") Request for Proposal ("RFP") for the purchase of the Seward Electric Utility ("SES"). In addition to the business terms submitted in HEA's Proposal some of the provisions proposed by HEA must be approved by the Regulatory Commission of Alaska. II. LEASE OF CITY PROPERTY FOR UTILITY PURPOSES HEA proposes the following leases of City property: Location Lease Payments Lease Term Seward Harbor.' 8% of annual gross revenues paid by cruise 30-year term ships for electric service based on ground lease with right to for cruise ship dock electric facilities. renew by both parties. A portion of the Office Based on City's existing lease provision code. 10-year term Building located at with two 5-year 238 Fifth Avenue renewal options. Seward, Alaska 99664 ' The leased property would be located in Seward Harbor and the exact location would be determined after identification through the study proposed by HEA in its Proposal to expand electric service to cruise ships docking at the Seward Harbor. Lease would accommodate space for electric utility infrastructure necessary to provide utility service to existing and potentially expanded cruise ship facilities in the harbor. 280 III. DEFERRED ACQUISITION PAYMENTS In addition to HEA's offer for the SES utility assets contained in its Proposal, HEA agrees to make payments of $1.1 Million Dollars annually for a ten-year period. This deferred acquisition payment mechanism is intended to assist the City with a healthy transition period as it adjusts its general budget to account for historic utility revenue budget transfers to the City's general fund. We also believe that transferring costs associated with operating SES, including labor, fleet, plus deferred maintenance of existing utility infrastructure, will have a significant positive impact on the City's finances. IV. RATE FREEZE HEA supports a rate integration plan that freezes SES rates on the closing date of the Transaction through the conclusion of the Cost -of -Service Study and Rate Case. Furthermore, HEA is willing to collaborate with the City to explore whether Seward customers are best served by either of the two following approaches to base rates: 1. Phasing in any RCA ordered base rate increase evenly spread over a five (5) year time period commencing at the date of the order; or 2. Exploring rate design options in its upcoming Cost of Service Study that recognize the noncontiguous nature of the newly merged utility system's service area, which may potentially allow for separate base rates for SES and HEA legacy ratepayers. 2 This rate freeze is dependent on freezing the PILT at current calculated rates. Thus, SES will not increase the amount of its current PIL,T payment to the City's general fund beyond the current calculated percentage rate of 8% of operating revenue as described in the document entitled "Seward Utility Sale Proposer Questions w/ Answers." ON Action Memorandum 2022-011 An Action Memorandum of the City Council of the City of Seward, Alaska, Adopting the Port and Commerce Advisory Board (PACAB) Priorities for the Calendar Year 2023 Documents: • Agenda Statement • Action Memorandum 2022-011 • Attachments: o Seward City Code Chapter 2.30, Article 3 — Port and Commerce Advisory Board pay: City of Seward Action Memorandum 2022-011 Meeting Date: November 14, 2022 To: City Council From: Janette Bower, City Manager Agenda Item: Action Memorandum 2022-011: Adopting the Port and Commerce Advisory Board (PACAB) Priorities for the Calendar Year 2023 Background and justification: Annually, the Port and Commerce Advisory Board establishes their priorities. During PACAB's October 5, regular meeting, the Board reviewed and updated the 2023 Priorities List. The priorities and goals listed in this legislation reflect the discussion during that meeting. PACAB passed their finalized proposed priorities resolution at their November 2, regular meeting. Each year, PACAB uses this legislation to fulfill their code requirements discussed in 2.30.325- Powers and Duties. Once City Council provides the board with the complete priority list, PACAB will develop their 2023 schedule and calendar based on the finalized priority list. 1. Explore and promote energy alternatives and community sustainability practices 2. Promote quality of life for Seward residents 3. Monitor and provide feedback on utility infrastructure and its ability to support economic growth 4. Conduct an annual review of vessel property tax and provide recommendations to Council. 5. Update Seward Boat Harbor Plan 6. Review Harbor Tariff 7. Send a member to Alaska Municipal League Conference 8. Monitor and provide input for the SMIC Development Plan 9. Monitor Fisheries issues impacting our community 10. Advise and support the Seward Chamber of Commerce in their city marketing role 11. Review the City of Seward legislative priorities for input regarding port and commerce issues Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.5 Port and Harbor Development 3.1 Economic Development Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ x Has no fiscal impact 283 Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): General SMIC Electric Wastewater Boat Harbor Parking F1 Wat F1 Healthcare Motor Pool Other Unassigned Fund Balance*: $ Available Unrestricted Cash Balance*: $ Finance Signature: Review RV Yes Attorney Signature: Not applicable Comments: Administration Recommendation e✓ Adopt Action Memorandum* Other: *unaudited numbers * Administration recommends items 1 & 2 be removed from the priority list. PACAB takes a summer hiatus for the months of June, July, and August. This leaves 9 regular meetings on their calendar so the priority list should be as concise as possible and focused on the core aspects of their powers and duties as described in 2.30.325. Item #1 is a very expansive topic and item #2 is overly broad. Disposition (Completed by the City Clerk's Office) 284 Article 3. Port and Commerce Advisory Board Article 3. Port and Commerce Advisory Board 2.30.310 Established. A. The port and commerce advisory board is hereby created, consisting of seven residents of the City of Seward or surrounding areas, and who shall be appointed by the council. If there is more than one applicant for the position, the council shall appoint by ballot voting. B. Applicants must receive at least four votes in order to be appointed. No officer or employee of the city may be appointed a member of the board. C. A chairman of the board shall be selected annually by the appointed members. D. The city manager will appoint a city employee to serve as an ex officio member of the board who shall have the privilege of the floor but not the right to vote. (Ord. 512, 1982; Ord. 553, § 1, 2, 1986; Ord. 93-23; Ord. 2000-13, § 2, 2000; Ord. No. 2006-02, § 1, 3-28-2006) 2.30.315 Terms of office; filling vacancies. A. Members of the port and commerce advisory board shall be appointed for a term of three years; provided, that the terms of initial appointments shall be staggered so that as nearly as possible a pro rata number of members shall be appointed for each year. B. The council may appoint any qualified person to fill a vacancy of any member of the board provided that the appointment shall be for the unexpired term of the vacancy. C. Following a member's absence from three consecutive regular meetings of the board, the remaining board members shall decide whether the board member should be retained or whether to request council appointment of a new member. D. Members shall not be paid for services on the board or participation in board activities without prior approval of the city council. (Ord. 512, 1982; Ord. 93-23; Ord. 2000-13, § 2, 2000) 2.30.320 Meetings and quorum. A. The board will meet at a time and place to be designated by the board. B. Four members of the board shall constitute a quorum for the transaction of business except that, in the absence of a quorum, any number less than a quorum may adjourn the meeting to a later date. The affirmative votes of at least a majority of those board members present shall be required for any action. C. All meetings and records of the board shall be open to the public. The board shall keep minutes of proceedings showing the vote of each member upon each question and shall keep records of any actions, all of which shall be immediately filed in the office of the city clerk and shall be a public record. (Ord. 512, 1982; Ord. 553, § 4, 1986; Ord. 93-23; Ord. No. 2006-02, § 2, 3-28-2006) Seward, Alaska, Code of Ordinances (Supp. No. 25-1, Update 2) Created: 2022-10-21 15:06:57 [EST] Page 1 of 2 285 2.30.325 Powers and duties. A. It shall be the responsibility of the port and commerce advisory board to: 1. Report annually to the city council at the first council meeting of the new fiscal year and at any other time as may be requested by the city council. The annual report shall include, at the minimum, a report on the prior year's activities, a list of any anticipated requests for appropriations for the year's planned activities and a recommendation regarding the continuation of the board; 2. Make recommendations to the city council concerning the design and coordination of projects to promote and develop transportation, trade, energy and commerce throughout Seward; 3. Provide input to the city council on policy and procedural matters involving the establishment and continuance of commercial activity, improving the quality of life and protecting the public's best interest; 4. Advise the city council on matters involving the establishment of support services towards the objectives outlined in subsections 2.30.325(a)(2) and 2.30.325(a)(3); 5. Perform other duties as requested by the city council. B. The board shall have no authority to expend or commit city funds without first obtaining approval by and any necessary appropriations from the city council. (Ord. 512, 1982; Ord. 553, § 5, 6, 1986; Ord. 93-23; Ord. 2008-008, § 1, 2008) 2.30.330 Continuation. The city council, at the first meeting of each fiscal year by an affirmative vote, may continue the existence of the board. In the absence of an affirmative vote by the council, the board will cease to exist within 30 days. (Ord. 512, 1982; Ord. 93-23) (Supp. No. 25-1, Update 2) Created: 2022-10-21 15:06:57 [EST] Page 2 of 2 286 Agenda Statement Meeting Date: November 14, 2022 From: Brenda Ballou, City Clerk Agenda Item: Vote to Fill the City Council Vacancy by Appointment BACKGROUND & JUSTIFICATION On October 24, 2022, council approved an application form and procedures for filling the vacancy on council. The city clerk advertised the vacancy for two weeks, starting October 25th. The deadline for submitting applications was November 81h at 12:00 p.m. CANDIDATE APPLICATIONS There was a total of five applications received. However, one application was incomplete and was withdrawn by the applicant, and one application was submitted after the 12:00 p.m. deadline, leaving three qualified candidates. Applications for the following candidates were received complete and in a timely manner: APPLICANT Application Financial Disclosure Registered Voter Kim Kowalski -Rogers l l/l/2022 l l/l/2022 Yes Suzanne Towsley 11/8/2022 at 10:05 a.m. 11/8/2022 at 10:05 a.m. Yes Robert Barnwell 11/8/2022 at 10:37 a.m. 11/8/2022 at 10:37 a.m. Yes ELIGIBILITY FOR OFFICE Charter 2.2 - Eligibility for elective office. (a) To be eligible to file for election to a city office a person shall be an elector of the city and shall have resided in the city or territory annexed to the city continuously for a period of not less than one year immediately preceding the date of filing. (b) A person appointed to fill a vacancy in an elective office must have such qualifications at the time of his appointment. (c) The council shall be the judge of the election and qualifications of its members. 287 PROCEDURE The city clerk will furnish council with ballots. Council members will cast their vote for ONE applicant and sign the ballot. The city clerk will collect the ballots and read the votes aloud, stating the outcome of each vote. Council will motion and second to appoint the candidate receiving the highest number of votes. A candidate must receive at least four (4) affirmative votes from council to be appointed. RECOMMENDATION Vote and appoint one citizen to fill the City Council Member vacancy with a term to expire October, 2023. 288 CITY OF SEWARD, ALASKA APPLICATION FOR APPOINTMENT TO CITY COUNCIL This form must be completed in its entirety and filed with the City Clerk to be validated. Corrections must be initialed. G NERAL INFO"A ON I, if am a qualified voter, have been a resident and have resided in the City of Seward continuously for a period of not less than one year immediately preceding the date of this application, and I now declare myself a candidate for the appointment to City Council. My current physical residence address is: 52510 cam. My current mailing address is: PO Box 13L�Q Email: C�-� ���� � � . cz tf A Cell/Contact Phone: N 07) A ld 2 - Seward, Alaska 99664 Seward, AK 99664 CERTIFICATION RECEIVED NOV a 1 2022 OFFICE OF THE CITY CLERK I, the undersigned, solemnly swear and certify that the information I have furnished in this Application for Appointment is true and complete, and that I meet the specific residency and citizenship requirements of this office. Subscribed and sworn to before me this S� day of O VP Wt b` �'2022. y NOTARY PUBLIC My commission expires: Jc,h %r 2,U'z- G To assist staff in verifying candidate/voter identification, please provide one or both of the following: Last 4 SSN -31—o33 voter No My City of Seward Public Official Financial Disclosure Statement is enclosed with this application. L—(i,,qJtJa1s)1 289 CITY OF SEWARD, ALASKA APPLICATION FOR APPOINTMENT TO CITY COUNCIL This form must be completed in its entirety and filed with the City Clerk to be validated. RECEIVED Corrections must be initialed. Venv o a zozz GENERAL INFORMATION OFFICE OF THE am a qualified voter, have been a resident and31lY3bft*W in the City of Seward continuously for a period of not less than one year immediately preceding the date of this application, and now declare myself a candidate for the appointment to City Council. My current physical residence address is: My current mailing address is: PO Box 13 3 Email: Cell/Contact Phone: Seward, Alaska 99664 Seward, AK 99664 CERTIFICATION I, the undersigned, solemnly swear and certify that the information I have furnished in this Application for Appointment is true and complete, and that I meet the specific residency and citize ship requirements of this office. Subscrib and sworn a this day of 022. TARY PUBLIC My comma slop xpires: J. App I nt's Signature _ 4 h• „` _ To assist staff in verifying candidatelvoter identification, please provide one or both of the following: '(N�Ota SC= Last 4 SSN Z— Voter No '��%'' {�~ � ): • ail 'yn.3..�'a�``` My City of Seward Public Official Financial Disclosure Statement is enclosed with this application. 0 " 04.IH CITY OF SEWARD, ALASKA NOV 0 8 2022 -� APPLICATION FOR APPOINTMENT TO CITY COUNCUEFICE OF THE CITY CLERK This form must be completed in its entirety and filed with the City Clerk to be validated. Corrections must be initialed. GENERAL INFORMATION t I, Ndbect �`� -`�`flt%`1e y� am a qualified voter, have been a resident and have resided in the City of Seward continuously for a period of not less than one year immediately preceding the date of this application, and I now declare myself a candidate for the appointment to City Council. My current physical residence address is: Z 20 B U1e,-�- % C k A Pri\4e Seward, Alaska 99664 My current mailing address is: PO Box 7-150 i1 Seward, AK 99664 Email: C'rl"1r6�JG1�i�.Clal�. Corn Cell/Contact Phone: 907 - 5a } - Q 1 T 3 CERTIFICATION 1, the undersigned, solemnly swear and certify that the information I have furnished in this Application for Appointment is true and complete, and that I meet the specific residency and citizenship requirements of this office. Subscribed and sworn to before me this I-grr, day of �1,�cyF ivt -�— , 2022. NOTARY PUBLIC 16 \ vnssinr My commission expires: NOTARY PUBLIC - , 11111\\rrr�\ (Notary Seal) Applicant's Signat e To assist staff in verifying candidate/voter identification, please provide one or both of the following: Last 4 SSN `A 'I � �+voter �A My City of Seward Public Official Financial Disclosure Statement is enclosed with this application. (inffiaMy 04*S October 19, 2022 Nov 0 8 2022 OFFICE OF THE Dear Seward City Council, CITY CLERK My name is Bob Barnwell. My address is 220 Bluefield Drive, Seward, and I am registered to vote in Seward. I've owned this house since 1999. This is a letter of interest to fill the vacant council seat that Mayor McClure has left. My qualifications for this position are varied. I have a Bachelor of English Degree, and a Masters in Teaching, and am a retired Seward school teacher. I grew up in Anchorage, but have been in and out of this town since the mid 1960's, including working two seasons at Icicle Seafoods in the late 70's and owning Alaska Fjord Charters for seven years. My wife and I raised our three daughters in Seward. I have served on numerous board positions, including several in Seward Nordic Ski Club, the Alaska State Advisory Board, and Cook Inlet Aquaculture Association, representing the interests of Seward. I have no particular mission in joining this council, other than helping to create a healthy future for a town I've dedicated years to. I do take a strong interest in education, thoughtful planning, including housing and recreation, and affordable energy solutions. I have a history of working well with a variety of people, and believe that collaboration and communication are the essence of good governorship. If appointed I do realize my relative lack of council experience may be of concern, but think my skill set would complement the council's procedures and mission. In addition, I'm retired, with relatively few obligations, giving me the time to commit to the task. I do apologize for not being able to attend this council meeting. If you have any questions please feel free to contact me. Sincerely, (� " 5,t�� Bob Barnwell 907-599-0493 RbarnweII55@gmaii.com ►4% Ordinance 2022-016 An Ordinance of the Seward City Council, Amending Seward City Code; 15.10.140(b)(49) Definitions, Lodging; 15.10.226(b) Land Uses Allowed, Modifying and Including Additional Regulations Relating to Lodging, Short -Term Rentals; and 15.10.226 Land Uses Allowed Table Documents: • Agenda Statement • Resolution 2022-016 • Attachments: o Planning and Zoning Commission Minutes WX City Council Agenda Statement Meeting Date: November 14, 2022 To: City Council Through: Janette Bower, City Manager From: Planning and Zoning Commission Agenda Item: Ordinance 2022-016: Amending Seward City Code; 15.10.140(b)(49) Definitions, Lodging; 15.10.226(b) Land Uses Allowed, Modifying and Including Additional Regulations Relating to Lodging, Short -Term Rentals; and 15.10.226 Land Uses Allowed Table Background and justification: On March 29, 2022, the City Council approved the Planning and Zoning Commissions priorities, two of which were to "contribute and collaborate as needed to help be a part of the solution for the housing issues that Seward is facing and to "make recommended updates to Title 15." It is a recognized issue in the City of Seward, that the schools, hospital, prison, and other local businesses cannot hire sufficient employees due to the lack of housing available. Addressing the regulations around Short-term rentals is one of many solutions to the housing crisis that the City of Seward needs to take in order to protect the limited homes and lots available for individuals seeking to live year-round within Seward. Residents of Seward have also expressed the need to preserve the typical neighborhood atmosphere where people know their neighbors and take pride and ownership in the safety and cleanliness of the community. The Planning and Zoning Commission held four (4) public work sessions on 04/19/2022, 06/21/2022, 07/19/2022, 09/27/2022 to discuss regulation strategies regarding Short-term rentals On October 11, 2022 the Planning and Zoning Commission approved Resolution 2022-023, recommending the City Council amend Seward City Code 15.10.140(b)(49) Definitions, Lodging; 15.10.226(b) Land Uses Allowed, Modifying and Including Additional Regulations Relating to Lodging, Short -Term Rentals; and 15.10.226 Land Uses Allowed Table. In Summary, the effect of this legislation is as follows: - Properties that have been historically operating as a short-term rental can continue to do so and can be sold as a short-term rental property. These properties will be considered a non -conforming use in code and if the property ceases to be a short-term rental, they will no longer be able to continue to do so. - No [new] whole house rentals in residential zones are allowed. - Whole house rentals are allowed in commercial zones if they are in a multi -family structure. - Owner occupied (traditional BnBs) are allowed in residentials zones up to 50% of bedrooms, with a maximum of three. WE - Single family structures that are currently not operating as a short-term rental may not be converted to a short-term rental in commercial zones. - In a commercial district, if a multifamily property is not operating as a short-term rental and it is purchased, the purchaser must wait 4 years to apply for a short-term rental permit. - If someone owns an undeveloped property with plans for a short-term rental (that would be non -conforming), they must do so in 2 years. - Short Term Rental Insurance will now be required by code (we currently ask for it but it's not required by code) - There will be a fee associated with each individual short-term rental unit (on the fee schedule) to help with processing and compliance costs. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Vol 1, Chapter 2.2.1 — Small Town Fee and Atmosphere Plan: "People are friendly and you know your neighbors." "A high level of citizens commitment to the community." Vol 1, Chapter 2.2.2 — Natural Environment and Open Space 11... We value quiet in our residential neighborhoods..." Vol 1, Chapter 2.2.8 — City Government "Continue to review and update the City code." Vol 3.2.1.1 — Expand the opportunity for affordable, diverse, year-round housing through appropriate land use regulations Vol 3.9.2.3 — Preserve the quiet of residential neighborhoods Strategic Plan: "Maintain Seward's small-town character throughout the growth process." (Page 13). Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: Creates expenditure in amount of: Creates a savings in the amount of: ✓ Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted ✓ Not applicable Finance Signature: .5,' PWR Review eYes Attorney Signature: Not applicable Comments: e✓ Adopt Ordinance Other: Administration Recommendation 04b: Sponsored by: Planning and Zoning Commission Introduction Date: November 14, 2022 Public Hearing Date: November 28, 2022 Enactment Date: November 28, 2022 CITY OF SEWARD, ALASKA ORDINANCE 2022-016 An Ordinance of the Seward City Council, Amending Seward City Code; 15.10.140(b)(49) Definitions, Lodging; 15.10.226(b) Land Uses Allowed, Modifying and Including Additional Regulations Relating to Lodging, Short - Term Rentals; and 15.10.226 Land Uses Allowed Table WHEREAS, on March 29, 2022, the City Council approved the Planning and Zoning Commission's priorities two of which included, "contribute and collaborate as needed to help be a part of the solution for the housing issues that Seward is facing," and "Make recommended updates to Title 15"; and WHEREAS, it is in the best interest of the community to periodically review and update the City zoning code to reflect community changes and needs; and WHEREAS, it is recognized that housing for year-round residents within Seward is limited; and WHEREAS, addressing the regulations around Short-term rentals is one of many solutions the City of Seward needs to take in order to protect the limited homes and lots available for year- round residents within Seward; and WHEREAS, community members have expressed their desire to preserve and protect the quality and safety of neighborhoods; and WHEREAS, the proposed regulations will allow current Short-term rental businesses to continue to operate; and WHEREAS, the Planning and Zoning Commissions held four work sessions on the short- term rental topic with significant community input; and WHEREAS, on October 11, 2022, the P&Z Commission unanimously approved these Title 15 proposed changes. NOW, THEREFORE, THE CITY OF SEWARD ORDAINS that: Section 1. Seward City Code Title 15.10.140 is hereby amended to read as follows (new language is in bolded italics and underlined, and deleted language is stricken): WIN CITY OF SEWARD, ALASKA ORDINANCE 2022-016 Chapter 5.10 Seward Zoning Code 15.10.140 Definitions. A. (a) General interpretation. 1. Words used in the present tense include the future tense. 2. The singular number includes the plural. 3. The word "person" includes a corporation as well as an individual. 4. The word "lot" includes the word "plot" or "parcel." 5. The term "shall" is always mandatory. 6. The word "used" or "occupied" as applied to any land or building shall be construed to include the words "intended," "arranged," or "designed to be used or occupied." B. (b) Specific definitions. (Parenthetical references are for cross-reference only.) In this chapter, unless otherwise provided or the context otherwise requires: 1. Accessory building. A detached structure that: a. Is clearly incidental to and customarily found in connection with a principal building or use; b. Is subordinate to and serves a principal building or use; c. Is subordinate in area, extent or purpose to the principal building or use served; d. Contributes to the comfort, convenience or necessity of occupants, business or industry in the principal building or use served; and e. Is located on the same or adjacent lot under the same ownership as the principal building or use served. An accessory building shall be considered to be a part of the main building when joined by a common wall or connected by a breezeway to the main building. Accessory building means any structure regardless of type of foundation or base support, including skid -mounted or other moveable structures. (Accessory or mother-in-law apartment. See Dwelling, Efficiency apartment) 2. Agriculture. Commercial farming, dairying, pasturage, horticulture, floriculture, viticulture, or animal and poultry husbandry including buildings used to shelter farm implements, hay, grain, poultry, livestock or other farm produce in which there is no human habitation and which is not used by the public. 3. Airport. A place where aircraft can land and take off, usually equipped with hangars, facilities for refueling and repair, various accommodations for passengers, and business lease sites. 4. Alley.A dedicated public way which affords a secondary means of access to abutting property and not intended for general traffic circulation. 5. Alteration. Any change, addition or modification in the construction, location or use of a building. 6. Amusement and recreation facility. Establishment engaged primarily in providing entertainment for a fee including such activities as bowling alleys, billiards and pool, dance hall, pinball machines, video games or other similar player -operated amusement devices. 298 CITY OF SEWARD, ALASKA ORDINANCE 2022-016 7. Antenna. A device used to transmit and/or receive radio or electromagnetic waves between terrestrially and/or orbital based structures. Includes satellite dish. (Apartment. See Dwelling) 8. Auto repair station. A place where a qualified automotive mechanic provides services such as general motor vehicle and engine repair, reconditioning or rebuilding, and collision service including body, frame and fender straightening and repair, painting and undercoating of motor vehicles. 9. Auto service station. A place used primarily for the retail dispensing of motor fuels and/or installation of tires, batteries and other accessories and services which do not customarily or usually require the services of a qualified automotive mechanic. Also known as a gas station. (Bed and breakfast. See Lodging) (Boarding or roomi",,_See Lodging) 10. Brewpub. An establishment that is primarily an eating place which includes the brewing of beer as an accessory use. 11. Building. Any structure built for the support, shelter or enclosure of persons, animals, chattels or property of any kind. 12. Building area. rea. A total area taken on a horizontal plane at the main grade level of the principal building and all accessory buildings, exclusive of external steps. 13. Building, existing.A building erected prior to the adoption of this Code or one for which a legal building permit has been issued. 14. Building height. The vertical distance above a reference datum measured to the highest point of the coping of a flat roof or to the deck line of a mansard roof or to the average height of the highest gable of a pitched or hipped roof. The reference datum, which must be between the building and the property line or in a dedicated public right-of-way that is accessible to fire suppression personnel and rescue equipment, shall be selected by either of the following, whichever yields the greater height of the building: a. The elevation of the highest adjoining sidewalk or ground surface within a five-foot horizontal distance of the exterior wall of the building when such a sidewalk or ground surface is not more than ten feet above the lowest grade; or b. An elevation ten feet higher than the lowest grade when the sidewalk or ground surface described in subsection a., above is more than ten feet above the lowest grade. The height of a stepped or terraced building is the maximum height of any segment of the building. 15. Building, principal or main. A building in which is conducted the principal or main use of the lot on which the building is situated. Attached garages, porches and carports shall be considered to be part of the principal building. (Bunkhouse. See Housing) 16. Business, general sales. -A premises where the sale of goods or commodities to the consumer takes place; i.e., groceries; bakeries; hobby, knot or yarn shops, book, gift or apparel shops; fishing equipment, hardware or vehicle sales; restaurants; vehicle rentals or variety stores. 299 CITY OF SEWARD, ALASKA ORDINANCE 2022-016 17. Business, personal service. The conduct of business where personal assistance is offered for compensation; i.e., dressmaking, tailoring, barbers and beauty, etc. 18. Campground. A plot of ground upon which two or more campsites are located, established or maintained for occupancy by camping units as temporary living quarters for recreational or vacation purposes. a. Campground, municipal. Campgrounds owned or operated by the City and designated as public campgrounds by resolution of the City Council. b. Campground, private camper parks. A privately owned and operated campground on any parcel, or adjacent parcels of land in the same ownership, which is used by two or more camping units. c. Campground, employee. An area operated by an established business with high seasonal employment of transient workers as a housing alternative and not construed to be a construction camp. 19. Camper park. A privately owned and operated campground on any parcel, or adjacent parcels of land in the same ownership, which is used by two or more camping units. 20. Camping unit. A tent or recreational vehicle. 21. Child care, licensed home. In accordance with Alaska Statutes, a private residence where adult care, protection and supervision is provided for children other than the occupant's. Also called day care, nursery school, preschool and kindergarten. 22. Church. A building, structure or group of buildings or structures primarily intended for conducting organized religious services and associated accessory uses. The definition of a church shall be dependent upon U.S. Internal Revenue Service and the Kenai Peninsula Borough Assessor's Office interpretation. A standard single-family residence not remodeled for public meetings shall not be considered a church. 23. Clinic. A building or portion thereof containing offices and facilities for providing out- patient medical, dental or psychiatric services, and which may include a dispensary to handle medication and other merchandise prescribed by physicians in connection with their medical practice. 24. Club, private. A building and related facilities owned or operated by a corporation, association or group of individuals established for the fraternal, social, educational, recreational or cultural enrichment of its members, but not primarily for profit, and whose members meet certain prescribed qualifications for membership and pay dues. Includes lodges. 25. Cluster subdivision. A development design technique that permits a reduction in lot area provided there is no increase in the number of lots permitted under a conventional subdivision or increase in overall density of development by concentrating buildings in specific areas on a site to allow the remaining land to be used for recreation, common open space and preservation of environmentally sensitive areas. (Commercial building apartment. See Dwelling) 26. Commercial communications tower. A structure intended to support equipment used to transmit and/or receive communication signals including monopoles, guyed and lattice steel structures. This definition does not include a tower that supports only one or more amateur radio antennas. 300 CITY OF SEWARD, ALASKA ORDINANCE 2022-016 27. Commercial use. An occupation, employment or enterprise that is carried on for profit by the owner, lessee or licensee. (Condominium. See Dwelling) (Convalescent or nursing home. See Housing) 28. Convenience store. A small-scale neighborhood grocery establishment offering for sale prepackaged food products, household items and other goods commonly associated with the same and having a gross floor area of less than 5,000 square feet. (Dormitory. See Housing) 29. Drinking establishment. Any premises wherein the principal purpose is the retail sale of alcoholic beverages for consumption on the premises and minors are excluded therefrom by law. Includes bar, cocktail lounge, tavern and nightclub. 30. Drive-in facility.__Any portion of a building or structure which by design permits customers to receive services, obtain goods or be entertained while remaining in their motor vehicles. 31. Dwelling. A building designed or used exclusively as living quarters for one or more families. a. Apartment. Any portion of a building which is designed, built, rented, leased, let or hired out to be occupied or which is occupied as the home or residence of an individual for daily living and doing his own cooking independently of any other individual or family in the same building. b. Apartment, commercial building. An apartment located within a building designed to accommodate a mix of residential and commercial uses. c. Apartment, efficiency (also called accessoryUartment ). A single separate dwelling unit consisting of not more than one habitable room which includes combined kitchen, dining and sleeping areas with accompanying sanitary facilities, and which is located within or shares a common wall with a single-family dwelling. d. Apartment, owner or manager. An apartment within a building that is designed to be used exclusively as the living quarters for the owner or manager family of that building or a commercial business located in the building. e. Apartment, studio. A small apartment less than 500 square feet with a fully functional kitchen and bathroom. f. Condominium. A form of housing ownership by which a person may purchase and own one dwelling unit in a multiunit building or development. Each owner owns a common interest in such things as the underlying land, common walls, stairwells, elevators, lobbies, laundry rooms and recreation rooms. g. Guest house. An accessory building occupied on a temporary basis solely by nonpaying guests. h. Mobile home. A factory -built home designed to be used as a year-round residential dwelling and originally designed and mounted on wheels and/or axle supports for transportation by another vehicle. i. Modular home. A factory -built residential structure that is transportable in one or more sections, is built on a permanent chassis, and is used as a place of human habitation, but which is not constructed with a permanent hitch or other device Kill CITY OF SEWARD, ALASKA ORDINANCE 2022-016 allowing transport of the unit other than for the purpose of delivery to a permanent site, and which does not have wheels or axles permanently attached to its body or frame. Includes factory -built and manufactured home. j. Multiple-family_A building designed as a residence for three or more families, with the number of families in residence not exceeding the number of dwelling units provided and each living independently of the other under one roof. k. Single-family, attached. A building containing two or more dwelling units, each of which has primary ground floor access to the outside and which are attached to each other by party walls without openings. Also commonly called townhouse, row house and zero -lot line. 1. Single-family, detached. A building designed and/or used exclusively for occupancy of one family and entirely surrounded by open space on the same lot. m. Two-family, o�plex. A building containing two single-family dwelling units totally separated from each other by an unpierced wall extending from ground to roof or unpierced ceiling and floor extending from exterior wall to exterior wall, except for a common stairwell exterior to both dwelling units. n. Unit, dwelling unit. A building or separate portion thereof containing kitchen, living, sleeping accommodations and at least one bathroom and designed to be occupied exclusively as a residence by one family. o. Watchman or caretaker dwelling. An accessory dwelling associated with a commercial or industrial building or structure for the purpose of housing a watchman or caretaker and immediate family. 32. Family. Any number of individuals not necessarily related by blood, marriage, adoption or guardianship living together in a dwelling unit as a single housekeeping unit and distinguished from a group occupying a rooming house, club, fraternity house or hotel. 33. Farm animal. Any cow, horse, mule, goat, sheep, pig, chicken, or other similar animal commonly kept as livestock. 34. Flea market. An occasional or periodic sales activity held within a building or open area where groups of individual sellers offer goods, new and used, for sale to the public, not to include private garage sales. 35. Floor area, useable. That area used for or intended to be used for the sale of merchandise or services or as leasable office space as measured from the interior surfaces of the walls enclosing that part of the building. Such floor area which is used or intended to be used for the storage or processing of merchandise, hallway or for utilities or sanitary facilities is excluded from this computation of useable floor area. 36. Fractions. In the determination of density, required parking spaces or other requirements of this Code, computations resulting in a fractional number of 0.50 or above shall be considered the next larger whole number. 37. Garage, private. An accessory building or portion of a main building designed or used solely for storage of motor vehicles, boats and similar vehicles owned by the occupants of the building to which it is accessory. My, CITY OF SEWARD, ALASKA ORDINANCE 2022-016 38. Greenhouse, commercial. -A light -permeating structure used for cultivating and growing plants in a controlled temperature and humidity environment where such plants are offered for sale either on the premises or at another location. (Group care home. See Housing) (Guest house. See Dwelling) 39. Guide service. Any premises used for collecting or returning persons from recreation trips when remuneration is provided for the service. (Halfway house. See Housing) 40. Health club. Includes, but is not limited to, gymnasiums (except public), private clubs (athletic, health or recreational), reducing salons and weight control establishments. 41. Historic district. An area containing buildings or places in which historic events occurred or having special public value because of notable architectural or other features relating to the cultural or artistic heritage of the community of such significance as to warrant conservation and preservation. 42. Home occupation. Any use customarily conducted entirely within a dwelling, or its accessory building, and carried on by the occupants thereof, which is clearly incidental and secondary to the use of the dwelling for dwelling purposes and does not change the character thereof, and in connection with which there is no exterior sign, no display or stock in trade, no outside storage of materials or equipment, no commodity sold upon the premises and not more than two persons are engaged in such occupation. 43. Home professional office. A home occupation consisting of the office of a practitioner of a recognized profession. (Hostel. See Lodging) (Hotel. See Lodging) 44. Housing. Structures providing housing for groups of people, such as students, employees or nursing home residents. a. Bunkhouse. A building used as living quarters for people such as cannery workers or construction laborers where shower and sanitary facilities are shared and in which there are no individual cooking facilities. b. Convalescent or nursing home. A structure with sleeping rooms where persons are housed or lodged and are furnished with meals, nursing and medical care. c. Dormitory. A building used as residential group living quarters for a student body or religious order as an associated use to a school, orphanage or other similar institutional use, and does not include kitchen facilities except a group kitchen facility to serve all residents. d. Group care home. A dwelling shared by no more than five disabled persons, plus resident staff, who live together as a single housekeeping unit and in a long-term, family -like environment in which staff persons provide care, education and participation in community activities for the residents with the primary goal of enabling residents to live as independently as possible in order to reach their maximum potential. The term "group care home" shall not include alcoholism or drug 303 CITY OF SEWARD, ALASKA ORDINANCE 2022-016 treatment centers, work release facilities for convicts or ex -convicts or other housing facilities serving as an alternative to incarceration. e. Halfway house. A licensed home for inmates on release from more restrictive custodial confinement, or initially placed in lieu of more restrictive custodial confinement, wherein supervision, rehabilitation and counseling are provided to mainstream residents back into society, enabling them to live independently. Such placement is pursuant to the authority of the Alaska Department of Corrections. 45. Junk. Dismantled or wrecked automobiles, aircraft, motor vehicles or machinery, mobile homes, trailers, watercraft, used appliances or furniture, scrap building materials, metals, rubber, paper, plastic or other scrap materials. 46. Kennel. Any enclosure, building, shelter, area or establishment used for the purpose of breeding, buying, selling, keeping or boarding five or more dogs over the age of four months, whether for profit, pleasure, or as pets, by any person, individual, corporation, group of people or business entity. Does not include an animal shelter. 47. Livestock. Generally accepted large (over 250 pounds) and small (under 250 pounds) outdoor farm animals (i.e., cows, goats, horses, pigs, barnyard fowl, etc.). Does not include cats, dogs and other common household pets. 48. Loading space. A space located on premises for pickup and delivery at the premises. Required off-street loading space shall not be included as an off-street parking space. 49. Lodging. The renting out of a dwelling, or portion thereof, to provide overnight sleeping accommodations for a period of less than 30 consecutive days. The „se ;,,,hides the a. Bed and breakfast. An owner occupied and operated single-family residential dwelling where lodging with a meal is provided for compensation on a short-term basis. The term does not include boardinghouses and separate apartments which are leased on a month -to -month or longer basis. b. Boarding or rooming. An owner -occupied building which has not more than five rooms available for rent or lease on other than a day-to-day basis and not open to transient guests for residential occupancy and in which no cooking or dining facilities are provided in the individual rooms. Meals may be regularly prepared and served for compensation at a table, family -style, without service or ordering of individual portions from a menu. The term includes lodging house or rooming house but does not include separate apartments with individual kitchen and bath facilities. c. Hostel. A building, or portion thereof, in which temporary or overnight lodging is provided for hikers, cyclists or other travelers not generally traveling by car. d. Hotel. A facility with six or more guest rooms and on -premises management offering transient lodging accommodations to the general public on a daily rate where access to all sleeping rooms is through a main entrance and which may provide food, entertainment, meeting rooms, recreational facilities or various personal services. Includes lodges and inns. e. Motel. A building, or group of detached or connected buildings, having six or more guest rooms, an on -premises manager and parking conveniently located on the 304 CITY OF SEWARD, ALASKA ORDINANCE 2022-016 premises, which are designed primarily to offer sleeping accommodations, with or without meals, to the motoring public on a daily rate. Includes designations such as motor lodges, auto courts, tourist courts and similar terms. L Short-term rental. A dwelling unit, or portion thereof, that is offered or provided to a west for compensation for a period of less than 30 consecutive days. Short-term rentals may be in individual rooms in sin -le -family homes, units in apartments, condominiums, townhouses, and multifamily dwellings. 50. Lot. A parcel of land of at least sufficient size to meet minimum zoning requirements for use, coverage and area and to provide such yards and other open spaces as are herein required. Such lot shall have frontage or access on a public street or on an approved private street and may consist of: a. A single lot of record; b. A portion of a lot of record; c. A combination of complete lots of record, or complete lots of record and portions of lots of record, or portions of lots of record; or d. A parcel of land described by metes and bounds, provided that in no case of division or combination shall any residual lot or parcel be created which does not meet the requirements of this chapter and that, in the case of multiple lots or portions thereof, the property be replatted to eliminate interior lot lines. 1. A- Lot area. The total horizontal area within the lot lines of a lot, exclusive of streets and alleys. 2. & Lot, buildable or useable area. That portion of a lot that a prudent person would use to construct a building and provide required parking. This excludes lakes and rivers, creeks, cliffs, marshes and other similar natural obstacles to development with the property counting toward minimum required size. 3. G— Lot, corner. A lot situated at the intersection of two or more streets having an angle of intersection of not more than 135 degrees. 4. 4)-- Lot coverage. The area of a site covered by building or roofed areas, including covered porches, decks and accessory buildings, but excluding allowed projecting eaves. 5. E— Lot depth. The horizontal distance between the front and rear lot lines measured on the longitudinal centerline. 6. F-. Lot, interior. A lot other than a corner lot. 7. & Lot line, front. In the case of an interior lot, a line separating the lot from the street. In the case of a corner lot, the owner may choose which street he shall designate as the front of the lot. Once the choice of frontage has been made, it cannot be changed unless all requirements for yard space are met. 8. 44- Lot line, rear. A line opposite and most distant from the front lot line and, in the case of irregular or triangular shaped lots, a line not less than ten feet in length within the lot, parallel to and at the maximum distance from the front lot line. 9. -]� Lot line, side. Lot boundary not a front lot line or a rear lot line. MOM CITY OF SEWARD, ALASKA ORDINANCE 2022-016 10. -J- Lot line, zero. The mean horizontal line whereby two adjacent buildings from adjacent lots can be constructed with a common party wall providing a proper fire wall rating. All other aspects are the same as in conventional development. 11. K-. Lot width. The average horizontal distance separating side lot lines of a lot and at right angles to its depth. 51. Lumberyard.An establishment that sells sawn timber and other building materials typically stored on the premises. 52. Manufacturing, heavy.A use engaged in the basic processing and manufacturing of materials or products predominately from extracted or raw materials; or a use engaged in storage of or manufacturing processes using flammable or explosive materials; or storage or manufacturing processes that potentially involve hazardous or commonly recognized offensive conditions. 53. Manufacturing, light. A use engaged in the manufacture, predominantly from previously prepared material, of finished products or parts that, because of the nature of its equipment, operations, processes, materials, and products, has little or no potential of creating noise, vibration, dust, smoke, fumes, odor, glare, or other environmental impacts on surrounding properties or uses. 54. Marijuana. Marijuana means "marijuana" as that term is defined in Alaska Statute 17.38.900 and any amendments thereto. 55. Marijuana establishment. Marijuana establishment means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store as those terms are defined in AS 17.38.900 and any amendments thereto. a. Marijuana cultivation facility. Marijuana cultivation facility means an entity registered to cultivate, prepare, and package marijuana and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers. 1. Limited marijuana cultivation facilit . A limited marijuana cultivation facility has the privileges set forth at 3 AAC 305.405(a) and (b), and is subject to the prohibitions at 3 AAC 306.405(c), except that it must have fewer than 500 square feet under cultivation. b. Marijuana product manufacturing _ facilit . Marijuana product manufacturing facility means an entity registered to purchase marijuana; manufacture, prepare, and package marijuana products; and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers. c. Marijuana testing _ facilitL-Marijuana testing facility means an entity registered to analyze and certify the safety and potency of marijuana. d. Retail marijuana store. Retail marijuana store means an entity registered to purchase marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana products from marijuana product manufacturing facilities, and to sell marijuana and marijuana products to consumers. 56. Marijuana products. Marijuana products means concentrated marijuana products and marijuana products that are comprised of marijuana and other ingredients and are MD] CITY OF SEWARD, ALASKA ORDINANCE 2022-016 intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures. 57. Marina. A facility for storing, servicing, fueling, berthing and securing and launching of boats that may include the sale of fuel and incidental supplies for the boat owners and guests. Also includes harbor. (Mobile home. See Dwelling) 58. Mobile home park. A parcel or adjacent parcels of land in the same ownership upon which two or more mobile homes are located or for which space is leased or held out for lease or use on a month -to -month or longer basis. This does not include sale lots on which unoccupied mobile homes are parked for inspection and sales and shall not be construed to mean tourist facilities for parking of travel trailers, motor homes or campers. 59. Mobile medical unit. A trailer, motorized coach or van capable of being transported from place to place, containing medical equipment such as a CT scanner, MRI or similarly complex medical diagnostic device or decontamination equipment. (Modular home. See Dwelling) (Motel. See Lodging) (Multiple -family. See Dwelling) 60. Nonconforming building. Any building or portion thereof lawfully existing at the effective date of the ordinance affecting it and which does not conform to all of the use, height and density regulations of the zone in which it is located. 61. Nonconforming use. A use which lawfully occupied a building or land at the effective date of the ordinance affecting it that does not conform to the use provisions of the zoning district in which it is located. 62. Noxious use. A use which is injurious or harmful to health, highly disagreeable or offensive. 63. Office. A building or portion of a building wherein services are performed involving predominantly administrative, professional or clerical operations; i.e., travel, insurance, employment, utility, public service or government agencies. 64. Open area. Open area is any portion of the lot not: a. Covered by a structure, or; b. Used for parking spaces and maneuvering. 65. Owner. Any individual, firm, association, syndicate, partnership, corporation, trust or any other legal entity having sufficient proprietary interest in the land, including the attorney or agent thereof. 66. Owner -occupied. The use of a dwelling unit as the primary residence and permanent Place of abode for the individual who holds the title of a property. 67. 04) Park. Any public land available for recreational, educational, cultural or aesthetic use. 68. (" Parking area. A structure or an open area, other than a street, alley or other right- of-way, on which vehicle parking spaces are defined, designated or otherwise identified and available, whether free or for compensation, for use by the public, clients, tenants, customers, employees or owners of the property for which the parking area is required by ordinance. CITY OF SEWARD, ALASKA ORDINANCE 2022-016 69. {� Parking requirements as stated in terms of employees.The maximum number of employees who will be at the site at one time on either a single shift or an overlap of shifts. 70. (" Parking space, off-street. A designated area sufficient in size to accommodate one motor vehicle, exclusive of maneuvering room, designed with adequate independent access to, but located off, any street, alley or other right-of-way. 71. (74) Parking, valet. Attendant parking provided as a service to patrons of commercial establishments. 72. (74) Peddler. A person who, with no fixed place of business, goes from house to house, place to place, or from store to store transporting goods, wares or merchandise for sale or offering or exposing the same for sale or making sales and delivering articles to purchasers. (See Transient merchant and Vending, Street.) 73. (7-21) Planned unit development. A land development under unified control that is planned and constructed in its entirety as a single development operation or in a series of programmed stages. The development may include streets, circulation ways, utilities, residences, commercial buildings, open spaces and other site features and improvements some of which may not otherwise be individually permitted. 74. (7-3-) Profession. An occupation or calling requiring the practice of a learned art through specialized knowledge, training, experience or a degree issued by an institute of higher learning; i.e., doctor of medicine, lawyer, engineer or real estate broker. 75. (74) Professional office. The office of a member of a recognized profession maintained for the conduct of that profession. 76. (7-5-) Recreational, indoor commercial. A facility accommodating such indoor recreation activities as skating rinks, bowling lanes or shooting/archery ranges. 77. {7-6} Recreational, outdoor public. Outdoor recreation facilities such as sports fields, ice rinks, playing fields or miniature golf. 78. {7-7} Recreational vehicle. A vehicle used or intended to be used as transient living or sleeping quarters for humans and which may be driven, towed or propelled from one location to another without change in structure or design, whether or not the same is supported by wheels or identified by a model, serial or vehicle registration number. Includes travel trailers, camping trailers, tent campers, trailer coaches, motor homes, truck campers and similar vehicles. 79. (7-9) Recreational vehicle (RV) bark. Any parcel of land upon which two or more recreational vehicle sites are located, established or maintained for commercial occupancy by recreational vehicles of the general public as temporary living quarters for recreation or vacation purposes. Includes trailer park and camper park. 80. (-7 - Recycling center. A building in which used material is separated and processed prior to shipment to others who will use those materials to manufacture new products. 81. {" Recycling collection point. An incidental use serving as a neighborhood drop-off point for temporary storage of recoverable resources. No processing of such items would be allowed. This facility would generally be located in a shopping center parking lot or in other public/quasi-public areas such as churches and schools, as opposed to being allowed on residential or vacant lots. 308 CITY OF SEWARD, ALASKA ORDINANCE 2022-016 82. (-&o Repair service, household/appliance. A business establishment where repairs are made to appliances and furniture. 83. (824 Residence. A home, abode or place where an individual is actually living at a specific point in time. 84. {" Resource extraction. Commercial or industrial operations involving the removal of nonrenewable natural resources such as ore, topsoil, sand, gravel, rock, gas, oil or any operations having similar characteristics. Said use includes the use of heavy equipment such as loaders, dozers, backhoes and crushers. 85. " Restaurant. An establishment whose principal business is the sale of food and/or beverages to customers in a ready -to -consume state and whose principal method of operation includes one or both of the following characteristics: a. Customers, normally provided with an individual menu, are served their foods and beverages by a restaurant employee at the same table or counter at which the food and beverages are consumed; and/or b. A cafeteria -type operation where food and beverages generally are consumed within the restaurant building. 86. {" Restaurant, fast-food. An establishment whose principal business is the sale of quickly prepared, ready -to -eat food and/or beverages for consumption within the restaurant building, within a motor vehicle parked on the premises, or off the premises as carry -out orders, and whose principal method of operation includes the following characteristics: orders are generally taken at a main counter or drive -up window and food and/or beverages are usually served in disposable wrapping or containers. This includes drive-in and carry -out restaurants. 87. (864 Right-of-wayAn area or strip of public land which incorporates or is intended to be occupied by, but not limited to, streets, alleys, sidewalks, bike paths, curbs, gutters, landscaping and/or public utilities. 88. {-8� Salvage yard auto wrecking, scrap, funk). Any area used for the storage, keeping or abandonment of junk or waste material, including scrap metal or other scrap materials, or for the dismantling, demolition or abandonment of automobiles, machinery, other vehicles or parts thereof. 89. {8 } School. Any public, religious or nonprofit facility providing a general curriculum of academic or vocational instruction serving any or all grades between kindergarten and twelfth grade. 90. �" School, commercial. A facility providing commercial instruction in such activities as music, dance, arts, crafts and sailing. 91. (" School, adult vocational. A facility providing a general curriculum of adult academic or vocational instruction. 92. (94-) Setback. The required minimum distance from a right-of-way or lot line that establishes the area within which only fencing, landscaping, driveways, parking and similar uses are permitted. Any structure including, but not limited to, decks, stairways, porches or other attachments to a building are specifically prohibited in the setback. Building eaves are permitted to extend into the setback a maximum of two feet. 309 CITY OF SEWARD, ALASKA ORDINANCE 2022-016 93. (" Shopping center. A single complex which provides a combination of retail establishments designed in such a manner as to provide convenience for shoppers with common parking facilities. Includes mall. (Single-family, attached. See Dwelling) (Single-family, detached. See Dwelling) 94. (" Solid waste facility. A disposal site employing an engineering method for disposing of solid wastes in a manner that minimizes environmental hazards. Includes landfill, compactor, transfer, etc. 95. (" Storage. A structure or designated area that provides space for storing. a. Container. An accessory storage use consisting of containers such as semi -tractor vans, shipping containers and conex containers originally designed to transport goods and materials via highway, rail, air or sea, which are placed on a parcel of land and used for covered storage provided that all wheel assemblies have been removed, and the unit is located outside any setbacks. Containers, whether temporary or permanent, are considered a structure and must comply with current adopted building codes. Railroad box cars are excluded except in the industrial zone. (See Accessory Use/Building, Building, and Structure) b. Outdoor. The commercial keeping, in an unroofed area and usually enclosed by a fence, of any goods, junk, material, merchandise or vehicles in the same place for an extended period of time. In the harbor commercial area, the use is limited to the storage of boats only. c. Self-service. A building or group of buildings consisting of individual, small, self- contained units that are leased or owned for storage of business and household goods or contractors' supplies. Includes mini warehouses. d. Warehouse and distribution. A building used primarily for the storage and/or distribution of goods, products, materials, supplies and equipment, but excluding bulk storage of materials that are flammable or explosive or that create hazardous or commonly recognized offensive conditions. 96. {} Street. A dedicated public way which affords the principal means of access to abutting property, such as an avenue, place, drive, boulevard, highway or other similar public thoroughfare, except an alley as defined herein. 97. (90 Structure. Anything constructed or erected on the ground or attached to something having location on the ground, including, but not limited to, buildings, towers, and sheds. Fences, retaining walls less than three feet in height, signs and similar improvements of a minor character are excluded. 98. (" Surface, durable. Means brick, flag -type stone, gravel, cement, or asphalt. 99. (9 - Temporary structure. A structure without any foundation or footings as allowed by the adopted building code which must be completely removed from the parcel when the temporary permit for the structure/use expires. 100. (" Trailer. A structure standing on wheels, towed or hauled by another vehicle and used for carrying materials, goods or objects or as a temporary office or business. 101. {�Transient merchant. Any person, partnership, firm or corporation, whether a resident of the City or not, who engages in a temporary business, within a period not CITY OF SEWARD, ALASKA ORDINANCE 2022-016 exceeding 150 consecutive days in a calendar year, of selling and delivering goods and/or services, wares and merchandise for profit or nonprofit within the City by operating on a door-to-door, street corner or similar basis; or from no fixed location or office; or from a location out-of-doors or in quarters that are easily moveable, such as a temporary leased area or space, motor vehicle, trailer or tent. Includes peddlers, solicitors, itinerant merchants and vendors. Does not include vehicles for hire. (Two-family. o�plex. See Dwelling) (Unit, dwelling unit. See Dwelling) 102. 0044Utilitypublic facilit._An installation owned by an agency under public franchise or ownership, or under certificate of convenience and necessity, providing the public with electricity, gas, heat, steam, communication, water, sewage collection or other similar service. 103. � Vehicle, motor. A self-propelled device used for transportation of people or goods over land surfaces and licensed as a motor vehicle. 104. (4"Vending. The sale of food, services or merchandise. a. Hawking. Is the loud or continuous audible solicitation of business by a vendor to the general public. b. Mobile vending cart. Is a non -motorized structure Is a non -motorized structure or unit on wheels that is easily moved and used for vending. c. Mobile vendor. A person or business that sells food or permitted types of goods from City -approved locations using (i) a licensed vehicle or cart capable of movement; or (ii) a licensed trailer pulled behind a motor vehicle. b. Pre -packaged food. Ready -to -eat food that is cooked, wrapped, packaged, processed, or portioned for service, sale or distribution. c. Roving vendor. A person who offers only pre -packaged food items to the public, with or without the use of a licensed motor vehicle, from no fixed location on public property, only on rights of way within designated zoning districts, excluding Fourth Avenue between Port Avenue and Van Buren Street, and also excluding Fourth and Fifth Avenues between Jefferson Street and Railway Avenue. d. Transient merchant. Any person, partnership, firm or corporation, whether a resident of the City or not, who engages in a temporary business, within a period not exceeding 150 consecutive days in a calendar year, of selling and delivering goods and/or services, wares and merchandise for profit or nonprofit within the City by operating from a location out-of-doors or in quarters that are easily moveable, such as a temporary leased area or space, or motor vehicle, trailer or tent. Includes peddlers, solicitors, itinerant merchants and vendors. Does not include vehicles for hire. Transient merchants operate exclusively from private property. (Note: Transient merchant definition relocated. Previously 15.10.140. B. 95.) 105. (4"Veterinary hospital. A facility, which may include animal runs, in which veterinary services are rendered to animals and domestic pets and which may include clipping, bathing, boarding and other services. Includes veterinary clinic. (Watchman or caretaker dwelling. See Dwelling) CITY OF SEWARD, ALASKA ORDINANCE 2022-016 106. (4"Water-dependent. A use or activity which can be carried out only on, in or adjacent to water areas because the use requires access to the water body for water -borne transportation, recreation, energy, production or source of water. 107. (44OWater-related. Uses which are not directly dependent upon access to a water body but which provide goods or services that are directly associated with water -dependent land or waterway use and which, if not located adjacent to water, would result in a public loss of the quality of goods or services offered. 108. (4"Yard. A required open space on the same lot with a main building, unoccupied or unobstructed from the ground upward, except as otherwise provided in this chapter. a. Front. The area extending across the full width of a lot, measured between the front lot line and the nearest exterior wall of the building, front of a bay window or the front of a covered porch or other similar projection, whichever is the nearest to the front lot line. b. Rear. A yard extending across the full width of the lot between the most rear extension of the main building and the rear lot line. The depth of the required rear yard shall be measured horizontally from the point of the rear lot line nearest to the main building. In cases of double frontages and corner lots, there are no rear yards, only front and side yards. c. Side. A yard between a main building and side lot line, extending from the front yard to the rear yard. The width of the required side yard shall be measured horizontally from the nearest point of the side lot line toward the nearest part of the main building. 109. (44&)Zero-lot line. The location of a building on a lot in such a manner that one or more of the building's sides rests directly on a lot line. (Ord. 626, § 3, 1989; Ord. 633, § 1, 1990; Ord. 92-02; Ord. 92-14; Ord. 93-05; Ord. 94-26; Ord. 95-07; Ord. 95-17; Ord. 96-05; Ord. 97-12; Ord. 98-02; Ord. 98-06; Ord. 98-09; Ord. 99-01; Ord. 99-10; Ord. 99-16, § 3, 1999; Ord. 2003-09; Ord. No. 2010-005, § 1, 10-11-2010; Ord. No. 2011- 004, § 1, 5-29-2012; Ord. No. 2014-002, § 1, 4-28-2014 ; Ord. No. 2014-004, § 1, 5-27-2014; Ord. No. 2015-001, § 1, 2-23-2015; Ord. No. 2016-005, § 3, 6-27-2016; Ord. No. 2018-002, § 4; Ord. No. 2018-004, § 1; Ord. No. 2020-012, § 1, 10-12-2020; Ord. No. 2022-002, § 1, 1-24-2022) Section 2. Seward City Code Title 15.10.226 is hereby amended to read as follows (new language is in bolded italics and underlined, and deleted language is stricken): 15.10.226 Land uses allowed. A. Table 15.10.226 Land Uses Allowed is incorporated herein by reference and the restrictions contained therein are mandatory unless otherwise modified by this chapter (See Table 15.10.226) B. Lodging as defined in section 15.10.140B. is allowed in accordance with table 15.10.225 of this chapter and subject to the following conditions: 1. Regardless of the date such use began, an annual administrative permit is required. Prior to issuing the permit, the City shall conduct an annual life safety inspection of each guest room to assure compliance with the current adopted building code door/window egress standards, the presence of an operable and inspected fire extinguisher and adequate 41M CITY OF SEWARD, ALASKA ORDINANCE 2022-016 smoke detection systems, a posted evacuation plan, and visible signs showing exit locations. 2. The application for an annual administrative permit shall be accompanied by a fee established by City Council resolution. A fee will be issued for each separate, advertised, rentable lodzinz unit. 3. Before any permit is issued, the applicant shall furnish evidence of the existence of one or more policies ofinsurance, issued by an insurance company satisfactory to the City, providinz insurance coveraze for lodzinz Policies shall stipulate that the insurer will give written notice to the City at least 30 days prior to the cancellation, expiration, lapse or other termination of the insurance coverage. 4. (42) Parking will be provided in accordance with section 15.10.215 of this chapter. 5. (-3-) No cooking or cooking facilities are permitted in individual guest bedrooms. 6. 0+Within principally residential districts RR, R1, R2, R3, UR- lodging is limited to a home occupation within an owner -occupied dwelling which is the owner's principal place of residence and to the rental of not more than 50 percent of the bedrooms to a maximum of fire three. 7. Within principally residential districts R2, R3, UR, lodzinz in multifamily dwellin'-s is limited to not more than 50 percent of the dwellin,- units with one of the units beinz the owner's principal place of residence. 8. (8) Within principally commercial districts -OR, AC, HC, and CB- excluding the Industrial zoning district, lodging within a dwelling unit is limited to the rental of not more than five guest bedrooms regardless of building or business ownership. 9. Within principally commercial districts -(OR, AC, HC, and CB, lodging within a sinzle- family residence, is limited to a home occupation within an owner -occupied dwelling which is the owner's principal place of residence and to the rental of not more than 50 Percent of the bedrooms to a maximum of five. 10. {Within principally commercial districts OR, AC, HC, and CB; excluding the Industrial zoning district, multifamily dwellings used for lodging purposes are not required to be the business or property owner's principal place of residence. The use shall be limited to not more than five-apaFtmen dwelling units. 11. Within principally commercial districts OR, AC, HC, and CB, an individual must wait 4 years from the January of the followinz year after purchasinz a multifamily dwelling before applyinz for a non -owner -occupied Short-term rental permit. A Ion, --term rental and an owner -occupied Short-term rental permit may be obtained immediately upon purchase of the multifamily dwellinz. 12. (-The rental of individual rooms for lodging purposes is not extended to apartment unit tenants. 13. {Regardless of business name, the use of more than five guest bedrooms or apartments is considered a motel or hotel for building and other code interpretation purposes. 1411K3 CITY OF SEWARD, ALASKA ORDINANCE 2022-016 C. Mobile vendor as defined in section 15.10.140(B)(98) Vending (C) of this chapter and which are allowed in accordance with table §15.10.225 are subject to the following development requirements: 1. An application for a mobile vendor must be submitted on a form provided by the City Clerk's office yearly with colored pictures of at least two different angles of the unit the applicant is applying to license and a description that includes the length and width, when in its widest configuration. 2. Mobile vendors may operate at designated locations, by permit. Policies and procedures shall be set by resolution of the City Council. 3. The City police department has the right to close down a mobile vendor if vending is causing or contributing to an imminent public safety hazard. 4. No mobile vending shall take place on public property between the hours of 10:00 p.m. and 6:00 a.m. unless otherwise posted. 5. A mobile vendor may only offer, for sale, the following types of goods and services on public property: food and/or non-alcoholic beverages; handicrafts, artwork, jewelry or similar goods or firewood. 6. Licenses. In addition to complying with City of Seward ordinances related to mobile vendors and applicable regulations, the owner and operator is responsible for applying for and obtaining all other necessary licenses and satisfying the standards of the City permit conditions. 7. Mobile vendor vehicles or carts may not remain in place overnight or in City parking lots. 8. Mobile vendor vehicles must be self-contained when operating, except for the required trash and or recycling receptacles, which shall be in a safe location and in no event shall impede the free movement of automobiles or pedestrians, within their permitted lot or space. 9. Mobile vendors must serve to the sidewalk or esplanade next to a sidewalk when parked in spaces parallel to City sidewalks. 10. It shall be unlawful for a vendor to attract customers by hawking or physically accosting persons. 11. Each mobile vendor vehicle shall provide the City with a certificate of insurance to cover public liability in the standard amount set by City policy. Insurance policies shall stipulate that the insurer will give written notice to the City at least 30 days prior to cancellation or other termination in coverage. Prior to acceptance of their permit, vendors shall execute an instrument under the terms of which the permittee shall agree to indemnify, defend, and hold harmless the City from any and all claims for injury or damage to persons or property suffered in connection with vendor activities. 12. Any mobile vendor base station shall be properly licensed. 13. Mobile vendors shall comply with all City code, policy and procedures. Failure to adhere to the regulations for mobile vendors is cause for revocation or suspension of the license / permit by the City Clerk. 0E,I CITY OF SEWARD, ALASKA ORDINANCE 2022-016 14. Mobile vendors shall display required permits and City business license in a prominent location on the mobile vending cart or vehicle from which the business is conducted pursuant to the permit, so it is protected from the weather and easily visible to the public. D. Roving vendor as defined in section 15.10.140 B 98 (e) of this chapter and which are allowed in accordance with table 15.10.225 are subject to the following development requirements: 1. Roving vendors shall not vend on any public street where the legal speed limit exceeds 25 miles per hour, or on Fourth Avenue between Port Avenue and Van Buren Street, and also excluding that portion of Fourth and Fifth Avenues between Jefferson Street and Railway Avenue. 2. Roving vendors shall not vend on any public street before 6:00 a.m. or after 10:00 p.m., unless otherwise posted. 3. Roving vendors shall vend only when the vehicle is lawfully parked and completely stopped. 4. Roving vendors shall vend on public streets from the side of the vehicle away from moving traffic, and within one foot of the curb or edge of the street. 5. Roving vendors shall not vend or permit the vehicle to stand in one place in any public place or street for more than 30 minutes or in front of any premises for any time if the owner or lessee objects. 6. An application for a roving vendor vehicle must be submitted on a form provided by the City Clerk's office yearly with colored pictures of at least two different angles of the unit the applicant is applying to license and a description that includes the length and width, when in its widest configuration. 7. The City police department has the right to close down or request a roving vendor to relocate if vending is causing or contributing to an imminent public safety hazard. 8. In addition to complying with City ordinances and permit conditions related to roving vendors, the owner and operator is responsible for applying for and obtaining all other necessary licenses required for the service of food. The roving vendor vehicle shall be in compliance with the motor vehicle laws of the state, and the roving vendor vehicle owner is responsible for complying and verifying that a specific location or route does not violate city zoning code. 9. Roving vendors shall comply with all traffic rules. 10. Each roving vendor vehicle must provide the City with a certificate of insurance to cover public liability in the standard amount set by City policy. Insurance policies shall stipulate that the insurer will give written notice to the City at least 30 days prior to cancellation or other termination in coverage. Prior to acceptance of their permit, vendors shall execute an instrument under the terms of which the permittee shall agree to indemnify, defend, and hold harmless the City from any and all claims for injury or damage to persons or property suffered in connection with vendor activities. 11. Any roving vendor base station must be properly licensed. 12. Roving vendors shall comply with City code, policy and procedures. Policies and procedures shall be set by resolution of the City Council. Failure to adhere to the regulations for roving vendors is cause for revocation or suspension of license permit by the City Clerk. ON CITY OF SEWARD, ALASKA ORDINANCE 2022-016 13. Roving vendors shall display required permits and City business license in a prominent location on the mobile vending cart or vehicle from which the business is conducted pursuant to the permit, so it is protected from the weather and easily visible to the public. E. Transient merchants as defined in section 15.10.140B. of this chapter and which are allowed in accordance with table 15.10.225 are subject to the following development requirements: 1. For purposes of this chapter, such use and storage of equipment shall be limited to a period not exceeding 150 consecutive days in a calendar year. 2. Transient merchant facilities shall be and remain legally licensed and road ready and shall be removed completely from the property at the end of 150 days. 3. Transient merchants shall provide for the concealed storage of all inventory, supplies, equipment and other materials brought to the site in connection with the business conducted there. 4. Transient merchants using vehicles and trailers in the operation of transient business activities authorized by this chapter shall ensure that the area of operation meets the required setbacks as provided by section 15.10.220. In no case shall the allowed area of operation be less than five feet from any property line, permanent structure or other transient merchant. 5. Prior to operation, vehicles and trailers utilized for transient merchant purposes shall have blocked tires and be fully skirted to match the vehicle or trailer. 6. Any additions, including, but not limited to, porches, platforms and decks, shall be sided or painted to match or complement the vehicle or trailer prior to operation. 7. Every transient merchant shall provide sufficient trash receptacles on -site and ensure the proper disposal of all garbage collected on the site. 8. The use of generators is prohibited. 9. No transient merchant shall conduct business on property owned or operated by the City except in accordance with chapter 8.10 of this Code. 10. Transient merchants shall conform to all federal, state and local laws. F. Reserved. G. Livestock as defined in section 15.10.140B. are allowed in accordance with table 15.10.225 of this chapter subject to the following: 1. Lot size may not be less than 20,000 square feet per large animal, or not less than 20,000 square feet for every two small animals (excluding chickens and rabbits). 2. Livestock fencing shall be no closer than five feet from a property line. 3. A City -approved drainage plan showing that runoff from the livestock corral or pen will not adversely impact neighboring property or streams. 4. A City -approved manure storage and disposal plan. The manure storage pile shall not be closer than 25 feet from any property line. 5. Up to five chickens (hens) or rabbits are allowed in accordance with table 15.10.225. 6. Chicken or rabbit coops and enclosures are required and must meet a minimum setback of 25 feet from neighboring homes. 7. Chickens or rabbits are not allowed on lots with more than one dwelling unit. H. Marijuana establishments as defined in section 15.10.140.B.53 are allowed in accordance with table 15.10.225 of this chapter subject to the following: ON CITY OF SEWARD, ALASKA ORDINANCE 2022-016 1. The facility owner or operator has submitted a license application to the State of Alaska for the corresponding type of marijuana establishment prior to operation, and maintains a current license from the state at all times the facility is in operation. 2. Marijuana establishments shall not to be located within 500 feet of the entrance of any building where religious ceremonies are regularly held, a correctional facility, recreational facility or youth center licensed by the state or local government, or within 1,000 feet of any school. The distance specified in this subsection must be measured by the shortest pedestrian route from the public entrance of the building in which the licensed premises would be located to the outer parcel boundaries of the school, recreation or youth facility or to the main public entrance of the building in which religious services are regularly held, or the correctional facility. The burden of proof demonstrating that the facility meets the required separation distances is the responsibility of the marijuana establishment owner or operator. 3. In this title, standard or limited marijuana cultivation facility meeting all other criteria in this Code and in Alaska Statutes and Administrative Codes are classified as a Greenhouse(s)/Commercial, except that a limited marijuana cultivation facility as an accessory use secondary to a residence may be classified as a Home Occupation use. 4. In this title, a marijuana testing facility meeting all other criteria in this Code and in Alaska Statutes and Administrative Codes is classified as an Office - Business or Professional use. 5. In this title, a marijuana product manufacturing facility or a marijuana concentrate manufacturing facility using hazardous materials in the manufacturing process and meeting all other criteria in this Code and in Alaska Statutes and Administrative Codes is classified as a Manufacturing - Heavy use. Facilities not using hazardous materials in the manufacturing process are classified as a Manufacturing, Light use. 6. In this title, a retail marijuana store meeting all other criteria in this Code and in Alaska Statutes and Administrative Codes is classified as a Business - Retail Sales and Service use. I. Camping is allowed subject to the following: 1. Camping for a fee shall be allowed within the City limits only in municipal campgrounds, as defined in section 7.15, or in private camper parks operating under a permit, as defined in section 8.15. 2. Other than permitted camper parks, camping on privately owned lots as an accessory use to an occupied, single family home is limited to private non-commercial use and for no fee. Such occupancy shall be limited to one camping unit at a time and shall be for recreational or vacationing purposes only. Camping as provided in this section shall not occur earlier than April 15th and no later than September 30th J. Employee Campgrounds are allowed in accordance with table 15.10.226 of this chapter subject to the following: 1. Employee campgrounds are for established businesses with high seasonal employment of transient workers, and are not to be construed as construction camps. No employee campground may be open for more than 180 days per calendar year, and may not open earlier than April 15, nor remain active later than September 30, except by resolution of 01M CITY OF SEWARD, ALASKA ORDINANCE 2022-016 the City Council based on specific findings that a longer term, earlier opening date and/or later closing date is warranted because of special circumstances. 2. Camping units as described in [section] 15.10.140 are not permitted. For the purposes of this section, a camping unit is described as a modified camping Connex, providing living facilities for one or more persons. 3. Occupancy in an employee campground is limited to the transient workers of that industry or business granted a conditional use permit. 4. Garbage and refuse. The requirements of section 8.15.340 shall also apply to employee campgrounds. 5. Sanitary facilities shall be provided and include either permanent or portable toilets on - site. If permanent facilities are constructed, they shall conform to section 8.15.425(b). Shower facilities shall be provided and may either be on -site in conformance with section 8.15.425(b), or provided on the job site of the employer. 6. The requirements for spacing shall be at least ten feet clear space between camping units. Camping units, other than those being used for living accommodations, shall not be parked within the campground area proper. (Ord. 626, § 3, 1989; Ord. 633, §§ 3, 4, 1990; Ord. 639, 1991; Ord. 90-2; Ord. 91-1; Ord. 91-04; Ord. 92-02; Ord. 94-11; Ord. 94-25; Ord. 95-07; Ord. 95-13; Ord. 95-17; Ord. 96-05; Ord. 97- 13; Ord. 98-09, § 4; Ord. No. 2012-002, § 1; Ord. No. 2014-004, § 1; Ord. No. 2016-005, § 3; Ord. No. 2018-004, § 1; Ord. No. 2022-003, § 1, 1-24-2022) Editor's note(s)—Ord. No. 2018-004, § 1, adopted § 1, 7-9-2018 renumbered § 15.10.225, to § 15.10.226, as herein set out. TABLE Zoning District Designations The following zoning district abbreviations are provided for information and interpretation: RR = Rural, ve low density single-family residential R1 = Single-family, low density residential R2 = Single and two-family, medium density residential R3 = Single, two and multi -family, high density residential UR = Urban residential, a mix of residential uses and low impact home professional offices OR = Office residential AC = Auto and neighborhood oriented, light commercial HC = Harbor commercial CB = Central business district - dense downtown commercial I = Industrial RM = Resource management - partially developable lands subject to floodplains and steep slopes INS = Institutional, public, quasi -public uses P = Parks 41M CITY OF SEWARD, ALASKA ORDINANCE 2022-016 Table 15.10.226. Land Uses Allowed KEY: O - Use Permitted Outright H - Home Occupation C - Use Requires Conditional Use Permit P - Use Requires Administrative Permit Blank - Use Prohibited Zoning Districts Principally Residential Principally Commercial Principally Public Uses RR R1 R2 R3 UR OR AC HC CB I RM INS P Accessory building O O O O O O O O 1 O O O O O Adult entertainment INTENTIONALLY LEFT BLANK Agency, i.e., travel insurance, title, real estate, etc. O O O O O Agriculture O Airport and related services O C Amusement or recreationfacility O O O Animal shelter O C C Antenna, personal TV, satellite dish O O O O O O O O O O O O Art gallery O O O O O Assemblages, temporary large,i.e., circus, fair P P P P P P P Attraction, permanent major visitor C C C C C Auditorium O O O Auto repair, i.e., mechanic, glass body, upholstery C O Auto service/gas station O O O Auto/RV sales and rentals O O O Boat sales O O O Boat, commercial building/fabrication O O Boat, harbor/marina C C C C C Boat, repair and maintenance O O O C Boat, storage commercial O O O C Bulk material, i.e., concrete,gravel, sand, asphalt C C Business, marine retail sales and service O O O O C Business, package liquor O O O Business, retail sales and service O O O O Business, retail sales andservice, industrial O Campground, municipal UP C/P C/P C/P Campground, camper parkprivate C/P C/P C/P CITY OF SEWARD, ALASKA ORDINANCE 2022-016 Zoning Districts Principally Residential Principally Commercial Principally Public Uses RR R1 R2 R3 UR OR AC HC CB I RM INS P Campground, employee UP Car/boat wash O O O Cemetery O C O Center, community/civic O O C C Center, mariner's O O O O Center, senior or teen C C C O O C C Child care, licensed center C C O O O C Child care, licensed home O O O O O O O O O Church C C C C C C O O O O Clinic, medical O O O O O Clubs, fratemal/lodges/social/veterans C O O C Cluster subdivision C C C Commercial communications tower less than 16 feet diameter or 75 feet in height C C C C C C Commercial communications tower 16 feet diameter or greater than 75 feet in height C C C Correctional/prison facility C C C C Crematory O Docks/wharves, industrial cargo O O C C Dock, passenger O O O C O Drinking establishment, i.e.,bar, nightclub, lounge C C C Drive-in facility —Fast food,banking, etc. C C C C C Dwelling, apartment in a commercial building (limited to one unit) O O O O O C Dwelling, apartment in a commercial building (two or more units) O O C C Dwelling, apartment, efficiency or accessory O O O O O O O Dwelling, apartment, studio C C C C C C Dwelling, attached single-family, i.e., townhouse, row C C C C C C C Dwelling, condominium C C C C C C C Dwelling, detached single-family O O O O O O O C C Dwelling, group home O O O O O O C Dwelling, guest house O O C Dwelling, multi -family (3 or more units) C C C C C C C M91 CITY OF SEWARD, ALASKA ORDINANCE 2022-016 Zoning Districts Principally Residential Principally Commercial Principally Public Uses RR R1 R2 R3 UR OR AC HC CB I RM INS P Dwelling, two-family or duplex O O O O O C C Dwelling, watchman or caretaker O C Emergency services, pub/vol;i.e., fire, ambulance, rescue C C C C C C O C O O C O Financial institution, i.e., bank S&L C O O Flea market, open air retailother than occasional C C C Fuels, bulk storage and sales C Golf course O O C Golf driving range O O O O C Greenhouse/nursery—Commercial O O O Grocery, convenience store C C C O O O O Grocery, supenuarket,food mart O O Health club C C O O O Home occupation O O O O O O O O O O Hospital C C House ror+4 $ I' R R R $ a a tiig44y-ba&is Housing, bunkhouse C C C Housing, dormitory O O Housing, nursing, retirement, convalescent C C C Kennel, commercial, musher or fancier INTENTIONALLY LEFT BLANK Laundry, dry cleaning O C O O Library O O O O Livestock, excluding chickens and rabbits P P Livestock, chickens and rabbits P P P P P P I P P I P Lodging, B&B, ce H/P H/P H/P H/P H/P O/P O/P O/P O/P Lodging, hostel P P P P P P Lodging, hotel, motel, lod e,inn C O C C Lodging, short-term rental sin le- HIP HIP — HIP — /P HIP — HIP — H/P — HIP — HIP fami1v dwelling— Lodging, short-term rental multi -family dwellin HIP — UIP HIP — P — P — P — P Lodging, short-term rental Non -owner occupied)— P P — P — P — g I' I' I' I' g P Lumberyard/building supply C O C Manufacturing —noxious, heavy C Manufacturing, light fabrication, assembly C C O M CITY OF SEWARD, ALASKA ORDINANCE 2022-016 Zoning Districts Principally Residential Principally Commercial Principally Public Uses RR R1 R2 R3 UR OR AC HC CB I RM INS P Merchant, transient O O O O Mobile home park I IC/P Mobile home, residential, not in park INTENTIONALLY LEFT BLANK Mobile home sales O O Mobile medical unit O O O Mobile vendor P P P P P P P P P P P Mortuary/funeral home O O O Museum C O O O O O Office, boat charier, guide O O O O O C Office, business or professional O O O O O Office, government/quasi- government administration O O O O O O O Office, mobile/temporary on construction site P P P P P P P P P P P P P Office, home, professional O O O O O Parking lot C C O O O O O O O O Personal services, i.e., beauty,shoe, tailor O O O O Planned unit development C C C C C C Playground, public tot lot O O O O O O O O O O O Railroad C C C C Recreation, commercial indoor,i.e., bowling, skating O O O C Recreation, outdoor, i.e.,miniature golf O C C C Recreation, shooting range C C C Recycling center C C O C Recycling, self-service drop-off point O O O O O O O 0— Repair service, i.e., large appliance C C O Resource extraction, commercial subsurface, i.e.,mining C C C Resource extraction, commercial surface, i.e., gravel C C C Resource extraction, commercial timber harvesting C C Restaurant, food service,catering, brew pub O O O O O C Rooming or boarding house O/P O/P O/P O/P Roving Vendor P P P P P P P P P P P Salvage —auto, wrecking, scrap, junkyard C Sawmill or lumbermill C C School, college C C C_T School, public/private elementary/secondary C C C C C C C C C Ky�: CITY OF SEWARD, ALASKA ORDINANCE 2022-016 Zoning Districts Principally Residential Principally Commercial Principally Public Uses RR R1 R2 R3 UR OR AC HC CB I RM INS P School, vocational C O O C O C Seafood processing, i.e.,canning, rendering C C C C Shop, i.e., welding, sheet metal, machine, steel fab. C C O Shop, i.e., wood, signs, cabinet, upholstery C C O C O Shopping center (mall) C C Solid waste disposal, i.e., baler, transfer, landfill C C C Storage, container P P P P O P Storage, explosives P Storage, outdoor, yard, material/e ui ment C O O C Storage, self service O O O O Storage, warehouse and distribution O O O C C Studio, radio/television C O O O O C Tanks, above ground associated with service station O O C O C O O O Taxidermy Terminal, i.e., bus, truck, freight O C O C Terminal, marine/boat passenger O C O O C Theater, concert, movie O O Tool/equipment rental O O Zoning Districts Principally Residential Pri cipally Commercial Prin ipally Public Uses RR RI R2 R3 UR OR I AC HC CB I RM INS P Temporary structure P P P P P P P P P P Utility facility, public electric,water, sewer, etc. C C C C C C O O O O O O Vehicle impound lot O O Vending machine repair,storage O O C Veterinary hospital C C C Wind Energy Conversion Systems (WECS) O O O O O O O O O O O O O Section 3. This ordinance shall take effect ten (10) days following enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, the 28th day of November, 2022. 323 City of Seward, Alaska Planning & Zoning Commission Meeting August 2 2022 Minutes Volume 7, Page 546 CALL TO ORDER The August 2, 2022 regular meeting of the Seward Planning & Zoning Commission was called to order at 7:00 p.m. by Chair Clare Sullivan.. OPENING CEREMONY The commission led the pledge of allegiance to the flab. ROLL CALL There were present: Clare Sullivan presiding, and Vanessa Verhey Troy Staggs Comprising a quorum of the Commission; and Brenan Hornseth Jason Bickling, Community Development Director Courtney Bringhurst, City Planner Brenda Ballou, City Cleric Excused — Charbonneau, Monaco Absent — None Vacant — One CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING —None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (VerheylStaggs) Motion Passed Approval of Agenda and Consent Agenda Unanimous The clerk read the following approved consent agenda items: Approval of the June 7, 2022 Regular Meeting Minutes. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards —None City Administration Report. Community Development Director Jason Bickling said, in addition to his report in the packet, he would be working to systematically bring forward 324 City of Seward, Alaska Planning & Zoning Commission Meeting August 2, 2022 Minutes Volume 7, Page 547 portions of the city code for the commission's review. Sullivan asked if the commission was required to hold public hearings when they were considering a recommendation to change city code. In response, Bickling confirmed that public hearings were required. Other Reports and Announcements — Notte Presentations —None PUBLIC HEARINGS Resolutions Requiring Public Hearing Resolution 2022-016, Granting A Conditional Use Permit To Robert And Susan White To Install A Radio Antenna, On Lot 14A, Block 17, Seward Original Townsite White Replat; Located At 313 Sixth Ave; Within An Auto Commercial (AC) Zoning District. Motion to Approve (HornsethNerhey) Approve Resolution 2022-016 City Planner Courtney Bringhurst recited the information in the agenda statement, reviewed the conditions being proposed, and recommended approval. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Carol Griswold, inside the city, said this resolution focused on the type of antenna and tower being used rather than the purpose of the radio broadcast. It confused an amateur radio operation (i.e., ham radio) with a radio station because the tower was the same design and structure that might be used for both. Griswold had been informed by a local ham radio operator that FCC regulations expressly forbade ham radio operators from broadcasting to the general public. She said a radio station, whether commercial or non-commercial, operated under different FCC rules. She believed the stated use as a Christian radio station was more similar to a regular radio station and should follow SCC 15.10.250. Griswold was concerned that the packet did not mention that the proposed antenna would be located at a historic property within the historic district; she wondered what the visual impact of having a 50 foot tower on a historic house in the historic district would be. She thought this application was for a commercial radio operation masquerading as an amateur radio operation; she suggested this application should be denied and the applicant should reapply for a communication tower under SCC 15,10.250. Cheryl Seese, inside the city, concurred with the prior citizen's comments and said she believed this would obstruct the view for neighboring residences. She wondered if the applicants could set up this antenna at their house outside of town; she was concerned that this location was a historic house within the historic district. No one else appeared and the public hearing was closed. OIR City ofSewai•d, Alaska Planning & Zoning Cannnission Meeting A ugust 2, 2022 Minutes Volume 7, Page 548 Sullivan asked the applicant to speak. Robert White, outside the city, said the tower was non-commercial and the intended use was to broadcast for a non-profit Christian radio station. He said he would be compensated for the use of electricity, and he received no other monetary benefit. He said this was a voluntary service to the community. He wished to use this property downtown rather than his property outside of town because he was concerned that Lowell Point residents would not receive the broadcast if the antenna was outside of town to the north. White said the tower would be 12 inches at the base and he did not believe it would need to go to 50 feet high; he confirmed that guy wires would not be used for the antenna. Sullivan believed that an antenna was permissible per city code based on the zoning for this property, but she wondered if another location could potentially be used, like the north parking lot at city hall. In response, White said that location may present some difficulties. Sullivan asked what constituted a non-commercial radio station. White said non-profit, non-commercial. Sullivan said a business could be commercial and non-profit. White said Turquoise Broadcasting in .Arizona would be responsible for the broadcasting. Sullivan asked to include the following items on the CUP: 1) if there was bleed -over or interference between transmissions, it must be contained immediately; 2) if there was prolonged non-use or some dereliction of the tower, perhaps for a six month period, the tower should be removed; 3) no guy wires would be used; and, 4) full compliance with all FCC regulations at all times. White said he didn't know how long the FCC application process would take, but he wished to install the foundation for the tower before the ground froze. Motion Passed Yes: Hornseth, Staggs, Sullivan No: Verhey City Clerk's Note: Seward City Cade 2.30.220 (b) states, "The affirmative votes of at least a majority of those Commissioners present shall be required for official action unless a larger majority is required by law. " Resolution 2022-017, Recommending City Council Approval Of The Land Use Amendment To Rezone Lots 21-23, Block 10, Original Townsite Of Seward Laubner Addition, From An Urban Residential (UR) Zoning District To Auto Commercial (AC) Zoning District. Motion to Approve (Verhey/Hornseth) Approve Resolution 2022-017 Bringhurst recited the information in the agenda statement, reviewed the conditions being proposed, and recommended approval. 0z: City of Seward, Alaska Planning & Zoning Commission Meeting August 2, 2022 Minutes Volume 7, Page 549 Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Carol Griswold, inside the city, said in April 2019, P&Z approved a CUP to allow a parking lot on these lots to help reduce congestion on adjacent residential streets. Many neighbors turned out to support that CUP. She was concerned that if the parking lot was now going to be used for a different purl tose. the parking congestion that existed in 2019 would reappear Griswold believed this rezone was not based on public necessity, but rather private benefit. Ryan Fisher, outside the city, said the business was not required to provide parking, per city code. Early on, when Exit Glacier Guides first moved into the location, there had been only two complaints; both issues had been resolved, and there had been no further issues. He wished to repurpose the property to create long-term commercial housing. No one else appeared and the public hearing was closed. Sullivan asked Fisher what would be done with the property if it was not rezoned. Fisher said he wasn't sure, but would find new uses for the property; they did not plan to build a single family home. Fisher said he didn't need to build a bunkhouse because they already provided employee housing. Fisher said he and his business partner were both invested in the community and lived here year round; everything they did was to improve peoples' experience of being in Seward. Motion Passed Unanimous Resolution 2022-018, Rescinding Resolution 2021-014 And Recommending City Council And Kenai Peninsula Borouft gh Approval Of The Preliminary Right Of Way (ROW) Acquisition Plat For The Seward Airport Located In T 1N & 1S R 1W Sec 34, 35, 2 & 3, Seward Meridian SW, That Point Known As The Seward Airport, Physical Location, 2310 Airport Road; Acquiring And Replatting Various Legals Located In Sec 34, 35, 2 & 3, Seward Meridian SW. Motion to Approve (HornsethNerhey) Approve Resolution 2022-018 Bringhurst recited the information in the agenda statement, reviewed the conditions being proposed, and recommended approval. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Carol Griswold, inside the city, thought that city council had already approved P&Z Resolution 2021-014, although the packet stated that they hadn't. In addition, she was concerned that the maps in the packet did not accurately reflect the acquisition of additional land in June that resulted in expanding Parcel #4. No one else appeared and the public hearing was closed. 327 City of Seward, Alaska Planning & Zoning Commission Meeting August 2, 2022 Minutes Yolunse 7, Page 550 Bringhurst said the previous resolution had not gone to city council. Sullivan allowed a citizen to speak. Cheryl Seese wanted to ensure the citizens of Seward continued to have access to the tidelands property. Hornseth wished to have an updated map. Bringhurst said the updated map would be furnished with the final replat. Sullivan asked what happened in the process between preliminary and final replat. Bringhurst said if P&Z approved this resolution, it would go to city council and the borough; following those approvals, the plat would be sent back to the applicant to make all the updates, and the applicant would furnish all the final documentation to the borough for review and approval. Motion to Amend (StaggsNerhey) Amend Resolution 2022-018 in Section 1 by adding "Rescinding Resolution 2021- 014," at the very beginning of the paragraph. Motion to Amend Passed Unanimous Main Motion Passed Unanimous UNFINISHED BUSINESS —None NEW BUSINESS Other New Business Items Set work session topic for August 16, 2022. Bickling stated August 16, 2022 would be Election Day; he reminded the commission that the work session would be rescheduled to August 23`d with the topic of Municipal Land Plan. Sullivan requested to also include the topic of continuing work on Short Term Rentals. INFORMATIONAL ITEMS AND REPORTS Reminder: ,,i"git t ' 6, ? August 23, 2022 Planning and Zoning work session at b: 00 p. m. Reminder: September 6, 2022 Planning and Zoning regular meeting at 7: 00 p. m. CITIZEN COMMENTS — None COMMISSION AND ADMINISTRATION COMMENTS Bringhurst thanked the commissioners for attending the meeting tonight. 328 City of Seward, Alaska Planning & Zoning Commission Meeting must 2, 2022 Minutes Volume 7, Page 551 Sullivan thanked the community development staff for handling all the commission's questions. ADJOURNMENT The meeting was adjourned at 8:09 p.m. Brenda Ballou, M C Clare Sullivan City Clerk Q Chair �e%lkIts IN v E A,, 0 dt SEAS-1 o . r • r � i r � ik�i OFia* �. 329 1 J �1 City of Seward, Alaska Historic Preservation Commission Mec tin- .11intacs May 12, 2022 b'Ohone 3. Pauc 34- CALL TO ORDER The May 12, 2022 regular meeting of the Historic Preservation Commission was called to order at 7:44 p.m. by Chair Cheryl Seese. OPENING CEREMONY The commission led the Pledge of Allegiance to the flag. ROLL CALL There were present: Cheryl Seese presiding and Sue Ward Tanguy r :bbr-eeht Dona Walker Art LeMaster comprising a quorum of the Commission; and Elayna Yanusz, Museum Curator Brenda Ballou, City Clerk Excused — Libbrecht Absent — Benoit Vacant — One CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING — None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Ward/LeMaster) Motion Passed Approval of Agenda and Consent Agenda Unanimous The clerk read the following approved consent agenda items: Approve the April 14, 2022 Regular Meeting Minutes. Approve the April 21, 2022 Special Meeting Minutes. SPECIAL ORDERS, PRESENTATIONS AND REPORTS City Administration Report — None 330 City of Seward, Alaska Historic Preservation Commission Meeting Minutes May 12, 2022 Volume 3, Page 348 Chair Report. Chair Seese stated she delivered the commission's first quarter report to council. She had attended the council meeting when they discussed the status of the Jesse Lee Home property; the commission was requested to provide input on ideas for the Jesse Lee Home Memorial, specifically there was a request for HP to provide a mock-up of a historic narrative sign. Seese stated that commissioners should attend at least one type of historic preservation training each year in order to stay in good standing with the State Historic Preservation Office (SHPO). She reported that the owner of the Train Wreck property may be interested in applying to have the property added to the Seward register of historic places; Seese requested the property owner gather the documentation about the history of the property. She reported that the city council was not interested in pursuing a new zoning district downtown as HP had hoped; instead, she suggested the commission might consider creating a subsection to the already -approved Downtown Historic District wherein there could be constraints placed upon the properties to preserve the historical integrity, like along Fourth Avenue between Adams Street and Washington Street. She stated that Commissioner Benoit was underway updating the historic property inventory list, which would have to be expanded to include properties built 1971 since that was 50 years ago. Seese said for the next CLG grant the commission received that led to Phase 2 of the walking tour signs, she wanted to see attention paid to the original peoples of Seward. Other Reports and Announcements Report on Historic Preservation Facebook Page. Seese referred the commission to the packet for Facebook activity information. Update on the Jesse Lee Home Memorial Park Project. Seese stated the city was dealing with the property remediation. Certified Local Government (CLG) Report. Seese said all the signs had been installed, council had approved the purchase and appropriated funds, and the only thing left to do was to order additional walking tour maps. Seese said she had receipts for flowers and supplies for Hoben Park that she wished to be reimbursed for. The commission scheduled a special meeting on Monday, May 12, 2022 at 3:30 p.m. to consider a resolution for the commission to purchase additional walking tour maps, as well as to approve expenses for the Hoben Park flower urns. Seese said she would submit a draft resolution for the walking tour maps, as well as the agenda statement for reimbursement of Hoben Park supplies, to the city clerk by end of day tomorrow. UNFINISHED BUSINESS — None NEW BUSINESS Other New Business Items 1 kx� City of Seward, Alaska Historic Preservation Commission Meeting Minutes May 12, 2022 Volume 3, Page 349 Review the nominations for the 2022 Historic Preservation Award, discuss criteria for awards, and Vote on recipient(s). Nominees are: 1) Mary Tougas 2) Mary Ann Benoit 3) Doug Capra 4) Cheryl Seese, Tanguy Libbrecht, Sue Ward, Mary Ann Benoit. Clerk's Note: Two additional nominations were received before the deadline and were provided as laydowns. Nominations were for: 1) the Historic Preservation Commission, and 2) Gary & Cheryl Seese. Seese reminded the commission about the nomination submission for Mary Tougas which was carried forward from the last meeting. She said she nominated Tougas for her work preserving documents and photographs. Ward asked if each nomination could be reviewed. In response, Seese said that she didn't want to give awards to people who had already received one previously. Seese went to say that Doug Capra received an award in 2012, and Dot Bardarson had nominated him for this year. Ward said Capra had contributed greatly to the walking tour project by reviewing all the sign information. The next nomination was for Mary Ann Benoit, which was submitted by Elizabeth Dunn. Seese said she thought this nomination was in relation to the next nomination that was submitted by Doreen Lorenz and which was for herself, Commissioner Libbrecht, Vice Chair Ward, and Commissioner Benoit. She said, rather than having one commissioner recognized, she thought it should be all commissioners or no commissioners, in her opinion. Ward disagreed and said she was on the commission and had put in a lot of time, but felt that Commissioner Benoit had put in an extraordinary amount of time and should be recognized for that. Ward thought Benoit had gone above and beyond to pull off the walking tour project; Seese disagreed and said "we" pulled off that project. Seese didn't think the efforts of the commissioners should be quantified by the number of hours someone put into the project because it was a joint effort that accomplished this. Ward said she supported the nomination for Cheryl and Gary Seese that was submitted by his Darling, because Chair Seese had put in tons of hours outside of the meetings, and her husband was her support. Walker said Seese deserved it; Ward concurred. Seese said the last nomination was for the Seward Historic Preservation Commission of 2021-2022, submitted by Iris Darling. She said, while Commissioners LeMaster and Walker were very valuable, 2022 was not even half over yet. Walker thought it should be the four commissioners who worked on the project. Ward had a hard time voting for herself. Seese said at the last meeting, the commissioners had declined the nominations because they had been submitted by fellow commissioners, but this time the nominations were submitted by members of the public. Seese thought that made the nominations acceptable. Motion (Seese/Walker) Award 2022 Historic Preservation Awards to: Doug Capra, Mary Tougas, HP WY, City of Seward, Alaska Historic Preservation Commission Meeting Minutes May 12, 2022 Volume 3, Page 350 Commissioners Cheryl Seese, Sue Ward, Tanguy Libbrecht, and Mary Ann Benoit, and Cheryl and Gary Seese. LeMaster wondered how many awards were customary to bestow. Seese said there was no set number. Motion Passed Unanimous HP Agenda and Discussion Rules. Seese directed the commission's attention to page 46 of the packet for a memo from the city manager which outlined the role of the commission and their administrative contact. Seese said she wanted the entire commission to have this information. Discuss and possibly vote regarding the Jesse Lee Memorial and possible CLG grant application. The commission did not discuss this item. Duties of the Chair. Seese said she included a write up in the packet of her notes about being the chair, in case the next chair found it useful. INFORMATIONAL ITEMS AND REPORTS 2022 Historic Preservation Meeting & Work Session Schedule CITIZEN COMMENTS — None COMMISSION AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Ward said, with Seese leaving the commission, she did not want it to be assumed that she would be stepping into the role of chair, and so she intended to discontinue her role as vice chair going forward. She suggested the commission take a hiatus from June through August, and resume meeting in September. She also wished to take some time to recruit new members for the commission. Seese thought taking a hiatus was a great idea; it would provide everyone with a break to rest, and to recruit. LeMaster said taking a break made a lot of sense to him. He reminded everyone about the Board & Commission training on Saturday at the library. 333 City of Seward, Alaska Historic Preservation Commission Meeting Minutes May 12, 2022 Volume 3, Page 351 ADJOURNMENT The meeting was adjourned at 8:29 p.m. renda Ballow, MC City Clerk 01,1121 .`��`i OF skW!4 (city ,��1�2'0RPpp_�'9,Q•.: F * ": OF Al_ � � 1 r� Cheryl See Chair 334 1 1 City of Seward, Alaska Historic Preservation Commission Special Meeting Minutes May 16, 2022 Volume 3, Page 352 CALL TO ORDER The May 16, 2022 special meeting of the Historic Preservation Commission was called to order at 3:30 p.m. by Chair Cheryl Seese. OPENING CEREMONY Cheryl Seese led the Pledge of Allegiance to the flag. ROLL CALL There were present: Cheryl Seese presiding and Sue Ward eht Mary Ann Benei Dona Walker Art LeMaster comprising a quorum of the Commission; and Kris Peck, Deputy City Clerk Excused — Benoit Absent — Libbrecht Vacant — One CITIZEN COMMENTS ON ANY SUBJECT EXCEPT'THOSE ITEMS SCHEDULED FOR PUBLIC HEARING — None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Ward/LeMaster) Motion Passed Approval of Agenda and Consent Agenda Unanimous The clerk read the following approved consent agenda items: Resolution 2022-004, A Resolution Of The Historic Preservation Commission Of The City Of Seward, Alaska, For The Purpose Of Expending The Remaining CLG 2021-20005 Donor Funds Of $7,200 For The Purchase Of Additional Seward Historic Walking Tour Maps. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Other Reports and Announcements — None kx�7 Citv of Sei-card, Alaska Historic Preservation Commission Spc vial ,lle eting Minutes May 16, 2022 1'01umc 3, Page 353 NEW BUSINESS Other New Business Items — None INFORMATIONAL ITEMS AND REPORTS — None CITIZEN COMMENTS — None COMMISSION AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS LeMaster offered to help transport maps from Anchorage to Seward. Seese responded that the quote included shipping. Seese announced this was her last Historic Preservation meeting as her term was ending May, 2022. She thanked the commissioners for all their hard work. ADJOURNMENT The meeting was adjourned at 3:3 m. Kris Peck Deputy City Clerk (City Seal) ,�,�^t .q '• 0�r's�0': " SEAL Jf,'.' IyO'1"1 Cheryl Seese 6L -4-2 Chair 1 1 1 W-i Memorandum Date: November 14, 2022 To: City Council Through: Clare Sullivan, Planning and Zoning Commission Chair From: Jason Bickling, Community Development Director RE: Planning and Zoning Quarterly Report During the months of May through October 2022, the Planning and Zoning Commission had 14 scheduled meetings. The June 28t" work session was canceled due to lack of a quorum. The July 5t" regular meeting was canceled due to lack of a quorum. The September 6t" regular meeting was rescheduled as a work session due to lack of agenda items requiring action. The September 20t" work session was canceled due to lack of a quorum and rescheduled to September 27t" One new Commissioner was elected by the Council during this second quarter, Sean Ulman. The vacant seats in Planning and Zoning Commission have now all been filled. Four (4) preliminary replats were reviewed, three were approved and one was failed. Five (5) Conditional Use permits were reviewed and approved. Three (3) Rezone application was reviewed, two were approved and one was failed. Two (2) code amendment recommendations were reviewed and approved. One community plan update recommendation was reviewed and approved. Listed below is a summary of the Resolutions that were failed at the Planning and Zoning meetings. Resolution 2022-009: Proposed preliminary replat of 911 Hemlock Ave, creating Hemlock Subdivision, Lots 1-40 and Tract A. Resolution 2022-010: Proposed rezone of Hemlock Subdivision, Lots 1-4 from Institutional (Ins) Zoning District to Single -Family Residential (R1) Zoning District. 337 Listed below is a summary of the Resolutions that were reviewed and a proveaf at the Planning and Zoning meetings. Resolution 2022-011: Granting a Conditional Use Permit to Uncle Fravis LLC to operate the activities of a social club at 417 Fifth Ave. Resolution 2022-012: Recommending City Council amend a portion of Seward City Code Title 15 regarding development requirements (minimum lot square footage) for multi -family dwellings. Resolution 2022-013: Granting a Conditional Use Permit to Saltwater Safari Properties LLC to construct a 9-plex studio apartment and crew housing at 809 Third Ave. Resolution 2022-014: Granting a Conditional Use Permit to Dwayne and Kari Atwood to construct a single-family dwelling at 305 Third Ave. Resolution 2022-015: Number not used (Resolution reassigned to 2022-024) Resolution 2022-016: Granting a Conditional Use Permit to Robert White to install a radio antenna at 313 Sixth Ave. Resolution 2022-017: Recommending City Council rezone proposed 1104 & 1100 Second Ave from Urban Residential (UR) Zoning District to Auto Commercial (AC) Zoning District. Resolutions 2022-018: Preliminary acquisition plat for the Seward Airport. Resolutions 2022-019: Preliminary replat of 2109 Unimak Circle, creating Gateway Subdivision 2022 Lindquist Addition, Lots 14-18, Block 8. Resolutions 2022-020: Granting a Conditional Use Permit to Phil Zimmerman to construct a tri- plex at 2007 Dunham Drive. Resolutions 2022-021: Preliminary replat of 911 Hemlock Ave, creating Hemlock Subdivision, Tracts A and B (Forest Acres Campground — Tract A / Seward Community Bike Park — Tract B). Resolutions 2022-022: Recommending City Council rezone proposed Tract B, Hemlock Subdivision, from Institutional (Ins) Zoning District to Park (P) Zoning District (Seward Community Bike Park). Resolutions 2022-023: Recommending City Council amend portions of Seward City Code Title 15 regarding definitions for Lodging and regulations for short-term rentals. Resolutions 2022-024: Recommending City Council approve the Municipal Lands Inventory and Management Plan 2022 Update. 338 Work Sessions: On May 17, 2022, the Planning and Zoning Commission held a work session to discuss regulation issues and solutions surrounding Short Term Rentals. On June 21, 2022, the Planning and Zoning Commission held a work session to continue discussions on regulation issues and solutions surrounding Short Term Rentals. On July 19, 2022, the Planning and Zoning Commission held a work session to review Short-term rental regulation draft concepts and to review the Municipal Land Inventory and Management Plan. On August 23, 2022, the Planning and Zoning Commission held a work session to continue review of the Municipal Land Inventory and Management Plan. On September 6, 2022, the Planning and Zoning Commission held a work session to continue review of the Municipal Land Inventory and Management Plan. On September 27, 2022, the Planning and Zoning Commission held a work session to review Short-term rental regulation draft concepts. On October 17, 2022, the Planning and Zoning Commission held a Joint Work Session with the Seward Bear Creek Flood Service Area Board to review proposed Floodplain ordinance language to be adopted into Seward City Code. WR City of Seward 3rd Quarter Financials September 30, 2022 [K16, City of Seward General Fund Budget -to -Actual Revenue/Expense Report by Fund For September 30,2022 Variance % of Y-T-D Annual Over/(Under) Annual Actual Budget Budget Budget Account Line Items Revenues 4000 Tax Revenue - Sales 3,844,606.93 6,000,000.00 (2,155,393.07) 64% 4010 Tax Revenue - Real Property 736,946.02 1,250,000.00 (513,053.98) 59% 4011 Tax Revenue - Personal Property 254,388.26 450,000.00 (195,611.74) 57% 4012 Tax Revenue - Motor vehicle 13,035.23 23,500.00 (10,464.77) 55% 4020 Hotel/Motel Room Tax 320,898.32 675,000.00 (354,101.68) 48% 4030 Payments in Lieu of Tax 143,129.60 130,000.00 13,129.60 110% 4031 Contra Payments in Lieu of Tax (13,526.30) - (13,526.30) 0% 4040 Penalties and Interest on Taxes 3,121.63 3,500.00 (378.37) 89% 4100 Building Permits 71,942.14 65,100.00 6,842.14 111% 4101 Permits - Taxi 1,718.06 1,100.00 618.06 156% 4102 DMV - Drivers License 12,117.50 15,000.00 (2,882.50) 81% 4103 DMV - Motor Vehicles 35,044.80 60,000.00 (24,955.20) 58% 4104 Animal Control Licenses 85.00 175.00 (90.00) 49% 4105 Business License 21,630.00 22,000.00 (370.00) 98% 4106 License and Permits - Misc 7,318.88 3,150.00 4,168.88 232% 4107 Inspection Fees - 1,650.00 (1,650.00) 0% 4202 Jail Contract 184,476.00 368,952.00 (184,476.00) 50% 4203 Dispatch Contract w/State of AK 18,000.00 36,000.00 (18,000.00) 50% 4204 KPB 911 Dispatch 26,400.00 52,800.00 (26,400.00) 50% 4206 Alaska Raw Fish Tax 5,953.78 400,000.00 (394,046.22) 1% 4207 Fisheries Resource Landing Tax 1,289.34 2,750.00 (1,460.66) 47% 4251 Grant Revenue - Federal Grants 386,916.95 1,200,000.00 (813,083.05) 32% 4252 Grant Revenue - State Grants 7,000.00 11,500.00 (4,500.00) 61% 4253 Grant Revenue - Misc Grants 14,636.01 8,410.00 6,226.01 174% 4300 Admin. Exp. - Jail 86,090.99 114,900.00 (28,809.01) 75% 4301 Admin Exp.- Harbor 338,616.00 382,117.00 (43,501.00) 89% 4302 Admin. Exp. - SMIC 111,531.74 101,993.00 9,538.74 109% 4303 Admin. Exp.- Parking Fund 9,018.76 12,025.00 (3,006.24) 75% 4304 Admin. Exp. - Electric 754,209.00 1,005,612.00 (251,403.00) 75% 4305 Admin. Exp. - Water 208,065.01 277,420.00 (69,354.99) 75% 4306 Admin. Exp. - Sewer 127,068.75 169,417.00 (42,348.25) 75% 4307 Copying Fees 3,381.99 5,750.00 (2,368.01) 59% 4308 Sales Tax Credit 2,000.00 4,000.00 (2,000.00) 50% 4309 Zoning Fees 3,641.63 3,250.00 391.63 112% 4313 Comm Dev Printing Fees 340.00 - 340.00 0% 4320 Misc Dog Fees 165.00 550.00 (385.00) 30% 4322 Miscellaneous Dispatching 7,500.01 10,000.00 (2,499.99) 75% 4323 Miscellaneous Police Fees 4331 Shop Work Orders 4340 P&R: Public Use Fees 4341 P&R: Punchard Fees 4342 P&R: Class Registrations 4343 P&R: Facility Rental 4345 P&R: Special Events 4347 P&R: Shower Fees 4349 P&R: Pavilion Fees 4350 P&R: Camping Fees 4351 P&R: Camping w/Utilities 4356 P&R: Cemetery Plot Fees 4357 P&R: Memorial Bench Fees 4358 P&R: Camping Reservation Cancellation Fees 4370 Library Service Revenue 4371 Library Circulation Revenue 4373 Museum Admissions 4380 Land Rents & Leases 4382 Jail Facility Rental 4383 Municipal Building Rent 4400 Fines and Bails 4500 GF Interest on Investments 4501 GF Penalties & Interest 4611 Gravel Sales 4620 Franchise Fee - Refuse 4630 City Clerk Fees 4639 Misc Service Fees 5899 Miscellaneous Revenue Total Revenues Expenditures Personnel Costs: 6000 Salaries 6001 Overtime 6002 Standby Time 6003 Legislative Stipends 6100 Medicare 6101 Unemployment Insurance 6102 Workers' Compensation 6201 Retirement Benefits 6202 Health Insurance 6209 PERS DC Forfeitures Total Personnel Costs: Variance % of Y-T-D Annual Over/(Under) Annual Actual Budget Budcliet Budget 1,978.00 2,500.00 (522.00) 79% 868.00 1,775.00 (907.00) 49% - 100.00 (100.00) 0% 56.07 - 56.07 0% 315.00 - 315.00 0% 8,881.11 - 8,881.11 0% 12,615.93 19,750.00 (7,134.07) 64% - 19,500.00 (19,500.00) 0% 7,948.36 4,750.00 3,198.36 167% 793,017.97 1,000,000.00 (206,982.03) 79% 588,028.98 450,000.00 138,028.98 131% - 400.00 (400.00) 0% - 3,000.00 (3,000.00) 0% 65,465.67 50,000.00 15,465.67 131% 13,239.55 12,200.00 1,039.55 109% 142.75 3,325.00 (3,182.25) 4% 12, 690.00 11, 075.00 1,615.00 115 % 40,350.00 42,500.00 (2,150.00) 95% 22,500.00 30,000.00 (7,500.00) 75% - 52,200.00 (52,200.00) 0% 20,481.80 15,700.00 4,781.80 130% (269,345.21) - (269,345.21) 0% 999.27 1,500.00 (500.73) 67% 60,213.88 225,000.00 (164,786.12) 27% 22,646.09 22,000.00 646.09 103% 60.00 - 60.00 0% 468.35 - 468.35 0% 30.00 - 30.00 0% 9,152,408.60 14,834,896.00 (5,682,487.40) 62% 3,362,022.14 5,094,920.20 (1,732,898.06) 66% 209,777.66 229,345.49 (19,567.83) 91% 11,730.18 8,863.21 2,866.97 132% 24,211.81 44,400.00 (20,188.19) 55% 64,522.19 101,355.52 (36,833.33) 64% - 1,000.00 (1,000.00) 0% 103,148.48 229,905.75 (126,757.27) 45% 731,309.92 1,108,796.89 (377,486.97) 66% 1,381,052.14 2,211,810.47 (830,758.33) 62% (20,998.14) - (20,998.14) 0% 5,866,776.38 9,030,397.53 (3,163,621.15) 65% 0,VA Non -Personnel Costs: 7000 Audit 7001 Communications 7002 Postage and Freight 7003 Banking & Credit Card Fees 7004 Insurance 7006 Legal 7009 Contracted Services 7010 Engineering 7011 Testing 7012 Other Special Services 7013 State Lobbying Fees 7014 Federal Lobbying Fees 7015 Utilities 7016 Heating Fuel 7017 Rents & Leases 7018 Towing Fees 7021 Legal - Clerk 7200 Library Materials - Other 7201 Library Books 7202 Library Periodicals 7203 Library Standing Orders 7204 Library Non -Print 7205 Library Electronic Materials 7208 Museum Collection Supplies 7210 Vehicle Supplies 7211 Gas & Lube 7212 Uniform Allowance 7213 Safety Equipment 7214 Janitorial Supplies 7215 Operating Supplies 7216 Maintenance & Repair 7217 Small Tools & Equipment 7218 Inmate Meals 7300 Advertising 7301 Subscriptions & Dues 7302 Travel & Subsistence 7303 Education & Training 7304 Equipment Rent 7307 GF Administrative Fee 7309 Police Academy Training 7310 Recording Fees Variance % of Y-T-D Annual Over/(Under) Annual Actual Budget Budciet Budget 98,885.00 120,175.00 (21,290.00) 82% 109,471.65 130,750.00 (21,278.35) 84% 23,071.43 35,675.00 (12,603.57) 65% 96,163.92 108,060.00 (11,896.08) 89% 173,730.66 293,778.00 (120,047.34) 59% 80,836.50 123,000.00 (42,163.50) 66% 2,393,320.60 2,888,740.78 (495,420.18) 83% 378.84 65,000.00 (64,621.16) 1% 2,026.46 4,625.00 (2,598.54) 44% 25,877.14 33,775.00 (7,897.86) 77% 64,125.00 85,500.00 (21,375.00) 75% 69,003.00 92,000.00 (22,997.00) 75% 467,573.06 627,300.00 (159,726.94) 75% 74,982.17 81,190.00 (6,207.83) 92% 38,950.00 88,750.00 (49,800.00) 44% - 5,000.00 (5,000.00) 0% - 5,000.00 (5,000.00) 0% 39.26 - 39.26 0% 6,269.72 10,150.00 (3,880.28) 62% 1,798.58 2,250.00 (451.42) 80% 41.83 4,000.00 (3,958.17) 1% 194.81 5,500.00 (5,305.19) 4% 4,148.36 4,500.00 (351.64) 92% - 1,200.00 (1,200.00) 0% 10,675.48 18,125.00 (7,449.52) 59% 89,942.70 144,871.25 (54,928.55) 62% 9,939.12 20,250.00 (10,310.88) 49% 55,032.62 75,950.00 (20,917.38) 72% 18,920.44 16,200.00 2,720.44 117% 243,882.82 415,626.10 (171,743.28) 59% 130,062.78 286,325.00 (156,262.22) 45% 134,360.90 186,417.00 (52,056.10) 72% 11,275.60 9,000.00 2,275.60 125% 33,106.73 47,175.00 (14,068.27) 70% 54,834.20 90,050.00 (35,215.80) 61% 84,551.26 142,050.00 (57,498.74) 60% 30,528.05 81,350.00 (50,821.95) 38% 3,032.40 17,050.00 (14,017.60) 18% 86,090.99 114,788.00 (28,697.01) 75% 13,637.92 26,000.00 (12,362.08) 52% 242.00 - 242.00 0% 343 Variance % of Y-T-D Annual Over/(Under) Annual Actual Budget Budget Budget 7800 Sister City Program - 6,250.00 (6,250.00) 0% 7801 Contributions to Chamber 108,717.00 108,717.00 - 100% 7802 Contributions to Senior Citizens 80,000.00 80,000.00 - 100% 7804 Elections 440.77 35,000.00 (34,559.23) 1% 7805 Promotion 5,916.00 9,000.00 (3,084.00) 66% 7806 Volunteer Fireman Stipend 39,300.00 47,600.00 (8,300.00) 83% 7807 Contingency - 5,000.00 (5,000.00) 0% 7810 Miscellaneous Expense 2,870.00 7,750.00 (4,880.00) 37% 7813 Contributions to Small Business Position 25,000.00 25,000.00 - 100% 8001 Unrealized Loss on Investments 222,710.50 - 222,710.50 0% 8012 Debt Service Interest Expense 99,678.13 242,733.00 (143,054.87) 41% 8101Infrastructure - 126,766.00 (126,766.00) 0% 8102 Buildings - 60,000.00 (60,000.00) 0% 8103 Capital Equipment 122,662.70 251,998.65 (129,335.95) 49% 8104 Motor Pool Rent 236,137.47 314,850.00 (78,712.53) 75% 8300 Debt Service Principal 115,000.00 215,000.00 (100,000.00) 53% Total Non -Personnel Costs: 5,799,436.57 8,042,810.78 (2,243,374.21) 72% Total Expenditures 11,666,212.95 17,073,208.31 (5,406,995.36) 68% Excess Revenue Over (Under) Expenditures (2,513,804.35) (2,238,312.31) (275,492.04) 112% 344 Harbor Fund Budget -to -Actual Revenue/Expense Report by Fund For September 30,2022 Variance % of Y-T-D Annual Over/(Under) Annual Actual Budget Budget Budget Account Line Items Revenues 5000 Land Rents & Leases 320,695.83 401,150.00 (80,454.17) 80% 5001 Land Lease Credits 0.00 (63,247.00) 63,247.00 0% 5100 Transient Moorage 604,364.48 578,900.00 25,464.48 104% 5101 Moorage 1,178,312.21 1,166,275.00 12,037.21 101% 5102 Wharfage 35,694.21 49,000.00 (13,305.79) 73% 5103 Boat Lift Fees 94,222.95 88,700.00 5,522.95 106% 5105 Harbor Power Sales 274,356.26 379,500.00 (105,143.74) 72% 5150 Shower Fees 13,669.42 14,700.00 (1,030.58) 93% 5153 Fuel Pumping Fee 24,841.93 30,450.00 (5,608.07) 82% 5154 Waiting List Fees 3,024.00 7,575.00 (4,551.00) 40% 5155 Towing Fees 367.50 1,050.00 (682.50) 35% 5156 Pumping Boats 157.50 200.00 (42.50) 79% 5157 North Harbor Launch Fee 16,915.94 26,900.00 (9,984.06) 63% 5158 South Harbor Launch Fee 17,477.45 14,275.00 3,202.45 122% 5800 Labor & Services 1,832.96 6,425.00 (4,592.04) 29% 5890 Collection of Doubtful Accounts 0.00 600.00 (600.00) 0% 5899 Miscellaneous Revenue 2,503.16 1,600.00 903.16 156% 5901 EF Investment Interest 2,478.26 7,950.00 (5,471.74) 31% 5905 EF Penalties and Interest 6,914.67 7,950.00 (1,035.33) 87% 5940 Amortization of Contributions -in -Aid 0.00 1,054,615.00 (1,054,615.00) 0% Total Revenues 2,597,828.73 3,774,568.00 (1,176,739.27) 69% Expenditures Personnel Costs: 6000 Salaries 460,016.45 659,050.00 (199,033.55) 70% 6001Overtime 17,940.31 28,575.00 (10,634.69) 63% 6002 Standby Time 19,921.47 12,625.00 7,296.47 158% 6100 Medicare 7,902.57 11,425.00 (3,522.43) 69% 6102 Workers' Compensation 18,833.32 51,005.00 (32,171.68) 37% 6201 Retirement Benefits 101,010.44 151,175.00 (50,164.56) 67% 6202 Health Insurance 193,272.72 223,590.00 (30,317.28) 86% Total Personnel Costs: 818,897.28 1,137,445.00 (318,547.72) 72% Non -Personnel Costs: 7001 Communications 12,229.73 14,000.00 (1,770o27) 87% 7002 Postage and Freight 1,756.36 5,200.00 (3,443.64) 34% 7003 Bank and Credit Card Fees 52,330.43 70,150.00 (17,819.57) 75% Q,R Variance % of Y-T-D Annual Over/(Under) Annual Actual Budget Budget Budget 7004Insurance 86,392.83 103,057.00 (16,664.17) 84% 7006 Legal 300.00 10,000.00 (9,700.00) 3% 7009 Contracted Services 88,510.75 95,550.00 (7,039.25) 93% 7010 Engineering 0.00 5,000.00 (5,000.00) 0% 7011 Testing 407.25 1,175.00 (767.75) 35% 7015 Utilities 105,978.53 135,000.00 (29,021.47) 79% 7016 Heating Fuel 11,115.68 13,800.00 (2,684.32) 81% 7100 General Power for Resale 237,715.77 300,000.00 (62,284.23) 79% 7211 Gas & Lube 20,649.12 27,600.00 (6,950.88) 75% 7212 Uniform Allowance 102.90 500.00 (397.10) 21% 7213 Safety Equipment 4,492.54 9,900.00 (5,407.46) 45% 7214 Janitorial Supplies 6,633.61 10,025.00 (3,391.39) 66% 7215 Operating Supplies 11,250.97 21,700.00 (10,449.03) 52% 7216 Maintenance & Repair 29,867.98 47,400.00 (17,532.02) 63% 7217 Small Tools & Equipment 1,602.46 21,000.00 (19,397.54) 8% 7300 Advertising 829.84 2,700.00 (1,870.16) 31% 7301 Subscriptions & Dues 1,500.02 1,500.00 0.02 100% 7302 Travel & Subsistence 8,654.00 12,000.00 (3,346.00) 72% 7303 Education & Training 725.00 2,100.00 (1,375.00) 35% 7304 Equipment Rent 0.00 1,800.00 (1,800.00) 0% 7321 Harbor General Indirect Costs 393,010.51 524,020.00 (131,009.49) 75% 7322 Harbor Admin Indirect Costs 444,165.75 592,240.00 (148,074.25) 75% 7324 Gen Fund Indirect Costs 338,616.00 382,117.00 (43,501.00) 89% 7325 Harbor Internal Cost Allocation (934,317.72) (1,156,439.00) 222,121.28 81% 7330 P.I.L.T. 181,419.20 189,202.00 (7,782.80) 96% 7331 Reclass PI LT to Transfer -Out (181,419.20) (189,202.00) 7,782.80 96% 7808 Bad Debt Expense 0.00 9,575.00 (9,575.00) 0% 7810 Miscellaneous Expense 173.35 1,175.00 (1,001.65) 15% 7900 Depreciation Expense 0.00 1,502,358.00 (1,502,358.00) 0% 8001 Unrealized Loss on Investments 80,257.10 0.00 80,257.10 0% 8012 Debt Service Interest Expense 84,850.00 98,850.00 (14,000.00) 86% 8013 Amortize Deferred Loss on Bonds 0.00 16,176.00 (16,176.00) 0% 8101Infrastructure 76,630.00 0.00 76,630.00 0% 8103 Capital Equipment 461.99 0.00 461.99 0% 8104 Motor Pool Rent 47,999.98 64,000.00 (16,000.02) 75% 8300 Debt Service Principal 350,000.00 350,000.00 0.00 100% Total Non -Personnel Costs: 1,564,892.73 3,295,229.00 (1,730,336.27) 47% Total Expenditures 2,383,790.01 4,432,674.00 (2,048,883.99) 54% Excess Revenue Over (Under) Expenditures 214,038.72 (658,106.00) 872,144.72 -33% [K1: City of Seward SMIC Fund Budget -to -Actual Revenue/Expense Report by Fund For September 30,2022 Variance % of Y-T-D Annual Over/(Under) Annual Actual Budget Budciet Budget Account Line Items Revenues 5000 Land Rents & Leases 130,245.47 167,700.00 (37,454.53) 78% 5101 Moorage 56,455.36 46,775.00 9,680.36 121% 5102 Wharfage 10,579.16 9,550.00 1,029.16 111% 5103 Boat Lift Fees 202,353.75 215,000.00 (12,646.25) 94% 5104 Storage Fees 184,041.20 181,000.00 3,041.20 102% 5106 SMIC Power Sales 144,460.69 70,625.00 73,835.69 205% 5109 Washdown Pad Fees 12,501.37 7,400.00 5,101.37 169% 5110 Crane Fees 2,350.78 1,000.00 1,350.78 235% 5153 Fuel Pumping Fee 397.06 700.00 (302.94) 57% 5800 Labor & Services 393.75 1,800.00 (1,406.25) 22% 5802 Equipment Rental 0.00 1.00 (1.00) 0% 5901 EF Investment Interest 286.12 0.00 286.12 0% 5921 Federal Grant Funds 0.00 43,676.00 (43,676.00) 0% 5940 Amortization of Contributions -in -Aid 0.00 1,373,645.00 (1,373,645.00) 0% Total Revenues 744,064.71 2,118,872.00 35% (1,374,807.29) Expenditures Personnel Costs: 6000 Salaries 86,004.91 85,300.00 704.91 101% 6001Overtime 3,066.41 3,405.00 (338.59) 90% 6100 Medicare 1,307.86 1,310.00 (2.14) 100% 6102 Workers' Compensation 4,413.62 5,740.00 (1,326.38) 77% 6201 Retirement Benefits 19,548.17 19,325.00 223.17 101% 6202 Health Insurance 30,496.24 45,480.00 (14,983.76) 67% Total Personnel Costs: 144,837.21 160,560.00 (15,722.79) 90% Non -Personnel Costs: 7002 Postage and Freight 2,225.48 4,075.00 (1,849.52) 55% 7004Insurance 10,797.12 19,075.00 (8,277.88) 57% 7006 Legal 0.00 20,000.00 (20,000.00) 0% 7009 Contracted Services 26,424.84 38,725.00 (12,300.16) 68% 7010 Engineering 0.00 10,000.00 (10,000.00) 0% 7015 Utilities 19,430.66 35,300.00 (15,869.34) 55% 7016 Heating Fuel 1,766.12 6,900.00 (5,133.88) 26% 7100 General Power for Resale 102,363.21 70,775.00 31,588.21 145% 7211 Gas & Lube 7,525.44 16,675.00 (9,149.56) 45% 7213 Safety Equipment 0.00 1,500.00 (1,500.00) 0% 7215 Operating Supplies 451.62 2,500.00 (2,048.38) 18% 347 7216 Maintenance & Repair 7217 Small Tools & Equipment 7302 Travel & Subsistence 7321 Harbor General Indirect Costs 7322 Harbor Admin Indirect Costs 7323 SMIC General Indirect Costs 7324 Gen Fund Indirect Costs 7325 Harbor Internal Cost Allocation 7330 P.I.L.T. 7331 Reclass PILT to Transfer -Out 7808 Bad Debt Expense 7900 Depreciation Expense 8001 Unrealized Loss on Investments 8101 Infrastructure Total Non -Personnel Costs: Total Expenditures Excess Revenue Over (Under) Expenditures Variance % of Y-T-D Annual Over/(Under) Annual Actual Budget Budget Budget 34,844.24 32,225.00 2,619.24 108% 178.66 6,000.00 (5,821.34) 3% 0.00 100.00 (100.00) 0% 49,568.99 66,110.00 (16,541.01) 75% 47,572.47 63,450.00 (15,877.53) 75% 104,049.00 142,350.00 (38,301.00) 73% 111,531.74 101,993.00 9,538.74 109% (104,049.00) (139,122.00) 35,073.00 75% 53,029.70 37,772.00 15,257.70 140% (53,029.70) (37,772.00) (15,257.70) 140% 0.00 2,850.00 (2,850.00) 0% 0.00 1,650,204.00 (1,650,204.00) 0% 4,928.68 0.00 4,928.68 0% 11,600.00 43,676.00 (32,076.00) 27% 431,209.27 2,195,361.00 (1,677,351.32) 20% 576,046.48 2,355,921.00 (1,693,074.11) 24% 168,018.23 (237,049.00) 318,266.82 -71% 348 City of Seward Parking Fund Budget -to -Actual Revenue/Expense Report by Fund For September 30,2022 Variance % of Y-T-D Annual Over/(Under) Annual Actual Budget Budget Budget Account Line Items Revenues 5200 S. Harbor Lot 137,568.80 126,500.00 11,068.80 109% 5201 N. Harbor Lot 165,005.50 99,600.00 65,405.50 166% 5202 N.E. Ramp Lot 13,579.43 41,300.00 (27,720.57) 33% 5204 S. Harbor Uplands Lot 19,095.31 19,200.00 (104.69) 99% 5205 Slip Holder Parking Passes 20,233.64 26,025.00 (5,791.36) 78% 5206 Employee Passes 3,177.57 4,450.00 (1,272.43) 71% 5207 Miscellaneous Parking Fees 2,069.17 - 2,069.17 0% 5209 Company Vehicle Pass 327.10 - 327.10 0% 5210 Vehicle w/ Trailer 9,532.72 14,625.00 (5,092.28) 65% 5211 Visitor Parking Permits 4,205.62 2,650.00 1,555.62 159% 5212 Fines - Parking Tickets 934.58 3,000.00 (2,065.42) 31% 5899 Miscellaneous Revenue (50.00) - (50.00) 0% 5901 EF Investment Interest 248.70 4,000.00 (3,751.30) 6% Total Revenues 375,928.14 341,350.00 34,578.14 110% Expenditures Personnel Costs: 6000 Salaries 3,807.36 32,675.00 (28,867.64) 12% 6001Overtime - 2,000.00 (2,000.00) 0% 6100 Medicare 291.24 1,360.00 (1,068.76) 21% 6102 Workers' Compensation 17.38 3,195.00 (3,177.62) 1% 6201 Retirement Benefits 809.68 4,100.00 (3,290.32) 20% 6202 Health Insurance 1,686.40 3,100.00 (1,413.60) 54% Total Personnel Costs: 6,612.06 46,430.00 (9,550.90) 14% Non -Personnel Costs: 7001 Communications 613.76 2,000.00 (1,386.24) 31% 7002 Postage and Freight 265.00 600.00 (335.00) 44% 7003 Bank and Credit Card Fees 10,951.43 12,975.00 (2,023.57) 84% 7004Insurance 643.37 4,300.00 (3,656.63) 15% 7006 Legal - 2,000.00 (2,000.00) 0% 7009 Contracted Services 5,630.56 4,500.00 1,130.56 125% 7015 Utilities 638.73 2,000.00 (1,361.27) 32% 7210 Vehicle Supplies - 1,950.00 (1,950.00) 0% 7211 Gas & Lube - 1,466.00 (1,466.00) 0% 0,V Variance % of Y-T-D Annual Oved(Under) Annual Actual Budget Budget Budget 7212 Uniform Allowance 250.75 675.00 (424.25) 37% 7213 Safety Equipment - 350.00 (350.00) 0% 7214 Janitorial Supplies - 100.00 (100.00) 0% 7215 Operating Supplies 110,737.72 126,009.00 (15,271.28) 88% 7216 Maintenance & Repair 4,000.00 7,275.00 (3,275.00) 55% 7217 Small Tools & Equipment 2,137.50 2,150.00 (12.50) 99% 7300 Advertising - 300.00 (300.00) 0% 7301 Subscriptions & Dues 2,388.00 2,175.00 213.00 110% 7307 GF Administrative Fee 9,018.76 12,025.00 (3,006.24) 75% 7330 P.I.L.T. 30,058.09 28,810.00 1,248.09 104% 7331 Reclass PILT to Transfer -Out (30,058.09) (28,810.00) (1,248.09) 104% 7900 Depreciation Expense - 25,575.00 (25,575.00) 0% 8001 Unrealized Loss on Investments 11,185.83 - 11,185.83 0% 8104 Motor Pool Rent 9,750.01 13,000.00 (3,249.99) 75% Total Non -Personnel Costs: 168,211.42 221,425.00 (39,741.18) 76% Total Expenditures 174,823.48 267,855.00 (49,292.08) 65% Excess Revenue Over (Under) Expenditures 201,104.66 73,495.00 83,870.22 274% MIR City of Seward Electric Fund Budget -to -Actual Revenue/Expense Report by Fund For September 30,2022 Variance % of Y-T-D Annual Over/(Under) Annual Actual Budget Budget Budget Account Line Items Revenues 5300 Residential 1,592,885.65 1,810,000.00 (217,114.35) 88% 5302 Residential fuel factor 1,309,756.67 1,565,130.00 (255,373.33) 84% 5303 Residential customer charge 90,621.05 481,575.00 (390,953.95) 19% 5310 SG Service 950,441.05 1,050,000.00 (99,558.95) 91% 5312 SG fuel factor 761,485.62 830,000.00 (68,514.38) 92% 5313 SG Customer Charge 46,192.91 242,000.00 (195,807.09) 19% 5320 LG Service 1,643,821.74 1,200,000.00 443,821.74 137% 5322 LG fuel factor 1,684,205.62 1,889,500.00 (205,294.38) 89% 5323 LG customer charge 7,334.14 45,260.00 (37,925.86) 16% 5324 LG demand charge 225,861.91 1,526,645.00 (1,300,783.09) 15% 5327 RES Alternate Energy (273.91) - (273.91) 0% 5340 Spec. Contract Energy 722,686.43 - 722,686.43 0% 5342 Special Contract fuel factor 832,091.64 - 832,091.64 0% 5343 Spec. Contract customer charge 372.11 - 372.11 0% 5345 Special Contract Demand 67,174.50 - 67,174.50 0% 5350 Harbor Fund Power Sales 172,051.08 191,500.00 (19,448.92) 90% 5352 Harbor power fuel factor 163,946.69 161,900.00 2,046.69 101% 5360 Street & Yard 56,337.87 77,200.00 (20,862.13) 73% 5362 Yard Light Fuel 5,018.64 5,900.00 (881.36) 85% 5370 Industrial Service - 499,500.00 (499,500.00) 0% 5371 Industrial Customer Charge - 1,600.00 (1,600.00) 0% 5372 Industrial Demand Charge - 675,200.00 (675,200.00) 0% 5373 Industrial Fuel Factor - 905,150.00 (905,150.00) 0% 5801 Turn on Fees 14,810.34 21,800.00 (6,989.66) 68% 5802 Equipment Rental - 2,125.00 (2,125.00) 0% 5803 Joint Pole Use - 10,800.00 (10,800.00) 0% 5804 Work Order Revenue 1,853.58 30,000.00 (28,146.42) 6% 5890 Collection of Doubtful Accounts - 550.00 (550.00) 0% 5899 Miscellaneous Revenue 1,277.69 - 1,277.69 0% 5901 EF Investment Interest 13,280.80 11,150.00 2,130.80 119% 5905 EF Penalties and Interest 19,819.54 23,950.00 (4,130.46) 83% 5940 Amort. of CIA - General - 967,575.00 (967,575.00) 0% 5941 Amort.Bond Premium - 14,000.00 (14,000.00) 0% Total Revenues 10,383,053.36 14,240,010.00 (3,856,956.64) 73% Kb� Variance % of Y-T-D Annual Over/(Under) Annual Actual Budget Budget Budget Expenditures Personnel Costs: 6000 Salaries 689,497.49 966,435.00 (276,937.51) 71% 6001Overtime 100,894.69 136,075.00 (35,180.31) 74% 6002 Standby Time 107,312.30 155,000.00 (47,687.70) 69% 6100 Medicare 13,681.31 27,896.00 (14,214.69) 49% 6102 Workers' Compensation 11,055.70 50,126.00 (39,070.30) 22% 6201 Retirement Benefits 162,705.52 309,978.00 (147,272.48) 52% 6202 Health Insurance 213,982.26 319,111.00 (105,128.74) 67% 6204 Meal Allowance 3,600.71 9,378.00 (5,777.29) 38% 6205 Electric Union Benefits 1,634.85 14,248.00 (12,613.15) 11% Total Personnel Costs: 1,304,364.83 1,988,247.00 (683,882.17) 66% Non -Personnel Costs: 7001 Communications 11,801.10 25,325.00 (13,523.90) 47% 7002 Postage and Freight 16,806.54 15,150.00 1,656.54 111% 7003 Bank and Credit Card Fees 93,957.86 115,522.00 (21,564.14) 81% 7004Insurance 53,348.03 91,478.00 (38,129.97) 58% 7006 Legal 2,534.00 45,000.00 (42,466.00) 6% 7009 Contracted Services 962,491.53 1,156,654.00 (194,162.47) 83% 7010 Engineering 429,927.63 133,061.34 296,866.29 323% 7011 Testing 611.10 10,550.00 (9,938.90) 6% 7012 Other Special Services 11,067.91 15,700.00 (4,632.09) 70% 7015 Utilities 130,461.65 188,000.00 (57,538.35) 69% 7016 Heating Fuel 16,621.84 29,497.50 (12,875.66) 56% 7017 Rents & Leases 20,699.61 33,775.00 (13,075.39) 61% 7101 Chugach Power Purchases 2,400,870.84 2,449,694.00 (48,823.16) 98% 7102 Power Fuel Costs 1,826,101.27 3,600,000.00 (1,773,898.73) 51% 7103 Fuel for Generators 46,499.18 135,000.00 (88,500.82) 34% 7210 Vehicle Supplies 16,510.17 19,950.00 (3,439.83) 83% 7211 Gas & Lube 31,218.67 46,517.50 (15,298.83) 67% 7212 Uniform Allowance 7,065.89 15,000.00 (7,934.11) 47% 7213 Safety Equipment 13,640.80 9,975.00 3,665.80 137% 7215 Operating Supplies 351,451.60 243,360.00 108,091.60 144% 7216 Maintenance & Repair 4,537.21 43,425.00 (38,887.79) 10% 7217 Small Tools & Equipment 7,019.03 35,170.00 (28,150.97) 20% 7300 Advertising 4,071.93 10,120.00 (6,048.07) 40% 7301 Subscriptions & Dues 26,016.92 58,800.00 (32,783.08) 44% 7302 Travel & Subsistence 6,047.28 26,500.00 (20,452.72) 23% 7303 Education & Training 4,667.12 12,300.00 (7,632.88) 38% 7304 Equipment Rent 405.41 7,695.00 (7,289.59) 5% 7307 GF Administrative Fee 754,209.00 1,005,612.00 (251,403.00) 75% [cb'Y: Variance % of Y-T-D Annual Oved(Under) Annual Actual Budget Budget Budget 7330 P.I.L.T. 911,577.42 1,129,271.00 (217,693.58) 81% 7331 Reclass PILT to Transfer -Out (911,577.42) (1,129,271.00) 217,693.58 81% 7808 Bad Debt Expense - 32,175.00 (32,175.00) 0% 7810 Miscellaneous Expense - 3,900.00 (3,900.00) 0% 7900 Depreciation Expense - 2571,617.00 (2,571,617.00) 0% 8001 Unrealized Loss on Investments 174,939.44 - 174,939.44 0% 8010 Utility Deposit Interest 860.59 925.00 (64.41) 93% 8012 Debt Service Interest Expense 653,872.92 154,450.00 499,422.92 423% 8014 Amortization of Bond Issue Costs - 20,903.00 (20,903.00) 0% 8101Infrastructure - 20,480.00 (20,480.00) 0% 8103 Capital Equipment 51,403.12 50,000.00 1,403.12 103% 8104 Motor Pool Rent 224,834.99 299,780.00 (74,945.01) 75% 8200 Work Order Sal/Benefit credits - (73,825.00) 73,825.00 0% 8201 Work Order Operating Supply credits - (41,200.00) 41,200.00 0% 8300 Debt Service Principal 812,165.29 190,000.00 622,165.29 427% Total Non -Personnel Costs: 9,168,737.47 12,808,036.34 (3,639,298.87) 72% Total Expenditures 10,473,102.30 14,796,283.34 (4,323,181.04) 71% Excess Revenue Over (Under) Expenditures (90,048.94) (556,273.34) 466,224.40 16% 353 City of Seward Water Fund Budget -to -Actual Revenue/Expense Report by Fund For September 30,2022 Variance % of Y-T-D Annual Over/(Under) Annual Actual Budget Budget Budget Account Line Items Revenues 5300 Residential 354,996.03 535,000.00 (180,003.97) 66% 5310 SG Service 210,153.87 165,000.00 45,153.87 127% 5320 LG Service 397,399.11 225,000.00 172,399.11 177% 5330 SMIC Sales 36,842.67 54,850.00 (18,007.33) 67% 5340 Spec. Contracts 100,197.05 198,750.00 (98,552.95) 50% 5801 Turn on Fees 10,064.21 17,200.00 (7,135.79) 59% 5806 Ship Water 39,396.10 94,300.00 (54,903.90) 42% 5807 Hydrant Rentals 105,230.72 132,650.00 (27,419.28) 79% 5809 Water/Seward Misc. Service 9,923.99 - 9,923.99 0% 5899 Miscellaneous Revenue 22,138.28 - 22,138.28 0% 5901 EF Investment Interest 2,697.24 6,900.00 (4,202.76) 39% 5905 EF Penalties and Interest 526.30 500.00 26.30 105% 5921 Federal Project Funds 169,187.07 - 169,187.07 0% 5940 Amort. of CIA - General - 202,975.00 (202,975.00) 0% Total Revenues 1,458,752.64 1,633,125.00 (174,372.36) 89% Expenditures Personnel Costs: 6000 Salaries 142,267.41 222,880.00 (80,612.59) 64% 6001Overtime 12,453.28 17,400.00 (4,946.72) 72% 6002 Standby Time 10,455.48 14,275.00 (3,819.52) 73% 6100 Medicare 2,397.52 3,700.00 (1,302.48) 65% 6102 Workers' Compensation 5,277.17 11,375.00 (6,097.83) 46% 6201 Retirement Benefits 35,629.89 55,525.00 (19,895.11) 64% 6202 Health Insurance 85,568.46 122,734.00 (37,165.54) 70% Total Personnel Costs: 294,049.21 447,889.00 (153,839.79) 66% Non -Personnel Costs: 7001 Communications 6,071.22 7,700.00 (1,628.78) 79% 7002 Postage and Freight 2,576.07 2,850.00 (273.93) 90% 7003 Bank and Credit Card Fees 9,238.58 9,300.00 (61.42) 99% 7004Insurance 14,624.38 21,450.00 (6,825.62) 68% 7006 Legal - 5,000.00 (5,000.00) 0% 7009 Contracted Services 19,543.72 21,075.00 (1,531.28) 93% 7010 Engineering 4,515.00 61,061.33 (56,546.33) 7% 7011 Testing 7,534.91 10,800.00 (3,265.09) 70% 354 7015 Utilities 7016 Heating Fuel 7210 Vehicle Supplies 7211 Gas & Lube 7213 Safety Equipment 7215 Operating Supplies 7216 Maintenance & Repair 7217 Small Tools & Equipment 7300 0900 - Debt Service Advertising 7301 Subscriptions & Dues 7302 Travel & Subsistence 7303 Education & Training 7304 Equipment Rent 7307 GF Administrative Fee 7330 P.I.L.T. 7331 Reclass PILT to Transfer -Out 7808 Bad Debt Expense 7810 Miscellaneous Expense 7900 Depreciation Expense 8001 Unrealized Loss on Investments 8012 Debt Service Interest Expense 8104 Motor Pool Rent 8300 Debt Service Principal Total Non -Personnel Costs: Total Expenditures Excess Revenue Over (Under) Expenditures Variance % of Y-T-D Annual Oved(Under) Annual Actual Budget Budget Budget 188,699.68 246,225.00 (57,525.32) 77% 2,302.00 1,696.00 606.00 136 % - 300.00 (300.00) 0% 7,580.06 11,500.00 (3,919.94) 66% 587.03 1,700.00 (1,112.97) 35% 16,463.28 22,850.00 (6,386.72) 72% 11,212.60 13,575.00 (2,362.40) 83% 1,033.80 4,350.00 (3,316.20) 24% - 350.00 (350.00) 0% 2,119.36 1,200.00 919.36 177% 332.50 2,500.00 (2,167.50) 13% 1,020.00 2,500.00 (1,480.00) 41% - 1,000.00 (1,000.00) 0% 208,065.01 277,420.00 (69,354.99) 75% 123,699.58 111,300.00 12,399.58 111 % (123,699.58) (111,300.00) (12,399.58) 111% - 16,950.00 (16,950.00) 0% 84.69 1,450.00 (1,365.31) 6% - 617,925.00 (617,925.00) 0% 54,749.08 - 54,749.08 0% 15,523.36 13,404.00 2,119.36 116% 3,862.49 5,150.00 (1,287.51) 75% 141,320.69 143,441.00 (2,120.31) 99% 719,059.51 1,524,722.33 (805,662.82) 47% 1,013,108.72 1,972,611.33 (959,502.61) 51% 445,643.92 (339,486.33) 785,130.25 -131% ay. City of Seward Wastewater Fund Budget -to -Actual Revenue/Expense Report by Fund For September 30,2022 Account Line Items Revenues 5300 Residential 5310 SG Service 5320 LG Service 5330 SMIC Sales 5801 Turn on Fees 5809 Water/Seward Misc. Service 5901 EF Investment Interest 5905 EF Penalties and Interest 5921 Federal Grant Revenue 5940 Amort. of CIA - General Total Revenues Expenditures Personnel Costs: 6000 Salaries 6001 Overtime 6002 Standby Time 6100 Medicare 6102 Workers' Compensation 6201 Retirement Benefits 6202 Health Insurance Total Personnel Costs: Non -Personnel Costs: 7001 Communications 7002 Postage and Freight 7003 Bank and Credit Card Fees 7004 Insurance 7006 Legal 7009 Contracted Services 7010 Engineering 7011 Testing 7015 Utilities 7016 Heating Fuel 7017 Rents & Leases 7211 Gas & Lube Y-T-D Annual Actual Budget 473,636.57 715,000.00 283,344.79 205,000.00 181,092.41 295,000.00 20,470.85 28,700.00 8,814.06 14,100.00 3,638.60 5,400.00 2,931.02 3,475.00 874.50 850.00 169,187.08 - - 138,445.00 1,143,989.88 1,405,970.00 129,592.80 8,488.68 17,146.40 2,253.20 5,030.51 33,144.57 68,231.08 263,887.24 4,590.75 5,093.46 11,765.03 5,379.61 45, 647.80 4,515.01 22,335.00 157,678.36 8,175.93 356 162,400.00 12, 200.00 17,900.00 2,800.00 10, 525.00 41, 675.00 87,363.00 334,863.00 6,400.00 2,750.00 11,850.00 6,600.00 10, 000.00 152,600.00 61,061.33 30,350.00 195,000.00 1,667.50 100.00 11,787.50 Variance Over/(Under) Budget (241,363.43) 78,344.79 (113,907.59) (8,229.15) (5,285.94) (1,761.40) (543.98) 24.50 169,187.08 (138,445.00) (261,980.12) (32,807.20) (3,711.32) (753.60) (546.80) (5,494.49) (8,530.43) (19,131.92) (70,975.76) (1,809.25) 2,343.46 (84.97) (1,220.39) (10, 000.00 ) (106,952.20) (56,546.32) (8,015.00) (37,321.64) (1,667.50) (100.00) (3,611.57) % of Annual Budget 66% 138% 61% 71% 63% 67% 84% 103 % 0% 0% 81% 80% 70% 96% 80% 48 % 80% 78% 79% 72% 185% 99% 82% 0% 30% 7% 74% 81% 0% 0% 69% Variance % of Y-T-D Annual Oved(Under) Annual Actual Budget Budget Budget 7213 Safety Equipment 17.98 1,100.00 (1,082.02) 2% 7215 Operating Supplies 30,781.05 48,500.00 (17,718.95) 63% 7216 Maintenance & Repair 8,438.37 13,350.00 (4,911.63) 63% 7217 Small Tools & Equipment 1,690.19 2,950.00 (1,259.81) 57% 7218 Inmate Meals 169.98 - 169.98 0% 7301 Subscriptions & Dues 15,920.00 5,400.00 10,520.00 295% 7302 Travel & Subsistence - 1,500.00 (1,500.00) 0% 7303 Education & Training - 1,775.00 (1,775.00) 0% 7304 Equipment Rent - 250.00 (250.00) 0% 7307 GF Administrative Fee 127,068.75 169,425.00 (42,356.25) 75% 7330 P.I.L.T. 99,083.64 97,815.00 1,268.64 101% 7331 Reclass PILT to Transfer -Out (99,083.64) (97,815.00) (1,268.64) 101% 7808 Bad Debt Expense - 2,675.00 (2,675.00) 0% 7810 Miscellaneous Expense 152.72 500.00 (347.28) 31% 7900 Depreciation Expense - 486,490.00 (486,490.00) 0% 8001 Unrealized Loss on Investments 58,638.59 - 58,638.59 0% 8012 Debt Service Interest Expense 13,631.73 13,652.00 (20.27) 100% 8103 Capital Equipment 22,292.00 - 22,292.00 0% 8104 Motor Pool Rent 3,862.49 5,150.00 (1,287.51) 75% 8300 Debt Service Principal 59,000.71 65,870.00 (6,869.29) 90% Total Non -Personnel Costs: 606,845.51 1,308,753.33 (701,907.82) 46% Total Expenditures 870,732.75 1,643,616.33 (772,883.58) 53% Excess Revenue Over (Under) Expenditures 273,257.13 (237,646.33) 510,903.46 -115% 357 PROCLAMATION WHEREAS, since the birth of this great nation, millions of Americans have answered the call to defend our American ideals of freedom and democracy throughout the world; and WHEREAS, Veterans Day is a time to reflect on the service and sacrifice of all generations of these veterans who have given selflessly of themselves to defend our freedoms and our American way of life; and WHEREAS, the origin of Veterans Day began with the Armistice on June 28, 1918, also known as the Treaty of Versailles, which formally ended the hostilities of World War I; and WHEREAS, we gather on the eleventh hour on the eleventh day of the eleventh month, as we have every year since November 11, 1919 to express our gratitude and appreciation for the selfless service of our veterans to preserve our rights, liberties, and privileges; and WHEREAS, our men and women in uniform have been the bearers of a proud military tradition of selfless service in both peace and war that has been passed down from generation to generation for more than two centuries; and WHEREAS, our community has a fundamental obligation to acknowledge the contribution, courage and distinction in the face of adversity the unwavering commitment to America of our veterans of all wars; and WHEREAS, it is essential that we salute those who have fought to defend our nation; never forgetting the brave men and women who have made the ultimate sacrifice to ensure freedom for all people; and WHEREAS, on Veterans Day, we pay tribute to our veterans from the humble beginnings of this great nation and their families; to honor their selfless service with a renewed determination of commitment to keep the promises we have made to all who answered our country's call. NOW, THEREFORE, I, Sue McClure, Mayor of the City of Seward, Alaska do hereby proclaim November 11, 2022, as VETERANS DAY and do call upon all citizens of Seward to honor all Veterans for their enduring commitment to preserve the highest freedoms and ideals on which America was founded. Dated this 14t" day of November, 2022 SERVED THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 358 November 2022 December 2022 November 2022 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 1 2 3 6 7 8 9 10 11 12 4 5 6 7 8 910 13 14 15 16 17 18 19 11 12 13 14 15 16 17 20 21 22 23 24 25 26 18 19 20 21 22 23 24 27 28 29 30 25 26 27 28 29 30 31 SUN DAY Oct 30 31 Nov 1 2 3 4 FWAY 5 5:30pm CC Spc Mtg (2023/2024 12:00pm PACAB Mtq 6:00pm Board of Adjustment Appeal 7:00pm P&Z Meeting - Rescheduled 6 7 8 9 10 11 12 ELECTION DAY 7 am - 8 pm (Council Chambers) 6:15pm HPC Work Session (Council Chambers) 7:00pm P&Z Meeting - Library (Rescheduled 7:00pm HPC Regular Meeting (Council 13 14 15 16 17 18 19 5:30pm CC Spc Mtg (2023-2024 Budget) 6:00pm P&Z Work Session (Council s) 12:00pm PACAB Spc Mtg 7:00pm CC Mtg (Council 20 21 22 23 24 25 26 5:30pm CC Special Mtg (2023/2024 HOLIDAY HOLIDAY 27 28 29 30 Dec 1 2 3 5:30pm CC Special Mtg (2023/2024 7:00pm CC Mtg Council Calendar 1 11/4/2022 1:06 PM 359 December 2022 December2022 u SuMo TuWe Th Fr Sa SuMoT uWeWe Th Th Fr Sa 1 2 3 1 2 3 4 5 6 7 4 5 6 7 8 910 8 9 10 11 12 13 14 11 12 13 14 15 16 17 15 16 17 18 19 20 21 18 19 20 21 22 23 24 22 23 24 25 26 27 28 25 26 27 28 29 30 31 29 30 31 SUNDAY MONDAY TUESDAY WAY Nov 27 28 29 30 Dec 1 2 3 4 5 6 7 8 9 10 7:OOpm P&Z 12:OOpm PACAB 6:15pm HPC Work Session (Council 7:OOpm HPC Regular Meeting 11 12 13 14 15 16 17 7:OOpm CC Mtg (Council 12:OOpm PACAB 18 19 20 21 22 23 24 6:OOpm P&Z Work Session (Council 12:OOpm Rescheduled - PACAB WS - moved to Dec HOLIDAY 25 26 27 28 29 30 31 HOLIDAY 7:OO, CC Mtg Council Calendar 2 11/4/2022 1:06 PM 360 January 2023 February 2023 January 2023 SuMTho TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 6 7 1 2 3 4 8 9 10 11 12 13 14 5 6 7 8 9 10 11 15 16 17 18 19 20 21 12 13 14 15 16 17 18 22 23 24 25 26 27 28 19 20 21 22 23 24 25 29 30 31 26 27 28 SUN Jan 1, 23 2 3 4 5 6 WAY 7 Holiday - New Year's Day 7:00pm P&Z MeetinQ 12:00pm PACAB MtQ 8 9 10 11 12 13 14 7:00pm CC Mtg (Council 6:15pm HPC Work Session (Council 7:00pm HPC Regular Meeting 15 16 17 18 19 20 21 6:00pm P&Z Work Session (Council 12:00pm PACAB WS 22 23 24 25 26 27 28 7:00pm CC Mtg 29 30 31 Feb 1 2 3 4 Council Calendar 3 11/4/2022 1:06 PM 361