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Home My WebLink About07082024 City Council PacketSeward City Council Agenda Packet Photo by Kris Peck Monday, July 8, 2024 City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 kintual All-Amenca City 11 1111 The City of Seward, Alaska CITY COUNCIL MEETING AGENDA City Council Chambers, 410 Adams Street Please silence all cell phones and devices during the meeting Mayor Sue McClure Vice Mayor John Osenga Council Member Mike Calhoon Council Member Randy Wells Council Member Kevin Finch Council Member Robert Barnwell Council Member Julie Crites City Manager Kat Sorensen Deputy City Manager Jason Bickling City Clerk Kris Peck City Attorney Sam Severin Monday, July 8, 2024 at 7:00 p.m. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING (Those who have signed in will be given the first opportunity to speak. Time is limited to 3 minutes per speaker and 36 minutes total time for this agenda item.) 5. APPROVAL OF AGENDA AND CONSENT AGENDA (Approval of Consent Agenda passes all routine items listed under Item 7. Consent Agenda items are not considered separately unless a council member requests an item be returned to the Regular Agenda.) 6. SPECIAL ORDERS, PRESENTATIONS, AND REPORTS A. Proclamations and Awards 1) Proclamation: Seward High School 4 X 100m Relay Team State Champions Pg. 5 2) Proclamation: Seward High School 100m Dash State Champion Pg. 6 3) Proclamation: Recognition of Mike Moore's Service to the City of Seward Pg. 7 B. City Manager Report Pg. 8 C. City Clerk Report .Pg. 17 D. City Attorney Report .Pg. 19 E. Other Reports and Announcements 1) Heat Loop Update Report 2) Chamber of Commerce Report from Executive Director Sam Allen F. Presentations — None City Council Meeting Agenda July 8, 2024 1 1 P a g e 7. CONSENT AGENDA (also marked with an asterisk *) A. Minutes of Preceding Meeting 1)* Approval of the June 10, 2024 City Council Meeting Minutes Pg. 21 B. Introduction of Ordinances 1)* Introduction of Ordinance 2024-010: Amending Seward City Code Title 3 Personnel Pg. 26 C. Resolutions 1)* Resolution 2024-036: Accepting a Grant from Alaska Homeland Security for Cybersecurity in the Amount of $40,000.00 and Appropriating Funds Pg. 31 2)* Resolution 2024-037: Approving Renaming the East Portion of the North/South Right - Of -Way Currently Known as Olympia Road to Phoenix Road Located Within the Gateway Subdivision Hilltop Addition and the Gateway Subdivision Addition No. 2 Pg. 58 3)* Resolution 2024-038: Authorizing the City Manager to Enter into an Agreement with Electric Power Systems Inc. in the Amount of $115,849.60 Plus a 10% Contingency for Upgrades at the Fort Raymond Substation Pg. 71 D. 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 1) Resolution 2024-039: Approving a Lease Assignment of Lease 2000-02 from the Estate of James T. Pruitt, Successor in Interest to James T. Pruitt (Lessee) to Harbor Gateway, Inc. an Alaska Domestic Corporation Pg. 82 9. UNFINISHED BUSINESS A. Ordinances 1) Ordinance 2024-009: Amending Seward City Code 15.10.226 — Land Uses Allowed Table, Prohibiting Cluster Subdivisions in all Zoning Districts Pg. 139 [This ordinance had a public hearing on June 10, 2024 and was postponed until July 8, 2024] 10. NEW BUSINESS A. Ordinances for Introduction — None B. Resolutions City Council Meeting Agenda July 8, 2024 2 1 P a g e 1) Resolution 2024-035: Authorizing the City Manager to Appropriate Funds for Increased Premium Costs of Property, Casualty, Workers' Compensation, and Other General Insurance Paid to the Alaska Municipal League Joint Insurance Association for the Period July 1, 2024 through December 31, 2024 Pg. 152 C. Other New Business 1) Discuss Federal Land Access Program (FLAP) Grant Pg. 162 2) Discuss the flooding of properties south of Dieckgraeff Road and proposed solutions ..Pg. 166 3) Discuss proposed ordinance for amending the hours of sale for alcoholic beverages Pg. 173 11. INFORMATIONAL ITEMS AND REPORTS (No action required.) A. Boards and Commissions Minutes 1) June 6, 2024 Planning & Zoning Commission Minutes . Pg. 174 B. Other Items 1) Upcoming City Council Meetings a. Work Session on Water and Sewer Rates on Monday, July 22, 2024 at 5:30 p.m. b. Regular Meeting on Monday, July 22, 2024 at 7:00 p.m. 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 A. Receive legal advice from city attorney and provide direction on litigation strategy regarding Chugach Electric Rate Case These are matters, the immediate knowledge of which would clearly have an adverse effect upon the finances of the public entity and which by law, municipal Charter, or ordinances are required to be confidential. [Per Seward City Code 2.10.033E (1)(3)] 15. ADJOURNMENT City Council Meeting Agenda July 8, 2024 3 1 P a g e PROCLAMATION 4x100m State Champions WHEREAS, the Seward High School 4x100 meter relay team is made up of Jerick Senecal, Ronan Bickling, Gideon Schrock, and Emerson Cross (running in that order); and WHEREAS, the Seward High School 4x100 meter relay team placed second at the 2023 State Track meet and had a goal to take first during the 2024 season; and WHEREAS, during the regular season, they broke the school record of 46.00 seconds that was held since 1999 (by C. Draper, Shafer, J. Tapsfield, and Lewis) with a time of 45.89 seconds; and WHEREAS, on Saturday May 18th, at the Region III Meet in Homer, they placed first, winning the event by 1.5 seconds; and WHEREAS, on May 25th, 2024, at the ASAA State Track Meet at Dimond High School, they placed first in the state, beating their own school record with a time of 45.79. NOW, THEREFORE, I, Sue McClure, Mayor of the City of Seward, Alaska, do hereby congratulate the Seward Seahawk's men's 4x100m relay team and commend them for their Division II State Track Championship. Dated this 8th Day of July 2024 THE CITY OF SEWARD, ALASKA Sue McClure, Mayor From Left to Right: Jerick Senecal, Ronan Bickling, Gideon Schrock, and Emerson Cross 5 PROCLAMATION 100m Dash State Champion WHEREAS, Ronan Bickling is a sprinter on the Seward High School track team; and WHEREAS, because he loves the sport, he trains year-round; and WHEREAS, on Saturday May 18th, at the Region III Meet in Homer, he placed first in the 100m dash, with a personal best of 11.51 seconds as well as placing first in the 200m dash; and WHEREAS, Ronan was awarded the Region III Male Athlete of the Year; and WHEREAS, at the Brian Young Invitational, he broke the Seward High School 100m dash record of 11.40 seconds that was set in 1997 (by Forrest Johnson) with a time of 11.38 seconds; and WHEREAS, on May 25th, 2024, at the ASAA State Track Meet at Dimond High School, he placed first in the state, with a winning time of 11.54 seconds. NOW, THEREFORE, I, Sue McClure, Mayor of the City of Seward, Alaska, do hereby congratulate Ronan Bickling for his Division II State Track Championship in the 100m dash. Dated this 8th Day of July 2024 THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 6 PROCLAMATION WHEREAS, we celebrate and congratulate Michael 'Mike' Moore on his well -deserved retirement after dedicating over 37 1/2 years of outstanding service to the City of Seward, with significant contributions to the Public Works Department as the Shop Foreman; and WHEREAS, Mike Moore has devoted his career to serving the residents of Seward since 1984. He began working in the Public Works Department part time as Mechanic Operator and after eight years he became a full-time employee in 1992, he advanced taking on more responsibilities within this department becoming the Shop Foreman. His long-time presence in the shop will be missed by his colleagues and the entire City of Seward; and WHEREAS, Mike has worked long hours as the shop foreman/mechanic, handling vehicle repairs and maintenance for multiple city department's vehicles and equipment, while also working early mornings and evenings for snowstorms, flash floods, and rockslides; and WHEREAS, Mike has selflessly participated in the Seward Volunteer Ambulance Corp (SVAC) Emergency Servies for over 40 years and volunteered during all hours of the day and night. He has responded to countless SVAC callouts across the community with compassionate care for many local residents in need of an ambulance; and WHEREAS, Mike will retire from the City of Seward Public Works Department on June 28th, 2024, and is looking forward to spending more time in this beautiful community, continuing his volunteer work with SVAC Emergency Services, as well as taking some much -needed vacations. NOW, THEREFORE, I, Sue McClure, Mayor of the City of Seward, express my heartfelt appreciation to Michael "Mike" Moore for his numerous years of service, tireless dedication, and outstanding contributions to the City of Seward. I wish him all the best in his retirement. Dated this 8th day of July 2024 THE CITY OF SEWARD, ALASKA Sue McClure, Mayor CMR July 8, 2024 City Manager Report Administration Happy 4th of July! It's been a busy month since our last City Council meeting. I attended the Governmental Finance Officers Association training in Orlando, FL with Finance Director Sully. This was a great opportunity to learn new and exciting methodologies for budgeting as we approach our FY25/26 budget cycle. I also was able to participate in a panel discussion for finance officials interested in pursuing careers in city administration. Overall, it was a great conference, and I learned a lot. Back in Seward, we've been crafting our FY25/26 budget calendar and getting things lined up for those discussions. We also have received two affirmative responses from our initial request for parties interested in bidding on our power supply contract. I'll be working with Brian Hickey over the next few weeks to finalize that contract. Below are some other projects Jason and I have been working on. Library Heating System Update: We have ordered a new electric boiler element to be installed. They are also going to be installing a hydronic treatment system in the not -too -distant future as the first steps toward getting that part of the system sorted out. Legal: We are continuing to work with our attorneys on a number of different legal fronts including the CEA Rate Case and compliance lawsuits. We had a bench trial on June 19 relating to noncompliance and breaking a legal agreement. That went well — we will get the final determination for fines and fees in the coming weeks. Heat Loop Project: We are wrapping up our reporting for Phase 1 and working with the Adhoc Committee on the application for Phase 2. We recently got approval for our AEA grant extension (the original grant for this project). Jesse Lee Home: I had a conference with our engineers (KCI) and the Alaska Department of Environmental Conservation (ADEC). They have determined that we need to do further testing for residual contaminants. In the next month or so, KCI will be digging a few feet down at the contaminated sample sites to take another sample and then send those results to ADEC. Insurance: We are working with AMLJIA on re-evaluation of city property and major assets for insurance. The last time this was revised was pre-COVID and deals with replacement values. I hope everyone had a safe and happy 4th of July! - KatSorensen Finance Department Utility Billing • 2024 Water Quality Reports for the City of Seward and Seward Marine Industrial Center (SMIC) are now listed at Public Works I Seward, AK (cityofseward.us) 8 CMR July 8, 2024 • Our Finance and Util-Assist Team is dedicated to working with delinquent accounts, providing deferred payment plans, and offering information on assistance organizations. Please rest assured that we are here to support you. Feel free to contact our Utility Department with any queries or concerns Finance • Staffing issues: Unfortunately, the team has lost two members, leading to a staff shortage and a significant challenge in training new employees • Finance continues to work with the auditors performing our annual audit. Currently, we are working with Providence for the asset portion of the financials • Finance Director Jusino attended the 118 annual conference for the GFOA, representing Seward with the Alaska division and getting training on leadership, budgetary control on public safety, financial reporting, and procurement Department Order Date Vendor Description Amount CAMPGROUNDS 5/16/2024 DXP ENTERPRISES, INC Purchase of back up Flygt Sump Pump for the Showerhouse $7,025.00 HARBOR ELECTRICAL SYSTEM 5/16/2024 EATON CORPORATION ANNUAL 2024 OPEN PO FOR HARBOR DEPARTMENT 'Vendor used to buy replacement parts for pedestals on floats $5,000.00 ROADS AND STREETS 5/31/2024 SAWTOOTH INDUSTRIAL LLC [SCOTT PILLING] Kodiak Snow Blower #181-B Repair Supplies $13,419.58 ELECTRIC ADMIN 6/21/2024 SNAP ON TOOLS Scanner light duty $7,115.00 Library & Museum Department Library Operations: • Summer Operating Hours (May 1-Sept 29) Tuesday — Friday: 9 AM — 6 PM Saturday: 9 AM — 5 PM • Staffing: We have 1 seasonal position available • Patron Statistics (June 1-25, 2024): 17 working days, we served 9,389 patrons, averaging 552 visitors daily. That is an increase of 66 patrons per day. Additionally, we facilitated 49 events, 49 Shushbooth reservations, and proctored 1 exam during this period • Passport Processing: We processed 11 passports this month to date • Inter -Library Loan (ILL): This month we received 183 books from other libraries for our patrons and sent out 65 from our library Programs: • Summer Reading Program: We are in our 5th week of this year's program. Most all the programs have been outside so the great weather has been very nice. We have 84 registrants for this program 9 CMR July 8, 2024 • We have continued with the Library on Wheels program. This program provides library materials to patrons who cannot physically come to the library. Their requests are delivered by the Senior Center Meals on Wheels drivers on Fridays • I participated in the 2nd Cohort meeting with the Americans and the Holocaust exhibition. I have a few deadlines coming up with the grant and will be focusing my attention on that and finalizing plans for the four programs and the opening reception Museum Operations: • Admission price is $5 • Summer Operating Hours (May 1 to September 29) Tuesday — Friday: 9 AM to 6 PM Saturday: 9 AM to 5 PM Sunday: 1 PM to 4:30 PM • June Attendance: 546 visitors, and they've come from all over! o Alaska: Anchorage, North Pole, Seward, Valdez, Wasilla o United States: Alabama, California, Florida, Georgia, Idaho, Indiana, Maine, Maryland, Michigan, Nebraska, New Jersey, New Mexico, New York, North Carolina, South Dakota, Pennsylvania, Tennessee, Texas, Utah, Virginia, Wisconsin o International: Australia, Canada, England, Germany, Japan Exhibitions • The 1927Alaska State Flag recently returned home to the Seward Museum. This flag, part of the Seward Community Library Association Collection, was flown for the first time on a flagpole at the Jesse Lee Home in Seward on July 11, 1927. Benny Benson, a resident of the Jesse Lee Home, designed the flag. Initially, the color of the silk flag was a deep violet, with 8 painted gold stars, 7 in the shape of the Big Dipper and 1 star representing the North Star. Sarah Owens, Interwoven Fibers LLC, conducted the conservation • Seward Tsunami Swim Club Window Display: Discover the Seward Tsunami Swim Club and how it has been a cornerstone of the Seward community for decades. Whether you were a once a member, you know someone on the current swim team, or simply curious about the world of swimming, come check it out! (On Display June 4 — August 31) • Swimming in Seward - 1920s First Lake: Before Seward High School ever got a pool in the 1970s, many Seward people would swim in First Lake. Currently on display in the Library Atrium are photos, dating back to 1910 of swimmers diving off logs and enjoying summer! The highlight of this display is a black wool swimsuit originally owned by Luella Kelsey McMullen from Resurrection Bay Historical Society's Collection. By the 1920s, fabrics were chosen for bathing suits so they would not become transparent when wet. For this reason, swimsuits were mainly made of wool Museum Attendance Mid -Year Report This mid -year report provides an overview of visitor attendance from January to June 2024 compared to last year. The report highlights key attendance and trends, which will influence needs for the remainder of the year Museum Visitors, Including School Groups: • January to June 2024 (As of 6/26/2024): 1,702 10 CMR July 8, 2024 • January to June 2023 (Up to 6/26/2024): 1,548 • Museum Percentage Change: 9.5% Increase of Visitation o Highest Attendance Month 2024: June, with 581 visitors o Lowest Attendance Month 2024: January, with 56 visitors Geographic Distribution Per Month: • Local Visitors: 25% • Domestic Tourists: 58% • International Tourists: 17% Movie @ 2 Attendees: • May (As of 05/16/2024) to June 2024 (Up to 6/26/2024): 317 • May (As of 05/16/2023) to June 2023 (Up to 6/26/2023): 481 • Movie @ 2 Percentage Change: 41% Decrease of Visitation Future Projections and Plans • Projected Museum Attendance for the Second Half of 2024 (Based on 2022 # due to Fall 2023 Closure): July to December: 2,390 o Projected Movie @ 2 Attendance for July to September: 1,280 • Upcoming Events and Initiatives: o Founder's Day o Americans in the Holocaust Travelling Exhibit o WWII in Alaska Museum Display & Program Conclusion The first half of 2024 has shown growth in museum visitor attendance. Movie @ 2 event has shown a decrease. Moving forward, we aim to provide more presence on social media platforms and collaboration with other local organizations in upcoming exhibitions and research content Community Development • Community Development Director Daniel Meuninck completed his ICS 400 training up in Fairbanks • Following a productive Planning and Zoning Commission work session discussion on marijuana establishment regulations in Seward, Community Development staff is working towards recommending changing code language to help the public better understand what the current regulations are. If this is a topic that is of interest to you, you are encouraged to watch the last Planning and Zoning Work Session on the City of Seward's Youtube channel and attend future work sessions to voice your thoughts • The Planning and Zoning Commission is still looking to fill their final seat on the Commission. A recorded informational session about the Commission is up on the Community Development website for any interested Seward citizens. Commissioners receive $100 per month for their participation on the Commission 11 CMR July 8, 2024 Fire Department • Come compete at our firefighter combat challenge on July 3rd and 4th! Events include hose drag, dummy rescue, tool hoist, and more! Prizes and bragging rights for winners • Keep an eye out for our Fire Explorers on the 4th as they will be helping out around the station and throughout downtown. Come say hi and see what these young people are learning! Police Department • Citizens should remember that we have some important road closures coming up for the 4th of July and the Mt. Marathon Race o July 2nd — Adams Street from 3rd to 5th Avenues closes at 4 AM o July 3rd — Fourth Avenue closes from Washington to Jefferson at 3 PM o July 4th —Jefferson closes in the morning from 4th Ave to its end in Lowell Canyon until the race day is over • So please be ready to remove your vehicles from the affected areas or avoid them Parks and Recreation Department Sports & Recreation: • Kids in the Kitchen came to an end. It was a fun way to get kids learning a great new skill! We've cooked gimbap, dessert lasagna, and handmade pasta with homemade pesto sauce • Dinkin' Donuts, featuring Sports and Rec's very own Chris Fletcher and partner Cooper Greer took home top prize in the pickleball league defeating fellow city employees Danny Meuninck and Russ White • Blake Pullins reigned the champion of the 2024 disc golf league, but the season saw three individual week winners including a top score of -1 in the last week by Gabe Walker • Ryan Bringhurst has been steadily running classes at Sports and Rec and is currently hosting teenagers for the final week of Strength Training and Athletic Performance Training. He'll be back at it in August • Saturday, June 29 S&R hosted the No Man's Land Film Festival with guest speakers and door prizes starting at 6 PM • We're hoping for a good turnout for the 3-on-3 basketball tournament on the 4th of July Blake Pullins in the foreground Photo Credit: Russ White (check out the moose and calf in the background!) 12 CMR July 8, 2024 • Looking for more Dogs Who Hike on July 13 at Grayling Lake • Youth Soccer started July 2 and will be running until August 15 as well as Summer Adventure Camp for teens the second week of July Campgrounds: • Campground operations are running smoothly • Every weekend is booked solid through August • Continued shower house maintenance Park Maintenance: • Park improvements • Ballfield maintenance • Footbridge install at pocket park across the street from Rotary pavilion • Hoben Park Fountain repair and pump installation • Boardwalk railing replacement at Benny Benson Memorial Park Parking: • All parking lot handicap symbols have been updated • Digital parking permits are a success so far • Service/commercial permits almost complete Harbor Department Seward Harbor • Continuing to discuss funding and design of Z Float Expansion Project • Travis Enter started on June 25 and we are excited to have him within the Harbor Department • No major incidents were reported within the Harbor between June 13 — 27 • The Department is currently conducting the online portion to become certified in both CPR and First Aid and will finish up after Travelift schedule slows down in the next week(s) • The Harbor participated in the summer reading program on June 26 and showcased our facility to 10 children ranging in ages from 3 —12 years old • Deputy City Manager Bickling and I will be meeting with R & M on July 1 to discuss a new Harbormaster building and our needs within the Department SMIC • North Dock interest is very strong! Daily calls to check availability to utilize North Dock in July • No major incidents were reported within the SMIC yard/basin between June 13 — 27 13 CMR July 8, 2024 Public Works • Newly painted center lines, fog lines, curbs, and crosswalks brighten up the city streets in preparation for the 4th of July celebrations. The majority of the work is completed • The Street Department is also busy with adding gravel to alleys and working on dust control activities. Pavement potholes are being patched and sweeping activities continue • The Water and Wastewater Utilities are training two new employees and continuing with testing, repairs, and ground maintenance at all those facilities. Multiple projects are in the works to keep clean drinking water for the City of Seward • The Maintenance Shop has promoted Rudy Smith as Shop Foreman to step in for the retiring, 37-year employee Mike Moore. Congrats to Mike and Rudy as they each enter a new chapter of their lives • The Water and Sewer Rate Study is the focus of a work session at the July 22 council meeting. There are two very important parts to implement from the study. First, we need to replace the current complicated ERU billing for all businesses and any residential apartment buildings that are a 3-plex or larger. They will all have to be "metered". This will simplify the whole system for the customer and our billing process. Second, we need to adjust the rates and revenues to keep on track for infrastructure, maintenance, and operations. More working sessions and/or meetings will be coming to finish this rate study • We finally are enjoying some nice weather and hoping for more. Employees are using some annual leave, when possible, to spend time with family and friends and take advantage of the sunshine 14 CMR July 8, 2024 City of Seward - Human Resources Manager Report Staffing Information Department Job Title # of Positions Filled Administration City Manager 1 1 Deputy City Manager 1 1 Human Resources Manager 1 1 Executive Assistant 1 1 TOTAL: 4 4 Finance Director 1 1 Deputy Finance Director 1 1 Senior Accountant 1 1 Accounting Technician III 1 0 Accounting Technician II 1 0 Accounting Technician - Utilities 2 1 Accounting Tech Payroll 1 1 Accounting Tech Accounts Payable 1 1 TOTAL: 9 6 Public Works Director 1 1 Street Foreman 1 1 Maintenance Mechanic 3 2 Public Works Technician 1 1 Shop Foreman 1 1 Water and Wastewater Foreman 1 1 Water and Wastewater Operator 3 3 Building Maintenance Technician 2 2 TOTAL: 13 12 Community Development Director 1 1 Planner 1 1 Executive Assistant 1 1 TOTAL: 3 3 Electric Director 1 0 Operations Supervisor 1 0 Field Engineer 1 1 Executive Assistant 1 1 Lineman 4 3 Plant Operator 2 2 TOTAL: 10 7 Fire Department Chief 1 1 Deputy Chief 1 1 Executive Assistant 1 1 Building Official 1 1 Fire Marshal 1 1 Firefighter/EMT 1 1 Seasonal - Summer Laborer 1 1 TOTAL: 7 7 Harbor Harbor Master 1 1 Deputy Harbor Master 1 1 Office Manager 1 1 Executive Assistant 2 2 Harbor Worker II 6 6 15 CMR July 8, 2024 Harbor Worker III 1 1 Seasonal - Summer Laborer Part -Time 1 0 Seasonal - Summer Laborer Full -Time 1 1 TOTAL: 14 13 IT Director Senior IT Tech IT Technician TOTAL: 3 3 Library Director 1 1 Deputy Library Director 1 1 Library Technician 1 1 Curator 1 1 Library Aide 1 1 Seasonal - Aides 2 2 TOTAL: 7 7 Police Chief 1 1 Deputy Chief 1 1 Sergeant 1 1 Patrol Officer 7 5 Patrol Officer not funded 1 0 Executive Assistant 1 1 Corrections Sergeant 1 0 Corrections Officer 4 0 Corrections Officer not funded 1 0 Dispatch Supervisor 1 1 Dispatcher 5 5 Animal Control Officer 1 1 Animal Control Officer Assistant 1 1 DMV Clerk 1 1 TOTAL: 27 18 Parks & Recreation Director 1 1 Deputy Director 1 1 Executive Assistant 1 1 Campground Coordinator 1 1 Program Coordinator 1 1 Recreational Assistant 1 1 Maintenance Technician 1 1 Seasonal - Summer 14 12 Seasonal - Winter 3 0 TOTAL: 24 19 City Clerk's Office City Clerk Deputy City Clerk Executive Assistant TOTAL: 3 3 Total number of authorized positions: 124 Total number of filled positions: 102 16 CLERK REPORT Page 1 of 2 Kris Peck July 8, 2024 During the first week of June, Deputy City Clerk Jodi Kurtz completed the first installment of Professional Development (PD1) in Tacoma, WA. These annual trainings comprise of the Northwest region of clerks from the states of Alaska, Washington, and Oregon. A couple weeks later, I was transported via airplane for PD3, which completed the educational portion of the Certified Municipal Clerk (CMC) designation. Professional Development 1 —Alaska Group featuring Jodi 17 CLERK REPORT Page 2 of 2 Professional Development III —Alaska Group featuring Kris New album out soon 18 MUNSON, CACCIOLA & SEVERIN LLP ATTORNEYS AT LAW SUITE 402 1029 WEST THIRD AVENUE ANCHORAGE, ALASKA 99501 TELEPHONE: (907) 272-8401 bcf@bcfaklaw.com July 3, 2024 Seward City Council City of Seward PO Box 167 Seward, AK 99664 Re: June Status Report Dear City Council: This is our status report covering activity on legal matters worked on during June 2024. General Matters: We advised on several new public records requests. We continued to advise on a contract for elevator maintenance. We advised on DOC's use of the city's fingerprint machine. Considerable effort and resources this month were focused on the RCA hearing and the McDonald trial. Electric Utility: We continued work on the CEA rate case. Mr. George is presently handling the trial which is scheduled to go through July 19. We advised and suggested edits to a memorandum of understanding for the Railbelt Transmission Organization. Personnel: We advised on several ongoing personnel issues. We continued to work with the investigator for the Alaska Occupational Safety and Health agency on a retaliation complaint. We advised on a revision to Title 3. Planning: We continued to litigate the McDonald matter. A bench trial was held in Seward June 19. Both parties submitted written closing arguments to the court June 28. We are awaiting a decision. We advised on a question regarding lot coverage and number of buildings permitted on certain lots. We advised on procedural questions regarding the Planning and Zoning Commission. 19 Status Report to Seward City Council July 3, 2024 Page 2 of 2 Port and Harbor: We continued negotiations with the owner of an abandoned vessel. We advised on enforcement of the tariff as it pertains to passenger fees. Other Litigation: We continue to work with insurance defense counsel to defend against the claims by a former inmate against a former corrections officer and the Chief of Police. The plaintiff is not presently in compliance with procedural requirements for the case, but will likely be afforded latitude by the court as he is not represented by counsel. You can expect to receive our next status report by August 7. Very truly yours, MUNSON, CACCIOLA & SEVERIN LLP Samuel C. Severin 20 City of Seward, Alaska City Council Meeting Minutes June 10, 2024 Volume 42, Page CALL TO ORDER The June 10, 2024 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Sue McClure. OPENING CEREMONY Police Chief Alan Nickell led the Pledge of Allegiance to the flag. ROLL CALL There were present: Sue McClure, presiding, and John Osenga Mike Calhoon Kevin Finch Randy Wells Robert Barnwell Julie Crites comprising a quorum of the Council; and Jason Bickling, Acting City Manager Kris Peck, City Clerk Sam Severin, City Attorney Excused — Wells Absent — None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Bruce Jaffa, outside city limits, addressed the recent fatalities and accidents in Seward. On another topic, Jaffa brought up the possible Port & Commerce Advisory Board (PACAB) Alternative Energy Committee that was discussed at the previous city council meeting. He said that in the past, PACAB had formed small committees under their own rules without requiring council approval. Jaffa noted PACAB would resume their efforts in the fall. Brad Snowden, inside city limits, said that someone had made an anonymous payment to his utility account. Ristine Casagranda, inside city limits, provided an update on the Brown & Hawkins fire suppression project. She said the first phase was complete and she would be providing receipts to the city for reimbursement per the CLG grant. She thanked council for their support of the project. 21 City of Seward, Alaska City Council Meeting Minutes June 10, 2024 Volume 42, Page APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Osenga/Calhoon) Approval of Agenda and Consent Agenda Barnwell removed Resolution 2024-033 from the consent agenda. Motion As Amended Passed Unanimous The clerk read the following approved consent agenda items: Resolution 2024-031: Authorizing the City Manager to Purchase from Anixter, Electric Materials in the Amount of $233,692.38 Plus a 10% Contingency and Appropriating Funds Resolution 2024-032: Authorizing the City Manager to Purchase Transformers from General Pacific in the Amount of $128,409.00 Plus a 10% Contingency and Appropriating Funds Resolution 2024-034: Approving a Horizontal Layout for the Printed Version of the Official Seward Zoning Map, Which Will Display All Zoned Lands Within the Seward City Limits Approval of the May 28, 2024, City Council Meeting Minutes Re -appoint Mary Ann Benoit to the Historic Preservation Commission with a term set to expire in May 2027 Re -appoint Dona Walker to the Historic Preservation Commission with a term set to expire in May 2027 SPECIAL ORDERS, PRESENTATIONS, AND REPORTS Proclamations and Awards Proclamation for Flag Day was read by Mike Calhoon and would be shared with the American Legion. Proclamation for Lee Poleske Day was read by Sue McClure and would be shared with Poleske's family. City Manager Report Acting City Manager Jason Bickling thanked the library and police for their response to the bomb threat on Saturday. The investigation had been turned over to the federal level at this point. City Clerk Report - None 22 City of Seward, Alaska City Council Meeting Minutes June 10, 2024 Volume 42, Page City Attorney Report City Attorney Sam Severin provided an update on the Chugach Electric rate case regarding the 12% increase on the wholesale rate. Another trial they were working on was regarding the Mt. Alice Campground. Severin said their office had been keeping busy behind the scenes with Seward issues. Presentations Historic American Buildings Survey Plaque by Iris Darling for Brown & Hawkins Water and Sewer Rate Study by Bryan Mantz (telephonically) PUBLIC HEARINGS Ordinances for Enactment Ordinance 2024-009: Amending Seward City Code 15.10.226 — Land Uses Allowed Table, Prohibiting Cluster Subdivisions in all Zoning Districts Motion (Calhoon/Osenga) Enact Ordinance 2024-009 City Planner Courtney Bringhurst said the land use table allowed cluster subdivisions in certain zones. Bringhurst described examples of how cluster subdivisions might affect various zoning areas of Seward. She explained the square footage requirements and the smaller lots could impact the small town feel of Seward. She said a Planned Unit Development would be an alternative for developers to request smaller lot sizes as needed. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared and the public hearing was closed. Motion To Postpone (Finch/Calhoon) Postpone Ordinance 2024-009 to the July 8, 2024 City Council Meeting Osenga wanted to have more discussion on the ordinance before postponing it. Motion to Postpone Passed Yes: Finch, Barnwell, Crites, Calhoon, McClure No: Osenga NEW BUSINESS Resolution 2024-033: Authorizing the City Manager to Enter into a Two -Year Facility Use Agreement Between the City of Seward and the Alaska Vocational Technical Center for the Use of the Student Services Building for Public Recreation 23 City of Seward, Alaska City Council Meeting Minutes June 10, 2024 Volume 42, Page Motion (Osenga/Calhoon) Approve Resolution 2024-033 Parks & Recreation Director Melanie Hauze explained that many of the popular recreation events were dependent on the use of the AVTEC Student Services Center. Hauze explained the contract with AVTEC and provided detailed information on: custodial arrangements, attendance, revenue, daily use fees, operational hours, and upcoming closures. Hauze also noted that in the past the contracts had been on a 1-year basis. Barnwell said he was a huge fan of Parks & Recreation and appreciated all the services that were provided. He pulled the resolution from consent agenda because he wanted everyone to hear the explanation from Hauze. Overall, he was very supportive of the 2-year contract and felt the city was getting a great value with the contract. He noted the dollar amount was a small price to pay in comparison to building a new recreation center. McClure thanked Hauze for the clarification and statistics. Motion Passed Unanimous Other New Business Discuss a letter of support for officially naming Mount Kenny Baker McClure introduced the peak and said the local mountaineers had been calling it Mount Kenny Baker for a long time. There was a long sequence of events to get a mountain officially named. She said a letter of support from the council would help with the process. There was no objection from the council. INFORMATIONAL ITEMS AND REPORTS Boards and Commissions Minutes May 7, 2024, Planning & Zoning Commission Meeting Minutes Other Items Upcoming City Council Meetings Monday, June 21, 2021, City Council Regular Meeting Cancelled Monday, July 8, 2024, City Council Regular Meeting CITIZEN COMMENTS Bruce Jaffa, outside city limits, said that as the Chair of PACAB, he had recently received phone calls from locals who didn't like the increased tourist activity in Seward. On another topic, Jaffa 24 City of Seward, Alaska City Council Meeting Minutes June 10, 2024 Volume 42, Page felt it was appropriate to take more time to think about Ordinance 2024-009. Lastly, Jaffa announced that the 45th Moose Pass Summer Solstice Festival was happening this weekend. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Bickling thanked Parks & Recreation for all their work. He offered condolences to the family of the person who drowned while fishing. The city was looking into ways to help prevent future tragedies. Crites thanked everyone for the presentations tonight at both the work session and meeting. Barnwell thanked Melanie Hauze for providing more information on the AVTEC contract. He thanked Iris Darling and her group for their presentation on Brown & Hawkins. Lastly, Barnwell said the infrastructure update was the work session was encouraging. Finch thanked the Brown & Hawkins group, Parked & Recreation, and Public Works for all the information tonight. Finch offered condolences to the family of the fisherwoman who drowned. Calhoon thanked everyone for all the good information tonight. He hoped to see more in-depth financial information on the electric infrastructure. He said the water and sewer rate study numbers would be interesting and he was in favor of water metering. Calhoon said that Flag Day was next Friday, and the American Legion was holding ceremony at noon He also noted that Father's Day was on Sunday and the Legion would be providing a Father's Day breakfast that morning. Osenga thanked everyone for all the presentations tonight. He congratulated Brown & Hawkins. McClure echoed previous comments and noted Brown & Hawkins was an amazing place. McClure announced the times and locations for Lee Poleske memorial events which included a potluck and dedication of the new bench and statute. In the wake of Poleske's passing, McClure would be continuing the Summer Solstice Seward Cemetery Tours. McClure had an exciting and interesting cemetery tour lined up for June 21, 2024. Lastly, McClure noted this was last council meeting until after the Fourth of July and she wanted to wish everyone a safe and happy Independence Day. ADJOURNMENT The meeting was adjourned at 8:15 p.m. Kris Peck Sue McClure City Clerk Mayor (City Seal) 25 Ordinance 2024-010 ORDINANCE 2024-010 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE TITLE 3 PERSONNEL Documents: • Agenda Statement • Ordinance 2024-010 • Attachments: None 26 Ordinance 2024-010 City Council Agenda Statement Meeting Date: July 8, 2024 To: City Council Through: Kat Sorensen, City Manager From: Tammy Nickell, HR Manager Subject: Ordinance 2024-010: Amending Seward City Code Title 3 Personnel Background and justification: Title 3 contains the city's personnel code. Due to the evolving nature of personnel requirements and the need to address issues as they arise, Title 3 is being amended to allow temporary and seasonal employees to work more than nine months in a calendar year, if there is a break in service. A break in service, as defined in Title 3.01.035(C), is at least one entire pay period off. Chapter 3.25 Selection Amended code section Section Title Ordinance page # Amendment 3.25.040 Temporary, seasonal and on call appointments Striking the second sentence so temporary and seasonal employees can work more than 9 months in a calendar year if a break in service is taken, as defined in 3.01.035(C) 3.01.035(C) Break in service is defined as at least one entire pay period off. 3.25.040 Temporary, seasonal and on -call appointments Added language to clarify a temporary position may be terminated at any point should a full-time employee become available. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: Creates expenditure in amount of: $ $ 27 Ordinance 2024-010 Creates a savings in the amount of: Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted Not applicable Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Electric Water Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Yes Attorney Signature: Not applicable Comments: vir Administration Recommendation Adopt Resolution Other: 28 Ordinance 2024-010 Sponsored by: Sorensen Introduction Date: July 8, 2024 Public Hearing Date: July 22, 2024 Enactment Date: TBD CITY OF SEWARD, ALASKA ORDINANCE 2024-010 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE TITLE 3 PERSONNEL WHEREAS, this ordinance amends Seward City Code Title 3 Personnel, to allow temporary and seasonal employees to work more than nine consecutive months in a calendar year; and WHEREAS, temporary and seasonal employees must have a break in service between appointments; and WHEREAS, a break in service is defined in Title 3.01.035(C) as at least one entire pay period off; and WHEREAS, due to the evolving nature of personnel requirements and the need to address issues as they arise, this amendment is necessary. NOW, THEREFORE, THE CITY OF SEWARD ORDAINS, that: Section 1. Seward City Code Title 3 is hereby amended to read as follows (new language is in bolded italics and underlined and deleted language is stricken): Chapter 3.25. - Selection 3.25.040 Temporary, seasonal and on -call appointments. A. Temporary appointment - length of time. 1. Temporary appointments shall not exceed nine consecutive months. 2. No temporary employee shall work more than nine months in a calendar year. 2 Consecutive nine -month appointments cannot be served without a break in service as defined in section 3.01.035. 3 A temporary appointment may be terminated at any point for positions which have a full-time position already established with the city, should a full-time employee become available. Section 2. This ordinance shall take effect ten days after enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA this 22nd day of July 2024. 29 Ordinance 2024-010 CITY OF SEWARD, ALASKA ORDINANCE 2024-010 Page 2 of 2 AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 30 Resolution 2024-036 RESOLUTION 2024-036 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT A GRANT FROM THE STATE AND LOCAL CYBERSECURITY GRANT PROGAM IN THE AMOUNT OF $40,000.00 AND APPROPRIATING FUNDS Documents: • Agenda Statement • Resolution 2024-036 • Attachments: o Application for State and Local Cybersecurity Grant Program o Letter of Award 31 Resolution 2024-036 City Council Agenda Statement Meeting Date: July 8, 2024 To: City Council Through: Kat Sorensen, City Manager From: Dustin Phillips, Director IT Subject: Resolution 2024-036; Authorizing the City Manager to Accept a Grant from the State and Local Cybersecurity Grant Program in the Amount of $40,000.00 and Appropriating Funds Background and justification: On February 7, 2023, the City of Seward submitted an application for the Federal Fiscal Year 2022 State and Local Cybersecurity Grant Program. On March 4, 2024, the City of Seward was notified of the grant award in the amount of $40,000.00. The funding from this program is provided to support state, local, and territorial governments in managing and reducing systemic cyber risk. Funding in the amount of $40,000.00 is accepted and appropriated to the account 01000-1121- 425- 0150 Federal Grant, Cybersecurity Grant. Expenditures will be allocated in the account 01000-1121-7009-0150 Cybersecurity Grant Contracted Services Expense. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Total amount of funds listed in this legislation: $ 40,000.00 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 $ 40,000.00 $ $ 32 Resolution 2024-036 Affected Fund (✓):01000-1121-4251 and 01000-1121-7009 General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Electric Water Wastewater Healthcare Note: amounts are unaudited $ 10,242,170.63 Finance Director Signature: Yes Attorney Signature: Not applicable Comments: Attorney Review Administration Recommendation Adopt Resolution Other: 33 Resolution 2024-036 Sponsored by: Phillips CITY OF SEWARD, ALASKA RESOLUTION 2024-036 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ACCEPT A GRANT FROM THE STATE AND LOCAL CYBERSECURITY GRANT PROGAM IN THE AMOUNT OF $40,000.00 AND APPROPRIATING FUNDS WHEREAS, on February 7, 2023, the City of Seward submitted an application for the Federal Fiscal Year 2022 State and Local Cybersecurity Grant Program; and WHEREAS, on March 4, 2024, the City of Seward was notified of the grant award in the amount of $40,000.00; and WHEREAS, funding from this program is provided to support state, local, and territorial governments in managing and reducing systemic cyber risk. 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 accept the State and Local Cybersecurity grant. Section 2. Funding in the amount of $40,000.00 is accepted and appropriated to the account 01000-1121-425- 0150 Federal Grant, Cybersecurity Grant. Expenditures will be allocated in the account 01000-1121-7009-0150 Cybersecurity Grant Contracted Services Expense. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 8th day of July 2024. AYES: NOES: ABSENT: ABSTAIN: ATTEST: THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 34 Resolution 2024-036 CITY OF SEWARD, ALASKA RESOLUTION 2024-036 Kris Peck City Clerk (City Seal) 35 Resolution 2024-036 Alaska Division of Homeland Security and Emergency Management Federal Fiscal Year 2022 State and Local Cybersecurity Grant Program (SLCGP) Application Coversheet Application Deadline 11:59 p.m., Thursday, August 31, 2023 Application Checklist: PrThe application package includes the following: 1. Completed Federal Fiscal Year (FFY) 2022 State and Local Cybersecurity Grant Program (SLCGP) Application Coversheet. 2. Completed Federal Fiscal Year (FFY) 2022 State and Local Cybersecurity Grant Program (SLCGP) Project Application Form(s). You must complete one form for each individual project. 3. Signatory Authority Form with required three (3) signatures for jurisdiction (available at https://ready.alaska.gov/Grants) 4. If already completed, provide a copy of the jurisdiction's Cybersecurity Assessment. 5. Print-out of Jurisdiction's www.SAM.gov Entity Overview record displaying the jurisdiction's UEI Number ❑ Attach any applicable Memorandum of Understanding (MOU) or Memorandum of Agreement (MOA) related to the inter -agency project. Jurisdiction: Responsible Borough: (if applicable) City of Seward Only three (3) projects per jurisdiction may be submitted. Project Priority Project Budget Category (drop -down options) Planning Choose an item. Project Title Cybersecurity Assessment Choose an item. Funding Request $40,000 $ $ Total Request Jurisdiction Point of Contact for Proiect Applications Name: Dustin Phillips Address: 410 Adams ST, Seward, AK, 99664-3331 Email Address: dphillips@cityofseward.net $ Telephone Number: 907-224-4039 Fax Number: 907-224-4038 3 1 of 2 By signature below, the undersigned certifies and acknowledges: Resolution 2024-036 The jurisdiction has a financial management system in accordance with the 2 CFR Part 200 Uniform Administrafive Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.300-.309 Standards for Financial and Program Management and; the jurisdiction complies with all local procurement policies and procedures and conforms to applicable state and federal law and the standards identified in 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.317-.326 Procurement Standards to include having a written code of standards when using federal funds and; the undersigned has been duly authorized by the jurisdiction to submit this application and will comply with the assurances, agreements, and/or special conditions set forth upon receipt of the grant award. Jurisdiction Financial Officer Printed Name: Sully Jusino Jurisdiction Signatory Official Printed Name: Norm Regis Project Applications and Cover Sheet must be submitted electronically (in PDF format with complete signatures) by email to: Division of Homeland Security and Emergency Management Email: mva.grants@alaska.00v Phone: (907) 428-7000 or 1-800-478-2337 2 of 2 37 Resolution 2024-036 Alaska Division of Homeland Security and Emergency Management Federal Fiscal Year 2022 State and Local Cybersecurity Grant Program (SLCGP) Application Application Deadline 11:59 p.m., Thursday, August 31, 2023 Please get in touch with mva.grants@alaska.gov or call the Grants Section at 907-428-7000 or 1-800-478-2337 if you have any questions regarding this application. This form must be completed for each project. To qualify as a single project the pieces of the project must be integral toward achieving one precise objective. Ensure all questions on this form are completed. Questions that are left blank will receive a score of 0. Please duplicate this form as necessary. Jurisdiction: City of Seward Amount Requested Project Title $40,000 Project Priority 1 Up to three (3) projects may be submitted. Cybersecurity Risk Assessment of City of Seward Systems Choose the budget category. ❑ Exercise ❑ Equipment ® Planning ❑ Training Is this a continuation project from a previous grant year? ❑ Yes or ® No If yes, which grant/year? 1. Describe the project. (Make sure to include what the project is, who the project is for, how the project will help the jurisdiction, quantity of items, etc.) The City of Seward is seeking funding to complete a third -party cybersecurity assessment of our systems. Completion of this project will provide the City of Seward with the information and recommendations needed to create the plans and policies needed to increase the resilience and security of our data systems. We plan to utilize the results of the assessment to budget for any needed improvements with the next budget cycle. Implementation of those recommendations will help to protect the City's data and systems to ensure our team can continue to provide services to the public. 2. Explain how the project supports increased cybersecurity preparedness/response. This project will give us a baseline of our current cyber readiness and give us recommendations on how to continue to improve our cyber readiness over going forward. It will give us the ability to plan for any needed upgrades, as well as provide the framework for any needed policy or procedural changes needed. 3. Does this project address a gap identified in the Cybersecurity Assessment? If yes, please provide a page number. No, this project will be for a Cybersecurity Assessment. 4. Explain the implementation of this project and how start-up will begin within the first 90 days of award. We have been in contact with vendors and had initial conversations about scope and expected outcomes of the assessment. if we are awarded this grant, we would work with a vendor to get the 1 of 2 assessment scheduled and completed as soon as their schedule we can expect to start the project within 30-60 days of award. 5. Please briefly explain if this project could have a multi -jurisdictional correspondence and/or MOUs as support. This project would be solely for the City of Seward. However, can do to improve their cyber security posture will inadvertently state. The transfer of knowledge and lessons learned that done is invaluable and is something that I hope all jurisdictions continue to learn and grow. 6. Explain the financial need for this grant to support this project. being used and how you plan to maintain and sustain the project The City of Seward is working hard to upgrade aging infrastructure awarded this grant it would prevent our jurisdiction from utilizing other projects and priorities that benefit the community. Once we would plan for future assessments in our regular budgeting 7. This section must describe and itemize expenses for all project (including travel costs, training fees, planning contracts, etc.) *Please provide the authorized equipment list (AEL) number for equipment. https://www.fema.cov/authorized-equipment-list to look up the number. Resolution 2024-036 would allow. I have been told that or statewide benefit. Include any anything that an individual jurisdiction benefit all other jurisdictions in the will come from having this assessment would share to help everyone Please include if any jurisdictional funds are financially. and fund other programs. If reserve funds that are needed for this initial assessment is completed cycle and processes. components regardless of budget category Columns not applicable can be left blank. The DHS AEL can be found at 8. No, Project signatures) Description AEL # (If equipment) Qty Unit Cost Cost Total Cybersecurity Assessment 1 $40,000 $40,000 Can this project be broken out into phases breakdown. *Note: Partial funding may be allocated this project would be completed in Applications and Cover Sheet must by email to: Division of Homeland Email: Phone: (907) for funding? If so, please provide if phases are or are not provided. a single phase. be submitted electronically (in PDF Security and Emergency Management mva.grantsAalaska.gov a possible phasing format with complete 428-7000 or 1-800-478-2337 'In 2 of 2 Resolution 2024-036 Signatory Authority Form Grant Program(s): State and Local Cybersecurity Grant Program I Effective Date 08/31/2023 • UEI # Q8FQEN6N8MV8 ' Tax ID# J92-6000086 Name of Applicant (Jurisdiction): City of Seward Protect Manager Signatory Information Chief Financialcer, and Signatory Official must be three) d`erent individuals. Primary Signatories: Grant Award/Amendments and Quarterly Grant Reports Primary Delegations: Quarterly Financial and Narrative Grant Reriorts {only Secondary Delegations: Quarterly Financial and Narrative Grant Reports (anly) Project Manager Name Individual who will nonage project i Dustin Phillips Project Manager Address City, State Zip 410 Adams St, Seward, AK, 99664 Project Manager Telephone 907-224-4039 Project Manager dphillips@cityofseward.net Email Chief Financial Officer Name Highest level financial officer. authorized to Sully J u s i n o certify financial expenditures and records Chief Financial Officer Address City, State Zip 410 Adam St, Seward, AK, 99664 Chief Financial Officer Telephone Chief Financial Officer Email 907-224-4059 sjusino@cityofseward.net Signatory Official Jurisdiction's Chief Official Signatory Official Name Executive Governing Norm Regis _ Address City, State Zip 410 Adams St, Seward, AK, 99664 Signatory Official Telephone 907-4012 Signatory Official Email ! nregis@cityofseward.net Grant Correspondence such as award documents and payment notifications ill be sent to primary delegates. If you would like additional contacts cc'd in the email please list them below and provide email address if not listed above. Naneth Ambrosiani, nambrosiani@cityofseward.net Signatures** "Signature required by each of the above named individuals. Project Manager Primary S atotlr Primary Delegate Secondary Delegate Chief Financial Officer Signatory Official Prim Si story Primary Delegate - Secondary Delegate Prima S ory Primary Delegate Secondary Delegate Aogost MOP 40 Last updated by Naneth Anrhrosvani an Feb 0', 2023 at 06 59 PM SEWARD, CITY O1- ..W. SAM.GO Y SEWARD, CITY OF Resolution 2024-036 Unique Entity ID CAGE / NCAGE QBFQEN6N8MV8 1N5N7 Registration Status Expiration Date Active Registration Feb 7, 2024 Physical Address 410 Adams ST Seward, Alaska 99664 United States M<3ilir_l Address PO Box 167 Seward, Alaska 99664-0167 United States Purpose of Registration All Awards Doing Business as Division Name Division Number (blank) (blank) (blank) Congressional District State / Country of Incorporation URL Alaska 00 (blank) / (blank) www.cityofseward.us Registration Dates Activation Date Feb 9, 2023 Entity Dates Entity Start Date Jun 1,1912 Immediate Owner CAGE (blank) Highest Level Owner CAGE (blank) Submission Date Feb 7, 2023 I fiscal Year End Cosa Date Dec 31 Initial Registration Date Jan 9, 2002 Legal Bus ness Name (blank) Legal Business Name (blank) Executive Compensation In your business or organization's preceding completed fiscal year. did your business or organization (the legal entity to which this specific SAM record, represented by a Unique Entity ID, belongs) receive both of the follow ng 1, 80 percent or more of your annual gross revenues in U.S. federal contracts. subcontracts, loans, grants, subgrants, and/or cooperative agreements and 2. $25 000,000 or more in annual gross revenues from U.S. federal contracts, subcontracts, loans, grants. subgrants, and/or cooperative agreements? No Does the public have access to information about the compensation of the sen D r executives in your business or organization (the legal entity to which this specific SAM record, represented by a Unique Entity ID, belongs) through periodiv reports Tiled under section 13(a) or 15(d) of the Securities Exchange Act of 1934 415 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986? Not Selected Proceedings Questions Is your business ur organization, as represented by the Unique Entity ID on this entity registration, responding to a Federal procurement opportunity that contains the provision at FAR 52.209-7, subject to the clause in FAR 52.209-9 in a current Federal contract, or applying for a Federal grant opportunity wha.h contains the award term and condition described in 2 C F.R. 200 Appendix Xlt? No Does your business or organization, as represented by the Unque Entity ID on this specific SAM record, have current active Federal contracts and/or grants with total value (iroluding any exercised/unexercised options) greater than $10,000.000? Not Selected Within the last five years had the bus ness or organization (represented by the Unique Entity ID on this specific SAM record) and/or any of its principals, in connection with the award to or performance by the business or organization of a Federal contract or grant, been the subject of a Federal or State (1) crim nal proceeding resulting in a conviction or other acknowledgment of fault; (2) civil proceeding resulting in a finding of fault with a monetary fine. penalty, reimbursement, restitution. and/or damages greater than $5,000, or other acknowledgment of fault; and/or (3) administrative proceeding resulting in a finding of fault with either a monetary fine or penalty greater than $5 000 or reimbursement. restitution, or damages greater than $100,000, or other acknowledgment of fault,' Not Selected P.R. ?; Pm ux:.r:U. rnr t,n,J hops://sam.gov/entity/Q8FQEN6NSMVB'c oreData?status - Active 9• I Lax! updated by Naneth Amhrostaai on Feb 2023 at 06.39 ter Active Exclusions Records? No Resolution 2024-036 I authorize my entity's non -sensitive information to be displayed in SAM public search results: Yes Entigi Business Types Entity Structure Entity Type Organization Factors U.S. Government Entity US Local Government (blank) Profit Structure (blank) Socio-Economic Types Check the registrant's Reps & Certs, if present, under FAR 52.212-3 or FAR 52.219-1 to determine if the entity is an SBA -certified HUBZone small business concern. Additional small business information may be found in the SBA's Dynamic Small Business Search If the entity completed the SBA supplemental pages during registration. Government Types U.S. Local Government City Local Government Owned Other Government Entities Planning Commission Port Authority LPinanvFal htfantnahhnn Accepts Credit Card Payments Debt Subject To Offset Yes No EFT Indicator CAGE Code 0000 1N5N7 Electronic Funds Transfer Account Type Routing Number Lock Box Number Checking """0057 (blank) Financ•al Institution Account Number WELLS FARGO BANK N.A. '"""70474 Automated Clearing House Phone (U.S.; Email Phone (non-U.S.) 9072245283 (blank) {blank) Fax (blank) Remittance Address CITY OF SEWARD 410 Adams Street Box 167 Seward, Alaska 99664 United States EFT indicator CAGE Code 0001 7NPR1 Electronic Funds Transfer Account Type Routing Number Lock Box Number Checking ""'0248 (blank) Financial Institut ❑n Account Number WELLS FARGO BANK, NA '-***70474 Aug 11, 2023 09:42:04 PM GMT hrtps://sam.gov/enrirv/Q8FQEN6N8MV8/coreData?status=Active i': ;r 2 a 42 Last updated by Nanelh Amhrosiani on Feb 07, 2023 at 06:5P PM ).tWAnu, L111 fit Automated Clearing House Resolution 2024-036 Phone 0u.5.1 Email Phone (non-U.S.) 9072245283 (blank) (blank) Fax (blank) Remittance Address CITY OF SEWARD 410 Adams ST. Box 167 Seward, Alaska 99664 United States Taxpayer Infarwutoott EIN *****0086 Tax Year Most Recent Tax Year) 2021 type of Tax Applicable Federal Tax Name+Title of Individual Executing Consent Deputy Finance Director Address Signature 410 Adams ST SULLY JUSINO Seward, Alaska 99664 oInts of Contact Accounts Receivable POC Sully Jusino, Deputy Finance Director sJusino@cityotseward.net 9072244059 Electronic Business P. Naneth Ambrosiani, Senior Accountant nambrosianI @cltyofseward.net 9072244063 sti ly Jusino swsino@cnyofseward.net 9072244059 Government Business Sully Jusino, Deputy Finance Director sjusino@cityofseward.net 9072244059 Service Clee6fflcatlon6 NAICS Codes PO Box 167 Seward, Alaska 99664 United States 410 Adams P.O. Box 167 Seward. Alaska 99664 United States PO Box 167 Seward, Alaska 99664 United States Taxpayer Name CITY OF SEWARD TIN Consent Date Feb 7, 2023 Primary NAI CS Codes NAICS Title Yes 921190 Other General Government Support 713930 Marinas 721211 Rv (Recreational Vehicle) Parks And Campgrounds 922120 Police Protection 922140 Correctional Institutions 922160 Fire Protection 926130 Regulation And Administration Of Communications, Electric, Gas, And Other Utilities Product and Service Codes v Ji, 2023 09.42.04 PM GMT nry_ •//sam.goefentitµ QBFQEN6NSMV8/coreData'status-Art, r 43 Lars updated by Nanette Amhrostant on Feb U' 2023 at 06. 59 P51 PSC PSC Name Z1ND Maintenance Of Sewage And Waste Facilities Z1 NE Maintenance Of Water Supply Facilities Z1NZ Maintenance Of Other Utilities IGT Size Metrics Annual Revenue (from all IGTs) (blank) Worldwide Annual Receipts (n accordance with 13 CFR 121) Number of Employee tin accordance with 13 CFR 12f ) 9100,000,000.00 90 Location Resolution 2024-036 Annual Receipts (in accordance with 13 CFR ' 21) Number o' Employee, (in accordance w th 13 CFR 12i ) S100,000,000.00 Industry -Specific Barrels Capacity (blank) This entity did not enter the EDI information 90 Megawatt Hours (blank) Yes, this entity appears in the disaster response registry. No, this entity does not require bonding to bad on contracts. f!dmn9 Levels States Alaska Dollars (blank) Counties Total Assets (blank) Metropolitan Statistical Areas AK: Kenai Peninsula (blank) Aug 31, 2023 09:42.04 PM GMT hops://sam.gov/enfirv/Q8FQEN6N8MV8fcoreUata sraru.' Actn+e 44 sr-. • - V . r • s 7 V (;O\'1•RNOR MIKE 1)UNLLAVY Department of Military and Veterans Affairs Division of homeland Security and Emergency Management P.O. Box 5750 JBER, AK 99505-0800 Main: 907.428.7000 Fax: 907.428.7009 ready.ataska.gov March 4, 2024 Norman Regis, Habormaster City of Seward 410 Adams Street Seward, AK 99664 RE: 2022 State and Local Cybersecurity Grant Program, EMW-2022-CY-00038-S01 State Grant No.: 22SLCGP-GY22 Mr. Regis: We received funds from the U.S. Department of Homeland Security under the 2022 State and Local Cybersecurity Grant Program (SLCGP). We are pleased to award the City of Seward the amount of $40,000.00 under this grant. Funding from this program is provided to support state, local and territorial governments in managing and reducing systemic cyber risk. As a reminder, all procurement transactions must be conducted in a manner that provides full and open competition. To ensure this, we require a Procurement Method Report with every expense (except for local advertising, legal notices, and travel arrangements) submitted for reimbursement under this grant. Preapprovals may be required at multiple steps in the procurement process. Please see the Procurement Method Report for additional details. A pre -signed Obligating Award Document (OAD) is attached. Please print the document, sign the OAD, and send a scanned copy to mva.grants@alaska.gov within 30 days of subrecipient receipt. Keep the hard copy for your records. If the OAD cannot be returned within 30 days due to local jurisdiction policies, a Notice of Intent to Accept Grant Award form must be submitted. The form and instructions are available for download on our Grants website: http://ready.alaska.gov/Grants/Ourpocs. If signatory points of contact have changed since the submittal of the application, please complete and return a Signatory Authority Form with the signed OAD. The Signatory Authority Form is available for download on our Grants website. If needed, Electronic Payment enrollment forms are also available upon request. 45 Resolution 2024-036 Mr. Regis March 4, 2024 Page 2 of 2 If you have any questions, please get in touch with the Division Project Manager for this grant, Tiffany Peltier at (907) 428-7026 or by email at mva.grants@alaska.gov. Sincerely, William A. Dennis Administrative Operations Manager Enclosure(s): Obligating Award Document Project Budget Details Report cc: Dustin Phillips, Subrecipient Project Manager Sully Jusino, Subrecipient Chief Financial Officer 46 Resolution 2024-036 State of Alaska Division of Homeland Security and Emergency Management Under US Department of Homeland Security Federal Emergency Management Agency Grant Programs Directorate Page 1 of 9 FEDERAL AWARD DATE December 26, 2022 FEDERAL GRANT PROGRAM 2022 State and Local Cybersecurlty Grant Program OBLIGATING AWARD DOCUMENT FEDERAL GRANT NUMBER EM W-2022-CY-00038-501 RECIPIENT NAME AND ADDRESS PERFORMANCE PERIOD AMENDMENT CFDA: I 97.137 City of Seward PO Box 430 Seward, AK 99664 FROM: February 1, 2024 AMENDMENT#: AWARD AMOUNT TO: December 31, 2025 EFFECTIVE DATE: $40,000.00 STATE PROGRAM NUMBER 225LCGP-GY22 UEI NUMBER NPS7BL28SL85 FUNDING ALLOCATION E1N 92-6000086 PLANNING $40,000.00 EXERCISE METHOD OF PAYMENT Electronic TRAINING EQUIPMENT PURPOSE OF AWARD Total Awarded Amount: $40,000.00 Federal Share: $36,000.00 State Share: $4,000.00 Final Report Due: February 15, 2026 The attached Project Budget Details is the funding allocation. Grant program guidelines and federal, state, and local contracting and procurement compliance requirements apply. GRANT REQUIREMENTS AND PROGRAM TERMS AND CONDFTIONS The acceptance of a grant from the United States government creates a legal duty on the part of the recipient to use the funds or property made available in accordance with the conditions of the grant [GAO Accounting Principles and Standards for Federal Agencies, Chapter 2, Section 16.8(c)J. See attached for continued Grant Requirements and Program Terms and Conditions. SPECIAL CONDITIONS (Grant funds cannot be expended until these conditions have been met. See Obligating Award for details.) None AGENCY INFORMATION ADDRESS Division of Homeland Security and Emergency Management PO Box 5750 JBER, AK 99505-5750 WEBSITE http://ready.alaska.gov EMAIL mva.grants@alaska.gov (907) 428-7000 PHONE FAX (907) 428-7009 STATE PROJECT MANAGER PHONE FAX EMAIL Tiffany Peltier (907) 428-7026 (907) 428-7009 mva.grants@alaska.gov AGENCY APPROVAL NAME AND TITLE OF APPROVING AGENCY OFFICIAL NAME AND WILE OF AUTHORIZED RECIPIENT OFFICIAL William A. Dennis, Administrative Operations Mgr. Norman Regis, Habormaster SIGNATURE OF APPROVING AGENCY OFFICIAL SIGNATURE OF AUTHORIZED RECIPIENT OFFICIAL DATE 3'-1— Znzci DATE sad --� FOR STATE USE ONLY Vendor Persona! Number: CO584266 Date Returned Fund Unit AR Unit Object Activity Function Program PPC 1004 2001 099230010 7000 2012 22 CSGP SEW 2CSGP2022 GYCSGP 47 Resolution 2024-036 Program Requirements (A) Monies may not be obligated outside of the time period as stated on the grant document. An obligation occurs when funds are encumbered, as with a purchase order and/or commitment of salaries and benefits. All obligated and encumbered funds must be Liquidated within 45 days of the end of the performance period (unless otherwise specified in the Program Terms and Conditions) when the Final Performance Progress Reports are due. (B) The signature of the signatory officials on this award certifies that all financial expenditures, Including all supporting documentation submitted for reimbursement, have been incurred by the jurisdiction and are eligible and allowable expenditures consistent with the grant guidelines for this project. The jurisdiction shall follow the financial management requirements Imposed on them by the Division of Homeland Security and Emergency Management (DHS&EM). (C) The signature of the signatory officials on this award attests to the jurisdiction's understanding, acceptance, and compliance with Acknowledgment of Federal Funding; Lobbying; Debarment, Suspension, EHP, BABAA, and other responsibility matters; Drug —free Workplace; Conflict of Interest, and Non —Supplanting certifications. Federal funds will not be used to supplant state or local funds. Federal funds may be used to supplement existing funds to augment program activities and not replace those funds that have been appropriated in the budget for the same purpose. Potential supplanting may be the subject of application and pre —award, post —award monitoring, and audit. Any cost allocable to a particular Federal award or cost objectives under the principles provided in 2 CFR Part 200, subpart E, may not be charged to other Federal awards to overcome fund deficiencies. (D) The jurisdiction shall ensure the accounting system used allows for the separation of fund sources. These grant funds cannot be commingled with funds from other federal, state, or local agencies, and each award is accounted for separately. (E) The jurisdiction shall comply with the requirements under 2 CFR 25.110 to maintain and keep jurisdiction information current within the System of Award Management (SAM). Also, the jurisdiction has the requirement to be non -delinquent to the Federal government as required in OMB Circular A-129. Examples of relevant debt include delinquent payroll and other taxes, audit disallowances, and benefit overpayments. (F) The jurisdiction shall comply with Federal Laws and Regulations: Tide VI of the Civil Rights Act of 1964, Title V!I! of the Civil Rights Act of 1968, Section 504 of the Rehabilitation Act of 1973, Title IX of the Education Amendments of 1972, Age Discrimination Act of 1975, Americans with Disabilities Act of 1990. Per Executive Ober 13166, the jurisdiction will take reasonable steps to ensure Limited English Proficient (LEP) persons have meaningful access to its programs and activities. The jurisdiction is required to comply with any applicable provisions of the Buy American Act (41 U.S.C. Sections 8301 — 8305). Executive Order 13347, Individuals with Disabilities in Emergency Preparedness, requires the government to support safety and security for individuals with disabilities in situations involving disasters, including earthquakes, tornadoes, fires, floods, hurricanes, and acts of terrorism. Executive Order 13224 prohibits transactions with and support organizations associated with terrorism. Energy Policy and Conservation Act, the National Environmental Policy Act (NEPA) of 1969, and the Coastal Wetlands Planning, Protection, and Restoration Act of 1990 (as applicable.) The USA PATRIOT Act of 2001, the Trafficking Victims Protection Act of 2000, the Hotel and Motel Fire Safety Act of 1990, and the Fly America Act of 1974. Subrecipients who collect Personally Identifiable Information (PII) are required to have a publicly available privacy policy that describes what PII they collect, how they use the PII, whether they share PII with third parties, and how individuals may have their PII corrected where appropriate. All recipients must comply with the statutory requirements for whistleblower protections (if applicable) at 10 U.S.0 2409, 41 U.S.0 4712, and 10 U.S.0 2324, 41 U.S.S 4304, and 4310. All recipients must comply with the equal treatment policies and requirements contained in 6 C.F.R Part 19 and other applicable statutes, regulations, and guidance governing the participants of faith -based organizations in individual DHS programs. (G) The jurisdiction certifies that it has an Affirmative Action Plan/Equa! Employment Opportunity Plan. An EEOP is not required for subrecipients under $25,000.00 or fewer than 50 employees. (H) The jurisdiction certifies that its employees are eligible to work in the U.S. as verified by Form 1-9, Immigration & Naturalization Service Employment Eligibility. (I) It is the responsibility of the jurisdiction as the subrecipient of these federal funds to fully understand and comply with the requirements of: 1. Administrative requirements 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards httas://ecfr. iolT itle-2iPart-200 2. Cost Principles 2 CFR Part 200 Subpart E Cost Principles Title 2 Part 200 Subpart E - Code of Federal Regulations (ecfr.io) 3. Audit Requirements 2CFR Part 200 Subpart F Audit Requirements Title 2 Part 200_,Subpart F - Code of Federal Regulations (ecfr.iol a. Federal: The applicant agrees that, as a condition of receiving any federal financial assistance, a Single audit of those federal funds will be performed, if required by law, and further agrees it will comply with all applicable audit requirements. 48 Resolution 2024-036 b. State: If the applicant is an entity that received state financial assistance, the applicant shall submit to the State Coordinating Agency, within one year after the end of the audit period, an annual audit report covering the audit period as required by 2 AAC 45.010. c. Subrecipients identified as "non -compliant" by the Alaska Dept. of Administration, Division of Finance, Single Audit Coordinator shall be subject to the following grant payment restrictions: 1) The Division of Homeland Security & Emergency Management (DHS&EM) will not process grant payments of any nature directly to the subrecipient, 2) Subrecipients will be required to fully comply with the Single Audit requirements specified by the Alaska Dept. of Administration, Division of Finance, Single Audit Coordinator. 3) Subrecipients will provide compliance evidence to DHS&EM from the State Audit Coordinator before any payment will be processed. 4) DHS&EM may process on -behalf -of (OBO) payments to vendors for costs directly associated with the scope of work on approved awards. 5) Performance periods will not be extended due to a subrecipient's failure to comply with the Single Audit requirement. 6) Payments made in error to subrecipients that are "non -compliant must be repaid to the State of Alaska within 90 days of receipt of notice from DHS&EM. 4. Procurement and Contracts. Contracts must be of a reasonable cost, generally be competitively bid, and must comply with Federal, State, and local procurement standards. Detailed requirements for eligible procurement methods and contract types can be found in 2 CFR Part 200 Subpart D. The applicant agrees to review and follow procurement and contract requirements necessary for compliance with the grant program. Further, the applicant understands that failure to comply with these requirements may result in loss of funding for the entire project. a. Debarred/Suspended Vendors. As required by Executive Orders 12549 and 12689, Debarment and Suspension, and implemented at 2 CFR Part 180, the applicant certifies that it and its principals: 1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, sentenced to a denial of Federal benefits by a State or Federal court, or voluntarily excluded from covered transactions by any Federal department or agency. 2) Have not within a three-year period preceding this award been convicted of a or had a civilian judgment rendered against them for the commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or perform a public (Federal , State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property. 3) Are not presently indicted for otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with the commission of any of the offenses enumerated in paragraph (2) of this certification. 4) Have not within a three-year period preceding this application had one or more public transactions (Federal, State, or local) terminated for cause of default. Where the applicant is unable to certify any of the statements in this certification, he or she shall attach an explanation to this application. 5) Domestic Preferences for Procurement. As appropriate and to the greatest extent consistent with law, state and non - state entities should, to the greatest extent practicable under its FEMA award, provide a preference for the purchase of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products), The requirements of this section must be included in all subawards including all contracts and purchase orders for work or products under this award. 2 C.F.R. § 200.322 also provides specific definitions for 'Produced in the United States" and "manufactured product( that states should review. 5. Conflict of Interest 2 CFR Part 200.112 — the jurisdiction must disclose in writing to DHS&EM any potential conflict of interest per the applicable Federal awarding agency policy in the award's performance period. 6. False Claims Act, Program Fraud Civil Remedies, and Mandatory Disclosures A. 31 U.S.C. §3729, no recipient of federal payments shall submit a false claim for payment. B. 38 U.S.C. §3801-3812 details the administrative remedies for false claims and statements made. C. 2 CFR Part 200.113 — the jurisdiction must disclose, in a timely manner and in writing to DHS&EM, all violations of Federal criminal law involving fraud, bribery, or gratuity potentially affecting the award. 7. Technology Requirements 28 FR Part 23, Criminal Intelligence System Operating Policies 8. Research and Development (R&D) Requirements Grants awarded to DHS&EM are not R&D 9. Duplication of Benefits 2 CFR Part 200, Subpart E, Cost Principles 10. Robert T. Stafford Disaster Relief and Emergency Assistance Act, Public Law 93-288, as amended, 42 U.S.C. §5121-5206, and Related Authorities, where applicable. 49 Resolution 2024-036 11. Reducing Text Messaging while Driving. All recipients are encouraged to adopt and enforce policies that ban text messaging while driving as described in E.O. 13513, including conducting initiatives described in Section 3(a) of the Order when on official government business or when performing any work for or on behalf of the federal govemment. 12. Reporting of Matters Related to Recipient Integrity and Performance If the total value of the recipient's currently active grants, cooperative agreements, and procurement contracts from all federal assistance offices exceeds $10,000,000 for any period of time during the period of performance of this federal financial assistance award, you must comply with the requirements set forth in the government -wide Award Term and Condition for Recipient Integrity and Performance Matters located at 2 C.F.R Part 200, Appendix XII. 13. Reporting Subawards and Executive Compensation All recipients are required to comply with the requirements set forth in the govemment-wide Award Term on Reporting Subawards and Executive Compensation located at 2 C.F.R Part 170, Appendix A. 14. SAFECOM All recipients receiving federal financial assistance awards made under programs that provide emergency communication equipment and its related activities must comply with the SAFECOM Guidance for Emergency Communication Grants, including provisions on technical standards that ensure and enhance interoperable communications. 15. All recipients must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in the guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition. 50 Resolution 2024-036 SLCGP Program Terms and Conditions The total allocation of the 2022 State and Local Cybersecurity Grant Program awarded to the Division of Homeland Security and Emergency Management (DHS&EM) is $2,244,983.00 under Federal Grant EMW-2022-CY-00038-S01, CFDA# 97.137. The City of Seward has been awarded $40,000.00, which shall be used to support state, local, and territorial governments in managing and reducing systemic cyber risk. The instructions, guidance, limitations, and other conditions outlined in the Notice of Funding Opportunity (NOFO) for this program are incorporated here by reference in the award terms and conditions. All recipients must comply with any such requirements outlined in the program NOFO and State program guidance. The performance period of this grant award is February 1, 2024, through December 31, 2025. Project conditions must be completed by this date. The City of Seward cannot subgrant ail or any part of this award to any other entity or organization. All awards require confirmation within the first reporting quarter that activities toward projects will be made, or DHS&EM may execute de -obligation of the funds. (A) Changes to Award: All change requests must be submitted in writing or electronically to the DHS&EM Project Manager, accompanied by a justification narrative and budget/spending plan, for review and approval. Changes must be consistent with the scope of the project and grant guidelines. Requests for changes will be considered only if the reporting requirements are current and if terms and conditions have been met at the time of the request. Changes in the programmatic activities or purpose of the project, changes in key persons specified on the grant award, contractual services for activities central to the purposes of the award, requests for additional funding, changes in the project site, or release of special conditions may result in an amendment to this award. No transfers of funds between budget categories will be authorized, only de -obligation of funds, except on a case -by -case basis. (B) Reporting Reauirements: The City of Seward shall submit timely quarterly Performance Progress Reports (PPR) and Financial Progress Reports (FFR) to the Project Manager at DHS&EM. Instructions and blank forms are located electronically at httos://www.ready.alaska.00v/Grants and may be reproduced. Jurisdictions must check the website quarterly for the most current forms. The use of outdated forms will not be accepted. Quarterly reports are due: Number of Scheduled PPR & FFR Due Reports Due Jurisdiction Performance Period Dates 1 2/1/2024 - 3/31/2024 WAIVED 2 4/1/2024 - 6/30/2024 July 20, 2024 3 7/1/2024 - 9/30/2024 October 20, 2024 4 10/1/2024 -12/31/2024 January 20, 2025 5 1/1/2025 - 3/31/2025 April 20, 2025 6 4/1/2025 - 6/30/2025 July 20, 2025 7 7/1/2025 - 9/30/2025 October 20, 2025 8 10/1/2025 - 12/31/2025 January 20, 2026 9 Final Report February 15, 2026 invoices with progress reports will be submitted to DHS&EM by the due date as specified in the above schedule. Should the grant period be extended for any reason, a modified report schedule will accompany the award amendment. The Performance Progress Report (PPR) contains an AK-PPR-A cover page form and an AK-PPR-B Program Indicators form. Both forms must be completed and submitted by the report due date. Requests for grant extensions, budget adjustments, project realignments, and significant problems or delays are reported on the AK-PPR-A. An AK-PPR-A must be submitted even if no additional information is required. The AK-PPR-B shall describe the progress and percentage of projects completed and detail any related expenditures submitted on the Financial Progress Report. The Financial Progress Reports shall describe the status of the funds, show encumbrances, and receipts of program income, cash or 51 Resolution 2024-036 in —kind contributions to the project, whether or not a local match is required. A final PPR is a summary report showing project completion, evaluating project activities, and measuring performance against project goals for the entire performance period, and is required in addition to the last quarterly PPR. An After —Action Report/Improvement Plan (AAR/IP) is required within 30 days of the conduct of an exercise. (C) Signatory Requirements: The primary Signatory Official, Project Manager, and Financial Officer, as listed on the Signatory Authority Form, must sign the original obligating award document and any amendments. Delegates may sign quarterly and final reports. However, the signatures of the Project Manager, Signatory Official, and the Financial Officer must be three different signatures. (D) Reimbursements: Submit on the Financial Progress Report form. Reimbursement shall be based upon authorized and allowable expenditures consistent with project narrative, budget details, grant guidelines, and submission of timely quarterly Performance Progress and Financial Progress Reports. Payments may be withheld pending correction of deficiencies or for use of outdated forms. Reimbursement of expenditures may be requested at any time within the performance period. Expenditures must be supported with source documentation (e.g., copies of invoices, receipts, timesheets with name/wage/hours, cost allocation, warrants, etc.), method of solicitation must be documented with a Procurement Method Report, and documentation of payment must be included. Reimbursable expenses include: • Personnel Costs: Payroll reports signed and certified by the Chief Financial Officer that capture the employee's name, position, coded allocation to the project, and amount paid are acceptable. Staff may not self —certify their own time and wages. The subrecipient shall retain all supporting payroll records, including time and attendance records signed by the employee and supervisor and copies of warrants as per the recordkeeping requirements in Section O. Limited to 50 percent for employees assigned to program management functions, not operational duties. The limit does not apply to contractors. • Contracts: All sole —source procurements, single vendor responses to a competitive bid, and service contracts of any value require DHS&EM pre —approval before implementation. Final signed copies of all contracts are required for submission to DHS&EM with the request for reimbursement. Please review the Procurement Method Report for specific requirements. • Program Income and Local Match: Program income may be used to supplement project costs, reduce project costs, or may be refunded to the federal government, and must be used for allowable program costs and be expended before requests for reimbursement. Local matching funds must clearly support the source, the amount, and the timing of all matching contributions. • Eouipment: Allowable equipment categories are listed on the web -based Authorized Equipment List (AEL) on the Responder Knowledge Base (RKB). Documentation is required per instructions attached to DHS&EM quarterly reports. • Travel: Travel must be listed in the approved budget. • Training: Requires DHS&EM pre —approval before registering or participating in training opportunities. • Exercise: Requires submission of an AAR/IP within 30 days after the conduct of the exercise. • Food and Beverages: All food and/or beverage expenses require pre -approval by DHS&EM and are only allowable costs if related to a grant -funded sheltering exercise, such as a Mass Care Shelter Exercise where food is prepared as part of the exercise objectives in evaluating food preparation capabilities. (E) Unallowable Costs and Activities: Below is not an all -Inclusive list. Please review the FY2023 SLCGP Notice of Funding Opportunity for additional information. Grant and match funds cannot be used for: • Spyware • Microsoft Office • Construction/Renovation • To meet a cost -sharing contribution • To pay a ransom • For recreational or social purposes • To pay for cybersecurity insurance premiums • To acquire land or to construct, remodel, or perform alternations of buildings or other physical facilities or • For any purpose that does not address cybersecurity risks or cybersecurity threats on information systems owned or operated by, or on behalf of, the eligible entity that receives the grant or a local government within the jurisdiction of the eligible entity. • Salaries and personnel costs of planners, equipment managers, exercise coordinators, and/or training coordinators • Supplanting any expense already budgeted • Reimbursable training and related travel costs not pre -approved by DHS&EM 52 Resolution 2024-036 • Contracts and procurements over $10,000.01 not pre -approved by DHS&EM • Sole source contracts and procurements not pre -approved by DHS&EM • Stand-alone working meals • Expenditures not supported with appropriate documentation when submitted for reimbursement. Only properly documented expenditures will be processed for payment. Unsupported expenditures will be retumed for resubmission by the jurisdiction. (F) Property and Equipment Management: The City of Seward shall maintain an effective property management system; safeguards to prevent loss, damage, or theft; maintenance procedures to keep equipment in good condition; and disposition procedures. A Property Inventory Report must be submitted to DHS&EM annually each June 20 with the Financial Progress Report, and continued submission is required annually until final disposition of the equipment. No equipment purchased with these grant funds may be assigned to other entities or organizations without written approval from DHS&EM prior to the jurisdiction's encumbrance or expenditure for that equipment. Management of property and equipment shall be in accordance with state laws and procedures as outlined in 2 CFR Subpart D (200.210-200.316). For items over $5,000.00, a Single Equipment Reporting Form must be submitted at the time of reimbursement at the time of reimbursement request (G) Build America. Buy America Act (BABAA): The City of Seward must comply with the Build America, Buy America Act (BABAA), which was enacted as part of the Infrastructure Investment and Jobs Act §§ 70901-70927, Pub. L. No. 117- 58 (2021); and EO 14005, Ensuring the Future is Made in All of America by All of America's Workers. See OMB Memorandum M-22-11, Initial Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure. None of the funds provided under this program may be used for a project for infrastructure unless the iron and steel, manufactured products, and construction materials used in that infrastructure are produced in the United States. The Buy America preference only applies to articles, materials, and supplies that are consumed in, incorporated into, or affixed to an infrastructure project. As such, it does not apply to tools, equipment, and supplies, such as temporary scaffolding, brought to the construction site and removed at or before the completion of the infrastructure project. Nor does a Buy America preference apply to equipment and furnishings, such as movable chairs, desks, and portable computer equipment, that are used at or within the finished infrastructure project but are not an integral part of the structure or permanently affixed to the infrastructure project. (H) Procurement: A Procurement Method Report documenting the method of solicitation is required for reimbursement for every procurement (with the exception of local advertising, legal notices, and travel arrangements). Contractors that develop or draft specifications, requirements, Statements of Work (SOW), and/or Requests for Proposals (RFP) for a proposed procurement shall be excluded from bidding or submitting a proposal to compete for the award of such procurement. Local bidder's preference is not allowed for federally funded procurements. Procurement transactions shall be conducted to provide maximum open and free competition. Pre -approvals may be required at multiple steps in the procurement process. Please see the Procurement Method Report for additional details. (I) Contracts: Any contract entered into during this grant period shall comply with local, state, and federal government contracting regulations. To the extent that subrecipients of a grant use contractors, subrecipients shall use small, minority, women -owned, or disadvantaged business concerns and contractors to the extent practicable. Contracts for professional and consultant services must include local, state, and federal government -required contract language and a project budget and require pre —approval by DHS&EM before implementation. Contract deliverables must meet the intent of the grant application and grant requirements. Justification is required for compensation for individual consultant services, which must be reasonable and consistent with the amount paid for similar services in the marketplace. Detailed invoices and time and effort reports are required for consultants. A Procurement Method Report documenting the method of solicitation is required for reimbursement for every procurement. (J) Use of DHS Seal, Logo, and Flags: All subrecipients must obtain DHS&EM approval before using the DHS seal(s), logos, crests, or reproductions of flags or likenesses of DHS agency officials, including use of the United States Coast Guard seal, logo, crests or reproductions of flags of likenesses of Coast Guard officials. (K) Publications and Copyright: All recipients must affix the applicable copyright notices of 17 U.S.C. § 401 or 402 and an acknowledgment of Government sponsorship (including award number) to any work first produced under Federal financial assistance awards unless the work includes any information that is otherwise controlled by the Government (e.g., classified information or other information subject to national security or export control laws or regulations) Publications created with funding under this grant should prominently contain the following statement: This document was prepared undera grant from the Federal Emergency Management Agency (FEMA)'s Grant Programs Directorate, U.S. Department of Homeland Security and the Alaska Division of Homeland Security and Emergency Management. 53 Resolution 2024-036 Points of view or opinions expressed in this document are those of the authors and do not necessarily represent the official position or policies of FEMA's Grant Programs Directorate, the U.S. Department of Homeland Security, or the State of Alaska. (L) Acknowledgement of Federal Funding: All subrecipients must acknowledge their use of federal funding when issuing statements, press releases, requests for proposals, bid invitations, and other documents describing projects or programs funded in whole or in part with Federal funds. (M) Federal Debt Status: All subrecipients are required to be non -delinquent in their repayment of any Federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowances, and benefit overpayments. See OMB Circular A-129 and form SF-424, item number 17, for additional information and guidance. (N) False Claims Act and Program Fraud Civil Remedies: All subrecipients must comply with 31 U.S.C. § 3729 requirements, which set forth that no sub -recipient of federal payments shall submit a false claim for payment. See also 38 U.S.C. § 3801-3812, which details the administrative remedies for false claims and statements made. (0) Recordkeening Requirements: Grant financial and administrative records shall be maintained for a period of three (3) years following the date of the closure of the grant award or audit if required. Time, effort, personnel, and payroll records must be maintained for all individuals reimbursed under the award. Property and equipment records shall be maintained for a period of three (3) years following the final disposition, replacement, or transfer of the property and equipment. (P) Performance Measures: Quarterly Progress Reports shall demonstrate performance and progress relative to: 1. Acceptable performance on applicable critical tasks in Exercises using approved scenarios 2. Progress in achieving project timelines and milestones identified in the Quarterly Activities Plan 3. Percent measurable progress toward completion of the project 4. How funds have been expended during the reporting period, and explain expenditures related to the project (Q) Subrecipient Monitoring Policy: Periodic monitoring is required to ensure that program goals, objectives, timelines, budgets, and other related program criteria are met. DHS&EM reserves the right to periodically monitor, review, and conduct analysis of the City of Seward's financial, programmatic, and administrative policies and procedures, such as, accounting for receipts and expenditures, cash management, maintaining adequate financial records, means of allocating and tracking costs, contracting and procurement policies and records, payroll records and means of allocating staff costs, property/equipment management system(s), progress of project activities, etc. This may include desk and field audits. Technical assistance is available from DHS&EM staff. The Monitoring Policy is available in the Grants Management Handbook. (R) Penalty for Non -Compliance: For the reasons listed below, special conditions may be imposed, reimbursements may be partially or wholly withheld, the award may be wholly or partly suspended or terminated, or future awards, reimbursements, and award modifications may be withheld. DHS&EM may institute the following, but is not limited to, withholding authority to proceed to the next phase of a project, requiring additional or more detailed financial reports, additional project monitoring, and/or establishing additional prior approvals. DHS&EM shall notify the City of Seward of its decision in writing, stating the nature and the reason for imposing the conditions/restrictions, the corrective action required and the timeline to remove them, and the method of requesting reconsideration of the imposed conditions/restrictions. The City of Seward must respond within five (5) days of receipt of notification: 1. Unwillingness or inability to attain project goals 2. Unwillingness or inability to adhere to Special Conditions or Grant Assurances. 3. Failure or inability to adhere to grant guidelines and federal compliance requirements 4. Improper procedures regarding contracts and procurements 5. Inability to submit reliable and/or timely reports 6. Management systems which do not meet federally required management standards (S) Termination for Cause: If performance is not occurring as agreed, the award may be reduced or terminated without compensation for reduction or termination costs. DHS&EM will provide five (5) days' notice to the City of Seward stating the reasons for the action, steps taken to correct the problems, and the commencement date of the reduction or termination. DHS&EM will reimburse the City of Seward only for acceptable work or deliverables and necessary and allowable costs incurred through the date of reduction or termination. Final payment may be withheld at the discretion of DHS&EM until a final DHS&EM review is completed. Any equipment purchased under a terminated grant may revert to DHS&EM at the option of DHS&EM. (T) Termination for Convenience: Any project may be terminated upon convenience, in whole or in part, for the convenience of the Government. The U.S. Department of Commerce and the DHS&EM, by written notice, may terminate 54 Resolution 2024-036 this grant, in whole or in part, when it is in the Government's interest. Allowable costs obligated and/or incurred through the date of termination shall be reimbursed. Any equipment purchased under a terminated grant may revert to DHS&EM at the option of DHS&EM. (U) Protect Implementation: Due to the competitiveness of the 2022 State and Local Cybersecurity Grant Program, approved projects must be ready —to —go. Project implementation shall begin within the first reporting quarter. 1. If a project cannot be operational within the first reporting quarter of the approved award date, the subrecipient should notify DHS&EM of the implementation delay and expected starting date. At the discretion of DHS&EM, the grant award is subject to cancellation, and funds may be de -obligated and reallocated to other projects if project implementation is unjustifiably delayed. (V) The City of Seward shall comply with the requirements and restrictions of the Federal Fiscal Year (FF() 2022 State and Local Cybersecurity Grant Program (SLCGP) Guidance, State Overview and Guidelines, State Preparedness Report, and the State Homeland Security Strategy. By signing this obligating award document, the City of Seward certifies it has read, understood, and accepted these documents as binding. (W) No funds will be reimbursed until City of Seward fiscal and programmatic representatives attend a Grant Kick —Off Meeting to be held electronically in April 2024. (X) The City of Seward must complete a Quarterly Activities Plan by July 20, 2024. Information on this requirement will be emailed and provided at the Grant Kick —Off meeting. (Y) The City of Seward must complete the Nationwide Cybersecurity Review (NCSR) by December 31, 2024. More information on this online self -assessment will be provided at the 2022 Kick -Off Meeting and can be found in the 2023 SLCGP NOFO: DHS&EM I State and Local Cybersecuritv Grant Program (SLCGPI (alaska.govl. (Z) The City of Seward must register for the Cyber Hygiene Services by December 31, 2024. More information on this service will be provided at the Kick -Off Meeting and can be found in the 2023 SLCGP NOFO: DHS&EM I State and Local Cvbersecuritv Grant Program (SLCGPI (alaska.gov). Special Conditions None We certify we have read, understood, and accept the Grant Terms and Conditions, the Grant Requirements, and Assurances and Agreements, and Special Conditions in accordance with this Award. Project Manager's Signature tl Chief Fin Rcial O icer's Signature re Signs Official's Signature 55 Resolution 2024-036 Project Budget Details 2022 State and Local Cybersecurity Grant Program Seward, City of Reported Revision 0 PBD 1 Expense Category Plan.Org Solution Area Discipline Plans.Protocols Cyber Security State: Federal: Budgeted PBD Cost Amount Spent $4,000.00 $0.00 $36,000.00 $0.00 PBD Balance $4,000.00 DEHP ['Canceled ❑BABAA $36,000.00 Item_ Cybersecurity Risk Assessment Description: Conduct cybersecurity risk assessments to identify existing cybersecurity gaps, risks, and threats. Ipvestment:.Objective 1 - Develop 8 establish appropriate govemance structures, including by devetoping, Implementing, or revising Cybersecurity Plans. State: Federal; Grand Total Adjusted Grant Total $4,000.00 $36,000.00 $40,000.00 Total PBD Allocations Total Expenses $4,000.00 $0.00 $36,000.00 $0.00 $40,000.00 $0.00 Summary Balance $4,000.00 $36,000.00 $40,000.00 02/22/2024 Page 1 of 1 56 2022 SLCGP Quarterly Activities Plan Resolution 2024-036 City of Seward Provide milestones (bullets) for each Project Budget Details # (PBD#) in each quarter to implement the approved project. Reminder: Project implementation must begin within 90 days of award date. PBD#1— Cybersecurity Risk Assessment va.rr '. FFY Milestone Bullets 24-Q2 Receive grant funds and get approval for purchase of assessment from 24-Q3 Work with Structured to complete the assessment 24-Q4 Review the assessment results and discus plans to implement recomendations 25-Q 1 25-Q2 25-Q3 25-Q4 26-Q 1 Quarters Dates FFY24-Q2 02/01/24 — 03/31/24 FFY24-Q3 04/01/24 — 06/30/24 FFY24-Q4 07/01/24 — 09/30/24 FFY25-Q1 10/01/24 —12/31 /24 Quarters Dates FFY25-Q2 01 /01 /25 — 03/31 /25 FFY25-Q3 04/01/25 — 06/30/25 FFY25-04 07/01/25 — 09/30/25 F FY26-Q 1 10/01/25 —12/31 /25 57 Resolution 2024-037 RESOLUTION 2024-037 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING RENAMING THE EAST PORTION OF THE NORTH/SOUTH RIGHT-OF-WAY CURRENTLY KNOWN AS OLYMPIA ROAD TO PHOENIX ROAD, LOCATED WITHIN THE GATEWAY SUBDIVISION HILLTOP ADDITION AND THE GATEWAY SUBDIVISION ADDITION NO. 2 Documents: • Agenda Statement • Resolution 2024-037 • Attachments: o Street Location Map o Plat map — Gateway Subdivision Hilltop Addition (2023) o Plat map — Gateway Subdivision Addition No. 2 (2013) o Plat map — Gateway Subdivision Addition No. 1 (1985) o Plat map — Gateway Subdivision (1984) 58 Resolution 2024-037 City Council Agenda Statement Meeting Date: July 8, 2024 To: City Council Through: Kat Sorensen, City Manager From: Planning and Zoning Commission Subject: Resolution 2024-037: Approving Renaming the East Portion of the North/South Right -Of -Way Currently Known as Olympia Road to Phoenix Road, Located Within the Gateway Subdivision Hilltop Addition and the Gateway Subdivision Addition No. 2 Background and justification: Prior to 2023, Tract C4 of the Gateway Subdivision Addition No. 2 was a 21.3-acre parcel of unsubdivided land located between the north end of Dora Way and Phoenix Road and the south end of Afognak Ave. The west side of the parcel was bounded by Olympia Road, but there was not a designated right-of-way on the east side of the property to connect Phoenix Road to the northern portion of Olympia Road. In 2023, the owners of Tract C4, Hilltop Properties LLC, subdivided the parcel, creating 87 lots and three rights -of -way. One of the rights -of -way that was established in this subdivision connected the north side of Phoenix Road to the north portion of Olympia Road that extends past the Afognak Ave intersection. This middle segment of right-of-way was given the name of Olympia Road to maintain continuity with the north segment of Olympia Road since the Gateway Subdivision Hilltop Addition plat could only address the name of the undesignated, middle portion of this previously incomplete right-of-way. It is a natural flow of continuity that supports emergency 911 response to allow Phoenix Road to continue north through the Hilltop Addition and connect all the way to Afognak Ave. This would create a three-way intersection, turning onto Afognak Ave to the north and Olympia Road to the southwest. The south end of Olympia Road would continue east along the south side of the Hilltop Addition and connect to Phoenix Road at a T intersection, that would allow an individual to turn north or south onto Phoenix Road. A review of past recorded plats for the Gateway Subdivision shows that as the land has been developed and subdivided, various rights -of -ways have been left incomplete, and then named and renamed as new rights -of -ways have been developed. The parcels affected by this proposed street rename are all undeveloped and the majority of them not addressed. The property owners that would be affected by the renaming of Olympia Road to 59 Resolution 2024-037 Phoenix Road have been notified of this proposed action and have expressed support for the rename. On July 2nd, 2024, the Planning and Zoning Commission approved Resolution 2024-015, recommending City Council approve renaming the east portion of the north/south right-of-way currently known as Olympia Road to Phoenix Road. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Vol 1, 2.2.9 Public Safety — "Maintain an effective public safety communications network in Seward, including an enhanced emergency 911 system and corrected street addresses." Strategic Plan: 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 $ Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Yes Electric Water Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Attorney Review Attorney Signature: Not applicable Comments: • Administration Recommendation Adopt Resolution Other: 60 Resolution 2024-037 Sponsored by: Planning and Zoning Commission CITY OF SEWARD, ALASKA RESOLUTION 2024-037 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING RENAMING THE EAST PORTION OF THE NORTH/SOUTH RIGHT-OF-WAY CURRENTLY KNOWN AS OLYMPIA ROAD TO PHOENIX ROAD, LOCATED WITHIN THE GATEWAY SUBDIVISION HILLTOP ADDITION AND THE GATEWAY SUBDIVISION ADDITION NO. 2 WHEREAS, the Gateway Subdivision Hilltop Addition, Plat #2023-014 was approved by the Kenai Peninsula Borough Planning Commission on April 10, 2023, and given final approval on February 14, 2024; and WHEREAS, the Gateway Subdivision Hilltop Addition Subdivided Tract C-4 of the Gateway Subdivision Addition No. 2 into 87 lots and three rights -of -way; and WHEREAS, one of the rights -of -way that was established in the plat connected the north side of Phoenix Road to the north portion of Olympia Road that extends past the Afognak Ave intersection; and WHEREAS, this middle segment of right-of-way was given the name of Olympia Road to maintain continuity with the north segment of Olympia Road since the Gateway Subdivision Hilltop Addition could only address the undesignated, middle portion of this previously incomplete right-of-way; and WHEREAS, this portion of right-of-way designated as Olympia Road causes an unnatural end to Phoenix Road; and WHEREAS, it would maintain better continuity to Phoenix Road if that right-of-way were to continue through the eastern portion of the Hilltop Addition and end at the Afognak Ave, Olympia Rd intersection on the north end of the subdivision; and WHEREAS, there are two intersections along the Olympia Road right-of-way where it could naturally end rather than circling around the entire subdivision; and WHEREAS, the continuity of Phoenix Road supports emergency 911 response; and WHEREAS, the owners of the adjacent lots to this portion of right-of-way have been notified and expressed support to have the road renamed from Olympia Road to Phoenix Road; and WHEREAS, past plats for the Gateway Subdivision show that the names of various rights - of -ways have been changed as the land has been subdivided and rights -of -ways have been established and connected; and 61 Resolution 2024-037 CITY OF SEWARD, ALASKA RESOLUTION 2024-037 WHEREAS, on July 2, 2024, the Planning and Zoning Commission approved Resolution 2024-015, recommending City Council approve renaming the east portion of the north/south right- of-way currently known as Olympia Road to Phoenix Road; and WHEREAS, the Kenai Peninsula Borough requires approval from the city council to rename a right-of-way within Seward city limits NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Council hereby approves renaming the eastern portion of Olympia Road in the Gateway Subdivision Addition No. 2 and Hilltop Addition to Phoenix Road. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 8th day of July 2024. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 62 ■ n C're r aire IN Wm.. 'NO y Fat Raz Elw irird II 250 feet SOIuti Ugagaaigal " 'VOIR Context Map MOUNTAIN SCHOOL RES 2024-015- Renaming the east portion of the north/south right-of-way currently known as Olympia Road to Phoenix Road Location: Gateway Subdivision, Hilltop Addition and Addition No. 2 Parcel #: NA 63 Resolution 2024-037 8 0 8 ! Ml6 z U a i z 0 0 0 a 0 A b 8 N n O N U nm ° J I N F 0 31- 6uuoag ;o slsog N I .1Z'£16 00T16 3.0,.SLOON) / " ♦ N U / 0 / N is n t0 ✓� /16ry6N � Ly bah v[ s ® u 7°14i 'IL9LB2�6. •O 2 1/2' BRASS CAP MON. 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I$89'41'39 E 1133.08' le / 7 'D •_ .fo'es4 3.vrzfes Noo y3 Jm o ; o L_N_m 2 E 01 0 8 0 ,.y.rok K C (iv i 'te i S } Y aot420 t.- �o 2 (— e`er 144 N. Binkley Street, Soldotna, Alaska 99669 ® (907) 714-2170 ® (907) 714-2376 Fax Peter A. Micciche Borough Mayor CERTIFICATE OF TAX DEPARTMENT olan Scarlett, Property Tax and Collections Manager for the Kenai Peninsula Borough, do hereby fy that all real property taxes levied by the Kenai Peninsula Borough through December 31, 2023 been paid for the area(s) described as: livision: Gateway Subdivision Hilltop Addition el # 14535151 N R 1 W SEC 33 Seward Meridian SW 2013016 GATEWAY SUB ADDN NO 2 TRACTS ;5,C6&C7 TRACT C-4 tve January 1, 2024, estimated taxes of $6075.40 were paid on the above property(s). However, e estimated taxes are Tess than the actual amounts levied on July 1, 2024, the difference is a lien nst the property(s) until paid. ess my hand and seal this 6th day of February, 2024. *Zoixot Sca&tt Nolan Scarlett Property Tax and Collections Manager 66 (15-L00L) Ynid 101135 01111093 31103 63031 ON01 <Y HOISIAIO3115 :3110H 331 35531 s$ 8 50V8L el d^z T133818 M101W31 ;;3 wr.11.5 .Kf N \ 4. d 9a C)1 (roo3..a a....,. A (IL-LOOZ) to id 1V1d311 A11110tld :i1:H:? 1.1531 ONO] NOISIAIO6NS 3155i :331 :35S::f 0 10111L (6-SR 1Vld) ONI18V39 JO SISV9 �:�----- (8)66'30 (N) .cords M.Lr.9Loos oo. (ro3an. . � I • 01 6 77 67 • L.i hgi Wgig,gy �9a 0L-L005) ld !VIM A111DTA 3uy:) ;) He! ONO] 11015101060S 3WOH 331 35531 tl 10661 (oOo .oes =il 7 Iw I I alb" I mla I I —LJ_J- a 4 R I 8 X ? „ = " 8_m 8 8, I i'1 ii'?4 an$ Rgs s§gg -ss �$ s 6 R o,. 3 S_ a 4 4 v000 0000000 i g 6 "#8868§{gp84 E,R'-RR#6RaRR?aga., , y p 8 sg V p 8 S 8' R '^ o x 4c8's888a6 i' 8 8 i i p p 7i 8 F i. 8 ul 8 z G 5 o t3 g kg-glg ' R R 5 R R: gg R R. $ R 8' g S i. h s g � F -A 6 n ^ T ,� -' rt srt N S 3 g$ S ERE&E 0 8 3 E 8 1818E€€E'. 8 8 8 8 6 L g 0 u ce,Aietret ReeQrcJv?ql nt��p/?A24 °3L Z013 KENAI PENINSULA °ROUGH 144 North Binkley Street ® Soldotna, Alaska 99669-7520 Toll -free within the Borough: 1-800-478-4441 PHONE: (907) 262-4441 • FAX: (907) 262-1892 www.borough.kenai.ak.us MIKE NAVARRE BOROUGH MAYOR CERTIFICATE OF TAX DEPARTMENT honda K. Krohn, Property Tax and Collections Supervisor for the Kenai nsula Borough, do hereby certify that, as of the date of this certificate, real property taxes levied by the Kenai Peninsula Borough have been paid the area(s) described as: ivision: GATEWAY SUBDIVISON ADDITION NO. 2 el # 14535102 R 1W SEC 33 Seward Meridian SW 0850009 GATEWAY SUB ADDN NO 1 TRACT C-1 following assessments (except assessments for the cities of Homer, Kenai, rd, Seldovia, and Soldotna) levied against this property are outstanding: ess my hand and seal this 7th day of November, 2013. Rhonda K. 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I MILE [03-10 P.M All ,CANY e4-4I Pepe 11—hg MS' Resolution 2024-038 RESOLUTION 2024-038 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH ELECTRIC POWER SYSTEMS INC. IN THE AMOUNT OF $115,849.60 PLUS A 10% CONTINGENCY FOR UPGRADES AT THE FORT RAYMOND SUBSTATION Documents: • Agenda Statement • Resolution 2024-038 • Attachments: o Electric Powers Systems Inc. Proposal o Resolution 2021-104 71 Resolution 2024-038 City Council Agenda Statement Meeting Date: July 8, 2024 To: City Council Through: Kat Sorensen, City Manager From: Brian Hickey, Electric General Manager Subject: Resolution 2024-038; Authorizing the City Manager to Enter into an Agreement with Electric Power Systems Inc. in the Amount of $115,849.60 Plus a 10% Continency For Upgrades at the Fort Raymond Substation Background and justification: The Electric Department had been engaged in a multi -year program to rebuild and upgrade the City's aging electrical infrastructure. The City Council approved the program in 2021 with Resolution 2021-104. Electric Power Systems Inc. (EPS) was selected to complete the infrastructure upgrades at the Fort Raymond Substation. Commissioning and inspection of the newly installed infrastructure is required to assure safe and reliable operation of the system. EPS has estimated the effort for setting development, SCADA integration, pre-energization checkout, and commissioning not to exceed $115,849.60 plus a 10 % contingency. Funding in the amount not to exceed $127,434.56 is hereby transferred from Account 15000- 0000-3710 transferred out to the Electric Infrastructure Project Fund 15340-0000-3700 transferred and appropriated into the Contracted Services account 15340-0000-7009 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 2.2.8 City Government -Create a funding mechanism for the repair and replacement of city infrastructure Page 8 Expand customer base within the Seward Utility area Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 127,434.56 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): $ $ 127,434.56 $ 72 Resolution 2024-038 Not budgeted Not applicable Affected Fund (✓): General Boat Harbor Motor Pool Yes SMIC Parking Other Electric Water Wastewater Healthcare Note: amounts are unaudited Total Unrestricted Net Position $ 8,543,583.40 Attorney Signature: Not applicable Comments: Finance Director Signature: Attorney Review 5)Leit 9ezdz" Administration Recommendation Adopt Resolution Other: 73 Sponsored by: Kat Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2024-038 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH ELECTRIC POWER SYSTEMS INC. IN THE AMOUNT OF $115,849.60 PLUS A 10% CONTINGENCY FOR UPGRADES AT THE FORT RAYMOND SUBSTATION WHEREAS, the Electric Department has engaged in a multi -year program to rebuild and upgrade the City's aging electrical infrastructure; and WHEREAS, the City Council approved this program in 2021 with resolution 2021-104; and WHEREAS, Electric Power Systems Inc. (EPS) was selected to complete the infrastructure upgrades at Fort Raymond substation; and WHEREAS, commissioning and inspection of the newly installed infrastructure is required to assure safe and reliable operation of the system; and WHEREAS, EPS has estimated the effort for settings development, SCADA integration, pre- energization check out, and commissioning not to exceed 115,849.60; and WHEREAS, these funds are in the approved FY23-24 budget under account 15000-3010-7009. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to enter into a purchase agreement with: Electric Power System in the amount of $115,849.60 plus 10% contingency. Section 2. Funding in the amount not to exceed $127,434.56 is hereby transferred from Account 15000-0000-3710 transferred out to the Electric Infrastructure Project Fund 15340-0000-3700 transferred and appropriated into the Contracted Services account 15340-0000-7009. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 8th day of July 2024. THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 74 Resolution 2024-038 CITY OF SEWARD, ALASKA RESOLUTION 2024-038 AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) 75 240Iectrk Power S s- E,. Consulting Engineers SYSTEMS City of Seward Attn: James Unrein 410 Adams St. P.O. Box 167 Seward, AK 99664 Resolution 2024-038 May 2nd, 2024 Subject: Ft. Raymond Main Substation Pre-Energization Testing, SCADA/Relay Settings Development. Mr. Unrein, Electric Power Systems Inc. (EPS) is pleased to present the City of Seward (COS) with a quote for services that are required to be able to put the new 115kV equipment into service. In general, the services include: 1. Development of protective settings for the SEL-787's, 311 C and 751. 2. Integration of the new transformers, circuit switchers, and circuit breaker into the existing SCADA system. 3. Pre-Energization Electrical Testing of the following: a. SF6 Breaker b. Disconnect Switches c. 115kV PT's d. Circuit Switchers e. Transformer LTC Controller programming and functional checkout f. Control Panel device functional checkout 4. Energization Checks EPS proposes to provide the above services for a total estimated cost of $115,849.60. This estimate is valid for work through 12/31/24. The actual charges will be billed per the EPS/EPC Time and Material Rate Sheets that follow. This estimate will not be exceeded without client's approval. If you need any additional information, please call me at (907) 646-5166 or email me at klang-gillming@epsinc.com. Sincerely, Kellin Lang-Gillming www.epsinc.com PHONE (907) 522-1953 13305 ARCTIC BLVD., SUITE 201, ANCHORAGE, ALASKA 99503 I FAX (907) 522-1182 PHONE (907) 789-2474 12213 JORDAN AVM JUNEAU, ALASKA 99801 I FAX (907) 789-4939 PHONE (425) 883-2833 14020 148th AVE. N.E., SUITE C, REDMOND, WASHINGTON 98052 I FAX (425) 883-8492 Resolution 2024-038 1 1 E Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2021-104 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, DECLARING ITS INTENTION TO REIMBURSE ITSELF FROM PROCEEDS OF ONE OR MORE TAX-EXEMPT FINANCINGS FOR CERTAIN EXPENDITURES MADE/OR TO BE MADE IN CONNECTION WITH THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF CERTAIN ELECTRIC SYSTEM CAPITAL IMPROVEMENTS WHEREAS, the City of Seward, Alaska ("City") owns, operates, and maintains an electric system ("System") which needs certain additions, improvements and extensions, as more fully described in Appendix A attached hereto, ("Capital Projects"); and WHEREAS, the City will pay on and after the date hereof (or has paid beginning no earlier than the 60 days prior to adoption of this resolution) certain expenditures ("Expenditures") in connection with the Capital Projects; and WHEREAS, the City Council has determined that the money to be advanced on and after the date hereof (or previously advanced no more than the 60 days prior to adoption of this resolution) to pay Expenditures are available only for a temporary period and it is necessary to reimburse the City for the Expenditures from proceeds of one or more issues of tax-exempt bonds ("Bonds"). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City hereby officially declares its intent under Treas. Regs. Section 1.150- 2 to reimburse the City with proceeds of the Bonds for Expenditures with respect to the Capital Projects made no more than 60 days prior to the date hereof. The City reasonably expects on the date hereof that it will reimburse the Expenditures with proceeds of Bonds. Section 2. Each Expenditure was and will be of a type properly chargeable to a capital account under general federal income tax principles (determined in each case as of the date of the Expenditure). Section 3. The maximum cost of the Capital Project is expected to be no greater than $18 million. Section 4. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13`11 day of September, 2021. 77 Resolution 2024-038 CITY OF SEWARD, ALASKA RESOLUTION 2021-104 ► E IT P 61 -r 1 1 risty Terry, ► ' AYES: Seese, Baclaan, Casagranda, McClure, DeMoss, Os- z . NOES: None - ABSENT: None ABSTAIN: None ATTEST: Brenda J. Ballo City Clerk (City Seal) ASKA 78 Resolution 2024-038 City Council Agenda Statement Meeting Date: September 13, 2021 To: City Council From: Janette Bower, City Manager Agenda Item: Resolution 2021-104 Declaring Its Intention to Reimburse Itself from Proceeds of One or More Tax -Exempt Financings for Certain Expenditures Made/Or to be Made in Connection with the Acquisition, Construction and Equipping of Certain Electric System Capital Improvements Background and justification: On July 26, 2021, the Electric Department delivered a presentation to City Council which demonstrated the condition of the deteriorating electrical transmission system. In order to address the critical infrastructure needs, a major capital improvement project has been identified. All costs for the project, including labor and material, have been identified and evaluated by an engineer. The total cost of the project is estimated to be $19.4 million, which includes labor. Funding sources have been researched by Finance and it has been determined that a revenue bond is the best financing option for funding the large project due to the long-term debt structure of the bond. The City has applied for a revenue bond, through the Alaska Municipal Bond Bank Authority, in the amount of $18 million to fund the project. Prior to the approval of the City's application, the City's Bond Counsel recommends the City pass a resolution declaring the intention to seek reimbursement for qualifying preliminary project costs with bond proceeds for expenses incurred before the bond is issued. The Internal Revenue Code provides the ability for reimbursement of qualifying preliminary expenditures. However, any prolonged delay in issuing the bond could result in project costs being solely paid for by the City without reimbursement. This reimbursement resolution provides a mechanism to allow for reimbursement of certain costs to be paid with proceeds of the City's tax-exempt bond. Consistency checklist: Comprehensive Plan: N/A Strategic Plan: N/A Other: N/A Fiscal note: There is no cost associated with this resolution. Preliminary expenditures will be spent out of Electric Fund reserves with the intent of reimbursement after the issuance of the bond. Finance Department approval: (26]1�� Attorney Review: 79 Resolution 2024-038 Yes No Not applicable Recommendation City Council adoption of Resolution 2021-104. 80 Resolution 2024-038 APPENDIX A Description of Capital Projects Each project referenced below constitute capital improvements, which are, or will be, owned, operated and maintained by the City of Seward. • Nash Road transmission upgrades and extensions, including addition of 1.3 miles of under -build to connect Nash Road distribution to SMIC substation and replacement of tangent poles. • Seward Highway transmission equipment replacement and upgrades. • Lawing, Fort Raymond and SMIC substations transmission replacements and upgrades. • Primrose transformer replacement and upgrades. • Victor Creek transformer replacement and upgrades. • Spring Creek substation upgrades. • Harbor substation upgrades. 81 Resolution 2024-039 RESOLUTION 2024-039 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A LEASE ASSIGNMENT OF LEASE 2000-02 FROM THE ESTATE OF JAMES T. PRUITT, SUCCESSOR IN INTEREST TO JAMES T. PRUITT (LESSEE) TO HARBOR GATEWAY, INC. AN ALASKA DOMESTIC CORPORATION Documents: • Agenda Statement • Resolution 2024-039 • Attachments: o Consent to Assignment of Lease 2000-02 82 Resolution 2024-039 City Council Agenda Statement Meeting Date: July 8, 2024 To: City Council Through: Kat Sorensen, City Manager From: Tony Sieminski, Harbormaster Subject: Resolution 2024-039: Approving a Lease Assignment of Lease 2000-02 from the Estate of James T. Pruitt, Successor in Interest to James T. Pruitt (Lessee) to Harbor Gateway, Inc. an Alaska Domestic Corporation Background and justification: Jim Pruitt (Lessee) has leased and operated Gateway Texaco since May 1, 1984, and has made many improvements to the property. The latest council approved Amendment was effective December 14, 2000, referred to as 2000-02. On October 29, 2022, Jim Pruitt passed away. The City was contacted on July 11, 2023, by Tracie Allene Williams (Executor) and asked to consent to remove Jim Pruitt from the lease and add Gateway Harbor, Inc. as the sole lessee. The current lease L2000-02 will expire on August 23, 2030. Originally, there were discussions with the management of Gateway Harbor, Inc. (Tracie Allene Williams and Craig Thomas Pruitt) on a lease amendment and extension. The amendment would have provided for interim rental adjustments to adjust rental rates annually and would have added a twenty-three (23) year lease extension which would make the lease term end date September 30, 2053. The interim rental adjustment is a standard provision contained in most new and renegotiated leases with the City. Ultimately, the parties were not able to come to an agreement on the amendment. While the current City policy is to have more frequent rental adjustments, having one definitive lessee, rather than the Estate of Jim Pruitt, deceased, presents less contractual risk to the City. Options to extend the term under the Lease require Council approval. Due to the relatively short remaining term (six years) and the need for a more definitive lessee, management determined to recommend approval of the Assignment to the Council. In 2030, at the time of the renewal, if the City's preference for leases with interim rental adjustments remains, the Council can elect not to exercise the contract option and terminate the lease. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Attract new business and industry to the greater Seward area. Strategic Plan: Attract New Industry: Develop an aggressive marketing campaign, which highlights the diverse resources, and quality of life that make Seward a great place to live and establish a business or industry. Other: 83 Resolution 2024-039 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 $ 0 Fund Balance Information Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Yes Electric Water Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Attorney Review Attorney Signature: /s/ Kody P. George Not applicable Comments: Administration Recommendation Adopt Resolution Other: 84 Resolution 2024-039 Sponsored by: Sieminski CITY OF SEWARD, ALASKA RESOLUTION 2024-039 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A LEASE ASSIGNMENT OF LEASE 2000-02 FROM THE ESTATE OF JAMES T. PRUITT, SUCCESSOR IN INTEREST TO JAMES T. PRUITT (LESSEE) TO HARBOR GATEWAY, INC. AN ALASKA DOMESTIC CORPORATION WHEREAS, the City is owner of real property described as Lot 1, Block 10, Seward Small Boat Harbor Subdivision, City of Seward, Alaska and recorded as Plat No. 2000-19 in the Seward Recording District, Third Judicial District, State of Alaska; and WHEREAS, this parcel was leased to James T. Pruitt in 2000 for a term of thirty years which expires on August 23, 2030, pursuant to the terms of that certain Restated Lease Agreement effective December 14, 2000 ("the Lease"); and WHEREAS, Article 2.5 of the Lease provided the Lessee an option to extend the term of the Lease for two (2) additional five (5) year terms subject to City Council approval; and WHEREAS, James T. Pruitt passed away on October 29, 2022; and WHEREAS, Tracie Allene Williams as Personal Representative of the Lessee would like to fully assign the Lease to Harbor Gateway, Inc. ("Assignee"), an Alaska domestic corporation ("the Assignment"); and WHEREAS, Article 14 of the Lease provides that the Lessee shall have the right to assign the Lease upon the prior written consent of the City of Seward; and WHEREAS, the current policy of the City is to not extend or modify any leases unless they include an interim rental adjustment that allows the City to adjust rates annually; and WHEREAS, the Parties could not come to an agreement upon an amendment to the Lease effectuating the City's policy on interim rental adjustments; and WHEREAS, the benefits of granting the Assignment outweigh allowing the Lease to continue under the current Lessee (Estate of James T. Pruitt); and WHEREAS, the City Council at the time Assignee requests to utilize the option to extend may decide against an extension pursuant to Article 2.5(d) of the Lease; and WHEREAS, granting the Assignment is in the public interest and consistent with the City's Comprehensive Plan and the Strategic Plan. 85 Resolution 2024-039 CITY OF SEWARD, ALASKA RESOLUTION 2024-039 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to consent to the Assignment in substantially the form attached hereto which is found to be in the public's interest. Section 2. This resolution shall take effect 30 days from the date and posting of adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8th day of July 2024. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 86 Resolution 2024-039 CONSENT TO ASSIGNMENT OF LEASE Lease 2000-02 RECITALS A. The City and the Estate of James Thomas Pruit as successor in interest to James Pruitt are parties to that certain Lease Agreement RE-84-043 dated as of May 1, 1984 and Amended effective December 14, 2000 by that certain Restated Lease Agreement, as evidenced by that certain Memorandum of Lease recorded April 4, 2004 as Serial No. 2004-001074-0 ("the Lease"). B. The legal description of the leased property is: Lot 1, Block 10, Seward Small Boat Harbor Subdivision, City of Seward, Alaska, Plat No. 2000-19, Seward Recording District, Third Judicial District, State of Alaska C. The Estate of James Thomas Pruitt, through Personal Representative Tracie Allene Williams (Exhibit A — Certificate of Death dated October 29, 2022 and Letters of Administration dated November 15, 2022) has asked the City to consent to the assignment of all of the Estate's right, title, and interest in the Lease to Harbor Gateway, Inc. and has signed a proposed Assignment of Leasehold Interest dated March 22, 2024 (Exhibit B — Assignment of Leasehold Interest) for the City's approval and consent. CONSENT TO ASSIGNMENT Upon the effectiveness of Resolution 2024- approved by the City Council (Exhibit C), the City of Seward and pursuant to Article 14 of the Lease, the City hereby consents to the assignment of the Estate of James Thomas Pruitt's right, title, and interest in and to the Lease to Harbor Gateway, Inc. and its assumption of all of the obligations of the Estate of James Thomas Pruitt dated March 22, 2024 (the assignment and assumption of the Agreement is collectively referred to herein as the "Assignment"). Following the Assignment, the Lease shall continue in full force and effect with Harbor Gateway, Inc. substituted for the Estate of James Pruitt successor in interest to James Pruitt, as applicable. The undersigned has executed this Consent to Assignment as of the date set forth on the signature page below. Page 1 of 2 87 Resolution 2024-039 [SIGNATURE PAGE] CITY OF SEWARD Date: By: Kathleen Sorenson, City Manager ATTEST: Kris Peck, City Clerk STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of 2024, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared Kathleen Sorenson, known to me and to me known to be the City Manager of the City of Seward, Alaska, and authorized to execute documents on its behalf, and is the individual named in and who executed the foregoing document on behalf of the City of Seward for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written. Notary Public in and for Alaska My Commission Expires: Page 2 of 2 88 (Sr. -ATE !) ,' :1 f ,. "ASK 'I'li'It.r�'1'i4)"r'(iI' l l'l':I. (I'(:t1iI3$-`' STATE OF ALASKA ALASKA DEPARTMENT OF HEALTH - BUREAU OF VITAL STATISTICS P O. Box 110675. Juneau, AK 99811-0675 Resolution 202.4-03 DATE FILED 11/0112022 CERTIFICATE OF DEATH STATE FILE NO. 2022004211 1 i7FCEOE14' LEGAL NAME ifn a AKA's :f aryl iFyrst, 3,14dtils, Lasi! 2 SEX 3 SOCIAL SECURITY RLIMpER ,TAMES THOMAS PRUIT;I' MALE 15 20 25 27 29 31 37 ivA 40 43 47 Ili ' u Ot 7'h1 I CERTIFY THAT THIS IS A TRUE. FULLLAND CORRECT GOPY OF THE ORIGINAL CERTIFICATE ON FILE IN THE BUREAU OF VITAL STATISTICS. DEPARTMENT OF HEALTH AND SOCIAL SERVICES. JUNEAU, ALASKA, DATE ISSUED November 2, 2022 State Registr r This copy not valid unless preraraclCn engraved border displaytnq the date. sea/ and 5hgnature of the Alaska Slate Registrar. t Resolution 2024-039 Chelsea Ray Riekkola Alaska Bar Assoc. Member #1406061 FOLEY & PEARSON, P.C. 4300 B Street, Suite 400 Anchorage, AK 99503 (907) 522-2272 chelsea@foleypearson.com IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT AT ANCHORAGE In the Matter of the Estate ) ) of ) ) James Thomas Pruitt, ) ) Deceased. ) ) Case No. 3AN- a a 7PR LETTERS OF ADMINISTRATION The Statement of Informal Appointment of Personal Representative having been signed by the Probate Master, Tracie A. Williams is appointed Personal Representative of the estate. Date Estate of James Thomas Pruitt 3AN - LZ 7'? 9- PR Letters of Administration Page 1 of 3 may.47 - yip `' " 'D. • Probate Master v 4. 'frja._': A` - - 90 Resolution 2024-039 ACCEPTANCE 1, Tracie A. Williams, accept the duties and promise to perform the duties as required by law of the office of Personal Representative of the Estate of James Thomas Pruitt. I acknowledge my duty as Personal Representative to: (a) take possession and control of decedent's property as required by AS 13.16.380, determine the liabilities of the estate, and complete an inventory as required by AS 13.16.365; (b) provide notice to heirs and devisees as required by AS 13.16.360, except as provided by AS 13.16.690; (c) provide notice to creditors as required by law, publish notice when required, and review and either accept or reject claims as required by AS 13.16.455-.515; (d) advise the court in writing of my address and telephone number as required by Probate Rule 8; (e) pay homestead, exempt property and family allowances as required by AS 13.12.401-.405, costs of administration and other claims as required by AS 13.16.470, and distribute the assets of the estate; and (f) close the estate as soon as appropriate as required by AS 13.16.620-.670. 1 will file any required bond. 11-t -ooaa Date Estate of James Thomas Pruitt 3AN-02 ,2:7 L? PR Letters of Administration Page 2 of 3 \Q - Tracie A. Williams, Personal Representative Address: P.O Box 121 Seward, AK 99664 Phone: (907) 362-2209 91 Resolution 2024-039 STATE OF ALASKA THIRD JUDICIAL DISTRICT true. VERIFICATION )ss. Trade A. Williams, being first duly sworn upon oath, deposes and states as follows: I have reviewed the LETTERS OF ADMINISTRATION and believe the same to be Tracie A. Williams SUBSCRIBED AND SWORN to before me this \C. day of 2022, at Anchorage, Alaska. srA'I- OF:1t_r+>I:A - NOTARY PUBLIC (i..-..,a. Krystai M. Morris \'' MyCpmmessIpnEY... s: February 4.211'23 Estate of lames Thomas Pruitt Letters of Administration Page 3 of 3 Notary Public in and for Alaska My Commission Expires: Lam+ 4 0 t1 D v3-3 92 Resolution 2024-039 ASSIGNMENT OF LEASEHOLD INTEREST THIS ASSIGNMENT, entered into between THE ESTATE OF JAMES THOMAS PRUITT, AKA JAMES T. PRUITT, c/o TRACIE A. WILLIAMS, Personal Representative, P.O. Box 944, Seward, Alaska, 99664, assigns its right, title, and interest in the Lease Agreement (hereinafter referred to as the "Lease") entered into on December 14, 2000 (the "Effective Date"), amended April 22, 2004 ("Amendment"), with the City of Seward, hereinafter referred to as the "City", to HARBOR GATEWAY, INC., an Alaska corporation, whose address is P.O. Box 944, Seward, Alaska, 99664, and agree as follows: RECITALS A. TRACIE A. WILLIAMS was appointed Personal Representative of the THE ESTATE OF JAMES THOMAS PRUITT, on November 15, 2022, and is the duly appointed qualified and acting Personal Representative of the above -named estate, having been appointed Personal Representative in informal proceedings in the Anchorage Superior Court, filed under Case No. 3AN-22-02792PR. The THE ESTATE OF JAMES THOMAS PRUITT is the current Lessee, referenced in the Lease, involving the following described real property: LOT ONE (1), BLOCK TEN (10), SEWARD SMALL HARBOR SUBDIVISION, according to Plat 2000-19, filed in the Seward Recording District, Third Judicial District, State of Alaska. B. A complete, accurate, and unaltered copy of the Lease referenced in Recital A, along with the recorded Amendment are attached to this document and incorporated herein as though fully set forth. C. Pursuant to Paragraph 14.3 of the Lease, Assignment to Affiliate, the THE ESTATE OF JAMES THOMAS PRUITT has agreed to assign to HARBOR GATEWAY, INC., all right, title and interest as Lessee in the Lease. HARBOR GATEWAY, INC. has agreed to assume the duties and responsibilities of said Lease. D. The parties formalize their agreement as follows: Page 1 of 3 93 Resolution 2024-039 AGREEMENT 1. THE ESTATE OF JAMES THOMAS PRUITT agrees to and does assign to HARBOR GATEWAY, INC., all right, title, and interest of THE ESTATE OF JAMES THOMAS PRUITT, as Lessee of the Lease, pursuant and subject to Paragraph 14.3 of the Lease. 2. HARBOR GATEWAY, INC. agrees to and does assume all duties and responsibilities of Lessee as Lessee, agrees to protect, OF JAMES THOMAS PRUITT, from obligations of the Lease. of the Lease. HARBOR GATEWAY, INC., indemnify and defend the THE ESTATE the performance of the duties and 3. This agreement shall be binding upon and inure to the benefit of heirs, personal representatives, successors and assigns of the respective parties.. The principles of good faith shall govern the terms of this agreement in all respects, and the parties shall fully cooperate to do all things necessary and appropriate to accomplish the purposes, terms and objectives of this agreement. Not by way of limiting the generality of the foregoing in any way, the parties shall execute all documents, and perform all things appropriate to effectuate the purposes, forms and objects of this agreement. IN WITNESS WHEREOK, the sail,eissimpr has hereunto set its hand and seal this h day of ' ebi'{t, , 2024. SIGNATURE OF ASSIGNOR: EST • T:r' ESTA •F JAMES THOMAS PRUITT TRACIE A. WILLIAMS, ersonal Representative, IN WITNESS WBEREO ', the sai ssigne has hereunto set its hand and seal this ram- day of SIGNATURE OF ASSIGNEE: TEWAY,," TRACIE WILLIAMS, President Page 2 of 3 , 202 Resolution 2024-039 STATE OF ALASKA :SS THIRD JUDICIAL DISTRICT) THIS IS TO CERTIFY that on this day of-,— , 2024, before me the undersigned Notary Public in and for the State of Alaska, personally appeared TRACIE WILLIAMS known to me to be the person named in the foregoing instrument, in her capacity as Personal Representative of THE ESTATE OF JAMES THOMAS PRUITT and President of HARBOR GATEWAY, INC. and acknowledged to me that she executed the same freely and voluntarily for the uses and purposes therein contained. ES WITNESS HEREOF, I have hereunto set my hand and seal the day and year first hereinabove written. 4, �111NIIAIIy/1 eifird"N'ITP NOTARY =, PUBLIC ;'*` Page 3 of 3 NOT6440g104 ate • Alaska My Commission Expires :Q 3 " Z . 95 Resolution 2024-039 RESTATED LEASE AGREEMENT between City of Seward, Alaska and James T. Pruitt Effective Date: December 14, 2000 96 Resolution 2024-039 TABLE OF CONTENTS ARTICLE 1 LEASED LAND 1.1 Description of Leased Land 1.2 Covenant of Quiet Enjoyment; Warranty of Title 1.3 Survey of Leased Land 1.4 Property Accepted "As -is" 1.5 Permits 1.6 Platting ARTICLE 2 LEASE TERM 2.1 Lease Term 2.2 Interim Right to Possession 2.3 Lease Subject to Referendum 2.4 Termination 2.5 Options to Extend ARTICLE 3 - RENTAL RATE 3.1 Initial Rental Rate 3.2 Rental Adjustments 3.3 Procedure for Rental Adjustment 3.4 Effect of Late Appraisal by CITY 3.5 Appraisal by LESSEE 3.6 Effective Date of Adjusted Rental Rate 3.7 Late Payment Charge ARTICLE 4 - USE OF LEASED LAND 4.1 Use of Leased Land 4.2 Obligations of LESSEE 4.3 Adequacy of Public Facilities 4.4 Time for Payment of Utilities and Taxes 4.5 Other Uses ARTICLE 5 - UTILITIES AND RIGHTS OF ACCESS 5.1 Utilities 5.2 Easements ARTICLE 6 - CONSTRUCTION BY LESSEE 6.1 Improvements on Leased Land 6.2 City Review of Construction ARTICLE 7 - RETURN OF LEASED LAND/SITE CONDITIONS 7.1 Return of Leased Land in Original Condition Page i Page 2 Page 2 Page 2 Page 2 Page 2 Page 3 Page 3 Page 4 Page 4 Page 4 Page 4 Page 4 Page 4 Page 5 Page 5 Page 5 Page 5 Page 6 Page 6 Page 7 Page 7 Page 7 Page 7 Page 7 Page 8 Page 9 Page 9 Page 9 Page 9 Page 10 Page 10 Page 10 Page 11 Page 12 Page 12 97 Resolution 2024-039 7.2 Return of Leased Land in Different Condition ARTICLE 8 - FORCE MAJEURE ARTICLE 9 - CITY ACTS OF DEFAULT 9.1 9.2 ARTICLE 10 - REMEDIES FOR CITY'S ACTS OF DEFAULT 10.1 10.2 10.3 10.4 ARTICLE 11 - LESSEE'S ACTS OF DEFAULT 11.1 11.2 11.3 11.4 11.5 ARTICLE 12 - REMEDIES FOR DEFAULT BY LESSEE 12.1 12.2 12.3 12.4 12.5 12.6 12.7 ARTICLE 13 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 13.1 Real Property Improvements 13.2 Personal Property ARTICLE 14 - ASSIGNMENT OR SUBLEASE 14.1 Assignment of Lease or Subleasing 14.2 Assignment of Lease for Security 14.3 Assignment to Affiliate ARTICLE 15 - LESSEE'S DUTY TO DEFEND/INDEMNIFY ARTICLE 16 - CITY'S DUTY TO DEFEND/INDEMNIFY Page ii Page 12 Page 12 Page 12 Page 12 Page 12 Page 13 Page 13 Page 13 Page 13 Page 13 Page 14 Page 14 Page 14 Page 14 Page 14 Page 15 Page 15 Page 15 Page 15 Page 15 Page 16 Page 16 Page 16 Page 16 Page 16 Page 16 Page 16 Page 17 Page 17 Page 18 Page 18 Page 19 Page 19 98 Resolution 2024-039 ARTICLE 17 - INSURANCE 17.1 Minimum Insurance Requirements 17.2 Subrogation Rights Waived ARTICLE 18 - CONDEMNATION ARTICLE 19 - ARBITRATION 19.1 Arbitration ARTICLE 20 - MAINTENANCE AND REPAIRS 20.1 20.2 20.3 Normal Maintenance Safety Issues Cost of Repairs ARTICLE 21 - ENVIRONMENTAL CONCERNS 21.1 Hazardous Materials 21.2 Permits and Reporting ARTICLE 22 ARTICLE 23 ARTICLE 24 ARTICLE 25 ARTICLE 26 ARTICLE 27 ARTICLE 28 ARTICLE 29 ARTICLE 30 - ARTICLE 31 - ARTICLE 32 - ARTICLE 33 - - ESTOPPEL CERTIFICATES - CONDITIONS AND COVENANTS - NO WAIVER OF BREACH - TIME OF THE ESSENCE - COMPUTATION OF TIME - SUCCESSORS IN INTEREST - ENTIRE AGREEMENT - GOVERNING LAW PARTIAL INVALIDITY RELATIONSHIP OF PARTIES INTERPRETATION NUMBER AND GENDER Page iii Page 19 Page 19 Page 20 Page 21 Page 21 Page 21 Page 22 Page 22 Page 23 Page 23 Page 24 Page 24 Page 26 Page 27 Page 27 Page 27 Page 27 Page 27 Page 27 Page 28 Page 28 Page 28 Page 28 Page 28 Page 28 99 Resolution 2024-039 ARTICLE 34 - MANDATORY AND PERMISSIVE Page 28 ARTICLE 35 - CAPTIONS Page 29 ARTICLE 36 - AMENDMENT Page 29 ARTICLE 37 - NOTICES Page 29 ARTICLE 38 - FIRE PROTECTION Page 29 Page iv 100 Resolution 2024-039 RESTATED LEASE AGREEMENT THIS RESTATED LEASE AGREEMENT (the "LEASE") is made by and between the CITY OF SEWARD (the "CITY"), a municipal corporation located in the Kenai Peninsula Borough, State of Alaska, whose mailing address is PO Box 167, Seward, Alaska 99664 and JAMES T. PRUITT (the "LESSEE"), dba Gateway Texaco Liquor and Food Mart, whose mailing address is Post Office Box 944, Seward, Alaska, 99664. WHEREAS, LESSEE has indicated his desire to continue to lease a parcel of land located at a portion of former Tract A, North Harbor Subdivision, Seward, Alaska; WHEREAS, the prior lease, Lease Number RE-84-043, has been in effect since May 1, 1984; WHEREAS, the City Council adopted Resolution 2000-076 approving a long term lease with James T. Pruitt for an extended lease term to take advantage of improved financing arrangements for improvements completed on the lease site, to update the lease agreement using the current form, terms and conditions applicable to new CITY leases, and to establish a new legal description of the lease site by completing and recording a plat of the lease site; WHEREAS, the City Council adopted Resolution 2000-114 approving the addition to the lease site of a strip of land ten (10) feet in width along the south boundary of the North Harbor Parking Lot, formerly Tract A, Block 1, North Harbor Subdivision; and approving certain amendments to the lease approved by Resolution 2000-076 and permitting the amended terms to be included in a restatement of the LEASE; WHEREAS, the City Council of CITY has determined that a lease of the Leased Land to LESSEE for the purposes described herein would be in the public interest; and WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire burden of compliance with present or future environmental regulations or controls with respect to LESSEE's operations on the Leased Land during the lease term. NOW THEREFORE, for and in consideration of the mutual promises and covenants hereinafter contained, the parties hereto agree as follows: City of Seward/Restated Lease \DOCS 43374106\RestatedW VJBprvitt leas 4-O l.wpd Page 1 101 Resolution 2024-039 RESTATEMENT OF LEASE This Restated Lease Agreement, herein referred to as the "LEASE," supersedes and replaces that certain lease agreement between the parties dated August 24, 2000 and that certain lease amendment no. 1 dated October 30, 2000. This LEASE includes a restatement of the lease agreement approved by City Council Resolution 2000-076 together with the amended lease terms approved by City Council Resolution 2000-114. The purpose of restating the LEASE is (1) to terminate the prior lease known as Lease Number RE-84-043; (2) to provide an effective date for this LEASE; (3) to incorporate the amended lease terms; and (4) to incorporate as the description of the Leased Land, the lease site as platted on December 13, 2000. This LEASE shall hereafter be the lease agreement described in City Council Resolutions 2000-76 and 2000-114. ARTICLE 1 LEASED LAND 1.1 Description of Leased Land. The Leased Land is located in the City of Seward, Alaska, and described as follows (herein referred to as the "Lease Land"): Lot One (1), Block Ten (10), SEWARD SMALL BOAT HARBOR SUBDIVISION, according to Plat 2000-19, filed in the Seward Recording District, Third Judicial District, State of Alaska. 1.2 Covenant of Quiet Enjoyment; Warranty of Title. Subject to the encumbrances as of the date hereof, any reasonable restrictions imposed on the Leased Land as part of filing of a plat by CITY, and the provisions of this LEASE, CITY hereby covenants and warrants that: a) LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE; b) CITY owns the Leased Land in fee, and, subject to the conditions described in Sections 2.2 and 2.3 herein, is fully empowered to enter into this Lease; and c) CITY is unaware of any prior conflicting use of the Leased Land that would adversely affect LESSEE's intended use of the subject parcel. 1.3 Survey of Leased Land. Following the effective date of the Resolution approving this LEASE, CITY, at its sole cost, caused the Leased Land to be surveyed and platted by a land surveyor registered in the State of Alaska. The plat including the Leased Land was completed and recorded on December 13, 2000 and is attached to this LEASE as Exhibit A and shall be incorporated herein by reference. 1.4 Property Accepted "As -is". LESSEE acknowledges that it has inspected the Leased Land and accepts the same "as -is" and without reliance on any expressed or implied City of Seward/Restated Lease J:IDOCS\43374106\RestatedW VJEpruitt lease401.wpd Page 2 102 Resolution 2024-039 representations or warranties of CITY (other than the representations in Section 1.2 hereof), or agents of CITY, as to the actual physical condition or characteristics thereof and the legal description or depiction of the Leased Land in Section 1.1 or Exhibit A hereto. LESSEE represents that he is in full compliance of all terms and conditions, expressed and implied, under the prior lease, Lease Number RE 84-043. 1.5 Permits. LESSEE, at his sole cost, shall obtain all permits necessary to the construction and operation of his facilities on the Leased Land. CITY may from time to time, upon request of LESSEE, execute such documents, petitions, applications and authorizations as may be necessary, as the underlying fee owner, to file with an agency or public body responsible therefor an application for conditional use permits, zoning and re -zoning, tentative and final tract approval, or precise plan approval that may be required for the lawful construction and operation of the facilities of LESSEE permitted on the Leased Land by the terms of this LEASE. However, nothing in this Section shall be construed as requiring CITY to support or approve any such application or permit requests. If the agency or public body responsible to approve or grant such application or permit request is a City of Seward agency, department, or board, LESSEE shall follow all City of Seward procedures, the same as any other applicant making similar requests of the City of Seward, according to the Charter, ordinances, resolutions, or any regulation, rules or procedures of the City of Seward. Nothing in this Section imposes any duty or responsibility on CITY to assist LESSEE in obtaining any other permits or approvals, including without limitation those required by the U.S. Army Corps of Engineers (e.g., wetland fill permits), the Environmental Protection Agency (e.g., Clean Air Act permits), the Alaska Department of Public Facilities and Transportation (e.g., right-of-way permits), the Alaska Department of Fish and Game, and the Alaska Department of Environmental Conservation. 1.6 Platting. In the event CITY elects to replat, CITY agrees to include the Leased Land in such replat in accordance with the description in Section 1.1 hereof and Exhibit A hereto. If LESSEE requests a replat of the Leased Land following execution of the LEASE, CITY shall assist LESSEE in the preparation and filing of the replat, and LESSEE shall reimburse CITY for CITY's costs in assisting with the preparation and filing of the replat. LESSEE agrees to sign the plat and any other documents necessary to complete the platting or replatting of any area including all or a portion of the Leased Land. LESSEE shall accept reasonable restrictions, easements, or plat notes as may be required by CITY or other governmental authorities as a condition to filing the plat of the Leased Land or the plat of CITY -owned real property adjacent to the Leased Land. City of Seward/Restated Lease J:\DOCS\43374106\RestatedW VJBpmitt lease4-01.wpd Page 3 103 Resolution 2024-039 ARTICLE 2 LEASE TERM 2.1 Lease Term. The term of this LEASE (the "Lease Term") shall be in accordance with CITY's authorization Resolution No. 2000- 076 (the "Resolution"). The Lease Term shall commence with the signing of the Lease by both parties following the filing of a plat of the Leased Land and that date shall be the effective date of this LEASE. The Plat including the Leased Land was recorded December 13, 2000, and for all purposes under this LEASE, 12:01 a.m., December 14, 2000, shall be deemed the effective date (the "Effective Date") of this LEASE. The Lease Tenn shall run for approximately thirty (30) years from the effective date of the Resolution, ending at midnight on August 23, 2030. 2.2 Interim Right to Possession. LESSEE may remain on the Leased Land under the terms of the prior Lease, Lease Number RE 84-048, pending platting of the Leased Land and execution of this LEASE. 2.3 Lease Subject to Referendum. LESSEE understands and assumes the risk that under the Charter and Code of CITY this LEASE may be voided by referendum. The revocable license granted in Section 2.2 shall not affect or reduce the right of the voters of the City of Seward to reject this LEASE by referendum. LESSEE agrees that if the Resolution approving this LEASE is the subject of a referendum petition filed with the Clerk of CITY during the applicable thirty (30) day term, LESSEE shall have no rights under this LEASE unless and until the Resolution is approved by the voters of the City of Seward, and LESSEE shall not be entitled to any damages or any other relief against CITY in the event the Resolution is not so approved. Should this LEASE be voided by referendum, the prior Lease, Lease Number RE-84-043, shall remain in effect without change for the term specified therein. 2.4 Termination. Lease Number RE-84-043 shall terminate upon the Effective Date of this LEASE. Notwithstanding the foregoing, the indemnification provision (Article X of Lease No. RE 84-043) of the prior lease shall survive termination of the prior lease together with any other provisions of the prior lease which are expressly stated therein to survive termination. The execution of this LEASE shall not release or limit LESSEE's responsibility or liability for any environmental pollution liability as a lessee of the Leased Land under the prior lease. This LEASE shall terminate approximately thirty (30) years from the effective date of the Resolution, that is to say at midnight on August 23, 2030. Except for extensions as provided in Section 2.5 below, this LEASE is not subject to renewal. 2.5 Options to Extend. LESSEE shall have the right to extend the term of this LEASE for two (2) additional five (5) year periods (cumulative extensions not to exceed ten (10) years), provided that: City of Seward/Restated Lease JADOCS\43374106\RestazedW VJBpruitt Iease4-01.wpd Page 4 104 Resolution 2024-039 a) LESSEE exercises any applicable option to extend at least one hundred and eighty (180) days prior to the expiration of the then current lease term; b) LESSEE is not in default under any term or provision of this LEASE; c) LESSEE shall exercise its options to extend by sending written notice thereof in accordance with the provisions of Article 37 of this LEASE; and d) The City Council of CITY, at the time each option to extend is exercised, approves the extension by resolution or ordinance. ARTICLE 3 - RENTAL RATE 3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE and through June 30, 2005, the annual rental rate for the Leased Land shall be set at $19,741. (CITY and LESSEE agree to use 18,078 square feet for purposes of computing the initial annual rental rate, even if the actual area of the Leased Land is more or less. If a survey later shows the area to be different from the agreed size, the new measurement will be used for computing subsequent rental payments. Past rental payments will not be refunded, in full or part, if a subsequent survey depicts an area measurement less than 18,078 square feet.) Rent shall be payable quarterly in advance upon the Effective Date of this Lease (prorated for the balance of the current quarter) and thereafter on or before the 20th day of the month beginning each calendar quarter: January 20, April 20, July 20 and October 20. The amount of each quarterly payment shall be one -quarter of the annual rental rate as initially established or later adjusted under this Article 3. 3.2 Rental Adjustments. The annual rental payment shall be adjusted on July 1, 2005, and on the same date every five years thereafter (each a "Rental Adjustment Date"). The adjusted annual rental payment to be paid under the terms of this Lease shall be the appraised fair market rental value (the "Fair Market Rental Value") of the Leased Land at the highest and best use of the Leased Land. The highest and best use of the Leased Land shall be determined without regard to LESSEE's intended or actual use of the Leased Land unless that use is coincidentally the highest and best use of the Leased Land. CITY shall complete such appraisal and deliver a copy of the appraisal report to LESSEE not less than ninety (90) days before each Rental Adjustment Date. 3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment Date, CITY shall, at its own expense, retain an independent MAI-certified appraiser, who shall determine the "Fair Market Rental Value" of the Leased Land in accordance with this Article 3, exclusive of improvements placed thereon by LESSEE but inclusive of all improvements made by CITY (including those made before or subsequent to this LEASE). The appraiser's report shall be delivered to LESSEE not less than ninety (90) days before the Rental Adjustment Date. The appraiser's determination of Fair City of Seward/Restated Lease J \DOCS\43370106\RestatedW VJBpruitt 1 a e4-0l.wpd Page 5 105 Resolution 2024-039 Market Rental Value of the Leased Land shall constitute a final binding determination of the Fair Market Rental Value and the adjusted annual rental rate until the next Rental Adjustment Date, unless LESSEE objects to CITY's appraiser's determination of the Fair Market Rental Value. In that case, LESSEE shall give written notice to CITY of its objection within thirty (30) days of receipt of the appraiser's report, and LESSEE shall then engage an independent MAI-certified appraiser at LESSEE's expense to make an appraisal of the Fair Market Rental Value in accordance with this Article 3. If LESSEE'S appraisal determines a Fair Market Rental Value that varies from that determined by CITY'S appraisal by no more than twenty percent (20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If LESSEES appraisal determines a Fair Market Rental Value that varies from CITY'S appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.4 Effect of Late Appraisal by CITY. If, for any reason, CITY does not complete the appraisal or deliver a copy of the appraisal report to LESSEE ninety (90) days before the Rental Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy of the appraisal report to LESSEE at any time thereafter. However, any such adjusted annual rental rate shall not be effective until the quarterly payment due date immediately following the date CITY delivers the appraisal report to LESSEE. 3.5 Appraisal by LESSEE. If for any particular Rental Adjustment Date, CITY fails to obtain an appraisal of the Fair Market Rental Value or fails to deliver the appraisal report to the LESSEE by the Rental Adjustment Date, LESSEE may engage an independent MAI- certified appraiser at LESSEE's expense to make an appraisal under the terms of this Article 3 and submit a copy to CITY before the next quarterly rental payment due date. However, LESSEE must notify CITY in writing within thirty (30) days following the Rental Adjustment Date of LESSEE'S election to obtain an appraisal. If CITY objects to LESSEES appraiser's determination of the Fair Market Rental Value, CITY shall give written notice to LESSEE of its objection within thirty (30) days of receipt of the appraiser's report, and CITY shall then engage an independent MAI-certified appraiser at CITY'S expense to make an appraisal of the Fair Market Rental Value as of the Rental Adjustment Date and in accordance with this Article 3. If the CITY's appraisal determines a Fair Market Rental Value that varies from that determined by LESSEE'S appraisal by no more than twenty percent (20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If the CITY'S appraisal determines a Fair Market Rental Value that varies from LESSEES appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. City of Seward/Restated Lease J:\DOCS\43374106ULestatedW VJBpcuitt lease4-01.wpd Page 6 106 Resolution 2024-039 3.6 Effective Date of Adjusted Rental Rate. The adjusted annual rental rate established by this Article 3 shall apply as of the Rental Adjustment Date if CITY provided a copy of the appraisal report to LESSEE no later than ninety (90) days before the Rental Adjustment Date. If the adjusted annual rental rate is based on CITY'S late appraisal or late delivery of the appraisal report to LESSEE, the adjusted rental rate shall be effective beginning with the quarterly rental payment due date immediately following the date the CITY delivers the appraisal report to LESSEE. Notwithstanding the above, the exercise by either CITY or LESSEE of the objection procedure relating to rental adjustment described in this Article 3 shall not postpone LESSEE's obligation to pay rent at the rate established by CITY. LESSEE shall pay the amount of rent as established or adjusted by CITY until the question of objection to the rental rate is finally resolved. At such time the objection to the rental rate is resolved, an appropriate credit or adjustment shall be made retroactive to the date the new rental rate was established by CITY or in cases where CITY failed to obtain an appraisal or deliver the appraisal report to the LESSEE, to the Rental Adjustment Date. 3.7 Late Payment Charge. Rental payments not received by the due date shall bear interest until paid at a rate of 10.5% per annum, or the maximum rate permitted under Alaska law, whichever is less, plus a flat monthly late fee of $2.50, or such amount as may be established from time to time by CITY ordinance or resolution and relating to late fees for CITY leases generally. ARTICLE 4 - USE OF LEASED LAND 4.1 Use of Leased Land. CITY has limited land available for lease. Use of the Leased Land by LESSEE has been determined by the City Council of CITY to be in the public interest. 4.2 Obligations of LESSEE. LESSEE may use the Leased Land only in accordance with applicable CITY zoning code provisions and provided the following conditions are met: a) The Leased Land is to be completely cleaned and restored to its original condition, that is, the condition existing prior to Lease Number RE 84-043 and any prior leases of any portion of the Leased Land or in better condition upon termination of this LEASE. b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazardous Materials on the Leased Land except as permitted in Article 21 of this LEASE. c) LESSEE shall not use the Leased Land in any manner or construct any facilities thereon which would inhibit the use of adjacent or other lands. d) Prior to the Effective Date of this LEASE, LESSEE shall provide City an as -built survey depicting all existing improvements to the Leased Land. City of Seward/Restated Lease IMOCS143374206\RestatedwVJBpruitt lease4-01.wpd Page 7 107 Resolution 2024-039 e) LESSEE shall either (1) remove, at LESSEE'S own expense, the encroaching free-standing Texaco sign, curbing and other items that encroach on the State of Alaska right-of-way; (2) provide CITY with a copy of a permit from the State of Alaska allowing the encroaching Texaco sign and other items to remain in the State of Alaska right-of-way; or (3) defend, indemnify and hold harmless CITY in the manner provided by Article 15 hereof, for any and all costs, damages, or liability suffered by CITY because of such encroachments. Any encroachments existing as of the date of this LEASE shall not be expanded. f) LESSEE shall, at his own expense, be responsible for any utility improvements, changes, relocation, or design changes associated with development of the Leased Land. LESSEE shall also be responsible for relocating the existing electric box from the ten (10) foot strip of land added to the Leased Land by City Council Resolution 2000-114 and shall provide all necessary easements in connection with placement of the electric box at another location on the Leased Land. g) LESSEE shall, within one hundred eighty (180) days of the Effective Date of this LEASE, at his own expense, build, install, erect, cause to be built or otherwise install a raised sidewalk, constructed to City standards, along the south boundary of the North Harbor Parking Lot. This sidewalk shall be constructed in such a manner that the southern raised edge of the sidewalk is aligned along the surveyed and platted boundary line of the expanded lease site to clearly separate the Leased Land from the North Harbor Parking Lot. The sidewalk itself shall be located on the CITY's North Harbor Parking Lot adjacent to the Leased Land. The sidewalk shall be the property of the CITY and once completed, maintained by the City. LESSEE shall cooperate with the CITY concerning the standards for constructing the sidewalk and construction scheduling, with each subject to CITY approval. All costs related to construction of the sidewalk shall be the sole responsibility of and paid for by LESSEE. A portion of the Leased Land, more specifically described as a strip of land ten (10) feet in width along the south boundary of the North Harbor Parking Lot (Lot Two (2), Block Ten (10), Seward Small Boat Harbor Subdivision, according to Plat 2000-19), shall be designated a loading zone and used solely as a vehicle delivery and loading zone. Employees and customers of LESSEE shall not be allowed to park in this designated loading zone. This area shall be posted as a loading zone for delivery vehicle use only. 4.3 Adequacy of Public Facilities. CITY makes no representations or warranties as to the fitness of any particular part or the whole of CITY's public facilities for the uses intended by LESSEE, and LESSEE has inspected those facilities and has satisfied itself that the facilities are sufficient for the intended uses by LESSEE. CITY makes no representations City of Seward/Restated Lease 1:\DOCS\43374106\RestatedW V]Bpruitt lease4A1.wpd Page 8 108 Resolution 2024-039 or warranties of any nature with respect to the commercial practicability or accuracy of any information provided by CITY. 4.4 Time for Payment of Utilities and Taxes. LESSEE will pay for utilities and taxes related to operations on the Leased Land and LESSEE's interest in this LEASE and improvements thereon, if any, before such obligations become delinquent; provided, that LESSEE may, in good faith and before such delinquency, contest any such charge or assessment. 4.5 Other Uses. This LEASE shall not preclude the CITY from actively seeking other and additional tenants for space including those who would be in competition with LESSEE or who might be interested in leasing the Leased Land should this LEASE be terminated for any reason. ARTICLE 5 - UTILITIES AND RIGHTS OF ACCESS 5.1 Utilities. LESSEE, at LESSEE's sole cost and expense, shall provide for the extension of public utilities to the Leased Land sufficient for LESSEE's intended operations. In so doing, LESSEE shall comply with all CITY regulations and requirements, and the tariffs of the affected utilities, with respect to the construction of those utilities. CITY agrees to cooperate and assist the LESSEE, through consultation and review, in LESSEE's planning and engineering of those improvements. All utilities will be located and sized in accordance to CITY's Master Plan for the area leased. CITY adopted the Uniform Building Code, 1997 edition, and all construction shall be in compliance thereto. Utilities constructed by the LESSEE within the public right-of-ways or within public utility easements will normally be accepted and maintained by CITY or utility companies may be used to serve other customers of LESSEE's without payment of fees or reimbursement of construction cost to the LESSEE. However, this does not preclude several LESSEE'S from agreeing to share the cost of constructing a utility to serve their facilities. CITY or other utility company may determine that it would be to their benefit to oversize the utility or install special fittings or equipment in order to serve other existing or future users. The additional direct costs of such oversizing shall be borne by CITY or other utility company. Such costs shall be limited to the supplier's cost of the additional fittings, equipment, direct labor, and equipment costs to complete the installation. The costs of oversizing pipe or electrical conduit shall be limited to the difference between the supplier's price to provide the size required to serve its facility and the price of the oversized material required by CITY or utility company. LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation of LESSEE's facilities on the Leased Land, it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. City of Seward/Restated Lease J:\DOCS\43374106Vtest tedW VJBpruitt lease4-01.wpd Page 9 109 Resolution 2024-039 5.2 Easements. In order to provide for the orderly development of the Leased Land and adjacent lands, it may be necessary, desirable or required that street, railroad, water, sewer, drainage, gas, power line and other easements and dedications and similar rights be granted or dedicated over or within portions of the Leased Land. As additional consideration for this LEASE, CITY and LESSEE each shall, at the request of the other, join with each other in executing and delivering such documents from time to time and throughout the Lease Term as may be appropriate, necessary, or required by the several governmental agencies (including the City of Seward), public utilities and other users or tenants of CITY land for the purpose of granting such easements and dedications; provided, however, that such easements and dedications and similar rights do not unreasonably interfere with LESSEE's operations. The costs of locating or relocating any public easements or restrictions of record including any relocation of public road, railroad, utility, or other easements shall be at the sole cost and expense of the party requesting the relocation. CITY shall not refuse reasonable requests for such relocations provided those relocations do not interfere with or inhibit the overall development of CITY property or other public property. Any easements or rights of access granted to LESSEE by CITY need not be exclusive to LESSEE. ARTICLE 6 - CONSTRUCTION BY LESSEE 6.1 Improvements on Leased Land. LESSEE shall have the right to erect, maintain, alter, remodel, reconstruct, rebuild, build and/or replace buildings and other improvements on the Leased Land, subject to the following conditions: a) Improvements shall require prior approval of CITY. b) The cost of any such construction, reconstruction, demolition, or of any changes, alterations or improvements, shall be borne and paid for by LESSEE. c) The Leased Land shall at all times be kept free of mechanic's and materiahnen's liens. d) In a manner consistent with Section 4.2, LESSEE shall provide CITY with a copy of all building plans and specifications and a site development plan or plans (based on a recent survey) for the Leased Land prior to commencement of construction. e) LESSEE is solely responsible for resurveying and locating improvements on the Leased Land in such manner not to violate building setback requirements or encroaching into rights -of -ways or easements. On completion of any improvements, LESSEE shall provide CITY a copy of an as -built survey depicting the improvements as completed on the Leased Land. City of Seward/Restated Lease JADOCS\43374106\RestatedW VJBpruitt lease4-01.wpd Page 10 110 Resolution 2024-039 g) Any general contractor employed by LESSEE or its sublessees shall be appropriately bonded by use of performance and labor and material payment bonds in the customary form when cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). Copies of all such bonds shall be furnished to CITY prior to commencement of construction. If the cost of the work is less than FIFTY THOUSAND DOLLARS ($50,000.00), LESSEE shall provide CITY, if no performance and labor and material bonds are provided by LESSEE, any necessary assurances or guarantees that the contemplated work will be performed by the general contractor or by LESSEE. In the event that LESSEE elects to construct the facility with its own personnel and equipment, or the personnel and equipment of any corporation or person that is an "affiliate" of LESSEE as such term is defined in AS 10.06.990(2)', a performance bond shall be required when the cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). CITY may, as contemplated by Alaska Statutes, give notice of non -responsibility for any improvements constructed or effected by LESSEE on the Leased Land. h) LESSEE shall comply with all federal, state and local statutes and regulations with respect to such construction including any required finding by the City Council of Seward that such action is in the public interest. 6.2 City Review of Construction. CITY shall have the right to review initial plans, including those supplied to CITY under Sections 4.2 and 6.1 hereof, and any future changes or additions to LESSEE's facilities on the Leased Land, by reviewing the design thereof prior to the commencement of construction. CITY shall have the right to comment upon that design and to require LESSEE to make reasonable changes so as to avoid interference with public operations, but the exercise of these rights shall not imply any obligation to do so nor any obligation to do so nor any obligation to do so in a particular way. LESSEE shall construct the facility in accordance with final design specifications approved by CITY. CITY's representatives may monitor the work and shall have access to the site at all reasonable times. LESSEE shall be solely responsible for completing all improvements according to LESSEE's plans and specifications and shall bear all risk, responsibility, and liability for properly surveying the Leased Land before construction and to place all improvements on the Leased Land without encroaching upon any land, easements, rights -of -way, or setback requirements. LESSEE shall obtain the usual and customary performance guarantees from its contractors, and CITY shall be named as an additional insured. lAffiliate means a person that directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, a corporation subject to the Alaska Corporation Code. City of Seward/Restated Lease J:\DOCS14337410SRestazedW VJBpmitt lease4-01.wpd Page 11 111 Resolution 2024-039 ARTICLE 7 - RETURN OF LEASED LAND/SITE CONDITIONS 7.1 Return of Leased Land in Original Condition. Subject to the provisions of Article 13.1 herein, upon termination of this LEASE for any reason, LESSEE shall return the Leased Land to CITY in the same condition as at the commencement of the prior lease, Lease Number 84-043, and any other prior lease held by the LESSEE or his predecessors in interest, relating to any portion of the Leased Land, subject to normal, non -abusive use. The Leased Land shall be free of all Hazardous Materials and contamination arising out of or resulting from or occurring during LESSEE's operations or use of the Leased Land during this LEASE or any prior lease including any portion of the Leased Land. 7.2 Return of Leased Land in Different Condition. Notwithstanding the provisions of Section 7.1 above, upon termination of this LEASE for any reason LESSEE may return the Leased Land in a re -contoured or graded clean, safe, and stable condition different from its original condition provided CITY grants written approval of LESSEE's plans for development of the Leased Land contours, including its plans for material extraction and final grade. ARTICLE 8 - FORCE MAJEURE In the event either LESSEE or CITY is delayed from performance of any of its obligations under this LEASE due to acts of God, acts of the enemies of the United States of America, sabotage, blockade, insurrection, riot, epidemic, fire, flood, explosion, earthquake/tsunami, civil disturbance, or war, the time period wherein such performance is to occur shall be extended by that amount of time necessary to compensate for the delay. ARTICLE 9 - CITY ACTS OF DEFAULT Each of the following shall be a "CITY Act of Default" under this LEASE and the terms "acts of default" and "default" shall mean, when they are used in this LEASE, any one or more of the following events: 9.1 Failure by CITY to fulfill, observe or perform any covenants or agreements on its part to be observed or performed under this LEASE for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to CITY by LESSEE; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by CITY within the applicable period and diligently pursued until the default is corrected. 9.2 Violation by CITY of any applicable laws or regulations of the United States, the State of Alaska, the Kenai Peninsula Borough, or the City of Seward or any conditions of any City of Seward/Restated Lease 7:\DOCS1433741064testatedW VJBpruitt lease4-01.wpd Page 12 112 Resolution 2024-039 permits issued by agencies of the City of Seward, the Kenai Peninsula Borough, the State of Alaska or of the United States Government pursuant to the regulations of such agencies for a period of sixty (60) days after written notice specifying such violation has been given by the agency to CITY; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by CITY within the applicable period and diligently pursued until the violation is corrected. Furthermore, if CITY shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined, provided such proceedings are diligently pursued. ARTICLE 10 - REMEDIES FOR CITY'S ACTS OF DEFAULT 10.1 Whenever an act of default by CITY shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, LESSEE shall have the following rights and remedies in addition to any rights and remedies that may be given to LESSEE by statute, common law or otherwise: a) Withhold payment of any rent otherwise due CITY to the extent of CITY'S default; b) Recover from CITY, whether this LEASE be terminated or not, reasonable attorney's fees and all other expenses incurred by LESSEE by reason of the default by CITY; and c) Declare this LEASE terminated. 10.2 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform of CITY's which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 10.3 Each right and remedy of LESSEE provided for in this LEASE shall be cumulative and shall be in addition to every other right or remedy provided for in this LEASE, now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by LESSEE of any one or more of the rights and remedies provided for in this LEASE, now or hereafter existing at law or in equity or by statute or otherwise, shall not preclude the simultaneous or later exercise by LESSEE of any or all other rights or remedies provided for in this LEASE, now or thereafter existing at law or in equity or by statute or otherwise. 10.4 No delay or omission to exercise any right or power accruing following an act of default shall impair any such right or power or shall be construed to be a waiver thereof, but any City of Seward/Restated Lease JADOCS\43374106utestatedW V1Bpruitt lease4-01.wpd Page 13 113 Resolution 2024-039 such right and power may be exercised from time to time and as often as may be deemed expedient. ARTICLE 11- LESSEE'S ACTS OF DEFAULT Each of the following shall be a "LESSEE Act of Default" under this LEASE and the terms "acts of default" and "default" shall mean, whenever they are used in this LEASE, any one or more of the following events: 11.1 Failure by LESSEE to pay promptly when due, and in no event later than twenty (20) days from the due date thereof, the rent required to be paid under this LEASE. 11.2 Failure by LESSEE to observe, fulfill or perform any covenants, conditions or agreements on its part to be observed or performed under this LEASE for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to LESSEE by CITY; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. 11.3 The making by LESSEE of an assignment for the benefit of creditors, the filing of a petition in bankruptcy by LESSEE, the adjudication of LESSEE as insolvent or bankrupt, the petition or application by LESSEE to any tribunal for any receiver or any trustee for itself or for any substantial part of its property; or the commencement of any proceeding relating to LESSEE under any bankruptcy, insolvency, reorganization, arrangement or readjustment of debt law or statute or similar law or statute of any jurisdiction, whether now or hereafter in effect which shall remain undismissed for a period of six (6) months from the date of commencement thereof. 11.4 Violation by LESSEE of any laws or regulations of the United States, or of the State of Alaska, or any conditions of any permits issued by agencies of the City of Seward, the Kenai Peninsula Borough, the State of Alaska or of the United States Government applicable to LESSEE's use of the Leased Land, pursuant to the regulations of such agencies, for a period of sixty (60) days after written notice specifying such violation has been given by the agency charged with the enforcement of such laws, regulations or permits to LESSEE; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the violation is corrected. Furthermore, if LESSEE shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined provided such proceedings are diligently pursued; provided, however, that any such extension of time shall not be effective if the effect of the interim administrative or judicial action is to City of Seward/Restated Lease J:\DOCS\43374106\RestatedW V1Bpmitt Iesse4-01.wpd Page 14 114 Resolution 2024-039 cause a stoppage, interruption or threat to the activities of any person or entity other than those of LESSEE. 11.5 Failure by LESSEE to complete construction in accordance with Articles 4 and 6 hereof. ARTICLE 12 - REMEDIES FOR DEFAULT BY LESSEE Whenever an act of default by LESSEE shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, CITY shall have the following rights and remedies all in addition to any rights and remedies that may be given to CITY by statute, common law or otherwise: 12.1 CITY may distrain for rent due any of LESSEE's personal property which comes into CITY's possession. This remedy shall include the right of CITY to dispose of personal property distrained in any commercially reasonable manner. It shall be conclusively presumed that compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS 45.09.504) with respect to sale of property shall be a commercially reasonable disposal. 12.2 CITY may re-enter the Leased Land and take possession thereof and, except for any personal property of LESSEE which CITY has waived its right to distrain under sub- paragraph 12.1 above, remove all personal property of LESSEE from the Leased Land. Such personal property may be stored in place or may be removed and stored in a public warehouse or elsewhere at the cost of LESSEE all without service of notice or resort to legal process, all of which LESSEE expressly waives. 12.3 In addition to the above, CITY may: a) Declare this LEASE terminated; b) Collect any and all rents due or to become due from subtenants or other occupants of the Leased Land; c) Recover from LESSEE, whether this LEASE be terminated or not, reasonable attorney's fees and all other expenses incurred by CITY by reason of the breach or default by LESSEE; d) Recover an amount to be due immediately on breach equal to the unpaid rent for the entire remaining term of this LEASE. e) Recover all damages incurred by CITY by reason of LESSEE'S default or breach including, but not limited to, the cost of recovering possession of the Leased Land, expenses of reletting including costs of necessary renovation and alteration City of Seward/Restated Lease J1DOCS\43374106UtestatedWVJBpruittlease4-01.wpd Page 15 115 Resolution 2024-039 of the premises, reasonable attorneys fees and any real estate commissions actually paid. fj Remove or require the removal of any improvements constructed without CITY approval or constructed contrary to site development plans approved by CITY and recover all costs and expense incurred by CITY to remove violating improvements. 12.4 If LESSEE does not immediately surrender possession of the Leased Land after termination by CITY and upon demand by CITY, CITY may forthwith enter into and upon and repossess the Leased Land and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or breach of covenant. 12.5 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform of LESSEE'S which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 12.6 Each right and remedy of CITY provided for in this LEASE shall be cumulative and shall be in addition to every other right or remedy provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by CITY of any one or more of the rights and remedies provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by CITY of any or all other rights or remedies provided for in this LEASE or now or thereafter existing at law, or in equity or by statute or otherwise. 12.7 No delay or omission to exercise any right or power accruing following an act of default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. ARTICLE 13 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 13.1 Real Property Improvements. All improvements constructed by LESSEE on the Leased Land or on easements to or from the same, such as buildings, warehouses, conveyor systems, ditches, sewer lines, water lines, dikes or berms and similar improvements, shall become the property of CITY upon termination of this LEASE for any reason; provided, however, that CITY may require LESSEE to remove any improvements designated by CITY and without cost to CITY. 13.2 Personal Property. Any other provisions of this LEASE to the contrary notwithstanding, LESSEE, upon termination of this LEASE for any reason, may, but need not, promptly City of Seward/Restated Lease J:\DOCS\433741.06\ReatatedV VJBpraitt lease4-01.wpd Page 16 116 Resolution 2024-039 remove, in no event later than ninety (90) days from the termination of the LEASE, trade fixtures and equipment from the Leased Land provided that LESSEE shall repair any damages to the Leased Land caused by such removal. ARTICLE 14 - ASSIGNMENT OR SUBLEASE 14.1 Assignment of Lease or Subleasing. The parties recognize that this LEASE has been determined to be in the public interest by the City Council of CITY for the reasons set forth in the approving Resolution. The rights and duties created by the LEASE are personal to LESSEE and CITY has granted the LEASE in reliance upon the individual character and financial capability of LESSEE. Therefore, LESSEE shall not assign this LEASE without CITY'S prior written consent, in CITY'S sole discretion. LESSEE may sublease a portion of the Leased Land only with CITY'S prior written consent, which consent shall be granted if: a) The use of the Leased Land by the proposed sublessee is compatible with the use of adjacent lands; b) The proposed use is a permitted use under the then existing zoning regulations and comprehensive land use plan; c) LESSEE has made a written request to sublease the Leased Land with a copy of the sublease agreement to the CITY; d) The portion of the Leased Land to be sublet is limited to the area within the footprint of the building existing as of effective date of this LEASE. (No portion of the Leased Land may be sublet, leased, rented, or used by any subtenant if not contained within such building footprint, e.g., no expresso stands or food carts.) e) The sublessee shall agree to defend, indemnify and hold harmless the CITY, its officials, employees, and agents, from any and all liability or claims for damages, including personal injuries, death and property damage arising out of or resulting from sublessees use of the Leased Land by themselves, their agents, contractors, guests or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors; g) LESSEE'S full faith and credit shall remain obligated under this LEASE as though the sublease had not taken place; and The sublessee assumes and agrees in writing to pay and perform all of the obligations of LESSEE hereunder including, without limitation, Article 21- Environmental Concerns. City of Seward/Restated Lease JADOCS\43374106\RestatedW VJBpruitt leaseA-01.wpd Page 17 117 Resolution 2024-039 Prior to execution of this LEASE, LESSEE shall provide CITY with copies of any existing sublease agreements relating to the prior lease, Lease Number RE 84-043. CITY'S consent is hereby granted for the sublessees listed on Exhibit B attached hereto; provided, however, that all such subleases are first subordinated to this LEASE in writing. All later subleases shall also be subordinated to this LEASE in writing. 14.2 Assignment of Lease for Security. Notwithstanding Section 14.1 above, LESSEE may assign, encumber or mortgage its interest in this LEASE or improvements on the Leased Land, by deed of trust or other security instrument, to an institutional lender ("Lender") for development of or operations on the Leased Land, provided that Lender shall be subject to all obligations of LESSEE under the terms of this LEASE upon foreclosure. CITY shall furnish Lender, at the address provided to CITY by Lender in writing, with notice of any default or breach of LESSEE under this LEASE. Lender shall have the right (without being required to do so and without thereby assuming the obligations of LESSEE under this LEASE) to make good such default or breach within thirty (30) days after written notice specifying such breach. Notwithstanding the provisions of Article 12 above, no "LESSEE Act of Default" shall exist until expiration of thirty (30) days after such notice is furnished to Lender; provided, a) If Lender, with respect to any default or breach other than a failure to make any required payment of rent or other money, shall undertake within thirty (30) days after notice to cure the default or breach and shall diligently and in good faith proceed to do so, CITY may not terminate this LEASE or relet the Leased Land unless Lender fails to cure the default or breach within a reasonable period of time thereafter; and b) If the default for which notice is given is a breach of Section 11.3, CITY shall not exercise any of the remedies afforded to it under Article 12 above so long as LESSEE or Lender remains in possession of the Leased Land and satisfies LESSEE's obligations under the terms of this LEASE. Upon foreclosure or other assertion of its security interest, Lender may further assign, transfer, or dispose of its interests, provided that any subsequent assignee, purchaser or transferee shall remain bound by each and every term of this LEASE. 14.3 Assignment to Affiliate. Notwithstanding Section 14.1 above, LESSEE may assign this LEASE to an affiliate of LESSEE as that term is defined by AS 10.06.990(2)2; provided, however, that LESSEE's full faith and credit shall remain obligated under this LEASE as though the assignment had not taken place. 2Affiliate means a person that directly or indirectly through one or more intermdeiaries controls, or is controlled by, or is under common control with, a corporation subject to the Alaska Corporation Code. City of Seward/Restated Lease .J:\DOCS4r3374tO6\RestatedW VJBpruitt leaso4-01.wpd Page 18 118 Resolution 2024-039 ARTICLE 15 - LESSEE'S DUTY TO DEFEND/INDEMNIFY LESSEE shall defend, indemnify and hold harmless CITY, its officials, employees, agents, and contractors from any and all liability or claims for damages, including personal injuries, environmental damage, death and property damage arising out of or resulting from LESSEE's use of the Leased Land or the use of the Leased Land by LESSEE's sublessees, assignees, agents, contractors or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. If any action or proceeding is brought against LESSEE by reason of any such occurrence, LESSEE shall notify CITY promptly in writing of such action or proceeding. ARTICLE 16 - CITY'S DUTY TO DEFEND/INDEMNIFY CITY shall defend, indemnify and hold LESSEE harmless from any and all liability or claims for damages, including personal injuries, death and property damage arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. ARTICLE 17 - INSURANCE 17.1 Minimum Insurance Requirements. Prior to commencement of the Lease Term or LESSEES occupancy of the Leased Land, LESSEE shall procure and maintain, at LESSEE's sole cost and expense, comprehensive commercial general liability insurance with limits of liability of not less than TWO MILLION DOLLARS ($2,000,000) for all injuries and/or deaths resulting to any one person and ONE MILLION DOLLARS ($1,000,000) limit from any one occurrence. The comprehensive commercial general liability insurance shall include coverage for personal injury, bodily injury, and property damage or destruction. Coverage under such policies of insurance shall also include collapse and underground property damage hazards. Contractual liability insurance coverage in the amount of not less than ONE MILLION DOLLARS ($1,000,000) is also required. LESSEE shall obtain owned and non -owned automobile liability insurance with limits of liability of not less than ONE MILLION DOLLARS ($1,000,000) per occurrence combined single limit for bodily injury and property damage. LESSEE shall also maintain workers compensation insurance as required under Alaska law. LESSEE shall also procure and maintain environmental pollution liability insurance in the amount of not less than ONE MILLION DOLLARS ($1,000,000) and in such additional amount as may be required by state or federal statutes or regulations for the operation of a facility containing under ground fuel storage tanks. City of Seward/Restated Lease 7:\DOCS143374106\RestatodW V1Bpraitt lease4-01.wpd Page 19 119 Resolution 2024-039 The minimum amounts and types of insurance provided by LESSEE shall be subject to revision at the sole discretion of CTTY in accordance with standard insurance practices, in order to provide continuously throughout the term of this LEASE and any extensions hereof, a level of protection consonant with good business practice and accepted standards in the industry. Such factors as changes in the type of or extent of use of the Lease Land, increases in the cost of living, inflationary pressures, and other considerations, shall be utilized in assessing whether the minimum insurance require- ments should be increased. CITY shall notify LESSEE of any required increase in insurance coverage. All insurance policies shall provide for thirty (30) days' notice of cancellation and/or material change to be sent to CITY at the address designated in ARTICLE 37 of this LEASE. All such policies shall be written by insurance companies legally authorized or licensed to do business in the State of Alaska, and acceptable to CITY (Best's Rating B+ or better). CITY shall be listed as an additional insured under all insurance policies. LESSEE shall furnish CITY, on forms approved by CITY, certificates evidencing that it has procured the insurance required herein prior to the occupancy of the Leased Land or operation by LESSEE. Insurance policy deductibles are subject to approval by CITY. Nothing herein contained shall prevent LESSEE or CITY from placing and maintaining at CITY's or LESSEE's own individual cost and expense, additional or other insurance as may be desired. The minimum insurance requirements under this LEASE shall not act to limit LESSEE'S liability for any occurrence and shall not limit LESSEE'S duty to defend and indemnify CITY for claims related to this LEASE or the Leased Land. 17.2 Subrogation Rights Waived. To the extent permitted by law, LESSEE hereby releases CITY, its elected and appointed officials, employees and volunteers and others working on behalf of CITY from any and all liability or responsibility to LESSEE or anyone claiming through or under LESSEE by way of subrogation or otherwise, for any loss of any kind (including damage to property caused by fire or any other casualty), even if such loss shall have been caused by the fault or negligence of the CITY, its elected or appointed officials, employees or volunteers or others working on behalf of the CITY. This provision shall be applicable and in full force and effect only with respect to loss or damage occurring during the time of LESSEE'S occupancy or use, and LESSEE'S policies of insurance shall contain a clause or endorsement to the effect that such release shall not adversely affect or impair such policies or prejudice the right of LESSEE to recover thereunder except as against CITY (including its elected and appointed officials, employees and volunteers and others working on behalf of CITY) during the time of LESSEE'S occupancy or use. LESSEE agrees that its policies of insurance will include such a clause or endorsement. City of Seward/Restated Lease J \DOCS\43374106\Restated W VJBpruitt leas W -01.wpd Page 20 120 Resolution 2024-039 ARTICLE 18 - CONDEMNATION If all or any part of the Leased Land is condemned for a public use by any government agency or other duly authorized entity, CITY and LESSEE shall each make a claim against the condemning or taking authority for the amount of any damage incurred by or done to them respectively as a result of the taking. Neither LESSEE nor CITY shall have any rights in or to any award made to the other by the condemning authority; provided, that in the event of a single award to CITY which includes specific damages for loss of LESSEE's leasehold interest, CITY shall transmit to LESSEE the amount of such specific damages so found, if any. If part but not all of the Leased Land is condemned for public use, LESSEE shall make a good faith determination as to whether or not the taking of the part of the Leased Land designated for condemnation will prevent it from continuing to operate on the Leased Land. If LESSEE determines in good faith that the condemning of such part of the Leased Land will prevent it from continuing to operate on the Leased Land, LESSEE may notify CITY in writing to this effect, and this LEASE shall then be terminated for all purposes effective fifteen (15) days from the date LESSEE sends such notice to CITY, or at such other later date as LESSEE shall specify in its notice, and such termination shall be treated in the same manner as a termination at the expiration of the term of this LEASE. LESSEE shall, as a condition precedent to such termination, remove all encumbrances, debts and liens to which the Leased Land is subject. If at the time of such partial taking for public use, LESSEE determines that such partial taking will not prevent it from continuing to operate, then LESSEE and CITY shall negotiate an equitable and partial abatement of the rent beginning to be effective on the actual date when LESSEE is effectively prevented from utilizing the condemned land. ARTICLE 19 - ARBITRATION 19.1 Arbitration. a) Disputes between the parties with respect to the performance of this LEASE that cannot be resolved by the parties, shall be submitted to an independent arbitrator for a settlement pursuant to the provisions of the Alaska Uniform Arbitration Act (AS 09.43.010 et. semc .), as it now exists or may hereafter be amended from time to time, and judgment on the award may be entered in any Superior Court in the State of Alaska. Notwithstanding the foregoing, arbitration shall not be applicable to claims or disputes involving a requested remedy having a value of more than Fifty Thousand Dollars and No/100s ($50,000) (exclusive of interest and costs). All demands for arbitration and all answering statements thereto that include any claim must contain a statement that the total sum or value in controversy, as alleged by the party making such demand or answering statement, is not more than Fifty Thousand Dollars and No/100s ($50,000.) The arbitrator will not have jurisdiction, power, or authority to consider or make findings (except to deny jurisdiction) concerning any claim, counterclaim, dispute or other matter in question where the amount in controversy of any such claim, counterclaim, City of Seward/Restated Lease J:tDOCs\433741061.1testatedWVJBpruid lesse4-01.wpa Page 21 121 Resolution 2024-039 dispute or matter is more than Fifty Thousand Dollars and No/100s ($50,000). The costs and expenses of arbitration shall be shared equally by the parties, and each party shall bear its own attorney's fees and costs. b) Arbitration procedures shall be applicable only to contract, negligence, and similar claims arising from or related to this LEASE, and shall not be used to resolve or determine any claim based upon fraud, intentional misrepresentation, nor any claim based on conduct that is a felony crime in the State of Alaska. c) Written notice of requests for arbitration of disputes may be served by either party to this LEASE upon the other party. Arbitration of any dispute or claim shall be determined by a single arbitrator selected from a list of not less than five arbitrators obtained from the presiding Superior Court Judge or other appropriate judicial officer in Anchorage, Alaska. The arbitrator shall be a person who (a) has not less than five (5) years legal experience in the State of Alaska prior to appointment; and (b) such legal experience includes substantial experience with long-term commercial real property transactions. Each party shall be provided with a copy of the list and shall be afforded a maximum of ten (10) working days to become familiar with the qualifications of the prospective arbitrators. The arbitrator shall be selected by each party, commencing with the party demanding the arbitration, striking one name from the list until only a single name remains. d) Arbitration hearings shall be conducted in Anchorage, Alaska or such other location as the parties may agree. Each party shall produce at the request of the other party, at least thirty (30) days in advance of such hearing, all documents to be submitted at the hearing and such other documents as are relevant to the issues or likely to lead to relevant information. e) In deciding the claim or dispute, the arbitrator shall follow applicable Alaska law, and the written decision shall be supported by substantial evidence in the record. Failure to apply Alaska law, or entry of a decision that is not based on substantial evidence in the record, shall be additional grounds for modifying or vacating an arbitration decision. ARTICLE 20 - MAINTENANCE AND REPAIRS 20.1 Normal Maintenance. During the entire term of this LEASE and every extension hereof, if any, LESSEE shall, at LESSEE's sole cost, risk and expense, maintain the Leased Land, including any improvements placed thereon by LESSEE, in as good condition as received or constructed by LESSEE, subject to normal, non -abusive use. CITY, at CITY's sole option and expense, may, prior to the commencement of construction by LESSEE, perform maintenance and preventative work on the Leased Land, exclusive of improvements placed thereon by LESSEE, in order to prevent erosion, mitigate damage City of Seward/Restated Lease I \DOCSW3374106\RestatedW VJBp`uitt leas4-01.wpd Page 22 122 Resolution 2024-039 to plants and animals, or prepare the Leased Land for eventual development by LESSEE or others by grading, filling or contouring the Leased Land. Any such work performed by CITY shall be at CITY's sole expense and risk unless LESSEE agrees, in advance and in writing, to share such expense and risk. LESSEE shall maintain in first class condition at all times all fire, pollution and other protective equipment, if any are placed on Leased Land. 20.2 Safety Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE's maintenance responsibilities as they relate to public health or safety and LESSEE shall promptly within thirty (30) days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. If such deficiencies relate to the safety of LESSEE's operation such that the surrounding land and port facilities are exposed to risk, unnecessary potential hazards, or a risk to the public interest (as distinguished from a business risk), or if CITY is not satisfied with the proposed schedule of repairs either because of the delays therein or the scope of the repairs, then CITY may engage an independent engineering consultant well -versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perform such maintenance work. As soon as practicable following receipt of said engineer's determinations and recommendations, if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE's cost, risk and expense. 20.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect the public facilities on adjacent land, it may submit the matter to arbitration; provided, however, that pending the decision of the arbitrator it shall fully comply with the maintenance requests. If an arbitration award should ultimately find that the repairs were not necessary then LESSEE may either deduct from future rental payments the cost of such repairs or be reimbursed therefor. In deciding whether repairs requested by CITY or required by an engineering report are necessary, the arbitration panel is to give primary consideration to the safety and welfare of the Seward port facilities and the citizens of Seward in light of the highest standards in the industry. If any facility or service provided by CITY to the Leased Land shall become inadequate due to changes in environmental control standards or should any facility require updating or improvement by reason of a change in LESSEE's use of the Leased Land or operations therefrom, LESSEE shall either construct such improvements at LESSEE's own cost or reimburse CITY for such work at the option of CITY. City of Seward/Restated Lease IADOCS\433741061RestatedW VJBpcwa leasMA1.wpd Page 23 123 Resolution 2024-039 ARTICLE 21 - ENVIRONMENTAL CONCERNS 21.1 Hazardous Materials. a) Condition of Site. LESSEE has had full opportunity to examine the site for the presence of any Hazardous Material and accepts the site in "as is" condition. LESSEE acknowledges he is the original occupant of the Leased Land under prior leases and that he has used a portion of the Leased Land for retail motor fuel sales and currently has underground fuel storage tanks on a portion of the Leased Land. b) Release of CITY. Any other provision of this LEASE to the contrary notwith- standing, LESSEE releases CITY from any and all claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs or expenses (including, without limitation, attorney's fees, court costs, litigation expenses, and consultant and expert fees) arising prior to, during, or after the term of this LEASE, and resulting from the use, keeping, storage or disposal of Hazardous Material on the Leased Land by LESSEE, or arising out of or resulting from LESSEE's operations at the Leased Land under this or any prior lease of any portion of the Leased Land by LESSEE or LESSEE'S assignees or predecessors in interest, except for those claims arising out of CITY's sole negligence or intentional misconduct. This release includes, without limitation, any and all costs incurred due to any investigation of the Leased Land or any cleanup, removal or restoration mandated by a federal, state or local agency or political subdivision or by law or regulation. c) Use of Hazardous Materials on the Site. i) LESSEE shall not cause or permit any Hazardous Material to be brought upon, kept or used in or about the Leased Land except for such Hazardous Material as is necessary to conduct LESSEE's authorized use of the Leased Land. ii) Any Hazardous Material permitted on the Leased Land as provided in this paragraph, and all containers therefor, shall be used, kept, stored and disposed of in a manner that complies with all Environmental Laws or other laws or regulations applicable to such Hazardous Material. iii) LESSEE shall not discharge, leak or emit, or permit to be discharged, leaked or emitted, any material into the atmosphere, ground, ground water, sewer system or any body of water, if such material (as reasonably determined by the City, or any governmental authority) does or may, pollute or contaminate the same, or may adversely affect the (a) health, welfare or safety of persons, whether located on the Leased Land or City of Seward/Restated Lease 7:\DOCS 43374106UtestaedW V]Bpruitt Iease401.wpd Page 24 124 Resolution 2024-039 elsewhere; or (b) condition, use or enjoyment of the Leased Land or any other area or personal property. iv) LESSEE hereby agrees that it shall be fully liable for all costs and expenses related to the use, storage and disposal of Hazardous Material kept or brought on the Leased Land by LESSEE, its authorized representatives and invitees, and LESSEE shall give immediate notice to CITY of any violation or potential violation of the provisions of this subparagraph. d) Indemnification of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE shall defend, indemnify and hold CITY harmless from and against any claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs or expenses (including, without limitation, attorney, consultant and expert fees, court costs and litigation expenses) of whatever kind or nature, known or unknown, contingent or otherwise, arising out of or in any way related to: i) The presence, disposal, release or threatened release of any such Hazardous Material which is on or from the Leased Land, soil, water, ground water, vegetation, buildings, personal property, persons, animals or otherwise; ii) Any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to such Hazardous Material or any use of the Leased Land; iii) Any lawsuit brought or threatened, settlement reached or government order relating to such Hazardous Material or any use of the Leased Land; and/or Any violation of any laws applicable thereto; provided, however, that this Section 21.1(d) shall apply only if the acts giving rise to the claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs or expenses (1) occur during the term of this LEASE; (2) arise in whole or in part from the use of, operations on, or activities on the Leased Land by LESSEE or LESSEE'S employees, agents, invitees, contractors, subcontractors, authorized representatives, subtenants or any other persons; or (3) occurred during the term of any prior lease of any portion of the Leased Land previously leased by LESSEE, his assignees, affiliates, or predecessors in interest. The provisions of this subparagraph shall be in addition to any other obligations and liabilities LESSEE may have to City of Seward/Restated Lease I:\DOCS\433741061RestatedW VJBpmitt Iease4-01.wpd Page 25 125 Resolution 2024-039 CITY at law or equity and shall survive the transactions contemplated herein and shall survive the termination of this LEASE. e) Facility Operator. For all purposes, LESSEE shall be deemed the operator of any facility on the Leased Land. f) Hazardous Material Defined. As used in this LEASE, Hazardous Material is any substance which is toxic, ignitable, reactive, or corrosive or which is regulated by any Environmental Law. Hazardous Material includes any and all material or substances which are defined as "hazardous waste", "extremely hazardous waste" or a "hazardous substance" under any Environmental Law. Notwithstanding any statutory petroleum exclusion, for the purposes of this LEASE, the term Hazardous Material includes, without limitation, petroleum, including crude oil or any fraction thereof, petroleum soaked absorbent material and other petroleum wastes. g) Environmental Law Defined. As used in this LEASE, Environmental Laws include any and all local, state and federal ordinances, statutes, and regulations, as now in force or as may be amended from time to time, relating to the protection of human health and the environment, as well as any judgments, orders, injunctions, awards, decrees, covenants, conditions, or other restrictions or standards relating to same. Environmental Laws include, by way of example and not as a limitation of the generality of the foregoing, the Resource Conservation and Recovery Act of 1976, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Clean Water Act, and the Superfund Amendments and Reauthorization Act of 1986. 21.2 Permits and Reporting. a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all permits or approvals required by any applicable law or regulation. Copies of all such permits shall be provided to CITY prior to LESSEE commencing work under this LEASE. LESSEE shall promptly make all reports to any federal, state or local government or agency required by any permit or Environmental Law, including reports of any spill or discharge of Hazardous Material. The CITY, through the City Manager, may order LESSEE to immediately cease any operations or activities on the Leased Land if the same is being carried out without necessary permits, in violation of the terms of any permit or Environmental Law, or contrary to this LEASE. b) Correspondence With and Reports to Environmental Agencies. LESSEE shall immediately provide CITY with copies of all correspondence and notice, including copies, of all reports between LESSEE and any state, federal or local City of Seward/Restated Lease ]:\ROCS\ 43374106\RestatedW VJBpluitt leas 4-01.wpd Page 26 126 Resolution 2024-039 government or agency regulating Hazardous Material which relates to LESSEE's operations on or use of the Leased Land. ARTICLE 22 - ESTOPPEL CERTIFICATES Either party shall at any time and from time to time upon not less than ten (10) days' prior written request by the other party, execute, acknowledge, and deliver to such party, or to its designee, a statement in writing certifying that this LEASE is unamended and in full force and effect (or, if there has been any amendment thereof, that the same is in full force and effect as amended and stating the amendment or amendments), that there are no defaults existing (or, if there is any claimed default, stating the nature and extent thereof); and stating the dates to which the rent and other charges have been paid in advance. ARTICLE 23 - CONDITIONS AND COVENANTS All the provisions of this LEASE shall be deemed as running with the land, and shall be construed to be "conditions" as well as "covenants," as though the words specifically expressing or imparting covenants and conditions were used in each separate provision. ARTICLE 24 - NO WAIVER OF BREACH No failure by either CITY or LESSEE to insist upon the strict performance by the other of any term, covenant or condition of this LEASE or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such terms, covenants or conditions. No waiver of any breach shall affect or alter this LEASE, but each and every term, covenant and condition of this LEASE shall continue in full force and effect with respect to any other then existing or subsequent breach. ARTICLE 25 - TIME OF THE ESSENCE Time is of the essence of this LEASE and of each provision. ARTICLE 26 - COMPUTATION OF TIME The time in which any act provided by this LEASE is to be done by shall be computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday or a holiday, and then it is also excluded. ARTICLE 27 - SUCCESSORS IN INTEREST Each and all of the terms, covenants and conditions in this LEASE shall inure to the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. City of Seward/Restated Lease J:\DOCS143374106ULestatedW VJBpruitt lease4-01.wpd Page 27 127 Resolution 2024-039 ARTICLE 28 - ENTIRE AGREEMENT This LEASE contains the entire agreement of the parties with respect to the matters covered by this LEASE, and no other agreement, statement or promise made by any party which is not contained in this LEASE shall be binding or valid. ARTICLE 29 - GOVERNING LAW This LEASE shall be governed by, construed and enforced in accordance with the laws of the State of Alaska. The terms of this LEASE are subject in all respects to the Charter and Code of Ordinances of CITY in effect on the date of this LEASE, and as they may be hereafter amended, including without limitation, Chapter 7.05 of the Seward City Code. ARTICLE 30 - PARTIAL INVALIDITY If any provision of this LEASE is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated. ARTICLE 31 - RELATIONSHIP OF PARTIES Nothing contained in this LEASE shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or of joint venture or of any association between CITY and LESSEE; and neither the method of computation of rent, nor any other provisions contained in this LEASE nor any acts of the parties, shall be deemed to create any relationship between CITY and LESSEE other than the relationship of lessee and lessor. ARTICLE 32 - INTERPRETATION The language in all parts of this LEASE shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the opportunity to seek assistance of counsel in drafting and reviewing this LEASE. ARTICLE 33 - NUMBER AND GENDER In this LEASE, the neuter gender includes the masculine and the feminine, and the singular number includes the plural; the word "person" includes corporation, partnership, firm or association wherever the context so requires. ARTICLE 34 - MANDATORY AND PERMISSIVE "Shall," "will" and "agrees" are mandatory; "may" is permissive . City of Seward/Restated Lease 7:\DOCS'43374106ULeatatedW Vmpntitt lease4-01.wpd Page 28 128 Resolution 2024-039 ARTICLE 35 - CAPTIONS Captions of the articles, paragraphs and subparagraphs of this LEASE are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this LEASE. hereto. ARTICLE 36 - AMENDMENT This LEASE is not subject to amendment except in writing executed by both parties ARTICLE 37 - NOTICES All notices, demands or requests from one party to another shall be delivered in person or be sent by mail, certified or registered, postage prepaid, to the addresses stated in this Article and to such other persons and addresses as either party may designate. Notice by mail shall be deemed to have been given at the time of mailing. All notices, demands and requests from LESSEE to CITY shall be given to CITY at the following address: City Manager CITY OF SEWARD PO Box 167 Seward, Alaska 99664 All notices, demands or requests from CITY to LESSEE shall be given to LESSEE at the following address: James T. Pruitt d/b/a Gateway Texaco Liquor and Food mart P. O. Box 944 Seward, Alaska 99664 Each party shall have the right, from time to time, to designate a different address by notice given in conformity with this Article. ARTICLE 38 - FIRE PROTECTION LESSEE shall at its sole cost, risk and expense provide fire protection to its operations on the Leased Land and fire prevention to industry standards for risks to adjacent facilities such that those risks are minimized LESSEE shall continue to provide and maintain industry accepted standards of fire protection such that the City of Seward's ISO rating is not degraded by reason of LESSEE'S operation. The parties agree that with the rapid expansion of technology in the field City of Seward/Restated Lease J:IDOCS 43374106\RestatedW V]Bpruitt lease4-01.wpd Page 29 129 Resolution 2024-039 of fire prevention and control LESSEE's obligations hereunder may vary during the term of this LEASE and CITY may submit LESSEE's compliance with its obligation hereunder to arbitration not more frequently than once each five years. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the dates herein set forth. CITY: LESSEE: CITY OF SEWARD Qrrmd 'tom✓i? By: W. Scott Jankes T. Pruitt Its: City Manager Date: S f Z SId/ Date: v�/?/0 d AT ST: Patrick City Clerk (City Seal) ee16�`: OF SEA, •ii �! VP5\ �o e M W .. RJ City of Seward/Restated Lease \DOCS\433741061RestazedW VJBpmitt lwse4-01.wpd Page 30 130 Resolution 2024-039 STATE OF ALASKA THIRD JUDICIAL DISTRICT ACKNOWLEDGMENTS ) ) ) ss: THIS CERTIFIES that on this Z S day of May, 2001, before me, the undersigned Notary Public in and for the State of Alaska, personally appeared W. Scott Janke, known to me and to me known to be the City Manager for the City of Seward, Alaska, and acknowledged to me that he knows the contents of the foregoing document and executed the foregoing document on behalf of the City of Seward for the purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written. otturrot" � �,: •EC•KGrr��rr OIARk • — eixic(--LO STATE OF ALASKA THIRD JUDICIAL DISTRICT ) ) ) ss: Notary Publi in and for Alaska My Commission Expires: / Z fi 2/01 THIS CERTIFIES that on this ?Nday of May, 2001, before me the undersigned, a Notary Public in and for the State of Alaska, personally appeared James T. Pruitt, known to me and to me known to be the individual named herein and acknowledged to me that he knows the contents of the foregoing document and executed the foregoing document for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written. City of Seward/Restated Lease J:\DOCS 43374106\RestatedW VJEpmitt lease4-01.wpd Page 31 Notary Public in an ffor Alaska My Commission Expires: 3/2 2 /03 131 2004-001074-0 Recordin1§PI340 gifitITA A 6/17/2004 1:01 PM Pages: 1 of 7 K I 111111111111111111111111111111111111111111111 1111111101111 LEASE NO: RE-2000-02 LESSOR: CITY OF SEWARD LESSEE: JAMES T. PRUITT RESTATED LEASE AGREEMENT This Restated Memorandum of Lease was originally recorded in Book 105, beginning at Page 797, Seward Recording District, Third Judicial District, State of Alaska. Lease Amendment No. 1, reduces lease size by eliminating a strip of land 10 feet in width located along north boundary of Leased Land. Resolution 2004-28. This Cover Sheet Has Been Added To This Document By: City of Seward, Harbor Department To Provide Space For Recording Data. This Cover Sheet Appears As The First Page Of The Document In The Official Public Record. 132 Resolution 2024-039 Lease Amendment #1 To the Restated Lease Agreement Between the City of Seward, Alaska and James T. Pruitt This Lease Amendment is made by the City of Seward, a home rule municipal corporation located in the Kenai Peninsula Borough, State of Alaska whose mailing address is P.O. Box 167, Seward, Alaska 99664 (the "City"), James T. Pruitt d/b/a Gateway Texaco Liquor and Food Mart whose mailing address is P.O. Box 944, Seward, Alaska 99664 (the "Lessee"), and Harbor Gateway, Inc., P.O. Box 944, Seward, Alaska 99664 ("Lessee's Assignee"). WHEREAS, the City and Lessee entered into a Restated Lease Agreement effective December 14, 2000 (the "Lease"); and WHEREAS, pursuant to the Lessee's Assignment of Lease With Consent by Lessor dated May 24, 2001, Lessee assigned the Lease to Lessee's Assignee, as an affiliate of Lessee in accordance with Section 14.3 of the Lease, provided that Lessee's full faith and credit remain obligated under the Lease; and WHEREAS, the Lessee has requested that the property subject to the Lease be reduced in size to eliminate a strip of land 10 feet in width located along the north boundary of the Leased Land and immediately adjacent to the City's north harbor parking lot, Lot 2, Block 1, North Harbor Subdivision, consisting of an area approximately 1,079 square feet more or less; and WHEREAS, the City Council adopted Resolution 2004-28 authorizing the City Manager to enter into this Lease Amendment. NOW THEREFORE, the parties hereto agree that the Lease is hereby amended as follows: 1. Section 1.1 is deleted in its entirety and replaced with the following: Description of Leased Land. The leased Land is located in the City of Seward, Alaska, and described as follows (herein referred to as the "Leased Land"): Lot One (1), Block Ten(10), SEWARD SMALL BOAT HARBOR SUBDIVISION, according to Plat 2000-19, filed in the Seward Recording District, Third Judicial District, State of Alaska, EXCEPTING therefrom a strip of land 10 feet in width located along the north boundary of the Leased Land and immediately adjacent to the City's north harbor parking lot described as Lot 2, Block 10, North Harbor Subdivision, such ten foot strip containing approximately 1,079 square feet more or less. 1:1Docs\43374106\Gateway Texaco LeaseAmendment.wpd Page 1 II III 121 Mill of 7 2004.001074.0 III 133 Resolution 2024-039 2. The Leased Land described as in the amended Section 1.1 shall be surveyed and platted by Lessee in a manner approved by the City in the City's sole discretion. Such survey shall occur within one month from the effective date of this Lease Amendment. The platting shall be completed within 180 days from the effective date of this Lease Amendment. Although the area of Leased Land is reduced immediately, LESSEE is permitted access to the relinquished ten foot strip of land solely for the purpose of completing the survey required herein. 3. Upon completion of the survey and re -platting, Exhibit A to the Lease shall be replaced with the revised re -plat of the Leased Land. 4. Section 4.2(f) is deleted. 5. Section 4.2(g) is deleted. 6. Section 4.2(h) is deleted. 7. Section 5.1 Utilities is deleted in its entirety and replaced with the following: Utilities. LESSEE, at LESSEE'S sole cost and expense, shall provide for the extension of public utilities to the Leased Land sufficient for LESSEE's intended operations. In so doing, LESSEE shall comply with all CITY ordinances and requirements, and the tariffs of the affected utilities, with respect to the construction of those utilities. CITY agrees to cooperate and assist the LESSEE, through consultation and review, in LESSEE's planning and engineering of those improvements. All utilities will be located and sized in accordance to the CITY's Master Plan for the area leased. All construction shall be in compliance with the City's building code, fire code, and other applicable ordinances. Utilities constructed by the LESSEE within the public right-of-ways or within public utility easements will normally be accepted and maintained by the CITY or utility companies and may be used to serve other customers without payment of fees or reimbursement of construction cost to the LESSEE. However, this does not preclude several lessees from agreeing to share the cost of constructing a utility to serve theirfacilities. CITY or other utility companies may determine that it would be to their benefit to oversize the utility or install special fittings or equipment in order to serve other existing or future users. The additional direct costs of such oversizing shall be borne by CITY or other utility company. Such costs shall be limited to the supplier's cost of the additional fittings, equipment, direct labor, and equipment costs to complete the installation. The costs of oversizing pipe or electrical conduit shall be limited to the difference between the supplier's price to provide the size required to serve its facility and the price of the oversized material required by the CITY or utility company. I:1Docs143374106\Gateway Texaco LeaseAmendment.wpd Page 2 111011111117111111111111 III 2004.001074-0 134 Resolution 2024-039 SFr sF. LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation of LESSEE's facilities on the Leased Land, it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. 8. Failure of LESSEE to comply with any requirements of this Lease Amendment shall be a LESSEE Act of Default under the Lease if such default is not cured 30 days following notice from the City. 9. This Lease Amendment shall be effective upon execution by both parties and is conditioned upon the effectiveness of Resolution 2004-atl of the City Council. 10. All other provisions of the Lease remain unchanged and in full force and effect. DATED this a day of Apr; 2004. LESSOR: CITY OF SEWARD Phil Shealy, ATTEST: LESSEE: y Manager J es T. Pruitt Jean wis, Citt Clan _tottitttgp0 9 ®erg t'Pm Of Se1174 ..6e% 4,4 • e v^ C� e e - Q es 0 eel- 6hC Ti PAa4apt way Texaco LeaseAmendm ent.wpd OF i LESSEE'S ASSIGNEE: rbor Gateway, Inc. by James T. Pruitt, President Page 3 IIIIII411191111 4o 2004-001074.0 135 Resolution 2024-039 Consent: FIRST NATIONAL BANK ALASKA I:tDocs143374106\Gateway Texaco LeaseAmendm ent.wpd Page 4 11III 151 IIIIIIIII III of7 2004.001074.0 136 Resolution 2024-039 STATE OF ALASKA STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this F day of S(,u , 2004, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared -Phil •Shealy, known to me and to me known to be the City Manager for the City of Seward, 61; (C,,c,1 Alaska, and acknowledged to me that he knew the contents of the foregoing document and executed the foregoing document on behalf of the City of Seward for the uses and purposes therein set forth. WITNESS my hand atttiviiea1 the day and year first hereinabove written. cos olio? cs J AUBLIG 1.. v Notary Public in and for)Alaska °3� 4 OF AS; -s* My Commission Expires: - 2,'ACM Ii0v ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ,.3r d day ofs (on _, 2004, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared James Pruitt, known to me and to me known to be the individual named herein and acknowledged to me that he knew the contents of the foregoing document and executed the foregoing document for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written. r -If rc.Q ?, 3wa Notary Public in and for Alask My Commission Expires: / & —/6 — OQ I:\Docs\43374106\Gateway Texaco LeaseAmendm ent.wpd Page 5 1111111111111IIII11 6 of 7 2004.001074-0 Resolution 2024-039 STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT THIS IS TO CERTIFY that on this;3rCI day of(— I)ne , 2004, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared James T. Pruitt, known to me and to me known to be the President of Harbor Gateway, Inc., and acknowledged to me that he knew the contents of the foregoing document and executed the foregoing document on behalf of Harbor Gateway, Inc. for the uses and purposes therein set forth. WITNESS my han and notarial seal the day and year first hereinabove written. 9)6Cz, Notary Public in and for Alas My Commission, Expires: l2.-/O- 005 THIRD JUDICIAL DISTRICT THIS IS TO CERTIFY that on this 7''1- day of chn , 2004, before me, the undersigned, a Notary Public in and for the State of Alaska, personally appeared jFl2�S1} „.1`�� , known to me and to me known to be the eRF}A/du /79R /46C-'i� at First National Bank Alaska, and acknowledged to me that she/he knew the contents of the foregoing document and executed the foregoing document on behalf of Harbor Gateway, Inc. for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year first hereinabove written. �'✓Llivu--. Notary Public in an My Commission Expires: Return to: City of Seward Harbor Department PO Box 167 Seward, AK 99664 1:1Docs143374106\Gateway Texaco LeaseAmendment.wpd Page 6 11111111 IIIIIIIII III 7of7 2004-001074.0 138 Ordinance 2024-009 Ordinance 2024-009 AN ORDINANCE OF THE SEWARD CITY COUNCIL, AMENDING SEWARD CITY CODE 15.10.226 — LAND USES ALLOWED TABLE, PROHIBITING CLUSTER SUBDIVISIONS IN ALL ZONING DISTRICTS Documents: • Agenda Statement • Ordinance 2024-009 • Attachments: None UNFINISHED BUSINESS Postponed on June 10, 2024 139 Ordinance 2024-009 City Council Agenda Statement Meeting Date: May 28, 2024 To: City Council Through: Kat Sorensen, City Manager From: Danny Meuninck, Community Development Director Subject: Ordinance 2024-009, Amending Seward City Code 15.10.226 — Land Uses Allowed Table, Prohibiting Cluster Subdivisions in all Zoning Districts Background and justification: On April 2, 2024, Community Development held public work sessions with the Planning and Zoning Commission to discuss Planned Unit Developments and to determine if any specific regulations should be incorporated into city code. As part of the discussion, Cluster Subdivisions were brought up since they are a form of a Planned Unit Development. The definition of a cluster subdivision is, "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". Currently our city code allows cluster subdivisions to be built in single-family, two-family, and multi -family residential zoning districts with an approved conditional use permit. The Planning and Zoning Commission supports the current minimum lot size requirements in city code for each of these zoning districts and does not want to allow lot sizes to be any smaller. There are no Cluster Subdivisions in the city currently. Prohibiting cluster subdivisions would not restrict future developments to be able to set aside land for recreation, common open space and preservation of environmentally sensitive areas, it would simply mean that any such dedications would have to be done according to the current lot size requirements in city code. On May 7, 2024, the Planning and Zoning Commission approved Resolution 2024-010 recommending the City Council approve this amendment to city code. The effect of this legislation would be to prohibit cluster subdivisions in all zoning districts within the City of Seward. 140 Ordinance 2024-009 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Vol 1, 2.2.8 "Continue to review and update the city code." Vol 1, 3.2.1.1 "Manage land use to facilitate economic development while maintaining the historic, small town character of Seward." Strategic Plan: Other: SCC 15.01.035(A) & SCC 15.01.035 (B)(lb.) 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 $ Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Electric Water Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Sl 9ezdz'i4. Yes Attorney Signature: /s Kody George Not applicable Comments: Administration Recommendation Adopt Ordinance Other: 141 Ordinance 2024-009 Sponsored: Kat Sorensen Introduction: May 28, 2024 Public Hearing: June 10, 2024 Enactment: June 10, 2024 CITY OF SEWARD, ALASKA ORDINANCE 2024-009 AN ORDINANCE OF THE SEWARD CITY COUNCIL, AMENDING SEWARD CITY CODE 15.10.226 — LAND USES ALLOWED TABLE, PROHIBITING CLUSTER SUBDIVISIONS IN ALL ZONING DISTRICTS WHEREAS, according to Seward City Code 15.01.035, the Planning and Zoning Commission by its own motion may recommend amendments to Title 15 to City Council; 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, the Planning and Zoning Commission held a work session on April 2, 2024, to review the use and regulation of Planned Unit Developments in city code; and WHEREAS, during that work session, Cluster Subdivisions were also discussed as they are a type of a Planned Unit Development; and WHEREAS, the definition of a Cluster Subdivision is, "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"; and WHEREAS, Cluster subdivisions are currently allowed in single-family, two-family, and multi -family residential zoning districts with an approved conditional use permit; and WHEREAS, there are no Cluster Subdivisions in the city; and WHEREAS, the Commission voiced that they supported the current lot size requirements in city code for each zoning district, and would not want lot sizes to be any smaller; and WHEREAS, future developments will still be able to set aside land for recreation, common open space and preservation of environmentally sensitive areas as long as the lot sizes meet the development requirements specified for the zoning district in which the land is being developed; and WHEREAS, on May 7, 2024 the Planning and Zoning Commission approved Resolution 2024-010 recommending City Council amend Title 15.10.226, prohibiting cluster subdivisions in all zoning districts on the land uses allowed table. NOW, THEREFORE, THE CITY OF SEWARD ORDAINS that: 142 Ordinance 2024-009 CITY OF SEWARD, ALASKA ORDINANCE 2024-009 Section 1. 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): TABLE Zoning District Designations The following zoning district abbreviations are provided for information and interpretation: RR = Rural, very 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 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 RI R2 R3 UR OR AC HC CB I RM INS P Accessory building 0 0 0 0 0 0 0 0 0 0 0 0 0 143 Ordinance 2024-009 CITY OF SEWARD, ALASKA ORDINANCE 2024-009 Adult entertainment INTENTIONALLY LEFT BLANK Agency, i.e., travel, insurance, title, real estate, etc. O O O O O Agriculture 0 Airport and related services 0 C Amusement or recreation facility 0 0 0 Animal shelter 0 C C Antenna, personal TV, satellite dish O O O O O O O O O O 0 0 Art gallery O O O O O Assemblages, temporary large, i.e., circus, fair PP P P P P P Attraction, permanent major visitor C C C C C Auditorium 0 0 0 Auto repair, i.e., mechanic, glass body, upholstery C 0 Auto service/gas station 0 0 0 Auto/RV sales and rentals 0 0 0 Boat sales 0 0 0 Boat, commercial building/fabrication 0 0 Boat, harbor/marina C C C C C Boat, repair and maintenance 0 0 0 C Boat, storage commercial 0 0 0 C Bulk material, i.e., concrete, gravel, sand, asphalt C C Business, marine retail sales and service O O O O C 144 Ordinance 2024-009 CITY OF SEWARD, ALASKA ORDINANCE 2024-009 Business, package liquor 0 0 0 Business, retail sales and service 0 0 0 0 Business, retail sales and service, industrial 0 Campground, municipal C/P C/P C/P C/P Campground, camper park, private C/P C/P C/P Campground, employee C/P Car/boat wash 0 0 0 Cemetery 0 C 0 Center, community/civic 0 0 C C Center, mariner's 0 0 0 0 Center, senior or teen CC C 0 0 C C Child care, licensed center CC 0 0 0 C Child care, licensed home 0 0 0 0 0 0 0 0 0 Church C CC C C C O O O 0 Clinic, medical 0 0 0 0 0 Clubs, fraternal/lodges/socia 1/ veterans C 0 0 C Clustcr -C G € subdivision Cluster subdivision INTENTIONALLY LEFT BLANK Commercial Communications tower less than 16 feet diameter or 75 feet in height CC 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 145 Ordinance 2024-009 CITY OF SEWARD, ALASKA ORDINANCE 2024-009 Crematory 0 Docks/wharves, industrial cargo 0 0 C C Dock, passenger 0 0 0 C 0 Drinking C C C establishment, i.e., bar, nightclub, lounge Drive-in facility— Fast food, banking, etc. CCCCC Dwelling, apartment in a commercial building (limited to one unit) 0 0 0 0 0 C Dwelling, apartment in a commercial building (two or more units) 0 0 C C Dwelling, apartment, efficiency or accessory 0 0 0 0 0 0 0 Dwelling, apartment, studio CCCCC C Dwelling, attached single-family, i.e., townhouse, row CCCCCC C Dwelling, condominium CCCCCC C Dwelling, detached single-family 0 0 0 0 0 0 0 C C Dwelling, group home 0 0 0 0 0 0 C Dwelling, guest house 0 0 C Dwelling, multi- family (3 or more units) CCCCCC C Dwelling, two- family or duplex 0 0 0 0 0 C C Dwelling, watchman or caretaker 0 C Emergency services, pub/vol; i.e., fire, ambulance, rescue C CC C C C 0 C 0 0 C 0 Financial institution, i.e., bank, S&L C 0 0 146 Ordinance 2024-009 CITY OF SEWARD, ALASKA ORDINANCE 2024-009 Flea market, open air retail other than occasional C C C Fuels, bulk storage and sales C Golf course 0 0 C Golf driving range 0 0 0 0 C Greenhouse/nursery —Commercial 0 0 0 Grocery, convenience store CC C O O O O Grocery, supermarket, foodmart 0 0 Health club C C O O O Home occupation O O O O O O O O O 0 Hospital C C Housing, bunkhouse C C C Housing, dormitory 0 0 Housing, nursing, retirement, convalescent C C C Kennel, commercial, musher or fancier INTENTIONALLY LEFT BLANK Laundry, dry cleaning 0 C 0 0 Library 0 0 0 0 Livestock, excluding chickens and rabbits P P Livestock, chickens and rabbits P PPPPPP P P Lodging, B&B H/P H/P H/P H/P H/P 0/P 0/P 0/P 0/P Lodging, hostel PPP P P P Lodging, hotel, motel, lodge, inn C 0 C C Lodging, short-term rental H/P H/P H/P H/P H/P P PP P Lumber yard/building supply C 0 C 147 Ordinance 2024-009 CITY OF SEWARD, ALASKA ORDINANCE 2024-009 Manufacturing— noxious, heavy C Manufacturing, light fabrication, assembly C C 0 Merchant, transient O O O O Mobile home park C/P Mobile home, residential, not in park INTENTIONALLY LEFT BLANK Mobile home sales 0 0 Mobile medical unit 0 0 0 Mobile vendor P PP PP PPPPP P Mortuary/funeral home 0 0 0 Museum C O O O O 0 Office, boat charter, 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 0 0 Office, mobile/temporary on construction site PPPPPPPPPP P P P Office, home, professional O O O O O Parking lot C C O O O O O 0 0 0 Personal services, i.e., beauty, shoe, tailor O O O O Planned unit development C C C C C C Playground, public tot lot 0 0 0 0 0 0 0 0 0 0 0 Railroad C C C C Recreation, commercial indoor, i.e., bowling, skating 0 0 0 C 148 Ordinance 2024-009 CITY OF SEWARD, ALASKA ORDINANCE 2024-009 Recreation, outdoor, i.e., miniature golf 0 C C C Recreation, shooting range C C C Recycling center C C 0 C Recycling, self- service drop-off point O O O O O 0 0 0 Rental, Long-term O O O O O O O O O O C C Repair service, i.e., large appliance C C 0 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 PPPPP PP P P P P Salvage —auto, wrecking, scrap, junkyard C Sawmill or lumbermill C C School, college C C C School, public/private elementary/secondary CCCCCCC C C School, vocational CO O C 0 C Seafood processing, i.e., canning, rendering C C C C Shop, i.e., welding, sheetmetal, machine, steel fab. C C 0 149 Ordinance 2024-009 CITY OF SEWARD, ALASKA ORDINANCE 2024-009 Shop, i.e., wood, signs, cabinet, upholstery CC O C 0 Shopping center (mall) C C Solid waste disposal, i.e., baler, transfer, landfill C C C Storage, container PP P P 0 P Storage, explosives P Storage, outdoor, yard, material/equipment C 0 0 C Storage, self service 0 0 0 0 Storage, warehouse and distribution 0 0 0 C C Studio, radio/television C 0 0 0 0 C Tanks, aboveground associated with service station C C 0 Taxidermy O O O O O Terminal, i.e., bus, truck, freight 0 C 0 C Terminal, marine/boat passenger O C 0 0 C Theater, concert, movie 0 0 Tool/equipment rental 0 0 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 0 0 Vehicle impound lot 0 0 Vending machine repair, storage 0 0 C Veterinary hospital C C C 150 Ordinance 2024-009 CITY OF SEWARD, ALASKA ORDINANCE 2024-009 Section 2. This ordinance shall take effect ten (10) days upon enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA the 10th day of June, 2024. AYES: NOES: ABSENT: ABSTAIN: VACANT: ATTEST: Kris Peck City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 151 Resolution 2024-035 RESOLUTION 2024-035 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO APPROPRIATE FUNDS FOR INCREASED PREMIUM COSTS OF PROPERTY, CASUALTY, WORKERS' COMPENSATION, AND OTHER GENERAL INSURANCE PAID TO THE ALASKA MUNICIPAL LEAGUE JOINT INSURANCE ASSOCIATION FOR THE PERIOD JULY 1, 2024, THROUGH DECEMBER 31, 2024 Documents: • Agenda Statement • Resolution 2024-035 • Attachments: o City of Seward FY24 Contribution o City of Seward FY25 Contribution o Insurance AMLJIA Appropriation FY24 Contribution 152 Resolution 2024-035 City Council Agenda Statement Meeting Date: July 8, 2024 To: City Council Through: Kat Sorensen, City Manager From: Sully Jusino, Finance Director Subject: Resolution 2024-035: Authorizing the City Manager to Appropriate Funds For Increased Premium Costs of Property, Casualty, Workers' Compensation, and Other General Insurance Paid to the Alaska Municipal League Joint Insurance Association For the Period July 1, 2024, through December 31, 2024 Background and justification: The City of Seward is a member of the Alaska Municipal League Joint Insurance Association (AMLJIA), a governmental insurance pool established by the Alaska Municipal League. The AMLJIA provides the City coverage for property, including building, contents, boiler and machinery, automobiles, mobile equipment, and data processing equipment; casualty, including general liability, public officials and employee's liability, law enforcement professional liability, auto liability, and employee benefits liability, workers' compensation, including employers' liability; and commercial blanket bond. The City maintains supplemental marine insurance and firefighter's group accident coverage with insurance companies placed through the AMLJIA. The AMLJIA is a public entity nonprofit corporation established under AS21.76 by the Alaska Municipal League to provide risk management services for Alaska municipalities, cities, and borough school districts and regional education attendance areas; and risk pool organized to share risks among its members and the national insurance market has been gradually tightening due to higher losses, inflation, and changes in the investment market. The premium increase for workers' compensation is primarily due to increased healthcare costs nationwide and, in Alaska, the increase in employees' claims. The city expected the increasing Worker's Compensation liability cost to be reflected in the FY24 budget. Therefore, the general liability needs to be adjusted by increasing the expenditure on the insurance expense line by $60,543.13. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: 153 Resolution 2024-035 Total amount of funds listed in this legislation: $ $60,543.13 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 $ $60,543.13 Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance Yes SMIC Parking Other Electric Water All Funds Attorney Signature: Not applicable Comments: Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Attorne Review 411t4 Administration Recommendation Adopt Resolution Other: 154 Resolution 2024-035 Sponsored by: Jusino CITY OF SEWARD, ALASKA RESOLUTION 2024-035 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO APPROPRIATE FUNDS FOR INCREASED PREMIUM COSTS OF PROPERTY, CASUALTY, WORKERS' COMPENSATION, AND OTHER GENERAL INSURANCE PAID TO THE ALASKA MUNICIPAL LEAGUE JOINT INSURANCE ASSOCIATION FOR THE PERIOD JULY 1, 2024, THROUGH DECEMBER 31, 2024 WHEREAS, the City of Seward is a member of the Alaska Municipal League Joint Insurance Association (AMLJIA), a governmental insurance pool established by the Alaska Municipal League; and WHEREAS, the AMLJIA provides the City coverage for property, including building, contents, boiler and machinery, automobiles, mobile equipment and data processing equipment; casualty, including general liability, public officials and employee's liability, law enforcement professional liability, auto liability, and employee benefits liability, workers' compensation, including employer's liability; and commercial blanket bond. The City maintains supplemental marine insurance and firefighters group accident coverage with insurance companies placed through the AMLJIA; and WHEREAS, AMLJIA is a public entity nonprofit corporation established under AS21.76 by the Alaska Municipal League to provide risk management services for Alaska municipalities, cities, and borough school districts and regional education attendance areas; and risk pool organized to share risks among its members; and WHEREAS, the national insurance market has been gradually tightening due to higher losses, inflation, and changes in the investment market; and WHEREAS, the increase in workers' compensation premiums is primarily due to the rising healthcare costs both nationally and in Alaska, as well as an increase in employee claims. These factors have led to a significant increase in the city's insurance expenses; and WHEREAS, the city was expecting the increasing cost of the Worker's Compensation liability to be reflected in the FY 24 budget. Therefore, the general liability needs to be adjusted by increasing the expenditure on the insurance expense line by $60,543.13. 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 appropriate funds for increased premium costs paid to the Alaska Municipal League Joint Insurance Association 155 Resolution 2024-035 CITY OF SEWARD, ALASKA RESOLUTION 2024-035 Section 2. Funding in the amount of $60,543.13 is hereby transferred and appropriated from the unassigned account to the various departmental insurance budget expenditure line items, account 7004, as follows: General Fund $32,193.64 Harbor Enterprise Fund $14,849.02 SMIC Enterprise Fund $1,934.24 Parking Enterprise Fund $208.83 Electric Utility Enterprise Fund $7,927.64 Water/ Sewer Utility Enterprise Fund $3,429.77 Total appropriation $60,543.13 Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 8th of July 2024. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 156 Resolution 2024-035 CITY OF SEWARD, ALASKA RESOLUTION 2024-035 (City Seal) 157 Resolution 202tu rn Bill To: JIA CITY OF SEWARD* PO BOX 167 SEWARD AK 99664 807 G Street, Suite 356 Anchorage AK 99501 800.337.3682 Toll Free 907.258.2625 Office 907.279.3615 Fax www.amljia.org ATD Number Customer ID Payment Terms FY24 ORG BILLING 100034-001 Page 1 / 1 RETURN 24-046 Date 7/1/2023 Quantity Item Number Description Unit Price Ext. Price 1.0 TYAD Three Year Agreement Discount ($46,354.00) ($46,354.00) LOCAL GOVERNMENT AT ITS BEST T1(a vdR, i/ o V. Please do not pay - Thisltscredit on your account! Total ($46,354.00) Resolution 2O24 O@ 4 Policy #: 34 AMLJIA FY 2025 NOTICE OF DEPOSIT CONTRIBUTION City of Seward Kathleen Sorensen (City Manager) PO Box 167 Seward, AK, 99664 Phone (907) 224-4004 Fax: (907) 224-4038 1. GENERAL LIABILITY General Liability Limits: General Liability Deductible: Reported Payroll: Average Daily Membership (School only) General Liability Broker Fees: $10,250,000 $10,000 $7,777,122 0 so 2. PUBLIC OFFICIALS LIABILITY / School Leaders E and 0 Included in General Liability 3. WORKERS' COMPENSATION Reported Payroll: $7,777,122 Workers' Comp Broker Fees: $0 4. AUTO LIABILITY Auto Liability Limits: $10,250,000 Auto Liability Deductible: $10,000 Auto Liability Broker Fees: $0 Total Number of Vehicles: 82 Scheduled Values: $5,519,780 Comp. and Collision Premium: Comp. and Collision Broker Fees: $0 5. PROPERTY Broker: Brokerage Firm: Phone Fax Joined AMLJIA: 7/1/1988 ANNUAL CONTRIBUTION Deductibles and Rates are listed on your Property Detail Report Total Values: Total Mobile Equipment Values: Mobile Equipment Broker Fees: Property Broker Fees: $134,445,136 $6,364,015 SO so Earthquake and Flood Coverage: (see Property Detail Report for coverage and limits.) 6. POLICE PROFESSIONAL LIABILITY PPL Limits: PPL Deductible: PPL Broker Fees: Reported Police Payroll: Accreditation Discount Percent: 807 G Street, Suite 356 Anchorage, Alaska 99501 S10,250,000 $10,000 $o $1,000,000 0% THIS IS NOT A BILL - Actual Invoices are sent out June 2024 $159,353 $309,150 $25,994 $46,019 $459,271 $30,649 $102,900 so Tel: 907.258.2625 Toll Free: 1.800.337.3682 Fax: 907.279.3615 www.amljia.org 159 Resolution 2024-035 7. TOTAL ENHANCEMENT CONTRIBUTION Crime Coverage Limits: $500,000 EC Broker Fees: SO $400 Loss Control Incentive Program Discount: $0 Rate Stablization Fund Used: $0 TOTAL CONTRIBUTION 3 Year Agreement Rate Discount: TOTAL CONTRIBUTION WITH 3 YEAR AGREEMENT THIS IS NOT A BILL - Actual Invoices are sent out June 2024 $1,133,736 ($56,687) $1,077,049 160 Resolution 2024-035 City of Seward AMUIA Deposit of Contibution by year. FY23 General Liability 120,758.00 Workers Compensation 206,717.00 Auto Liability 75,201.00 Property 441,510.00 Police Professional Liability 82,500.00 Total Enhancement Contribution 400.00 3 year agreetment discount (46,354.00) Increments over the years Fiscal Year 2020 2021 2022 2023 2024 2025 880,732.00 WC 1.469 1.404 1.160 1.031 1.066 1.285 FY24 159,353.00 309,150.00 72,013.00 489,920.00 109,900.00 400.00 (56,687.00) 1,084,049.00 GL 1.118 1.140 1.106 0.982 0.829 0.763 Increment 24% 33% -4 10% 25% 0% 18% 19% 161 Federal Highway Administration Western Federal Lands Highway Division SCOPING REPORT Kenai Peninsula Borough Alaska FEDERAL LANDS HIGHWAY Project Number 69056722D00000 Project Name AK SEWARD 2019(1), Lowell Point Road Prepared By: DOWL, LLC April 11, 2024 Agenda Item -Discuss Federal Land Access Program (FLAP) Grant This is a 4-page excerpt from a 97-page document - City Clerk 162 Scoping Report III. PROJECT SUMMARY, SCHEDULE, ESTIMATE, AND CONTACTS A. SUMMARY Description Response Description Response Project Type 3R Partner Agencies City of Seward, Kenai Peninsula Borough, DNR, ADOT&PF State Other Kenai Peninsula Borough within Alaska The City of Seward has a Right -of - Way (ROW) Permit (ADL 204058) from the Alaska Department of Natural Resources (DNR) "60' PUBLIC ROAD AND UTILITY CORRIDOR." The last —1'600 ft of the roadway/project limits appears to fall outside the Seward city limits within the Lowell Point community and under the KPB Road Service Area (per KPB Road Service Area I KPB Road Service Area I KPB GeoHub). B. SCHEDULE Estimated project development schedules for three considered options are presented in the following tables. Option 1 — Existing Alignment Option 1— Existing Alignment Month to Month Duration Preferred Option Chosen June 2024 Assumed NTP September 2024 Environmental Sept 2024 — Oct 2026 25 months Hydrologic and Hydraulic Report Sept 2024 — Sept 2025 12 months Geotechnical Field Investigations Draft and Final Reporting April 2025 —July 2025 August 2025 — Nov 2026 4 months 16 months Survey & ROW Mapping Sept 2024 — Sept 2026 24 months Utilities & ROW Sept 2024—Jan 2027 28 months Design Engineering Analysis and 30% Design 75% 95% 100% Sept 2024 — Mar 2025 Oct 2025 — April 2026* May 2026 — Oct 2026 Nov 2026 — Dec 2026 Jan 2027 Mar 2027 31 Months 7 months 7 months 6 months 2 months 1.5 months 1.5 months Advertisement Bid Award Construction April 2027 — October 2027 7 months *75% design delay while waiting for geotechnical results. AK SEWARD 2019(1), Lowell Point Road, 69056722D00000 Page 21 of 57 163 Scoping Report Option 2 — Paved Roadway Option 2 — Paved Roadway Month to Month Duration Preferred Option Chosen June 2024 NTP September 2024 Environmental Sept 2024 — April 2027 31 months Hydrologic and Hydraulic Report Sept 2024 —Sept 2025 12 months Geotechnical Field Investigations Draft and Final Reporting April 2025 — August 2025 Sept 2025 — Nov 2026 5 months 16 months Survey & ROW Mapping Sept 2024 — Sept 2026 24 months Utilities & ROW Sept 2024 — May 2027 29 months Design Engineering Analysis and 30% Design 75% 95% 100% Sept 2024 — Mar 2025 Nov 2025 — Sept 2026 Oct 2026 — April 2027 May 2027—June 2027 July 2027 Sept 2027 36 Months 7 months 11 months 7 months 2months 1.5 months 1.5 months Advertisement Bid Award Construction Sept 2027 — October 2029* 23 months *Includes two winter shutdowns Option 3 — Paved Roadway with Pedestrian Facility Option 3 — Paved Roadway with Pedestrian Facility Month to Month Duration Preferred Option Chosen June 2024 NTP September 2024 Environmental Sept 2024—April 2028 41 months Hydrologic and Hydraulic Report Sept 2024 —Sept 2025 12 months Geotechnical Field Investigations Draft and Final Reporting April 2025 — August 2026** Sept 2026 — Nov 2027 16 months 16 months Survey & ROW Mapping Sept 2024 — Sept 2026 24 months Utilities & ROW Sept 2024 — May 2027 29 months Design Engineering Analysis and 30% Design 75% 95% 100% Sept 2024 — Mar 2025 Nov 2025 —July 2027** Aug 2027— April 2028 May 2028—June 2028 July 2028 Sept 2028 48 Months 7 months 21 months 9 months 2months 1.5 months 1.5 months Advertisement Bid Award Construction Sept 2028 — October 2030* 25 months *Includes two winter shutdowns ** Requires two summer field investigations delaying 75% design schedule AK SEWARD 2019(1), Lowell Point Road, 69056722D00000 Page 22 of 57 164 Scoping Report C. ESTIMATE Estimated Construction Costs (2024 Dollars) Description Preliminary Engineering (PE) Environmental Mitigation (if required) Construction Engineering (CE) Construction (CN)* Total Option 1 Existing Alignment $1,448,525 $250,000 $1,495,574 $9,970,492 $13,414,591 Option 2 Paved Roadway $4,554,209 $250,000 $3,762,627 $25,084,180 $33,901,016 Option 3 Paved Roadway with Pedestrian Facility $10,461,612 $350,000 $11,584,836 $77,232,243 $100,378,691 *Contingency Assumptions: Option 1 = 30%, Option 2 = 35%, Option 3 = 40% See Appendices 6 through 8 for estimated construction cost estimates for Options 1 through 3 and associated assumptions. See Appendix 9 for estimated project development cost details and associated assumptions. D. PRINCIPAL CONTACTS Contact and Title Stacy Bluhm, PE, Project Manager Contact and Title Doug Schoessler, Public Works Director Agency WFLHD Agency City of Seward Phone Number (360) 619-7638 Phone Number (907) 224-4093 Emailstacv.bluhm@dot.gov Address Addrelss doug@citvofseward.net AK SEWARD 2019(1), Lowell Point Road, 69056722D00000 Page 23 of 57 165 Discussion Item - Flooding Mitigation MEMORANDUM — FLOODING MITIGATION Documents: • Memorandum • Attachments: o Flooding Area Location Map o Elevation Graphic o Mitigation Proposal Graphic o Letter from Susan Urbach 166 Discussion Item - Flooding Mitigation City Council Memorandum Meeting Date: July 8, 2024 To: City Council Through: Kat Sorensen, City Manager From: Planning and Zoning Commission Subject: Flooding Mitigation: Discuss the flooding of properties south of Dieckgraeff Road and proposed solutions. Background and justification: On June 4, 2024, during a Planning and Zoning Commission regular meeting, the Commission directed staff to bring the flooding of properties south of Dieckgraeff Road and proposed solutions to City Council as a discussion item. This conversation was initiated on May 21, 2024, when the Planning and Zoning Commission held a work session to discuss the Hazard Mitigation plan update being conducted by the Borough and the Scheffler Creek flooding mitigation report that was completed by AWR Engineering. Due to the nature of these discussion items pertaining to flood mitigation, a community member who owns property located in the northeast corner of the Forest Acres Subdivision came to the work session and presented the challenges they were facing with flooding on their property that have become an issue ever since the construction of Dieckgraeff Road. After the May 21 st meeting, the Commission received comments from other property owners in the area expressing that they also have experienced flooding issues. Nick Chapman, the Service Area Program Manager for the Seward -Bear Creek Flood Service Area, walked the property at 2615 Birch Street with the owner and took elevations of key areas to assess what may be causing the flooding and determine possible solutions. The attached elevation graphic shows the elevations that he took of various locations while assessing the site. On the elevation graphic, the orange point numbered 1014 is the top of the basement wall. Point 1013 is the start of the lawn and roughly the elevation of the sump pump in the basement. The crown of Dieckgraeff Road is at 1016 and the bottom of the current ditch along Dieckgraeff Road varies between 1003-1007. A proposed solution to solve the flooding issues on 2615 Birch Street and the surrounding properties is for the City to dig a drainage ditch along Dieckgraeff Road. The current elevations of the land are slowing the drainage of water to the point that it collects on the properties and then floods the yards and homes. As part of the proposed solution, the property owners would be strongly encouraged to add fill in their backyards, raising the elevation and creating a slight slope designed to direct the water 167 Discussion Item - Flooding Mitigation towards the drainage ditch along Dieckgraeff Road. The existing culverts under Maple and Dimond would also need to be cleaned out. Deepening the ditch along Dieckgraeff Road and raising the elevation of the adjacent properties should increase the speed at which the water is able to drain away from the properties and alleviate the flooding issues. These recommendations from the Planning and Zoning Commission are being brought forward to City Council in this memorandum for discussion and direction on how City Council would like city administration to proceed. 168 DISCUSS 400 feet Flooding Area Location Map • •• A A••• Context Map • Discussion item for City Council to review flooding issues in Forest Acres and to direct staff on what mitigation action should be taken Locations where flooding issues have been reported 0 j11) cs) o-) c 0 0 LT_ a) E C C) ko • Lf- ) i o CD Ni . (7)u) T-1 •,-1 m X 0 u) 1 70 Ara cn rr) c••••J ,c,1/4D r'Ja —1 (-NJ -; 1-1 X 1-1 r1- rsj 1-1 1Lfl cLD rl E eN,1 43 c 0 c3 0 2 0 0 L a) Discussion 171 Locations where flooding issues have been reported Discussion Item - Flooding Mitigation May 29, 2024 To: Seward Planning and Zoning Commission members & Seward Community Development RE: Annual Flooding issues in Forest Acres Subdivision My name is Susan Urbach. I have owned lots TT and WW Forest Acres subdivision for the last 37 years. My home sits on lot TT and is elevated quite a bit more than our backyard (lot WW). We have a water slough, that in earlier years hardly breached the banks. If water did breach over into our yard, it would absorb into our yard or drain away naturally ending up in Resurrection Bay. Since the Levee Road (Dieckgraeff Road) was built we have annual flooding from all the rain events we receive every fall. We realize that the Levee Road was built to prevent the Resurrection River from possibly flooding our neighborhood. But this also prevents the excessive rainwater inside our subdivision from being able to drain...creating a "bathtub effect". In the fall of 2012, our house flooded. Since then, we have installed a sump pump and dug a 24" deep trench across our backyard to help alleviate some of the standing water. Most years the water fills the trench and spills over into our yard. In 2020 the water level kept climbing up towards our home. I called the City of Seward to help. There is a lot owned by the City that abuts our lot WW. They sent a piece of heavy equipment out and dug a trench from our property out towards the Levee Road to help drain some of the excessive water. Every fall it's a worry that our house could flood again. I have had the previous SBCFSA program manager and City officials visit my property (more than once) to see the impact the rains and poor drainage (because of the Levee Road) has on our property. I personally know of four other homeowners in my neighborhood that have flooding issues as well, but there may be more. I have reached out to Nick Chapman (SBCFSA service area program manager) to let him know how important this issue is to our neighborhood. He let me know that the only project slated for the Levee Road is for the unpaved portion (near the Refuse/Transfer Facility). I also contacted Daniel Mueninck (Community Development Director at the City of Seward) to ask if there are any planned projects to redesign the Levee Road. There are no planned projects. He is concerned about the excessive water issues Forest Acres homeowners are experiencing on an annual basis. Nick and Daniel visited our property on May 2nd, 2024, to see firsthand how the annual flooding affects our property. Nick has come by a few other times to take elevation measurements and to figure out a "fix". He believes that if the City of Seward dug a trench on the south side and parallel to the Levee Road, from behind our property and continuing all the way down towards the Seward Highway (gradually decreasing in elevation to allow excessive water to drain away from our houses) it should help dramatically. We (and hopefully our neighbors) could have trenches leading from our properties leading to the City's trench. It would be important that the City of Seward maintains this trench on an annual basis. We ask that the Seward Planning and Zoning commission and the City of Seward work toward an ultimate fix to this "bathtub issue" we face in the Forest Acres Subdivision. Thank you. Susan Urbach 172 Ordinance Request Date: Monday, July 8, 2024 From: Kris Peck, City Clerk Through: Council Member Calhoon RE: Discuss proposed Ordinance amending hours of sale for liquor BACKGROUND SCC 2.15.015 - Preparation. B. No ordinance shall be prepared for presentation to the council unless ordered by the majority vote of the council or requested by the city manager, or prepared by the city attorney or the city clerk on their own initiative. CONSIDERATIONS From Council Member Calhoon: I would like to put an ordinance change on the next available agenda concerning the time an establishment can sell alcohol inside the city limits. I am requesting the current ordinance be changed to prohibit the selling of alcohol between 2am to 8am. Currently businesses are prohibited from selling alcohol from 2am to 10am. My reasoning is this would allow businesses to sell alcohol at breakfast and would allow establishments to be open for televised sporting events such as football games, baseball games, etc.. It would also allow establishments to cater to visitors who may be looking for a place to relax early in the day once they arrive in Seward. COUNCIL ACTION With a majority vote, Council can direct appointed officials to draft an ordinance amending the hours of sale to be brought back for introduction and enactment. 173 City of Seward, Alaska Planning & Zoning Commission Meeting Minutes June 4, 2024 Volume 8, Page CALL TO ORDER The June 4, 2024 regular meeting of the Planning & Zoning Commission was called to order at 7:00 p.m. by Chair Carol Griswold. OPENING CEREMONY Vice Chair Brenan Hornseth led the Pledge of Allegiance to the flag. ROLL CALL There were present: Carol Griswold, presiding, and Brenan Hornseth Nathaniel Charbonneau Vanessa Verhey Sean Ulman Rhonda Hubbard comprising a quorum of the Commission; and Courtney Bringhurst, City Planner Clara Brown, Executive Assistant Kris Peck, City Clerk Excused — Ulman, Charbonneau Absent — None Vacant — One CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING -None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (HornsethlVerhey) Approval of Agenda and Consent Agenda Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the May 7, 2024 Planning & Zoning Commission Meeting Minutes SPECIAL ORDERS, PRESENTATION, AND REPORTS Proclamations and Awards -None 174 City of Seward, Alaska Planning & Zoning Commission Meeting Minutes June 4, 2024 Volume 8, Page City Administration Report City Planner Courtney Bringhurst noted there was still one vacancy on the commission. Bringhurst provided updates on items that the commission had recently worked on. The new zoning map layout and the cluster subdivision ordinance would appear on the next council meeting agenda. Bringhurst said council had directed administration to convert the Mt. Marathon trailhead access into a fire lane. On another topic, Bringhurst said the new version of the P&Z Rules of Procedure manual was still in progress. This would also include a detailed flow chart of applications that routed through P&Z. Presentations -None PUBLIC HEARINGS Resolutions Requiring Public Hearing Resolution 2024-013, of the Planning and Zoning Commission of the City of Seward, Alaska, Granting a Variance from Seward City Code 15.10.140(B)(31)(c) to Denise Cerniglia to construct an accessory apartment in a garage that is not attached to the primary dwelling unit on Lot 16A, Clearview Subdivision, Replat No. 1, Located at 1702 Resurrection Blvd; Within a Two -Family Residential (R2) Zoning District Motion (Hornseth/Verhey) Approve Resolution 2024-013 Bringhurst said the applicant applied for a building permit for an accessory apartment located in a detached accessory building. However, by definition in city code, an accessory apartment is required to be part of the main dwelling. A breezeway was required to connect the detached accessory building to the house before a building permit could be issued. The applicant had requested a variance from code because she felt the construction of a breezeway was denying her the best use of her property. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Marsha Vincent, inside city limits, said they were neighbors of the applicant. She spoke in opposition to the variance. Vincent was concerned that if the variance was granted, the property could be used for more than the allowed additional families. She also noted the property was not of historic value. She thought the breezeway would actually be beneficial to keep the ice and snow clear. Lastly, Vincent wanted to keep the current zoning and community the way it was. Denise Cerniglia, inside city limits, said she was the applicant, and she was trying to make a long- term apartment for another community member. Cerniglia said she was trying to get a second income as well as convert the space into something beautiful. She was opposed to making a giant roofed structure that would detract from the value of her home. She did not want to look out the window and see the roof of a breezeway. The breezeway was cost -prohibitive. She said building a long-term apartment was rare in Seward and she would be helping with the housing crisis. 175 City of Seward, Alaska Planning & Zoning Commission Meeting Minutes June 4, 2024 Volume 8, Page No one else appeared and the public hearing was closed. Griswold explained that this was a quasi-judicial hearing and asked commissioners to disclose any ex parte contact that they may have received. Hornseth said he was contacted by Charbonneau who noted that money was not a reason to grant a variance. Hornseth said that Charbonneau also raised a question about the historical information of the house. Verhey said the applicant was a co-worker and friend and they had discussed the variance. She said the discussion was very similar to the information that the applicant shared during public hearing comments. Verhey also said Charbonneau had left her a voice mail which was very similar in scope to what Hornseth had described. Hubbard disclosed that Charbonneau had contacted her with the same information. Hubbard said she had heard the opinion of the neighbors which was very similar to Vincent's public hearing comments. Griswold said Charbonneau had also contacted her with the same information. After the ex parte contact had been disclosed the commission started their discussion on the variance. Hornseth said the code seemed a bit harsh to require a breezeway when there was such a housing crunch. He wondered if the breezeway and the house's historic character were the issue. He noted the house was not listed on Seward's historic properties. Verhey noted the garage already existed and felt it was admirable of the applicant to go through this process instead of doing things in secret. She felt the variance should be granted. Hubbard said that she had to get a breezeway to connect her detached garage to her own house. She saw a lot of extra buildings in the neighborhood and a true lack of enforcement. She thought there were a lot of other issues going on as well, and felt that granting the variance would make matters worse. Griswold directed the commission to the agenda packet and went through each of the findings required by SCC 15.10.325 Variances. The commission discussed each finding including: the reasonable use of the real property, special conditions or circumstances, and financial hardship or inconvenience. The commission also noted which issues were valid reasons for granting a variance. 176 City of Seward, Alaska Planning & Zoning Commission Meeting Minutes June 4, 2024 Volume 8, Page The commission suspended the rules at 7: 52 p.m. to hear from the applicant. Cerniglia said the apartment was already being built and now the breezeway requirement would cover up her back yard on a beautiful sunny day. The breezeway would annihilate the whole area. This breezeway was an afterthought, and she should have been informed prior to construction of the apartment dwelling. The commission went back on the rules 7: 56 p.m. City Clerk Kris Peck noted that P&Z voting rules required a majority of the commissioners present to pass a motion. In this instance, three affirmative votes would be required to pass Resolution 2024-013. Motion Failed Yes: Verhey No: Hornseth, Hubbard, Griswold UNFINISHED BUSINESS - None NEW BUSINESS Other New Business Recommendation to direct staff to bring the flooding of properties south of Dieckgraeff Road and proposed solutions to City Council as a discussion item Bringhurst summarized the flooding issues in the area. The commission discussed the flooding issues. Griswold was concerned about the recommendation to add fill to the property on the west side of Birch Street and let the water flow towards the affected properties on the east side of Birch Street. Bringhurst said there were culverts under Dimond and Maple, but they would need to be cleaned out. The commission was in favor of sending this discussion item onto council for further consideration. Discuss Work Session topic for June 18, 2024 Bringhurst said the June 18, 2024 work session would feature a presentation from the Kenai Peninsula Borough regarding the Safe Streets Grant. Bringhurst also wanted to discuss the P&Z priority list for the second half of the year. The third topic was optional and possible options included cannabis use, sign code, housing, or Comprehensive Plan discussion. Hubbard spoke in favor of the cannabis use in the Land Uses Allowed table. There was no objection from the commission. 177 City of Seward, Alaska Planning & Zoning Commission Meeting Minutes June 4, 2024 Volume 8, Page INFORMATIONAL ITEMS AND REPORTS Reminder of Meetings Work session on Tuesday, June 18, 2024 at 6:00 p.m. Regular meeting on Tuesday, July 2, 2024 at 7:00 p.m. CITIZEN COMMENTS Kevin Quitberg, inside city limits, said he owned property in Forest Acres and was not connected to city water. In other cities like Anchorage, a person was allowed to drill a water well for a variety of reasons and were not required to be connected to the city water main. All the houses by Potter's Marsh were on septic and wells. He said other agencies were surprised that the City of Seward would hold up building on property due to the water connectively issue. He felt that his land was currently worthless due to this requirement. The rules were suspended at 8:19 p.m. to allow Quitberg to continue speaking beyond the 5-minute limit. Quitberg continued that the city approved his septic and provided power, but he was unable to drill a well. With no connection to city water, he was unable to get a building permit for his vacant lot. Anchorage had the tightest rules in Alaska, but still allowed wells to be drilled. Quitberg said that his property was one of four lots that were not deed restricted in the 1977 replat, which was the reason he was allowed to get the septic. COMMISSION AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Hubbard thanked the chair for running a great meeting. She looked forward to seeing everyone again at the next meeting. Verhey thanked the everyone for attending the meeting. She thanked the presenters for the fire station update, and thanked Community Development for all their hard work. Hornseth said tonight's decision on the variance reflected that something was wrong with the zoning in this city. There were several properties being developed and the zoning was restricting people from doing what they wanted. In regard to the work session earlier, Hornseth mentioned the possibility of Seward having smaller fire trucks. Griswold said it was rewarding to be on P&Z, although tonight's decision on the variance was very difficult. Griswold appreciated the audience members who spoke of their concerns. She appreciated the presentation during the Work Session about the fire station. Lastly, Griswold said there was still one vacancy on P&Z for a community member to help broaden their perspectives. 178 City of Seward, Alaska Planning & Zoning Commission Meeting Minutes June 4, 2024 Volume 8, Page Bringhurst thanked the commissioners for attending the double-header on a sunny day. She echoed Griswold's comments about having a variety of opinions and perspectives on the commission. Griswold also wanted to thank City Clerk Kris Peck and Executive Assistant Clara Brown for their work. ADJOURNMENT The meeting was adjourned at 8:34 p.m. Kris Peck Carol Griswold City Clerk Chair (City Seal) 179 July 2024 July August 2024 SuMo TuWea Th Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 6 1 2 3 7 8 9 10 11 12 13 4 5 6 7 8 910 14 15 16 17 18 19 20 11 12 13 14 15 16 17 21 22 23 24 25 26 27 18 19 20 21 22 23 24 28 29 30 31 25 26 27 28 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Jun 30 Jul 1 2 3 4 5 6 7:00pm P&Z Meeting [1 4th of July 1 7 8 9 10 11 12 13 7:00pm CC Mtg (Council Chambers) 14 15 16 17 18 19 20 6:00pm P&Z Work Session (Council Chambers) 2:00pm PACAB Ad Hoc Heat Loop Mtg (Seward Community Library & Museum (239 6th Ave. 21 22 23 24 25 26 27 5:30pm CC Work Session (Water & Sewer Rate Study) I7:00pm CC Mtg (Chambers) 28 29 30 31 Aug 1 2 3 Council Calendar 1 180 7/1/2024 9:06 AM 224 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa August 2024 August 2024 September h Fr 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 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Jul 28 29 30 31 Aug 1 2 3 4 5 6 7 8 9 10 I7:00pm P&Z Meeting I 6:00pm HPC WS & Mtg 11 12 13 14 15 16 17 7:00pm CC Mtg (Council Chambers) 18 19 20 21 22 23 24 I7:00am Primary Election Day 2:00pm PACAB Ad Hoc Heat Loop Mtg (Seward Community Library & Museum (239 6th Ave. 6:OOpm P&Z Work Session (Seward Community Library & Museum (239 25 26 27 28 29 30 31 I7:00pm CC Mtg (Chamhers) Council Calendar 2 181 7/1/2024 9:06 AM September 2024 September 2024 oTuWOctobere Th Fr Sa 1 2 3 4 5 6 7 1 2 3 4 5 8 9 10 11 12 13 14 6 7 8 9 10 11 12 15 16 17 18 19 20 21 13 14 15 16 17 18 19 22 23 24 25 26 27 28 20 21 22 23 24 25 26 29 30 27 28 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Sep 1 2 3 4 5 6 7 1 Lahor Day I 12:00pm PACAB Mtg 7:00pm P&Z Meeting 8 9 10 11 12 13 14 I7:00pm CC Mtg (Council Chambers) 15 16 17 18 19 20 21 6:00pm P&Z Work Session (Council Chambers) 12:00pm PACAB WS 2:00pm PACAB Ad Hoc Heat Loop Mtg (Seward Community Library & 22 23 24 25 26 27 28 I7:00pm CC Mtg (Chambers) 29 30 Oct 1 2 3 4 5 Council Calendar 3 182 7/1/2024 9:06 AM