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08122024 City Council Packet
Seward City Council Agenda Packet Photo by Kris Peck Monday, August 12, 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, August 12, 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 - None B. City Manager Report Pg. 5 C. City Clerk Report Pg. 21 D. City Attorney Report .Pg. 24 E. Other Reports and Announcements - None F. Presentations — None 7. CONSENT AGENDA (also marked with an asterisk *) A. Minutes of Preceding Meeting 1) *Approval of the July 22, 2024 City Council Meeting Minutes Pg. 26 B. Introduction of Ordinances -None C. Resolutions- None D. Other Items 1)* Re -appoint Elizabeth Dunn to PACAB with a term set to expire July 2027 Pg. 32 City Council Meeting Agenda August 12, 2024 1 1 P a g e 2)* Appoint Jesse Groom to PACAB with a term set to expire July 2027 .Pg. 35 3)* No grounds for protest to the renewal of liquor license for the Alaska Seafood Grill Pg. 36 4)* No grounds for protest to the renewal of liquor license for the Gateway Liquor & Food Mart ...Pg. 38 5)* No grounds for protest to the renewal of liquor license for the Seward Alehouse Pg. 40 8. PUBLIC HEARINGS (Public hearing comments are limited to five 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 1) Ordinance 2024-011: Amending Seward City Code 8.05.045 Hours of Sale for Alcoholic Beverages Pg. 43 2) Ordinance 2024-012: Amending Seward City Code Title 3 Personnel Anniversary Date Definition Pg. 49 B. Resolutions Requiring Public Hearing 1) Resolution 2024-041: Authorizing the City Manager to Negotiate a Land Swap for a Portion of City Property at 1000 Hemlock Avenue in Exchange for a Portion of Private Property at 2405 Seward Highway Pg. 54 9. UNFINISHED BUSINESS A. Ordinances -None B. Resolutions -None 10. NEW BUSINESS A. Ordinances for Introduction - None B. Resolutions 1) Resolution 2024-042: Authorizing the City Manager to Upgrade the Exterior Doors on Main Entrance of the Seward Community Library & Museum With ADA-Compliant Sliding Doors, Using a Combination of Donated and Appropriating Funds .Pg. 64 C. Other New Business 1) Discuss wells and septic tanks within city limits 2) Discuss Work Session calendar Pg. 79 3) Discuss City Manager 2025/2026 travel .Pg. 80 11. INFORMATIONAL ITEMS AND REPORTS A. Boards and Commissions Minutes City Council Meeting Agenda August 12, 2024 2 1 P a g e 1) Planning & Zoning Commission Meeting Minutes from July 2, 2024 .Pg. 81 B. Other Items 1) Upcoming City Council Meetings a. August 26, 2024 Work Session at 6:00 p.m. Topic: Discuss wells and septic tanks within city limits Pg. 86 b. August 26, 2024 Regular Meeting at 7:00 p.m. 2) Providence Financial Information Pg. 87 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 — None 15. ADJOURNMENT City Council Meeting Agenda August 12, 2024 3 1 P a g e CMR August 12, 2024 City Manager's Report — August 12, 2024 Hello and happy August, With a three week stretch between council meetings, we were able to buckle down and chip away at a lot of longer -term projects. After our previous council meeting, I went to Anchorage for two days to participate in the Railbelt Transmission Organization working group in response to House Bill 307 that creates a unified transmission group throughout the railbelt. One of our attorneys Kody, who has also been working on the Chugach rate case, is working with the group to navigate the intricacies as well. It'll be a months - long process to walk through and discuss all the details, but it's an exciting one. We're working through the internal stages of FY25 and 26 budgeting, including departmental budgets. We plan on having our first budget work session on October 14, but we'll be working on a lot in the background between now and then! On August 11, I spent the afternoon visiting with a group of congressional staff from Washington D.C. including representatives from the Senate Commerce Committee, the Subcommittee on Coast Guard and Marine transportation, and both of our state's federal Senators. In other federal news, the Senate passed the 2024 Water Resources Development Act which extended the Army Corps operating and management responsibilities from 2027 to 2032, or until the new project is finished — whichever comes first! This is good news so the responsibilities didn't automatically revert back to the city. We also received word that Senator Murkowski included $4 million in the Senate Finance Committee FY25 appropriations bill for the replacement of Seward's old water mains. The bill still has a long journey until it's finalized, but thanks to Sen. Murkowski's office for tackling the first big step! Additionally, the Alaska Railroad finalized approval for construction of the new $137 million cruise terminal! Approval from the railroad board allows AKRR to enter into agreements with the project developer, the Seward Company. It also marks a 30-year commitment from Royal Caribbean Group. This is an exciting project that will bring a big economic boost to our community as the current terminal is at the end of its useful life. We have a lot of big projects on the city side that will complement the new terminal. We are excited to be working on updating our comprehensive plan ahead of this new development so that our community and its infrastructure are prepared for the exciting economic impact that the new terminal will bring. Right after the August 12 meeting, I'll be heading to Kodiak for the Alaska Municipal League summer session. I'll report back at the next meeting about how that meeting went. Thanks, and good luck to all the anglers in the Seward Silver Salmon Derby! - Kat Additional Updates from Administration DRP: Danny Meuninck and Jason Bickling met with Joe Tougas and are getting the process set up for them to start making payments on their DRP program as they have begun to sell lots. 5 CMR August 12, 2024 Library Heating System Update: CRW will be installing a fix for the hydronic system that will test the water and keep it balanced so the different metals in the system don't negatively interact. Legal: We are waiting to hear the rulings on the CEA Rate case and the attorney's fees awarded from the McDonald compliance lawsuit. Heat Loop Project: We just completed the reporting for Q3 for this project and are working toward the application for the Phase 2 Selection. We are also working on the grant application for the CDS HUD CPF Award. Purchase Orders: As required by the Seward Municipal Code 6. 05. 010, the following purchase orders between $5,000 and $30,000 have been approved by the City Manager since the last council meeting. Department Order Date Vendor Description Amount LIBRARY 7/19/2024 CRW ENGINEERING GROUP LLC LIBRARY HYDRONIC TREATMENT - PROFESSIONAL SERVICES $5,000.00 SEWER 8/01/2024 MARATHON ELECTRIC LLC Town Wastewater Repair and contract services $5,530.00 POLICE 7/18/2024 SAFRAN TRUST 4D INC Network Atomic Clock for PD and City networks $12,200.00 Electric Department • The RFP for Seward's Power Supply Agreement was completed and sent to the interested utilities. Responses are due by Aug 30, 2024. • We are participating in review and development of regional electric system reliability standards by the Railbelt Reliability Council. • We are having initial discussions for development of the Railbelt Transmission Organization recently authorized in HB 307 (signed into law by Governor Dunleavy on July 31). • We completed our Right of Way (ROW) management plan and the application for extension of Forest Service permit for transmission and distribution ROW, across Forest Service lands. • GIS System Enhancements: • City of Seward's GIS Technician, Selena Soto, has significantly increased the amount of data in our GIS system. • Selena has also assisted the Electric Department in a major project mapping request. • Technology Exploration: • We are exploring new technology to enhance data for vegetation management. • Preventative maintenance plans improve safety and reliability of our electric grid. We are investigating methods for pole top inspections to aid in creating long-term preventative maintenance plans. • Our field staking engineer is keeping abreast of new service and subdivision development activities • Our three-man line crew continues to excel in managing outages and scheduled work for our valued customers. 6 CMR August 12, 2024 • Working with our contractor Electric Power Systems and Electric Power Constructors, our power plant and substation team successfully completed commissioning of the Fort Raymond substation and switchyard upgrades. • Team Excellence: Since my arrival in Seward at the beginning of July, I am pleased to report that Seward has a dedicated team of employees who go above and beyond daily to serve our customers. Community Development • The Planning and Zoning Commission has a full roster for the first time in a while! Congratulations to Clare Sullivan on returning to the Commission. We are excited to have her back. • The Planning and Zoning Commission approved a resolution to update the current code language around marijuana establishment regulations. No current regulations were recommended to be changed at this time. The goal of this recommendation is to help clarify in code what the current regulations are, so it is easier for the public to understand. The Commission does have plans to discuss if there is any need to address the current regulations at a work session later this year. • Community Development has had initial conversations with an engineering firm to put together a drainage plan to help with the flooding that occurs in the Forest Acres neighborhood. • Ongoing work continues on the Comprehensive Plan update. Staff is currently working on developing a number of public engagement surveys. Feedback from city administration and council will be requested before we go live with the public. Fire Department • Fire Calls for the Year: 302 • Building Permits Issued for the Year: 33 permits with building valuation of $3,192,761 • Students from Obihiro having been enjoying their visit and exploring the city • The Fire Explorers continue to learn new Fire and EMS skills and are eager for school to start so they can begin to recruit new members! • Great mutual aid training with Bear Creek on water shuttles, drafting, and preplanning for incidents at the airport. • Exclusive sneak peek at the old 1941 Ford Fire Engine restoration project that the volunteers are tackling (Firefighter Jason Harrington leading the way). The motor was pulled, new parts installed and freshly painted — ready to go back in. The goal is to have the 'ol 41 be in next year's July 4th parade! • Stay tuned for more details concerning fire hydrant testing in the Seward Community. 7 CMR August 12, 2024 Police Department • We have recovered a ton of bicycles which have been reported as found in the local area. If you're missing one or your neighbors are missing one, give us a call, we might have it. • There's a spay/neuter clinic coming up on Sep 9 at the Seward Animal Shelter. For more information call (907) 422-7150. Shelli or Katja will be able to help you out. You can also reserve your spot by going to alaskaspca.org, select "request application" in the right top click "spay/neuter." In the last question please put Seward outreach. They will be accepting SOS (Save Our Seward Pets) vouchers for $100 off dog surgeries and $75 off cat surgeries, the vouchers are available at the shelter. • Local Citizens are constantly being harassed by telephone scammers. Do not fall for their traps. As an example, Law Enforcement agencies don't call you up to tell you we're going to arrest you if you don't pay us for something. If you hear something like this from a caller, they are scamming you. Hang up, block their number, and report it to the police. On a personal note, from Chief Nickell, I don't answer calls I don't recognize, period. If it's something or someone important, they will leave a message. Scammers don't tend to leave messages. Seward Parks and Recreation Department Sports & Recreation: • Sports and Rec held a pickleball tournament Aug 7 • AVTEC Gym Closed Aug 12-13 for Student Orientation • Racquetball Challenge: Wed night from 5-8PM • Kids ballet starts Sat Aug 17 from 10-12PM Campgrounds: • Working on the Williams day use area • Campground improvements continue including painting Forest Acres and waterfront restrooms • Shower house plumbing repairs are ongoing Park Maintenance and Parking: • Painted Lewi Field Dugouts and Citizen's Field Pavilion • Installed the Ryan Lewis Memorial Bench • Improvements to Two Lakes Park continue, including refurbishing the sign and working on the Boy Scout steps that once lead to the Two Lakes Park trail from Second Ave CITY OF SEWARD HISTORIC W00DLAWN CEMETERY • Park and Trail signs are being repainted and spruced up all over town and we are accomplishing as many projects as possible, making the most of the short summer season Q • Parking operations are running smoothly 8 CMR August 12, 2024 Finance Department • Billing updates: The auto pay failure we experienced on July's bills was related to the US mass IT outage, that took place on 7/19-7/23, affecting the computer system nationwide. We encourage our customers to make a one-time payment via our city portal Account Information: One Time Payment: City of Seward (paymentus.com). The city is waving the penalties and late fees for July and August to mitigate the inconvenience caused by this issue. • Finance and Util-Assist is preparing for the second round of utility disconnection due to accounts in delinquency status when weather conditions permit. We offer deferred payment plans and information on assistance organizations; don't hesitate to contact our Utility Department. There are approximately 80 accounts in delinquency status that meet the requirement for disconnection • Audit Update: Finance has finalized the FY23 audit, and our auditors will present it to the council on August 26, 2023. • Budget update: Discussing with department heads processes and forms for the 25_26 budget. Harbor Department Seward Harbor • Continuing to discuss design options of Z Float Expansion Project. • One minor incident was reported within the Harbor between Jul 12 — Jul 31. • We had a total of 36 lifts with the 50-ton Travelift for the month of July • Deputy City Manager Bickling and I had an exciting and promising meeting to discuss the new Harbormaster building, our needs and potential site locations. • The department is continuing to work on our upcoming budget needs for 2024/25. SMIC • North Dock interest is very strong! The schedule is full till mid -August for that facility and vendors are on the schedule till October. • No major incidents were reported within the SMIC Yard/Basin between Jul 12 —Jul 31. • We had a total of 4 lifts with the 300-ton Travelift for the month of July. • North Dock saw over 434 tons of cargo/freight cross the dock. Public Works • The Army Corp of Engineers recently held an Industrial Day for interested contractors to brief them on the tunnel project and meet on site to see locations proposed at each end of the new tunnel. It was well attended with about 12 contracts onsite and another 12 or so online for the briefing. Then the Corp project manager held one-on-one meetings with any contractors who wanted. • The Street Department has one new operator being trained by other more experienced operators to work safely and learn about each department. We also filled our open operator position, and he will start in the next few weeks. • Yearly summertime tasks keep the street crews busy, and they continue working on yearly culvert cleaning and ditching to aid drainage during rainy weather. Pavement patching and 9 CMR August 12, 2024 repairs continue as we move through the summer. Gravel roads are being routinely graded and more often as conditions necessitate. • The Building Maintenance Custodians are doing a great job at the city buildings and surrounding grounds at each site. We appreciate their efforts to keep city buildings looking nice! • The Water and Wastewater Utilities have repaired problem water lines and scheduled a paving company to repave patches of streets where pavement was removed during the dig. • Water and Wastewater crew are continuing to train the two new employees by having them riding along to help and learn the required testing, repairs, and maintenance at all those facilities. • The new foreman at the Maintenance Shop is reorganizing tools and shop supplies, cleaning out obsolete items, and getting a better feel for what tools we have and where they go. We are still going strong with a lot of preventative maintenance and repairs to the City's vehicles and equipment. Library& Museum Department Current Library Programs: Summer Reading Program has 20 active field trip participants and 89 registrants. There were also 20 scavenger hunt completions. Field trips included visits to the Seward Harbormaster's Office, Alaska Dept of Fish & Game, UAF Seward Marine Center, Samson Tug & Barge, Alaska SeaLife Center, and AVTEC. The program will conclude with a summer celebration at Branson Pavilion on Aug 14 from 10 am to 12 pm, with lunch provided. Story Time hosted 4 events in June, attracting 35 children and 12 adults, with many repeat attendees. Topics have covered Puffins, Father's Day, Summer Solstice, Animal Footprints, Whales & Sea Creatures, Ravens, Benny Benson & Alaska State Flag (the kids even got to see the ORIGINAL flag on display in the museum). 10 CMR August 12, 2024 Thinking Money for Kids is still in the planning process and will begin the end of August. Upcoming Library Exhibitions: Americans and the Holocaust Exhibit is nearing. To officially open the exhibition, we will host an opening reception on Friday, August 30th, beginning at 2 pm. Our keynote speaker is Tom Kizzia, was an Anchorage Daily News reporter for 25 years. He is the author of three non-fiction books about Alaska: "The Wake of the Unseen Object," "Pilgrim's Wilderness," and "Cold Mountain Path." And he wrote a 4- part series for the ADN, SANCTUARY: Alaska and the Holocaust - Anchorage Daily News (adn.com). Additionally, we are hosting Saturday matinees in August, showcasing films from the era and about WWII. See our Facebook page for a list of those films and show times. Upcoming Museum Exhibitions: Alaska's Response to the Holocaust & WWII: Mirroring the "Americans and the Holocaust" exhibition that will be held in the Community Room, this window display exhibit will showcase a collection of Seward magazines and Alaska newspapers from the WWII Era: Daily Alaska Empire, Fairbanks Miner, Seward Gateway, and YANK U.S. Army Magazine. These publications offer a vivid snapshot of the period, capturing the propaganda and information soldiers and civilians received in Alaska. From Injustice to Legacy - The Story of Harry Kawabe and Japanese American Internment: This exhibit will aim to honor and tell the story about Harry Kawabe, while providing a broader context for understanding the impact of Japanese internment during WWII. (On Display August 27— October 19) Collections The inventory of the Museum's collections is complete. Currently, the Curator and Resurrection Bay Historical Society's Collections Committee are looking into updating the Museum Collections Management Policy. 11 CMR August 12, 2024 City of Seward - Human Resources Manager Report Staffing Information Department lob Title # of Posi ions Fil ed Administration City Manager Deputy City Manager Human Resources Manager Executive Assistant TOTAL: Finance Director Deputy Finance Director Senior Accountant Accounting Technician III Accounting Technician II Accounting Technician - Utilities Accounting Tech Payroll Accounting Tech Accounts Payable TOTAL: Public Works Director Street Foreman Maintenance Mechanic Public Works Technician Shoo Foreman Water and Wastewater Foreman Water and Wastewater Operator Building Maintenance Technician TOTAL: 3 3 Community Development Director Planner Fxecubve Assistant TOTAL: Electric Director Operations Supervisor Field Engineer Executive Assistant Lineman Plant Operator TOTAL: Fire Department Chief Deputy Chief Executive Assistant Building Official Fire Marshal Firefighter/EMT Seasonal - Summer Laborer TOTAL: Harbor Harbor Master Deputy Harbor Master Office Manager Executive Assistant Harbor Worker II Harbor Worker III Seasonal - Summer Laborer Part -lime Seasonal - Summer Laborer Full -Time TOTAL: 1 1 IT Director Senior IT Tech IT Technician TOTAL: Library Director Deputy Library Director Library Technician Curator Library Aide Seasonal - Aides TOTAL: Police Chief Deputy Chief Sergeant Patrol Officer Patrol Officer not funded Executive Assistant Corrections Sergeant Corrections Officer Corrections Officer not funded Dispatch Supervisor Dispatcher Animal Control Officer Animal Control Officer Assistant DMV Clerk TOTAL: 27 18 Parks & Recreation Director Deputy Director Executive Assistant Campground Coordinator Program Coordinator Recreational Assistant Maintenance Technician Seasonal - Summer Seasonal - Winter 14 1 3 TOTAL: 24 9 City Clerk's Office City Clerk 1 Deputy CiN Clerk 1 Executive Assistant 1 TOTAL: 3 Total number of authorized positions: 124 Total number of filled positions: 105 12 City of Seward PO Box 167 Seward, Alaska 99664 laska Starts Mere... * To: Seward City Council From: Kat Sorensen, City Manager, City of Seward Date: August 5, 2024 Subject: Cost Overrun on Ballaine Water and Seward Project CMR August 12, 2024 City Manager's Office Kat Sorensen, City Manager Phone: 907-224-4012 Email: ksorensen@cityofseward.net I am writing to inform you of a recent development concerning the Ballaine Water and Seward project. In July 2023, City Council appropriated $408,589.56 from the ARPA (American Rescue Plan Act) Account to the Infrastructure Expense Account for Ballaine Boulevard water and sewer improvements. The project incurred an additional cost of $25,194.44 beyond the contract estimate in Resolution 2023-075. This increase is attributed to changes made in lot sizes as per the decision reached at the June 23, 2023, City Council meeting. During that meeting, the City Council approved a revised development plan which included the addition of three extra water services. While the project was completed in line with the Council's direction, it led to the increase in project costs that were not originally accounted for. At the time of these changes, administration had proceeded based on the understanding that a 10% contingency of the budgeted $408,589.96 would be factored into the resolution. This contingency would typically cover such unforeseen adjustments, as the change order fell below the 10% threshold and would generally not pose a significant issue. However, it has come to our attention that the 10% contingency was not formally documented in the resolution that approved the project. As a result, the cost overrun has been classified as a deviation from the original budget. The project has been completed and services paid for, but this clarification is particularly important given that the funding for this project was sourced from the American Rescue Plan. Proper documentation and adherence to budgetary provisions are essential to ensure compliance with federal funding requirements and maintain transparency in our financial practices. Moving forward, we will ensure that all contingencies are properly documented and accounted for in project resolutions to avoid similar situations. I appreciate your understanding and am available to discuss any further questions or concerns you may have regarding this matter. 13 City of Seward PO Box 167 Seward, Alaska 99664 laska Starts Mere... * To: Seward City Council From: Kat Sorensen, City Manager, City of Seward Date: July 30, 2024 Subject: Fingerprint Machine to Spring Creek CMR August 12, 2024 City Manager's Office Kat Sorensen, City Manager Phone: 907-224-4012 Email: ksorensen@cityofseward.net At the May 13, 2024 Seward City Council meeting, Alaska Department of Corrections representatives were in attendance, and we discussed what to do with the City's fingerprint machine. The machine is roughly 15 years old, though it is still in working order. With the closure of the jail, the City is no longer using it regularly. However, it continues to provide an important public service to City residents, who need fingerprints for employment needs and other requirements. Without the service being readily accessible and administered by qualified operators, Seward citizens in need of fingerprints would be forced to drive a minimum of 90 miles to either Anchorage or Soldotna. Since that meeting, we have sought legal advice and worked to determine whether a sale, lease, or donation to DOC was preferable. SCC § 7.01.010 provide that sale of surplus property is appropriate when personal property is "no longer necessary for corporate or public purposes." It can then be sold or donated. The process requires written findings. However, the fingerprint machine does not fit this definition. While no longer necessary for "corporate," or city purposes, it is needed for "public purposes," as described above. We have evaluated the options pursuant to Title 6, which governs procurement. While giving the machine to Spring Creek is not "procurement," Chapter 6.10 provides a helpful analytical framework. SCC § 6.10.050 states that competitive procurement is not necessary when it is not in the public interest to use such processes, but that the manager must make written findings to the council that the public interest is not served. Those findings are: The machine cost roughly $5000 new but is now fifteen years old. The city has made some software updates to keep it running. Its resale value is minimal due to its age and location in Seward. We have located similar machines for sale at a cost as low as $49.99 on sites such as Ebay. The administrative burden and cost of a sale on the open market is disproportionate to the sales price that could be realized. Spring Creek Correctional Center has a need for the machine. They have agreed to provide services to local citizens, as needed, if the city provides them the machine. The City can work with Spring Creek to approve a cost structure that compensates Spring Creek for its time to take fingerprints, while remaining affordable. The importance of having the machine remain in Seward and remain with an entity that is capable of maintaining and using it appropriately, outweighs any relatively small amount that could be achieved in a sale. This will ensure that citizens who need fingerprints for job applications, background checks, or other needs are not forced to drive to Anchorage or Soldotna. 14 CMR August 12, 2024 City of Seward, Alaska. Central Treasury Report 07.31.2024 The attached Central Treasury Report provides the unrestricted cash available by fund as of July 31, 2024. The intent of this report is to provide transparent financial information to the public. These amounts fluctuate on a daily basis and are reconciled every month; however, these numbers are not audited. The amounts reports on the agenda statement items for the council represent the available fund balance/net assets for the impacted funds. This is a longer -term perspective that takes into account the assets and liabilities of the fund, which results in different numbers than the Central Treasury Report. Any funds with negative cash on the Central Treasury Report are either waiting for funding for expenses already paid or are in the process of being closed out, where the City is required to expend the funds prior to requesting reimbursement for expenditures; negative cash for a fund does not represent a problem with operations. For example, when the City conducts repairs following a major disaster declaration, it can take multiple years before the City receives reimbursement from FEMA for its costs. Funds in Negative balance: • Fund 11113 Harbor CPVKPB — Res.2023-066 Funding for Seward City Tours Services. The City will receive funds from CPV KPB. • Fund 80042 Seward Geothermal Heat Pump Project Grant. The City will be reimbursed from the State Grant. • Fund 17332 SMIC Hypochlorite Generator Project. The City will be reimbursed by the State Loan- Grant. • Fund 15340 Electric Critical Infrastructure Fund. Funds will be allocated from the revenue bond proceeds Res.2022-023 Electric Fund. If you have questions or require additional information, please feel free to contact Finance Director Sully Jusino at (907)224-4059, or by e-mail at sjusino@cityofseward.net. 15 CMR August 12, 2024 COS Central Treasury Report, July 31,2024 Cash and Investments Wells Fargo Checking Wells Fargo Payroll Clearing Account Undeposited Funds (Cash in Transit) Investments 2023 2024 8,208,695.89 9,530,820.08 0.00 0.00 0.00 114,440.74 100,234.40 829,165.64 43,653,140.88 45,535,161.60 51,962,071.17 56,009,588.06 By Fund: Fund Name Fund Number General Fund 01000 9,399,780.38 10,406,393.04 Teen Council Agency Fund 02000 6,175.05 6,330.70 Motor Pool Internal Service Fund 03000 2,066,304.34 2,065,104.99 Compensated Absences Fund 03100 500,180.86 526,984.83 Harbor Enterprise Fund 11000 242,829.75 1,922,928.66 Harbor MRRF Fund 11001 844,027.56 942,682.56 Harbor Passenger Fee Fund 11002 691,223.30 56,636.60 Harbor CPV State 11103 1,748,362.84 2,156,408.33 Harbor CPV KPB 11113 (902,239.02) 425,663.48 NE Harbor Launch Ramp Renovation Project - City 11422 (2,083.33) 0.00 G, K & L Floats City 11430 685,023.90 0.00 G, K & L Floats State 11431 (22,481.12) 0.00 Cathodic Protection Project 11440 13,679.80 0.00 SMIC Enterprise Fund 12000 407,745.62 653,140.73 Parking Enterprise Fund 13000 810,241.46 1,004,576.99 Electric Enterprise Fund 15000 3,961,517.19 5,201,748.24 Electric MRRF Fund 15001 957,301.76 1,607,301.76 Transmission Line - City Funding 15310 0.00 184,640.38 Electric Critical Infrastructure Fund 15340 507,615.55 (3,850.71) Electric Nash Road Infrastructure Project 15351 3,156,599.97 253,955.13 Water Enterprise Fund 17000 2,411,661.71 2,693,236.10 Water MRRF Fund 17001 852,572.15 852,572.15 Water ARPA Fund 17100 479,345.32 190,984.63 Lowell Canyon Water Storage Tank 17330 222,914.29 222,914.29 SMIC Hypochlorite Generator Project 17332 0.00 (22,775.00) Wastewater Enterprise Fund 18000 2,761,285.25 2,927,951.11 Wastewater MRRF Fund 18001 742,025.05 742,025.05 Wastewater ARPA Fund 18100 537,422.18 375,517.45 Hospital Enterprise Fund 19100 1,570,701.88 2,839,183.68 Healthcare Facilities 19102 927,284.17 927,284.17 Seward Mountain Haven Enterprise Fund 19200 11,327,471.16 13,493,292.22 Seward Historical Tour 30016 349.00 349.00 SCHC - City Funding 30040 0.81 0.00 Bus Transportation - CPV Funds 30051 871,098.93 (169,755.00) Erosion Fund 30070 2,150.00 2,150.00 Capital Acquisition Fund - City Funding 80010 566,423.44 1,104,910.02 Animal Shelter 80015 68,005.03 0.00 Streets & Sidewalks - City Funding 80020 74,554.09 74,554.09 Energy Efficiency - City Funding 80040 93,784.69 93,784.69 Seward Geothermal Heat Pump Project Grant 80042 0.00 (81,455.66) Developer Reimbursement Program 80071 1,842,678.54 1,517,866.53 ARPA - LGLRR 80084 1,480,227.04 814,352.83 Japanese Creek Flod Mitigation -City Funding 80117 58,310.58 0.00 Total Pooled Cash and Investments by Fund 51,962,071.17 56,009,588.06 Note: *The above is the pooled cash balance of each fund, which simply represents the amount of available cash held by each fund. This differs from the fund balance in that the fund balance also considers the fund's current assets and liabilities. Prepares l6Finance CMR August 12, 2024 City Of Seward Summary of Developer Reimbursement Program As of 7/31/2024 HILLTOP PROPERTIES HARMON PROPERTIES LLC ZIMMERMAN INVESTMENTS LLC -PHASE 2 Authorized Funding on 11/28/22 Per Res.2022-116 Expenditures Unspent Funds $ 3,993,000.00 $ 1,706,940.05 $ 2,286,059.95 Authorized Funding on 5/08/23 Per Amended Res.2023-050 Expenditures Unspent Funds $ 323,130.00 $ 222,876.99 $ 100,253.01 Authorized Funding on 5/9/22 Per Res.2022-039 Expenditures Unspent Funds $ 311,873.00 $ 178,055.60 $ 133,817.40 DRP Unspent Funds $ 2,520,130.36 ARPA Unspent Funds as of 7/31/2024 $ 1,006,686.33 $ 1,513,444.03 DRP Available Fund Balance $ 1,517,866.53 17 CMR August 12, 2024 Developer Reimbursement Program Fund July 31, 2024 80071 - Developer Reimbursement Program Fund Last Year This Year Balance Balance Assets 1099 Due To/From Other Funds - Central Treasury 1,797,203.18 1,517,866.53 Total Assets 1,797,203.18 1,517,866.53 Liabilities 2000 A/P Trade 2010 Reserve for Encumbrance 2400 Unearned Revenue - General Total Liabilities Fund Balance/Net Assets Revenues 3400 Unassigned Fund Balance 3700 Transfers -In 3710 Transfers -Out Total Fund Balance/Net Assets 4253 Grant Revenue - Misc Grants 4700 Other Financing Sources 5930 Assessment Principal Total Revenues Expenditures/Expenses 8100 Land 8101 Infrastructure 8103 Capital Equipment 8105 Improvements other than Buildings Total Expenditures/Expenses 38,592.28 38,592.28 923,814.90 1,425,000.00 333,610.90 1,425,000.00 2,348,814.90 1,758,610.90 50,000.00 50,000.00 550,829.56 234,623.90 39,374.44 56,120.47 590,204.00 290,744.37 18 City of Seward Location: Seward Commodities: Electricity, Water, Sewer, Garbage Collection Sully Jusino 1 Finance Director 1 (D) 907-224-4059 sjusino@cityofseward.net Stacy Fernandes -Paine I Manager, Customer Experience 1 416-436-8169 1 sfernandes@util-assist.com Department Updates This month it was reported that Autopay is not working and as a result our agent handled 122 calls to support customers with payment inquires. Seward will be working directly with Paymentus to source out a solution Contact Centre July 2024 Report CMR August 12, 2024 Total Voice Calls Calls Offered: 264 Calls Answered: 258 Answered Voice Interactions 98% > 30 seconds 91 % < 30 seconds Total CCR Callback Total Outbound: 0 Total Answered: 0 Abandoned Calls 3 > 30 seconds 3 < 30 seconds Did you know? CustomerAssist's Managed Services for utilities and municipalities eliminates the hassle of back -end billing, call centre and IT hosting, letting you focus on what you do best: serving the customer. Find out more: https://utilassist.com/services/customerassist/ utila list Solutions. Simplified. 350 300 250 200 150 100 50 335.58 18 Ave,-ageCa 214 Sep 2023 261 Rolling 12 Months - City of Seward Nov 2023 1S3 253 Jan 2024 239 286 Mar 2024 292 Year -Month ▪ August 2024 ▪ 'Jay 2023 fa July 2023 288 May 2024 CMR August 12, 2024 Jut 2024 Year to Date Performance Chart Year E 2022 E 2023 2024 Year •2024 96 % 94 % 92 % 90 % B8 % B6 % Rd % B2 % January February Year -to -Date Performance March April 20 May June July August City Clerk Report- Obihiro Edition August 12, 2024 City Clerk Report- Obihiro Edition Page 2 The City of Seward Welcomes the .Sister City Delegation fr � gation om Obihiro, Japan , j,`tck /L 22 City Clerk Report- Obihiro Edition Page 3 23 MUNSON, CACCIOLA & SEVERIN, LLP ATTORNEYS AT LAW SUITE 402 1029 WEST THIRD AVENUE ANCHORAGE, ALASKA 99501 TELEPHONE: (907)272-8401 bcf@bcfaklaw.com August 7, 2024 Seward City Council City of Seward PO Box 167 Seward, AK 99664 Re: July Status Report Dear City Council: This is our status report covering activity on legal matters worked on during July 2024. General Matters: We advised on several new public records requests. We advised on DOC's use of the city's fingerprint machine. We reviewed a proposed ordinance changing the hours of sale for alcohol and provided additional input regarding an ordinance relating to marijuana establishment licensing. We continued to advise the museum regarding statutory requirements to obtain title to certain donated items. We advised on and provided drafting assistance with a waiver for Parks and Recreation. We assisted the Finance Department by submitting a claim for outstanding utility payments against a former customer's estate. We submitted an audit report to the City's auditing firm. We advised the clerk's office on a handful of unique procedural questions. Electric Utility: We continued work on the CEA rate case. Mr. George delivered closing arguments (both oral and written) and continues to monitor final briefing. We anticipate a decision on the case by the end of September. We have been acting as Seward's representative on the Railbelt Transmission Organization in order to fulfill obligations put upon the City under House Bill 307. Personnel: We advised on several ongoing personnel issues. The Alaska Occupational Safety & Health agency completed their exhaustive whistleblower retaliation investigation. This effort required considerable attorney and staff participation, but we are pleased to report that AKOSH has found the complaint to be without merit and dismissed it. 24 Status Report to Seward City Council August 7, 2024 Page 2 of 2 Planning: We continued to litigate the McDonald matter. A bench trial was held in Seward June 19, and on July 2, the court found in favor of the City in a written decision. We await a final judgment from the court, after which we will file a motion requesting the court order McDonald pay the City's attorney's fees. Port and Harbor: We continued negotiations with the owner of an abandoned vessel and moved litigation of the matter forward with some new deadlines set during a pre-trial conference. We advised on procedural aspects of sale of abandoned property. 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. You can expect to receive our next status report by September 4. Very truly yours, MUNSON, CACCIOLA & SEVERIN LLP Samuel C. Severin 25 City of Seward, Alaska City Council Meeting Minutes July 22, 2024 Volume 42, Page CALL TO ORDER The July 22, 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 Kat Sorensen, City Manager Kris Peck, City Clerk Jodi Kurtz, Deputy City Clerk Excused — None Absent — None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Derek Ables, outside city limits, said he had traveled from Kenai. He spoke in support of Resolution 2024-040 to establish direct air service from Kenai to Seattle. Russ White, outside city limits, provided an update on the Sports & Recreation Department including: AVTEC gym schedule, strength training, kids ballet, soccer league, and summer camp activities. Lastly, White announced there would be a Senior Adventure Social which would feature eight senior citizens doing pack rafting and hiking APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Osenga/Wells) Approval of Agenda and Consent Agenda Motion Passed Unanimous 26 City of Seward, Alaska City Council Meeting Minutes July 22, 2024 Volume 42, Page The clerk read the following approved consent agenda items: Approval of the July 8, 2024, City Council Meeting Minutes Introduction of Ordinance 2024-011: Amending Seward City Code 8.05.045 Hours of Sale for Alcoholic Beverages Introduction of Ordinance 2024-012: Amending Seward City Code Title 3 Personnel Anniversary Date Definition Resolution 2024-040: Signing onto Joint Resolution 2024-001 of the Assembly of the Kenai Peninsula Borough to Support the City of Kenai in their Endeavor to Get Direct Flight Service to Seattle No grounds for protest for the Hotel & Motel Endorsement of the liquor license for the Fifth Avenue Bistro & Bar SPECIAL ORDERS, PRESENTATIONS, AND REPORTS City Manager Report City Manager Kat Sorensen thanked Parks & Recreation for the fun Camp Stove Cookoff competition. She provided an update on the U.S. Coast Guard Fast Response Cutter which would be coming to Seward. Sorensen addressed the power outages that occurred last Thursday and said they were caused by a technical issue at the Fort Raymond substation. She thanked the electric crew for their response and said the issues had been resolved. McClure said she received phone calls asking about the possibility of generators being used during power outages. Sorensen answered that turning on the generators was very expensive and were only used for certain types of emergency situations. Calhoon hoped to see updated Providence Financials report provided to council. He also hoped to see an update on the Developer Reimbursement Program (DRP) in terms of how much money had been paid out and come back. Calhoon noticed the harbor "G, K, & L Floats" budget item still had money sitting in it and he wondered if that money would be going back to the harbor fund. Calhoon was also interested to see a financial report regarding the electric infrastructure update. City Clerk Report City Clerk Kris Peck provided an update on the two council vacancies and the filing period to be a candidate for council. Peck also mentioned the display table in council chambers which featured the exchange of awards between Seward and Obihiro, Japan. 27 City of Seward, Alaska City Council Meeting Minutes July 22, 2024 Volume 42, Page Presentations Alaska Small Business Development Center Annual Report was given by Cliff Cochran (Microsoft Teams video call) Seward Small Business Advisor KellyAnn Cavaretta was in attendance. PUBLIC HEARINGS Ordinances for Enactment Ordinance 2024-010: Amending Seward City Code Title 3 Personnel Motion (Osenga/Calhoon) Enact Ordinance 2024-010 Sorensen said the ordinance would allow a temporary employee to work more than nine months in a calendar year. This change would allow a short break in service without having to wait three months to resume temporary employment. There was also a caveat to ensure that this ordinance would not replace a full-time permanent position if it was available. Peck noted that a typo had been discovered in the first Whereas of the ordinance and the word "consecutive" should not be there. He read aloud the corrected version: to allow temporary and seasonal employees to work more than nine consecutive months in a calendar year. 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. McClure said this ordinance was a good idea. Motion Passed UNFINISHED BUSINESS Resolutions Unanimous Resolution 2024-010: Approving the City Manager to Enter into a Contract with Tyler Technologies to Provide Computer Aided Dispatch (CAD) and Report Management Software (RMS) to the City of Seward for an Initial Cost of $101,360 and an Annual Recurring Cost of $73,856 and Appropriating Funds (This resolution was postponed on February 12, 2024) Motion (already on the floor) Approve Resolution 2024-010 Sorensen recommended council fail this resolution and give permission to bring back a new resolution for Computer Aided Dispatch at a meeting date as soon as possible. 28 City of Seward, Alaska City Council Meeting Minutes July 22, 2024 Volume 42, Page Motion Failed Unanimous Sorensen said the new resolution would be geared towards working with the Kenai Peninsula Borough. Council directed administration to bring back similar legislation as soon as possible. NEW BUSINESS Other New Business Appoint an applicant to the Planning & Zoning Commission with a term set to expire in February 2026. There are two applicants for the vacancy: John Wisel and Clare Sullivan Calhoon declared a potential conflict of interest because he was the spouse of Clare Sullivan. McClure ruled that a conflict did exist, and Calhoon was excused from the discussion & voting process. The results of the paper vote sheets: John Wisel: 0 votes Clare Sullivan: 6 votes Re -advertise the vacancy: 0 votes Clare Sullivan was appointed to the Planning and Zoning Commission with a term set to expire in February 2026. Discuss ADA access for fishing [Sponsored by Council Member Finch] Finch described some of the accessibility issues he had noticed at various fishing locations around Seward and across the bay. He would also like to see the decommissioned railroad coal terminal be converted into a pier for fishing. McClure noted the access issues across the bay had been brought up before and still needed to be addressed. Finch said moving the big rocks at Spring Creek would be a good start. Sorensen said they would look into it further and possibly schedule a work session on the topic. Discuss ADA access at City Hall [Sponsored by Vice Mayor Osenga] Osenga said his main concern was the gravel parking area near the ADA ramp at the top of the parking lot. He was hoping the city could improve the area Sorensen said they had received an initial quote to pave the ADA parking area and it would be about $12,000. Sorensen said the dollar amount was under the spending threshold, but a directive from council was always welcome. 29 City of Seward, Alaska City Council Meeting Minutes July 22, 2024 Volume 42, Page Council directed administration to proceed with paving the ADA parking area above the ramp. INFORMATIONAL ITEMS AND REPORTS Other Items Upcoming City Council Meetings August 12, 2024, City Council Regular Meeting at 7:00 p.m. CITIZEN COMMENTS Mike Little, inside city limits, spoke to the lack of access to fishing for people with disabilities. He recalled his experiences trying to navigate around rocks and other obstacles to access shore fishing opportunities. He appreciated what Council Member Finch was trying to accomplish. Deon Quitberg, inside city limits, wanted to build a cabin on their property in Forest Acres. She asked council what options she had to expediate the building situation. Kevin Quitberg, inside city limits, spoke to his experience of attempting to build a cabin on their lot in Forest Acres. The main issue was the lack of connection to city water and he was not allowed to dig a well. The Kenai Peninsula Borough had recently informed him that his property value had been lowered to near worthless because it had been listed as undevelopable. Quitberg felt strongly that he should be able to drill a well on his property. He was told that the lots were deed restricted and must be connected to city water. Camping for construction purposes was not allowed and he received an eviction notice. There was no legal, moral, or ethical reason why the city would not approve his building permit. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Barnwell congratulated Clare Sullivan on being re -appointed to Planning & Zoning Commission. He encouraged the public to get involved with the Comprehensive Plan. Barnwell was impressed with KellyAnn Cavaretta's efforts in the Small Business Development Center. Crites echoed previous comments about Sullivan and Cavaretta. She was interested in the proposed flight services from Kenai to Seattle. Wells thanked Clare Sullivan for stepping up to join the P&Z. Wells thanked Crites for delving into the Computer Aided Dispatch resolution and possibly saving the city a lot of money. Finch hoped the direct flights from Kenai to Seattle would pan out. Calhoon said there would be upcoming work session and discussion items regarding the septic systems and wells inside city limits Calhoon said the direct flights from Kenai to Seattle was 30 City of Seward, Alaska City Council Meeting Minutes July 22, 2024 Volume 42, Page promising. He congratulated Clare Sullivan on her appointment to P&Z. Lastly, Calhoon was excited about having more discussion items similar to the ADA fishing discussion. Osenga echoed previous comments about Sullivan and Cavaretta. Osenga shared a story about how his friends' motorhome had a mechanical breakdown near Moose Pass and the residents there were very kind. He thanked the Moose Pass residents for their hospitality. McClure echoed previous comments about Sullivan and Cavaretta. McClure also thanked Russ White from Parks & Recreation for the update on all the events. McClure noted the next council meeting on August 12, 2024 would be midway through the filing period for new candidates. ADJOURNMENT The meeting was adjourned at 8:03 p.m. Kris Peck Sue McClure City Clerk Mayor (City Seal) 31 AGENDA STATEMENT Meeting Date: August 12, 2024 From: Kris Peck, City Clerk Agenda Item: Port and Commerce Advisory Board (PACAB) Vacancies BACKGROUND There are two vacancies on PACAB with 3-year terms set to expire July 2027. APPLICANTS The clerk's office has received two applicants: Elizabeth "Becky" Dunn Jesse Groom The applications are included in the packet along with this memo. VOTING & APPOINTING Article 3. - Port and Commerce Advisory Board 2.30.310 - Established. Composition. The Port and Commerce Advisory Board is hereby created, consisting of seven residents of the City of Seward and/or surrounding areas, and who shall be appointed by the council. If there is more than one applicant for the position, the council shall appoint by ballot voting. Applicants must receive at least four votes in order to be appointed. No officer or employee of the city may be appointed a member of the board. 32 PACAB [PORT AND COMMERCE ADVISORY BOARD] NOTICE OF VACANCY The City Council is seeking applications from citizens of Seward and the surrounding area interested in serving on the Port and Commerce Advisory Board (PACAB). There are two seats with terms expiring in July 2024. These two seats will become available with a 3-year term set to expire in July 2027 PACAB meets on the first and third Wednesday of each month, usually during the timeframe of 12:00 to 2:00 p.m. Please note that PACAB goes on a summer hiatus in the months of June, July, and August. Application forms for each board/commission are available in the office of the city clerk and on the city website at www.cityofseward.us. Completed application forms must be filed with the city clerk. Please call the city clerk's office at 907-224-4046 if you have questions or need more information. POSTED: Wednesday, July 17, 2024 City Hall Bulletin Board U.S. Post Office Harbormaster's Office Seward Community Library Museum 33 PORT AND COMMERCE ADVISORY BOARD (PACAB) APPLICATION NAME: Elizabeth (Becky) Dunn STREET ADDRESS: MAILINGADDRESS: P.O•Box 1823 Seward, AK 99664 HOME TELEPHONE: BUSINESS PHONE: EMAIL: LENGTH OF RESIDENCY IN THE SEWARD AREA: 47+years PRESENTLY EMPLOYED AS: business owner List any special training, education or background you have which may help you as a member of the Board: PACAB, SERVES, Comercial fishing, repairing and building commercial fishing gear. Owner and operator of marine retail store. Have you ever been involved in port operations? If so, briefly describe your involvement: Woked for State marine highway port operations. I am specifically interested in serving on the Port and Commerce Advisory Board because: ! want to help and feel this is the best fit. Have you ever served on a similar board elsewhere? E✓ Yes ❑ No If yes, where? seward PACAP When? this year Are you available for meetings at noon (first Wednesday if each month)? 0 Yes No Hiatus in June, July, and August (does not meet in these months) Are you available for work sessions at noon (third Wednesday of each month)? 0 Yes ❑ N❑ Hiatus in June, July, and August (does not meet in these months) 1111111111111111111 7-22-2024 DATE 34 Form Revised 7/16/2024 RECEIVED JUL 29 2024 OFFICE OF THE CITY CLERK PORT AND COMMERCE ADVISORY BOARD (PACAB) APPLICATION NAME: —j-Cs5 C''"� rat)%n". STREET ADDRESS: MAILING ADDRESS: HOME TELEPHONE: EMAIL: LENGTH OF RESIDENCY THE SEWAAREA: 143 yr.f-3 BUSINESS PHONE: PRESENTLY EMPLOYED AS: LeM5 S G�pY-e List any special training, education or background you have which may help you as a member of the Board: 1 L'e pe s_c0 (i-1 _TLA.v�. tin . 60 4ir 11 YrQ/3 i...J•€It a5 V c-e ptcsickeikk- 64 '''Cksi L,c4,55ko.re Dauis,<©`4 'lamp(` §1-4-1--,goo. mat se Aut5k" e teC-c ec�" -�'7 v�Jo4ti 4 ILLJ'. e.)vet -;v ,C'ce y {JJevie iA J V"`t,t � s 4- 5t( C . Have you ever`been involved in.port operations. If so, briefly describe(� your involvement: k�..J e_ &or% 44-)010e6(1 i v` e, dpe�cc� e e� l®aD�lz.5 I.�+�Cr vx;h j S ; �s !t os`�i45) o�r� rtlke 4,5 I am specifically interested in serving on the Port and Commerce dvisory B and because: -- w -4t specifically l i (4-P 4-0 -4-he p ®-f-1- erk _Cc "A tAnr -y grow, Have you ever served on a similar board elsewhere? ❑ Yes No If yes, where? When? Are you available for meetings at noon (first Wednesday of each month)? Yes ❑ No Hiatus in June, July, and August (does not meet in these months) Are you available for work sessions at noon (third Wednesday of each month)? ,Yes El No Hiatus in June, July, and August (does not meet in these months) DA Elz_41 Form Revised 3/26/2024 35 AGENDA STATEMENT Meeting Date: August 12, 2024 From: Jodi Kurtz, Deputy City Clerk Agenda Item: Renewal of Liquor License for the Alaska Seafood Grill BACKGROUND & JUSTIFICATION: The Seward City Council has the opportunity to object the Renewal of liquor license for the following business: Business: Alaska Seafood Grill Licensee: Seward Lodging III, LLC Type: Beverage Dispensary License License: 3021 The City of Seward Police Department, Fire Department, and Finance Department have completed their compliance checks and have found no issues. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above renewal of Liquor License, then under Alaska Statutes 4.11.480 the City of Seward will be required to assist in, or undertake the defense of, its protest. RECOMMENDATION: No grounds for protest to the renewal of liquor license for the Alaska Seafood Grill 36 Date: To: From: MEMORANDUM July 18, 2024 John Rymer Finance/Utilities Naneth Ambrosiani Finance/Leases Chief Alan Nickell Police Department Chief Clinton Crites Fire Department Jodi Kurtz, Deputy City Clerk RE: Verifying compliance for the RENEWAL of a liquor license RECEIVED AUG 5 2024 OFFICE OF THE CITY CLERK The following business has applied for a liquor license renewal. Name of Business: Alaska Seafood Grill Licensee: Seward Lodging III, LLC. Type of License: Beverage Dispensary License License Number: 3021 Department Status Initials Date 7 / Vol9 (o? �� g Finance/Utilities Co"( " , ,4 ,,r 7-- COM 1 �a C7----- NC1✓1(�' I Finance/Leases Police t,,,P1i6.4 AcqJ 7 231 Y 0 Fire Cci.,,,,/,„It 12CG % ^6 7 /1-CO'Y o t Deadline for protest: Monday, September 16, 2024 (60 days from receipt of notification) Last regular council meeting for approval: Monday, September 9, 2024 PLEASE RETURN TO CITY CLERK no later than noon on Tuesday, September 3, 2024 /01W) 37 AGENDA STATEMENT Meeting Date: August 12, 2024 From: Jodi Kurtz, Deputy City Clerk Agenda Item: Renewal of Liquor License for Gateway Liquor & Food Mart BACKGROUND & JUSTIFICATION: The Seward City Council has the opportunity to object the Renewal of liquor license for the following business: Business: Gateway Liquor & Food Mart Licensee: Harbor Gateway Inc. Type: Package Store License: 2683 The City of Seward Police Department, Fire Department, Finance Department have completed their compliance checks and have found no issues. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above renewal of Liquor License, then under Alaska Statutes 4.11.480 the City of Seward will be required to assist in, or undertake the defense of, its protest. RECOMMENDATION: No grounds for protest to the renewal of liquor license for Gateway Liquor & Food Mart 38 Date: July 22, 2024 To: MEMORANDUM John Rymer Finance/Utilities Naneth Ambrosiani Finance/Leases Chief Alan Nickell Police Department Chief Clinton Crites Fire Department From: Jodi Kurtz, Deputy City Clerk RE: Verifying compliance for the RENEWAL of a liquor license RECEIVED AUG 5 2024 OFFICE OF THE CITY CLERK The following business has applied for a liquor license renewal. Name of Business: Gateway Liquor & Food Mart Licensee: Harbor Gateway Inc. Type of License: Package Store License Number: 2683 Department Status ate Finance/Utilities �„ P �, ,,, r ^Initials — 7 a ja j 1 y Finance/Leases ( Orr ' ICE rrt Al ne,fh foibrosiqw /0/gy ?/.2301 O I IC Police ( P I; H.} ADA) Fire eo344r/i4#171- /?CG F.I: / 1 V / y floe O pm at Via, Deadline for protest: Wednesday, September 20, 2024 (60 days from receipt of notification) Last regular council meeting for approval: Monday, September 9, 2024 PLEASE RETURN TO CITY CLERK no later than noon on Tuesday, September 3, 2024 39 AGENDA STATEMENT Meeting Date: August 12, 2024 From: Jodi Kurtz, Deputy City Clerk Agenda Item: Renewal of Liquor License for The Seward Alehouse BACKGROUND & JUSTIFICATION: The Seward City Council has the opportunity to object the Renewal of liquor license for the following business: Business: The Seward Alehouse Licensee: Seward Alehouse LLC Type: Beverage Dispensary License License: 324 The City of Seward Police Department, Fire Department, Finance Department and the Kenai Peninsula Borough have completed their compliance checks and have found no issues. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above renewal of Liquor License, then under Alaska Statutes 4.11.480 the City of Seward will be required to assist in, or undertake the defense of, its protest. RECOMMENDATION: No grounds for protest to the renewal of liquor license for The Seward Alehouse , #324, Beverage Dispensary License. 40 Date: July 12, 2024 To: MEMORANDUM John Rymer Finance/Utilities Naneth Ambrosiani Finance/Leases Chief Alan Nickell Police Department Chief Clinton Crites Fire Department From: Jodi Kurtz, Deputy City Clerk RE: Verifying compliance for the RENEWAL of a liquor license RECEIVED JUL 17 2024 OFFICE OF THE CITY CLERK The following business has applied for a liquor license renewal. Name of Business: The Seward Alehouse Licensee: Seward Alehouse, Inc. Type of License: Beverage Dispensary License License Number: 324 Department Status Initials Date Finance/Utilities C i, ,.,.. D C i 4 ri f (� 7 01 j y Finance/Leases 0 aI-�_7Iorwl -I- � to k + Itwi n 09 t/ 2 1I/ Police `- W o' _I ,i. AOJJ 7 % IS/)'{ Fire A l.,,0114h4" Fr , , 2 e -7113-1;9 /toe 5- Deadline for protest: Monday, September 9, 2024 (60 days from receipt of notification) Last regular council meeting for approval: Monday, September 9, 2024 PLEASE RETURN TO CITY CLERK no later than noon on Tuesday, September 3, 2024 IP 13ot bps 40J 41 KENAI PENINSULA Borough Office of the Borough Clerk 144 North Binkley Street, Soldotna, AK 99669 I (P) 907-714-2160 I (F) 907-714-2388 I www.kpb.us Friday, July 19, 2024 Sent via email: clerk@cityofseward.net Kris Peck, City Clerk City of Seward RE: Non -Objection of Application Licensee/Applicant : Seward Alehouse, Inc. Business Name Seward Alehouse, The License Type : Beverage Dispensary License Location : 215 Fourth Avenue, Seward, AK 99664, City of Seward License No. : 324 Application Type : License Renewal Dear Mr. Peck, This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection. Should you have any questions, or need additional information, please do not hesitate to let us know. WA - Michele Turner, CMC Borough Clerk cc: lizdemoss26@yahoo.com; mailto:amco.localgovernmentonly@alaska.gov 42 Ordinance 2024-011 ORDINANCE 2024-011 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE 8.05.045 HOURS OF SALE FOR ALCOHOLIC BEVERAGES Documents: • Agenda Statement • Ordinance 2024-011 • Attachments: o Ordinance request from July 8, 2024, meeting 43 Ordinance 2024-011 City Council Agenda Statement Meeting Date: July 22, 2024 To: City Council Through: Kat Sorensen, City Manager From: Council Member Calhoon Subject: Ordinance 2024-011: Amending Seward City Code 8.05.045 Hours Of Sale For Alcoholic Beverages Background and justification: Council Member Calhoon proposed an ordinance to amend the hours of sale for alcoholic beverages to start at 8:00 AM instead of 10:00 AM. City Council directed administration to proceed with drafting and preparing the ordinance to be brought back for introduction. This ordinance would allow for businesses to sell alcohol during televised sporting events such as football games which begin earlier in Alaska. It would allow establishments to cater to visitors who have arrived early in Seward and are looking for a place to relax. The earlier start time would also permit customers to purchase alcohol from package stores for camping and fishing trips that depart early in the morning. Lastly, there is a portion of the population that works overnight shifts and get off work in the morning hours. The City Council can allow licensed alcohol establishments to start serving at 8:00 a.m. based on the Alaska Statutory reference AS 04.16.010. 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: Creates a savings in the amount of: Has no fiscal impact x Funds are (✓): $ $ $ 44 Ordinance 2024-011 x Budgeted Line item(s): Not budgeted Not applicable Fund Balance Information Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance SMIC Parking Other Electric Water $ Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: x Yes Attorney Signature: /Alex Foote Not applicable Comments: Administration Recommendation Enact Ordinance Other: N/A 45 Ordinance 2024-011 Sponsored by: Council Member Calhoon Introduction Date: July 22, 2024 Public Hearing Date: August 12, 2024 Enactment Date: TBD CITY OF SEWARD, ALASKA ORDINANCE 2024-011 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE 8.05.045 HOURS OF SALE FOR ALCOHOLIC BEVERAGES WHEREAS, currently establishments are prohibited from selling alcohol from 2:00 a.m. to 10:00 a.m.; and WHEREAS, amending the start time to 8:00 a.m. would allow establishments to be open for televised sporting events that take place in the morning such as football games; and WHEREAS, the earlier start time would allow establishments to cater to visitors looking for a place to relax early in the day; and WHEREAS, the earlier start time would allow customers to purchase alcohol from package stores to be consumed later, on camping and fishing trips; and WHEREAS, a portion of the population works overnight shifts and get off work in the morning hours; and WHEREAS, council approved of the drafting and preparation of this ordinance at the July 8, 2024, meeting; and WHEREAS, the council has the ability to allow licensed alcohol establishments to start serving at 8:00 a.m. based on the Alaska Statutory reference AS 04.16.010. NOW, THEREFORE, THE CITY OF SEWARD ORDAINS, that: Section 1. Seward City Code Title 8 is hereby amended to read as follows (new language is in bolded italics and underlined and deleted language is stricken): 8.05.045 Hours when sale, etc., prohibited. Hours of Sale for Alcoholic Beverages No licensee or employee of a liquor establishment shall sell, furnish, give, or deliver any intoxicating liquor alcoholic beverages between the hours of 2:00 a.m. and ' 0:zv-vv iz. 8:00 a.m. of any day. (Ord. 294, 1960; Ord. 619, 1989) Section 2. This ordinance shall take effect ten (10) days upon enactment. 46 Ordinance 2024-011 CITY OF SEWARD, ALASKA ORDINANCE 2024-011 Page 2 of 2 ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA this 12th day of August 2024. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 47 Ordinance 2024-011 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. 48 Ordinance 2024-012 ORDINANCE 2024-012 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE TITLE 3 PERSONNEL ANNIVERSARY DATE DEFINITION Documents: • Agenda Statement • Ordinance 2024-012 • Attachments: None 49 Ordinance 2024-012 City Council Agenda Statement Meeting Date: July 22, 2024 To: City Council Through: Kat Sorensen, City Manager From: Tammy Nickell, HR Manager Subject: Ordinance 2024-012: Amending Seward City Code Title 3 Personnel Anniversary Date Definition Background and justification: Title 3 contains the City's personnel code. In Title 3 § 3.01.035 - Definitions, "Anniversary date" is defined as "the date that an employee assumes regular status after the successful completion of a probationary period. This date does not change regardless of other personnel transactions, promotions, demotions or transfers that may occur during the course of an employee's service with the city, except for periods of leave without pay as outlined in § 3.45.080." Because the date does not change, when employees are promoted, demoted, or transferred to another department, their anniversary date does not necessarily align with the benchmarks of their current position. This can impact the timing of their evaluations and opportunities for pay raises. Amending the definition of anniversary date will give the employee the opportunity to be evaluated accordingly at the six-month mark of their current position, after their probationary period. Chapter 3.25 Selection Amended code section Section Title Ordinance Page # Amendment 3.01.35 Definitions Amending the language to allow for a full- time regular employee's anniversary date to change should the employee be placed on probation again due to a promotion, demotion, or transfer. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: 50 Ordinance 2024-012 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 Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance Yes SMIC Parking Other $ 0 Electric Water Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Attorney Signature: /Alex Foote Not applicable Comments: Administration Recommendation Enact Ordinance Other: 51 Ordinance 2024-012 Sponsored by: HR Manager Tammy Nickell Introduction Date: July 22, 2024 Public Hearing Date: August 12, 2024 Enactment Date: TBD CITY OF SEWARD, ALASKA ORDINANCE 2024-012 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING TITLE 3 PERSONNEL ANNIVERSARY DATE DEFINITION WHEREAS, the anniversary date, as set forth in City Code, is the date that an employee assumes regular status after the successful completion of a probationary period and does not change regardless or transfer, promotion, or other changes in the employee's position; and WHEREAS, the anniversary date is used as the determinant for the timing of evaluations, raises, and promotions; and WHEREAS, depending on the time of year that an employee is promoted or joins a new department, an employee may be required to wait longer than 12 months before their next evaluation or raise; and WHEREAS, the anniversary date should reflect the employee's status in their current position to allow them equal access to evaluations and raises according to their performance in their new position. NOW, THEREFORE, THE CITY OF SEWARD ORDAINS, that: Section 1. Seward City Code Title X is hereby amended to read as follows (new language is in bolded italics and underlined and deleted language is stricken): 3.01.035 Definitions. As used in this chapter: A. Anniversary date is the date that an employee assumes regular status after the successful completion of a probationary period. This date does not will change regardless in the event of other personnel transactions such as promotions, demotions, or transfers that may occur during the course of an employee's service with the city, except for periods of leave without pay as outlined in § 3.45.080. Section 2. This ordinance shall take effect 10 days upon enactment. Section 3. This ordinance supersedes all policies not previously approved by the city council. 52 Ordinance 2024-012 CITY OF SEWARD, ALASKA ORDINANCE 2024-012 Page 2 of 2 ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA this 12th day of August 2024. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 53 Resolution 2024-041 RESOLUTION 2024-041 A RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO NEGOTIATE A LAND SWAP FOR A PORTION OF CITY PROPERTY LOCATED AT 1000 HEMLOCK AVENUE IN EXCHANGE FOR A PORTION OF PRIVATE PROPERTY LOCATED AT 2405 SEWARD HIGHWAY Documents: • Agenda Statement • Resolution 2024-041 • Attachments: o Planning and Zoning Memo with Property Map and Zoning Map o Draft Site Plan Including Utilities o Seward Storage Draft Building Elevation 54 Resolution 2024-041 City Council Agenda Statement Meeting Date: August 12, 2024 To: City Council From: Kat Sorensen, City Manager Subject: Resolution 2024-041: Authorizing the City Manager to Negotiate a Land Swap for a Portion of City Property at 1000 Hemlock Avenue in Exchange for a Portion of Private Property at 2405 Seward Highway Background and justification: The Public Works Director has approached the owner of a parcel located at 2405 Seward Highway — known as the "Gillespie Property" — to see if there was interest in a land swap. The land is adjacent to the city property at 1000 Hemlock Avenue and the city property at 2500 Laurel Street known as the "Snow Dump." The city would like to swap approximately one acre of land at 1000 Hemlock Avenue with approximately one acre of the property owner's parcel to expand the city's Snow Dump. The swap is beneficial to both parties because it would give the property owner access to Hemlock Avenue, as well as expand and enhance useability of the Snow Dump. The current owner of the property is interested in swapping land for this purpose. This land swap also encourages important community development, as the property owner has plans to develop the site. Their plans include bringing utilities to the site to build multi -family housing and a storage facility. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.2.1 Strategic Plan: Other: 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 X Funds are (✓): Budgeted Line item(s): Not budgeted Not applicable X 55 Resolution 2024-041 Fund Balance Information M Affected Fund (✓): General Boat Harbor Motor Pool Available Fund Balance X Yes SMIC Parking Other Electric Water $ Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Attorney Signature: s/Alex Foote Not applicable Comments: Administration Recommendation X Adopt Resolution Other: 56 Resolution 2024-041 Sponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2024-041 A RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO NEGOTIATE A LAND SWAP FOR A PORTION OF CITY PROPERTY LOCATED AT 1000 HEMLOCK AVENUE IN EXCHANGE FOR A PORTION OF PRIVATE PROPERTY LOCATED AT 2405 SEWARD HIGHWAY WHEREAS, the city owns property at 2500 Laurel Street and 1000 Hemlock Avenue (collectively known as the "Snow Dump") which is used for storing equipment, materials, and snow piles; and WHEREAS, the Public Works Director has been looking for an opportunity to negotiate a land swap to expand the Snow Dump area and enhance its usability; and WHEREAS, the owner of the adjacent property located at 2405 Seward Highway is willing to negotiate a land swap; and WHEREAS, the swap will be beneficial to the property owner because the acquired portion of land will provide access to the owner's existing parcel via Hemlock Avenue; and WHEREAS, the swap will be beneficial to the city because the acquired portion of land will enhance the usability of the Snow Dump; and WHEREAS, the property owner has plans to develop the site that will benefit the community; and WHEREAS, the Planning and Zoning Commission has discussed this land swap and given their recommendations. 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 negotiate a land swap of approximately one acre of city property at 1000 Hemlock Avenue in exchange for approximately one acre of the adjacent parcel at 2405 Seward Highway. Section 2. This resolution shall take effect 30 days after adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 12th day of August, 2024. 57 Resolution 2024-041 CITY OF SEWARD, ALASKA RESOLUTION 2024-041 AYES: NOES: AB SENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 58 Resolution 2024-041 Planning & Zoning Commission Memorandum Meeting Date: July 2, 2024 To: Planning and Zoning Commission Through: Daniel Meuninck, Community Development Director From: Courtney Bringhurst, Planner Subject: Discuss a land swap between the property located at 2405 Seward Highway and city owned property at 1000 Hemlock Ave Background and justification: City administration will be bringing a Resolution to City Council for approval to enter into negotiations with the property owners of 2405 Seward Highway to trade the southwest corner of their property with the southeast corner of the city property located at 1000 Hemlock Ave. The approximate size of land to be traded is 1 acre. The southeast corner of the city property located at 1000 Hemlock Ave does not provide a functional use to the city now or in the future. However, it is extremely useful to the property owners of 2405 Seward Highway as it provides them with direct access to Hemlock Ave versus being limited to the Seward Highway. The orientation of the land to their property makes it more usable for the uses they have planned for the property. The city also benefits from this land trade as it provides the city with additional land for the snow dump. The three parcels being altered with this land swap are all zoned differently. 2405 Seward Highway is zoned auto commercial. 1000 Hemlock Ave is zoned Institutional. 2500 Laurel Street is zoned resource management. The southeast corner of 1000 Hemlock Ave will need to be rezoned to auto commercial after the land swap has been approved and platted, and the southwest corner of 2405 Seward Highway will need to be rezoned to resource management. The remaining portion of 1000 Hemlock Ave could remain Institutional or be rezoned to resource management. Staff is presenting this memorandum to the Planning and Zoning Commission to gather their feedback on the future zoning designation for the west side of the property located at 1000 Hemlock Ave as well as any feedback regarding the land swap. 59 39 Resolution 2024-041 Context Map ores t Acres 200 feet Campground 255.10 ft Land Swap Memorandum Property Map Proposed land swap between the property located at 2405 Seward Highway and city owned property at 1000 Hemlock Ave Green triangles indicate the proposed sections of land to be swapped 60 40 Context Map 405 Seward Hemlock Aye Forest K Campground 200 feet Land Swap Memorandum Zoning Map Highway Resolution 2024-041 Rural Residential Multi -family Residential Auto Commercial Industrial Institutional Park Resource Management Discuss the zoning for each of the sections of land that will be affected from the land swap between the property located at 2405 Seward Highway and city owned property at 1000 Hemlock Ave Yellow lines indicate the proposed sections of land to be swapped 61 41 Resolution 2024-041 -"'W SEER �� AND relliEW ---'���WATER EXISTINGill UTILITIES SEWER AND WATER PROPOSED EASEMENT It - SEWER AND/ WATER / PROPOSEDl SEWARD GATEWAY STORAGE ROUTE 0111r10 +L� EXISTING �1 ELECTRICAL onaagwF.. a os,ro.vv. . BOAT • RV • AUTO FOREST ACRES SUBDIVISION 2405 SEWARD HIGHWAY ANCHORAGE, AK09664 unel Utilities Legend µ®°um�"' DRAWING TITLE Electrical Power i fliExisfig aM Proposetl UIilXies Water ....,`.„1, Sewer 1 1 • J 62 Resolution 2024-041 SEWARD GATEWAY STORAGE BOAT • RV • AUTO FOREST ACRES SUBDIVISION HIGHWAY MOS HIGHWAY ANCNCHORORAGE,AKWA 1 i I ME Mil 1 . 1 l 1 ! _ IMIM _ _ 1 1 _ ■... ■■■■ ■■■■ .... ■... _ ` ■■■■ ■I■■ _ _ ■■■■ n u_wam GATEWAY STORA08.¢arnu6 ■■■■ ■.■■ ■■■■ r • .■.■ Seward Gateway Residences 63 Resolution 2024-042 RESOLUTION 2024-042 A RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO UPGRADE THE EXTERIOR DOORS ON MAIN ENTRANCE OF THE SEWARD COMMUNITY LIBRARY & MUSEUM WITH ADA-COMPLIANT SLIDING DOORS, USING A COMBINATION OF DONATED AND APPROPRIATING FUNDS Documents: • Agenda Statement • Resolution 2024-042 • Attachments: o Bid from Replacement Glass o Bid from Northmen Glass o Library Donation Report as of 7-31-2024 o Library donations directed o Photo of Existing Door 64 Resolution 2024-042 City Council Agenda Statement Meeting Date: August 12, 2024 To: City Council Through: Kat Sorensen, City Manager From: Sue Drover, Director Seward Community Library & Museum Subject: Resolution 2024-042 Authorizing the City Manager to Upgrade the Exterior Doors on Main Entrance of the Seward Community Library & Museum With ADA-Compliant Sliding Doors, Using a Combination of Donated and Appropriating Funds Background and justification: The current style of ADA-compliant doors on the Seward Community Library & Museum are swing -out style. This style of door is not well -suited for the main entrance of the building, particularly for the inherent weather conditions in Seward. When opening, the swing -out door is easily caught by the wind and remains open, reducing the energy efficiency of the building and creating an obstacle on the sidewalk. The button used to open the door is on the hinge -side, and patrons must maneuver around the opening door to enter the building. This is particularly problematic for patrons with mobility issues. There is also a steel divider between the two swing -out doors that reduces the width of the opening. Replacing the existing doors with ADA-compliant sliding doors would alleviate safety issues and improve energy efficiency. Quotes were obtained for the purchase and installation of an ADA-compliant, exterior, sliding doors. Replacement Glass in Anchorage, AK was chosen as the best option for a total cost of $32,947.08. Funds donated to the library, in the amount of $29,259.49, including a single donation of $25,000 earmarked for the Library & Museum, will be used. The remaining balance of $3,687.59 will come from the Library & Museum department operating budget — maintenance and repair expense account. rehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 1.3.4 Public Facilities and Services Goal: Continue to improve the quality of public facilities and services made available to the residents of Seward. 3.7.1 Support efforts to continuously improve the quality of educational facilities and services. Strategic Plan: Other: Code:2.25.135 F. Manage, operate and maintain the city's library museum facilities and programs, including materials and collections Certification of Funds 65 Resolution 2024-042 Total amount of funds listed in this legislation: $ 32,947.08 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 (✓): X Budgeted Line item(s): 01000-0000-2323 $ 29,259.49 and 01000-1500-7216 $3,687.59 Not budgeted Not applicable Affected Fund (✓): General Boat Harbor Motor Pool X Available Fund Balance SMIC Parking Other Electric Water Wastewater Healthcare Note: amounts are unaudited $ 10,356,586.55 Finance Director Signature: 5 a Yes Attorney Signature: Not applicable Comments: Administration Recommendation Adopt Resolution Other: 66 Resolution 2024-042 Sponsored by: Drover CITY OF SEWARD, ALASKA RESOLUTION 2024-042 A RESOLUTION OF THE CITY COUNCIL, OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO UPGRADE THE EXTERIOR DOORS ON MAIN ENTRANCE OF THE SEWARD COMMUNITY LIBRARY & MUSEUM WITH ADA-COMPLIANT SLIDING DOORS, USING A COMBINATION OF DONATED AND APPROPRIATING FUNDS WHEREAS, the current exterior doors on the main entrance of the Seward Community Library & Museum are swing -out style doors and not well -suited for Seward weather and the surrounding conditions; and WHEREAS, this style door is easily caught by the wind and remains open, reducing energy efficiency and creating an obstacle for patrons entering the building, particularly for those with mobility issues; and WHEREAS, the button to open the door is on the hinge -side, and patrons must maneuver around the opening door to enter the building; and WHEREAS, the doors have a steel divider that reduces the width of the opening; and WHEREAS, replacing the existing swing -out style doors with ADA-compliant, sliding doors will alleviate safety issues and improve energy efficiency; and WHEREAS, quotes were obtained for the purchase and installation of automatic, sliding exterior doors, and Replacement Glass of Anchorage, AK was found to be best contractor to perform the work at a cost of $32,947.08; and WHEREAS, funds donated to the Library & Museum, in the amount of $29,259.49, will be used; the remaining balance of $3,687.59 will come from the Library & Museum department operating budget — maintenance and repair expense account. 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 upgrade the exterior doors of the main entrance of the Seward Community Library & Museum from swing -out style doors to ADA-compliant sliding doors to improve overall accessibility and safety for patrons and energy efficiency for the facility. Section 2. Funding in the amount of $29,259.49 is hereby appropriated in the account 01000-0000-2323 library donations. The rest of the necessary funds, $3,687.59 will be appropriated in the department operating budget on the maintenance and repair expense account 01000-1500-7216. 67 Resolution 2024-042 CITY OF SEWARD, ALASKA RESOLUTION 2024-042 Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 12t1 day of August, 2024. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Kris Peck City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 68 Resolution 2024-042 '' 2457 ARCTIC BLVD. ANCHORAGE, AK 99503 REPLACEMENT P. 907-279-8484 GLASSREPLACEMENTGLA55.COM P Seward Community Library & Museum 239 6th Ave Seward, AK 99664 Bus: 907-224-4082 Quote sl Q RGD0042573 Date 06110/2024 Cust. # SEWCSH Price Cat 1, CASH P o # sold By 07.FRANK W Inst'I By Qty I Part I Thickness I Description I List Price Total Requested quote to replace swing doors with sliding automatics — Note this is a site unseen quote and prices may change if site conditions vary from supplies sizes and project description 1 UM Field Verify Site conditions 1165.00 1165.00 1165.00 Exterior Sliding Door 1 NABCO 1175 Nabco 1175 Whisperslide 10' -> 16' Clr Anodized W/ 28592.08 28592.08 28592.08 fectronic locking and panics; — Includes demo/supply and installation * future tie in for card reader present card reader not included 1 TRAVEL TRAVEUTRIP CHARGE - 2 techs, hotel, per diem, 3190.00 3190.00 3190.00 travel time Excludes Patch and paint, Disposal included Once the automatics have been field verified pricing will be locked in, unless, as stated in the disclaimer below , that there is request of additional work, engineering requirement, accelerated schedule requests or permitting requirements, if in the event the site conditions differ from the verbally discussed size or there is unusual circumstances such as structural steel(in the storefront), pricing differences will be presented before moving forward with ordering. If at time Seward community library and museum decided not proceed, they would only be responsible for the site measure costing. SPECIAL INSTRUCTIONS Subtotal 32947.08 Labor 0.00 Replacement Glass is committed to your 100% satisfaction. Please nspect your item(s) and notify us at the time of pick-up/delivery if it does not fully meet your expectations. Custom Cut & special -order items are non-refundable All material is sold with the understanding that it will not TeX 0.00 be used in a "hazardous location' as defined by the Consumer Product Safety Comm ssion For customers on account payment is due 15 days from the date of this invoice. A service charge of 2% per month (24% per annum) will be added to past due accounts. Work Performed on Customer's Own Material Total 32947.08 I request that work be performed using my material. I understand that while every precaution will be taken Replacement Glass does not guarantee your material against damage or breakage, and charges for time spent may still apply Balance 32947.08 RECEIVED BY AQ 6110/24 9:13am by FRANK Updated 7/17/24 1:36pm by FRANK Resolution 2024-042 REPLACEMENT GLASS P 2457 ARCTIC BLVD. ANCHORAGE, AK 99503 P. 907-279-8484 REPLACEMENTGLASS.COM Seward Community Library & Museum 239 6th Ave Seward, AK 99664 Quote # Q RGD0042573 Date 06110/2024 Cust # SEWCSH Price Cat 1, CASH Po # sold By 07.FRANK W Insfl By Qty I Part I Thickness I Description I List 1 Price I Total This bid is valid for 60 days with order placement upon signed contract and installation scheduled upon receipt of materials. Then subject to re -pricing to reflect any material, shipping and/or labor increases. This bid is based on an assumed construction schedule that allows enough time to acquire materials and fabrication time under normal manufacturing and shipping. An accelerated schedule may incur additional costs and must be agreed to before changing manufacturing and shipping schedule. We make no guarantees and will not be held liable for manufacturing and shipping delays out of our control. Note: specified glass and or aluminum storefront may have a long lead time, suggest an expedited approval for order placement. All openings to be clean, square, plumb and ready to accept glass or framework. Openings not as stated will accrue an additional labor/material fee. Permits not included unless so stated in the above description. This bid based on supplied drawings and specifications only. Any work, labor or materials beyond above will only be done with a signed changed order. Final cleaning not included. Demo not included unless stated. Engineering is not included. If Waiver of Subrogation insurance is required it will be an added cost. Terms to be negotiated at time of acceptance for deposits and payment plans for contractor and customer protection. Replacement Glass honors all supplier warranties on parts we provide. Replacement Glass extends a 90-day workmanship warranty on installations for parts/material we provide and install Workmanship warranty includes on -site labor and excludes travel, airfare, per diem and lodging. SPECIAL INSTRUCTIONS Subtotal Labor Tax Total Balance 32947.08 0.00 0.00 32947.08 32947.08 Replacement Glass is committed to your 100% satisfaction. Please inspect your item(s) and notify us at the time of pick-up/delivery it it does not fully meet your expectations Custom cut 8 special -order items are non-refundable All material is sold with the understanding that it will not be used in a "hazardous location" as defined by the Consumer Product Safety Commission. For customers on account payment is due 15 days from the date of this invoice A service charge of 2% per month i24' .. per annum) will be added to past due accounts. Work Performed on Customer's Own Material I request that work be performed using my material. 1 understand that while every precaution will be taken. Replacement Glass does not guarantee your material aga nst damage or breakage. and charges for time spent may still apply RECEIVED BY. /-N 6l10/24 9 13am by FRANK Updated 7/17/24 1:36pm by FRANK Resolution 2024-042 2.11HI I ,=4r7 an.1 1 F c� FIC. 21_4'61 907 27G LASS oY,{.I 907 231 9933 motor, .. .1" r..1ACCrra, NOR71hUENO1ASS.COM Date: July 9, 2024 Submitted to: Seward Community Library Contact: Sue Drover Phone: 907-224-4082 Job Name: Automatic Sliding Door Entrance Northmen Glass hereby submits specifications for the supply and install of: Base: A total of(I) Exterior Bi-part sliding door figured Record 5100 series with transom in a Class 1 clear anodized finish. Hardware figured Manufacture's standard with break -away doors and sidelites. Glazing figured 1" OA 270/CLR Laminated units. *Base Notes* Power to the automatic door is by others. Northmen will energize and program the door after hook-up. Bid includes a separate trip for measurements before ordering. Bid is based on approximate dimensions site -unseen and is subject to change if significant differences are found during physical inspection. Alternate Add: Supply and install a total of (1) ADA Operator on the existing interior pair of doors. Operator figured Record 8100 with wireless push button activation. *Alternate Note* Power to the new operator is by others. The new operator may not be able to tie in with the existing one for single -button activation of both, depending on its type. Northmen glass will do everything we can to hold pricing. However, due to current supply chain disruptions, and multiple price increases. Materials are subject to pricing at the time of shipment. Material availability and timeliness of shipments cannot be guaranteed. This teen supersedes all other contractual provisions. Exclusions: Final Cleaning Bond Protection of Installed Materials Replacement of Damage By Others Stamped Calcs/Special Testing Staging and Lifts Electrical work Page 1 of 2 Base Bid Total: $41,150.00 For Alternate Add: $6,450.00 71 Resolution 2024-042 :1C17 27G LASS 907 231 9'111• NOR711MENOLASS.COM Payment terms shall be as follows: Per contract or 50% down, remainder due upon completion. This bid is based on the use ofAIA-A401 subcontract or other mutually agreed upon subcontract. This proposal may be withdrawn by Northmen Glass if not accepted within thirty (30) days. A 3% charge will be added for any credit card payments over $5,000.00. The above prices, specifications, and conditions are satisfactory and are accepted. You are authorized to proceed With the work as specified. Payment shall be made following the terms defined above. Date: / _ _ l _ Signature: Nortlunen Glass Authorization: Page 2 of 2 Eldon Michal, Estimator Direct: (907) 274-5277 Fax: (907) 349-1058 72 Resolution 2024-042 record record-usa 4324 PHIL HARGETT CT. MONROE, NC 28110 (704) 289 - 9212 JOB NAME: LOCATION: SERIES 5100 AUTOMATIC SLIDING DOORS TYPE: 5106-1, SO-SX-SX-50, BI-PARTPAG1-2.06 POWER 120V, 15A, 60Hz7- 1 PHASE SAFETY m HOLD BEAMS N L T 0 N r 91 IN J MIN L/ === OPTIONAL MUNTIN BARS ELEVATION VIEW SCALE: 1/4" = 1 '0" INTERIOR "B• FRAME WIDTH A" DOOR OPENING 11F-7-1 EMERGENCY SAFETY HOLD BEAMS 1/4" [6] SLIDING 000R PIVOT SIDELITE r PIVOT 1 3/4" [44] EXTERIOR PLAN VIEW SCALE: 1/4" = 1'0" F I 2 3/4" [70] SECTION: 1 BREAKAWAY (TYP.) SCALE: 1/4 SIZE LuP DOOR OPENING o' 4 1/2" [114] to a 7" [178]-.-I FLOOR LINE SECTION: 2 SCALE: 1/4 SIZE NOTES: 1. See sheets 51-2.86 thru 51-2.91 for optional muntins, bottom rails, transoms, glazing variations, bottom guides & thresholds. 2. See sheet 51-2.92 for additional details of recessed pin guide. DIMENSIONS FOR STANDARD NARROW STILE PACKAGES DOOR OPENING "A' STD. PACKAGE WIDTH.S. STD. PACKAGE HEIGHT "C" W OR W10 THRESHOLD DOOR OPENING HEIGHT WITHRESHOLD DOOR OPENING HEIGHT WIO THRESHOLD MAX OPENING MANUALLY 42-1/2 (1080) 108 (2743) 91 (2311) 82-3/4 (2102) 83-1/4 (2115) 99-1/18 (2516) 48-1/2 (1232) 120 (3048) 91 (2311) 82-3/4 (2102) 83-1/4 (2115) 111-1/16 (2821) 60-1/2 (1537) 144 (3658) 91 (2311) 82-3/4 (2102) 83-1/4 (2115) 135-1/16 (3431) 72-1/2 (1842) 168 (4267) 91 (2311) 82-3/4 (2102) 83-1/4 (2115) 159-1/16 (4040) 84-1/2 (2146) 192 (4877) 91 (2311) 82-3/4 (2102) 83-1/4 (2115) 183-1/16 (4650) Masonry opening is r (6) per side larger and j" taller than package dimensions. Measurements given in inches (millimeters). 10/2( 73 Resolution 2024-042 COS - Library Donations July 31, 2024 01000 General Fund Liabilities 2323 Library/Museum Donations Total Liabilities Last Year This Year Balance Balance $ 28,062.62 $ 28,062.62 $ 29,259.49 $ 29,259.49 74 Resolution 2024-042 01000-0-2323 CITY OF SEWARD SMH GENERAL FUND 3/22/2019 Library/Museum Donations @ 12/31/2018 Sue Kaanta passed away in 2010 and left $25,000 to the Seward Community Library (owned by the City of Seward) as a donation to the new library/museum project. The funds were set aside for that purpose. Library/Museum Director will decide how these funds will be spent. RE: JE 03-02 (2011) R# 25462 Anonymous donation $ 25,000.00 450.45 $ 25,450.45 75 Resolution 2024-042 111 Foley &Foley B R! D G! N G GENERATIONS Seward Community Library 238 Fifth Avenue Seward, AI( 99664 July 12, 2010 Richard H. Foley, Jr, Susan Behfke Foley William Michael Pearson Re: Susan M. Kaanta Administrative Trust, dated June 20, 2010 Our File No. 3112.02 Dear Sir or Madam. Susan M. Kaanta recently passed away. She had created a living trust based estate plan to transfer her assets on her death. I am writing concerning the administration of the trust. The successor trustee of the trust is Susan J. Hopkin. I will be working with Susan J. Hopkin to administer and distribute the trust. Article Five of the Trust provides for a number of specific bequests to various charities and individuals, including your charity. Upon receiving this letter, please confirm that the spelling of your organization and your contact address are correct. Please notify me of any discrepancies. Enclosed you will find a copy of the "Notification to Heirs and Beneficiaries" of the trust. To confirm, I represent Susan J. Hopkin as the Trustee of the trust. I do not represent you as a beneficiary. As a matter of practice, I always recommend that you speak with an attorney and tax professional about your rights and the implications of this inheritance. If you have any questions or concerns, do not hesitate to call our office. Very truly yours, FOLEY & FOLEY A Professional Corporation Susan Behlke Foley SBF/smt cc: Susan J. Hopkin, Trustee 2 Si 000 halo-Utaitt e"t44 A . Foley & Foley, P.C. J Legal Counsel VT6907 522 2272 J F 907 522 6893 11001 O'Malley Centre Dr, I Suite 201 J Anchorage, AK 199515 www.foleyfoley.com r�r , RPsnlutirm 2024-042 NOTIFICATION To HEIRS AND BENEFICIARIES OF THE SUSAN M. KAANTA LIVING TRUST, DATED JUNE 20, 2010, As AMENDED (Alaska Statute 13.36.080) The undersigned Declarant, Susan J. Hopkin, as Trustee, declares under the penalty of perjury that the statements included in this Notification are true and correct: 1. The initial creator of the Susan M. Kaanta Living Trust, dated May 20, 2010, is Susan M. Kaanta. 2. The creator of the trust, Susan M. Kaanta died on June 20, 2010. 3. The name, address, and phone number of the currently acting Successor Trustee of the trust is as follows: Susan J. Hopkin, Trustee 2424 Spurr Lane Anchorage, Alaska 99517 (907) 346-2090 4. The address of the physical location where the principal place of administration of the trust is located: Foley & Foley 11001 O'Malley Centre Drive Suite 201 Anchorage, Alaska 99515 (907) 522-2272 5. The trust is currently in full force and effect. By the terms of the trust, upon the death of the creator of the trust, the portion of the trust attributable to the decedent became irrevocable. 6. You, as a beneficiary or heir of the terms of the irrevocable trust, may request from the Trustee a true and complete copy of the irrevocable trust, or the irrevocable portion of the trust. 7. Your rights to contest the trust may be limited by state law. If you wish to discuss your rights under the trust, it will be necessary for you to retain independent counsel. Dated: July 8, 2010 Y-'-t.------- Susan J. Hopkin; Trustee Notification to Heirs and Beneficiaries Page7pf 1 Resolution 2024-042 Library Main Entrance Step 1: Press the silver button to open door Step 2: Quickly navigate around the door before it automatically closes Note- The steel divider between the doors makes it difficult to fit some wheel chairs, mobility scooters, or strollers through the one open door 78 Work Session Plan: August 26 —Well/Septic Discussion October 14 - First budget discussion work session November 12 —first required public hearing on budget prior to approval at regular meeting November 25 —Work session on budget and then second public hearing Potentiallyto be scheduled Apartment Complex Work Session Airport Update Work Session Any others? Budget work sessions (what non council days/times work best for majority of group?) Draft Budget Calendar July and August - City Manager and Finance Director meet with department heads to discuss budget forms and processes, budget due to finance department. August 19-23 City Manager and Deputy Finance Director meet with department heads to discuss budget requests. August 30 Capital budgets due to finance September 23 Budget assumptions distributed to council (SCC 5.05.005) October 14 City Council work session — budget kickoff meeting (5:30 pm) October 21 City Council budget work session (5:30 pm) October 22 City Council budget work session (5:30 pm) October 28 City Council budget work session (5:30 pm) November 18 First required public hearing and motion to adopt (the motion to adopt allows the council to begin making amendments during the next special meetings and on December 09) November 18 City Council special meeting regarding budget November 25 City Council special meeting regarding budget December 09 Second required public hearing and budget adoption (Note: The budget must be adopted at a regular meeting held not less than ten days prior to the end of the fiscal year. Charter 6.3 and SCC 5.05.015) 79 Topic: Discussion on City Manager Travel From: Kat Sorensen As we approach the FY25/26 budget cycle, I wanted to touch base on the usual travel that the City Manager has historically participated in. I don't anticipate many changes, but wanted to confirm with Council before budgeting for each of these. Historically the City Manager has travelled on the following schedule. This does not include unique training opportunities or the required ICS trainings that I have/will attend (ICS 300 is done, still need to do ICS 400 but plan on doing it remotely). Juneau Lobbying Trip (beginning of year) *Attend with Mayor + Councilmember usually Washington D.C. Lobbying Trip (Spring) *Attend with Mayor and/or Councilmember Summer Legislative Conference *Varying locations in state International City Management Association Annual Conference (September/October) *Location changes throughout Lower 48 *In City Manager's employment contract to attend Annual Local Government Conference (December) *Anchorage In addition, we had some conversations at a council level about the City Manager attending SeaTrade Cruise Global -the largest cruise oriented conference in the world held annually in the Spring in Miami, FL. I think this would be a good addition for the next couple years as the Alaska Railroad builds the new cruise terminal. 80 City of Seward, Alaska Planning & Zoning Commission Meeting Minutes July 2, 2024 Volume 8, Page CALL TO ORDER The July 2, 2024 regular meeting of the Planning & Zoning Commission was called to order at 7:00 p.m. by Chair Carol Griswold. OPENING CEREMONY Commissioner Sean Ulman 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 Daniel Meuninck, Community Development Director Courtney Bringhurst, City Planner Clara Brown, Executive Assistant Kris Peck, City Clerk Excused — Hornseth Absent — None Vacant — One CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING -None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Charbonneau/Verhey) Approval of Agenda and Consent Agenda Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the June 6, 2024 Planning & Zoning Commission Meeting Minutes SPECIAL ORDERS, PRESENTATION, AND REPORTS Proclamations and Awards -None 81 City of Seward, Alaska Planning & Zoning Commission Meeting Minutes July 2, 2024 Volume 8, Page City Administration Report Community Development Director Daniel Meuninck provided an update on P&Z agenda items that were being forwarded on to City Council for review. He said that Ordinance 2024-009 regarding cluster subdivisions had been postponed until the next meeting. Also coming up at the next meeting would be the Dieckgraeff Road flood mitigation issue and the Olympia Road renaming resolution. Meuninck wished everyone a happy Fourth of July week. Presentations -None PUBLIC HEARINGS Resolutions Requiring Public Hearing Resolution 2024-014, of the Planning and Zoning Commission of the City of Seward, Alaska, Granting a Conditional Use Permit to CATC Alaska Tourism Corporation to Construct a Second Bunkhouse on Lot 22A, Clearview 2018 Replat; Located at 208 Phoenix Road; Within an Auto Commercial (AC) Zoning District (This is a quasi-judicial item. Commissioners may not discuss any items pertaining to this Resolution with the applicant, other commissioners, or the public) Motion (Charbonneau/Hubbard) Approve Resolution 2024-014 "Bringhurst explained the history of the 2018 CUP for a 12-unit bunkhouse for this site. Construction was never started so the CUP became void. The proposed 16-unit bunkhouse would be built in the same location." Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Geri Nipp, outside city limits, introduced herself as the manager for Kenai Fjords Tours which was a CATC property. She spoke in support of approving the CUP because housing was in short supply in Seward. She wanted to provide good housing for all their employees. There had never been any complaints from the neighbors regarding previous bunkhouses. Lastly, Nipp said this bunkhouse was intended to be used only in the summer. 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. None of the commissioners had any ex parte contact. Griswold disclosed that the applicant did approach her, but she explained ex parte contact, and nothing further was discussed. After the ex parte contact had been disclosed the commission started their discussion on the CUP. 82 City of Seward, Alaska Planning & Zoning Commission Meeting Minutes July 2, 2024 Volume 8, Page Charbonneau said he looked over the conditions of the CUP and the parking seemed ample, and the bear -proof cans were a good idea. He felt that providing housing for the employees was very important. Hubbard said she appreciated the buffer of greenery around the property. She asked if landscaping was required in code. Bringhurst clarified that sometimes screening was required, but there were not any requirements in code. Griswold noted that Condition #1 in the resolution required that every effort be made to retain and maintain the green buffer. Griswold invited the applicant Larry Harmon to come up to the table to answer any specific questions. Griswold discussed the parking plan and noted that employee parking could be relocated next to the building. She said it was great to see an employer providing employee housing. Ulman said it was nice to see this bunkhouse in a location where we already know a bunkhouse worked well. He was curious why the 2018 CUP failed or what obstacles it faced. Harmon said he wasn't sure why the 2018 project stalled out. However, he knew it was not related to the CUP in any way. Ulman asked about the possibility of winter rentals. Harmon said the building would be built to Alaska winter standards and could be lived in year-round if needed. Motion Passed Unanimous Resolution 2024-015, of the Planning and Zoning Commission of the City of Seward, Alaska, Recommending City Council Approval of 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 Motion (Charbonneau/Verhey) Approve Resolution 2024-015 Bringhurst explained the replat only addressed the section of this Right -Of -War. She said the road was a natural continuation of Phoenix Road. This rename would help avoid confusion in the future. 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. Charbonneau felt this renaming was about as good as it was going to get. It was still a strange situation, but there was no way to get the street names any better. Griswold said it was a perfect time to rename the road before anyone actually lived there. Permanent addresses had yet to be issued. Motion Passed Unanimous 83 City of Seward, Alaska Planning & Zoning Commission Meeting Minutes July 2, 2024 Volume 8, Page UNFINISHED BUSINESS - None NEW BUSINESS Other New Business Discuss a land swap between the property located at 2405 Seward Highway and city owned property at 1000 Hemlock Ave Meuninck said administration was looking for feedback from the commission. The swap would benefit the city by expanding the "snow dump" area, and then provide the private owners with direct access to their property along Hemlock Ave. He said there were three different zoning districts in the area. The pieces of land to be traded would need to be rezoned and sorted out. He questioned the best order of operations for this process and recalled the city land sold to Seward City Tours was sold first prior to the rezone. The Commission discussed the possible land swap. Griswold emphasized that public land was involved, and the swap must be shown to be in the public interest. Meuninck thanked the Commission for the discussion. Discuss Work Session Topic for July 16, 2024 Meuninck said he had two topics that he was hoping the Commission would discuss: Comprehensive Plan Update & Feedback Marijuana Establishment Update for City Code INFORMATIONAL ITEMS AND REPORTS Reminder of Meetings Work session on Tuesday, July 16, 2024 at 6:00 p.m. Regular meeting on Tuesday, August 6, 2024 at 7:00 p.m. CITIZEN COMMENTS -None COMMISSION AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Meuninck thanked the five commissioners for showing up on a sunny July evening. Ulman thanked the public for showing up for the meeting. He thanked administration for setting up the Commission for good discussion. 84 City of Seward, Alaska Planning & Zoning Commission Meeting Minutes July 2, 2024 Volume 8, Page Charbonneau thanked administration for their hard work. He thanked the public and applicants for coming to the meeting. Hubbard thanked administration for sending out a nice packet. She appreciated all the help from staff and commission. Griswold thanked the applicant for showing up for the CUP. She wished everyone a very happy Fourth of July. ADJOURNMENT The meeting was adjourned at 8:04 p.m. Kris Peck Carol Griswold City Clerk Chair (City Seal) 85 City of Seward PO Box 167 Seward, Alaska 99664 August 6, 2024 Kris Peck, City Clerk City of Seward Re: Work Session Request for August 26, 2024 Mr. Clerk, APPROVED Please consider this my written request, as required by Seward City Code 2.10.030 (a)(2), for a work session on August 26, 2024, at 6:00 p.m. for the following item: Discuss wells and septic tanks within city limits. Tha Kat Sorensen, City Manager RECEIVED AUG 6 2024 OFFICE OF THE CITY CLERK 86 KPMG LLP Suite 2800 401 Union Street Seattle, WA 98101 April 29, 2024 The Board of Directors Providence Health & Services — Washington and the City of Seward Seward, Alaska To the Board of Directors of Providence Health & Services — Washington and the City of Seward: We have audited the financial statements of Providence Seward Medical Center (the Medical Center) as of December 31, 2023 and 2022 and for each of the years then ended, and have issued our report thereon under date of April 29, 2024. Under our professional standards, we are providing you with the accompanying information related to the conduct of our audits. Our Responsibility Under Professional Standards We are responsible for forming and expressing an opinion about whether the financial statements, that have been prepared by Providence Health & Services — Washington management with the oversight of the Board of Directors, are presented fairly, in all material respects, in conformity with the financial reporting provisions of the Management and Operating Agreement between Providence Health & Services — Washington and the City of Seward (the Agreement). We have a responsibility to perform our audit of the financial statements in accordance with auditing standards generally accepted in the United States of America (GAAS). In carrying out this responsibility, we planned and performed the audit to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatement, whether caused by error or fraud. Because of the nature of audit evidence and the characteristics of fraud, we are to obtain reasonable, not absolute, assurance that material misstatements are detected. We have no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by error or fraud, that are not material to the financial statements are detected. Our audits do not relieve management or the Board of Directors of their responsibilities. In addition, in planning and performing our audit of the financial statements, we considered internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements but not for the purpose of expressing an opinion on the effectiveness of the Medical Center's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Medical Center's internal control. We also have a responsibility to communicate significant matters related to the financial statement audit that are, in our professional judgment, relevant to the responsibilities of the Board of Directors of Providence Health & Services — Washington and the City of Seward in overseeing the financial reporting process. We are not required to design procedures for the purpose of identifying other matters to communicate to you. Significant Unusual Transactions In connection with our audit of the Medical Center's financial statements, no significant unusual transactions were identified. KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited. a private English company limited by guarantee. 87 The Board of Directors Providence Health & Services — Washington and City of Seward Page 2of4 Uncorrected and Corrected Misstatements Uncorrected Misstatements and Financial Statement Presentation and Disclosure Omissions In connection with our audit of the Medical Center's financial statements, we have discussed with management certain financial statement misstatements related to accounts and disclosures that have not been corrected in the Medical Center's books and records as of and for the year ended December 31, 2023. We have reported such misstatements to management on a Summary of Audit Misstatements and have received written representations from management that the effects of the uncorrected financial statement misstatements related to accounts and disclosures are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Uncorrected immaterial misstatements, or matters underlying them, could potentially cause future -period financial statements to be materially misstated. Attached is a copy of the summary that has been provided to, and discussed with, management. Corrected Misstatements In addition, during the course of our audit, we identified and discussed with management a financial statement misstatement that was corrected by the Medical Center. Non-GAAP Accounting Policies and Practices The Medical Center has adopted certain accounting policies or practices that, if applied to significant items or transactions, are not in accordance with U.S. generally accepted accounting principles. The Medical Center has evaluated the effect of the application of such policies and practices on the financial statements and concluded that such effect is not material to the 2023 financial statements. Auditors' Report The auditor's report includes the following emphasis of matter paragraph: We draw attention to Note 2 of the financial statements, which describes the basis of accounting. As described in Note 2 to the financial statements, the financial statements are prepared by the Medical Center on the basis of the financial reporting provisions of the Agreement, which is a basis of accounting other than U.S. generally accepted accounting principles, to meet the requirements of the Agreement. As a result, the financial statements may not be suitable for another purpose. Our opinion is not modified with respect to this matter. Significant Accounting Policies and Practices In connection with our audit of the Medical Center's financial statements, no new, or changes in, significant accounting policies and practices were identified. Qualitative Aspects of Significant Accounting Practices We have discussed with the Board of Directors and management our judgments about the quality, not just the acceptability, of the Medical Center's accounting policies as applied in its financial reporting. The discussions generally included such matters as the consistency of the Medical Center's accounting policies and their application, and the understandability and completeness of the Medical Center's financial statements, which include related disclosures. 88 The Board of Directors Providence Health & Services — Washington and City of Seward Page 3 of 4 Significant Accounting Estimates and Significant Financial Statement Disclosures The preparation of the financial statements requires management of the Medical Center to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Accounts Receivable Allowances Management's estimate of the allowance for contractual and bad debt deductions on patient accounts receivable is based on an analysis of historical rates of collection by payor for inpatient and outpatient services. Management's estimate considered the impact of price increases as well as historical collection rates of completion. We evaluated the key factors and assumptions used to develop the allowances, including possible management bias in developing the estimate, in determining that the allowance for contractual and bad debt deductions on patient accounts receivable is reasonable in relation to the financial statements taken as a whole. Noncompliance with Laws and Regulations, Including Illegal Acts or Fraud In connection with our audit of the Medical Center's financial statements, no identified or suspected instances of noncompliance with laws and regulations, including illegal acts or fraud, have come to our attention. Significant Difficulties Encountered During the Audit We encountered no significant difficulties in dealing with management in performing our audit. Management's Consultation with Other Accountants To the best of our knowledge, management has not consulted with other accountants during the year ended December 31, 2023. Written Communications Attached to this letter please find copies of the following written communications between management and us: 1. Management representation letter Independence Affirmation of Independence In connection with our audit of the Medical Center, KPMG and relevant KPMG professionals have complied with relevant ethical requirements regarding independence, as that term is defined by the professional standards. This letter to the Board of Directors of Providence Health & Services — Washington and the City of Seward is intended solely for the information and use of the Board of Directors of Providence Health & Services — 89 The Board of Directors Providence Health & Services — Washington and City of Seward Page 4of4 Washington and the City of Seward and management and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, w(G LEP 90 DocuSign Envelope ID: 8A4BFB6B-B6D0-45EB-9BEB-E5D56CC48D05 Providence April 29, 2024 KPMG LLP Attn: Paige Hagen 401 Union St, Suite 2800 Seattle, Washington 98101 1801 Lind Ave SW Gamelin Building Renton, WA 98057 providence.org We are providing this letter in connection with your audits of the financial statements and the related notes to the financial statements of the Providence Seward Medical Center (the Medical Center) as of and for the years ended December 31, 2023 and 2022, for the purpose of expressing opinions as to whether these financial statements present fairly, in all material respects, the respective contractual basis net positions, contractual basis changes in net positions, and, contractual basis cash flows thereof in accordance with the financial reporting provisions of the Management and Operating agreement between Providence Health & Services — Washington and the City (the Agreement) in Note 2. Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. We confirm, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves, as of April 29, 2024: 1. We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated December 13, 2023, for the preparation and fair presentation of the financial statements in accordance with the financial reporting provisions of the Agreement. 2. We have made available to you: a. All records, documentation, and information that is relevant to the preparation and fair presentation of the financial statements; b. Additional information that you have requested from us for the purpose of the audits; c. All minutes of the meetings of Providence Alaska Region's Community Ministry Board, or summaries of actions of recent meetings for which minutes have not yet been prepared. All significant board and committee actions are included in the summaries; and d. Unrestricted access and the full cooperation of personnel within the entity from whom you determined it necessary to obtain audit evidence. 3. Except as disclosed to you in writing, there have been no communications from regulatory agencies, governmental representatives, employees or others concerning investigations or allegations of noncompliance with laws and regulations in any jurisdiction (including those related to 91 DocuSign Envelope ID: 8A4BFB6B-B6D0-45EB-9BEB-E5D56CC48D05 April 29, 2024 Page 2 of 5 the Medicare and Medicaid antifraud and abuse statutes), deficiencies in financial reporting practices, or other matters that could have a material adverse effect on the financial statements. 4. There are no known instances of non-compliance or suspected non-compliance with laws and regulations, such as those related to the Medicare and Medicaid antifraud and abuse statutes, including but not limited to the Anti -Kickback Statute, Limitations on Certain Physician Referrals (commonly referred to as the "Stark law"), and the False Claims Act, whose effects should be considered when preparing the financial. 5. All material transactions have been recorded in the accounting records and are reflected in the financial statements. 6. There are no side agreements or other arrangements (either written or oral). 7. All events subsequent to the date of the statement of net position and through the date of this letter for which US GAAP requires adjustment or disclosure have been adjusted or disclosed. 8. The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with paragraphs 96 — 113 of Governmental Accounting Standards Board (GASB) Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre -November 30, 1989 FASB and AICPA Pronouncements. 9. We are not aware of any pending or threatened litigation, claims, and assessments whose effects should be considered when preparing the financial statements. 10. The effects of the uncorrected financial statement misstatements summarized in the accompanying schedules are immaterial, both individually and in the aggregate, to the financial statements for each respective opinion unit. 11. We acknowledge our responsibility for the design, implementation, and maintenance of programs and controls to prevent, deter, and detect fraud; for adopting sound accounting policies; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements and to provide reasonable assurance against the possibility of misstatements that are material to the financial statements, whether due to error or fraud. We understand that the term `fraud' is defined as an intentional act by one or more individuals among management, those charged with governance, employees, or third parties, involving the use of deception that results in a misstatement in financial statements that are the subject of an audit. 12. We have disclosed to you all deficiencies in the design or operation of internal control over financial reporting of which we are aware, which could adversely affect the Medical Center's ability to initiate, authorize, record, process, or report financial data. There are no such deficiencies that we believe to be significant deficiencies or material weaknesses in internal control over financial reporting, as those terms are defined in AU-C Section 265.07, Communicating Internal Control Related Matters Identified in an Audit. 13. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. 14. We have no knowledge of any fraud or suspected fraud affecting the Medical Center involving: a. Management, b. Employees who have significant roles in internal control, or DocuSign Envelope ID: 8A4BFB6B-B6D0-45EB-9BEB-E5D56CC48D05 April 29, 2024 Page 3 of 5 c. Others where the fraud could have a material effect on the financial statements. 15. We have no knowledge of any allegations of fraud, or suspected fraud, affecting the Medical Center's financial statements communicated by employees, former employees, analysts, regulators, or others. 16. We have no knowledge of any officer or director of the Medical Center, or any other person acting under the direction thereof, having taken any action to fraudulently influence, coerce, manipulate, or mislead you during your audit. 17. The methods, data, and significant assumptions used by us in making accounting estimates and their related disclosures are appropriate to achieve recognition, measurement, or disclosure that is reasonable in accordance with US GAAP. 18. We have disclosed to you the identity of all our related parties and all the related party relationships and transactions of which we are aware. 19. The following have been properly recorded or disclosed in the financial statements: a. Related party relationships and transactions, of which we are aware, in accordance with US GAAP, including sales, purchases, loans, transfers, leasing arrangements, guarantees, ongoing contractual commitments and amounts receivable from or payable to related parties. The term "related party" refers to government's related organizations, joint ventures, and jointly governed organizations, as defined in GASB Statement No. 14, The Financial Reporting Entity, as amended; elected and appointed officials of the government; its management; members of the immediate families of elected or appointed officials of the government and its management; and other parties with which the government may deal if one party can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. Another party also is a related party if it can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. b. Guarantees, whether written or oral, under which the Medical Center is contingently liable. c. The existence of and transactions with joint ventures and other related organizations. 20. The Medical Center has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets, nor has any asset been pledged as collateral. 21. The Medical Center has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 22. Billings to third -party payors comply in all material respects with applicable coding guidelines (e.g., ICD-10-CM and CPT-4) and laws and regulations (including those dealing with Medicare and Medicaid antifraud and abuse) and only reflect charges for goods and services that were medically necessary, ordered in writing by a treating physician, properly approved by regulatory bodies (for example, the Food and Drug Administration), if required, and properly rendered. 93 DocuSign Envelope ID: 8A4BFB6B-B6D0-45EB-9BEB-E5D56CC48D05 April 29, 2024 Page4of5 23. We have disclosed to you all accounting policies and practices we have adopted that, if applied to significant items or transactions, would not be in accordance with US GAAP. We have evaluated the impact of the application of each such policy and practice, both individually and in the aggregate, on the Medical Center's current period financial statements , and the expected impact of each such policy and practice on future periods' financial reporting. We believe the effect of these policies and practices on the financial statements is not material. Furthermore, we do not believe the impact of the application of these policies and practices will be material to the financial statements in future periods. 24. To the best of our knowledge and belief, we have provided you with a complete and accurate listing of our affiliates as defined by the AICPA Code of Professional Conduct interpretation ET 1.224.020, State and Local Government Client Affiliates. 25. Management is responsible for the accuracy and propriety of all cost reports filed and all the required Medicare, Medicaid, and similar cost reports have been properly filed. All costs reflected on such reports are appropriate and allowable under applicable reimbursement rules and regulations and are patient related and properly allocated to applicable payors. The reimbursement methodologies and principles employed are in accordance with applicable rules and regulations. All items required to be disclosed, including disputed costs that are being claimed to establish a basis for a subsequent appeal, have been fully disclosed in the cost report. Recorded third -party settlements include differences between filed (and to be filed) cost reports and calculated settlements, which are necessary based on historical experience or new or ambiguous regulations that may be subject to differing interpretations and audit adjustments by intermediaries, third -party payors, or other regulatory agencies. While management believes the entity is entitled to all the amounts claimed on the cost reports, management also believes the amounts of these differences are appropriate. 26. Based on our determination letter, the Medical Center has been classified as a division of the City of Seward under Section 115(a) of the Internal Revenue Code, and since the date of our determination letter, no changes have occurred in the organization or its operations that would change this classification. 27. There are no representations provided in connection with your audits of the Medical Center's financial statements as of December 31, 2022 and for the year then ended that requires modification. 28. We have properly recorded or disclosed in the financial statements significant relationships with affiliated organizations, and the financial statements of those organizations, where required. 29. In accordance with Government Auditing Standards, we have identified to you all previous audits, attestation engagements, and other studies that related to the objectives of this audit, including whether related recommendations have been implemented. 30. KPMG LLP assisted management in drafting the financial statements and notes. In accordance with Government Auditing Standards, we confirm that we have reviewed, approved, and accept responsibility for the financial statements and notes. 31. The Medical Center has no plans or intentions that may materially affect the carrying value or classification of assets, deferred outflows of resources, liabilities, and deferred inflows of resources. DocuSign Envelope ID: 8A4BFB6B-B6D0-45EB-9BEB-E5D56CC48D05 April 29, 2024 Page 5 of 5 Very truly yours, Providence Seward Medical Center ,—DocuSigned by: QK1fi (tiuti —aF�, a�ava«ovm Amy Miller Regional Chief Financial Officer Docu/Sign_ed,bby: L„' fil& A(.1U/21tlIN2b41-2 Jim Martin Group VP Controller 4/26/2024 4/26/2024 While the representation letter is now available for signature, it is understood and agreed that, notwithstanding the signature date of the representation letter indicated by DocuSign (the "DocuSign Signature Date"), the representations being provided in the representation letter are being made, and may be relied upon by KPMG for all purposes, as of the effective date set forth in such letter (the "Effective Date") and without regard to any change in fact or circumstance occurring between the DocuSign Signature Date and the Effective Date, unless you inform us of the change in fact or circumstance prior to the issuance of our report on the Effective Date. 95 DocuSign Envelope ID: 8A4BFB6B-B6D0-45EB-9BEB-E5D56CC48D05 Summery of Audit Misstatements • uncorrected f inky: vrm %me Semrd m.Nm [emr for Period fatedumber 31,2013 Netlw0 used luauantmAunhw,Hwnmnt: Hlbwr nNho4 fpmnMF:wr Nemessw.35ummt Fol. fM Income AteisminaliffsedeJ131%11.m.1 Henn SHn6Mn-0ebb l[7N01. 0 .flow Non-Inrreewl0amml ro 6udAtbnelnhnnmm lud[mmale. infante nhnatemaml Misstarament In ms min Y • disclosure, m.ItlmNhabbl Accounts Debit Income eMeetN corm.. du balance r door Mrbd (wrrwrwerd from eNr woad)There _ eflesse of �'� Hb M see m .Meat fiNbmm and NH SwaygbY. Currant Amu Au. cumin 2ab WbmY. Adele[ A Immtly Actiddm ewpH 9Y."— lntea A3M6Y9 cam A 4141 was a net understatement net patient Ned cut ore She net amount to 2022 posted in 2023 was lower than the net punt related to 2023 posted in 2024. Factual Across t patient accounts receivable 112,008 - 112008 - 1112,008)revenue Net patient aemwwmnue 1112,0081 40542 (714661 1112,0051 1112,00.1 - - 112,009 - - FY•AM2expenses As art of me subsequent disbursement nng. it was identified that certain invoices were not accrued as or 12/31/22. 4s suds, the aucciated payable were undentaM. NEN. hat incwded the rollover impact in the[unent rears management did not coma the misstatement in the pdor re factual Accounts purchased Services 22,392 - 122,392) - - Salaries and wages expense 379,247 - 137.3,2471 - - - supplies Expense - 7,322 - (7,3271 - - - Other operating expense 19,I24 119.7141 - - - - - - financial smemm cantlam elYned H mbn0ematv4 Balm. slum en Amounts payable 541.ra6Na Of. mbawmnma India caption statement financial mNlon (par final financial statemened (90.970) (1.755.0001 Aggregate effect of unto reseed audit misstatements (before as: 1540,057) (612,0001 112,00e Aggregate effect of uncorrected audit misstatements laeffect falter tax). 1540.6515 (112.0051 112.00. 0 0 0 01 0 0 amounts !per final financial statements' 'alter tax): 10001,000) 16,165,0001 12,067,,0ro I2,g05,Om1 (2,376,0001 11,423,000) ' 0.404,0(0) (360000) Uncorrected audit misstatements ements as a percentage of Onamial%atement amounts falter Cash 12.29% 1E1214 0.90% 0.00% 0.03% 0.0014 0.0014 0.00% 0.00% o.W%I percentage et financial statement sun. 1/1 Ste Income statement Nes patient service revenue Purchased Services salaries an4 wages esPenm Other operating expense Aprapta .Nees N mhnetemnb laths caption 1112.00a1 62.578 /3792471 A.3271 119.,w statement Manta caption liar finallwwm statamoisul (29,520,0001 premiss. Yowl msbnq wfundmst.d ,H3..nn0 enisetatements on the 5AMeen•n1 ete minuted • nt lthh bYrmtlan 6e8hnea rmu.dn[ the 015 1a11,312) 96 DocuSign Envelope ID: 8A4BFB6B-B6D0-45EB-9BEB-E5D56CC48D05 Summary of Audit Misstatements - Corrected Entity: Providence Seward Medical Center For Period Ended: December 31, 2023 Amounts in: currency units Balance sheet Income statement ID Description of misstatement P Factual, judgmental or projected misstatement? Misstatement in accounts or in disclosure? Accounts(if applicable) pp ) Debit (Credit) Debit (Credit) AM2 As part of the subsequent disbursement testing, the engagement team identified certain invoices that were related to services in 2023 but were not accrued as of 12/31/2023. As such, accounts payable and the associated expense were understated. Factual Accounts Accounts payable (84,970) Purchased services - - 84,970 Aggregate effect of corrected audit misstatements: (84,970) 84,970 97 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Financial Statements December 31, 2023 and 2022 (With Independent Auditors' Report Thereon) 98 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Table of Contents Page Independent Auditors' Report 1 Financial Statements: Statements of Net Position — Contractual Basis 3 Statements of Revenues, Expenses, and Changes in Net Position — Contractual Basis 4 Statements of Cash Flows — Contractual Basis 5 Notes to Financial Statements 6 99 KPMG LLP Suite 2800 401 Union Street Seattle, WA 98101 Independent Auditors' Report The Board of Directors Providence Health & Services — Washington and the City of Seward: We have audited the financial statements of Providence Seward Medical Center (the Medical Center), a hospital owned by the City of Seward, Alaska (the City) and managed by Providence Health & Services — Washington (a Washington nonprofit corporation), which comprise the statements of net position — contractual basis as of December 31, 2023 and 2022, and the related statements of revenues, expenses, and changes in net position — contractual basis; and statements of cash flows — contractual basis for the years then ended, and the related notes to the financial statements. In our opinion, the accompanying financial statements present fairly, in all material respects, the contractual basis net position of the Medical Center as of December 31, 2023 and 2022, and the contractual basis changes in net position and contractual basis cash flows thereof for the years then ended in accordance with the financial reporting provisions of the Management and Operating Agreement between Providence Health & Services — Washington and the City (the Agreement) in note 2. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Medical Center and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter — Basis of Accounting We draw attention to note 2 of the financial statements, which describes the basis of accounting. As described in note 2 to the financial statements, the financial statements are prepared by the Medical Center on the basis of the financial reporting provisions of the Agreement, which is a basis of accounting other than U.S. generally accepted accounting principles, to meet the requirements of the Agreement. As a result, the financial statements may not be suitable for another purpose. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the financial reporting provisions of the Agreement. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. 100 from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Medical Center's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Medical Center's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Restriction on Use Our report is intended solely for the information and use of the Board of Directors and management of Providence Health & Services — Washington, the City, the State of Alaska Department of Health and Social Services, and Altman, Rogers & Co., and is not intended to be and should not be used by anyone other than these specified parties. Seattle, Washington April 29, 2024 K‘PNi(G LEP 2 101 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services - Washington) Statements of Net Position - Contractual Basis December 31, 2023 and 2022 (In thousands of dollars) Assets 2023 2022 Current assets: Cash and cash equivalents $ 751 5,946 Accounts receivable, less allowance for bad debts of $1,687 in 2023 and $1,798 in 2022 10,581 5,471 Other current assets 1,125 506 Total current assets 12,457 11,923 Capital assets, net 2,406 1,775 Funds held for capital additions 1,498 1,243 Other Tong -term assets 65 77 Total assets Liabilities and Net Position $ 16,426 15,018 Current liabilities: Accounts payable $ 1,755 1,018 Accrued compensation 1,017 1,219 Payable to Providence Health & Services - Washington 4,427 3,842 Due to contractual agencies - 166 Current portion of lease liabilities 245 113 Other current liabilities 441 754 Total current liabilities Other Tong -term liabilities Long-term lease liabilities Total liabilities 7,885 7,112 1,274 1,102 1,573 1,157 10,261 9,842 Net position: Net investment in capital assets 1,058 505 Restricted 45 54 Unrestricted 5,062 4,617 Total net position Total liabilities and net position See accompanying notes to financial statements. 3 6,165 5,176 $ 16,426 15,018 102 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Statements of Revenues, Expenses, and Changes in Net Position — Contractual Basis Years ended December 31, 2023 and 2022 (In thousands of dollars) 2023 2022 Operating revenues: Net patient service revenues, net of provision for bad debts $3,655 in 2023 and $2,586 in 2022 $ 29,520 29,525 Other revenues 266 509 Total operating revenues 29,786 30,034 Operating expenses: Salaries and wages 15,990 15,024 Employee benefits 3,417 3,407 Professional fees 71 169 Purchased services 3,199 3,236 Supplies 1,314 1,378 Depreciation and amortization 335 379 Other 1,059 1,070 Total operating expenses 25,385 24,663 Operating income 4,401 5,371 Nonoperating revenues — 306 Excess of revenue over expenses 4,401 5,677 Restricted contributions and other (8) 3 Change in net position before transfers 4,393 5,680 Transfers to the City of Seward (3,404) (2,946) Change in net position 989 2,734 Net position — beginning of year 5,176 2,442 Net position — end of year $ 6,165 5,176 See accompanying notes to financial statements. 4 103 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Statements of Cash Flows — Contractual Basis Years ended December 31, 2023 and 2022 (In thousands of dollars) 2023 2022 Cash flows from operating activities: Cash received for patient care $ 25,385 30,884 Cash received for other services 266 509 Cash paid to employees (19,609) (18,318) Cash paid to suppliers and others (7,465) (5,055) Net cash (used in) provided by operating activities Cash flows from noncapital financing activity: Transfers to City of Seward Net cash used in noncapital financing activity (1,423) 8,020 (3,404) (2,946) (3,404) (2,946) Cash flows from capital and related financing activities: Principal payments on financed purchase obligations (86) (92) Cash paid for principal and interest on leases (282) (233) Net cash used in capital and related financing activities (Decrease) increase in cash and cash equivalents Cash and cash equivalents, beginning of year (368) (325) (5,195) 4,749 5,946 1,197 Cash and cash equivalents, end of year $ 751 5,946 Reconciliation of operating income to net cash (used in) provided by operating activities: Operating income $ 4,401 5,371 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization 335 379 Provision for bad debts 3,655 2,586 Changes in operating assets and liabilities (9,814) (316) Net cash (used in) provided by operating activities $ (1,423) 8,020 See accompanying notes to financial statements. 5 104 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) (1) Organization Providence Seward Medical Center (the Medical Center) is a hospital owned by the City of Seward, Alaska (the City) and managed by Providence Health & Services — Washington (a Washington nonprofit corporation) (the Corporation). The Medical Center is an acute care and long-term care facility located in Seward, Alaska. Effective October 8, 2008, the Corporation and the City entered into a Management and Operating Agreement (the Agreement) whereby the Corporation manages the Medical Center while all financial risks and rewards from the operations of the Medical Center remain with the City. The City will fund shortfalls at the Medical Center. The Medical Center property, including the facility, is owned by the City and is not recorded on the Medical Center's financial statements, and per the Agreement, the cost of such property is not charged to the Medical Center. Under the Agreement, the Medical Center pays only for directly identifiable administrative costs and overhead costs, up to a specified limit, attributable to the Medical Center. All management fees and costs reimbursed are included in purchased services in the accompanying statements of revenues, expenses, and changes in net position — contractual basis. The Medical Center pays a management fee to the Corporation according to the terms of the Agreement. Management fees were $898 and $856 for the years ended December 31, 2023 and 2022, respectively, and are included in purchased services in the accompanying statements of revenues, expenses, and changes in net position — contractual basis. (2) Summary of Significant Accounting Policies (a) Measurement Focus and Basis of Accounting The Medical Center reports as business -type activities, as defined by Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments. Business -type activities are those that are financed in whole or in part by fees charged to external parties for goods or services. The financial statements of the Medical Center are prepared in accordance with the Agreement between the Corporation and the City. Accordingly, the Medical Center's financial statements have been prepared using the economic resource measurement focus and the accrual basis of accounting in accordance with U.S. generally accepted accounting principles as prescribed by GASB, except the Medical Center does not include capital assets or depreciation expenses related to property, plant, and equipment of the Medical Center, purchased or constructed by the City. These financial statements also do not include long-term debt and related interest expenses related to the funding of purchase or construction of property, plant, and equipment by the City. These financial statements also exclude Management's Discussion and Analysis, which is required by GASB Statement No. 34. 6 (Continued) 105 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) Measurement focus indicates the type of resources being measured, such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. Under the accrual basis, revenues are recognized when earned and expenses are recorded when liabilities are incurred without regard to receipt or disbursement of cash. (b) Use of Estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (c) Cash and Cash Equivalents Cash and cash equivalents include cash and investments in highly liquid instruments with an original maturity of three months or less. Custodial credit risk for deposits is the risk that in the event of a financial institution failure, the Medical Center's deposits may not be returned. The bank deposits are held with financial institutions and are insured or collateralized. For the periods disclosed, the Federal Deposit Insurance Corporation insurance was $250. As of December 31, 2023 and 2022, $520 and $5,745, respectively, of the Medical Center's bank balance was subject to custodial credit risk. (d) Classification of Revenues and Expenses The Medical Center's financial statements of revenues, expenses, and changes in net position — contractual basis distinguish between operating revenues, expenses, nonoperating revenues, and capital contributions. Operating revenues, such as patient service revenue, result from exchange transactions associated with providing healthcare services — the Medical Center's primary business. Exchange transactions are those in which each party to the transaction receives and gives up essentially equal values. Nonexchange revenues are reported as nonoperating revenues. As the City reports the Medical Center as a blended component unit, nonexchange transactions between the two entities are reported as transfers in the statements of revenues, expenses, and changes in net position — contractual basis. Operating expenses are all expenses incurred to provide healthcare services, other than financing costs. (e) Capital Assets and Depreciation Capital assets (primarily movable equipment) are stated at cost. Improvements and replacements of plant and equipment are capitalized. Maintenance and repairs are expensed as incurred. The cost of the capital assets sold or retired and the related accumulated depreciation are removed from the accounts, and the resulting gain or loss is recognized at the time of disposal. The provision for depreciation is determined by the straight-line method, which allocates the cost of capital assets equally over their estimated useful lives. The estimated useful lives of movable equipment used by the Medical Center are 3 to 15 years. 7 (Continued) 106 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) (I) Net Position Net position of the Medical Center is classified in the following three components: (9) (i) Net Investment in Capital Assets This component of net position consists of capital assets net of accumulated depreciation and leases net of accumulated amortization. (ii) Restricted This component of net position consists of noncapital assets that must be used for a particular purpose, as specified by creditors, grantors, or contributors external to the Medical Center. When both restricted and unrestricted resources are available for use, generally it is the Medical Center's policy to use restricted resources first, and then unrestricted resources when they are needed. Oil) Unrestricted This component consists of all other funds available to the Medical Center that do not meet the definition of net investment in capital assets or restricted for capital acquisition. If expenses are incurred in excess of available funds the net position is reported as a deficit. Income Taxes The Medical Center is a division of the City, and is exempt from federal income taxes, except on unrelated business income, under Section 115(a) of the Internal Revenue Code. (h) Leases The Medical Center enters into noncancelable leases primarily for buildings and equipment. For leases with a maximum possible term of 12 months or less at commencement, the Medical Center recognizes expense based on the terms of the lease contract. For all other leases, the Medical Center recognizes a lease liability, which is recorded within current portion of lease liabilities and long-term lease liabilities in the statements of net position and a right -to -use lease asset, net of accumulated amortization at the present value of payments expected to be made throughout the lease term, which is recorded in capital assets, net. The Medical Center uses its estimated incremental borrowing rate based on information available at the commencement date of the lease in determining the present value of lease payments unless the rate that the lessor charges is known. Variable lease payments, other than those payments that depend on an index or rate or are fixed in substance, are excluded from the measurement of the lease and are expensed as incurred. Subsequently, the lease liability is reduced by the principal portion of lease payments made. Interest expense is recognized ratably over the contract term. The right -to -use lease asset is initially measured as the initial amount of the lease liability, plus lease payments made at or before the lease commencement date, plus any initial direct costs ancillary to placing the underlying asset into service, less any lease incentives received at or before the lease commencement date. Subsequently, the right -to -use lease asset is amortized on a straight-line basis over the shorter of the lease term or the useful life of the underlying asset, which is recorded within depreciation and amortization in the 8 (Continued) 107 (i) PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) statements of revenues, expenses, and changes in net position. Some leases include one or more renewal options which are at the Medical Center's discretion and if it is reasonably certain that the renewal options will be exercised by the Medical Center, the renewal options' payments and term are included in the Medical Center's measurement of the lease liability and right -to -use lease asset. Recently Issued Accounting Standards In May 2020, the GASB issued Statement No. 96, Subscription -Based Information Technology Arrangements (SBITAs), and clarified in GASB Statement No. 99 Omnibus 2022, which is effective for the fiscal year ended December 31, 2023. The Statement establishes uniform accounting and financial reporting requirements for SBITAs; improves the comparability of government's financial statements; and enhances the understandability, reliability, relevance, and consistency of information about SBITAs. A SBITA is a contract that conveys control of the right to use another party's IT software as specified in the contract for a period of time. The Medical Center only has short-term SBITAs and, therefore, this Statement did not have a material impact on the financial statements. In March 2020, the GASB issued Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment Arrangements, and clarified in GASB Statement No. 99, which is effective for the fiscal year ended December 31, 2023. This Statement clarifies the accounting and financial reporting surrounding these types of arrangements. The City owns the Medical Center and is managed by the Corporation with the only exchange being a management fee paid to the Corporation and, therefore, this Statement is not applicable to the Medical Center financial statements. In June 2022, the GASB issues Statement No. 101, Compensated Absences, which is effective for the fiscal year ending December 31, 2024. This Statement updates the recognition, measurement, and disclosure requirements for compensated absences in state and local governments. The Medical Center is evaluating the impact of this Statement. Revenue Recognition (a) Net Patient Service Revenues The Medical Center has agreements with governmental and other third -party payors that provide for payments to the Medical Center at amounts different from its established charges. Payment arrangements for major third -party payors may be based on prospectively determined rates, reimbursed cost, discounted charges, and per diem payments. Net patient service revenue is reported at the estimated net realizable amounts due from patients, third -party payors, and others for services rendered, including estimated retroactive adjustments under reimbursement agreements with third -party payors. Retroactive adjustments are accrued on an estimated basis in the period the related services are rendered and adjusted in future periods as final settlements are determined. Adjustments from finalization of prior year's cost reports and other third -party settlement estimates resulted in a decrease in net patient services revenues of $547 and $111 for the years ended December 31, 2023 and 2022, respectively. 9 (Continued) 108 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) The mix of net patient charges for the years ended December 31, 2023 and 2022, from significant third -party payors was as follows: Patient service charges 2023 2022 Commercial and other insurance 33 % 30 Medicare 17 13 Medicaid 50 57 Total 100 % 100 % Prior to 2021, the Medical Center received Medicaid disproportionate share incentive payments from the State of Alaska. As of December 31, 2022, $551 of these payments were included in other current liabilities in the statements of net position with the expectation that the State of Alaska would recoup this amount. As of December 31, 2023, the Medical Center removed this amount from other current liabilities as the State of Alaska decided to not recoup the excess incentive payments. The $551 was recognized in net patient service revenue in 2023. (b) Provision for Bad Debts The Medical Center provides for an allowance against patient accounts receivable for amounts that ultimately become uncollectible. The Medical Center estimates this allowance based on the aging of accounts receivable, historical collection experience by payor, and other relevant factors. There are various factors that can impact the collection trends, such as changes in the economy, which in turn have an impact on unemployment rates and the number of uninsured and underinsured patients, the increased burden of copayments to be made by patients with insurance coverage, and business practices related to collection efforts. These factors continuously change and can have an impact on collection trends and the estimation process used by the Medical Center. The Medical Center records a provision for bad debts in the period of services on the basis of past experience, which has historically indicated the portion of the bill for which the patient is financially responsible is not expected to be collected. The estimates made and changes affecting those estimates for the Medical Center for the years ended December 31, 2023 and 2022, are summarized below: 2023 2022 Changes in allowance for bad debts: Allowance for bad debts at beginning of year $ 1,798 2,052 Write-offs of uncollectible accounts, net of recmeries (3,766) (2,840) Provision for bad debts 3,655 2,586 Allowance for bad debts at end of year $ 1,687 1,798 10 (Continued) 109 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) (c) Charity and Unsponsored Community Benefit Costs The Medical Center has policies that provide for serving those without the ability to pay. The policies also provide for discounted sliding scale payments based on the income and assets of the person responsible for the bill. In addition to uncompensated care, the Medical Center also provides services that benefit the poor and others in the community it serves. Charity care is reported at cost and is determined by multiplying the charges incurred at established rates for services rendered by the Medical Center's cost -to -charge ratio. The cost of charity care provided by the Medical Center for the years ended December 31, 2023 and 2022, was $396 and $863, respectively. (4) Capital Assets Changes in capital assets for the years ended December 31, 2023 and 2022, are as follows: Balance, Balance, January 1, Changes in December 31, 2023 capital assets 2023 Capital assets, being depreciated/amortized: Movable equipment $ 1,146 652 1,798 Right -to -use lease assets 1,565 230 1,795 Total capital assets, being depreciated/amortized 2,711 882 3,593 Total capital assets at historical cost 2,711 882 3,593 Less accumulated depreciation/amortization for: Movable equipment Right -to -use lease assets (568) (368) (82) (650) (169) (537) Total accumulated depreciation/amortization (936) (251) (1,187) Total capital assets, net $ 1,775 631 2,406 (Continued) 110 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) Balance, January 1, Changes in 2022 capital assets Balance, December 31, 2022 Capital assets, being depreciated/amortized: Movable equipment $ 739 407 1,146 Right -to -use lease assets 947 618 1,565 Total capital assets, being depreciated/amortized 1,686 1,025 2,711 Total capital assets at historical cost 1,686 1,025 2,711 Less accumulated depreciation/amortization for: Movable equipment Right -to -use lease assets (391) (177) (568) (161) (207) (368) Total accumulated depreciation/amortization (552) (384) (936) Total capital assets, net $ 1,134 641 1,775 For the year ended December 31, 2023, financed purchases of $435 and related accumulated depreciation of $285 are included in capital assets. For the year ended December 31, 2022, financed purchases of $435 and related accumulated depreciation of $203 are included in capital assets. During the years ended December 31, 2023 and 2022, the City of Seward advanced funds to the Medical Center for costs related to constructed assets. The Medical Center is constructing these assets on behalf of the City of Seward. (5) Leases (a) Right -to -use Assets The Medical Center's right -to use lease asset and related accumulated amortization accounts for the fiscal years ended December 31, 2023 and 2022 is set forth below: Balance, Changes in Balance, January 1, right -to -use December 31, 2023 lease assets 2023 Right -to -use lease assets: Building $ 1,546 Equipment 19 230 1,776 19 Total right -to -use lease assets 1,565 230 1,795 12 (Continued) 111 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) Balance, Changes in Balance, January 1, right -to -use December 31, 2023 lease assets 2023 Less accumulated amortization for: Building $ (356) (163) Equipment (12) (6) Total accumulated amortization (368) (169) Total right -to -use lease assets, net Right -to -use lease assets: Building Equipment $ $ 1,197 (519) (18) (537) 61 1,258 Balance, Changes in Balance, January 1, right -to -use December 31, 2022 lease assets 2022 928 19 618 1,546 19 Total right -to -use lease assets 947 618 1,565 Less accumulated amortization for: Building (155) (201) (356) Equipment (6) (6) (12) Total accumulated amortization (161) (207) (368) Total right -to -use lease assets, net $ 786 411 1,197 (b) Lease liabilities Changes in lease liabilities during the fiscal years ended December 31, 2023 and 2022 are summarized below: Beginning Ending Current balance Additions Deductions balance portion Fiscal year ended: December31,2023 $ 1,270 300 (223) 1,347 245 December31,2022 817 618 (165) 1,270 113 13 (Continued) 112 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services - Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) (c) Lease maturities The following schedule shows future annual lease payments, for the next five years and in five-year increments thereafter, as of December 31, 2023, for both principal and interest: 2024 2025 2026 2027 2028 2029-2033 Total payments Principal Interest Total 245 59 304 147 53 200 116 47 163 127 41 168 139 34 173 573 60 633 $ 1,347 294 1,641 (6) Litigation and Contingencies The healthcare industry is subject to numerous laws and regulations from federal, state, and local governments. Compliance with these laws and regulations can be subject to future government review and interpretation, as well as regulatory actions unknown or unasserted at this time. Government monitoring and enforcement activity continues with respect to investigations and allegations concerning possible violations by healthcare providers of regulations, which could result in the imposition of significant fines and penalties, as well as significant repayments of patient services previously billed. Management is aware of certain asserted and unasserted legal claims and regulatory matters arising in the course of business. After consultation with legal counsel, management estimates that these matters will be resolved without material adverse effect on the Medical Center's future financial position, results of operations, or cash flows. (7) Related -Party Transactions (a) Transactions with the City In connection with the construction and operation of Seward Mountain Haven, the Medical Center earns additional reimbursement from Medicaid through the capital add -on rate. The City and the Medical Center have agreed on a formula to distribute the additional reimbursement to the City. In 2023 and 2022, $3,404 and $2,946, respectively, was transferred by the Medical Center to the City to pay debt service. The City made no transfers to the Medical Center to use at their discretion during the years ended December 31, 2023 and 2022, respectively. The Medical Center is not obligated to reimburse the City for transfers made in prior years. 14 (Continued) 113 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) In certain circumstances, the Medical Center acquires and constructs assets on behalf of the City. When this occurs, the City transfers funds to the Medical Center who acquires the asset and then transfers the asset back to the City after acquisition has been completed. These balances are reflected in the statements of net position — contractual basis in funds held for capital additions with an offsetting obligation to the City reflected in other long-term liabilities. As of December 31, 2023 and 2022, the Medical Center held $1,498 and $1,243, respectively, on behalf of the City for asset acquisition and recorded offsetting liabilities of $1,225 and $1,417, respectively, in 2023 and 2022. Additionally, as of December 31, 2023 and 2022, the Medical Center held $158 and $196, respectively, of other current assets purchased and costs incurred for construction of assets on behalf of the City, which will be transferred to the City upon completion. (b) Transactions with the Corporation (i) Payable to the Corporation The accounting, management, and human resource functions of the Medical Center are provided by the Corporation. All receipts and payments on behalf of the Medical Center are received or made by the Corporation and are recorded in the accompanying statements of net position — contractual basis. The amount payable to the Corporation has no set repayment terms and was $4,427 and $3,842 as of December 31, 2023 and 2022, respectively. (ii) Insurance Coverage The Medical Center is covered for professional and general liability insurance on an occurrence basis through the Corporation's self-insurance programs. The charge by the Corporation for annual insurance expense was $44 and $36 for the years ended December 31, 2023 and 2022, respectively, and was included in other operating expense on the statements of revenues, expenses, and changes in net position — contractual basis. (iii) Employee Benefits All employees are employed by the Corporation. The Medical Center is not liable for employee benefits including retirement plans and vacation and sick leave, except for the contribution allocated by the Corporation. The Medical Center's contribution to these retirement plans for the years ended December 31, 2023 and 2022, was $819 and $747, respectively, and was included in the employee benefits expense on the statements of revenues, expenses, and changes in net position — contractual basis. (8) Subsequent Events The Medical Center has performed an evaluation of subsequent events through April 29, 2024, which is the date these financial statements were available to be issued. 15 114 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Financial Statements December 31, 2023 and 2022 (With Independent Auditors' Report Thereon) 116 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Table of Contents Page Independent Auditors' Report 1 Financial Statements: Statements of Net Position — Contractual Basis 3 Statements of Revenues, Expenses, and Changes in Net Position — Contractual Basis 4 Statements of Cash Flows — Contractual Basis 5 Notes to Financial Statements 6 117 KPMG LLP Suite 2800 401 Union Street Seattle, WA 98101 Independent Auditors' Report The Board of Directors Providence Health & Services — Washington and the City of Seward: We have audited the financial statements of Providence Seward Medical Center (the Medical Center), a hospital owned by the City of Seward, Alaska (the City) and managed by Providence Health & Services — Washington (a Washington nonprofit corporation), which comprise the statements of net position — contractual basis as of December 31, 2023 and 2022, and the related statements of revenues, expenses, and changes in net position — contractual basis; and statements of cash flows — contractual basis for the years then ended, and the related notes to the financial statements. In our opinion, the accompanying financial statements present fairly, in all material respects, the contractual basis net position of the Medical Center as of December 31, 2023 and 2022, and the contractual basis changes in net position and contractual basis cash flows thereof for the years then ended in accordance with the financial reporting provisions of the Management and Operating Agreement between Providence Health & Services — Washington and the City (the Agreement) in note 2. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Medical Center and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter— Basis of Accounting We draw attention to note 2 of the financial statements, which describes the basis of accounting. As described in note 2 to the financial statements, the financial statements are prepared by the Medical Center on the basis of the financial reporting provisions of the Agreement, which is a basis of accounting other than U.S. generally accepted accounting principles, to meet the requirements of the Agreement. As a result, the financial statements may not be suitable for another purpose. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the financial reporting provisions of the Agreement. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting KPMG LLP a Delaware hm,ted liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. 118 from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Medical Center's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Medical Center's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Restriction on Use Our report is intended solely for the information and use of the Board of Directors and management of Providence Health & Services — Washington, the City, the State of Alaska Department of Health and Social Services, and Altman, Rogers & Co., and is not intended to be and should not be used by anyone other than these specified parties. Seattle, Washington April 29, 2024 ZPP (Cr LL1P 2 119 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services - Washington) Statements of Net Position - Contractual Basis December 31, 2023 and 2022 (In thousands of dollars) Assets 2023 2022 Current assets: Cash and cash equivalents $ 751 5,946 Accounts receivable, Tess allowance for bad debts of $1,687 in 2023 and $1,798 in 2022 10,581 5,471 Other current assets 1,125 506 Total current assets 12,457 11,923 Capital assets, net 2,406 1,775 Funds held for capital additions 1,498 1,243 Other Tong -term assets 65 77 Total assets Liabilities and Net Position $ 16,426 15,018 Current liabilities: Accounts payable $ 1,755 1,018 Accrued compensation 1,017 1,219 Payable to Providence Health & Services - Washington 4,427 3,842 Due to contractual agencies - 166 Current portion of lease liabilities 245 113 Other current liabilities 441 754 Total current liabilities 7,885 7,112 Other long-term liabilities Long-term lease liabilities Total liabilities 1,274 1,102 1,573 1,157 10,261 9,842 Net position: Net investment in capital assets 1,058 505 Restricted 45 54 Unrestricted 5,062 4,617 Total net position Total liabilities and net position See accompanying notes to financial statements. 6,165 5,176 $ 16,426 15,018 120 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Statements of Revenues, Expenses, and Changes in Net Position — Contractual Basis Years ended December 31, 2023 and 2022 (In thousands of dollars) 2023 2022 Operating revenues: Net patient service revenues, net of provision for bad debts $3,655 in 2023 and $2,586 in 2022 $ 29,520 29,525 Other revenues 266 509 Total operating revenues 29,786 30,034 Operating expenses: Salaries and wages 15,990 15,024 Employee benefits 3,417 3,407 Professional fees 71 169 Purchased services 3,199 3,236 Supplies 1,314 1,378 Depreciation and amortization 335 379 Other 1,059 1,070 Total operating expenses 25,385 24,663 Operating income 4,401 5,371 Nonoperating revenues — 306 Excess of revenue over expenses 4,401 5,677 Restricted contributions and other (8) 3 Change in net position before transfers 4,393 5,680 Transfers to the City of Seward (3,404) (2,946) Change in net position 989 2,734 Net position — beginning of year 5,176 2,442 Net position — end of year $ 6,165 5,176 See accompanying notes to financial statements. 4 121 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Statements of Cash Flows — Contractual Basis Years ended December 31, 2023 and 2022 (In thousands of dollars) 2023 2022 Cash flows from operating activities: Cash received for patient care $ 25,385 30,884 Cash received for other services 266 509 Cash paid to employees (19,609) (18,318) Cash paid to suppliers and others (7,465) (5,055) Net cash (used in) provided by operating activities (1,423) 8,020 Cash flows from noncapital financing activity: Transfers to City of Seward (3,404) (2,946) Net cash used in noncapital financing activity (3,404) (2,946) Cash flows from capital and related financing activities: Principal payments on financed purchase obligations (86) (92) Cash paid for principal and interest on leases (282) (233) Net cash used in capital and related financing activities (368) (325) (Decrease) increase in cash and cash equivalents Cash and cash equivalents, beginning of year (5,195) 4,749 5,946 1,197 Cash and cash equivalents, end of year $ 751 5,946 Reconciliation of operating income to net cash (used in) provided by operating activities: Operating income $ 4,401 5,371 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation and amortization 335 379 Provision for bad debts 3,655 2,586 Changes in operating assets and liabilities (9,814) (316) Net cash (used in) provided by operating activities $ (1,423) 8,020 See accompanying notes to financial statements. 122 (1) PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) Organization Providence Seward Medical Center (the Medical Center) is a hospital owned by the City of Seward, Alaska (the City) and managed by Providence Health & Services — Washington (a Washington nonprofit corporation) (the Corporation). The Medical Center is an acute care and long-term care facility located in Seward, Alaska. Effective October 8, 2008, the Corporation and the City entered into a Management and Operating Agreement (the Agreement) whereby the Corporation manages the Medical Center while all financial risks and rewards from the operations of the Medical Center remain with the City. The City will fund shortfalls at the Medical Center. The Medical Center property, including the facility, is owned by the City and is not recorded on the Medical Center's financial statements, and per the Agreement, the cost of such property is not charged to the Medical Center. Under the Agreement, the Medical Center pays only for directly identifiable administrative costs and overhead costs, up to a specified limit, attributable to the Medical Center. All management fees and costs reimbursed are included in purchased services in the accompanying statements of revenues, expenses, and changes in net position — contractual basis. The Medical Center pays a management fee to the Corporation according to the terms of the Agreement. Management fees were $898 and $856 for the years ended December 31, 2023 and 2022, respectively, and are included in purchased services in the accompanying statements of revenues, expenses, and changes in net position — contractual basis. (2) Summary of Significant Accounting Policies (a) Measurement Focus and Basis of Accounting The Medical Center reports as business -type activities, as defined by Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments. Business -type activities are those that are financed in whole or in part by fees charged to external parties for goods or services. The financial statements of the Medical Center are prepared in accordance with the Agreement between the Corporation and the City. Accordingly, the Medical Center's financial statements have been prepared using the economic resource measurement focus and the accrual basis of accounting in accordance with U.S. generally accepted accounting principles as prescribed by GASB, except the Medical Center does not include capital assets or depreciation expenses related to property, plant, and equipment of the Medical Center, purchased or constructed by the City. These financial statements also do not include long-term debt and related interest expenses related to the funding of purchase or construction of property, plant, and equipment by the City. These financial statements also exclude Management's Discussion and Analysis, which is required by GASB Statement No. 34. 6 (Continued) 123 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) Measurement focus indicates the type of resources being measured, such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. Under the accrual basis, revenues are recognized when earned and expenses are recorded when liabilities are incurred without regard to receipt or disbursement of cash. (b) Use of Estimates The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. (c) Cash and Cash Equivalents Cash and cash equivalents include cash and investments in highly liquid instruments with an original maturity of three months or less. Custodial credit risk for deposits is the risk that in the event of a financial institution failure, the Medical Center's deposits may not be returned. The bank deposits are held with financial institutions and are insured or collateralized. For the periods disclosed, the Federal Deposit Insurance Corporation insurance was $250. As of December 31, 2023 and 2022, $520 and $5,745, respectively, of the Medical Center's bank balance was subject to custodial credit risk. (d) Classification of Revenues and Expenses The Medical Center's financial statements of revenues, expenses, and changes in net position — contractual basis distinguish between operating revenues, expenses, nonoperating revenues, and capital contributions. Operating revenues, such as patient service revenue, result from exchange transactions associated with providing healthcare services — the Medical Center's primary business. Exchange transactions are those in which each party to the transaction receives and gives up essentially equal values. Nonexchange revenues are reported as nonoperating revenues. As the City reports the Medical Center as a blended component unit, nonexchange transactions between the two entities are reported as transfers in the statements of revenues, expenses, and changes in net position — contractual basis. Operating expenses are all expenses incurred to provide healthcare services, other than financing costs. (e) Capital Assets and Depreciation Capital assets (primarily movable equipment) are stated at cost. Improvements and replacements of plant and equipment are capitalized. Maintenance and repairs are expensed as incurred. The cost of the capital assets sold or retired and the related accumulated depreciation are removed from the accounts, and the resulting gain or loss is recognized at the time of disposal. The provision for depreciation is determined by the straight-line method, which allocates the cost of capital assets equally over their estimated useful lives. The estimated useful lives of movable equipment used by the Medical Center are 3 to 15 years. 7 (Continued) 124 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) (I) Net Position Net position of the Medical Center is classified in the following three components: (g) (i) Net Investment in Capital Assets This component of net position consists of capital assets net of accumulated depreciation and leases net of accumulated amortization. (ii) Restricted This component of net position consists of noncapital assets that must be used for a particular purpose, as specified by creditors, grantors, or contributors external to the Medical Center. When both restricted and unrestricted resources are available for use, generally it is the Medical Center's policy to use restricted resources first, and then unrestricted resources when they are needed. (iii) Unrestricted This component consists of all other funds available to the Medical Center that do not meet the definition of net investment in capital assets or restricted for capital acquisition. If expenses are incurred in excess of available funds the net position is reported as a deficit. Income Taxes The Medical Center is a division of the City, and is exempt from federal income taxes, except on unrelated business income, under Section 115(a) of the Internal Revenue Code. (h) Leases The Medical Center enters into noncancelable leases primarily for buildings and equipment. For leases with a maximum possible term of 12 months or less at commencement, the Medical Center recognizes expense based on the terms of the lease contract. For all other leases, the Medical Center recognizes a lease liability, which is recorded within current portion of lease liabilities and long-term lease liabilities in the statements of net position and a right -to -use lease asset, net of accumulated amortization at the present value of payments expected to be made throughout the lease term, which is recorded in capital assets, net. The Medical Center uses its estimated incremental borrowing rate based on information available at the commencement date of the lease in determining the present value of lease payments unless the rate that the lessor charges is known. Variable lease payments, other than those payments that depend on an index or rate or are fixed in substance, are excluded from the measurement of the lease and are expensed as incurred. Subsequently, the lease liability is reduced by the principal portion of lease payments made. Interest expense is recognized ratably over the contract term. The right -to -use lease asset is initially measured as the initial amount of the lease liability, plus lease payments made at or before the lease commencement date, plus any initial direct costs ancillary to placing the underlying asset into service, less any lease incentives received at or before the lease commencement date. Subsequently, the right -to -use !ease asset is amortized on a straight-line basis over the shorter of the !ease term or the useful life of the underlying asset, which is recorded within depreciation and amortization in the 8 (Continued) 125 (i) PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) statements of revenues, expenses, and changes in net position. Some leases include one or more renewal options which are at the Medical Center's discretion and if it is reasonably certain that the renewal options will be exercised by the Medical Center, the renewal options' payments and term are included in the Medical Center's measurement of the lease liability and right -to -use lease asset. Recently Issued Accounting Standards In May 2020, the GASB issued Statement No. 96, Subscription -Based Information Technology Arrangements (SBITAs), and clarified in GASB Statement No. 99 Omnibus 2022, which is effective for the fiscal year ended December 31, 2023. The Statement establishes uniform accounting and financial reporting requirements for SBITAs; improves the comparability of government's financial statements; and enhances the understandability, reliability, relevance, and consistency of information about SBITAs. A SBITA is a contract that conveys control of the right to use another party's IT software as specified in the contract for a period of time. The Medical Center only has short-term SBITAs and, therefore, this Statement did not have a material impact on the financial statements. In March 2020, the GASB issued Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment Arrangements, and clarified in GASB Statement No. 99, which is effective for the fiscal year ended December 31, 2023. This Statement clarifies the accounting and financial reporting surrounding these types of arrangements. The City owns the Medical Center and is managed by the Corporation with the only exchange being a management fee paid to the Corporation and, therefore, this Statement is not applicable to the Medical Center financial statements. In June 2022, the GASB issues Statement No. 101, Compensated Absences, which is effective for the fiscal year ending December 31, 2024. This Statement updates the recognition, measurement, and disclosure requirements for compensated absences in state and local governments. The Medical Center is evaluating the impact of this Statement. (3) Revenue Recognition (a) Net Patient Service Revenues The Medical Center has agreements with governmental and other third -party payors that provide for payments to the Medical Center at amounts different from its established charges. Payment arrangements for major third -party payors may be based on prospectively determined rates, reimbursed cost, discounted charges, and per diem payments. Net patient service revenue is reported at the estimated net realizable amounts due from patients, third -party payors, and others for services rendered, including estimated retroactive adjustments under reimbursement agreements with third -party payors. Retroactive adjustments are accrued on an estimated basis in the period the related services are rendered and adjusted in future periods as final settlements are determined. Adjustments from finalization of prior year's cost reports and other third -party settlement estimates resulted in a decrease in net patient services revenues of $547 and $111 for the years ended December 31, 2023 and 2022, respectively. 9 (Continued) 126 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) The mix of net patient charges for the years ended December 31, 2023 and 2022, from significant third -party payors was as follows: Patient service charges 2023 2022 Commercial and other insurance 33 % 30 % Medicare 17 13 Medicaid 50 57 Total 100% 100% Prior to 2021, the Medical Center received Medicaid disproportionate share incentive payments from the State of Alaska. As of December 31, 2022, $551 of these payments were included in other current liabilities in the statements of net position with the expectation that the State of Alaska would recoup this amount. As of December 31, 2023, the Medical Center removed this amount from other current liabilities as the State of Alaska decided to not recoup the excess incentive payments. The $551 was recognized in net patient service revenue in 2023. (b) Provision for Bad Debts The Medical Center provides for an allowance against patient accounts receivable for amounts that ultimately become uncollectible. The Medical Center estimates this allowance based on the aging of accounts receivable, historical collection experience by payor, and other relevant factors. There are various factors that can impact the collection trends, such as changes in the economy, which in turn have an impact on unemployment rates and the number of uninsured and underinsured patients, the increased burden of copayments to be made by patients with insurance coverage, and business practices related to collection efforts. These factors continuously change and can have an impact on collection trends and the estimation process used by the Medical Center. The Medical Center records a provision for bad debts in the period of services on the basis of past experience, which has historically indicated the portion of the bill for which the patient is financially responsible is not expected to be collected. The estimates made and changes affecting those estimates for the Medical Center for the years ended December 31, 2023 and 2022, are summarized below: 2023 2022 Changes in allowance for bad debts: Allowance for bad debts at beginning of year $ 1,798 2,052 Write-offs of uncollectible accounts, net of recoveries (3,766) (2,840) Provision for bad debts 3,655 2,586 Allowance for bad debts at end of year $ 1,687 1,798 10 (Continued) 127 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) (c) Charity and Unsponsored Community Benefit Costs The Medical Center has policies that provide for serving those without the ability to pay. The policies also provide for discounted sliding scale payments based on the income and assets of the person responsible for the bill. In addition to uncompensated care, the Medical Center also provides services that benefit the poor and others in the community it serves. Charity care is reported at cost and is determined by multiplying the charges incurred at established rates for services rendered by the Medical Center's cost -to -charge ratio. The cost of charity care provided by the Medical Center for the years ended December 31, 2023 and 2022, was $396 and $863, respectively. (4) Capital Assets Changes in capital assets for the years ended December 31, 2023 and 2022, are as follows: Balance, Balance, January 1, Changes in December 31, 2023 capital assets 2023 Capital assets, being depreciated/amortized: Movable equipment $ 1,146 652 1,798 Right -to -use lease assets 1,565 230 1,795 Total capital assets, being depreciated/amortized Total capital assets at historical cost Less accumulated depreciation/amortization for: Movable equipment Right -to -use lease assets 2,711 2,711 (568) (368) 882 3,593 882 3,593 (82) (650) (169) (537) Total accumulated depreciation/amortization (936) (251) (1,187) Total capital assets, net $ 1,775 631 2,406 11 (Continued) 128 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) Balance, January 1, Changes in 2022 capital assets Balance, December 31, 2022 Capital assets, being depreciated/amortized: Movable equipment $ 739 407 1,146 Right -to -use lease assets 947 618 1,565 Total capital assets, being depreciated/amortized Total capital assets at historical cost Less accumulated depreciation/amortization for: Movable equipment Right -to -use lease assets 1,686 1,686 (391) (161) 1,025 2,711 1,025 2,711 (177) (568) (207) (368) Total accumulated depreciation/amortization (552) (384) (936) Total capital assets, net $ 1,134 641 1,775 For the year ended December 31, 2023, financed purchases of $435 and related accumulated depreciation of $285 are included in capital assets. For the year ended December 31, 2022, financed purchases of $435 and related accumulated depreciation of $203 are included in capital assets. During the years ended December 31, 2023 and 2022, the City of Seward advanced funds to the Medical Center for costs related to constructed assets. The Medical Center is constructing these assets on behalf of the City of Seward. (5) Leases (a) Right -to -use Assets The Medical Center's right -to use lease asset and related accumulated amortization accounts for the fiscal years ended December 31, 2023 and 2022 is set forth below: Balance, Changes in Balance, January 1, right -to -use December 31, 2023 lease assets 2023 Right -to -use lease assets: Building $ 1,546 Equipment 19 230 1,776 19 Total right -to -use lease assets 1,565 230 1,795 12 (Continued) 129 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) Balance, Changes in Balance, January 1, right -to -use December 31, 2023 lease assets 2023 Less accumulated amortization for: Building $ (356) (163) Equipment (12) (6) Total accumulated amortization (368) (169) (519) (18) (537) Total right -to -use lease assets, net $ 1,197 61 1,258 Right -to -use lease assets: Building Equipment $ Balance, Changes in Balance, January 1, right -to -use December 31, 2022 lease assets 2022 928 618 1,546 19 19 Total right -to -use lease assets 947 618 1,565 Less accumulated amortization for: Building (155) (201) Equipment (6) (6) Total accumulated amortization (161) (207) (356) (12) (368) Total right -to -use lease assets, net $ 786 411 1,197 (b) Lease liabilities Changes in lease liabilities during the fiscal years ended December 31, 2023 and 2022 are summarized below: Beginning Ending Current balance Additions Deductions balance portion Fiscal year ended: December 31, 2023 $ 1,270 300 (223) 1,347 245 December31,2022 817 618 (165) 1,270 113 13 (Continued) 130 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services - Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) (c) Lease maturities The following schedule shows future annual lease payments, for the next five years and in five-year increments thereafter, as of December 31, 2023, for both principal and interest: 2024 2025 2026 2027 2028 2029-2033 Total payments Principal Interest Total 245 59 304 147 53 200 116 47 163 127 41 168 139 34 173 573 60 633 $ 1,347 294 1,641 (6) Litigation and Contingencies The healthcare industry is subject to numerous laws and regulations from federal, state, and local governments. Compliance with these laws and regulations can be subject to future government review and interpretation, as well as regulatory actions unknown or unasserted at this time. Government monitoring and enforcement activity continues with respect to investigations and allegations concerning possible violations by healthcare providers of regulations, which could result in the imposition of significant fines and penalties, as well as significant repayments of patient services previously billed. (7) Management is aware of certain asserted and unasserted legal claims and regulatory matters arising in the course of business. After consultation with legal counsel, management estimates that these matters will be resolved without material adverse effect on the Medical Center's future financial position, results of operations, or cash flows. Related -Party Transactions (a) Transactions with the City In connection with the construction and operation of Seward Mountain Haven, the Medical Center earns additional reimbursement from Medicaid through the capital add -on rate. The City and the Medical Center have agreed on a formula to distribute the additional reimbursement to the City. In 2023 and 2022, $3,404 and $2,946, respectively, was transferred by the Medical Center to the City to pay debt service. The City made no transfers to the Medical Center to use at their discretion during the years ended December 31, 2023 and 2022, respectively. The Medical Center is not obligated to reimburse the City for transfers made in prior years. 14 (Continued) 131 PROVIDENCE SEWARD MEDICAL CENTER (Managed by Providence Health & Services — Washington) Notes to Financial Statements December 31, 2023 and 2022 (In thousands of dollars) In certain circumstances, the Medical Center acquires and constructs assets on behalf of the City. When this occurs, the City transfers funds to the Medical Center who acquires the asset and then transfers the asset back to the City after acquisition has been completed. These balances are reflected in the statements of net position — contractual basis in funds held for capital additions with an offsetting obligation to the City reflected in other long-term liabilities. As of December 31, 2023 and 2022, the Medical Center held $1,498 and $1,243, respectively, on behalf of the City for asset acquisition and recorded offsetting liabilities of $1,225 and $1,417, respectively, in 2023 and 2022. Additionally, as of December 31, 2023 and 2022, the Medical Center held $158 and $196, respectively, of other current assets purchased and costs incurred for construction of assets on behalf of the City, which will be transferred to the City upon completion. (b) Transactions with the Corporation (i) Payable to the Corporation The accounting, management, and human resource functions of the Medical Center are provided by the Corporation. All receipts and payments on behalf of the Medical Center are received or made by the Corporation and are recorded in the accompanying statements of net position — contractual basis. The amount payable to the Corporation has no set repayment terms and was $4,427 and $3,842 as of December 31, 2023 and 2022, respectively. (ii) Insurance Coverage The Medical Center is covered for professional and general liability insurance on an occurrence basis through the Corporation's self-insurance programs. The charge by the Corporation for annual insurance expense was $44 and $36 for the years ended December 31, 2023 and 2022, respectively, and was included in other operating expense on the statements of revenues, expenses, and changes in net position — contractual basis. (iii) Employee Benefits All employees are employed by the Corporation. The Medical Center is not liable for employee benefits including retirement plans and vacation and sick leave, except for the contribution allocated by the Corporation. The Medical Center's contribution to these retirement plans for the years ended December 31, 2023 and 2022, was $819 and $747, respectively, and was included in the employee benefits expense on the statements of revenues, expenses, and changes in net position — contractual basis. (8) Subsequent Events The Medical Center has performed an evaluation of subsequent events through April 29, 2024, which is the date these financial statements were available to be issued. 15 132 ASSETS Current Assets: Cash and Cash Equivalents System Pooled Cash Patient Acounts Receivable Contractual Allowance Bad Debt Allowance Patient AR Other Receivables Supplies Inventory Affiliate Receivable Other Current Assets Total Current Assets Assets Whose Use is Limited: Property, Plant & Equipment: Property Plant Equipment Gross Accumulated Depreciation Property Plant Equipment Net Other Long Term Assets: Other Long Term Assets Total Other LT Assets Total Assets Providence Health SEWARD MEDICAL CENTER Balance Sheet (Whole Dollars) Reported as of June FY24 June FY24 December FY23 Actual Pr. Year 1,303,724 (4,806,667) 20,422,775 (8,327,960) (2,643,224) 1,620,469 53,552 (63,082) 7,559,587 1,409,225 (610,093) 309,855 (5,128, 979) 21,432,830 (7,505,815) (1,427,000) 729,188 61,759 247 (21,382) LIABILITIES & NET ASSETS Current Liabilities: Accounts Payable Accrued Compensation Deferred Revenue Unearned Premiums Payable to Contractual Agencies Other Current Liabilities Current Portion of Debt Total Current Liabilities 8,450,703 Long -Term Debt: Other Long Term Debt Long Term Debt 2,711,175 (568,068) 799,132 2,143,107 1,479,000 2,453,000 1,479,000 2,453,000 9,838,461 13,046,948 Total Other Long Term Liabilities Total Liabilities Net Assets: Unrestricted Net Assets Temporarily Restricted Net Assets Total Net Assets Total Liabilities and Net Assets BAL_Balance Sheet_WD_ERS Entity - 1000 Printed On 7/12/24 @ 3:27 PM Printed By alexis.d.anderson1@providence.org Page - 1 of 6 June FY24 December FY23 Actual Pr. Year 1,073,819 758,241 (271,600) (1,185, 093) 310,423 (76,359) 1,340,019 678,582 (92,986) (27,270) 324,072 (79,522) 609,431 2,142,895 100,651 131,255 100,651 131,255 1,226,053 2,582,526 1,936,135 4,856,676 7,856,344 8,144,990 45,982 45,282 7,902,326 8,190,272 9,838,461 13,046,948 133 Providence Health SEWARD MEDICAL CENTER Statement of Operations (Whole Dollars) Reported as of June FY24 INC_OP_STMT_WD_ERS Entity - 1000 Printed On 7/12/24 @ 3:27 PM Printed By alexis.d.andersonl@providence.org Page - 2 of 6 Month -To -Date Year -To -Date Actual Budget Variance 4,399,785 4,031,831 367,954 1,194,314 1,653,224 458,910 3,205,471 2,378,607 826,864 PY Actual 4,723,442 1,548,372 3,175,070 Actual Budget Variance PY Actual Gross Service Revenues 24,452,411 21,566,025 2,886,386 21,537,250 Deductions From Revenue 8,240,800 7,421,751 (819,049) 6,835,207 Net Service Revenue 16,211,611 14,144,274 2,067,337 14,702,043 38,858 22,489 16,369 12,140 Other Operating Rev 144,418 136,433 7,985 133,187 38,858 22,489 16,369 12,140 Total Other Operating Revenue 144,418 136,433 7,985 133,187 3,244,329 2,401,096 843,233 3,187,210 Net Operating Revenue 16, 356, 029 14,280,707 2,075,322 14,835,230 Expenses from Operations: 1,278,691 1,241,745 (36,946) 1,235,713 Salaries and Wages 8,093,376 7,688,162 (405,214) 271,363 290,956 19,593 290,290 Employee Benefits 1,530,497 1,748,806 218,309 744 5,189 4,445 4,782 Professional Fees Expense 10,875 29,745 18,870 79,824 98,729 18,905 62,347 Supplies Expense 687,390 542,992 (144,398) 260,230 296,441 36,211 290,612 Purchased Services Expense 1,780,998 1,798,406 17,408 - 510 510 - Purchased Healthcare Expenses - 3,096 3,096 8,682 8,514 (168) 12,726 Depr, Amort, and Interest 44,158 51,654 7,496 110,842 107,175 (3,667) 131,941 Other Expenses 819,269 650,046 (169,223) 2,010,376 2,049,259 38,883 2,028,411 Total Operating Expenses 12,966,563 12,512,907 (453,656) 1,233,953 1,233,953 351,837 882,116 351,837 882,116 1,233,953 351,837 1,158,800 Net Operating Income 7,598,960 1,771,604 26,469 649,737 1,580,792 3,277 (9,963) 608,330 12,229,206 3,389,466 1,767,800 1,621,666 2,606,024 1,158,800 Net Operating Income fully burdened 3,389,466 1,767,800 1,621,666 2,606,024 882,116 1,158,800 Non -Operating Gain (Loss) 1 Net Income fully burdened 1,242,635 360,352 882,283 1,171,526 EBIDA Fully Burdened 1,242,635 360,352 882,283 1,171,526 EBIDA Fully burdened includes allocated costs 3,389,466 1,767,800 3,433,624 1,819,454 3,433,624 1,819,454 1,621,666 2,606,025 1,614,170 2,596,062 1,614,170 2,596,062 224 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:oopm P&Z Meeting 6:OOpm Rescheduled - HPC WS & Mtg (Rescheduled to Sept 12) 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 1 135 8/6/2024 8:44 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) 6:00pm HPC WS & Mtg (Rescheduled from Aug 8) 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 2 136 8/6/2024 8:44 AM October 2024 October 2024 November 2024 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 1 2 6 7 8 9 10 11 12 3 4 5 6 7 8 9 13 14 15 16 17 18 19 10 11 12 13 14 15 16 20 21 22 23 24 25 26 17 18 19 20 21 22 23 27 28 29 30 31 24 25 26 27 28 29 30 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Sep 29 30 Oct 1 2 3 4 5 12:OOpm PACAB Mtg 7:00am Municipal Election Day 7:OOpm P&Z Meeting 6 7 8 9 10 11 12 I 1:oopm Canvass Board 13 14 15 16 17 18 19 7:OOpm CC Mtg (Council Chambers) 6:OOpm P&Z Work Session (Council Chambers) 12:OOpm PACAB WS I I Alaska Day 2:00pm PACAB Ad Hoc Heat Loop Mtg (Seward Community Library & 20 21 22 23 24 25 26 27 28 29 30 31 Nov 1 2 I7:00pm CC Mtg (Chamhers) Council Calendar 3 137 8/6/2024 8:44 AM