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HomeMy WebLinkAboutRES2026-067 Northern Compass Group LLCSponsored by: Sorensen CITY OF SEWARD, ALASKA RESOLUTION 2026-067 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT B TO THE PROFESSIONAL SERVICES AGREEMENT WITH NORTHERN COMPASS GROUP, LLC, FOR CONSULTING SERVICES FOR THE ELECTRIC DEPARTMENT IN AN AMOUNT NOT TO EXCEED $50,000 AND APPROPRIATING FUNDS WHEREAS, the City of Seward is evaluating governance, ownership, operational, and financial alternatives for the future of the Seward Electric Utility to determine which option will best meet the community's long-term needs for reliable, affordable, and sustainable electric service; and WHEREAS, the City retained Northern Compass Group, LLC, to provide communications, public outreach, community engagement, and consulting services related to the Seward Energy Future initiative; and WHEREAS, the firm has developed a thorough understanding of the project and the questions and concerns expressed by residents and stakeholders; and WHEREAS, this amendment will allow Northern Compass Group, LLC, to continue providing consulting and strategic communication services as the City continues evaluating all practical lir options for the future of the Seward Electric Utility; and WHEREAS, the term of Amendment B shall commence July 1, 2026, or upon approval, and continue through July 1, 2027 for an amount not to exceed $50,000. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. The City Council hereby authorizes the City Manager to execute Amendment B to the Professional Services Agreement with Northern Compass Group, LLC, in an amount not to exceed $50,000. Section 2. Funding in an amount not to exceed $50,000 is hereby appropriated by the Electric Fund unassigned account 15000-0000-3400 to the 15000-3000-7009 contracted services. Section 3. This resolution shall take effect immediately upon adoption. APPROVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA THIS 271h DAY OF JULY 2026. SUgAirileCOJA. re - Sue McClure, Mayor CITY OF SEWARD, ALASKA RESOLUTION 2026-067 Page 2 of 2 AYES: Warner, Draper, Barnwell, Calhoon, Osenga, McClure NOES: None ABSENT: Crites ABSTAIN: None Kris Peck City Clerk City Council Agenda Statement Meeting Date: July 27, 2026 To: City Council Through: Kat Sorensen, City Manager From: Taylor Crocker, Electric Operations Manager Subject: Resolution 2026-067: Authorizing the City Manager to Execute Amendment B to the Professional Services Agreement with Northern Compass Group, LLC, for Consulting Services for the Electric Department in an Amount Not to Exceed $50,000 and Appropriating Funds Background and justification: In 2025, the City of Seward initiated the process to evaluate governance, ownership, operational, and financial alternatives for the future of the Seward Electric Utility. Throughout this process, the City Council has supported an open, transparent, and inclusive public process that provides residents, ratepayers, businesses, and other stakeholders with meaningful opportunities to learn about the alternatives under consideration, ask questions, and provide informed feedback. As part of that effort, the City retained Northern Compass Group, LLC to provide strategic communications, public outreach, community engagement, and consulting services. Since the beginning of the engagement, Northern Compass has assisted the City with organizing public town halls and community meetings, developing and administering community surveys, preparing educational materials, and supporting the Seward Energy Future page on the City's website. They have also drafted newsletters, utility bill inserts, presentation materials, and other public communications, and assisted City leadership in communicating complex utility issues in a clear and understandable manner. These efforts have helped improve public awareness of the Seward Energy Future process while providing multiple opportunities for community members to ask questions, express concerns, and provide feedback. Throughout the public engagement process, residents have consistently expressed the importance of receiving factual, timely, and transparent information regarding the alternatives being evaluated before the City Council considers future decisions regarding the governance, ownership, operation, or management of the Seward Electric Utility. Amendment B continues the City's existing professional services agreement with Northern Compass Group, LLC to provide ongoing communications support, public outreach, stakeholder engagement, survey development, public meeting facilitation, educational materials, and strategic consulting services as the Seward Energy Future initiative progresses into its next phase. City Council Agenda Statement Continuing the City's relationship with Northern Compass Group provides continuity of service, preserves the institutional knowledge developed throughout the project, avoids unnecessary duplication of effort, and allows the City to build upon the significant work already completed. The proposed amendment authorizes professional services and reimbursable project expenses in an amount not to exceed $50,000. The City remains committed to a thoughtful, transparent, and inclusive evaluation process that provides the City Council and the public with the information necessary to make well-informed decisions regarding the future of the Seward Electric Utility. Fiscal Impact: X Yes — Amount: $50,000 Budgeted: No Funding Source: General Fund: Enterprise Fund: Grant: Other: Finance Director Signature: M. X X Yes No N/A Electric Fund 15000-3000-7009 5 Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: 3.7.1.3, 3.7.1.4 X Yes Attorney Signature: Not applicable Comments: In Administration Recommendation X Approve Other: Northern Compass Group 445 E 5th Avenue, Suite 201 Anchorage, AK 99501 TEL (907) 206-4808 FAX (907)206-5152 NorthernCompassGroup.com July 1, 2026 Kat Sorensen City Manager, City of Seward, Alaska PO Box 167 410 Adams Street Seward, AK 99664 Sent via electronic mail Re: Amendment B to Engagement to provide consulting services Dear Kat: Thank you for the opportunity to continue providing strategic advising, communications and general consulting services to the City of Seward. This letter sets forth Amendment B to the existing engagement under which the City of Seward, AK retains Northern Compass Group, LLC ("NCG") for consulting services related to Seward's energy future. Scope of Work NCG will provide the City of Seward with continued strategic advising, public process support, communications assistance and general consulting services on issues related to exploring options for future public utility ownership models, management options, governance alternatives and financial structures associated with each of these potential pathways. This work is intended to support the City of Seward as the City continues evaluating all practical options for the Seward electrical utility. As instructed, the work is designed to ensure an open, transparent process where City leadership, Council members, ratepayers and the public have access to information and options with many opportunities to ask questions and share opinions and concerns before any major decision is advanced. While stakeholders may have varying opinions on what to do regarding Seward's energy future, NCG will continue to work to help bring decision makers together, identify questions and concerns, provide communications support, and assist the City in determining which options are most viable by process of evaluation, public input and consensus building. Over the next 6 months tasks may include but are not limited to: • Regular meetings with City of Seward leadership, Seward Electric Department staff and project consultants. • Maintain a work plan and timeline for Council updates, outreach, surveys, financial review and public meetings. • Prepare updates, talking points, timelines, presentation materials and memos for City leadership and the Seward City Council. • Support survey development, survey promotion, review of survey results and preparation of public -facing survey summaries. • Develop and help execute a public information campaign before any advisory vote, Council decision or major next step. • Draft utility bill inserts, newsletters, website language, FAQs, public notices, emails, social media content and meeting handouts. • Support the Seward Energy Future webpage with content explaining the process, work completed to date and public materials. • Plan and support town halls, public meetings, listening sessions, financial review meetings and related activities. • Assist with plain -language summaries and side -by -side comparisons of governance, ownership, operational and financing options. • Support stakeholder outreach to ratepayers, business owners, residents inside and outside city limits, utility -sector representatives and other interested parties. • Prepare a year-end summary of work completed and recommended next steps for 2027 or any future Council process. • Other items as outlined in Attachment B. Compensation & Term The term of this Amendment B shall commence July 1, 2026, or upon approval, and continue through July 1, 2027. NCG will bill the client monthly at the rate of $5,000 until funds are expended. The total professional services fee for the 12-month period shall be $50,000, unless the scope is extended or modified by written agreement. It is estimated that additional costs for expended, travel, equipment rental or supplies are estimated to be between $5,000 and $7,000 total for the next 6 months. The monthly fee is for NCG's services. Any additional costs incurred outside of the consulting and executing work, including equipment rental, audio/visual support, mileage, travel expenses, lodging, supplies, printing, postage, advertising, meeting materials, refreshments, design or layout costs, survey vendor costs, or other project -related expenses, must be approved in advance by the City and will be billed for reimbursement separately. Thank you again for your trust in our firm. We look forward to continuing to work with you and your team. Sincerely, Northern Compass Group, LLC //,... a Mark Begich CEO, Northern Compass Group, LLC Read and approved by: City of Seward, Alaska Kat Sorensen City Manager, City of Seward, Alaska ATTACHMENT B PROPOSED WORK PLAN Seward Energy Future: Public Process, Communications and Council Support Prepared for: City Manager, Seward Electric Department and Seward City Council Term: July 1, 2026 through December 31, 2026 Goal: Continue the Seward Energy Future process in a manner that supports the City as they evaluate all practical options for the Seward Electric Department, provides clear public information, gathers meaningful ratepayer input, and supports an open and transparent process for residents, City leadership and the Seward City Council. Objectives • Evaluate the major governance, ownership, operating and financing options available to the City. • Educate ratepayers about the options, costs, risks, benefits and decision points. • Address public concerns around rates, reliability, governance, local control and representation. • Support the Seward City Council with clear, timely and understandable information. • Build trust through consistent, inclusive and transparent communications. • Prepare the City for future Council action, advisory vote, public decision or next phase of work, as directed. A. Project Coordination and Strategy • Coordinate regular project meetings • Prepare agendas, meeting summaries and materials needed to keep the process moving. B. Council Support • Prepare Council memos, work session materials, presentation outlines and talking points. • Summarize public input, survey results, financial review information and major decision points for Council. • Support Council discussions related to options, public process and next steps. C. Public Information and Communications • Draft copy for utility bill inserts, newsletters, website copy, emails, FAQs, public notices, social media language and meeting handouts. • Develop plain -language materials explaining rates, reliability, local control, representation and governance options. • Support a consistent public information campaign so ratepayers have the opportunity to understand the issues before being asked for input. D. Surveys and Community Feedback • Coordinate with the survey consultant on survey questions, timing, distribution and reporting. • Help ensure questions are clear, neutral and useful for measuring informed public opinion. • Prepare summaries of survey findings and themes for City leadership, Council and the public. E. Town Halls, Listening Sessions and Financial Review • Plan and support town halls, public meetings, small group financial review meetings and listening sessions as directed by the City. • Assist with meeting agendas, speaker notes, handouts, sign -in sheets, question cards, online access and follow-up summaries. • Help translate financial models, assumptions and ratepayer impacts into clear public information. F. Governance and Ownership Option Materials • NCG will support continued development of side -by -side materials and or presentations describing the options under review. Support materials that allow Council and the public to compare options G. Stakeholder Outreach • Maintain and update participant, ratepayer and stakeholder lists. • Support outreach to residents inside and outside city limits, business owners, community members and interested organizations. • Assist with outside speaker coordination and follow-up communications as needed. H. Proposed Timeline • July -August: Continue Council and staff coordination, prepare public information materials, support survey work, and assist with financial review planning. • September -October: Support Council work sessions, public meetings, stakeholder outreach, option comparison materials and survey/public feedback summaries. • November -December: Prepare year-end summary, document work completed, identify remaining questions and develop recommended next steps for 2027 or any future Council process. I. Evaluation and Tracking • Track survey participation, meeting attendance, public questions, website and communications needs, stakeholder feedback and recurring community concerns. • Adjust communications and outreach materials based on public response and direction from the City. • Provide a year-end summary of work completed under Amendment B.