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Home My WebLink About08282006 City Council PacketHappy Founder's Day August 28, 2006 City Council Chambers The City of Seward, Alaska City Council Meetin August 28 2006 7:30 p.m. Council Chambers Vanta Shafer Mayor Term Expires 2007 Willard E. Dunham Vice Mayor Term Expires 2006 Robert Valdatta Council Member Term Expires 2007 Robert Thomas Council Member Term Expires 2007 Steve Schafer Council Member Term Expires 2007 Doren M. Lorenz Council Member Term Expires 2006 Jean Bardarson Council Member Term Expires 2006 Clark Corbridge City Manager Jean Lewis City Clerk Brad Meyen Cheryl Brooking City Attorney 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. SPECIAL ORDERS, PRESENTATIONS AND REPORTS A. Proclamations and Awards B. Borough Assembly Report C. City Manager's Report D. Chamber of Commerce Report E. Planning and Zoning Commission Report F. Other Reports, Announcements and Presentations 1. Mile 0-8 update by DOT Project Engineer Allen Drake. 2. Historic Preservation Commission applicant Meredith Hershock ............................. Pg 4 3. Port and Commerce Advisory Board applicant Darryl Schaefenneyer ..........................Pg 6 4. Report on City's Goals and Objectives by City Manager Clark Corbridge. 5. CITIZENS' 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 2 minutes per speaker and 30 minutes total time for this agenda item.] 6. APPROVAL OF AGENDA AND CONSENT AGENDA [Approval of Consent Agenda passes all routine items indicated by asterisk (*). Consent Agenda items are not considered separately unless a council member so requests. In the event of such a request, the item is returned to the Regular Agenda] City of Seward, Alaska Council Agenda August 28, 2006 Page 1 7. PUBLIC HEARINGS A. Ordinances for public hearing and enactment 1. Ordinance 2006-07, Amending Seward City Code Parking Requirements 15.10.215 (0) Handicapped Parking To Ensure Compliance With The Americans With Disabilities Act(ADA).................................................................. 2. Ordinance 2006-08, Amending Seward City Code Section 4.05.025 (B) Stating The Order Of Placement Of Names Of Candidates On Ballots Will Be Randomly Determined By The Clerk And Not Rotated As The State Adopts For Their General Election....................................................................................Pg 23 B. Resolutions for public hearing 1. Resolution 2006-91, Authorizing The City Manager To Enter Into A Lease And Operating Agreement With The Chugach Regional Resources Commission And Terminating The Operating And Maintaining The Seward Mariculture Research Center And Shellfish Hatchery On The Site Described As Tract 1B, Waterfront Tracts Subdivision, Mariculture Addition, According To Plat 97-18, Seward Recording District, Third Judicial District, State Of Alaska, Excepting The Pedestrian Pathway.......................................................................Pg 28 8. NEW BUSINESS A. Resolutions * 1. Resolution 2006-92, Pledging A Contribution Of $2500 To The Proposed Statewide Methamphetamine Abuse Education Campaign............ • • • • • • • • • • • • • • • • • • • • • • • • • • • Pg 59 2. Resolution 2006-93, Authorizing The City Manager To Enter Into An Agreement With Nye Frontier Ford For The Purchase Of A 2006 Ford F250 Crew Cab 4x4 Truck, For An Amount Not To Exceed$28,710.....................................Pg 61 B. Other New Business Items * 1. Approval of the August 14, 2006 regular city council meeting minutes .......... Pg 65 *2. Appoint Meredith Hershock to the Seward Historic Preservation Commission for a term to expire May 2008. *3. Appoint Darryl Schaefermeyer to the Port and Commerce Advisory Board for a term to expire July of 2009. 4. Schedule a work session on planning and permitting. City of Seward, Alaska Council Agenda August 28, 2006 Page 2 5. Discuss and provide direction to Administration on Seward Marine Center dock and determine whether to appoint a committee or work group to review and develop options. 9. INFORMATIONAL ITEMS AND REPORTS (No action required) A. Providence Seward Medical Center Financials for July 2006..................Pg 77 10. COUNCIL COMMENTS 11. CITIZENS' COMMENTS [5 minutes per individual - Each individual has one opportunity to speak.] 12. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENT 13. ADJOURNMENT City of Seward, Alaska Council Agenda August 28, 2006 Page 3 e BUG i} CITY OF SEWARD, ALASKA 0FF1�y �L %�= . ` nlW APPLICATION FOR THE SEWARD HISTORIC PRESERVATION COMMISSION NAME: uw CE 60b �C STREET ADDRESS: 2 1 MAILING ADDRESS: v0. '�X HOME TELEPHONE: C1ca ) i� LENGTH OF RESIDENCY IN THE SEWARD AREA:-4 tFC '- PRESENLY EMPLOYED AS: List any special training, education or background such as grant writing, history, architecture, or archeology, which may help you as a member of the i Commission. . � � �-� { ,��-t-ct�-T -� 1-�'��rc' ��1i' Have you ever been involved in any aspect of historic preservation? If so, briefly describe your involvement: 1i i . ��1� y� `r � �Ef' �d'j �t1� h\vf t(1 �.� 00 i M-(/i i i1 t T�., r rf \� in, �%A=�Y 1\{�•a• ill � 1 \ ��3 \1� I, \i i; l�t �_ \41 %mil %.l 1 am specifically interested in serving on the Historic Preservation Commission because: �� A-��— 1\�'�[1P, 1�1 `�Pe�/^ 1' Have you ever served on a similar commission elsewhere? Yes or`No If so, where? And when? If appointed, are you willing to: • Do historic research? AYES NO • Work on preparing grant applications? Y S NO • Work on writing historic register nominations? AM NO • Attend historic preservation workshops? NO \ �; !) A-Ae.--�-tnk cw!5�- SIGNATURE -5/cl(o DATE &13 4 P.O. Box 2573 907-224-6623 Seward, AK 99664 828-403-5878 mereniki@ekit.com Meptedi+ti +-lewskock Experience 2003-present Renown Tours Seward, AK Marketing Manager Responsible for production and coordination of all ad materials that originate in Seward. Responsible for all website optimization and maintenance. • Control and administer the computer network. • Software utilized: RezWare, Adobe Creative Suite 2, and Microsoft Office products. 2002-2003 R.R. Donnelley and Sons Lancaster, PA Desktop Specialist • Responsible for preflighting all incoming files. • Prepared files for printing, including trapping, color management and editing. • Managed outsourcing to other companies. • Software utilized: Adobe- Photoshop 7.0, Illustrator 11, In -Design, Acrobat and ATM; Quark 5, Trapwise, and Macromedia Freehand. 2001-2002 Freelance Charlotte, NC Graphic Designer • Worked with clients to create advertising that suited their needs. • Software utilized: Adobe- Photoshop 5.5, Illustrator 9, Acrobat and ATM Quark 4, and Macromedia Freehand. 1999-2002 Profile Media Group Mint Hill, NC Graphic Designer/Software Specialist • Created ads for Chamber of Commerce members nationwide. • Maintained and updated software on kiosks installed in chambers. • Software utilized: Adobe- Photoshop 5.5, Illustrator 9, Acrobat and ATM Macromedia Freehand, and all Microsoft applications. Education 1999-2002 Central Piedmont Community College Charlotte, NC • A.A.S.- Graphic Arts and Imaging Technology • Certified in Screen Printing, and Desktop Publishing levels 1 and 2. l.. � 5 CITY OF SEWARD, ALASKA APPLICATION FOR THE PORT & COMMERCE ADVIS0 BOARD .AR tegL 5c hA€rrer)e no, s STREET ADDRESS Al.x iglu v MAILING ADDRESS: HOME PHONE: R841- 3S97 BUSINESS PHONE: FAX NUMBER: HOW LONG IN THE SEWARD AREA: 'S`� r S PRESENTLY EMPLOYED AS: c,cNg,.es4 List any the Boa. t►' (�'6,✓E..caC. i�.nv�f Have you ever been involved liLinv,ct�%— I am specifically interested in may held you�a memb�erGof in port operations? If so, briefly describe you involvement: ' �'--._ •,.�/ �'_ n.�.,.i`.ff_d.i^6wA"Kh /ilil^'i9'Y on the Port and Commerce r-Have you ever served on a similar board If so, where and when?`�° Board oFs <Sa)o - p'� Are you available for meetings at noon (second Wednesday of each month)? If appointed, are you willing to travel occasionally? ignatur Date j -lj, - a� A ,4.ry v 4%f 6 J � Sponsored by: Corbridge Introduction Date: August 14, 2006 Public Hearing Date: Enactment Date: CITY OF SEWARD, ALASKA ORDINANCE 2006-07 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE PARKING REQUIREMENTS 15.10.215 (o) HANDICAPPED PARKING, TO ENSURE COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT WHEREAS, the Planning and Zoning Commission has requested an amendment to the Parking Code; and WHEREAS, the accessibility parking requirements as required by the City Code are not in compliance with the Americans with Disabilities Act; and WHEREAS, providing proper dimensions for this type of parking will contribute to the orderly development of property within the community; and WHEREAS, amending the Seward City Code by adopting the parking requirements of the Americans with Disabilities Act will make the City of Seward's parking requirements consistent with Federal standards; and WHEREAS, the certified minutes and public records of the Planning and Zoning Commission proceedings related to this matter, are hereby attached as reference. NOW, THEREFORE, THE CITY COUNCIL FOR THE CITY OF SEWARD ORDAINS that: Section 1. The Seward City Code is hereby amended to read as follows: 1 S 10 21 S (o) Handicapped Parking Requirements is hereby amended as follows (Strikethroughs = deletions and are bold, Underline = additions and are bold): 8--25 — 4- 36--60 2- 68--90— 3- 90 izo 4— Over 120 -5--- (o) Accessible parking requirements All parking shall comply with the Americans with Disabilities Act. Section 2. The above recitals are incorporated herein by reference. Section 3. This ordinance shall take effect ten (10) days following enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, THIS DAY OF 92006. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, CMC City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor V Council Agenda Statement Date: August 14, 2006 Through: Clark Corbridge, City Manager (vL 8 -7 -0 b From: Donna Glenz, Acting Planner6L V Flay 10 b Agenda Item: Recommending Council Amendment of Seward City Code parking requirements § 15.10.215 (o) Handicapped Parking to ensure compliance with the Americans with Disabilities Act BACKGROUND & JUSTIFICATION: Staff and commissioners have received numerous inquiries from members of the public about the functionality of the present requirements relative to handicapped parking. Parking has been an ongoing concern of the Commission; parking is always addressed during the Conditional Use Permit process and was an action item in the 2020 Seward Comprehensive Plan (2006). The handicapped parking requirements in the Seward City Code do not require the same dimensions and level of detail as found in the parking requirements of the Americans with Disabilities Act (ADA). In order for the City Code to be in compliance with ADA, the Code needs to be amended to adopt ADA parking standards. Ordinance 2006-07 was presented via Planning and Zoning Commission Resolution 2006-07 on March 4, 2006, and recommended the City Council amend Seward City Code Parking Requirements. This resolution was addressed at the Commission's regular meeting and was postponed due to time constraints. Resolution 2006-07 and the proposed City Council Ordinance were then placed on the Agenda for May 4, 2006. The Commission discussed and amended the proposed Ordinance and postponed the Resolution until the July 6, 2006 Planning and Zoning Meeting. At their July 6, 2006 regular meeting, the Planning and Zoning Commission amended and passed Resolution 2006-07, recommending City Council amend Seward City Code §15.10.215 `(o) Handicapped Parking' to ensure compliance with the Americans with Disabilities Act. The following amendments are proposed: 1510 215 (o) Handicapped Parking Requirements is hereby amended as follows (Strikethroughs = deletions and are bold, Underline = additions and are bold): tj .. 8 25_ I- 26--60 - 60-90 - 3- 90--I20 `- (o) Accessible parking requirements All parking shall comply with the Americans with Disabilities Act. *(NOTE: As Amended at the May 4, 2006 and July 6, 2006 P&Z Meetings.) Staff recommends that no additions be made to the proposed ordinance, because the ADA standards act as a living document. When the ADA standards are amended in the years to come, this will require on -going codification of the City Code to match ADA's amended standards. Adding additional requirements also creates a more lengthy review process for the public, construction industry, staff, and property owners. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. FISCAL NOTE: NA p,,G, RECOMMENDATION: Council approve Ordinance 2006-07, amending the Seward City Code § 15.10.215 (o) Handicapped Parking to Ensure Compliance with the Americans with Disabilities Act. Z Sponsored by: Planning and Zoning Commission CITY OF SEWARD, ALASIKA PLANNING AND ZONING COMMISSION RESOLUTION 2006-07 A RESOLUTION OF THE SEWARD PLANNING AND ZONING COMMISSION OF THE CITY OF SEWARD, ALASKA, RECOMMENDING THAT THE SEWARD CITY COUNCIL AMEND SEWARD CITY CODE PARKING REQUIREMENTS 15.10.215 TO ENSURE COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT WHEREAS, the Planning and "Zoning Commission has requested an amendment be made to the Parking Code; and WHEREAS, the accessible parking requirements as required by the City Code are not in compliance with the Americans with Disabilities Act; and WHEREAS, providing proper dimensions for this type of parking will contribute to the orderly development of property within the community; and WHEREAS, amending the Seward City code by adopting the parking requirements of the Americans with Disabilities Act will make the City's parking requirements consistent with Federal standards; and WHEREAS, the public notification process has been complied with. NOW, THEREFORE, BE IT RESOLVED by the Seward and Planning Zoning Commission that: v Section 1. The Commission recommends Ordinance 2006-XX be forwarded to City Council for approval. Section 2. This resolution shall take effect immediately upon its adoption_ PASSED AND APPROVED by the Seward Planning and Zoning Commission this 6�' day of July, 2006. THE CITY OF SEWARD, ALASKA Marianna Keil, Chair Seward Planning and Zoning Commission Resolution 2006-07 Page 2 of 2 AYES: Anderson, Clark, Hohl, Keil, Roach', Smith, Strobel NOES: None ABSENT: None ABSTAIN: None ATTEST: Jean Lewis, CMC City Clerk (City Seal) LSD&131 PSIS* .A` QF SF ° ' 6 w s * OF 0°t►rt�eags�°s 12 P&Z Agenda Statement Meeting Date: July 6, 2006 Through: Clark Corbridge, City Manager From: Malcolm G. Brown, Planner Amended by: Donna Glenz, Acting Planner Agenda Item: Amending the Parking Code to ensure compliance with the Americans with Disabilities Act BACKGROUND & JUSTIFICATION: The Planning and Zoning Commission has been discussing amendments to the Parking Code requirements contained in the Seward City Code, 15.10.215. Staff and commissioners have received numerous inquiries from members of the public about the functionality of the present requirements. Parking has been an ongoing concern of the commission; parking is always addressed during the Conditional Use Permit process and was an action item in the 2020 Seward Comprehensive Plan (2006). The handicapped parking requirements in the Seward City Code do not require the same dimensions and level of detail as found in the parking requirements of the Americans with Disabilities Act (ADA). In order for the City Code to be in compliance with ADA, the Code needs to be amended to adopt ADA parking standards. The accompanying resolution and proposed ordinance were presented at the March 4, 2006 regular meeting and postponed due to time constraints. They were not on the agenda at the April 4, 2006 meeting due to not being posted as a public hearing item. Resolution 2006-07 and the proposed City Council Ordinance were placed on the Planning and Zoning Agenda of the May 4, 2006. The Commission discussed and amended the proposed Ordinance and Postponed the Resolution until the July 6, 2006 Planning and Zoning Meeting. P&Z Resolution 2006-07 and the proposed City Council Ordinance as amended are attached for review and approval. Commissioner Hohl requested at the May 4, 2006 Planning and Zoning meeting that staff include notes and a proposed code change she had submitted for a work session in September 2005. Please find these notes attached. The following amendments are being proposed: 1 S 10 21 S (o) Handicapped Parking Requirements is hereby amended as follows (Strikethroughs = deletions and are bold, Underline = additions and are bold): 13 Page 2 of 3 8-25 4- 26- 60— 2- 60--90— X-- an�0 4— Over 120 -5-- NOTE• As Amended at the May 4, 2006 P&Z Meeting: (o) Accessible parking All parking requirements shall comply with the Americans with Disabilities Act. Staff recommends that no additions be made to the proposed ordinance, due to the ADA standards being a living document. When the ADA standards are amended in the years to come, this will require deconfliction of the City Code and the ADA standards. Adding additional requirements also creates a more lengthy review process for the public, construction industry, staff and property owners. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (2006) X The Comprehensive Plan makes numerous mention of improving parking. 2. Strategic Plan (1999) — X The Strategic Plan does not address this issue. Note: A motion to approve Resolution 2006-07 was made by Commissioner Strobel and seconded by Commissioner Hohl. Resolution 2006-07, as amended remains on the table for discussion and adoption from the May 4, 2006 Planning and Zoning meeting. Page 3 of 3 RECOMMENDATION: Commission approve Resolution 2006-07, as amended, which recommends Council amend the Seward City Code Parking Requirements 15.10.215 to ensure compliance with the Americans with Disabilities Act. 15 City of Seward, Alaska Planning Commission Minutes July 6, 2006 Volume 6, Page 6 5 Other Reports, Announcements and Presentations Liaison from Seward Bear Creek Flood Service Area Board- None. Citizens' Comments on Any Subject except Those Items Scheduled For Public Hearing — Tim McDonald, inside the City, expressed concern with speeding traffic on Fourth Avenue between 151 National Bank and Peking Restaurant. He suggested speed bumps on this section of the street. Approval of Agenda and Consent Agenda Motion (Anderson/Rohl) Approve the Agenda and Consent Agenda Hohl added to New Business an Item D: Discussion of Planning and Zoning Commission Packet Delivery. Hohl added to New Business an Item C: Set work session topic for July 18, 2006. Motion Passed As Amended Unanimous Unfinished Business Items requiring a Public Hearing - Resolution 2006-07 recommending City Council amend Seward City Code Parking iRequirements, 15.10.215 to ensure compliance with the parking requirements of the Federal c Americans with Disabilities Act [postponed from the March 7, 2006, April 4, 2006 and May 4, 2006 Planning and Zoning Meetings] Glenz reviewed the history of this resolution and its accompanying ordinance. Glenz recommended approval. *[Motion (Roach'/Anderson) Approve Resolution 2006-07 recommending City Council amend Seward City Code Parking Requirements, 15.10.215 to ensure compliance with the parking requirements of the Federal Americans with Disabilities Act] *Note: This motion was made at the March 7, 2006 Planning and Zoning Meeting. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. No one requested to be heard and the public hearing was closed. City of Seward, Alaska Planning Commission Minutes July 6, 2006 Volume 6, Page 6 6 In response to Anderson, Hohl clarified that modifying the Building Code to match ADA compliance would not fall under the Planning and Zoning Commission's prerogative. In response to Hohl, Glenz stated that staff did not currently review for ADA compliance in individual parking lots, but did refer the plan submitters to the ADA requirements for compliance. Glenz stated that once this was codified, then staff would review plans with the specified requirements as they were submitted. Hohl pressed to understand how staff would know what requirements to review. Glenz stated that staff would be expected to research and know what the requirements were. In response to Anderson, Glenz noted that the City had been working with Jim Brady from the Independent Living Center regarding the City's building and parking ADA requirements. Glenz also noted that this proposed resolution brought the City Code into compliance. She clarified that bringing City buildings and parking lots into compliance with the ADA was a separate issue from what was in front of the Commission. Anderson stressed the importance of the City complying with code requirements. She inquired as to what the grievance procedure in these cases would be. Corbridge noted there was not a current specific grievance procedure in City Code to address ADA requirements. Smith discussed the importance of ADA compliance. Strobel noted her concerns with the sidewalk in front of the Senior Center. Corbridge clarified that ADA compliance was required throughout the current DOT project, and administration would follow up on the issue. Hohl declared that she currently volunteered for the Independent Living Center, had worked there in the past, and asked for a ruling from the Chair if she had a conflict of interest. The Chair ruled that Hohl did not have a conflict of interest. Clark commented that Building Code Requirements and Parking Code Requirements were two separate issues. He noted that ADA requirements superseded City Code and Administration had brought this forward to bring our City Code into compliance. Motion (Hohl /Anderson) Move `requirements' to follow `(o) Accessible parking' and have the line continue as, `All parking shall comply...' 17 City of Seward, Alaska Planning Commission Minutes July 6, 2006 Volume 6, Page 67 Motion Passed Motion Passed New Business Items requiring a Public Hearing Unanimous Yes: Anderson, Clark, Hohl, Keil, Roach', Smith, Strobel No: None Resolution 2006-17 recommending City Council and the Kenai Peninsula Borough approval of the Replat of Lot 17A, Block 9 and Lots 1 and 2, Block 4, Original Townsite of Seward, including: Vacation of the portion of Washington Street located between Fifth Avenue and the East boundary of the alley located 100 feet to the West; including any associated utility easements; and adding an additional twenty (20) feet to the East side of the alley between Washington Street and Railway Avenue Corbridge introduced the Mary Lowell Center Partners and Bill White, Senior Planner, USKH, Inc. White presented the Mary Lowell Center Traffic Impact Analysis Preliminary Review of the Results and Conclusions. In response to a question from Smith, White stated that there would be 180 visitors per hour that would break down to 1 walking visitor to 1 automotive visitor to 1 public transportation visitor. This was the formula they used to arrive at approximately 60 parking spots needed at the Center. White noted that turnover durations were part of the equation. Anderson asked if White compared SeaLife Center visitor/parking numbers to their results, White answered that they had questioned the Mary Lowell Center Partners and used their judgment. White stated that the amount of parking spaces recommended in the study would accommodate the visitor parking needs for a majority of the days of the year. There would be a few `high -tide' times where overflow parking would be needed. In response to Hohl, White explained that a vehicle occupancy rate for facilities of this nature was 2.5 while an occupancy rate for restaurants was 1.5. He also described the peak time at the Mary Lowell Center in the morning, where there would be traffic congestion of 20 seconds at Fourth Avenue and Adams Street. Hohl noted the numbers in the traffic study seemed flawed. She commented on the alley being dedicated one-way Northbound and the problems trucks would encounter going uphill. In response to Roach', White clarified that the counts were collected in June 2004. In response to further questions, White would be taking concerns and comments from tonight's meeting and working those into the final report. White disclosed that the morning peak time was developed from counts taken from the State of Alaska study. City of Seward, Alaska Planning Commission Minutes May 4, 2006 Volume 6, Page 4 8 Motion Passed Unanimous Consent Hohl expressed thoughts of the neighbors concerns over increased traffic within the alley. Motion (Hohl/Strobel) Amend Resolution 2006-12, Add a new Condition number 5; "Applicant is encouraged to work with the neighboring property owners to mitigate traffic impacts in the alley." Anderson stated she did not feel the amendment was necessary. Motion Passed Yes: Clark, Strobel, Smith, Hohl, Keil No: Anderson Hohl noted a "housekeeping" change, stating an extra letter "D" was located in the margin of Section I. item C. Vote on the main motion as amended Motion Passed Unanimous Unfinished Business Items requiring a Public Hearing Resolution 2006-07 recommending City Council amend Seward City Code Parking Requirements, 15.10.215 to ensure compliance with the parking requirements of the Federal Americans with Disabilities Act [postponed from the March 7, 2006 and April 4, 2006 Planning and Zoning Meetings] Brown noted the current Seward City Code was not in compliance with the Federal Americans with Disabilities Act (ADA). He stated the recommendation of staff was to delete the current section 15.10.215 item (o) and replace it with a new item (o) to read "Accessible parking. All parking requirements of the Americans with Disabilities Act shall be complied with". Keil stated the sentence contained poor grammar usage. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. No one requested to be heard and the public hearing was closed Motion (Strobel/Hohl) Approve Resolution 2006-07 Anderson voice strong concerns with the current accessible parking provided around the community. She felt it was impractical to change the code and expect parking to be changed. 19 City of Seward, Alaska Planning Commission Minutes May 4, 2006 Volume 6, Page 4 9 Smith reiterated the change to the City Code was to bring the code into compliance with current federal regulations. Motion (Keil/Hohl) Amend Resolution 2006-07, Change to read "All parking requirements shall comply with the Americans with Disabilities Act" Motion Passed Unanimous Consent Hohl stated she had provided a lay -down of the Americans with Disabilities Act Accessibility Guidelines and she had also supplied a more detailed code revision. She noted she was disappointed staff had not provided the detailed code change for the Commission. Anderson voiced concerns with the current City ADA parking. Smith supported the staff code change recommendation; he felt the direction the commission had expressed was to change the code to comply with the ADA so that as the ADA requirements changed the City code remained current. Motion (Anderson/Rohl) Postpone Resolution 2006-07 until July 6, 2006 regular meeting. The Commission discussed the postponement. Smith stated action needed to be taken to bring the City code into compliance with the Federal regulations, and that current non -conforming areas should be addressed for change in the ADA Transaction Plan. Hotel stated she did not support waiting until the July meeting. Motion (Rohl Motion died for lack of second Motion Passed Commission requested a 5-minute recess Unfinished Business - None New Business Amend the amendment to Postpone Resolution 2006-07 until June 6, 2006. Yes: Anderson, Clark, Strobel, Keil No: Rohl, Smith Resolution 2006-13 recommending Kenai Peninsula Borough approval of preliminary replat of Lots 13-15, Block 11, Original Townsite of Seward, Wenger Replat 20 City of Seward, Alaska Planning Commission Minutes March 7, 2006 Volume 6, Page 27 Anderson supported developing the area as a park and not allowing it to be used as a campground. Motion Passed Motion (Smith/Strobel) Yes: Anderson, Strobel, Smith, Roach', Keil No: Clark Amend Resolution 2006-06, If the Long Term Care Facility is not constructed within four (4) years the parcel, Lot 11A, addressed in the resolution shall revert back to Park Zoning. Clark stated once the Council changed the Zoning on a piece of property he did not feel the change could revert back to previous zoning without going through the entire public process. Anderson felt even if the facility was not built on the site that there was a higher and better use for the property than Park Zoning. Motion Failed Motion (Smith/Strobel) Motion Passed Vote on Resolution 2006-06, as amended Motion Passed 10 Minute Break Yes: Strobel, Smith, Roach' No: Anderson, Clark, Keil Amend Resolution 2006-06, Ordinance, (page 22 of the packet), the 7te Whereas; change the word "can" to wHL Unanimous Unanimous Resolution 2006-07 recommending City Council amend Seward City Code Parking Requirements, 15.10.215 to ensure compliance with the parking requirements of the Federal Americans Disabilities Act Corbridge stated the recommendation to change the Seward parking code was a type of housekeeping matter to bring the City Code into compliance with the Federal mandates of the Americans with Disabilities Act. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. No one requested to be heard and the public hearing was closed. 21 City of Seward, Alaska Planning Commission Minutes March 7, 2006 Volume 6, Page 2 8 Motion (Roach'/Anderson) Approve Resolution 2006-07 Motion (Roach'/Smith) Postpone Resolution 2006-07 until the April 4, 2006. Roach' noted Commissioner Hohl had requested the Commission postpone Resolution 2006- 07 until she was available to comment. Request for Unanimous Consent Motion Passed Unanimous Consent Resolution 2006-08 amending Conditional Use Permit, issued by P&Z Resolution 97-03 to allow the Seward Association for the Advancement of Marine Science (SAAM) (commonly known as Alaska SeaLife Center) to install and operate a dock for charter boat operation Corbridge stated the job before the Commission was to submit findings and determine what mitigation was necessary to ameliorate anticipated impacts for both the immediate area and the community at large. Once the mitigation findings were made to the current Conditional Use Permit, administration recommended approving the resolution. Notice of public hearing being posted and published as required by law was noted and the public hearing was opened. Sharon Anderson, Alaska SeaLife Center Board member living in California. She stated she was to work with the PORTICO group to develop initial plans for a long-term plan for the Alaska SeaLife Center. Requested the approval and support of the Commission in the SeaLife Center projects. Ned Smith, Alaska SeaLife Center Board member living in California. Urged the Commission to support the proposed "on the water program" of the Alaska SeaLife Center. Tanya Sandefur, inside the City. Noted she had called the Alaska SeaLife Center and had spoken with an employee in the administration office (Nancy Anderson) and was told that SAAMS no longer existed. Sandefur requested the question of who was SAAMS be cleared up before any lease move forward. She voiced concern with the City supporting and allowing a "non-profit" to compete directly with local private enterprise. Requested the Commission postpone this resolution. Dianne Dubuc, inside the City. She owns and operates Alaskan Saltwater Charters. She voice strong concerns against Resolution 2006-08 and 09. She noted that as a non-profit, the Alaska SeaLife Center was not obligated to collect or pay City or Borough sale tax. She spoke against the Alaska SeaLife Center plan to partner with a for profit company to provide water tours. She questioned the $3.50 per person tax initiated January 2006. If the operation was allowed to move W Sponsored by: Clerk Introduction: August 14, 2006 Public Hearing: August 28, 2006 Enactment: August 28, 2006 CITY OF SEWARD, ALASKA ORDINANCE 2006-08 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE SECTION 4.05.025 (B) STATING THE ORDER OF PLACEMENT OF NAMES OF CANDIDATES ON BALLOTS WILL BE RANDOMLY DETERMINED BY THE CLERK AND NOT ROTATED AS THE STATE ADOPTS FOR THEIR GENERAL ELECTIONS WHEREAS, this ordinance change allows for candidate names on ballots to be selected randomly by the clerk instead of rotated as the state law requires; and WHEREAS, our city code states ballots will be rotated as prescribed in AS 15.15.030 (6); and WHEREAS, election changes in HB 94 in 2005 changed the wording of AS 15.15.030(6) from "randomly determined" to "shall rotate"; and WHEREAS, the city of Seward has never rotated their ballots in the past; and WHEREAS, all municipalities on the Kenai Peninsula Borough randomly select their names for ballots; and WHEREAS, to require candidate names on city ballots to be rotated requires separate programming which is costly and may not be possible with the election software upgrade occurring this summer in the borough; and WHEREAS, Seward precincts are included in the computer program used by the Kenai Peninsula Borough to prepare and count ballots; and WHEREAS, this "housekeeping" change will continue election practices already in place, allow uniformity on the peninsula, allow for ballots to continue being produced locally; and puts the city in compliance with state statute. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Agenda Statement Meeting Date: August 14, 2006 To: Mayor, City Council From: Jean Lewis, City Cle A� Agenda Item: Ordinance change for ballot rotation BACKGROUND & JUSTIFICATION: This is somewhat of a "housekeeping" code change. Our city code now states that names of candidates shall appear on the ballot in rotated positions as prescribed in AS 15.15.030(b) for state elections. The wording of that state statute changed from saying "randomly determined" by the director to, "shall rotate." Since I have been told the city has never rotated their ballots in the past, and names have been randomly selected and placed on ballots in the 4 years of this city clerk's tenure, a minor change in this particular city code section would allow the city to comply with the state requirements and continue the same consistent election practices that are being conducted on the Kenai Peninsula now. The city would still follow state statutes for elections, it would just not have to rotate the ballots which is costly and not necessary for our city elections. Other peninsula municipalities are changing their codes accordingly. If we did not make this code change, Seward would incur higher costs. Ballot printing is now done locally and rotating ballots would unnecessarily increase costs to have them printed out of area, add more printing costs, and would make Seward not compatible with Borough election software, thus causing other issues and problems. A copy of the city code, old and new state statute wording of 15.15.030(6), and samples of what rotated ballots are, is attached. INTENT: To allow the city clerk to randomly select the order of which the candidate's names will appear on city ballots and not be rotated as the state requires. CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: Being required to rotate ballots would not only increase costs unnecessarily for ballot printing, but may also exclude Seward from being compatible with the election software upgrade occurring this summer in the Borough. Allowing the clerk to randomly select candidate names also keeps the ability to produce ballots locally, thus saving additional costs. Approved by Finance Department: RECOMMENDATION: Introduce and enact Ordinance 2006-08, to allow continued practices, peninsula uniformity and state statute compliance. 24- CITY OF SEWARD, ALASKA ORDINANCE 2006-08 Section 1. Seward City Code Section 4.05.025 (B) is amended to read as follows: StFikeeut- = delete Bold Italics = new All candidates for the same office shall be shown on one ballot. The title of each office to be filled shall be followed by the printed names of all candidates for that office and provision shall be made for write-ins equal in number to the positions to be filled. The names of candidates shall be printed as they appear upon the petitions except that any honorary or assumed title or prefix shall be omitted, but may include in the candidates name, nickname or familiar form of a proper name of the candidate. The words "Vote for not more than ", with the appropriate number replacing the blank, shall be placed before the lists of candidates for each office. Names of candidates shall appear on the ballot . in the same order in each section on each ballot used in that election. However, the order of placement of the names of the candidates on the ballot for each office shall be randomly determined by the clerk. Section 2. This ordinance shall take effect 10 days following its enactment. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th day of August, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis City Clerk (City Seal) § 4.05.020 ELECTIONS designated as chairman and shall be primarily responsible for administering the election in that precinct. The city clerk is the election supervisor and may appoint up to three election clerks at any polling place where they are needed to conduct an orderly election and to relieve the election judges of undue hardship. All election judges and clerks, before entering upon their duties, must subscribe to the oath required of all public officers by the constitution of the State of Alaska in the manner prescribed by the clerk. If any appointed election official is not able or refuses to serve on election day, the clerk may appoint a replacement for that official. (Ord. 527, 1984) 4.05.020 Ballot propositions --clarity; conciseness. A. All ballot propositions shall be stated in a concise and clear language to avoid verbosity and with the object of informing and advising the voter of the issue in a clear and forthright manner. All ballot propositions shall be stated in the affirmative and not the negative so that a "yes" vote will always mean that the voter approves of the affirma- tive of a position and not the negative; and a "no" vote disapproves the affirmative statement of an issue. Ballot propositions shall not be used to obtain a negative result by the casting of a "yes" vote. Simple sentences and words shall be used in preference to complex or compound sentences and words, with the object of making ballot propositions understandable to the average reader. B. The city council may direct the clerk to prepare a concise informational summary for the purpose of explaining complicated ballot propositions. (Ord. 527, 1984) 4.05.025 Ballots --form. A. Ballots shall be prepared in the manner prescribed for state elections, insofar as such requirements are applicable to nonpartisan elections. The ballots shall be numbered in series, the number being placed in an area set off by perforations for ease of removal and on a portion of ti-je ballot that can be seen when the manner in which the ballot is marked is concealed from view. B. All candidates for the same office shall be shown on one ballot. The title of each office to be filled shall be followed by the printed names of all candidates for that office and provision shall be made for write-ins equal in number to the positions to be filled. The names of candidates shall be printed as they appear upon the petitions except that any honorary or assumed title or prefix shall be omitted, but may include in the candidate's "Vote name any nickname or familiar form of a proper name of the candidate. The words v for not more than " with the appropriate number replacing the blank, shall be placed before the lists of candidates for each office. Names of candidates shall appear on the ballot in rotated positions prescribed in AS 15.15.030(6) for state elections. C. Following the offices and candidates there shall be placed on the ballot, or on separate ballots as the clerk may determine, all propositions or questions to be voted on. The words "YES" and "NO" shall be placed below the statement of each proposition or question. The clerk shall determine the number of ballots to be used to present all offices, propositions and questions to the qualified voter. Supplement No. 98-1 City of Seward 114 11198 20 State of Alaska - Division of Elections Official Ballot House District 1 US.Representative Governor -or Lt.- Governor , 0 Apple, Joe O Arctic, Jones 0 Banana, Mary 0 Barrow, Margaret 0 Cantaloupe, Susie 0 caribou, Jamie 0 Jackson, Henry 0 Darby, Meghan 0 Wakefield, Sandie )OCAl1 State House'.DistrietA 0 Jack, Shelly 0 Queen, Whitney 0 King, Joseph State of Alaska - Division of Elections Official Ballot House District 2 US Representative Governor or Lt. Governor 0 Banana, Mary 0 Barrow, Margaret 0 Cantaloupe, Susie 0 caribou, Jamie 0 Apple, Joe 0 Arctic, Jones 0 Darby, Meghan Glenn, Marty 0 Wakefield, Sandie I 0 Arrow, Don (O 0 3ackson, Henry 0 Seward, Doreen State of Alaska Division of Elections Official Ballot House District 3 0 Cantaloupe, Susie 0 Apple, Joe 0 Banana, Mary 0 O'Malley, Grace 0 Minnesota, Rachel 0 Abbott, Mable 0 Caribou, Jamie 0 Arctic, Jones 0 Barrow, Margaret ig) The general election ballot shall be designed -with the position of names of the candidates set out in the same order in each section on each ballot used in a house district. However, the order of placement of the names of the candidates for each office shall be randomly determined by the director for ballots printed for use in each house d.lStrlet. _W) The names of the candidates for each office sha11 be set out in the same order o: -- ballots printed for use in each house district. The director shall randomly determine th { �, e Qfder of the names of the candidates for state representative for. each house district. Th dn'ector shall rotate the order of placement of the names of candidates for governor 0 •lieutenant governor, United States senator, United States representative, and stat Jncwtics a , senator on the ballot for each house district. 27, ) Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-91 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AND OPERATING AGREEMENT WITH THE CHUGACH REGIONAL RESOURCES COMMISSION AND TERMINATING THE OPERATING AGREEMENT WITH THE QUTEKCAKNATIVE TRIBE FOR OPERATING AND MAINTAINING THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY ON THE SITE DESCRIBED AS TRACT 1B9 WATERFRONT TRACTS SUBDIVISION, MARICULTURE ADDITION, ACCORDING TO PLAT 97-189 SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA, EXCEPTING THE PEDESTRIAN PATHWAY WHEREAS, the City is the owner of real property ("Property") located in the City of Seward, Alaska; and WHEREAS, the City, as Lessor, leased the Property to the University of Alaska (the "University") as Lessee from July 1,1970 through June 30, 2069, under the conditions of that Lease Agreement dated March 7,1991, recorded April 8,1991, at Book 60, Page 776 in the Records ofthe Seward Recording District, State of Alaska, as amended (the "University Lease"); and WHEREAS, the University uses a portion of the Property for the University of Alaska, Fairbanks School of Fisheries and Ocean Sciences, Institute of Marine Science, Seward Marine Center ("Seward Marine Center"); and WHEREAS, under a certain sublease dated October 2, 1995, the University subleased a portion of the Property (the "Site" as defined in the heading above) to the Alaska Department of Fish and Game to construct, operate and maintain a Mariculture Production Facility ("MPF") and Mariculture Technical Center ("MTC"); and WHEREAS, the purpose of the MPF is to produce seed stocks for Alaska aquatic farms and the purpose of the MTC is to focus on mariculture research in Seward; and WHEREAS, the Alaska Department of Fish and Game, the City of Seward, and Qutekcak Native Tribe ("CRCC") entered into mutual agreements in December 1997 for the operation of the MPF and to cover maintenance costs at the MTC while producing high quality spat and aquatic plant seed stock for the Alaska mariculture industry; and WHEREAS, QNT began operating the Facility in1997; and 26 CITY OF SEWARD, ALASKA RESOLUTION 2006-91 WHEREAS, in May 2003 the improvements were conveyed to the City, the Alaska Department of Fish and Game terminated its sublease with the University and its agreement with the City, and the City entered into a new sublease with the University and agreement with QNT for operating the facility; and WHEREAS, in December 2004 QNT, with the consent of the City, assigned its rights to operate the facility to CRRC on a temporary basis and the parties now desire to release QNT; and WHEREAS, the City has determined that entering into the Lease and Operating Agreement with CRRC, in substantially the form presented at this meeting, is in the public interest and will serve a public purpose by continuing to assist shellfish research and development of the shellfish farming industry and promoting jobs and economic development locally; and WHEREAS, the City has determined that the facility complements the adjacent SeaLife Center and Seward Marine Center by providing additional research and educational opportunities in Seward; and WHEREAS, a public hearing meeting the requirements of Seward City Code §7.05.125 was held on August 28, 2006. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to enter into a lease and operating agreement with CRRC in substantially the form as presented at this meeting to lease, operate and maintain the Seward Mariculture Research Center and Shellfish Hatchery, and to concurrently terminate the operating agreement with QNT. Section 2. The recitals above are incorporated herein by reference. Section 3. This resolution shall take effect 30 days after passage and posting. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28`h day of August, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor 29 COUNCIL AGENDA STATEMENT Meeting Date: August 28, 2006 Through: Clark Corbridge, City Manager / j D—ZY"Q From: Agenda Item: Kirsten Vesel, Assistant City Manager yg_✓gJ-L- t, Authorizing the City Manager to enter into a 14W'"WOW, Lease and Operating Agreement with the Chugach Regional Resources Commission, and terminating the Operating Agreement with Qutekcak Native Tribe for the Seward Mariculture Research Center and Shellfish Hatchery. BACKGROUND & JUSTIFICATION: The City and Qutekcak Native Tribe, a nonprofit organization, ("QNT") entered into an agreement in December 1997 for operation of the Mariculture Production Facility and to cover maintenance costs at the Mariculture Technical Center while producing high quality spat and aquatic plant seed stocks for the Alaska Mariculture Industry. The current agreement with QNT has been in place since May 28, 2003, and has been assigned to the Chugach Regional Resources Commission ("CRRC") since December 2004. The assignment from QNT to CRRC did not release QNT. QNT seeks to be released from its obligations. Concurrently, CRRC seeks its own agreement with the City to lease and operate the facility. The substantial terms and conditions remain the same, except that the new agreement is in the form of a lease and operating agreement (rather than an operating agreement) and the amount of the bond or surety to be maintained by CRRC is amended to $40,000. The administration reviewed the anticipated costs needed to "mothball" the facility for a period of time, and recommends accepting the new amount. On the effective date of the agreement with CRRC, the City and QNT would terminate the existing operating agreement. The latest extension of the assignment between the parties, approved by council on March 28, 2006, anticipated this arrangement. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. FISCAL NOTE: No financial impacts are anticipated. No rent would be received by the City. Approved by Finance Department Ytl1� 17 30 RECOMMENDATION: Council approves Resolution 2006- A I authorizing the City Manager to terminate the Operating Agreement with QNT and enter into a Lease and Operating Agreement with CRRC for the City's shellfish hatchery site. 31 TERMINATION OF AGREEMENT FOR OPERATING AND MAINTAINING THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY This instrument shall serve as termination of that certain agreement dated May 28, 2003 ("Agreement") between the City of Seward ("City") and Qutekcak Native Tribe ("QNT"). 1. Names and Addresses of Parties: City of Seward P.O. Box 167 Seward, Alaska 99664 Qutekcak Native Tribe P.O. Box 1467 Seward, Alaska 99664 2. Date of Termination of Agreement: The effective date of this termination is ; subject, however, to the survival of all terms and covenants expressly stated in Section 23 of the Agreement to survive termination. CITY OF SEWARD Clark Corbridge City Manager Date: ATTEST: Jean Lewis, CMC Ciiv Clerk J ° QUTEKCAK NATIVE TRIBE Date: ih i /b (. TERMINATION OF AGREEMENT FOR OPERATING AND MAINTAINING THE SEWARD MARICULTUR13 RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE I OF 1- -SEPTEMBER 2006- 32 LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY Dated: September 30, 2006 BY AND BETWEEN: THE CITY OF SEWARD CHUGACH REGIONAL RESOURCES COMMISSION 33 TABLE OF CONTENTS Definitions..................................................................................................................Page 3 Management and Operation of Facility..................................................................Page 6 2.1. Payment of Expenses........................................................................Page 6 2.2. Inspection of Premises......................................................................Page 6 2.3. Compliance with Laws.....................................................................Page 6 2.4. Taxes Assessments, and Other Charges.........................................Page 6 2.4.1. Taxation..................................................................................Page 7 3. Representations and Warranties of CRCC............................................................Page 7 4. Sublease......................................................................................................................Page 8 Operating Costs and Utilities...................................................................................Page 5.1. Operating Costs.................................................................................Page 5.1.2 Utilities...................................................................................Page 6. Maintenance and Repairs.........................................................................................Page 9 6.3 Repairs.............................................................................................Page 10 Cost-Sharing............................................................................................................Page 11 Liens.........................................................................................................................Page 11 9. Indemnification and Hazardous Materials...........................................................Page 11 10. Mothball Plan..........................................................................................................Page 14 10.1. Mariculture Technical Center/Shellfish Hatchery Mothballing....................................................................................Page 14 11. Nature of Relationship............................................................................................Page 15 12. Inspection Access.....................................................................................................Page 15 13. Term of Agreement and Option to Extend...........................................................Page 16 13.1 Term 13.2 Options to Extend LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY 34 14. Performance Bond Page 17 17 15. Insurance..................................................................................................................Page 16. Default......................................................................................................................Page 19 16.1. Events of Default of CRCC........................................................................Page 19 16.1.1. Failure to Pay...................................................................................Page 19 16.1.2. Default of Covenants or Conditions..............................................Page 19 16.1.3. Compliance with Health and Life/Safety Codes ..........................Page 19 16.1.4. Representations or Warranties ......................................................Page 19 16.1.5. Execution, Insolvency.....................................................................Page 19 16.1.6. Filing of Bankruptcy Petition .........................................................Page 20 16.1.7. Admission of Inability to Pay Debts..............................................Page 20 16.1.8. Appointment of Receiver or Trustee.............................................Page 20 16.1.9. Assi nment for Benefit of Creditors..............................................Page 20 16.1.10. Dissolution...........................................................................Page 20 16.1.11. Lease Agreement.................................................................Page 20 16.1.12. Other Events of Default ......................................................Page 20 17. Remedies of the City on CRCC's Default..............................................................Page 20 17.1. Termination.....................................................................................Page 21 17.2. Recover Monies...............................................................................Page 21 17.3. Enter Property Take Possession of Property...............................Page 21 17.4. Perform Obligations.......................................................................Page 21 17.5. Specific Performance......................................................................Page 21 17.6. Use of Property................................................................................Page 21 17.7. Other................................................................................................Page 22 18. Property Ownership...............................................................................................Page 22 19. Notices..................:...................................................................................................Page 22 20. Entire Agreement....................................................................................................Page 23 21. Amendments............................................................................................................Page 23 22. No Assignment.........................................................................................................Page 23 23. Survival....................................................................................................................Page 23 24. Force Maieure..........................................................................................................Page 23 LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY 35 LEASE AND OPERATINGAGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY This Lease Agreement for the Seward Mariculture Research Center and Shellfish Hatchery (the "Agreement") is made this 30th day of September, 2006, by and between the City of Seward, P.O. Box 167, Seward, Alaska 99664 (the "City") and Chugach Regional Resources Commission, a non-profit corporation organized under the laws of the State of Alaska, 6200 Lake Otis Parkway, Anchorage, Alaska 99507 ("CRRC"). WHEREAS, the City is the owner of real property ("Property") located in the City of Seward, Alaska and more particularly described herein; and WHEREAS, the City, as Lessor, leased the Property to the University of Alaska (the "University") as Lessee from July 1,1970 through June 30, 2069, under the conditions of that Lease Agreement dated March 7, 1991, recorded April 8,1991, at Book 60, Page 776 in the Records ofthe Seward Recording District, State of Alaska, as amended (the "Lease"); and WHEREAS, the University uses a portion of the Property for the University of Alaska, Fairbanks School of Fisheries and Ocean Sciences, Institute of Marine Science, Seward Marine Center ("Seward Marine Center"); and WHEREAS, under a certain sublease dated October 2, 1995, the University subleased a portion of the Property (the "Site" as herein defined) to the Alaska Department of Fish and Game to construct, operate and maintain a Mariculture Production Facility ("MPF") and Mariculture Technical Center ("MTC"); and WHEREAS, the purpose of the MPF is to produce seed stocks for Alaska aquatic farms and the purpose of the MTC is to focus on mariculture research in Seward; and LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 3 OF 25- 6 WHEREAS, the Alaska Department of Fish and Game, the City of Seward, and Qutekcak Native Tribe ("CRRC") entered into mutual agreements in December 1997 for the operation of the MPF and to cover maintenance costs at the MTC while producing high quality spat and aquatic plant seed stock for the Alaska mariculture industry; and WHEREAS, QNT began operating the Facility inl997; and WHEREAS, QNT, with the consent of the City, assigned its rights to operate the Facility to CRCC on a temporary basis and the parties now desire to release QNT; and WHEREAS, the City has determined that entering into this Agreement with CRRC to operate the Facility is in the public interest and will serve a public purpose by continuing to assist shellfish research and development of the shellfish farming industry and promoting jobs and economic development locally; and WHEREAS, the City has determined that the Facility will also complement the adjacent SeaLife Center and Seward Marine Center by providing additional research and educational opportunities in Seward. NOW THEREFORE IN MUTUAL CONSIDERATION OF THE MUTUAL COVENANTS and in promises expressed herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Definitions. The following terms shall, for the purposes of this Agreement, have the following meanings: "Agreement" means this Lease and Operating Agreement for the Seward Mariculture Research Center and Shellfish Hatchery. LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 4 OF 25- 37 "City" means the City of Seward, Alaska. "CRRC" means the Chugach Regional Resources Commission. "Facility" means, collectively, the MPF and MTC and all ponds, parking areas, structures and land on or pertinent to the Site as depicted in Exhibit B to the Sublease (collectively, the "Facility"). "Hazardous Material" means any substance: (a) the presence of which requires investigation or remediation under any federal, Alaska State or local statute, regulation, ordinance, order, action, policy, or common law; or (b) which is or becomes defined as a "hazardous waste," "hazardous material," "hazardous chemicals," "hazardous substance," 'oil," "pollutant," or "contaminant" under any federal, Alaska state or local statute, regulation, rule, or ordinance or amendments thereto including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (42.U.S.C. Section 2701 et seq.), the Oil Pollution Act of 1990 (33 U.S.C. Section 2701 et seq.), Title 46 of the Alaska Statutes, and applicable portions of Title 18 of the Alaska Administrative Code. "Lease" means the agreement between the City, as Lessor, and the University, as Lessee, effective July 1, 1970 through June 20, 2069 under the conditions of that Lease Agreement dated March 7,1991, recorded April 8, 1991 at Book 60, Page 776 in the Records of the Seward Recording District, State of Alaska, as amended. "MTC" means Mariculture Technical Center. "MPF" means Mariculture Production Facility. LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 5 OF 25- "Property" means the all of Tracts IA and 1B Waterfront Tracts Subdivision, Mariculture Addition, according to Plat 97-18, located in the Seward Recording District, Third Judicial District, State of Alaska, excluding that portion of Tract 1 B beginning at the South West corner of said Tract 113, thence N 05°14'46" E a distance of 115.626 meters (379±feet) along the western property boundary to the true point of beginning, thence continuing Northerly along the property boundary a distance of 10.950 meters (36± feet), thence N 56°30'44" E a distance of 11.394 meters (37± feet) along the property boundary adjoining Railroad Avenue, thence S 31 °25'29" W a distance of 20.146 meters (66± feet) to the true point of beginning, Said parcel containing 0.0049 hectares (527± Square Feet), more or less. "Site" means All of Tract 113, Waterfront Tracts Subdivision, Mariculture Addition, according to Plat 97-18, located in the Seward Recording District, Thud Judicial District, State of Alaska, EXCEPTING THEREFROM beginning at the South West comer of said Tract 1 B, thence N 05 ° 1446" E a distance of 115.626 meters (379±feet) along the western property boundary to the true point of beginning, thence continuing Northerly along the property boundary a distance of 10.950 meters (36± feet), thence N 56030144" E a distance of 11.394 meters (37± feet) along the property boundary adjoining Railroad Avenue, thence S 31 °25'29" W a distance of 20.146 meters (66± feet) to the true point of beginning. "Sublease" means the agreement between the University, as Sublessor, and the City, as Sublessee, effective May 28, 2003 for sublease of the Site to the City. "Term" means the two year term of this Agreement, effective September 30, 2006 through September 30, 2008 unless extended or terminated as provided herein. "University" means the University of Alaska. LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 6 OF 25- 39 2. Management and Operation of Facility. CRRC shall maintain, operate, and control the Facility and shall do so to a standard that is comparable to that of other well -operated and maintained marine research facilities throughout the United States. 2.1. Payment of Expenses. CRRC shall be responsible for the payment of all expenses relating to the management and operation of the Facility. 2.2. Inspection of Premises. The City may periodically inspect the Site and the Facility in order to ascertain the condition of the Site and the Facility, but the exercise of this right shall not imply any obligation to do so nor any obligation to do so in any particular way. 2.3. Compliance with Laws. CRRC shall comply at all times with any and all Federal, State, Kenai Peninsula Borough, and City statutes, ordinances, rules, regulations and judicial and administrative decisions governing the use and operation of the Site, including, without limitation, the terms and provisions of the conditional use permit for the Facility issued by the City Planning and Zoning Commission. 2.4. Taxes Assessments, and Other Charges. CRRC shall pay all real and personal property taxes, sales taxes, special assessments, and other charges of every description levied on or assessed against the Site, improvements on the Site, and personal property located on the Site, to the full extent of installments falling due during the Term. CRRC shall make all such payments before delinquency and before any fine, interest, or penalty shall become due or be imposed by operation of law for their nonpayment; provided that CRRC may pay any such payment in installments where permitted by law, but shall pay any installment with interest before delinquency. CRRC may contest the legal validity or amount of any tax, assessment, or charge for which CRRC is responsible under LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 7 OF 25- 40 this Agreement. If CRRC contests any such tax, assessment, or charge CRRC may withhold or defer payment or pay under protest, but shall protect the City and the Site from any lien by surety bond or other appropriate security. 2.4.1. Taxation. To the extent that sales by CRRC and rents paid to CRRC related to the visitor and educational parts of the Site are exempt from City sales tax only because CRRC is a non-profit corporation, CRRC will collect on all such sales and rents and remit to the City an amount equal to the City sales tax that would be due on such sales and rents if such sales and rents were not exempt. 3. Representations and Warranties of CRCC. 3.1. CRRC is a non-profit corporation duly organized, validly existing and in good standing under the laws of the State of Alaska, and has all corporate power and all government licenses, authorizations, consents and approvals required to carry on its business in everyjurisdiction where it conducts business. 3.2. The execution, deliver and performance by CRRC of this Agreement are within CRRC's corporate powers, have been duly authorized by all necessary corporate action, do not contravene or violate (i) CRRC's Articles of Incorporation or Bylaws; (ii) any law, rule or regulation applicable to it; (iii) any restriction in any agreement or instrument to which it is a party or by which it or any of its property is bound; or (iv) any order, writ, judgment, award, injunction or decree applicable to it. LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 8 OF 25- 41 3.3. CRRC has and will maintain expertise in managing and operating a mariculture research and production facility adequate for the efficient and safe operation, management and maintenance thereof. 3.4. CRRC has all the necessary equipment and agrees to maintain such equipment in working order for the purposes of conducting its activities as described in this Agreement. CRRC further warrants that it has obtained a Shellfish/Aquatic Plant/Shellfish Hatchery Permit from the Alaska Department of Fish and Game to operate a shellfish hatchery pursuant to AS 16.40.100 - 16.40.199. 4. Lease and Sublease. The City holds a Sublease Agreement with the University for the Site. The term of the Sublease expires May 31, 2028, subject to the termination and cancellation provisions contained therein. CRRC shall be responsible for complying with the terms and conditions of the Sublease and any amendments thereto. Attached hereto is Exhibit A which is the Lease agreement and Exhibit B which is the Sublease Agreement. 5. Operating Costs and Utilities. 5.1. Operating Costs. CRRC shall maintain the Facility at its own cost. Any direct or indirect costs incurred by CRRC for the management and operation of the shellfish hatchery and the maintenance of the Facility will be the sole responsibility of CRRC. This includes but is not limited to utility costs, operating supplies, salaries, insurance, and Facility upkeep. CRRC shall provide, without reimbursement, all shared utilities, including heated process water and electricity to the MTC. CRRC and any MTC occupant shall negotiate utility compensation for each project initiated LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 9 OF 25- 42 at the MTC. The negotiated agreements shall be in writing and signed by both parties. A copy shall be provided to the City. 5.1.2 Utilities. CRRC shall be responsible for the maintenance, repair or replacement of any failure, defect, deficiency, or impairment of any water supply system, drainage or sewer system, electrical supply system, electrical apparatus, wires, or other utilities serving the Facility during the Term. 6. Maintenance and Repairs. Routine and long-term maintenance plans for the Facility shall be prepared by CRRC and submitted to the City for review and approval no later than September 30, 2006. The plans shall be updated yearly prior to December 31 st. The plans will be incorporated as part of this Agreement. 6.1. The routine maintenance plan shall include, but not be limited to, the following: A. A schedule for day-to-day preventative and non -routine maintenance. B. Complying with the Shellfish/MTC operations manuals and preventative maintenance schedules provided by any governmental agency or authority having jurisdiction. C. Maintaining the grounds in a clean, safe and sanitary fashion, including adherence to applicable provisions of the Sublease Agreement. D. In accordance with all applicable laws, ordinances, orders and regulations of any governmental agency or body having jurisdiction over the Site. E. In a manner which will not jeopardize coverage provided by any insurance company or companies insuring all or any part of the Facility. 6.2. The long-term plan shall include, but not be limited to the following: LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 10 OF 25- 43 A. Painting of all exposed surfaces. B. Replacement of all pumps and all items that wear out. C. Structural maintenance, repair and reconstruction including, but not limited to, plumbing, heating, electrical systems, roofs, interior walls, exterior walls, foundation, tanks. If the maintenance specified in the routine and long-term plans, or otherwise determined necessary by the City, is not completed in a timely manner, the City will notify CRRC in writing of the need for correction. If the correction is not made within a reasonable period of time considering the severity of the problem, the City, at its sole discretion, may correct the deficiencies by any reasonable means. CRRC shall promptly pay all such costs. Bills may be sent directly to CRRC for payment. 6.3 Repairs. CRRC shall be responsible for all repairs to the Facility necessary during the life of the Agreement. 6.3.1. Repairs shall be accomplished in a timely manner. If the repair is not made within a reasonable period of time, considering the severity of the problem, the City, at its sole discretion may correct the deficiencies by any reasonable means, all costs of which shall be promptly paid by CRRC. Bills may be sent directly to CRRC for payment. 6.3.2. CRRC shall maintain the level of repair and maintenance necessary to ensure that upon completion or termination of the Agreement, the Facility is returned to the City in as good a condition as when received by CRRC, excluding normal wear and tear. 6.3.3. The annual budget developed by the Contractor shall identify the amount allocated annually for repairs to the Facility. LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE ] 1 OF 25- 44 7. Cost -Sharing. Notwithstanding any other provision of this Agreement, CRRC shall not be required to pay more than the City's share of utilities, maintenance and repairs required by the Sublease Agreement. 8. Liens. CRRC shall be solely responsible for paying for all labor performed upon or materials furnished to the Facility, including maintenance or repair, furnished at the request of CRRC. CRRC shall keep the Facilities under CRRC's jurisdiction, free and clear of any and all mechanics', labor, or material men's liens arising from the performance of labor upon or furnishing materials to the Facility. Contractor shall post and record notices of non -responsibility for the benefit of the City and the University pursuant to AS 34.35.065, AS 34.35.150 and any other applicable laws. CRRC shall keep any improvements it undertakes to existing structures and land free and clear of all liens and shall hold the City and the University harmless from all costs or liability resulting from such improvements. 9. Indemnification and Hazardous Materials. 9.1. CRRC shall indemnify, hold harmless, and defend the City, its officers, agents, and employees from and against all claims arising from death or injury of any person or damage to any property, occurring in or about the Facility, and CRRC shall pay all costs of the City, including attorney fees and legal costs, upon receiving notice by the City thereof, except under any circumstances in which such death, injury, or damage to property is caused by the intentional, reckless, or negligent conduct of the City, its officers, agents, and employees; provided, however, that in the event of concurrent negligence, then each party shall bear the costs and expenses attributable to it. LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 12 OF 25- 45 9.2. The City shall not be responsible for the condition of the Site, or the Facility, or the property of any third party that may be on the Site. The City makes no representations or warranties respecting the condition of the Facility. 9.3. CRRC shall indemnify, defend and hold the City harmless from and against any and all claims, demands, damages, losses, liens, costs and expenses (including attorneys fees and disbursements) which accrue to or are incurred by the City arising directly or indirectly from or out of or in any way connected with (i) the inaccuracy of the certifications contained in this Agreement; and (ii) subject to the provisions of paragraph 4.1., for (a) any activities on or related to the Facility during CRRC's possession or control which directly or indirectly results in the Site being contaminated with a Hazardous Material; (b) the discovery of a release of a Hazardous Material on the Property; and (c) the clean-up, removal, or remediation of Hazardous Materials on the Property. 9.4. The proper handling and reporting of all Hazardous Materials shall be handled as follows: 9.4.1. CRRC agrees to handle and store at the Site only those Hazardous Materials necessary and essential to the regular operation of the Facility. 9.4.2. If Hazardous Materials are handled at the Facility, CRRC agrees to have properly trained personnel or consultants and adequate procedures for safely storing, dispensing and otherwise handling the Hazardous Materials in accordance with all applicable federal, state, and local laws. LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 13 OF 25- 46 9.4.3. CRRC agrees to strictly adhere to all reporting requirements relating to handling, storage, release, or spill of Hazardous Materials required under applicable federal, state and local laws. 9.5. If contamination of the Site or of other property or water by Hazardous Materials occurs or has occurred from CRRC's operations, beginning from when CRRC first took control of the operation of the Facility, CRRC, at its sole expense, shall promptly remediate and restore the affected area in accordance with all applicable local, state, and federal laws and regulations, and to the satisfaction of the City. Such remediation and restoration of the affected area by CRRC must not adversely impact the future operation and development of the Site. The obligations of CRRC in this paragraph shall survive the completion or termination of this Agreement. 9.6. If contamination of the Facility, the Site, or of other property or water by Hazardous Materials occurs or has occurred from CRRC's or QNT's operations, beginning from when QNT fast took control of the operation of the Facility in 1997, CRRC shall indemnify, defend, and hold the City and the University harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities, or losses, including sums paid in settlement of claims, attorney's fees, consultants fees, expert fees, which are the result of such contamination. This indemnification of the City and the University by CRRC includes costs incurred in connection with any investigation of site conditions or any cleanup, remediation, removal, or restorative work required by federal, state, or local governmental agencies because of Hazardous Materials present in soil, sediment, groundwater or state or federal waters. The obligations of the Contractor in this paragraph shall survive the completion or termination of this Agreement. LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 14 OF 25- 47 9.7 CRRC shall annually within twenty (20) days following the anniversary date of this Agreement, provide to the City a complete inventory of all lab chemicals which were on site as of the last day of the anniversary year and those which were stored on the Site during the preceding year; to include in said report the material name, current quantity on hand and maximum quantity on hand during the previous year. 10. Mothball Plan. CRRC shall prepare a Mothball Plan, as described below, and assumes and remains responsible for the implementation of such plan according to the terms of this Agreement, to the extent the City would otherwise have such responsibilities. 10.1. Mariculture Technical Center/Shellfish Hatchery Mothballing. Mothballing is defined here as putting the Facility into a non -operational status. It is a strategy exercised upon notice of termination when there is a reasonable chance that a shellfish hatchery will again operate on the Property in the future. The mothballing focuses on preparing the Facility for a down time that makes it simple to reactivate production. It includes, but is not limited to, the following actions: removal of all plants and animals, disinfection of tanks, pipes, filters, containers, proper storage of all equipment and nonperishable supplies, and installation of an adequate number of alarms for protection of the facility and equipment from vandals, thieves and the weather. The intent is to insure ease of future operations by protecting the Facility and all equipment. CRRC shall, at a minimum perform the following: (i) properly dispose of all animals and plants; (ii) repair, clean and disinfect all walls, floors, and other building components; (iii) leave grounds surrounding the Facility in a clean and neat fashion with all trash and useless items removed; (iv) prepare electric and mechanical devices for storage; (v) clean, disinfect and plastic LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 15 OF 25- 48 wrap all hatchery culture equipment; (vi) drain and flush all systems and replace all sand in filters; (vii) protect outside tanks from all weather conditions; (viii) install security devises; and (ix) pay all utility costs including, but not limited to, heat, electricity, and phone service to provide approved internal environmental protection to the Facility. The City may inspect the Facility upon CRRC's notification that the mothballing is complete. If CRRC fails to mothball the Facility to the satisfaction of the City, the City may accomplish the mothballing and bill CRRC for all costs. CRRC shall repay all sums so expended by the City within thirty days of receipt of a bill for collection. 11. Nature of Relationship. The relationship of CRRC to the City shall be that of an independent contractor to perform those services set forth in this Agreement or such other services as to which the parties may from time to time agree in writing. CRRC is not an employee, partner, or joint venturer with the City. CRRC's work shall not be subject to supervision by the City and CRRC shall establish its work schedule, in its discretion, and the process and methods to perform the services required by this Agreement. CRRC represents that it has specific expertise in the area of mariculture management, and that it will perform all services in accordance with applicable laws, reasonable and ordinary business customs, and in an efficient manner. 12. Inspection Access. The City, through its authorized agents shall have the right at reasonable times and in a reasonable manner so as not to interfere with CRRC's operations, to have access to the Facility for the purpose of confirming that CRRC is conducting its operations in the manner required by this Agreement or to conduct an inspection or audit. CRRC shall reimburse the City for the City's reasonable costs in utilizing consultants for inspections, audits, and reviews of the Facility and its LEASE AND OPERATING AGREEMENT FOR SHELLFISH HATCHERY -PAGE 16 OF 25- THE SEWARD MARICULTURE RESEARCH CENTER AND 49 records, including, without limitation, accounting, environmental, safety, health, regulatory compliance, and operational reviews. Absent negligent, reckless, or willful misconduct by the City, CRRC shall indemnify and hold harmless the City from any and all claims or liabilities for damages arising out of any injury or property damage sustained while upon the Facility as permitted under this section. 13. Term of Agreement and Option to Extend. 13.1 Term. Provided that CRRC has demonstrated that it has sufficient technical and financial resources to fully perform this Agreement and has complied with Sections 14 (Performance Bond) and 15 (Insurance), this Agreement shall be effective September 30, 2006, and terminate: A. On September 30, 2008 (two years) unless extended or terminated as provided in this Agreement; B. Upon termination of the Sublease; C. Thirty (30) days following written notice by the City of an Event of Default as defined in Section 16 of this Agreement: If such Event of Default is one of a nature curable within thirty (30) days and such default has not been cured; or ii. If such Event of Default is of a nature not curable within thirty (30) days, then in the event CRRC fails to commence the curing of such default within such thirty (30) day period and diligently prosecute the curing of the same; and PROVIDED THAT CRRC shall not have the opportunity to cure if a prior default of any nature and prior notice of default has occurred within one hundred eighty (180) days of such notice; LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 17 OF 25- 50 or D. Without any liability of the City to CRRC, the City may terminate this Agreement on 180 days notice to CRRC. 13.2 Options to Extend. CRRC shall have the right to extend the term of this Agreement for three (3) additional one year periods (cumulative extensions not to exceed three years), provided that: A. CRRC exercises any applicable option to extend at least 30 days prior to the expiration of the then current term; B. CRRC is not in default under any term or provision of this Agreement; and C. CRRC shall exercise its options to extend by sending written notice thereof in accordance with the provisions of Section 19 of this Agreement. 14. Performance Bond. CRRC shall obtain and keep in place throughout the term of this Agreement, a performance bond, cash deposit, or other surety in favor of the City in an amount and on terms satisfactory to the City, but no less than the greater of (a) $40,000; or (b) an amount sufficient to guarantee the operation and maintenance of the Facility and CRRC's obligations under this Agreement, including, but not limited to, in the City's sole discretion, implementing the Mothball Plan according to Section 10 of this Agreement. Proof of such performance bond, cash deposit or surety shall be provided to the City prior to conducting activities under this Agreement at the Facility, but no later than September 30, 2006. 15. Insurance. CRRC shall obtain the following minimum insurance coverages, as required by the Lease and this Agreement. Certificates of Insurance are to be provided to the City upon execution of this Agreement, and prior to the inception of work or occupancy, and must provide for a thirty (30) day prior notice to the City and the University of cancellation, nonrenewal, or material LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 18 OF 25- 51 change of the policies. Excepting workers compensation, all policies are to be endorsed to name the University and the City additional insureds and shall provide a waiver of subrogation in favor of the University and the City. All insurance shall be on an occurrence and not a claims made basis. A. Workers compensation and Employers Liability Insurance as required by AS. 23.30.045. The coverage must include statutory coverage for states in which employees are engaging in work and employer's liability protection not less than Five Hundred Thousand ($500,000) per person, Five Hundred Thousand ($500,000) per occurrence. Where applicable, coverage for all federal acts (i.e. U.S.L. & H. And Jones Act) must also be included. B. Comprehensive (Commercial) General Liability Insurance with coverage limits not less than Two Million Dollars ($2,000,000) combined single limit per occurrence and annual aggregate where generally applicable including premises operations, independent contractors, products/completed operations, broad form property damage, blanket contractual, and personal injury endorsements. C. Comprehensive Automobile Liability Insurance covering all owned, hired, and non - owned vehicles with coverage limits not less than Two Million Dollars ($2,000,000) combined single limit per occurrence bodily injury and property damage. D. All Risk Property Insurance (including earthquake and flood) on the Mariculture Technical Center/Shellfish Hatchery and equipment forming part of or otherwise connected to the Facility, in such amounts and with such deductibles as under good management practices are ordinarily provided for similar buildings and equipment, but in no event in an amount less than the replacement value of the Facility. The City shall also be named as a loss payee on any settlement LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 19 OF 25- 52 under this insurance and CRRC shall be obligated to pay the deductibles. The City, at its option, has the right to pay any delinquent premium upon any of the policies if necessary to prevent a cancellation, nonrenewal, or material alteration thereof; and CRRC agrees that it shall, within thirty (30) days, reimburse the City thereof. 16. Default. 16.1. Events of Default of CRCC. Each of the following events shall constitute an Event of Default" under this Agreement: 16.1.1. Failure to Pay. The failure of CRRC to pay any sum of money due under this Agreement within ten (10) days after the same is due hereunder. 16.1.2. Default of Covenants or Conditions. Default by CRRC in the performance or observance of any covenant or condition of this Agreement (other than a default involving the payment of money or under Section 16.1.1 hereof), which default is not cured within thirty (30) days after the giving of notice thereof by the City, unless such default is of a nature that it cannot be cured within such thirty (30) day period, in which case no Event of Default shall be declared so long as CRRC shall commence the curing of the default within such thirty (30) day period and shall thereafter diligently prosecute the curing of same. 16.1.3. Compliance with Health and Life/Safety Codes. Failure by CRRC to operate or maintain the Facility in compliance with health and life/safety codes as required by this Agreement, local, state, or Federal law or permit. 16.1.4. Representations or Warranties. If any representation or warranty by CRRC contained in this Agreement or any document provided to the City by CRRC is false in any material LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 20 OF 25- 53 respect as of the date of the making or furnishing thereof and which would have a material adverse effect on the Facility or this Agreement. 16.1.5. Execution, Insolvency. The sale of CRRC's interest in this Agreement under attachment, execution, or similar legal process; or if CRRC is adjudicated as bankrupt or insolvent under any state bankruptcy or insolvency law or an order for relief is entered against CRRC under the federal Bankruptcy Code. 16.1.6. Filing of Bankruptcv Petition. The commencement of a case under any chapter of the federal Bankruptcy Code by or against CRRC, or the filing of a voluntary or involuntary petition proposing the adjudication of CRRC as bankrupt or insolvent, or the reorganization of CRRC, or an arrangement by CRRC with its creditors. 16.1.7. Admission of Inability to Pay Debts. The admission in writing by CRRC of its inability to pay its debts when due. 16.1.8. Appointment of Receiver or Trustee. The appointment of a receiver or trustee for the business or property of CRRC, unless such appointment shall be vacated within ten (10) days of its entry. 16.1.9. Assignment for Benefit of Creditors. The making by CRRC of an assignment for the benefit of its creditors, or if in any other manner CRRC's interest in this Agreement shall pass to another by operation of law. 16.1.10. Dissolution. The voluntary or involuntary dissolution of CRRC. 16.1.11. Lease Agreement. The failure of CRRC to comply with any term of the Sublease. LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 21 OF 25- R 16.1.12. Other Events of Default. The occurrence of any other event described as constituting an "Event of Default" of CRRC elsewhere in this Agreement. 17. Remedies of the City on CRCC's Default. Upon the occurrence and continuation of CRRC's Event of Default, the City, without notice to CRRC in any instance (except where expressly provided for below), in addition to all remedies available at law, may do any one or more of the following with respect to CRRC: 17.1. Termination. Terminate this Agreement and the rights created herein by giving notice of such election to CRRC. The City, by written notice, may terminate this Agreement, in whole or in part, when it is in the best interest of the City. 17.2. Recover Monies. Recover all monies owed by CRRC to the City under the reimbursement provision of this Agreement. 17.3. Enter Property Take Possession of Property. With or without judicial process, enter the Facility and take possession of any and all goods, inventory, equipment, fixtures, accounts, general intangibles, and all other personal property of CRRC situated in or on, or used in connection with, the Facility without liability for trespass or conversion, and may sell all or any part thereof at public or private sale. 17.4. Perform Obligations. Without assuming any obligation to do so, perform, on behalf of and at the expense of CRRC, any obligation of CRRC under this Agreement which CRRC has failed to perform and of which the City shall have given CRRC notice, the cost of which performance by the City, shall be payable by CRRC to the City upon demand, and such sums shall bear interest until paid at a rate equal to ten and one-half percent (10.5%) or the highest rate LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 22 OF 25- 55 permitted by Alaska law, whichever is less. 17.5. Specific Performance. Seek specific performance of any term or provision of this Agreement. 17.6. Use of Property. If this Agreement is terminated, the City may enter into other agreements providing for use of the Facility for such term or terms (which may be greater or less than the period which otherwise would have constituted the balance of the term) and on such terms and conditions (which may include concessions or free use and alterations of the Facility) as the City, in its absolute discretion, may determine, but the City shall not be liable for, nor shall CRRC's obligations hereunder be diminished by reason of, any failure by the City to enter into such agreements or any failure by the City to collect any payment due upon such agreements. 17.7. Other. Nothing herein shall limit the City's remedies at law or in equity. 18. Property Ownership. Nothing in this agreement transfers the title, land jurisdiction, or ownership of buildings or structures from the City to CRRC. 19. Notices. Notices required by this Agreement shall be in writing and shall be effective when hand -delivered or when received if sent by registered or certified mail, return receipt requested, or three (3) days following postmark if sent by first class mail, postage prepaid to the addresses listed below. Each party shall notify the others in writing of any change in address: The City: City of Seward P. 0. Box 167 Seward, Alaska 99664 Attn: City Manager LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 23 OF 25- 56 with a copy to: Wohlforth, Johnson, Brecht, Cartledge & Brooking P. C. 900 West 5th Avenue, Suite 600 Anchorage, Alaska 99501-2048 The Operator: Chugach Regional Resources Commission 6200 Lake Otis Parkway Anchorage, Alaska 99507 Attn: Jeff Hetrick 20. Entire Agreement. CRRC and the City acknowledge that this Agreement constitutes the entire agreement between the parties hereto, and any prior contracts, agreements, promises, or representations between CRRC and the City pertaining to the Facility are hereby extinguished. 21. Amendments. No changes or modifications may be made to this Agreement without prior written consent signed by the City and CRRC. 22. No Assignment. This Agreement may not be assigned in whole or in part. 23. Survival. CRRC's responsibilities and duties under Section 5 - Reimbursement of Costs, Section 9 - Indemnification, and Section 10 - Mothball Plan of this Agreement shall survive the termination of this Agreement. 24. Force Maieure. In the event offorce majeure resulting in substantial damage to the Facility, the City and CRRC shall assess the damage and elect to repair the Site, contract out the repairs, or terminate the Agreement without fault. The ability to repair will be based on available funding and the level of damage sustained. Neither party will be responsible for any loss or damage resulting from a force majure. LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 24 OF 25- .. 5 IN WITNESS WHEREOF, the parties hereto have executed this agreement on the day and year first above written. ATTEST: Jean Lewis, CMC, City Clerk CITY OF SEWARD Clark Corbridge, City Manager CHUGACH REGIONAL RESOURCES COMMISSION By: Its: The University consents to the above Agreement. UNIVERSITY OF ALASKA By: Its: LEASE AND OPERATING AGREEMENT FOR THE SEWARD MARICULTURE RESEARCH CENTER AND SHELLFISH HATCHERY -PAGE 25 OF 25- me Sponsored by: Corbridge CITY OF SEWAR% ALASKA RESOLUTION 2006-92 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, PLEDGING A CONTRIBUTION OF $2500 TO THE PROPOSED STATEWIDE METHAMPHETAMINE ABUSE EDUCATION CAMPAIGN WHEREAS, at a recent Kenai Peninsula Conference of the Mayor's meeting, Kenai Peninsula Borough Mayor John Williams informed the Mayors about an initiative sponsored by the Kenai Peninsula Borough, the Matanuska-Susitna Borough, and the Municipality of Anchorage to start a statewide methamphetamine abuse education program; and WHEREAS, Mayor Williams is attempting to raise a local cash match and seed money for the program from Borough organizations and municipalities; and WHEREAS, Mayor Williams has requested that Municipalities in the Borough pledge $2,500.00 toward the campaign; and WHEREAS, the City of Seward has experienced the effects of methamphetamine abuse on individuals, families, and the community at large; and WHEREAS, the City Administration wishes to help address this problem and believes that community education is a vitally, important component of this effort. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is hereby authorized to pledge $2,500.00 for the proposed State-wide methamphetamine abuse education program described by Mayor Williams. Section 2. The City Manager is hereby authorized to make appropriations to fulfill this pledge at the time when the program is established, expenditure rules are formalized, and the funds are requested. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28`h day of August, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor 59 Meeting Date: Thru: From: Agenda Item: Council Agenda Statement August 28, 2006 Clark Corbridge, City Manager Chief Tom Clemons ucl ZY-0 Statewide Methamphetamine Abuse Education Campaign Pledge BACKGROUND & JUSTIFICATION: At a recent Kenai Peninsula Conference of the Mayor's meeting, Kenai Peninsula Borough Mayor John Williams informed the Mayors about an initiative sponsored by the Tri- Borough Commission which is composed of the Kenai Peninsula Borough, the Matanuska-Susitna Borough and the Municipality of Anchorage to start a statewide methamphetamine abuse education program. The Tri-Borough Commission has taken the lead on a state-wide campaign designed to demonstrate the deadly hazards of abusing meth. They are currently trying to raise municipal, State, and matching private sector funds to launch a public information campaign. Mayor Williams is attempting to raise a local cash match and seed money for the program from Borough organizations and municipalities. Mayor Williams has requested that Municipalities in the Borough pledge $2,500.00 toward the campaign. INTENT: Participate and support the Statewide Methamphetamine Abuse Education Campaign. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. FISCAL_ NOTE: Approved by Finance Department: 4�Lug RECOMMENDATION: City Council approve Resolution 2006-j<�_, authorizing the City Manager to pledge $2,500.00 for the proposed State-wide methamphetamine abuse education program described by Mayor Williams and make appropriations to fulfill this pledge at the time when the program is established, expenditure rules are formalized, and the funds are requested 60 Sponsored by: Corbridge CITY OF SEWARD, ALASKA RESOLUTION 2006-93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH NYE FRONTIER FORD FOR THE PURCHASE OF A 2006 FORD F250 CREW CAB 4X4 TRUCK, FOR AN AMOUNT NOT TO EXCEED $289710 WHEREAS, during the 2006 budget process, the Seward City Council authorized $35,000.00 to purchase a replacement vehicle for the Public Works Water and Sewer Department; and WHEREAS, the new vehicle will help to ensure reliable transportation for department employees, and will maintain consistency in the Public Works Department's vehicle replacement schedule; and WHEREAS, it is in the public's best interest to provide reliable response vehicles to the Public Works Department in order to continue the highest level of service possible; and WHEREAS, this vehicle is $6,290.00 less than the authorized purchase amount, and $11,720 less than the retail price, representing a cost-effective purchase for the department; and WHEREAS, Seward City Code 6.10.120(b) authorizes the City to utilize competitive bids received from other governmental entities, and the City administration recommends utilization of the State of Alaska's fleet bid price for the purchase of this vehicle. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to enter into an agreement with Nye Frontier Ford to purchase a 2006 Ford F250 Crew Cab 4x4 pickup truck for an amount not- to- exceed $ 28,710.00. Section 2. The City Council hereby finds it in the public's interest to authorize the City to utilize competitive bids obtained by the State of Alaska, as authorized in Seward City Code 6.10.120(b). Section 3. Funding for the purchase of this vehicle will come from the motor pool fund equipment account no. 102-1020-5930. CITY OF SEWARD, ALASKA RESOLUTION 2006-93 Section 4. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28`h day of August, 2006. THE CITY OF SEWARD, ALASKA Vanta Shafer, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis City Clerk (City Seal Council Agenda Statement Meeting Date: August 28, 2006 Through: Clark Corbridge, City Manager of g ZY_O0 From: W.C. Casey, Public Works Director �& Agenda Item: Approval to Purchase a Replacement Vehicle Utilizing the State of Alaska bid Process BACKGROUND & JUSTIFICATION: During the 2006 Budget process, the City Council approved the purchase of a replacement vehicle for our Water and Sewer Department at a cost not to exceed $ 35,000. This resolution requests authorization to purchase a 2006 Ford F-250 Crew Cab 4x4 pick-up at a cost not- to- exceed $28,710.00. Seward City Code 6.10.120(B) allows the City to utilize competitive bids obtained by other governmental agencies. It was determined by the State of Alaska bid process that Nye Frontier Ford could provide the lowest possible price for the vehicle specifications required by the City. The retail price for this vehicle is $40,430. By utilizing the State of Alaska bid process, the City is able to obtain the vehicle for $28,710.00, representing a savings of $11,720 from the retail price. This vehicle is on the lot ready for delivery, and the dealer agrees to hold this vehicle until August 29`h, 2006, pending Council approval. Replacement of the 1999 Ford F-250 helps maintain reliable transportation for the department employees and is consistent with our departmental replacement schedule. Currently the accrued mileage on this vehicle is 106,321. This 1999 Ford truck is one of the vehicles described as "problematic" at the June 26, 2006 Council meeting. At that time, City Shop staff identified common and costly problems associated with these 1999 Ford trucks, as was mentioned during the discussion of the purchase of a new vehicle for the Electric Department Engineer. This vehicle will be identified for sale in next year's Surplus Sale. CONSISTENCY CHECKLIST: Where applicable, this resolution is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. 63 FISCAL NOTE: To be paid for from the Motor Pool equipment account no. 102-1020-5930, as previously appropriated in the 2006 Operating Budget. Approved by Finance Department: RECOMMENDATION: City Council approve Resolution 2006-q3 authorizing the purchase of one 2006 Ford F-250 Crew Cab 4x4 pick-up truck as specified, from Nye Frontier Ford at a cost not -to -exceed $28,710.00. 64 City Council Minutes City of Seward, Alaska Volume 37, Page August 14 2006 CALL TO ORDER The August 14, 2006, regular meeting of the Seward City Council was called to order at 7:30 p.m. by Mayor Vanta Shafer. OPENING CEREMONY Police Chief Tom Clemons led the pledge of allegiance to the flag. ROLL CALL There were present: Vanta Shafer presiding and Willard Dunham Dorene Lorenz Bob Valdatta Steve Schafer Jean Bardarson Robert Thomas comprising a quorum of the Council; and Clary Corbridge, City Manager Jean Lewis, City Cler Cheryl Brooking, CiAM Absent — None SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards - A memoriam was read for the family of Bruce Sieminski. A proclamation was read for Founders' Day. Borough Assembly Report. Borough Assembly Representative Ron Long stated after many public hearings, the material site revision ordinance was finally passed August 1, 2006. A dewatered bar exemption in Seward was still in place. This change only applied to new sites in the area, with prior existing uses not affected. $2.5 million in education capital general obligation bonds would be on the October ballot. Long said the Assembly would open bids on the Spruce Creek Bridge project, and disposal and demolition bids for the Seward Middle School. They were also considering an ordinance to appropriate $400,000 for an education lawsuit. City Manager's Report. City Manager Clark Corbridge would be meeting with Scott Walden, the coordinator of the Kenai Peninsula Borough Office of Emergency Management about various flood -related concerns. He introduced the newly -hired Planner Scott Williams. 65 City Council Minutes City of Seward, Alaska Volume 37, Page August 14 2006 Electric Department. Corbridge stated the City had begun receiving reimbursement from the State of Alaska for expenses incurred during last year's avalanche. Norcon had begun work on the transmission and distribution line relocation as part of the Mile 0-8 repaving project. He stated the department had recently completed its expedited estimate process for the Spruce Creek Bridge project and noted September 15 was the deadline for requesting other electric work to be completed by fall. Finance Department. Corbridge established the budget kick-off work session would be September 5. They would provide an update on the City's financial condition, discuss major budget policies, general assumptions, and receive input from Council on specific programs and services. With the current audit contract expiring after completion of the 2005 audit, an RFP for the procurement of auditing services was being prepared. Harbor Department. Shop drawings and calculations by Transpac were approved, and construction of the dock system components had begun. The permitting process was underway for the I and T-dock, bulkhead and travelift dock. The area had been dredged, surveyed, and core samples drilled. Corbridge also stated the Corps of Engineers had accepted the final survey of the dredged basin and entrance, which allowed the city to receive the final $130,000 of the $1.3 million grant from EDA. Design was underway for the south harbor floats installation and uplands work, and the new Derby booth and sectibeWthe ust completed. Corbridge informed that Harbormaster Scott Ransom had taenate Commerce Committee on a boat tour of the harbor and SMIC area,ms d needs with them. Corbridge explained in detail, the timeline regarding the purchase of the land from the Salvation Army for the new library/museum complex, and stated most of the delays stemmed from personnel changes and a shortage of funds. He also defined "easements" to appease public questions. Parks & Recreation Department. Summer attendance at the TYC had increased by 288 students over the previous high. Campground revenue brought in over $135,000 and parking lot revenues $55,800. The department was working with the Seward Mural Society for work on the next selected site of Kawabe Park. Corbridge had met with Jim Kubitz of the Alaska Railroad (ARR) on the future development of the area in the vicinity of the boat harbor "sliver." Development hinged on the vacation of the Coast Guard from their building. The ARR would begin developing next year's capital budget in about 4-6 weeks. Long -Term Care Facility. A tentative schedule was developed for critical events to happen during the next three months. The project was on track to be completed the latter part of 2007, being now 2-3 months behind schedule. In response to questions from the council, Corbridge explained the two year budget would be presented at the upcoming work session. He informed that the community questionnaire by the 66 City of Seward, Alaska August 14. 2006 City Council Minutes Volume 37, Page VISTA volunteer had went in the mail, and stated there was no schedule of side roads to be paved yet from QAP, as they were working diligently to finish paving before the derby. City Attorney's Report. City Attorney Cheryl Brooking gave a synopsis of activity they assisted with from the period June 21 to July 20 2006, consisting of general matters of drafting contracts, various harbor expansion matters, proposed resolutions, ordinances and leases. They also worked on employment issues, platting, and continued litigation with the vacation of Washington Street. Brooking stated a final judgment in favor of the city was received, attorney fees and costs were requested, and they had opposed a stay with the Supreme Court. Since then, they had been successful in opposing the stay, the request for attorney fees was denied, and their request for costs prevailed. Brooking stated they sought and obtained a restraining order preventing construction on a city easement. Brooking wanted to point out a few items in the memorandum of desired policies prepared by SAAMS that was printed in this packet, and requested direction from council. ❖ There had not been any negotiations or changes on the existing document as yet. ❖ She needed direction from the council on what their essential goals for the city were. ❖ Clarify and clearly articulate the relationship, authority, and responsibility between the Alaska Sealife Center, SAAMS and the City. This would also affect how money was passed through, who would be entitle to s bleasing . es and utilization of the building after the lease had expired. ❖ Whether all subleasing mo s d S S to further their mission. Special permission was needed to do o . ❖ Three reserve funds currently required. The Operation fund, the Termination fund and the Renewal and Replacement fund. There were some changes being proposed here. 1. Change the amount in the operation fund from being determined by a P party independent at SAAMS expense. 2. Annual maintenance contributions for deferred maintenance increases. They have a change to build this fund back up. 3. Difference in operating expenses to be set aside in an operating reserve fund. ❖ PELT and audited financial statements would continue. ❖ It was SAAMS intent not to change the requirements that bind the city in regards to the Cooperative Agreement with ADF&G. ❖ Confirm the city's role in the operations of the ASLC as only oversight and protection of its own interest in the ADF&G operating agreement. ❖ SAAMS was in agreement to certain provisions of the termination fund and commitments to keep the facility operating for a period of time if the operator walked away as currently stated. ❖ No changes were being proposed to the tidelands lease amendment, although sought direction whether to remove the rent received of $8,000 a year and allow subleasing. ❖ Input needed on the city attorneys and administration's role in negotiations. ❖ If funds were to go directly to SAAMS for the ASLC, need recognition to distinguish between properties owned by each, and how to make sure money was not diverted from the city's property holdings. 67 City Council Minutes City of Seward, Alaska Volume 37, Page Au Est 14 2006 In response to questions, Brooking clarified under the proposed scenario, nothing was preventing the ASLC from purchasing land separately and walking away from the city's land. She stated the ASLC wanted to send proposed changes first, have council clarify questions, and that they had not been negotiating terms. Brooking clarified if an easement was solely for utility purposes, then a fence could be placed there subject to the easement. If the easement was used for other purposes, you could not have anything in the way. She also answered there were differences between simple leases and maintenance and operating agreements. Alternative Energy Committee Recommendation Report by Steve Schafer. The committee was recommending Administration write a letter thanking the two proposers, but declining to go forward with the coal generation project at this time. They felt they had the cart before the horse and needed technical assistance, assessments, consultants and would have to RFP the project. Port and Commerce Advisory Board Report. Ron Long reported they did not have a quorum for their last meeting, and encouraged the public to become a player in an exciting process and sign up to assist. Other Reports, Announcements and Presentations A Mile 0-8 update was give by OT Pro' ineer Allen Drake. He reported no work was going on because of the sal r e e ass waterline was delayed for materials to arrive. Curb and gutter between P o on IT start by the end of the week, with the next round of paving to begin mid- pt m r. o e str et lighting and distribution line electric work was continuing. Drake iterated the final two inches of pavement would be laid next summer with the completion date being June 15, 2007. They would do as much of the bike path as they could before project shutdown. CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING. Paul Snowden, current operator of the New Seward Hotel, spoke in support of the transfer of liquor license from the past owners to himself. He was aware of the conflict of how it had been operated in the past, and promised to be a good neighbor and responsible operator in the future. He requested council transfer this license and not consider how it was run in the past. He would be available for any questions. John French, had grave concerns about the proposed amendments ofthe SAAMS agreement that was presented by SAAMS. He was opposed to decreasing any of their responsibility or oversight. He did not believe there were innocent "pass-throughs" and maintained pass-throughs always came with responsibilities. He wrote a technical analysis that he would pass on. French reminded he was a member of EVOS, and was a direct party to discussions that resulted in funding being passed through the city. He remembered those responsibilities were not taken lightly and were necessary parts of the agreement. 68 City of Seward, Alaska August 14. 2006 City Council Minutes Volume 37, Page Paul Carter, spoke against the application for the New Seward Saloon liquor license transfer. He wanted to solve the problems of the past by the application for the future. This license was issued with an exception that allowed the New Seward Saloon to operate the liquor license off premises from the hotel. Carter stated this was not fair to other businesses who operated with ordinary beverage dispensary licenses. He asked the council not to be silent anymore and to support the ABC Board and their recommendations. Tylan Schrock addressed that the proposed SAAMS policies were a generic document to establish common ground in which to work from. He invited the council to have an open and honest discussion and have all their questions answered at a work session or open house. He continued to be flabbergasted about the history, how this had transpired, and thought Mr. French needed to do his homework. Katie Shows, from Representative Paul Seaton's office, introduced herself and announced she would be at the Legislative Information Office from 3-7 pm tomorrow. She stated Mr. Seaton was back from special session and could be reached at 1-800-665-2689 and was ready to field any questions. Tim McDonald, appreciated comments on the harbor pedestrian crossing. He thought the 15 mph sign by Peking was missing and noted tourists did not know this speed limit. He thought it should be re -installed before someo got Scott Egger, wanted to cle u theTmanager said about the Clearview easement. It was concluded to tempo rem ve encroachment because of public safety. The judge wrote that the ownership of the property was still in dispute. Egger stated legal paperwork showed the property to be his. Egger thought you could put up a fence in a utility easement, but must allow the city access unless an emergency existed. Ron Long, noted that 40' Avenue became the haul road because of the road construction on P Avenue. He thought it would be hard to make pedestrian crossings in the harbor area work, and signage would have to be clear. He didn't think you could interrupt too many intersections because of the heavy traffic. Polly Egger, said the city had put in the brightest light they could find in the street lamp in front of their house. It shined into the window, onto the TV, and kept the grandchildren awake. She remembered it had been blacked out on purpose by the city linemen to keep it from shining into homes. She suggested a shade would keep light directed downward and from shining directly into houses. Council takes a recess at 8:55 p.m. Council meeting resumed 9:05 p.m. 69 City Council Minutes City of Seward, Alaska Volume 37, Page Augustl4 2006 APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Thomas/Lorenz) Approval of Agenda and Consent Agenda The following was pulled from the agenda: Resolution 2006-090, authorizing the city manager to enter into an agreement with Tryck Nyman Hayes, Incorporated (TNH) for change order #5 to the East Harbor Expansion contract for an amount not to exceed $29,937.00 and appropriating funds for restrooms in the South Harbor. [Clerk's later changed a typo from Change Order #4 above as presented on paperwork, to #s] Approval of the liquor license transfer of ownership of New Seward Hotel/New Seward Saloon from Brad Snowden of Snow Den Enterprises to Paul Snowden of Blue Yonder LLC. The following was added to the consent agenda. Ordinance 2006-007, amending Seward City Parking Requirements 15.10.215 (o) handicapped parking to ensure compliance with the Americans with Disabilities Act (ADA). Motion Passed animous The clerk read the following approvDRA , e Ordinance 2006-007, amending Seward City Parking Requirements 15.10.215 (o) handicapped parking to ensure compliance with the Americans with Disabilities Act (ADA). (Ordinance was introduced and set for public hearing and enactment on August 28, 2006) Ordinance 2006-08, amending Seward City Code 4.05.025 (B) stating the order of placement of names and candidates on ballots will be randomly determined by the clerk and not rotated as the state adopts for their general election. (Ordinance was introduced and set for public hearing and enactment on August 28, 2006) Resolution 2006-087, authorizing the city manager execute a grant agreement between the State of Alaska and the City of Seward for the purpose of purchasing and installing wrought iron fencing along Hoben Park's north and west boundaries, and appropriating funds. Resolution 2006-088, amending the 2006 budget and appropriating $186,026 from the State of Alaska to the Public Employees Retirement System on behalf of the City of Seward, Per SB 231. Resolution 2006-089, authorizing the city manager to accept the Alaska Highway Safety Office Highway Safety Mini -Grant in the amount of $20,001.00 for the purchase of five in -car camera systems. 70 City of Seward, Alaska ... City Council Minutes Volume 37, Page The July 10, 2006 and July 24, 2006 regular city council meeting minutes were approved. PUBLIC HEARINGS Ordinances for public hearing and enactment Emergency Ordinance 2006-09, suspending the Seward City Code chapter 15.20 Signs, for an additional 60 days for the Third Avenue businesses impacted by the Mile 0-8 road construction project. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. Corbridge recommended this ordinance be passed for the same purposes and reasons as 60 days prior. Motion (ThomasBardarson) Motion Passed Resolutions requiring a Public Hearing Approve Emergency Ordinance 2006-009 Unanimous Resolution 2006-086, authorizing t an a to en r into a lease amendment with Juris Mindenbergs to extend the time all w i eme s related to the lease of Lot 3b, Block 1, Marina Subdivision, Kenai Peni a u , ewa d Recording District, Third Judicial District, State of Alaska. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. Corbridge stated the improvements were to be completed by April 1 of this year and those were not possible until 2007. Mr. Mindenberg had complied with all requirements and he recommended approval. Motion (Lorenz/Valdatta) Motion Passed UNFINISHED BUSINESS - None NEW BUSINESS Approve Resolution 2006-086 Unanimous Resolution 2006-0909 authorizing the city manager to enter into an agreement with Tryck Nyman Hayes, Incorporated (TNH) for change order #5 to the East Harbor Expansion contract for an amount not to exceed $29,937.00 and appropriating funds for restrooms in the South Harbor. [Clerk's later changed a typo from Change Order #4 above as presented on paperwork, to #5] 71 City Council Minutes City of Seward, Alaska Volume 37, Page August 14 2006 Motion (Lorenz/Bardarson) Approve Resolution 2006-90 Harbor Master Scott Ransom explained the extent of the development were restrooms by the gangway to the new south harbor and a dumpster. He wanted to get the restrooms in before the next season. Once this was put together, there would be a bid to build. Ransom pointed out this was part of the $230,000 already set aside for funding of this project. Motion Passed Yes: Lorenz Bardarson, Valdatta, Schafer No: Thomas, Schafer, Dunham Other New Business Items Approval of the liquor license transfer of ownership of New Seward Hotel/New Seward Saloon from Brad Snowden of Snow Den Enterprises to Paul Snowden of Blue Yonder LLC. Police Chief Tom Clemons did not oppose this transfer of liquor license. However, he had never heard of the exception to allow the tourism license to be operated out of a separate building before. Doug Griffin would be speaking to the ABC Board and wanted this exception removed. Clemons reminded that this license was suspended a few months ago by the ABC Board. The owners had accomplished two of thbhre equirem ly mitigating the noise plan was left. Clemons was certain Snowden's no Alth k i it were inside the hotel, because they would have to police their own. Cl too ch time with police dispatches to the New Seward Saloon and did not wisal tag He wanted it resolved. Corbridge, too, supported the transfer and did not anticipate any problems having Paul Snowden as the operator. He explained that this previously granted exception was the only one in the State of Alaska and it allowed a tourism license for the hotel to skip over an intervening lot and conduct liquor sales in another location, non -adjacent to the hotel. History tended to show that exception created significant problems. It was his view the exception should be removed, but the ABC Board may do that themselves. Schafer read a section from the Alaska Administrative Code that stated the local governing body could put conditions on the transfer and he wanted conditions for it to be in or adjacent to the hotel. Motion (Thomas/Lorenz) Motion Passed Approve the liquor license transfer from Brad Snowden of Snow Den Enterprises to Paul Snowden of Blue Yonder LLC with the condition the exception be removed. Yes: Schafer, Thomas, Bardarson, Shafer No: Valdatta, Lorenz, Dunham 72 City Council Minutes City of Seward, Alaska Volume 37, Page August 14 2006 Discussion of SAAMS' proposed amendments to the city's agreement with SAAMS. Lorenz thought it was nice that the attorney asked for direction. Lorenz wondered if the city could address their agreement with ADF&G, and have that agreement be between them and SAAMS only, leaving the city out of it. Thomas asked if the attorney would find out from ADF&G if the city could be cut out of the loop. Schafer wanted to know if it would affect the pass -through capabilities if the city was out of the loop. A work session on SAAMS proposed amendments was scheduled for Wednesday, August 23 at 7:00 p.m. Discussion on whether to continue pursuing coal generation proposals. Council decided unanimously to write a letter thanking the two proposers, but was not interested in pursuing their coal generation proposals at this time. The Alternative Energy committee was disbanded. Discussion on what to name the A ms treet Pa Valdatta and Lorenz wanted e o aFedth Seahawk pavilion after the late Bruce Sieminski's idea and thought the pu s u de Thomas, Schafer and Dunham wanted it in Margaret Branson's name as previously mentioned. Mayor Shafer informed Margaret Branson was apart of many community projects and also worked for state government. Motion (Schafer/Bardarson) Name the pavilion off Adams Street after Margaret Branson Motion Passed Yes: Bardarson, Thomas, Schafer, Dunham, Shafer No: Lorenz, Valdatta Discussion of land purchase from the Salvation Army for the Library/Museum site. Valdatta did not think it should be a big deal to pull the fuel tanks. Thomas and Bardarson stated fuel tanks could be a problem and wanted the Salvation Army responsible to remove the fuel tanks before sale, and Thomas did not understand the rush. 73 City of Seward, Alaska August 14, 2006 City Council Minutes Volume 37, Page Mayor Shafer and Dunham said the steering committee needed the purchase so they could raise money for the project. Both wanted to see this purchase take place within 30 days. Council directed Administration to do its best at accomplishing the fuel tank removal by a local contractor and have the property purchased within 30 days. INFORMATIONAL ITEMS AND REPORTS (No action required Hospital Financial Statements for June 2006. COUNCIL COMMENTS Schafer had driven big rigs through the harbor and was pleased with the courtesy given to the pedestrians crossing in that area. Bardarson welcomed Scott Williams to Seward and wanted right-of-way problems addressed, especially in the Clearview area. Lorenz congratulated the Chamber on their derby booth kick-off and thanked the Urbach family for the beautiful booth. She hoped that all would catch a big fat fish. Thomas thanked city emplo r ti to be present at the reception for the Coast Guard, and thanked the admi s f lvin the Holiday Inn rebate issue. He was disappointed that the city manager w o at e di he S S board meetings, and he thanked public works and the ARR for keeping the access roads in good shape during the road construction. Dunham wanted plans on what the city would do with the generators. When day charters and the train were loading, there were several hundred people in the harbor area. He thought there should be more places for pedestrian crossings in that area, and wanted the city to take a serious look at a pedestrian friendly block there. He congratulated the Chamber on the completion of the derby booth. Dunham asked if the AVTEC lease would be coming to them or did the city want them to purchase the land. Corbridge said the AVTEC lease agreement was still at the attorney general's office, and they had a letter of inquiry for sale that they were researching. Mayor Shafer agreed the issues in Clearview subdivision needed to be addressed. Her brothers-in-law were visiting from a small town in New York. They spoke of their community developing a park and building restrooms by donations, and she wished the community would work together for their needed projects. She also thought the new derby booth looked terrific. CITIZENS' COMMENTS Tim McDonald, thanked council for their harbor pedestrian traffic comments. He thought the roads should be routed from the railroad docks and all commercial traffic could go down railroad 74 City of Seward, Alaska City Council Minutes Vnlume 37. PaQe land. He thought the ARR had a choke hold on the city's transportation corridor. McDonald thought it was only fair and wanted them to be good neighbors. McDonald thought land could be pursued for the Mary Lowell Center from the liquor license people. He said if that did not happen, he would renew the prosecution to not accept the vacation of Washington Street. He also wanted to preserve the valuable historic building of Solly's. Paul Snowden, wanted it noted that council member Schafer had made an inquiry on purchase of the New Seward Saloon property, and thought that was a conflict of interest. Tylan Schrock, apologized for speaking up during the meeting which encouraged Tim McDonald to do the same thing. He stated the City and SAAMS was a shotgun wedding but not a divorce. He said the EVOS stipulation was the city would own the building. Schrock stated SAAMS was not proposing any changes to go against the ADF&G or EVOS requirements, nor removing all city protections and oversights. He wanted to create an agreement that matched today's needs and offered to do an audit if needed. He suggested all go back to each agreement. It was their intent to cover all liabilities and responsibilities. Schrock stated the administration felt SAAMS was in default and he vehemently disagreed. Polly Egger said she recently had nine visitors in a small house during all the rain. She stated the neighborhood parks had been wonderful to utilize. The harbor people had been courtesy, fishing was good and the walkway w gre EAok t was nice to have a few things in town to do on rainy days. Scott Egger, thought this to 0 1 othr way past the three bridges out of town, or a way to re-route bigger traffic. Eventually the city would have problems getting all evacuated out of town. He thanked the Mayor and Bardarson for bringing up the right-of-way issues in Clearview. He stated owners were carrying the liability on those properties. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS Valdatta thought the Railroad should put an emergency access road in. Lorenz commented that the last SAAMS work session was a heated discussion. She thought that being on the board was a political issue and it was not appropriate to have administration on that board. She did think it was appropriate to have a council member on it though. Mayor Shafer remembered there were four council members who wanted Mr. Corbridge to take that seat on the SAAMS board. Dunham wanted easement issues in town cleared up. He did not think it was an even deck for the residents to be playing on. Mayor Shafer thought the easement issues in the Clearview area should be looked at first. 75, City Council Minutes City of Seward, Alaska Volume 37, Page August14 2006 Schafer wanted reports from employees that go out to training to see where moneywas being spent. He stated he met with Mr. Snowden but was not interested in owning the property. ADJOURNMENT The meeting was adjourned at 10:53 p.m. Jean Lewis Vanta Shafer City Clerk Mayor (City Seal) 76 8/17I2006 3:29 PM DET OPS Run Date - 8117106 @ 3:29 PM Providence Health & Services 110 - MGD - PROV SEWARD MED CTR Detail Statement of Operations (in Thousands) Reported as of July 2006 % Variance Actual MTD Budget MTD MTD 88 106 (17.0%) 589 487 20.9% 145 227 (36.1%) 567 624 (9.1 %) 23 17 35.3% 1,412 1,461 (3.4%) % Variance Last Year % Variance Actual YTD Budget YTD YTD Actual YTD YTD Gross Service Revenues: Acute Care -Inpatient 720 654 10.1% 566 27.2°% Acute Care -Outpatient 2,638 832 2,540 3.9% 964 (13.7%) 2,393 920 10.2 /o (9.6%) Primary Care Long-term Care 3,704 4,270 (13.3%) 3,781 (2.0%) Homecare & Hospice 136 128 6.3% 101 34.7% Housing & Assist. Living Total Gross Service Revenues 8,030 _ 8,556 (6.1%) 7,761 3.5% Revenue Deductions: 23 25 8.0% Charity Care Medicaid Charity 1 187 99.5% Medicare & Medicaid 8 8 Negotiated Contracts 60 54 (11.1%) Other 92 274 66.4% Total Deductions 1,320 1,187 11.2% Net Service Revenue - Premium Revenue - Rental and Education Revenue 10 12 16.7% Other Operating Revenue 1,330 1,199 10.9% Total Net Operating Revenues EXDenses from Operations: 544 576 5.6% 122 150 18.7% 66 56 (17.9%) 89 171 48.0% 61 53 70 28 12.9% (89.3%) 935 1,051 11.0% 935 1,051 11.0% 395 148 166.9% 395 148 166.9% Purchased and Healthcare Expenses Other Expenses from Operations Salaries & Wages Employee Benefits Professional Fees Supplies Purchased Service Depreciation Interest and Amortization Bad Debts Healthcare Taxes Other Expenses Total Other Exp from Operations Total Operating Expenses Operating Income (Loss) Non -Operating Gain (Loss) Net Income (Loss) Other Activity -Unrestricted 53 147 63.9% 139 61.9% 930 1.190 21.8% 1,190 21.8% 58 33 (75.8%) 26 (123.1%) 301 259 (16.2%) 240 (25.4%) 1,342 1,629 17.6% 1,595 15.9% 6,688 6,927 (3.5%) 6,166 8.5% 1 154 83 85.5% 71 116.9% 6,842 7,010 (2.4%) 6,237 9.7% 3,547 3,749 5.4% 3,444 (3.0%) 936 1,011 7.4% 933 (0.3%) 2 357 385 7.3% 365 2.2% 1,159 1,190 2.6% 1,172 0 1.1 0 353 411 14.1 % 400 11.8% 278 276 (0.70 323 13.9% 6,632 7,022 5.6% 6,637 0.1% 6,632 7,022 5.6% 6,637 0.1% 210 (12) 1.850.0% (400) 152.5% 2 2 0.0% 2 0.0% 212 (10) _ 2,220.0% ___ 398 ------153.3% 8/17/2006 3:29 PM BAL PRELIM - Run Dale - 8/17/06 @ 3:29 PM Providence Health & Services _SHT 110 - MGD - PROV SEWARD MED CTR Balance Sheet (in Thousands) Reported as of July 2006 ASSETS Current Assets: Cash and Cash Equivalents Temporary Investments Accounts Receivable, Net Affiliate Receivable Premiums Receivable Other Receivables Supplies Inventory at Cost Other Current Assets Current Port. of Assets -Use is LTD Total Current Assets Assets Whose Use is Limited: Board Designated Cash and Investments Funds Held for Long-term Purposes Gift Annuity and Trust Funds Funds Held by Trustees Go Non -Current Assets Limited as to Use Property. Plant & Eauipment Gross Property, Plant & Equipment Less: Accumulated Depreciation Net Property, Plant & Equipment Other Assets: Unamortized Financing Cost Interaffiliate Notes Receivable Other (lnci. Long-term Investments) Total Other Assets Total Assets July 2006 December 2005 Actual Last Year 1,345 1,611 122 50 1,772 1,535 80 45 3,128 3,432 253 169 253 169 3-381 3,601 LIABILITIES & NET ASSETS Current Liabilities: Accounts Payable Accrued Compensation Affiliates Payable Payable to Contractual Agencies Deferred Revenue/Unearned Premiums Liability for Unpaid Medical Claims Liability for Risk -Sharing Other Current Liabilities Current Portion of Long-term Debt Total Current Liabilities Lona-Term Debt: Master Trust Debt Loans from Affiliates Other Long -Term Debt Other Long -Term Liabilities Total Liabilities Net Assets: Unrestricted Temporarily Restricted Permanently Restricted Total Net Assets Total Liabilities and Net Assets 1 July 2006 December 2005 Actual Last Year 163 156 637 634 223 372 1,319 1,810 2,342 2,972 253 55 2,595 3,027 786 574 786 574