Loading...
HomeMy WebLinkAbout12132010 City Council Packet Seward City Council , o f s. : Agenda Packet ,..,,..„,„..„,.,..,. ...,,,,„., ,-.•,,. ,ifil . A 41 Aca ..,...,, „VA. -, ,• Ir l ' i , i ' • ' ,, ' II' 1, II'!"‘ -.#2,17,,Zoli, , ,:',1 itAA. ‘, ,..,;\ -74-.i. ....mitb;,/ ..,,,,.. ` ' '''/,' ',I , '.. •-• .- . ' : ` - `1CAZkiii'llily0-44,1ict; :‘ , °,,T^t.,,f- ' '.• , . . , .., ,;,....!,..:N. t0...":114t )... . , ,.. ,I' ' • 'i . A ' ';' , , ' . ' 114 ',„; ,''' - NI% $0'.4 ..., . --40,„ . y IP; ‘' ` -,,` kgif 'T ' - t ',' : L v J • - 1 l ‘i'4,4 ',„ .0' P t II ' „.4tr 4- ' ` ' ' , li i I • ,- O ', . , -',.. ,I ,„,■ . (I r.t 0 , ,. ','. . ,,,o; ,,, ' 1 k , .. \ i . 0 4414. Li•••.,... , • ' ' '.' 1 k. , ,.........,, v, ............,:t ..... .„. ......_....,,......,„..v,..,_...:..„,..4,4,..w.#....,.._... ..440,,,,,.ii:..,,-, '. 44 Vt,,i - ' '-' I t4 , ..41 - , i . ,:, ',. .. wdirt -ait - k. ,,,F,.. . r. ,:;.:.:. ::: : ,45 77 , 60. - ,;' ,..4; ,, - 7 , -e ., . .Aw'pli. ,!.';': c rt ' ' %, • ‘ IV" '.- '. ,,.... ,__., , Aar.„1". , -,,, 7 10 .E0.:, , - ` • ..,• „ .,..• --,•-•:-- :;•-••• ‘., .•„;.- • .1,,, . ‘-..., • ,,....„---,.....,.. .. , . -,----,-:-, - .,•,i.a •-- .„,,,„,,-.4, .0.7,:„. _ •,, - ,,, - .•-•, .- :1-..,, , w , F , ` -,- --.L •- ....;;;;.- -, .4.x.„---,.„-A 6 r• if .. i r ' :/ -.1 - . ' ''' V.ria;'''Z,-- ".t i011.' .- t • * I '; '- ' . ' ::: %... w ilkwar,, • ta'- ,,,,..„'-':":.;,-.. 1 ! J ;1 : . - , - '''', - : ' ,,!,-.' .-."--.. '‘ ill -: • '',; — ',.,,, `)/'•,*.` . ' " t -'''''.;:et',#/for4'.,,i '. i . i' , ,,,- ,..,,, ; ,....-74k- - -..,,,'.- =' , - . „-..:- - •-• ; - . _ -;-,. 7, :„...,- - -mr • • i •AP ta,k4R-L,Toote ._. - i •- ; -- - ..::' , "•:: - .01U,-Iv-t•: ,, • -,. , ' - - - ,,,,... _ .. ,,,,,, .., : - -.,:::::::•-4. .-.•,, - W3-;',-.4preroc,, - ---- - .1; , ' 1. •••••• s - . '..-- -.. ' . n ' ' - \," _ 7P k.r:': — ' , . ‘,.. A , ''' ,,., , . * . IV ''.* , ' 1. °' 1,1 ,,-.,.- -..--.. , • ,,..\,::•--.‘, / • , .,..7•••• • • - -''':-*. ','1, ' -,• :i: ',':..-:•; Z'.. '1 - • " • tr«' r' Ir ':::: - '::-: ' .,' ..tv: r -, ,.. -.- • ,,, t•40. - : '''' ., ,.. "Lowell & Pat Williams House, aka Old Harbor Dinner Club". December 13 City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward, Alaska CITY COUNCIL MEETING AGENDA '' All-America C f 11' {Please silence all cellular phones and pagers during the meeting} 44a December 13, 2010 7:00 p.m. Council Chambers 1. CALL TO ORDER Willard E. Dunham 2. PLEDGE OF ALLEGIANCE Mayor 3. ROLL CALL Term Expires 2011 4. CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING. Jean Bardarson [Those who have signed in will be given the first opportunity to Vice Mayor speak. Time is limited to 2 minutes per speaker and 30 minutes total Term Expires 2012 time for this agenda item.] 5. APPROVAL OF AGENDA AND CONSENT AGENDA Robert Valdatta [Approval of Consent Agenda passes all routine items indicated by Council Member asterisk ( *). Consent Agenda items are not considered separately Term Expires 2011 unless a council member so requests. In the event of such a request, the item is returned to the Regular Agenda] Tom Smith Council Member 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Term Expires 2011 A. Proclamations and Awards 1. Mike Moore EMS Provider of the Year Pg. 4 Vanta Shafer B. Borough Assembly Report Council Member C. City Manager's Report Term Expires 2011 D. City Attorney Report E. Mayor Report Marianna Keil F. Other Reports and Presentations Council Member Term Expires 2012 1. Representative Seaton 15 minute Power Point Presentation on Health and Wellness Public Policy. Ristine Casagranda Council Member 7. PUBLIC HEARINGS Term Expires 2012 A. Ordinances for Public Hearing and Enactment Phillip Oates 1. Ordinance 2010 -008, An Ordinance Of The City Council Of The City Of City Manager Seward Alaska Establishing The Seward Community Health Center Board Of Directors .Pg, 8 Jean Lewis City Clerk 8. UNFINISHED BUSINESS - None Cheryl Brooking City Attorney City of Seward, Alaska Council Agenda December 13, 2010 Page 1 9. NEW BUSINESS A. Ordinances for Introduction *1. Ordinance 2010 -009, Amending Seward City Code Section 5.35.055 To Create A Revenue Source For Repayment Of The $3.73m General Obligation Bond For Construction Of The Seward Community Library Museum By Establishing A Variable Seasonal Sales Tax That Increases The City Of Seward Rate To 5% During April Through September Of Each Year And Reduces The Rate To 3% In October Through March Of Each Year Pg. 10 B. Resolutions for Introduction (For public notice purposes. Not for adoption tonight. To bring with above ordinance for public hearing on January 10, 2011) *1. Resolution 2010 -130, Establishing A 1 Mill Increase In Property Tax To Generate A Revenue Source For Repayment Of The $3.73m General Obligation Bond For The Construction Of The Seward Community Library Museum Pg. 15 C. Resolutions *1. Resolution 2010 -118, Repealing Resolution 2007 -094 And Adopting A Revised Records Retention Schedule For The City Of Seward .Pg. 19 *2. Resolution 2010 -119, Amending The 2010 Budget To Record Expenditures Of $127,557.38 Paid By The State Of Alaska On Behalf Of The City Toward The City's Public Employees Retirement System Liability, Per HB81 .Pg. 35. *3. Resolution 2010 -120, Adopting An Alternative Allocation Method For The Fy2011 Shared Fisheries Business Tax Program, And Certifying That This Allocation Method Fairly Represents The Distribution Of Significant Effects Of Fisheries Business Activity In The Cook Inlet Fisheries Management Area Pg. 41 *4. Resolution 2010 -121, Authorizing The City Manager To Appropriate Additional Funds To Complete The VOIP /PBX Installation For The City Of Seward, Providence Seward Medical Center And Seward Mountain Haven In The Amount Of $20,643.65 Pg. 45 5. Resolution 2010 -122, Appointing Individuals To Serve As Charter Members Of The Seward Community Health Center Board Of Directors Pg. 52 *6. Resolution 2010 -123, Authorizing The City Manager To Enter Into A Contract With Harris Sand And Gravel For An Amount Not To Exceed $42,000 For Repairs To T Dock And Appropriating Funds . Pg. 56 7. Resolution 2010 -124, Amending The 2010/2011 Biennial Budget To Reflect Mid -Cycle Budget Changes To The Electric Enterprise Fund Only, And Appropriating Funds Pg. 77 8. Resolution 2010 -125, Amending The 2010/2011 Biennial Budget To Reflect Mid -Cycle Capital Budget Changes. Pg, 82 City of Seward, Alaska Council Agenda December 13, 2010 Page 2 9. Resolution 2010 -126, Authorizing The City To Become A Member Of The Alaska Railbelt Cooperative Transmission & Electric Company, Inc., A Non - Profit Cooperative; Appointing Two Directors As Representatives Of The City; Authorizing Articles Of Incorporation To Be Executed And Filed; And Approving Bylaws For The Cooperative...Pg. 92 10. Resolution 2010 -127, Authorizing The City Manager To Enter Into Amendment Number Three With RISE Alaska, LLC (RISE) For Professional Project Management Services Through 100% Design For The New Co- Located Library Museum Facility, Appropriating Additional Funding Not -To- Exceed Forty Eight Thousand Forty Eight Dollars ($48,048) Pg.124 11. Resolution 2010 -128, Authorizing The City Manager To Enter Into Amendment Number Two With ECl/Hyer Inc. For Professional Construction Documents Basic Services For The New Co- Located Library Museum Facility, And Appropriating Additional Funding Not -To- Exceed Four Hundred Two Thousand Five Hundred Ninety One Dollars ($402,591) Pg. 129 12. Resolution 2010 -129, Authorizing The Issuance And Sale Of General Obligation Bonds In The Aggregate Principal Amount Of Not To Exceed $3,730,000 To Pay The Costs Of Library /Museum Capital Improvements In The City, Fixing Certain Details Of Such Bonds, And Pledging The Full Faith And Credit Of The City To The Payment Thereof Pg. 143 C. Other New Business Items *1. Approval Of The November 22, 2010 City Council Regular Meeting Minutes Pg. 169 *2. Cancel the December 27, 2010 regular city council meeting .Pg. 175 *3. Approve the Restaurant Eating Place Public Convenience Liquor License renewal application for Railway Cantina and Oriental Garden .Pg. 176 4. Schedule a work session with the Ad -Hoc Land Committee. 5. Vote and Appoint two applicants to the Port and Commerce Advisory Board. Applicants are: Bruce Jaffa, Russ Maddox and Robert Linville Pg. 187 *6. Agree to sign letter RE: competing applications for CHC between City and Chugachmuit Pg. 193 10. INFORMATIONAL ITEMS AND REPORTS (No action required) A. Mayor thank you letter to Principal Kingsland re: Veterans Day Program. Pg. 194 11. COUNCIL COMMENTS 12. CITIZENS' COMMENTS [5 minutes per individual - Each individual has one opportunity to speak] 13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS 14. ADJOURNMENT City of Seward, Alaska Council Agenda December 13, 2010 Page 3 PROCLAMATION WHEREAS, each year, the Governor's Awards honor those for their dedicated service in the State of Alaska; and WHEREAS, on November 12, 2010 the Governor's Annual Awards for Emergency Medical Services were given in Anchorage; and WHEREAS, among the award recipients was Seward's very own Michael Moore, who was presented with the EMS Provider Award; and WHEREAS, Moore was recognized and honored for his more than 25 years of dedication to the Seward Volunteer Ambulance Corps, and his many contributions to the surrounding communities; and WHEREAS, the City of Seward would like to take this opportunity to show its appreciation and give sincere congratulations to Michael Moore on winning this prestigious and well- deserved award. The City Council is thankful for his commitment and tireless efforts to his community. NOW THEREFORE I, Willard E. Dunham, Mayor of the City of Seward, do hereby present this proclamation to Michael Moore with sincere gratitude and appreciation for his contributions to emergency medical services and to this community. Dated this 13 day of December, 2010. Willard E. Dunham, Mayor City of Seward, Alaska LI Sponsored by: Oates Introduction: November 22, 2010 Public Hearing: December 13, 2010 Enactment: December 13, 2010 CITY OF SEWARD, ALASKA ORDINANCE 2010 -008 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ESTABLISHING THE SEWARD COMMUNITY HEALTH CENTER BOARD OF DIRECTORS WHEREAS, the City Council approved Resolution 2010 -109 on November 8, 2010 directing the City Manager to submit an application for Federal Funding to establish a Federal Qualified Community Health Center; and WHEREAS, the federal statutes and regulations regarding Federal Qualified Community Health Centers requires that where a City partners with a nonprofit community health center, the initial board of directors should be appointed by the City; and WHEREAS, the City Council published a notice to the public on November 2, 2010, seeking applicants from the community to be appointed by the City Council to the board of directors for a nonprofit community health center; and WHEREAS, Seward City Code Chapter 2.35 Indemnification, shall not apply to this Board of Directors; and WHEREAS, the City Council has received applications from various persons within the community wishing to serve on the board of directors of the nonprofit community health center; and WHEREAS, the City Council finds that it is in the best interests of the City of Seward to appoint persons to the board of directors of the nonprofit community health center. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Section 1. Chapter 2.40 ESTABLISHMENT OF SEWARD COMMUNITY HEALTH CENTER BOARD of Title 2 of the code of the City of Seward, Alaska is hereby added to read as follows: 2.40.010 Purpose. It is the purpose of this chapter to authorize and appoint the initial board of directors for an independent non - profit entity to operate a community health center in Seward. The city intends to work cooperatively with such entity to improve access to primary health care in the community, pursuant to Section 330 of the Public Health Service Act (42 U.S.C. § 254b). I- '" 3 CITY OF SEWARD, ALASKA ORDINANCE 2010 -008 Page 2 2.40.020 SCHC Board. A. There is established the Seward Community Health Center ( "SCHC ") Board of Directors ( "Board "). The initial members of the Board shall be appointed by city council. Chapter 2.35 Indemnification of the Seward city code does not apply to this Board. The Board shall have the power to develop and vote on the annual budget of SCHC, the policies and procedures of SCHC, and the hiring of an Executive Director. B. The Board shall consist of nine to twenty -five persons having an interest in the health and behavioral health care needs in the City of Seward and surrounding area. A majority of the Board shall be served by the SCHC and shall, as a group, be representative of the area served by SCHC in terms of demographic terms such as age, gender, race, and ethnicity. No more than 50% of the board members who are not consumers of SCHC services may earn more than 10% of their annual income from the health care industry. No board member may be an employee of SCHC or the spouse, child, parent, brother or sister of a SCHC employee. Board members or their families may not have business relationships or conflicts of interest with SCHC. The Board shall not have access to confidential patient records. C. Each board member shall be appointed for a term of three (3) years or the unexpired portion of his or her predecessor's term. Board officers, including the Chairperson, Vice Chairperson and Secretary shall be elected for a term of one (1) year or the unexpired portion of his or her predecessor's term. D. Board members serve at the pleasure of the Board and may be removed from the office for the best interests of SCHC as the Board deems sufficient, including when a member: 1. Moves outside of the area served by SCHC; 2. Is absent from three (3) consecutive meetings or from three (3) meetings within a six (6) month period without an excuse that is acceptable to the Board; or 3. Is convicted of a felony offense, or an offense involving a violation of the duties of the office. 2.40.030 Powers and Duties of the Board. A. The Board shall create SCHC consistent with the requirements of community health centers under Section 330 of the Public Health Service Act (42 U.S.C. § 254b), and shall appoint an Executive Director for SCHC, who shall serve at the pleasure of the Board. The Executive Director shall be an ex- officio nonvoting member of the Board. B. The Board shall be authorized to: 1. Select the services to be provided 2. Determine the hours during which services will be provided 3. Hire an Executive Director of the SCHC. F CITY OF SEWARD, ALASKA ORDINANCE 2010 -008 Page 3 4. Prepare and adopt an annual budget, subject to city council approval, except that if the Board's failure to approve the annual budget is unreasonable, the City may still submit the annual funding request under Section 330 of the Federal Public Health Service Act. The SCHC board shall, no later than October 1 of each year, submit to the city council a proposed budget for the following fiscal year. No budget shall become effective without council approval. 5. Establish general policies for the SCHC except where the human resource management and fiscal policies of the City may apply. 6. Employ or be responsible for the employment of SCHC employees, and supervise and coordinate the personnel policies and practices applicable to such employees. 7. Perform other duties as the City Council may request. C. Board meetings shall be subject to the following: 1. The Board shall elect annually from its members a chairperson to conduct the affairs and meetings of the Board and a Vice Chairperson to act in the absence of the Chairperson. The Executive Director shall choose an SCHC staff person or other person to provide administrative support to the Board. 2. The Board shall generally meet monthly but no less than 12 times per year. All meetings may be attended via teleconference. 3. Special meetings may be called at any time by the Executive Director, the Board Chairperson, or by a signed petition of a majority of the Board members. A Board meeting will be held with two (2) weeks of such a request. 4. Board members may vote at regular or special meetings when a quorum is present. A quorum is present when a majority of the Board (at least 51%) is in attendance at the meeting. Each member shall be entitled to one (1) vote. No proxy votes will be accepted. Action will be taken upon affirmative vote of the majority of the Board, at a meeting where a quorum is present. 5. The elected secretary, or a member appointed when the secretary is absent, will keep minutes of regular meetings. Program staff shall prepare, distribute, and file minutes of each Board meeting. Minutes of the previous Board meeting will be reviewed and approved at the beginning of each Board meeting. Board minutes shall be made available to SCHC staff and members of the public upon request. 6. All SCHC Board meetings shall be open to the public. 7. The Board may hold an executive session that is closed to the public for specific actions requiring the protection of information, such as discussions about pending litigation, protected health information, personnel evaluations or proprietary business information. 2.40.040. City Powers and Duties. A. The city shall have access to SCHC records necessary to assure that the SCHC operations comply with applicable Federal, State and local laws and regulations. The Board shall _ . 7 CITY OF SEWARD, ALASKA ORDINANCE 2010 -008 Page 4 cause SCHC to file for independent non profit 501(3)(c) status with the Internal Revenue Service. B. The city shall have the right to approve the selection of an executive director of SCHC. C. The city council shall have the right to approve financial management policies for the SCHC, assure accountability for SCHC resources, approve the annual SCHC project budget, and provide long range financial planning for SCHC. Section 2. This ordinance shall take effect ten days following its enactment. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13 day of December, 2010. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, CMC City Clerk (City Seal) COUNCIL AGENDA STATEMENT � s e wq • ltgs1� Meeting Date: December 13, 2010 From: Phillip Oates, City Manager /" !/p Subject: Adoption of an Ordinance Relating to the Seward Community Health Center and Appointing the Initial Directors BACKGROUND & JUSTIFICATION By approving Resolution 2010 -109, the City Council directed the City Manager to submit an application for federal funding to establish a Federally Qualified Community Health Center in Seward. Providence contributed the services of JimmyNg to assist in preparing organizational documents for an independent nonprofit entity expected to operate the City's health center. The organizational documents and the City's proposed ordinance establishing the initial board were prepared in light of guidance provided by Resolution 2010 -109, City Charter requirements, Alaska Statutes governing nonprofit corporations (AS 10.20), Section 501(c)(3) of the federal tax code, and Section 330 of the Public Health Services Act (42 U.S.C. §254b). An initial application for a Federally Qualified Community Health Center was submitted by the November 15, 2010 deadline. An ordinance establishing the initial board of directors must be adopted by the City Council, and then the City can work with the newly created nonprofit entity to complete the application process. CONSISTENCY CHECKLIST Yes No N/A 1. Comprehensive Plan X Economic Development... 2. Strategic Plan X Economic Base... FISCAL NOTE: We expect there will be start up costs associated with the new CHC. The magnitude of those costs is unknown and many of those costs may be reimbursable. In the meantime, we anticipate utilizing the $500,000 in funding we have currently reserved fr fu / d b lance for start-up. Approved by Finance Department: , . A., /a /7 /sic INTENT: The intent of this ordinance is to allow for the establishment of the Board of Directors for the Seward Community Health Center and identify prospective board members for future consideration by the Board of Directors of the Seward Community Health Center. CONSISTENCY CHECKLIST Where applicable, this ordinance is consistent with guidance and directives in the Seward City Code, City Charter, Comprehensive Plans, Land Use Plans, Strategic Plan, and the City Council Rules of Procedures. ATTORNEY REVIEW Yes RECOMMENDATION a Council approve Ordinance 2010 - U establishing the Seward Community Health Center Board of Directors. 9 Sponsored by: Oates Introduction: December 13, 2010 Public Hearing: December 13, 2010 Enactment: January 10, 2010 CITY OF SEWARD, ALASKA ORDINANCE 2010 -009 A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE SECTION 5.35.055 TO CREATE A REVENUE SOURCE FOR REPAYMENT OF THE $3.73M GENERAL OBLIGATION BOND FOR CONSTRUCTION OF THE SEWARD COMMUNITY LIBRARY MUSEUM BY ESTABLISHING A VARIABLE SEASONAL SALES TAX THAT INCREASES THE CITY OF SEWARD RATE TO 5% DURING APRIL THROUGH SEPTEMBER OF EACH YEAR AND REDUCES THE RATE TO 3% IN OCTOBER THROUGH MARCH OF EACH YEAR. WHEREAS, the City of Seward and the Seward Community Library Museum Building Committee have been working since 2003 to obtain funding and design a new library museum; and WHEREAS, the Seward Community Library Museum Building Committee and the City of Seward have secured $5.1 Million in state and private foundation funding and $1.1 Million in grant applications are pending; and WHEREAS, in October 2009 voters approved a General Obligation bond in an amount to $5 Million for construction of the library museum; and WHEREAS, City Administration and project managers have estimated that $3.73 Million will be needed to complete the project as currently projected; and WHEREAS, the annual debt service for a 25 -year $3.73 Million General Obligation Bond at an interest rate of 4.5% is approximately $249,000 per year WHEREAS, a revenue source is necessary to establish and pay the debt service of a General Obligation Bond; and WHEREAS, a sales tax is a revenue source where city residents, local residents, and visitors all contribute to the construction and operations costs of the new library museum; and WHEREAS, the current City of Seward sales tax rate is 4% and is combined with a Kenai Peninsula Borough sales tax rate of 3% for a total rate of 7 %; and WHEREAS, a variable seasonal sales tax that increases the current City of Seward sales tax 1% to a rate of 5% from April through September and decreases the current City of Seward sales tax 1% to a rate of 3% from October through March would generate approximately $348,000 in additional tax revenue each year for the City; and WHEREAS, the variable seasonal sales tax would result in a total Borough and City sales tax rate of 8% from April through September and 6% from October through March; and WHEREAS, the variable seasonal sales tax proposed above would keep year -round taxes at current levels for full -time residents of Seward when their purchases are spread equally throughout all months of the year; and WHEREAS, the combined Kenai Peninsula Borough and City of Seward variable seasonal sales tax of 8% from April through September and 6% from October through March is expected to provide sufficient revenue to repay principal and interest on a 25 year $3.73 Million General Obligation Bond, allow completion of the new library museum project, and provide approximately $99,000 annually to assist in paying for the increases in personnel and operating costs for the new library museum; and WHEREAS, the current City Council of the City of Seward recommends to a future City Council that this sales tax change should sunset when the $3.73 Million General Obligation Bond is paid in full. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Section 1. Seward City Code Section 5.35.055 is amended as follows (strike out = deletions; bold italics = additions): 5.35.055. Computation; addition of tax to total retail price; tax schedule. (a) The amount of the sales tax to be added to the sales price, charge or rental shall be three (3) percent from October 1 through March 30 and five (5) percent from April 1 through September 30 of the sale price, charge or rental rounded off to the nearest cent by eliminating any fraction of one -half cent or less and by increasing any fraction over one -half cent to the next highest cent. Each seller shall be furnished the schedule of tax payable on each taxable amount from $0.01 to $100.00. Any one sale of items separately priced shall be taxed upon the aggregate amount. Beginning April 1, 2003, (b) The revenue from a coin - operated machine shall be treated in gross on a monthly basis, without reference to the amount paid or placed on a particular transaction. air. Section 2. Theses changes to the City of Seward sales tax rates are for the purpose of paying the annual debt service for a 25 -year $3.73 Million General Obligation Bond to complete the library museum project. Section 3. Section 1 of this ordinance shall become effective April 1, 2010. This ordinance shall take effect 30 days following passage and posting.. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10th day of January, 2011. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney City Clerk (City Seal) 2 Council Agenda Statement r 40f S Fk► Meeting Date: December 13, 2010 ' .,. - From: Phillip Oates, City Manager 4 ltasKP Agenda Item: A ordinance of the City Council of the City of Seward, Alaska, amending Seward City Code Section 5.35.055 to create a revenue source for repayment of the $3.73M General Obligation Bond for construction of the Seward Community Library Museum by establishing a variable seasonal sales tax that increases the City of Seward rate to 5% during April through September of each year and reduces the rate to 3% in October through March of each year. BACKGROUND & JUSTIFICATION: Since 2003, the City of Seward has been working on a plan to build a new library museum. As of November 2010 architects completed design documents to 65% with a goal of completing construction documents in January, ground breaking in April -May 2011, and completion of the project in August 2012. Project and construction management have been hired. The Seward Community Library Museum Building Committee (SCLMBC) has spearheaded project predevelopment activities and fundraising efforts. SCLMBC and City Administration have presented over thirty Resolutions to Council since 2003 that either supported, funded or authorized the project progress. As a result, the City received an appropriation of $4.7M from the State of Alaska in July. The Rasmuson Foundation committed $500,000 in November and $1.1M in grant applications have been submitted. In October 2009 voters approved a General Obligation (GO) bond in an amount to $5 Million for construction of the library museum. Since that approval, City Administration and project managers have estimated that as currently projected $3.73 Million will be needed to complete the project. This ordinance requests that the City Council create a variable seasonal sales tax as a source of revenue to repay the proposed $3.73M GO bond as the City of Seward portion of the cost of constructing the library museum. A sales tax is a revenue source where city residents, local residents, and visitors all contribute to the construction and operations costs of the new library museum The annual debt service for a 25 -year $3.73 Million General Obligation Bond at an interest rate of 4.5% is approximately $249,000 per year. A variable seasonal sales tax that increases the current City of Seward sales tax 1% to a rate of 5% from April through September and decreases the current City of Seward sales tax 1% to a rate of 3% from October through March would generate approximately $348,000 in additional tax revenue annually for the City. Such a variable seasonal sales tax would result in a total Borough and City sales tax rate of 8% from April through September and 6% from October through March. This variable seasonal sales tax would keep year -round taxes at current levels for full -time residents of Seward when their purchases are spread equally throughout all months of the year. k) The City of Seward variable seasonal sales tax of 5% from April through September and 3% from October through March is expected to provide sufficient revenue to repay principal and interest on a 25 year $3.73 Million General Obligation Bond, allow completion of the new library museum project, and provide approximately $99,000 annually to assist in paying for the increases in personnel and operating costs for the new library museum. The proposed ordinance also establishes a recommendation from the current City Council to a future City Council that this sales tax change should sunset when the $3.73 Million General Obligation Bond is paid in full. 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. INTENT: This ordinance requests that the City Council create a variable seasonal sales tax as a source of revenue to repay the proposed $3.73M GO bond as the City of Seward portion of the cost of constructing the library museum. ATTORNEY REVIEW: Yes FISCAL NOTE: The variable seasonal sales tax covers capital debt annual payments and provides approximately $99,000 per year for increased personnel, maintenance, and operating costs of the new library museum. Estimated additional annual personnel, maintenance, and operating costs - as noted in the business plan - are $260,000. This leaves a shortfall of approximately $161,000 dollars each year since annual funding to cover the remainder of these costs has not been identified. The City Council intends to address this matter during the preparation of the biennial budget. To cover costs of this magnitude would require, for example, an increase in the mill rate of 0.54 mills equal to $108 per year on a house valued at $200,000 or, alternatively, a 0.18 percent increase in the sales tax rate. Approved by Finance Department Jet RECOMMENDATION: Approve Ordinance 2010- 06 to establish a variable seasonal city sales tax as a revenue source to pay the debt service of a $3.73M GO Bond for the library museum project. 0. 4 Lt Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -130 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ESTABLISHING A 1 MILL INCREASE IN PROPERTY TAX TO GENERATE A REVENUE SOURCE FOR REPAYMENT OF THE $3.73M GENERAL OBLIGATION BOND FOR THE CONSTRUCTION OF THE SEWARD COMMUNITY LIBRARY MUSEUM. WHEREAS, the City of Seward and the Seward Community Library Museum Building Committee have been working since 2003 to obtain funding and design a new library museum; and WHEREAS, the Seward Community Library Museum Building Committee and the City of Seward have secured $5.1 Million in state and private foundation funding and $1.1 Million in grant applications are pending; and WHEREAS, in October 2009 voters approved a General Obligation bond in an amount of not to exceed $5 Million for construction of the library museum; and WHEREAS, in a report to City Council on November 29, 2010, RISE Alaska and ECI /Hyer estimated the remaining capital construction costs for the library museum project to be $10,294,560.City Administration and project managers have estimated that $3.73 Million of additional funding in the form of general obligation bonds will be needed to complete the project as currently projected; and WHEREAS, the annual debt service for a 25 -year $3.73 Million General Obligation Bond at an interest rate of 4.5% is approximately $249 Thousand per year WHEREAS, a revenue source is necessary to establish and pay the debt service of a General Obligation Bond; and WHEREAS, a property tax is a revenue source where property owners in the City of Seward contribute to the construction and operations costs of the new library museum; and WHEREAS, the current City of Seward property tax mill rate is 3.12; and WHEREAS, increasing the current City of Seward property tax mill rate from 3.12 to 4.12 for approximately 600 property owners within the city limits will generate an estimated $300 Thousand annually. d am. x0 CITY OF SEWARD, ALASKA RESOLUTION 2010 -130 WHEREAS, an increase in the City of Seward property tax mill rate to 4.12 is expected to provide sufficient revenue to repay a 25 year $3.73 Million General Obligation Bond, allow completion of the new library museum project, and provide approximately $51 Thousand to assist in paying for the increases in personnel and operating costs for the new library museum; and WHEREAS, a one mill increase in property tax rate will equate to an annual increase in tax of $200 on a home valued at $200,000; and WHEREAS, the current City Council of the City of Seward recommends to a future City Council that this mill rate increase should sunset when the $3.73 Million General Obligation Bond is paid in full. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1.The rate of levy on the 2011 real and personal property tax rolls shall be and is hereby levied at the rate of 4.12 mills per dollar of assessed valuation in Municipal Service Zones One (Borough designation TCA 40) and Two (Borough designation TCA 41). Section 2. The total assessed valuation as determined by the Kenai Peninsula Borough Assessor, and any supplemental assessment rolls for said period which may be certified by the Borough Assessor at a future date, shall be the basis for computing estimated property tax revenues for the City of Seward, Alaska. Section 3.The additional funds realized from the increased tax levy adopted by this resolution are intended for repayment of general obligation bonds issued pursuant to Resolution 2010 - 12A . Section 4. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13 day of December, 2010. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor J y� Council Agenda Statement Meeting Date: December 13, 2010 f 4 0 f S From: Phillip Oates, City Manage 0 , 0 Agenda Item: A resolution of the City Council of the City of q °s$ 41 47A- Seward, Alaska, establishing a 1 mill increase in property tax to generate a revenue source for repayment of the $3.73M General Obligation Bond for the construction of the Seward Community Library Museum. BACKGROUND & JUSTIFICATION: Since 2003, the City of Seward has been working on a plan to build a new library museum. As of November, architects completed design documents to 65% with a goal of completing construction documents in January, ground breaking in April -May 2011, and completion of the project in August 2012. Project and construction management have been hired. The Seward Community Library Museum Building Committee (SCLMBC) has spearheaded project predevelopment activities and fundraising efforts. SCLMBC and City Administration have presented over thirty Resolutions to Council since 2003 that either supported, funded or authorized the project progress. As a result, the City received an appropriation of $4.7M from the State of Alaska in July 2010. The Rasmuson Foundation committed $500,000 in November 2010 and $1.1M in grant applications has been submitted. In October 2009 voters approved a General Obligation (GO) bond in an amount to $5 Million for construction of the library museum. Since that approval, City Administration and project managers have estimated that as currently projected $3.73 Million will be needed to complete the project. The annual debt service for a 25 -year $3.73 Million General Obligation Bond at an interest rate of 4.5% is approximately $249,000 per year. This resolution requests that the City Council increase the mill rate from 3.12 to 4.12 for approximately 600 property owners within the city limits. The estimated revenue increase from this 1 mill increase in property tax is approximately $300,000 per year. The 1 mill increase would provide sufficient revenue to repay principal and interest on a 25 year $3.73 Million General Obligation Bond, allow completion of the new library museum project, and provide approximately $51,000 annually to assist in paying the approximate $260,000 annual increase in personnel, maintenance, and operating costs for the new library museum. The proposed resolution also establishes a recommendation from the current City Council to a future City Council that this 1 mill increase should sunset when the $3.73 Million General Obligation Bond is paid in full. 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. INTENT: This resolution requests that the City Council increase the property tax mill rate from 3.12 to 4.12 to repay principal and interest on a 25 year $3.73 Million General Obligation Bond, allow completion of the new library museum project, and provide approximately $51,000 annually to assist in paying the approximate $260,000 annual increase in personnel, maintenance, and operating costs for the new library museum. ATTORNEY REVIEW: Yes FISCAL NOTE: The 1 mill increase will cover capital debt annual payments and provide approximately $51,000 per year for increased personnel, maintenance, and operating costs of the new library museum. Estimated additional annual personnel, maintenance, and operating costs - as noted in the business plan - are $260,000. This leaves a shortfall of approximately $209,000 dollars each year since annual funding to cover the remainder of these costs has not been identified. The City Council intends to address this matter during the preparation of the biennial budget. To cover costs of this magnitude would require, for example, an increase in the mill rate of 0.7 mills equal to $139 per year on a house valued at $200,000 or, alternatively, a 0.23 percent increase in the sales tax rate. Approved by Finance Department t9e44.• ,t;.) 4Ase i4"1. RECOMMENDATION:_ gesofuifon Approve Ar a e 2010 -130 to establish a 1 mill increase in the annual mill rate as a revenue source to pay the debt service of a $3.73M GO Bond for the library museum project. 7 Sponsored by: Clerk CITY OF SEWARD, ALASKA RESOLUTION 2010 -118 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REPEALING RESOLUTION 2007 -094 AND ADOPTING A REVISED RECORDS RETENTION SCHEDULE FOR THE CITY OF SEWARD WHEREAS, records and how they are managed is always evolving; and WHEREAS, it is important for government to have a records management system that is legally responsive and meets today's industry standards; and WHEREAS, the City of Seward's records were assessed on March 10, 2010 by Acumen Information Services, Inc., and WHEREAS, Acumen Information Services, Inc. are records managers certified by the Institute of Certified Records Manager's (ICRM); and WHEREAS, the City of Seward contracted with Acumen Information Services, Inc. and a new system of "bucketing" or bundling of records by record series was established; and WHEREAS, this system attaches data owners to the records which will assist with accountability and auditing purposes in the future; and WHEREAS, this schedule now meets today's industry standards, is legally responsive, and meets all requirements set by federal and state law. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. Resolution 2007 -094, the last update for the records retention, is hereby repealed. Section 2. The records retention schedule for the City of Seward, Alaska, attached and incorporated herein by reference, is adopted. Section 3. This resolution shall take affect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 13 day of December, 2010. o 9 Council Agenda Statement Meeting Date: December 13, 2010 of sets To: Mayor Dunham, City Coun it ul' 9 '�0 From: Jean Lewis, City Clerk Agenda Item: Approve new Records Retention Schedule BACKGROUND & JUSTIFICATION: There are two phases needed tocomplete a new records management system for the City of Seward. Phase I — is to have a new records retention schedule developed based on record series and today's industry standards. Phase II — takes that new schedule and incorporates it within the new software for the ultimate goal to get records flowing again. The City of Seward had a records management assessment done March 10, 2010 by Acumen Informational Services, Inc. Acumen is the only records management company in Alaska that is certified by both the National Archives and Record Administration (NARA) and Association of Records Managers and Administrators (ARMA). Although Seward had good base level components in place, records retention and practices were outdated, and needed to be improved to meet today's industry standards and legal challenges. August of 2010, the City Clerk's Office contracted with Acumen Informational Services, Inc. to draft and develop a new Records Retention Schedule (RRS) based on record series. By using our old record retention schedule as base inventory, they developed this new RRS and performed legal research and assigned legal requirements to each record series. INTENT: For the City of Seward to have a legally responsive records retention schedule that meets industry standards and today's legal challenges. To assist the City to effectively maintain, retain and destroy city records. CONSISTENCY CHECKLIST: Where applicable, this resolution /ordinance is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE: No fiscal impact at this time. Approved by Finance Department: ATTORNEY REVIEW: NO (Just briefly went over the LEG section by telephone with the City Attorney on records questions) RECOMMENDATION: Approve Resolution 2010- 11,$which adopts this new records retention schedule. !�� !�� !� �- - - - -- - - - - -- -- - - -- l�� lam � -- lam -� !� - !� !� l� � - !�� !�� 1` \` ` ` \` >00> ` ` `i\`i\` `i`i`i`i`i` ` `i3O> 1 NIMISINIbb. 4 City of Seward ›i■ ■ Records Detention Schedule Cover /Table of Contents , 0 I RECORDS RETENTION SCHEDULE AND RECORD SERIES Nip- AAC Accounting LEG Legal 1 ADM Administrative NON Non Record Material ► ASM Assessment PST Public Safety ELC Elections PUB Public Relations I ENV Environment REF Reference FIN Finance ROM Resource Operations & Maintenance HUM Human Resources UNK Unknown II POLICIES, PROCEDURES AND FORMS / 1 ■ ' Policies and Procedures for Records Management i ■ 1 Records Storage and Retrieval ii j Records Disposition and Destruction iii ■ Glossary and Definitions vii ■ Old Seward General Hospital Records Explained ix ■ ■ Records Transfer Form Appendix A Records Destruction Authorization Form Appendix B ► Retention Schedule Change Form Appendix C How to decide if your email is a record Appendix D ■ 1 ■ ■ ■ — — >-. `� \`' \`�\`' \`�\`' ``� \0`' \`' \`' 0\`' \`' \`' \`' \`' \`' \`' ` 0 ' \ 0 ' \ 0 ' \ 00 ' 'j 7'( >7 zw- $7\■ ›''W7 _ > >\' City of Seward Records Retention Schedule History ›■v 7" Adopted Resolution 80 -029 June 9, 1980 Amended Resolution 86 -074 July 28, 1986 Amended Resolution 93 - 007 January 25, 1993 7 Amended Schedule B Resolution 94 -191 October 10, 1994 To reflect federal requirements related to election records Rescinded & Revised Resolution 07 - 094 October 8, 2007 Contracted with Acumen Resolution 10 -118 December 13, 2010 zgpr Contract for a legally responsive RRS that brings 5eward's record NV management up to tod industry standards $ 111" zqv 7 X Last Revised by: City Clerk's Office December 13, 2010 Nliv City of Seward Draft Records Retention Schedule , Record - - . ' L at'•?•., Indus Standard Data Owner Retention' e9 >�Y � Rete on � 4Ct>jatfons/ z~ Subjects Des cnpUoo ° r d rues Series Ret en#3gn % jin years unt6ss a,y, Standard ` otherwise +noted) K Reterrttort Retention � ,: ACC1000 Accounting - Accounts Records related to the payment of financial Payable & Accounts obligations and receipt of revenues. Payables Receivable includes check copies, vendor invoices/statements, expense reports. Records also include Affidavits of Publication. Receivables includes income from sales and 8 AAC 85.020 5 6 FIN Director 6 property taxes, utilities, user fees, tariffs and AS 43.20.200 other revenue generating enterprises. See ACC1005 for grants and LEG2000 for government and other contracts. ACC1005 Accounting - Accounts Records include receipts of revenue, vendor Payable & Receivable - payments and other supporting documentation. 45 CFR 74.53 Grants 7 CFR 3019.53 Some grants may require See ACC2000 for capital expenses Active + 3 Active + 6 FIN Director Active + 6 24 CFR 84.85 longer retention, including purchased with grant/government funding 7 AAC 78.250 EPA (Active + 10) and FAA grants. ACC1010 Accounting - Journals & Records used to transfer charges between Ledgers accounts and for summarizing account information. Includes General Ledger and 5 10 FIN Director 10 See ACC1000 and Budget journal entries. ACC 1005 Final annual records only. ACC1020 Accounting - Payroll Records related to the payment of salaries and wages, including deductions for benefits, taxes, etc. Includes salary, taxes, adjustments, garnishments, benefits, contributions and other adjustments to payroll checks; W -2, W -4 and 5 6 FIN Director 6 8 AAC 85.020 1099 forms. HR Director 26 CFR 31.6001 - 1 See HUM1040 for summary benefit/payroll records related to PERS and other retirement benefits. ACC1021 Accounting - Payroll - Records related to reporting of hours worked, 8 AAC 85.020 Timesheets including timesheets. 5 6 FIN Director 6 29 CFR 1627.3 ACC2000 Accounting - Capital Includes purchase and sales of property and Property equipment, depreciation, improvements, etc. Includes financial obligations associated with capital expenditures, purchase of land, Active Active + 6 FIN Director Active + 6 See ACC1005 buildings, equipment, furnishings, motor vehicles and their titles; material transfers, work All vehicle titles are housed orders, additions or improvements to buildings of in finance. Active = Life or fixtures Asset ACC9900 Accounting - General Reports providing accounting information to management that is not needed for audit purposes. Includes reports not containing the None 3 FIN Director 3 primary record of computer data such as summary data. weekly updates, status reports, etc. Last Updated 12/6/2010 Page 1 of 12 City of Seward Draft Records Retention Schedule Recommended EitrdAjrd L of , Indus Stenda f Dafa Owner . •Retention ra ns/ S,ubfBcts Descri � ` �. � �r - � • Ci�1to ba . Se1r s Retention Retention Re (in years unless St*ndard $ �h s � Otherw�flbtell) ,��' ADM1000 Administration - General Records to help accomplish the functions for which a person or department is responsible. Administrative records have value as long as they assist employees in performing either current or future work. The primary Administrative records administrative use of most records is exhausted currently in inactive relate have None UANIM All Dept Head Until Administrative storage should be when the transactions to which they Need is Met assigned a 1 year been completed . retention period. For more detailed information on what is considered an administrative record, contact the City Clerk's Office. ADM1020 Administration - Planning & Records related to future planning and Forecasting forecasting for internal purposes. Includes annual plans, long term strategic plans and operational forecasts, facility requirements, growth forecasts, feasibility studies, marketing plans. Active = Until study /plan is None Active + 1 All Dept Head Active + 1 no longer relevant as See FIN2000 for budgeting and financial determined by Data Owner planning. See ROM1000 for studies and plans pertaining to the city's infrastructure and = w development. ADM1050 Administration - Requests Includes public records logs and written SOA Local Govemment for Information requests. 1 2 All Dept Head 2 schedule 1 year NARA - 2 years ADM2000 Administration - Property Records related to the movement or tracking of Museum inventories of Management City property. Includes records related to the artifacts and collections are Inventory movement of vehicles, equipment, tools, None 3 All Dept Head 3 governed under AS.14.57 materials and supplies owned, rented or leased; use loos. ADM3000 Administration - Policies & Records documenting City- approved methods Keep copies of policies and Procedures or processes for performing activities to ensure procedures to demonstrate uniformity and compliance with City and legal City practices in judicial or requirements. Includes office and job practices, Or may judged ma ' be jud ed administrative handbooks, procedures manuals, according to its own written employee manuals /handbooks, policy standards of conduct. statements, directives, disaster recovery plans, None Active + 10 All Dept Head Active + 10 45 CFR 164.530(J)(1 (consideration) atio ) emergency action plans, vital records programs, records management programs, safety programs, security plans, affirmative action plans, operating rules, and software and equipment manuals. ADM3010 Administration - Policies & Records of internal audits to confirm compliance Procedures - Audits, with internal policies and procedures. Includes Internal internal audit reports, remedial activities, and None Active + 2 All Dept Head Active + 2 work papers. See FIN7010 for external financial audits. Last Updated 12/6/2010 Page 2 of 12 City of Seward Draft Records Retention Schedule Recommended x � r Record Legal Industry Standard data Owner ReterffIon CNations/ '- Series Subjects Description' CommentsMotes Reterrtiori Re tention . Retention ; { m years u n l ess �. Standard otherwise' 'noted] V o ADM3020 Administration - Policies & Record Transfer Lists & Record Destruction Procedures - Records Authorization forms. Records related to the Indefinite Program Documentation transfer and destruction of records (hardcopy Permanent City Clerk Permanent and electronic). Also includes Document Replacement Authorizations. ADM4000 Administration - Security Records related to protecting employees, equipment, buildings and information. Includes security clearances, password lists . None 3 All Dept Head 3 See series PST1000 -4000 for records related ,to public safety and security. ADM4100 Administration - Safety Records related to City safety programs. See HUM4020 for accident and injury reports. None 3 All Dept Head 3 See series PST1000.4000 for records related to public safety and security. ASM1000 Assessment - Valuation Real and business property annual assessment rolls. Includes description, assessed value of property and names and addresses of owners. SOA Local Government Also includes records that are used to certify None Permanent FIN Directo Permanen Schedule and document the assessed value of real y . property. $ ASM2000 Assessment - Supporting Includes notices, collection files and other Documentation records. None 6 FIN Director 6 SOA Local Government Schedule See LEG4000 for appeals. CEM 0000 Cemetery Records Information regarding ownership and interment. Permanent Permanent City Clerk Permanent Comm. Dev. ELC1000 Elections - Permanent Certificates of Election Returns - Regular & Special - History of election records consisting of copies of council certificate of election, election returns, and sample ballots. DOJ (Dept. Permanent Permanent City Clerk Permanent of Justice) Preclearance Records - History of preclearance records relating to request and pre clearance for election. • Last Updated 121612010 Page 3 of 12 City of Seward Draft Records Retention Schedule 3 Recomrt►endeft Recta d 's a l e9a1 tndust Data Owner' R n Subjects bescnptfon tsitte p rfs ? � Retention Reteatfpn i Retortion. ' (Inyealess Se � x•, t1 � OtherwlS$ ELC2000 Elections - General Candidates Lists - Records relating to list of candidates. Includes: name and address of candidate, declaration of candidacy, office sought and term of office and ballot layout. Election Officials' Records - Records relating to recruitment materials, interest letters, training notes, acceptance forms, oaths and mileage reimbursement requests and absentee voting officials' documentation. Election Registers & Tally Books - Records relating to the following registers: precinct, final voting, questioned 4 Active + 6 City Clerk Active + 6 voter, special needs voting and absentee and early voting. Also includes special needs voting applications. Other Election Material - Election results for poll and other manners of voting, certificate and affidavits of posting, Unsuccessful Candidates, Alaska Public Offices Public Disclosure Statements, and any other materials related to the election. AS.15.15.470 ELC3000 Elections - Ballots Official election ballots 30 days 30 days City Clerk 30 days AS.15.15.470 ENV1000 Environment - Testing - Records related to the testing, monitoring and General and Utility analysis of the environment for hazardous h - substances. Includes records of the City water and sewer utility systems. 40 CFR 63.10 See ENV2000 for testing, monitoring and 10 10 All Dept Head 10 40 CFR 68.200 analysis when hazardous substances are 40 CFR 141.33 detected. See ROM3000 for Landfill Records ENV2000 Environment - Hazardous Records related to the use, manufacture, and Substances testing of hazardous substances. Indefinite Indefinite Indefinite All Dept Head (review every 30 See ENV2010 for transportation of years) hazardous substances. ENV2010 Environment - Hazardous Records related to the transportation of Indefinite Substances - hazardous substances. Includes shipping Indefinite Indefinite All Dept p Head (review every 30 See ENV2000 Transportation manifests for hazardous substances. years) ENV3000 Environment - Water & Air Records related to discharge of pollution into 12 12 All Dept Head 12 40 CFR 141.91 Pollution water and air. ENV4000 Environment - Programs Records of City Programs to control, prevent and manage pollution. Indefinite Indefinite Indefinite See REF0000 or ADM3000 for programs All Dept Head (review every 30 See ENV200 developed and owned by the State of Alaska years) or other governing bodies. FIN1000 Finance - Banking Records related to banking activities. Includes deposits, checks, statements, reconciliations, 5 6 FIN Director 6 See ACC1000 check registers, daily cash receipts. Last Updated 12/6/2010 Page 4 of 12 City of Seward Draft Records Retention Schedule Re edorc! Legal industry. Standard Data Owner Re . Citations! Subjects . Description Comrrrer ee` Series Retention Retention Retention' '(rn years uAless S • othenivisq noted)o FIN2000 Finance - Budgets & Records related to internal financial planning Financial Forecasts and financial management. None Active + 1 FIN Director Active + 1 See ACC1000 For approved budget see FIN7000. _ FIN3000 Finance - Investments Records related to City investments. Active Active + 6 FIN Director Active + 6 See ACC1000 Active = until investment is sold, transferred etc. FIN4000 Finance - Bonds Records related to City issuance of debt papers. Includes bonds and debenture ledgers, certificate transfers, notes, use of bond Active Active + 6 FIN Director Active + 6 See ACC1000 proceeds, construction contracts, material AS 29.47.410 purchases, receivables and other supporting Active = until bond is documents. completely paid FIN5000 Finance - Loans /Credits Records related to the applications, issuance, management and administration of loans to the City. Includes correspondence with lenders, reports to lenders, debt information, letters of See ACC1005 credit, loan agreements, loan applications, Active Active + 6 FIN Director Active + 6 AS 47.29.410 and IRS Active = Until loan is paid, mortgage records, credit agency reports, credit states life bond + 6 yrs. refi'd etc. applications, work papers, write -offs, write downs, losses. FIN6000 Finance - Bad Records related to the monitoring, collecting Debts /Collections and writing off of bad debts. Includes Active Active + 6 FIN Director Active + 6 See ACC1000 authorizations, supporting details of uncollectible accounts. FIN7000 Finance - Financial Financial statements, reports, and background Statements and Approved information submitted to government and Budget regulatory agencies. Permanent Permanent FIN Director Permanent DMC 4.12.010 Includes Comprehensive Annual Financial Report and Final Approved Budget. FIN7010 Finance - Financial Audit work papers submitted by the City related Statements - Audits, to the annual financial audit. AS 29.35.120 17 CFR 210.2 -06 External Indefinite (Industry Standard for 7 7 FIN Director (review every 20 audit records according years) to the Sarbanes -Oxley act of 2002) FIN8000 Finance - Purchasing and Records related to request for bids, bid review, Bids receiving, inspection of merchandise, etc. Includes records related to shipment or receipt of purchases. 3 3 All Dept Head 3 See ACC1005 See ACC1000 for accounting for actual purchases. See LEG2000 for purchasing contracts. FIN8100 Finance - Purchasing - Records related to actual purchases or Purchase Orders commitments to purchase, and authorizations Active + 3 Active + 6 FIN Director Active + 6 See ACC1005 and for expenses. LEG2000 FIN9900 Finance - General Records related to finance activities not covered None 3 FIN Director 3 previously. Last Updated 12/6/2010 Page 5 of 12 City of Seward Draft Records Retention Schedule s #Ret+ommende 4 �a n i� ' #' L ti Indu° Stan Data tlwnetx RSIM,0on / t om`' .,�, °" Series Strb t r on R ,- Retention Retention "fin ysats unless s: , $. titrlard of g 5 � � othenwlse.. no�l) o "�. ye ` ' c . .fin. HIS1000 Historical Records determined to possess significant long- term historical value. Indefinite Indefinite None All Dept Head (Review every 50 Includes research, studies and scholarly years) records unique to the City. _ HUM1010 Human Resources - Records related to City sponsored benefit plans. Benefits - Benefit Plans Includes insurance, pension, disability, medical, survivor programs, vesting criteria, leave entitlements, educational assistance, deferred compensation plans, correspondence explaining benefit plans. HR Director Active + 6 Active + 6 FIN Director Active + 6 29 USC 1027 See LEG5000 for pension plans reports to government. See HUM1040 for indefinite summary records related to PERS. HUM1020 Human Resources - Records related to contributions made and Benefits - Contributions & benefits distributed under City sponsored Distributions benefit plans. Includes insurance, pension, HR Director disability, deferred comp., etc. Active + 6 Active + 6 FIN Director Active + 6 29 USC 1027 See HUM1040 for permanent summary records related to PERS. _ HUM1030 Human Resources - Records of benefit options by employees for `V, Benefits - Options type and amount of participation in the City's Active + 6 Active + 6 HR Director FIN Director Active + 6 29 USC 1027 benefit plans. c" HUM1040 Human Resources - Records related to cumulative years of service, _ Benefits - Benefit Summary total pension contributions, accrued benefits, Indefinite Indefinite HR Director 75 29 USC 1059 Information etc. FIN Director HUM2000 Human Resources - Records of general nature related to personnel Employee Selection requests, job postings, job applications, testing, HR Director 29 CFR 801.30 advertising, interviews, etc. 3 3 FIN Director 3 29 CFR 1602.14 29 CFR 1627.3 HUM3000 Human Resources - Records regarding specific employees. Employee Records Including hiring, promotion, performance, 29 CFR 1627.3 appraisals, transfers, termination, etc. Active + 6 Active + 6 HR Director Active + 6 29 CFR 516.5 FIN Director AS 9.10.070 HUM4020 Human Resources - Health Records related to on-the-job accidents & Safety - required by OSHA. Includes injury reports, 6 6 All Dept Head 6 29 CFR 1904.33 Accident & Injury Reporting damage reports, and accident logs. AS 18.60.030 HUM4021 Human Resources - Health Records related to on-the-job accidents often & Safety - used for workers' compensation claims. Indefinite Indefinite Indefinite 29 CFR 1910.1020 Workers' Compensation All Dept Head (review every 30 AS 23.30.065 Claims See LEG4000 for litigation involving years) workers' compensation. Last Updated 12/6/2010 Page 6 of 12 City of Seward Draft Records Retention Schedule Recommended , § Record S ecta cn tion Legal, industry Standard Data Ow i er Retention Citatio _ Series p Retention . Retention • Retention . (in years unless <-"' -;> 18 � N Qt°s otherw7se noted) . HUM4030 Human Resources - Medical Records related to exposure or Health & Safety possible exposure to hazardous or toxic Hazardous Exposure substances including testing, employee exposure records, employee radiation records, and employee hazard communications records. Indefinite Indefinite Indefinite HR Director (review every 30 29 CFR 1910.1001 See ENV2000 for testing for environmental years) exposure to hazardous substances. HUM4031 Human Resources - Health Material Safety Data Sheets (MSDS) required & Safety by OSHA. Indefinite Indefinite Indefinite 29 CFR 1910.1200 Material Safety Data Sheets All Dept Head (review every 30 29 CFR 1910.1020 years) HUM5000 Human Resources - Records related to the development and Training /Development operation of City- sponsored training programs and seminars. Includes seminars, education assistance, management and supervision 29 CFR 1910.156 Active Active + 6 All Dept Head Active + 6 development, job progression, drug and alcohol 13 AAC 52.030 awareness, course listings, schedules, requests and approvals. Includes Police and Fire training ,records HUM5010 Human Resources - Records related to certification for individuals to 13 AAC 52.030 Training /Development - perform certain tasks. Includes Police, Fire, Active Active + 6 All Dept Head Active + 6 13 AAC 13.87 Certification EMT, etc. HUM6000 Human Resources - Salary Records related to determining and monitoring Administration salary and deduction amounts including timesheets, cost of living records, earnings records, pay scales, and salary surveys. 3 6 FIN Director 6 29 CFR 516.5 HR Director See ACC1020 for accounting records for payroll and deductions. HUM6100 Human Resources - Records related to job descriptions. Salary Administration - Job 2 Active + 10 HR Director Active + 10 29 CFR 1620.32 • Descriptions HUM7000 Human Resources - Labor Records related to negotiating, implementing, Relations grievance and other significant matters with iauur unions. includes documentation Indefinite Indefinite associated with filing, investigating and Active + 6 HR Director (review every 20 See LEG2000 resolving non -union grievances and complaints. years) HUM9900 Human Resources - Records related to Human Resources not None 6 HR Director 6 General covered elsewhere. LEG1000 Legal - Organization Records related to the establishment of and rules governing the operation of the city; includes articles /certificates of incorporation, Permanent Permanent City Clerk Permanent seals, etc. Last Updated 12/6/2010 Page 7 of 12 City of Seward Draft Records Retention Schedule Record � ' Recomfnended � , ,,. . . Subjects Description Legal Industflr4tandard Data Owner Ret'ention m G mtlot[s/ ,COnenerlfeftf St cTes Retention Retention', Retention (in yeais,ontess S ancla � P ' otherwisenoted( o V LEG1010 Legal - Organization - Records relating to the adoption and Council amendment of all adopted ordinances and resolutions. Records that constitute the official accounts of the proceedings and actions of the Council or workgroup(s) of the Council . Permanent Permanent City Clerk Permanent Records relating to oaths for boards, commission, committees, councils and elected officials. Master list of names, terms and dates of service. Includes code book supplement files. LEG1020 Legal - Organization- Records relating to the official actions of the Council - board or commission. May include, adopted Boards and Committees minutes, agendas, resolutions and any other Permanent Permanent City Clerk Permanent records that constitute the official accounts of the proceedings and actions of the governing body. LEG1030 Legal - Organization Council Records related to appointments to boards, Boards and Committees - commissions, committees, and special work Appointments groups appointed by the mayor or Council Indefinite Includes notices of appointments /resignations. Active Varies wide) Cd Clerk SOA Local Government y y (review every 20 Schedule Master list of appointments kept years) permanently, see LEG1000 LEG1040 Legal - Organization Backup information related to meetings of a Council - governmental body, may include meeting Boards and Committees packets, correspondence, reports, transcripts, Supporting Documents studies, background papers and recordings. SOA Local Government Also includes records relating to initiatives, None 6 City Clerk 6 Schedule referendum, and recall filed by private citizens or groups requesting governing body action. LEG1050 Legal - Organization Records issued /prepared by mayor or local Retention active during Proclamations /Certificates governing body. mayoral term, then retain None Varies widely City Clerk Active + 3 three years. Work with the Records Manager to determine possible historical value Last Updated 12/6/2010 Page 8 of 12 City of Seward DraftRe R eco rds Retention ntion Sched Recommended' " �'� Subjects DescnptlQn; Legal, Industry-Standard Date Owner Reterdlon Cltatlonsl" ' Corrunents/Nctes Sew ndOq Reteention (Inyf 8f5LMess >. t tlard ther�vfs noted) � S .: f LEG2000 Legal - Records related to obligations under contracts, Contracts/Agreements leases, and other agreements between the City and outside parties. Includes contracts for services, purchases and sales, labor relations, transportation, leases, property and construction, exchange of property, etc. Employee contracts, promissory notes, property improvement contracts, mortgages, patents, title documentation, labor contracts, and warranties. Contract documentation, contract AS 09.10.053 negotiations and change orders are included. Active + 3 Active + 6 All Dept Head Active + 6 AS 09.10.050 48 CFR 4.703 Includes agreements /applications for City Services (utility, sewer, etc.) and licenses and permits granted by City Departments. See LEG2015 for legal documents pertaining to land use such as permits and easements. LEG2010 Legal - Records related to compliance or performance Contracts /Agreements - of government and non - government contracts. Contract Performance Includes determination of costs, cost accounting, performance of services, payments, pay administration, procurement, work products delivered, production, etc. Does not include the 6 6 All Dept Head 6 contract itself. p See LEG2000 Generally includes "project files" that do not contain engineering or other permanent records. LEG2015 Legal Records relating to grant of easement for legal Contracts /Agreements permission to conduct work on property, Land Use including, but not limited to, laying, constructing, maintaining, operating, repairing and servicing water and sewerage pipes, mains, drains, signs and utilities. Also vacations (including section Indefinite Indefinite Active All Dept Head (Review every 30 See LEG2000 line and deeds of vacation), descriptions of easement areas, memoranda, correspondence, years) and property disposition. Also includes records related to the issuance of permits and right of ways to the public. LEG2020 Legal - Records conveying ownership of property Contracts /Agreements - including titles, deeds, real estate records, etc. Indefinite Indefinite Property Ownership Includes historical property that has been sold. Active All Dept Head (Review every 30 See LEG2000 years) Last Updated 12/6/2010 Page 9 of 12 City of Seward Draft Records Retention Schedule x R . * . a a ' ca t2eeard , „Sub C Legal " ' >. Industry Standard Data' 1 �. 'R.etertlion ''C�Itattenttt r,` , r , S iJ @S r De8Cr Rt+P� R �$xttiCn Ret®trfton Ft a tied ' Iry 'ears unless Staindred k ; otherwise noted) LEG3000 Legal - Insurance Records related to coverage affecting City liability. Includes policies, amendments, riders, proof of payment, etc. Active Active + 6 All Dept Head Active + 6 See HUM1010 for employee medical and life insurance. LEG3010 Legal - Insurance - Future Records related to insurance coverage for Liability product liability, exposure to hazardous Indefinite All Dept Indefinite substances, or other problems manifesting 15 Head (review every 20 AS 21.66.170 themselves long after the policy terminates. years) Includes liability policies. LEG4000 Legal - Claims /Litigation Records related to threatened or asserted litigations or government investigation. Includes pleadings, discovery, attorney work - products, City Atty and legal opinions, transcripts, exhibits, final Active Active + 6 All Dept Head Active + 6 Legal counsel firm maintains judgments, etc. their files for 10 years after closure. Do not come back to the city. LEG4005 Legal - Claims /Litigation Records related to complaints, incident and Complaints, Incident accident investigations, enforcement and Accident & Investigations appeals of City regulations and ordinances. Active Active + 6 City Atty and Active + 6 Legal counsel firm maintains All Dept Head their files for 10 years after See PST1000 for case files associated with closure. Do not come back criminal activity. to the city. ' LEG4010 Legal - Claims /Litigation - Final judgments, settlements, court orders and Indefinite Legal counsel firm maintains Final other documents specifying final terms, Indefinite Indefinite City Atty and (review every 20 their files for 10 years after Judgments /Settlements conditions, and decision related to claims and All Dept Head closure. Do not come back liti • ation. years) to the city LEG5000 Legal - Compliance Records related to the preparation of non The five year legal retention financial documents required by law. Includes reflects the longest legal reporting and filings with agencies such as FMLA - 29 CFR 825.500 period for this record series. SOA, DOT, OSHA, EPA, DOL. Includes (cites to FLSA There are a variety of laws requirement at 29 CFR that fall under this record external audits required by government series. Specific citations can 5 6 All Dept Head 6 516.5) agencies. OSHA - 29 CFR 1904.4, be provided upon request. 1904.6, 1904.7 EPA - 40 See ACC1020 for W -2's and 1099's. CFR 141.155 See FIN7000 for Financial Audits. LEG5003 Legal - Compliance - 1 -9 Form 1 -9 and related documentation regarding Documentation alien employees. Active + 3 Active + 3 HR Director Active + 3 8 CFR 274A.2 LEG5011 Legal Compliance - Tax Returns include unemployment tax (FUTA, returns other than income ESC, etc.). 941's and other types of returns. 5 6 HR Director 6 AS 43.20.200 Includes audits, appeals and reports. FIN Director 26 CFR 31.6001 -1 LEG5020 Legal - Compliance - Records include licenses or permits issued to License /Permits the City . Active + 3 Active + 3 All Dept Head Active + 3 See LEG2000 See LEG2000 for permits and licenses issued by the City LEG5030 Legal - Compliance - Records related to unique orders issued to the Indefinite Agency /Regulatory Orders City. Indefinite Indefm ite All Dept Head p (review every 20 Unique to each order . i I years) , ■ Last Updated 12/6/2010 Page 10 of 12 City of Seward Draft Records Retention Schedule Recommended �' Record Legal - Industry Standard Data Owner Rote drib m Citafionst Subjects Description s a Commerits/Nates Series „ Retention Retention Retention (in years unless S Standard othervnsQ Hofer!) LEG6000 Legal - Legal Projects Records related to providing determining legal requirements and providing legal advice within None Active + 10 All Dept Head Active + 10 City. LEG6010 Legal - Legal Projects - Records resulting from legal projects which Indefinite Indefinite Legal Opinions document the specific legal advice provided. None All Dept Head (review every 20 years) LEG7000 Legal - Copyright / Records related to preparation, filing, Active Active + 6 All Dept Head Active + 6 See LEG4000 Trademark / Patents maintenance, and rights. LEG9900 Legal - General Records related to legal activities not covered None 3 All Dept Head 3 elsewhere. NON0000 Non - Record Material Material, often filed with record, that are not None Active All Dept Head Active records such as blank forms, supplies, etc. PST1000 Public Safety - Logs and Public Safety records and related logs; Resource Management examples include: staffing /daily roster, daily assignment, monthly activity reports, UCR 18 USC 3282 reports, property recovery, radar, animal control Police Chief 5 5 5 (LA 5 years for non records, accident and towed vehicle. Fire Chief capital offenses) See LEG4005 for records related to accidents and incidents. PST2000 Public Safety - Investigative records pertaining to cases Reports /Case Files handled by the Police, Fire and Corrections AS 12.62.190 departments. Includes evidence such as videos, film, negatives, photographs, etc. that may Note: We were unable to CJ•1 pertain to a case but may not kept in the actual find specific statutes that C.,1 case file. would provide guidance Indefinite Police Chief Indefinite on juvenile files. SOA Active Fire Chief (review every 20 schedule states files can years) be destroyed 6 years See LEG4005 for records related to non- after juvenile turns 18. criminal accidents and incidents. We would recommend you get an opinion from your legal representative before destroying . PST4000 Public Safety - Statistics Records relating to statistical compilations of Indefinite Indefinite Police Chief activities concerning public safety within the Active Fire Chief (review every 20 AS 12.62.190 local jurisdiction. years) PUB1000 Public Relations - Publicity Records related to participation or promotion of Employee, Industry and City activities with employees, other Customer Relations government entities, associations and the general public. None 5 All Dept Head 5 Some records in this series Generally includes Mayor's and City Official's may have historical value. These records may require correspondence that cannot otherwise be re- classification to HIS1000 classified. prior to final disposition. REF0000 Reference Records and non - record material maintained for reference purposes only. None UANIM All Dept Head Until Administrative Need is Met REF1000 Reference - Vital Records / Copies of records prepared to provide the City All backups are on hardrive Security Backup information in case of disaster or loss of MIS and are server images information. Includes backups from servers. None Active Active Backups are done and All Dept Head stored offsite daily and stored electronically out of state once a week. Last Updated 12/6/2010 Page 11 of 12 City of Seward Draft Records Retention Schedule R L a1 r !'e , g Sub'e eg Industry Standard Data Owne e . Cifationsf , � r tN 1 cts Descriptir rr Sergi . , � � 'Retention t2etentlortr' Rete�on � �rYless /q ROM1000 Resource Operations & Records related to the design, construction, Maintenance - layout, planning and survey of City buildings Engineering and facilities. Records include, plans, drawings, Geotechnical maps, inspection reports, geotechnical data, survey /plat, lot plans, layouts, site selection and studies for proposed facilities, annexation, utility connections, and other supporting documentation. Active Permanent All Dept Head Permanent Also includes permit register, site plans, plot plans, public notices, land files, subdivision files, acknowledgment of conditions and records of surrounding properties. Includes "project files" that contain original construction /engineering /technical documents. ROM2000 Resource Operations & Records documenting the inspection, Maintenance - maintenance and repair of City property, Active + 6 Active + 6 All Dept Head Active + 6 33 CFR 150.755 Active = As long as facility or Repair and Maintenance vehicles, equipment, facilities and other (consideration) equipment is owned /leased structures. by the City ROM3000 Resource Operations & Operating records associated with Operating 18 AAC 60.380. Maintenance - the City Landfill. Permanent Permanent FIN Director Permanent 40 CFR 258.29 Landfill ROM9900 Resource Operations & Records related to city resources not covered Maintenance - elsewhere. Active + 6 Active + 6 All Dept Head Active + 6 �• General '" ° UNK0000 Unknown Content of records cannot be determined from Unk All Dept Head Unk Contact the Records description. Manager for assistance Last Updated 12/6/2010 Page 12 of 12 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -119 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE 2010 BUDGET TO RECORD EXPENDITURES OF $127,557.38 PAID BY THE STATE OF ALASKA ON BEHALF OF THE CITY TOWARD THE CITY'S PUBLIC EMPLOYEES RETIREMENT SYSTEM LIABILITY, PER HB81 WHEREAS, the 2009 Alaska State Legislature passed House Bill 81, appropriating funds on behalf of the City, to cover a portion of the City's contribution to the Public Employees' Retirement System; and WHEREAS, the City received notification from the State of Alaska Department of Administration, Division of Retirement & Benefits, that the State has contributed $127,557.38 on behalf of the City from January through June, 2010, reflecting the 5.65% difference between the actuarially required contribution rate of 27.65% as adopted by the Alaska Retirement Management Board ' and the 22% employer "capped" rate established by SB53; and WHEREAS, in accordance with generally accepted accounting principles, the City must record payments made on its behalf, and must therefore amend the 2010 Budget to account for both the expenditures paid on behalf of the City, and the corresponding revenues paid by the State of Alaska Department of Administration; and WHEREAS, failure to amend the budget to reflect the State's payments on- behalf of the City, will result in an imbalance between the actual and budgeted revenues and expenditures, giving the appearance of revenues and expenditures exceeding the annual budget as approved by the Seward City Council; and WHEREAS, since the State's on- behalf payments are based as a percentage of the City's actual payroll costs in 2010, and the costs for the remainder of 2010 will not be known until January 2011, there will be an additional resolution to come before the City Council appropriating the PERS on- behalf payments made by the State of Alaska from the period July through December 2010, retroactive to December 2010. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: 1 The ARC reflects normal cost rate of 9.46% plus past service cost rate of 18.19 %, and is further expressed as pension costs of 10.25% and healthcare costs of 17.40 %. CITY OF SEWARD, ALASKA RESOLUTION 2010 -119 Section 1. The 2010 Operating Budget shall be amended to appropriate $127,557.38 from the State grant revenues accounts x01 - 0000 - 4680 -0200 to various department retirement expense accounts allocated on a pro -rata basis, to accounts x01 -xxxx -5060. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of December, 2010. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis City Clerk, CMC (City Seal) COUNCIL AGENDA STATEMENT Meeting Date: December 13, 2010 t of Stk. Through: Phillip Oates, City Manage ' T1 From: Kristin Erchinger, Finance Director yptio Agenda Item: 2010 Budget Amendment appropriating State PERS on- behalf contribution BACKGROUND & JUSTIFICATION: In 2008, the State legislature passed House Bill 310, appropriating $241.6 million directly to PERS on behalf of Alaska municipalities, to help offset retirement liability cost increases to local taxpayers. In 2009, the legislature passed House Bill 81, appropriating $107.9 million to help subsidize PERS costs for employers. This amount is being paid directly to the City's PERS account with the State of Alaska Division of Retirement & Benefits. While the funds did not come directly through the City, we are nonetheless required to account for the State's contribution on the City's books, and to book the corresponding expense. In 2008, Senate Bill 125 was passed, capping the annual PERS contribution rates for employers at 22 %, and creating a cost - sharing plan in which all employers pay the same employer contribution rate. This was a departure from the previous plan, in which every employer was assigned a different employer cost rate, depending on their individual experience. The Alaska Retirement Management Board has established the PERS employer contribution rates as follows: 2009 2010 2011 Normal Cost 13.72% 9.46% 9.33% Past Service Cost 21.50% 18.19% 18.63% Total Rate 35.22% 27.65% 27.96% Pension Cost 10.91% 10.25% 9.98% Healthcare Cost 24.31% 17.40% 17.98% Total Rate 35.22% 27.65% 27.96% State On- Behalf Rate 13.22% 5.65% 5.96% State's Contribution $430,411.62 $127,557.38' The State is on a fiscal year ending June 30, so the City applies the 2010 rate to employee wages for the period January 1 through June 30, 2010, and the 2011 rate for wages for the period July 1 through December 31, 2010. For the first half of the City's calendar year 2010, the State's contributions to PERS on the City's behalf, totals $127,557.38. Staff will return to the City Council in January to request the second on- behalf appropriation to retroactively amend the 2010 r, 1 This reflects the first half of 2010 (January 2010 through June 2010) and will be updated in January, 2011. CITY OF SEWARD RESOLUTION 2010 - Page Two budget to reflect State contributions on behalf of the City of Seward for the period July 1, 2010 through December 31, 2010. Municipal governments in Alaska have benefited significantly by the State's coverage of PERS costs in excess of 22 %. However, it is important to note that the legislature may, at any time, modify the amount of subsidy provided by the State toward PERS contributions. Any future reduction in the State's current practice of covering contribution rates exceeding 22 %, will equate to equivalent additional required contributions by the City. CONSISTENCY CHECKLIST: Yes No 1. Comprehensive Plan 2. Strategic Plan 3. Other 4. Not applicable X ATTORNEY REVIEW: X Yes No FISCAL NOTE: The State's contribution of $127,557.38 is considered a State grant award and is recognized as such on the City's financial statements, and an equivalent amount is recorded as retirement expense, allocated on a pro -rata basis, to each department's operating budget. Approved by Finance Department deL,.r RECOMMENDATION: Council approve Resolution 2010-11 amending the 2010 Operating Budget by appropriating $127,557.38 from State grant revenues, to various fund retirement expense accounts, on a pro - rata basis, to accounts XOX -XXXX -5060. acpilprp h ASKA / :::L5 GOVERNOR Juneau, AK 99811 -0203 TDD: (907) 465 -2805 DEPARTMENT OF ADMINISTRATION PHONE: (907) 465 -4460 (90T) 465 -4460 DIVISION OF RETIREMENT AND BENEFITS TOLL-FREE: 1-800-821 -2251 August 13, 2010 CITY OF SEWARD KRISTIN M ERCHINGER, FINANCE DIRECTOR PO BOX 167 SEWARD AK 99664 -0167 RE: Employer Relief Funding - PERS ER 182 During the 2009 legislative session, House Bill 81 (HB81) passed providing funding relief for PERS employer contributions for Fiscal Year 2010 (FY10). HB81, Section 23 (b) read as follows: (b) The sum of $107,953,000 is appropriated from the general fund to the Department of Administration for deposit in the defined benefit plan account in the public employees' retirement system as an additional state contribution under AS 39.35.280 for the fiscal year ending June 30, 2010. HB81 can be found at http: / /www.legis. state _ak.us /PDF /26Bills/HB0081Z.P.DF (Section 23 - page 81). The FY10 Alaska Retirement Management Board adopted rate was 27.65 percent, with HB81 providing a relief rate of 5.65 percent for each FY10 employer payroll. Relief funding was applied with the processing of each employer payroll with payroll end dates between July 1, 2009 and June 30, 2010, and received by the Division by July 31, 2010. All such payrolls have been processed, and we have trued -up your account by making an adjusting entry. Enclosed is a report detailing the actuals for the Employer Relief Funding allocated for fiscal year 2010 payrolls. This is your final statement for FY10. Please feel free to contact me via telephone at (907) 465 -5718 or email at elizabeth.dunayski@alaska.gov if you have any questions or need additional information regarding 11B81. Si Se -ly, T411/ v Eliza b eth Dunayski Accountant Fl/Enclosure 3 r r t .. .:. ::::.:... - :.:....::' ....!'. State of Alaska' Division of etire ent & Benef ts ~ , FY2a -fo HB$I Employer Relief Detail F1nal Actuals _ CITY OR SEWARD ER '1'821 a ✓fir 1- t �� Payroll "' Other Post - employment F{= Ending Date . ,.__ t - � ensi n F Healthcari ,? r: Total =; 07/04/2009 3,826.63 6,744.15 10,570.78 07/18/2009 3,800.03 6,697.23 10,497.26 08/01/2009 3,518.18 6,200.47 9,718.65 08/15/2009 3,610.96 6,364.01 9,974.97 08/29/2009 3,536.35 6,232.56 9,768.91 09/12/2009 3,558.62 6,271.76 9,830.38 09/26/2009 3,469.05 6,113.94 9,582.99 10/10/2009 3,527.70 6,217.28 9,744.98 10/24/2009 3,654.44 6,440.68 10,095.12 11/07/2009 3,590.38 6,327.72 9,918.10 11/21/2009 4,462.06 7,864.03 12,326.09 12/05/2009 3,939.52 6,943.27 10,882.79 12/19/2009 3,503.02 6,173.90 9,676.92 01/02/2010 3,853.66 6,791.80 10,645.46 01/16/2010 3,538.69 6,236.68 9,775.37 01/30/2010 3,640.28 6,415.75 10,056.03 02/13/2010 3,706.31 6,532.08 10,238.39 02/27/2010 3,769.55 6,643.51 10,413.06 03/13/2010 3,936.22 6,937.28 10,873.50 03/27/2010 3,575.20 6,301.07 9,876.27 03/31/2010 24.54 43.26 67.80 04/10/2010 3,627.54 6,393.27 10,020.81 04/24/2010 3,601.70 6,347.71 9,949.41 05/08/2010 3 6,303.96 9,880.83 05/22/2010 3,725.02 6,565.12 10,290.14 06/05/2010 3,750.19 6,609.47 10,359.66 06/19/2010 3,620.16 6,380.33 10,000.49 06/30/2010 Year -End Adjustment 11,241.73 (16,131.57) (4,889.84) TOTALS FOR CITY OF SEWARD $107,184.60 $152,960.72 $260,145.32 ) Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -120 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING AN ALTERNATIVE ALLOCATION METHOD FOR THE FY2011 SHARED FISHERIES BUSINESS TAX PROGRAM, AND CERTIFYING THAT THIS ALLOCATION METHOD FAIRLY REPRESENTS THE DISTRIBUTION OF SIGNIFICANT EFFECTS OF FISHERIES BUSINESS ACTIVITY IN THE COOK INLET FISHERIES MANAGEMENT AREA WHEREAS, the State of Alaska requires that for a municipality to participate in the FY2011 Shared Fisheries Business Tax Program ( "Program "), the municipality must demonstrate to the Department of Commerce, Community and Economic Development that the municipality experienced significant effects during calendar year 2009 from fisheries business activities; and WHEREAS, the Program provides for the allocation of available program funding to eligible municipalities located within fisheries management areas specified by the Department of Commerce, Community, and Economic Development; and WHEREAS, the Program provides for the use, at the discretion of the Department of Commerce, Community, and Economic Development, of alternative allocation methods which may be used within fisheries management areas if all eligible municipalities within the area agree to use this method, and the method incorporates some measure of the relative significant effect of fisheries business activity on the respective municipalities in the area; and WHEREAS, the City Council of the City of Seward, Alaska proposes to use an alternative allocation method for allocating the approximately $69,514.16 in FY2011 funding available within the Cook Inlet Fisheries Management Area, in agreement with all other municipalities in the area participating in the FY2011 Shared Fisheries Business Tax Program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. By this resolution the Council certifies that the City of Seward did experience significant effects during calendar year 2009 from fisheries business activities that occurred within the Cook Inlet fisheries management area, and seeks to apply for funding under the FY2011 Shared Fisheries Business Tax Program. Section 2. All eligible communities in the Cook Inlet fisheries management area will receive fifty percent (50 %) divided equally and fifty percent (50 %) divided on a per capita basis. 4 I CITY OF SEWARD RESOLUTION 2010 -120 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 13th day of December, 2010. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor ATTEST: Jean Lewis, CMC City Clerk 4 COUNCIL AGENDA STATEMENT Meeting Date: December 13, 2010 Xx S k 71,0,411 / Through: Phillip Oates, City ManageL ° =•1= From: Kristin Erchinger, Finance Director il q�� P ` Agenda Item: 2011 Shared Fisheries Business Tax Progra BACKGROUND & JUSTIFICATION: The City of Seward is required to apply to the State of Alaska Department of Community and Economic Development (DCED) each year, to qualify for funding under the State's Shared Fisheries Business Tax Program. The purpose of the program is to provide for a sharing of state fish tax collected outside municipal boundaries, with municipalities that have been affected by fishing industry activities. This is the 18th year of this program, and municipalities across the state will share tax revenues from 2009 fisheries activity as reported by fish processors on their fish tax returns. The law that created this program requires that funding be allocated first to fisheries management areas across the state based on the level of fish processed in each area, compared to the total fish processed for the whole state. Then, funding is allocated among the municipalities located within each fisheries management area, based on the relative level of impacts experienced by each municipality. Seward is located in the Cook Inlet Fisheries Management Area, which includes Anchorage, Homer, Kenai, Kenai Peninsula Borough, Kachemak, Seldovia, Soldotna, and Seward. The State's FY2011 program allocation to be shared within this area is approximately $69,514, up $11,568 from the prior year. In fisheries management areas where the program allocation is greater than $4,000 multiplied by the number of municipalities in the area, program regulations provide for a "long- form" application. In the Cook Inlet Fisheries Management Area, the threshold value is $32,000 (8 municipalities x $4,000). The final deadline for submitting application for the FY2011 Shared Fisheries Business Tax Program is December 15, 2010. The long -form application provides for a "standard" and an "alternative" method of funding allocation. The City of Seward will file under the alternative method. Standard Method: Under this method, each municipality must determine and document the cost of fisheries business impacts experienced by the community in 2009. Once the impacts have been established for each of the municipalities, the DCED will calculate the allocation for each municipality using the following formula: One -half of the available funding is divided among participating municipalities on the basis of the relative dollar amount of impact in each community. The other half of the available funding is divided among municipalities based on the relative dollar amount of impact per capita in each community. COUNCIL AGENDA STATEMENT FY2011 Shared Fisheries Business Tax Program Page Two Alternative Method: Alternative allocation methods may be proposed by the municipalities within the area. DCED will consider approving the use of a proposed alternative method only if all the municipalities in the area agree to use the method, and if the method includes some measure of the relative effects of the fishing industry on the respective municipalities in the area. The short-form method allocates the available funds by sharing 50% of the funds equally among the participating municipalities, and allocating the remaining 50% on a per - capita basis. The amount allocated this year is more than in previous years, and would require filing the long -form application, since the funding allocation does meet the established threshold. The information required by the long - form application would be difficult and time - consuming to obtain. Therefore, it is proposed that municipalities in our area use the alternative method and that we further agree that the allocation method be the same method used in the short form allocation. Given the small amount of additional funding that the City might gain by utilizing the standard method, compared to the additional time required to complete the application, it is our recommendation that the city of Seward agree to use the alternative method and agree that 50% of the funds will be allocated equally among the participating municipalities, and the remaining 50% allocated on a per- capita basis. This will be the eleventh consecutive year of using this method. 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: Using this same allocation method, Seward expects to receive approximately $5,000 in 2011. Approved by Finance Department: 941 RECOMMENDATION: Council approve Resolution 2010 - f ZCadopting an alternative method for the FY2011 Shared Fisheries Business Tax Program, and certifying that this allocation method fairly represents the distribution of significant effects of fisheries business activity in the Cook Inlet Fisheries Management Area and authorize the city manager to apply for funds from the Shared Fisheries Business Tax Program. t Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -121 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO APPROPRIATE ADDITIONAL FUNDS TO COMPLETE THE VOIP/PBX INSTALLATION FOR THE CITY OF SEWARD, PROVIDENCE SEWARD MEDICAL CENTER AND SEWARD MOUNTAIN HAVEN IN THE AMOUNT OF $20,643.65 WHEREAS, it was determined in 2008 that the telephone system was out -dated causing interruptions to service and cost more to maintain and operate on an annual basis than an upgraded system; and WHEREAS, the local telephone company TelAlaska, Incorporated ( "TelAlaska ") reviewed the City's current system and recommended upgrading the current system to VOIP /PBX rather than replacing the entire telephone system; and WHEREAS, a sole source contract was issued to TelAlaska with Resolution 2008- 082 under Seward City Code §6.10.120(a)(5), §6.10.120(a)(8) and §6.10.120(a)(9) that exempts specialized products and professional services from the competitive procurement process, including "the purchase of electronic data processing software and hardware systems and communication equipment "; and WHEREAS, when the project began in 2008 there were a number of system unknowns in conjunction with the Seward Police Dispatch System, necessary upgrades to other wiring and equipment within exciting City Facilities including City Hall and the Public Works Shop, and the system at Seward Providence Hospital to include the then construction project of Seward Mountain Haven; and WHEREAS, because of the system unknowns and additional integration required, an additional $20,643.65 must be appropriated for upgrades to network equipment ($11,586.56), final contract work and additional from ProComm Alaska, LLC for Dispatch Headset incorporation ($1,132), and TelAlaska Change Order #8 to complete work at Seward Mountain Haven ($7,925.09); and WHEREAS, to the best of Administration's knowledge based on submitted requests from TelAlaska and ProComm these are the final costs for the project, however if additional work is required to fully incorporate Police Dispatch, then project costs will be taken out of Police Department's Communication Budget or, if necessary, return to Council for further appropriation. 5 CITY OF SEWARD, ALASKA RESOLUTION 2010 -121 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 Change Order #8 with TelAlaska, Inc. in the amount of $7,925.09, complete the Seward Police Headset incorporation with ProComm Alaska for $1,132, and fund the necessary equipment purchases for system integration for $11,586.56. Section 2. The amount of $20,643.65 is hereby appropriated from the General Fund's fund balance account no. 101- 0000 - 3071 -0668 to the City Hall Equipment account no. 668 -000- 3070 -0101 to complete the VOIP /PBX project account no. 668- 6680 -5930. 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 13th day of December, 2010. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, CMC City Clerk 5 Council Agenda Statement a Of sett, k 9 � Meeting Date: December 13, 2010 From: Community Development Director Christy Terry '�tASKP Through: City Manager Phillip Oates Agenda Item: Authorizing the City Manager to appropriate additional funds to complete the VOIP /PBX installation for the City of Seward, Providence Seward Medical Center and Seward Mountain Haven in the Amount of $20,643.65 BACKGROUND & JUSTIFICATION: In 2008 City administration realized that the then current telephone system had reached its limits and started to fail with interruptions to service including dropped customer calls and inaccessible voicemail. Operational and maintenance costs continued to rise and the need for an immediate upgrade to save costs, respond to our customer's needs and become energy efficient was paramount. The local telephone company TelAlaska, Incorporated ( "TelAlaska ") reviewed the City's then current system and recommended upgrading the current system to VOIP /PBX rather than replacing the entire telephone system. When the project began in 2008 there were a number of system unknowns in conjunction with the Seward Police Dispatch System, necessary upgrades to other wiring and equipment within ty.`tstinc City Facilities including City Hall and the Public Works Shop, and unknown requirements for the system at Seward Providence Hospital to include the then construction project of Seward Mountain Haven. As the installation progressed, the logistical unknowns were completed within the Council authorized contingency. At this point in the project, Administration is bringing forward this appropriation request for the final equipment purchases to update and install the network equipment required for the VOIP /PBX for City of Seward facilities and also the final system specifications at the Providence Seward Hospital and Seward Mountain Haven. The Providence systems have been fully incorporated and are providing savings based on additional features and added systems. However, for the City to realize the monthly operation savings discussed in the original contract, the Seward Police Department must be fully incorporated into the system. Also, having the Seward Police Department on a separate system is becoming increasing inefficient. Administration has diligently tried to solve logical issues to complete the final element necessary to assimilate the Police Department into the VOIP /PBX system. The Dispatch headset feature is a required tool for dispatchers to safely complete their duties with a multitude of concurrent tasks for them to monitor. To the best of Administration's 47 headset feature is a required tool for dispatchers to safely complete their duties with a multitude of concurrent tasks for them to monitor. To the best of Administration's knowledge, based on submitted requests from TelAlaska and ProComm, these are the final costs for the dispatch portion of the project. However if additional work is required to fully incorporate Police Dispatch, then project costs will be taken out of Police Department's Communication Budget or, if necessary, return to Council for further appropriation. INTENT: Appropriate funds to complete the telephone infrastructure and upgrade to a PBX/VOIP System that began in 2008. 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 Procedure. In 2008 a sole source contract was issued to TelAlaska with Resolution 2008- 082 that was consistent with Seward City Code §6.10.120(a)(5), §6.10.120(a)(8) and §6.10.120(a)(9) that exempts specialized products and professional services from the competitive procurement process, including "the purchase of electronic data processing software and hardware systems and communication equipment FISCAL NOTE: For a total additional appropriation of $20,643.65 the City Manager is hereby authorized to fund the completion of the VOIP /PBX installation by entering into Change Order #8 with TelAlaska, Inc. in the amount of $7,925.09, complete the Seward Police Dispatch Headset incorporation with ProComm Alaska for $1,132, and fund the necessary equipment purchases for the City Facilities system integration for $11,586.56. Approved by Finance Department J /4 ATTORNEY REVIEW: Yes_ No X RECOMMENDATION: The City Council approve Resolution 2010- , authorizing the City Manager to appropriate additional funds to complete the VOIP /PBX installation for the City of Seward, Providence Seward Medical Center and Seward Mountain Haven in the Amount of $20,643.65. 4 Change Order No. 8 The parties hereby agree that the following change(s) (the "Changes ") shall be made to the services to be provided by TelAlaska in the Original Contract: Long Term Care Facility SpectraLink phones issues revolving around the phones not receiving alarms from the Nurse On Call SVP server. TelAlaska additional 60 plus hours of onsite work and sitting in on conference calls with Providence TI personnel and engineers from RF Technologies. Issues occurring between September - November. 2. As consideration for the Changes, the Client shall pay to TelAlaska the additional sum as detailed below, which shall be paid upon completion of the work to be performed under the Original Contract. Original Contract Price $289,460.30 Total of previously approved Change $63,039.86 Orders Amount approved with this Change $7,925.09 Order New Contract Price $360,425.25 3. The parties hereby confirm that all other terms and conditions of the Original Contract are in full force and effect, unamended except as expressly provided in this Change Order or in any other Change Order agreed to in writing between the parties hereto. Dated: Work Order #: Client Signature TelAlaska Representative Signature Company TelAlaska Inc. 4 Date Technician Hours Description 9/1/09 JOHNSON, STEPHEN 3.5 work on speciralink issues/ finish labels for LTC 911/09 PAUL, CLINTON 5 Try to program Spectralink system, Work with Prov, RF tech 9/4/09 JOHNSON, STEPHEN 2.5 work on issues with spectralink phones 9/4/09 PAUL, CLINTON 6 Programming Sprectralink sys. Working with Nate/Prov. Programming 9/25 /09 PAUL, CLINTON 4 Testing LTC, Push to Talk. Park and Page 9/28/09 PAUL, CLINTON 4 Final configuration. Spectralink lesing 9/30 /09 JOHNSON, STEPHEN 1 troubleshoot spectalink at LTC, conned end test faxes 9/30 /09 PAUL, CLINTON 5 Final configuration, Spectralink testing, VM AA 10/2/09 JOHNSON, STEPHEN 4 troubleshoot on spectrafinks with PROV, work on connectivity between systems 10/2/09 PAUL, CLINTON 3 Spectralink testing LTC 10/6/09 JOHNSON, STEPHEN 1.5 testing spectralinks—clearing for use 10113/09 JOHNSON, STEPHEN 0.05 troublshootin spectrafinks and going over provisioing 10/14/09 JOHNSON, STEPHEN 3.25 emails/phone calls/troubleshooting spectrafinks— repair text Issue PKM's 10/19/09 JOHNSON, STEPHEN 1.5 work with john on switch programming for spectrallnks and testing 10/2909 JOHNSON, STEPHEN 2.5 emafs/ phone calls w/prov about spectrafink /testing text message at LTC 10/29/09 PAUL. CLINTON 2 SO1125933 testing spectralink phones 10/30/09 JOHNSON, STEPHEN 3.5 reprovislon spectralink for prov network and then change back to our networklesting/ematls and phon 10/30/09 PAUL, CLINTON 3 testing spectralink phones 11/9/2009 JOHNSON, STEPHEN 0.5 smalls to provtvork talk to john about spectralinks ssues 11/12/2009 JOHNSON, STEPHEN 3 work with prov and john f. testing spectrafinks w /new AP 11/13/2009 JOHNSON, STEPHEN 6 troubleshoot/repair bad cats at providence.inslafi phones in old Total Hours 64.8 11/15/2010 Quote # 10 -187 r ter_ El- _ B BS B= •• -•MGM I A L A S K AJ 4831 Old Seward Highway, Unit 111 • Anchorage, Alaska 99503 Voice: (907) 563 -1176 • Fax: (907) 261 -2663 Christy Terry Community Development Director City of Seward PO Box 167 Seward, Alaska 99664 The objective of this project is to interface the console headsets with the new VOIP telephones at the City of Seward PD dispatch. No warranty is expressed or implied. Quantity Unit Description Price per Unit Price 1 ea 1 Day System Technician Labor and Travel $1,132.00 $1,132.00 Includes round trip travel to City of Seward PD. PCA technician to interface customer owned headsets with the new VOIP telephone system at PD dispatch and perform system tests with City of Seward personnel for final acceptance. The City of Seward will be responsible for arranging IT personnel presence during this project. r This pricing is valid for 30 days II f I Total I $1,132.00 iI CONFIDENTIAL PROPRIETARY INFORMATION: This document and the products and/or services described herein are the property of ProComm Alaska, LLC. The unauthorized disclosure in any form is prohibited. Thank you for giving us the opportunity to bid for your business. As always, it's a pleasure doing business with you. We look forward to completing this order to your satisfaction. Sincerely, Cheryl Kosse Customer Service 907 - 261 -2600 0 .. Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -122 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPOINTING INDIVIDUALS TO SERVE AS CHARTER MEMBERS OF THE SEWARD COMMUNITY HEALTH CENTER BOARD OF DIRECTORS WHEREAS, the City Council approved Resolution 2010 -109 on November 8, 2010 directing the City Manager to submit an application for Federal Funding to establish a Federal Qualified Community Health Center. WHEREAS, the federal statutes and regulations regarding Federal Qualified Community Health Centers requires that where a City partners with a nonprofit community health center, the initial board of directors should be appointed by the City. WHEREAS, the City Council published a notice to the public on November 2, 2010, seeking applicants from the community to be appointed by the City Council to the board of directors for a nonprofit community health center. WHEREAS, the City Council has received applications from various individuals within the greater Seward area who wish to serve as members of the board of directors of the nonprofit community health center. WHEREAS, the City Council finds that it is in the best interests of the City of Seward to appoint persons to the board of directors of the nonprofit community health center. WHEREAS, a revision of Title 2 of the Code of the City of Seward, Alaska authorizes the City Council to appoint the initial board of directors for the independent non - profit entity that will operate a community health center in Seward. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The following volunteers will serve as the charter members of the Seward Community Health Center Board of Directors: Jean Bardarson Patty Beals Keith Campbell Paul Caseman Kris Erchinger Susan Ernst r Dave Hamner Carol Jaffa Marianna Keil Melissa Kompkoff Stacey Lane Maya Moriarty Brooke Scalzo Teresa (Roy) Thomason Lisa Williams Section 2. Patty Beals will serve as the interim Chairman of the Board until the Board of Directors select their officers. Section 3. As replacement or additional board members are necessary for the Seward Community Health Center, the City Council recommends that the Board of Directors of the Seward Community Health Center consider the following volunteers for those positions: Linda Amberg Margaret Anderson Rhonda Berklund Doug Capra Duane Chase Father Michael Curan Lois Daubney Rose Hettrick Bruce Jaffa Stacey Johnson Tena Morgan Skip Reierson Vanta Shafer Tony Simenski Christine Stauffer Section 4. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13 day of December, 2010. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor 5 i Council Agenda Statement r 4 Of SF ly Meeting Date: December 13, 2010 ';\-4 4 '.A From: Phillip Oates, City Manage�� Agenda Item: Appointing individuals to serve as charter members of the Seward Community Health Center Board of Directors BACKGROUND & JUSTIFICATION: The City Manager has submitted an initial application for Health Center Funding to establish a Federally Qualified Health Center (FQHC). Such a Center is also known as a Community Health Center. There are many financial and other incentives for establishing a Community Health Center that include opportunities to (1) make affordable primary health care available to a larger percentage of individuals who do not have health insurance or are under insured; (2) achieve improvement in financial sustainability in comparison to the Seward health care system losses of $2.5 million in 2009; (3) receive additional Federal grants for the center; (4) obtain higher reimbursement rates for Medicare and Medicaid patients; (5) obtain repayment of medical school tuition to attract doctors; (6) obtain Federal protection for malpractice exposure that would reduce the cost of malpractice insurance; and (7) collaborate and contract with other community health providers to expand access to health care and reduce costs. The Community Health Center would be governed by a "co- applicant" Board of Directors made up primarily of representative community members who use the Center for their primary care. Initial board members must be appointed by the City Council. A recent revision to Title 2 of the City Code of the City of Seward, Alaska, authorizes the City Council to accomplish this requirement and appoint the initial board members for the independent non -profit entity that will operate the CHC in Seward. The City Council published a notice to the public on November 2, 2010, seeking applicants from the community to be appointed by the City Council to the board of directors for the nonprofit Community Health Center. This resolution provides the names of volunteers who meet the criteria to serve on the board for approval by the City Council. In addition to identifying the charter Board Members the resolution identifies individuals for future consideration by the Board of Directors of the Seward Community Health Center as replacement or additional board members are necessary for the organization. INTENT: The intent of this resolution is to establish the charter members of the Board of Directors for the Seward Community Health Center and identify prospective board members for future consideration by the Board of Directors of the Seward Community Health Center. 54 CONSISTENCY CHECKLIST Where applicable, this resolution is consistent with guidance and directives in the Seward City Code, City Charter, Comprehensive Plans, Land Use Plans, Strategic Plan, and the City Council Rules of Procedures. FISCAL NOTE: We expect there will be start up costs associated with the new CHC. The magnitude of those costs is unknown and many of those costs may be reimbursable. In the meantime, we anticipate utilizing the $500,000 in funding we have currently reserved from fund balance for start-up. Approved by Finance Department: ATTORNEY REVIEW: Yes No X RECOMMENDATION Council approve Resolution 2010 - 7.7—establishing the charter members of the Board of Directors for the Seward Community Health Center and identifying prospective board members for future consideration by the Board of Directors as replacement or additional board members are necessary for the organization. ,) Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -123 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH HARRIS SAND AND GRAVEL FOR AN AMOUNT NOT TO EXCEED $42,000 FOR REPAIRS TO T DOCK AND APPROPRIATING FUNDS WHEREAS, T Dock in the Seward Harbor sustained damage from a transient vessel during the summer of 2010, which will require the replacement of two pilings and repairs to a damaged stringer; and WHEREAS, City Administration has worked with AMLJIA to conduct an investigation of the incident and to develop a plan to complete repairs to the dock; and WHEREAS, three companies were sent a request for quote to complete the repairs to the dock, and two companies replied; the lowest quote from Harris Sand and Gravel. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to enter into a contract with Harris Sand and Gravel in an amount not to exceed $42,000, in substantial form as attached hereto. Section 2. Funding in the amount of $42,000 is hereby appropriated as follows: 1.) $17,559 from harbor enterprise fund reserve account no. 401 - 0000 -3050; and 2.) $24,441 from AMLJIA insurance recovery account no. 401 - 4110 -5371, for a total of $42,000 to the harbor wharves and docks maintenance and repair account no. 401 - 4100 -5380. Section 3. This appropriation is effective January 1, 2011. Section 4. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13 day of December, 2010. r Council Agenda Statement Meeting Date: December 13, 2010 4 S Through: Phillip Oates, City Mana er p From: Kari Anderson , Harbormaster q ,•- � Agenda Item: Authorizing a Contract with Harris Sand and Gravel and Appropriating funds for T -Dock Repairs BACKGROUND & JUSTIFICATION: During the month August of 2010, Harbor staff became aware of damage to the south face of T- Dock. City Administration has worked with AMLJIA to conduct an investigation of the incident, and to develop a repair strategy for this dock. URS Engineering completed a damage report and repair drawings for plans to replace two pilings and the damaged stringer. The City of Seward submitted a request for quote to three companies: West Construction, Harris Sand and Gravel, and Storm Chasers Marine Services, Inc. Two companies responded to the request for quote: West Construction in the amount of $80,600 and Harris Sand and Gravel in the amount of $42,000. The City of Seward intends to enter into a contract with Harris Sand and Gravel to complete the repairs to T -Dock prior to April 2011. INTENT: To award a contract to Harris Sand & Gravel to complete repairs to T -Dock and appropriate funds for the repair. 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 or Other Plans or Policies: Yes (List Below) No 1. Comprehensive Plan Economic Development, Small Boat Harbor Development, expand and maximize potential of the existing harbor. 2. Strategic Plan Economic Base, Improve and Expand Maritime Facilities FISCAL NOTE: Funding for this project will be appropriated from the harbor enterprise fund reserve account (to cover the remaining deductible) and from the AMLJIA insurance recovery account. The deductible for this incident is $25,000, of which $7,441 has been utilized for a damage report and repair plans. Approved by Finance Department: X14 - ')4.j f ATTORNEY REVIEW: Yes X No RECOMMENDATION: City Council approve resolution 2010- /..3 authorizing the City Manager to enter into a contract with Harris Sand & Gravel in an amount not to exceed $42,000 and appropriating funds. URS September 30, 2010 Kari Anderson Harbormaster City of Seward PO Box 167 Seward Alaska 99664 RE: T Dock Damage Report Dear Kari: Please consider this letter a report of the findings of an inspection of the vessel impact damage to T Dock based on URS's field investigation on September 7, 2010. On Tuesday September 7, 2010 I traveled to Seward to observe the South West corner of the Seaward Harbor T Dock for a damage assessment related to a reported vessel impact. This dock was recently renovated in 2008. The renovations included new decking, new ladders, replacing damaged fender piling, fender pile chocking, and other items. I found damage to the ladder, 2 fender piling, and exterior stinger in the area of bearing pile bents (rows) 35 and 34 in the South West corner on the face of the dock, shown in Photo 1. These items are described in more detail below: • . ON • r � r' 116 L 11 I l f a ir Photo 1: Damaged area of T Dock. URS Corporation 560 East 34'" Street, Ste 100 Anchorage, AK 99503 Phone: 907.562.3366 Fax: 907.562.1297 www.urscorp.com J URS Ladder: The ladder suffered impact damage to the vertical side tube, shown in Photo 2. This bent the tube and pushed the support and attachment plate into the exterior stinger on the dock. This ladder should be replaced. 11 II II mour y , Photo 2: Ladder damage. Fender Piling: The fender piling between bearing pile bent /row 34 and 35 was cracked and deformed from impact damage, as shown in Photo 3. The fender piling at bent 34 was broken and the upper portion of the fender pile was missing (see Photo 1 and 4). There was creosote in the attachment hoop indicating that a pile had been there recently. The fender piling are required to provide safe berthing and mooring and should be replaced. • Glu -lam beam Stringer damage Damaged z I J Ladder - = Damaged fender pile Photo 3: Damaged fender piling between bents 34 and 35. Also note stringer and ladder damage. 5 9 Uit.S . ' ..- '� L . P 1.. .-*- ar 4 . ,, , : 0 4 ' 1 .. a 1 i ,, i • ' 11 f ,,, i Photo 4: Broken fender piling at bent 34. Exterior Stringer: The exterior stringer was cracked and damaged. It had been pushed in and was partially offset under the dock from impact force on the ladder attachments, as shown in Photos 3, 5 and 6. The exterior stringer spans bents 34 and 35 and is connected with a dap splice connection over pile caps at the bents. The stringer is a primary structural member and should be replaced. " 1 j Photo 5: Damaged exterior stringer at ladder attachment. 0 URS fj f: ;, ov et 1 Photo 6: Offset exterior stinger. Berthing Operations and Forces: A normal berthing operation is done in such a way as to avoid damage to the vessel or dock. The key factors are approach velocity, vessel displacement or weight, and approach angle. Obviously, the faster a vessel approaches the more energy it will have and the greater possibility of damage. Likewise the heavier the vessel is and the more direct the angle into the face of the dock the greater the chance for damage. According to a Trellex Morse, Inc. marine fender design manual, a typical design criteria approach considers a velocity component, perpendicular to the face of the dock, for a 100 ton or less vessel in a protected harbor, is about 0.3 meter per second or about 1 foot per second. (This is the part of the movement that is directed into the face of the dock, not the forward movement of the vessel which would be more.) According to this manual a typical approach angle is 15 degrees or less. This means that a ship traveling at about 4 feet per second (or about 2.3 knots) forward and at an angle of about 15 degrees to the face of the dock would be considered a reasonable upper limit for a design berthing event. It is beyond the scope of this assessment to try and forensically identify the parameters of the event that caused the damage. However, it is reasonable to conclude from the damage that the berthing event that caused the damage was outside the normal parameters (i.e., faster than 2.3 knots, or was approaching the dock at an angle greater than 15 degrees, or both). Age and Condition of Damaged Components: URS was the engineer for the T Dock renovation work that was completed in 2008. Prior to completing the design, URS conducted a site visit to determine the elements of the dock that showed evidence of damage or wear and identified these for replacement. The attached engineering plan Drawings are from that plan set, and the area of recent vessel impact damage is identified on these drawings. From this we can determine the following about the age and condition of the damaged components: • The damaged ladder was replaced in 2008 and was in new condition. • The damaged fender piling between bents 34 and 35 was replaced in 2008 and was in new condition • The missing fender pile at bent 34 was in place prior to the 2008 repairs and was not replaced because it was in good condition at that time. • The exterior stringer was in place prior to the 2008 repairs and was in good condition at that time. r. - 0 J. y; }J : a , 1 1 II F . 1 °` }r i 1, - 1 ,. : 1 , V 1 ! I fd 1 „,..-4 , iG :- if..4 A i a 1 .. _ _ _ Area of damage at the SW comer of T Dock. � t . L _ a ' ' t ' ' ' 16'; - ie liti , , . • , Yom. &' i. F 1. : 7 : '' . ' - ■ t . ,a I ti F i I k ' __ I l t_ - _ Area of damage at the SW corner of T Dock. 62 y - One missing fender pile and one cracked fender pile 1 ry ,• , 1 tiN rS i 7 1 4 iY s z Bent ladder, cracked Fender pile, missing fender pile and cracked exterior stringer. i f. 0 1 f - IN r• of n 4 1 • .s Missing fender pile and cracked exter stringer r I f ' e'er ...., k `" � - oil tlig.1; , — .,,,,-- ,x — .. f g ; r 'i' ' • 4 - a - a ' � r Displaced dap connect for exter str 6 § - . \�� K � § ? Aw ? Displaced dap connection for exterior stringer Under deck framing, exterior and interior stringers . �: i z re 1, _ 00' -i , • ,- ii i 1/.4...„. , , ` :: '-. Under deck petroleum piping and catwalk Y • . 'Iti • r �R. I r 3 t ,4i ■ .11 • L i + t r7 Damaged ladder 6 ,'a z4. uc ' Damaged ladder and punching failure of exterior stringer • _ y' # Damaged ladder and cracked exterior stringer '1 i • ‘ 4 . , ,_„ . ...,,,.,.....,”:\ ... ,, .. .. _.,\ ,% 11 � f • Cracked fender pile and cracked exterior stringer �. s m , nra,. Deck and petroleum cabinet in damage area fr 5 • -«- • s - Deck and petroleum cabinet in damage area. Deck and petroleum cabinet in damage area. r ... . . . , . . .. . ... . > . »� v w : : . .«.. �. Deck and \d e in damage are . . > & 4 REQUEST FOR QUOTE DATE: 11/15/2010 o f SF TO: Licensed Marine Contractors a , A , FROM: City of Seward- Harbor Department SUBJECT: T -Dock Repairs- Request for Quote NAME AND LOCATION OF PROJECT T -Dock Repair and Piling Replacement, Seward Small Boat Harbor, Seward, Alaska DESCRIPTION OF WORK: The Scope of Work for this proposed contract encompasses replacing two broken pilings and furnishing and installing a two timber pilings in the north harbor area. This project also includes removing, repairing and re- installing a damaged galvanized ladder, and repairing a damaged stringer. Decking, bullrail, and other items shall be reinstalled in the same manner that they were originally found. Please see attached drawings and damage report for additional details on the scope of work. Qualified contractors must have proof of insurance including $1,000,000 general liability insurance, automobile liability, and workers compensation. The City of Seward must be named as an additional insured on the general liability and auto liability policies. A City of Seward business license must be obtained prior to the City of Seward issuing a contract for this project. All work must be completed prior to April 1, 2011. SUBMISSION OF QUOTES All quotes are requested as a lump sum amount to include mobilization, furnish & install 2 fender piling, existing (broken) piling removal, ladder repair, stringer repair, administration and inspection. Quotes including any amendments or withdrawals must be received by 4:30 pm on November 23, 2010. Quotes shall be submitted via email to harbormaster @cityofseward.net and marked as follows: QUOTE FOR: T -Dock Repair The City of Seward will send a response via email that your quote has been received. The City of Seward intends to award a contract for this repair work in early December. However, if all quotes exceed engineers repair estimate, the City may reduce the scope of work and request a second set of quotes for the project on short notice with those qualified contractors that responded to the initial request for quotes. The selection of the qualified contractor will be at the sole discretion of the City of Seward, and the City reserves the right to reject any and all quotes or not to award a contract if deemed in the best interest of the City. This solicitation does not commit the City of Seward to pay any cost incurred in the preparation of the quote or to award any contract. Please refer to Seward City Code of Ordinances §6.10.135 for requirements of responsive bidders. Provisions of Alaska Title 36, Public Contracts, Labor and Mechanics Minimum Rates of Pay, AS 36.05.010 and AS 36.05.030, are applicable to this contract. All questions about this project should be directed to Kari Anderson, Seward Harbormaster via email to: kanderson@cityofseward.net Invitation For Quotes Page 1 of 19 T -DOCK REPAIR CONSTRUCTION AGREEMENT BETWEEN: CITY OF SEWARD, ALASKA THE ( "CITY ") Post Office Box 167 Seward, Alaska 99664 Phone: 907.224.3138 Fax: 907.224.7187 and Harris Sand & Gravel, Inc. ( "HARRIS ") P.O. Box 6 Valdez, AK 99686 The City and Han agree as follows: SCOPE OF WORK Harris shall furnish all materials, Iabor and equipment necessary to complete repairs to T -Dock as described in the attached City of Seward Request for Quotes dated November 15, 2010 and the specifications pertaining thereto. TERM Harris agrees to commence the Scope of Work of this Agreement, as described in the Request for Quotes, immediately upon execution of this Agreement. Work shall be completed by April 1, 2011. DELIVERY Harris shall deliver all materials and perform all labor and services necessary to complete the Scope of Work in Seward, Alaska, as specifed in the Request for Quotes and Harris' Quote dated November 23, 2010. Harris is expressly allocated the risk of any loss associated with the delivery of materials including injury to third parties until the City takes possession. CONTRACT PRICE Following receipt of an invoice from Harris, the City agrees to pay $42,000.00 to Harris for Work actually delivered, completed, and accepted by the City. PRIORITY OF CONTRACT DOCUMENTS The documents below are referred to as the "Contract Documents" and are listed in order of priority in the event of conflict, errors or discrepancies and by this reference made a part of this Agreement: 1. This Agreement. 2. City of Seward Request for Quotes dated November 15, 2010. T -Dock Repair Construction Agreement Page 1 of 5 December 2010 e) 3. URS report dated September 30, 2010 and related drawings. 4. Harris Quote dated November 23, 2010. MATERIALS AND WORKMANSHIP All materials furnished by Harris shall be new and suitable for the intended purposes. CHANGE ORDERS No changes or substitutions shall be made in the Scope of Work without prior written authorization by the City, approved by Kari Anderson, Harbormaster ( "Change Order"). Requests for Change Orders shall be reviewed promptly upon receipt. Adjustments, if any, to the contract price shall be negotiated by the undersigned or other person designated in writing on behalf ofthe parties and agreed to in advance in writing. SUBCONTRACTORS / THIRD PARTIES Harris shall be as fully responsible for the acts or omissions of its subcontractors and of persons either directly or indirectly employed by them as for the acts or omissions of persons directly employed by Harris. Nothing contained in this Agreement shall create any contractual relationship between the City and any subcontractor. It is specifically understood between the parties that this Agreement does not make anyone a third party beneficiary, nor does this Agreement authorize anyone not an authorized party to maintain a lawsuit for personal injuries or property damage. THE CITY'S RIGHT OF INSPECTION The City, or its agents may, at any time during regular hours of operation, inspect the Scope of Work and services provided under this Agreement. Such inspections are solely for the benefit ofthe City and not for any third person. The exercise by the City or an agent acting on behalf of the City, of its rights under this paragraph, shall not imply any obligation to inspect or an obligation to inspect in any particular manner. The City reserves the right to refuse any damaged or unusable Work or materials not of equal or better quality than stated in the specifications in the Contract Documents. AMENDMENT This Agreement shall only be amended, modified or changed in writing, signed executed by an authorized representative of each of the parties. JURISDICTION, CHOICE OF LAW The laws of the State of Alaska shall govern the rights and obligations ofthe parties and interpretation of this Agreement. Venue for any legal actions arising from this Agreement shall be in Anchorage, Alaska. T -Dock Repair Construction Agreement Page 2 of 5 December _, 2010 r.a 1 3 IOW COMPLIANCE WITH LAWS Harris shall obtain, at its own expense, all necessary permits, rights -of -way or other consents from all governmental agencies and shall comply with all applicable federal, State and local laws, statutes, regulations and ordinances. Attached are a performance bond, insurance certificates, and contractor's license and bonding information. DEFAULT, REMEDIES, LIQUIDATED DAMAGES Harris' failure to comply with any representation or warranty made in this Agreement or the Quote dated November 23, 2010, shall be considered an event of default. In addition, Harris' failure to perform any other term, covenant or agreement contained in any of the Contract Documents shall be considered an event of default. An event of default by Harris and its refusal or inability to cure or diligently pursue a cure within the time authorized by the City, shall give the City the right, but not the obligation, to procure services and materials from another source (with any difference in cost to be paid by Harris) or to terminate this Agreement upon ten (10) days written notice to Harris. The City, upon termination of this Agreement, shall have the right but not the obligation to accept performance of the Work up to the date of termination. Upon termination as a result of Harris' breach, the City shall be entitled to a full refund of all amounts paid under this Agreement provided that in the event that the City exercises its ability to accept the Work, as completed to the date of termination, the City shall pay Harris for the Scope of Work completed to such date to the extent that such Work conforms to this Agreement. Amounts owed to either party pursuant to this paragraph may be offset. The City shall be entitled to liquidated damages in the amount of $250 per day for each day the Work is not completed prior to April 1, 2011. The parties agree that actual damages are impossible to calculate, and this amount is a reasonable estimate for damages to the City caused by delay. Remedies described herein are not exclusive and the City retains all other rights and remedies at law or in equity. TIMELINESS Time is of the essence for this Agreement. REPAIR OF DAMAGES CAUSED BY HARRIS All damage and injury to property that is caused by, or that results from performance of the Scope of Work by, or from any act, omission or neglect by Harris, its subcontractors or its employees, shall promptly be remedied by Harris either by repairing, rebuilding or replacing the property damaged or in some other manner satisfactory to the City and to the owner of such property. In case of failure on the part of Harris to promptly and satisfactorily remedy such damage or injury, the City may proceed to repair, rebuild or replace such property as required and the cost thereof will be deducted from any monies due or which may become due to Hands. In applying the above provisions, the repairing, rebuilding or replacing of damaged property shall be understood to include the providing of temporary facilities that may be needed to maintain normal service until the required repairing, rebuilding or replacing is accomplished. Restoration of damaged property includes removal of contaminated water or soil, remediation to the extent required by any State T Dock Repair Construction Agreement Page 3 of 5 December_, 2010 i -t or federal environmental law, regulation, or order of an agency having jurisdiction over a release of a contaminant or hazardous substance. RELEASE, INDEMNIFICATION AND INSURANCE Harris agrees to release, indemnify, defend and hold harmless the City, its officers, agents and employees from and against any and all claims, demands, losses, defense costs or liability of any kind or nature, including environmental liability, which the City, its officers, agents and employees may sustain or incur or which may be imposed upon them or injury to or death of persons or damage to property as a result of, arising out of or in any manner connected with Harris' performance under the terms of this Agreement, excepting only liability arising out of the negligence of the City. Without limiting Harris' obligations stated above in this paragraph, it is agreed that Harris shall maintain in force, at all times, during the performance of this Agreement the following policies of insurance, with deductibles acceptable to the City, covering its operations: Insurance Minimum Limits Comprehensive General Liability $1 Million combined limit each occurrence Worker's Compensation/EmpIoyer Liability As required by statute Automobile Liability - Covering bodily injury and $i Million combined limit per accident property damage, including all owned, hired and non -owned vehicles. Professional Liability — Covering all errors, $1 Million per occurrence/aggregate omissions, or negligent acts in the performance of services under this Agreement. Harris shall procure insurance for full replacement value of materials and to adequately insure against the loss of or damage to materials during shipment and at all times in Harris' possession. Costs of shipping and other insurance are covered by the contract price. Harris' insurance policies shall contain the following clauses: 1. The City, its officers, employees and volunteers are added as additional insured for operations of the named insured performed under contract with the City. 2. Any insurance maintained by the City shall apply in excess of, and not contribute with, insurance provided by Harris. 3. All insurance policies required by this Agreement shall contain a clause that the insurance shall not be canceled, limited, non - renewed, or otherwise materially changed without thirty (30) days prior written notice delivered to the City. 4. All policies shall be written by insurance companies legally authorized or licensed to do business T -Dock Repair Construction Agreement Page 4of5 December 2010 r i r d J in the State of Alaska and acceptable to the City. 5. Harris shall furnish to the City, certificates evidencing that it has procured the insurance required herein prior to commencement of the contract term. 6. All of the insurance policies described above shall provide that the insurers waive rights of subrogation against the City, its officers, agents and employees. ASSIGNMENT PROHIBITED Any assignment by Harris of its interest or responsibilities in any part of this Agreement or any delegation of duties under this Agreement shall be void and any attempt by Harris to assign any part of its interest or delegate duties under this Agreement shall give the City the right to terminate this Agreement immediately. This Agreement is entered into and effective when executed by both parties. CITY OF SEWARD, ALASKA HARRIS SAND & GRAVEL, INC. Phillip Oates, City Manager By: , 1 Ha vy ;s Its: P'e_s )cP DATE: DATE: / 2 / // /1/2 • r ATTEST: Jean Lewis, CMC, City Clerk Date: (City Seal) T -Dock Repair Construction Agreement Page 5 of 5 December _, 2010 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -124 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE 2010/2011 BIENNIAL BUDGET TO REFLECT MID -CYCLE BUDGET CHANGES TO THE ELECTRIC ENTERPRISE FUND ONLY, AND APPROPRIATING FUNDS WHEREAS, the 2010/2011 Biennial Budget was passed on November 23, 2009, reflecting the City's first biennial budget, and covering the period from January 1, 2010 through December 31, 2011; and WHEREAS, the City intends to do a mid -cycle budget adjustment at the end of each even - numbered year, to adjust the "off budget year" to reflect changes to the budget based on updated revenue information, economic conditions, and other timely and relevant information impacting the upcoming budget year; and WHEREAS, the City's Electric Enterprise Fund rates are insufficient to cover current operating costs and reserves are inadequate to cover capital - related costs, resulting in the rapid depletion of Electric Enterprise Fund reserves, and requiring significant cost - cutting measures which are primarily related to postponing right -of -way- clearing and deferring generator project costs and generator relocation costs; and WHEREAS, the budget as proposed results in a decrease in budgeted cash in 2011 of $48,587, and an estimated ending cash balance at December 31, 2011 of $623,263, and without further rate increases as recommended by the administration, or expense reductions, the Electric Enterprise Fund cash balance is expected to be fully depleted by the end of 2012; and WHEREAS, this resolution adopts specific changes to the Electric Enterprise Fund, with each specific line item change being reflected on the spreadsheet attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Electric Enterprise Fund 2011 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) Operating revenues are decreased by $1,883,299 primarily due to reduced fuel costs passed through to customers; 2) Operating expenses are decreased by $1,505,632 due primarily to lower than projected fuel costs, as well as the postponement in right -of -way clearing costs; and 3) Transfers -in are increased by $110,784 to reflect a loan payment from the General Fund, for a total decrease in the Electric Enterprise Fund budgeted net assets of $266,883. *^ ry li 1 CITY OF SEWARD, ALASKA RESOLUTION 2010 -124 Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 13th day of December, 2010. THE CITY OF SEWARD ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, City Clerk e 4 t..► COUNCIL AGENDA STATEMENT Meeting Date: December 13, 2010 1 sF�y Of Through: Phillip Oates, City Manager ° " From: Kristin Erchinger, Finance Director Y'- q� S RE: Mid - Cycle Budget Modifications for Electric Enterprise Fund 2011 B udget BACKGROUND & JUSTIFICATION: The City of Seward passed its first biennial budget on November 23, 2009 covering the period January 1, 2010 through December 31, 2011. The City intends to do a mid -cycle budget adjustment at least one time during the off -year of each biennial budget cycle (this will occur at the end of each even - numbered year, in preparation for the second year of the approved biennial budget). The purpose of the adjustment is to update information relative to current economic conditions, changes to major revenue categories, newly- acquired or more timely information regarding changes in costs which tend to swing broadly (i.e. heating fuel, health insurance), and any additional relevant financial information that is expected to impact the upcoming budget cycle. The Seward City Council met with staff in a work session on Monday, November 22, 2010, to review the proposed budget adjustments for the Electric Enterprise Fund. Staff again alerted the Council to the fact that the current electric tariff rates are insufficient to cover the operating costs of the utility, not to mention to address some significant capital needs including major repairs and maintenance. It is estimated that by the end of 2012, the Electric Enterprise Fund could exhaust its cash and fall into a deficit position if needed structural changes are not addressed. In order to address the budget deficiency in the short -run, staff postponed planned right -of -way clearing costs in 2010 of approximately $400,000, deferred planned spending on the generator project in 2010 totaling $230,000, and postponed work planned in 2011 to relocate generators into the new generator facility, estimated to cost $505,000. The budget adjustment also includes a new transfer to the Electric Fund from the General Fund to restore contributions made by the Electric Fund in past years to cover deficits in the SMIC enterprise Fund. In 2010 this transfer -in totaled $226,846, and in 2011 the budget amendment includes a transfer -in of $110,784.In addition, revenues and expenses have been modified to reflect a more accurate breakdown of energy costs into the costs of energy, fuel, and customer charges. 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: ATTORNEY REVIEW: X Yes No FISCAL NOTE: The net overall impact to net assets in the Electric Enterprise Fund is a reduction of $266,883 in net assets for 2011, based on the specific budget amendments on the attached resolution. Specifically, revenues are reduced $1,883,299, expenses are reduced $1,505,632, and transfers -in are increased by $110,784. RECOMMENDATION: City Council approve Resolution 2010- amending the 2011 Budget, and appropriating funds. n ELECTRIC ENTERPRISE FUND Amended Budgeted Statement of Revenues and Expenses And Change in Net Assets For Fiscal Year 2011 20II 20II Original Amended Budget Budget Subtotal Variance Operating revenue: Sales: Residential 3,657,690 3,043217 - 6I4,473 Residential Energy (KWH) 1,558,582 Residential Fuel I,083,600 Residential Customer Charge 401,034 Small General Service 1,854,857 1,569,443 - 285,414 Small General Energy (KWH) 859,950 Small General Fuel 516,600 Small General Customer Charge I92,893 Large General Service 4,274,847 3,597,317 - I,037,522 LGS (Railroad) 359,992 Large General Energy (KWH) I,373,388 Large General Fuel I,355,700 Large General Customer Charge 36,945 Large General Demand (KW) 831,285 Industrial Sales I,139,768 950,988 54,I10 Special Contract (Railroad) - 242,889 Industrial Energy (KWH) 104,403 0 Industrial Fuel 534,076 0 Industrial Customer Charge I,I53 0 Industrial Demand (KW) 311,356 0 Harbor Power Sales 263,630 263,630 0 Street & Yard Lights 75,500 75,500 0 Miscellaneous 101,300 I0I,300 0 Total operating revenue: $11,484,695 $9,60I,396 - $I,883,299 Operating expense: Before depreciation: Salaries 955,237 955237 0 Remove J. Bird salary from electric budget - 31,371 - 3I,371 Work order charges (salaries) - 200,000 - 200,000 0 Employee benefits 512,311 512,311 0 Remove J. Bird benefits from elec budget -2,76I -2,76I Purchased services 903,550 903,550 0 Heating fuel for generator building 500 500 Reduce ROW dearing cost - 400,000 - 400,000 Rent reduction due to new lease - 24,000 - 24,000 New heating /utilities for crew conex I0,000 10,000 New conex for crew dry/break room 40,000 40,000 Power for resale - Energy 5,450,000 I,290,000 - 4,I60,000 Power for resale - Fuel Costs 3,0I0,000 3,010,000 Supplies & maintenance 51I,I00 511,I00 0 Two all terrain vehicles for ROW dearing 40,000 40,000 Two new AutoCad computers 12,000 I2,000 Work order charges (supplies) - 200,000 - 200,000 0 General & Administrative I,I5I,385 1,151,385 0 Total operating expense: $9,083,583 $7,577,95I - $I,505,632 OL ELECTRIC ENTERPRISE FUND Amended Budgeted Statement of Revenues and Expenses And Change in Net Assets For Fiscal Year 2011 20I1 20II Original Amended Budget Budget Subtotal Variance Operating income before depreciation 2,401,112 2,023,445 Depreciation I,635,080 (c) I,635,080 0 Earnings from operations $766,032 $388,365 - 377,667 Non - operating revenue (expense) Interest income I07,000 107,000 Interest expense - 446,34I - 446,341 Other revenue (expense) 2,650 2,650 Total non - operating revenues (expenses) - $336,691 - $336,69I 0 Earnings before contributions and transfers $429,341 $51,674 - 377,667 Capital contributions and special items 0 0 0 Transfer from General Fund for loan repayment 0 110,784 110,784 Transfers to other funds - I,26I,I25 - I,26I,I25 0 Change in net assets 483I,784 - $I,098,667 - 266,883 Beginning net assets $2I,229,200 $2I,229,200 Ending net assets $20,397,4I6 $20,I30,533 Beginning Cash at I /I /IO $I,334,884 Estimated cash deficit in 2010 per budget - $596,380 Cost savings not spent on generator project $230,000 Cost savings - reduced spending on ROW repair $400,000 Unanticipated T -Line Repairs - $367,500 Unanticipated Lowell Point Road repairs - $250,000 Fuel cost revenue (shortfall) - $980,000 Fuel costs (expense) savings $674,000 General Fund transfer -in loan payment $226,846 Revised cash deficit in 20I0 - $663,034 201I Change in net assets - $I,098,667 Add back depreciation $ I,635,080 Other uses of cash: Debt principal payments - $330,000 Capital outlay - $760,000 Defer generator relocation costs (capital outlay) $505,000 2011 Budgeted Net increase (decrease) in cash - $48,587 Estimated ending cash balance $623,263 w. Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -125 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING THE 2010/2011 BIENNIAL BUDGET TO REFLECT MID -CYCLE CAPITAL BUDGET CHANGES WHEREAS, the 2010/2011 Biennial Budget was passed on November 23, 2009, reflecting the City's first biennial budget, covering the period from January 1, 2010 through December 31, 2011, and including both the operating and capital budgets; and WHEREAS, the staff has reviewed and updated the capital component of the budget and reviewed the proposed capital budget changes with the Seward City Council at a work session on November 22, 2010; and WHEREAS, this resolution adopts specific changes to the General Fund and all enterprise fund capital budgets, with specific change highlighted on the spreadsheets attached hereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The 2010/2011 Biennial Capital Budget is hereby amended to incorporate the changes reflected on the attached spreadsheets, which are effective for the calendar year 2011. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 13th day of December, 2010. THE CITY OF SEWARD ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis, City Clerk COUNCIL AGENDA STATEMENT Meeting Date: December 13, 2010 Through: Phillip Oates, City Manage:,, - �V of stk. ' 9 From: Kristin Erchinger, Finance Director V 0 ; � =:. S+ RE: Mid -Cycle 2011 Capital Budget Modifications g4.ASKP BACKGROUND & JUSTIFICATION: The City of Seward passed its first biennial budget on November 23, 2009 covering the period January 1, 2010 through December 31, 2011. The City intends to do a mid -cycle budget review during the off -year of each biennial budget cycle (this will occur at the end of each even - numbered year, in preparation for the second year of the approved biennial budget). The purpose of this resolution is to propose changes to the capital budgets for the General Fund and the enterprise funds of the City. The Seward City Council met with staff in a work session on Monday, November 22, 2010, to review the proposed capital budget adjustments. Staff again alerted the Council to the fact that for more than ten consecutive years, there has been no identified source of revenue to repair and/or replace existing City general government infrastructure. The City does generally utilize one -time State revenue sharing funds (when available) to meet some one -time capital expenditure needs. Enterprise funds also lack the ability to meet some of their most critical and high -risk capital needs, based on lack of adequate funding. The capital budget plans reflect a list of needs identified for 2011. However, funding is not appropriated to meet any of these capital budget needs, with the exception of minor General Fund needs which will be met only if State Revenue Sharing funding is received, and capital requirements in the Parking Enterprise Fund and Motor Pool Internal Service Fund. The Harbor capital needs in 2011 were pared back to $28,000 to accumulate revenues from the newly established capital infrastructure fee in order to accomplish meaningful capital repairs in 2012. The Electric capital needs total $1.6 million, with most of those needs being identified as critical, but with no funding to meet those needs. Similarly, the Water capital needs are $4.9 million in 2011, and the Wastewater capital needs are $835,000 in 2011. Staff will continue to pursue grant or loan opportunities, as available. The Parking Fund has $549,000 in capital needs for which funding is largely available, and the Motor Pool Fund has $330,000 in capital equipment needs which are expected to be purchased in 2011. 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: ATTORNEY REVIEW: X Yes No FISCAL NOTE: It is important to note that because the enterprise funds are not making annual contributions to their major repair and replacement funds in accordance with established budget policies of the City, and because the General Fund lacks a specific revenue source to provide for capital budget needs -- including major repairs and replacement of existing infrastructure -- most of the items listed in the capital budget will go unfunded. The lack of a meaningful plan to fund existing City assets will have serious financial implications in the future, if outside funding is unavailable to replace or repair existing assets. Given the anticipated reductions in federal and state funding, the City must develop a mechanism for funding its existing infrastructure, or face significant capital cost increases in the future. Existing debt loads in some funds, combined with insufficient rate structures, will make it ch llengin if not impossible to issue bonds in the future to replace existing infrastructure. Approved: cti� RECOMMENDATION: City Council approve Resoluti9n 2010- amending the 2011 capital budget. .0100. Capital Improvement Plan General Fund - Related Capital Projects Fiscal Year 2010 -and 2011 New or Project Funding Source Project Description Replace Year Cost City Portion Other Portion Source STREETS: Poor Condition: Dora Way /Olympia - (.4) R 2012 $118,360 $118,360 Federal Adams: 1st to 2nd - (.2) R 2012 $115,500 $115,500 Federal Fair Condition: Fifth Ave: Railway to B Street - (.7) R 2012 $555,170 $555,170 Federal A St: 1st to 3rd - (.2) R 2012 $104,094 $104,094 Federal Jefferson (entire - .4) R 2012 $317,240 $317,240 Federal C Street and D Street - (.2) R 2012 $158,620 $158,620 Federal Birch St. R 2012 $122,144 $122,144 Federal Sea Lion Drive R 2012 $97,449 $97,449 Federal Coolidge R 2012 $54,033 $54,033 Federal Cedar St. R 2012 $119,559 $119,559 Federal Alder St. R 2012 $36,179 $36,179 Federal Lowell Canyon Road R 2012 $46,200 $46,200 Federal Bette Cato R 2012 $133,705 $133,705 Federal Monroe: 5th to 7th R 2012 $99,000 $99,000 Federal Adams: 5th to 6th R 2012 $44,000 $44,000 Federal Storm Drain N/R 2012 $440,000 $440,000 Federal New Roads /Paving: Leirer Road and Alameda Road N 2012 $505,000 $505,000 State /Federal Oak Street N 2012 $350,000 $350,000 State/Federal Total Street Projects: $3,416,253 $0 $3,416,253 SIDEWALKS, CURBS, GUTTERS, DRAINAGE: 5th Ave: West side from Adams to Jefferson N 2012 $78,348 $78,348 Federal Railway to Jefferson on 4th N 2012 $1,045,495 $1,045,495 Federal Railway to Jefferson on 5th N 2012 $702,075 $702,075 Federal Resurrection (Swd Hwy to High School) N 2012 $398,200 $398,200 Federal Benson Dr. north side N 2012 $198,385 $198,385 Federal Coolidge Dr. Benson to Swd Hwy N 2012 $263,203 $263,203 Federal Dora Way to Phoenix both sides N 2012 $468,105 $468,105 Federal Phoenix to Swd Hwy both sides N 2012 $673,041 $673,041 Federal • Lowell Canyon Road north side N 2012 $176,000 $176,000 Federal Marathon drainage, culverts both sides N 2012 $113,300 $113,300 Federal Jesse Lee Dr. drainage and culverts, both sides N 2012 $86,900 $86,900 Federal Alice, drainage, culverts N 2012 $22,000 $22,000 Federal Bette Cato drainage and culverts, both sides N 2012 $13,200 $13,200 Federal Birch St. drainage and culverts, both sides N 2012 $74,800 $74,800 Federal Alder St. drainage and culverts, both sides N 2012 $25,300 $25,300 Federal Lowell Canyon Rd. south side N 2012 $26,400 $26,400 Federal Cedar St. drainage and culverts, both sides N 2012 $63,800 $63,800 Federal Benson Drive drainge and culverts, both sides N 2012 $35,200 $35,200 Federal Total Sidewalk Projects: $4,463,751 $0 $4,463,751 CITY SHOP: New diesel fuel dispensing system R 2011 $75,000 $75,000 General Fund Covered dry storage for heavy equipment (if no shop) N Unknown $125,000 $125,000 General Fund City Shop Facility Phase I: Site Layout/Design R Unknown $75,000 $75,000 General Fund City Shop Facility Phase II: Construction R Unknown $5,280,000 $5,280,000 General Fund Total City Shop Projects: $5,555,000 $5,555,000 $0 . �t / 1' Capital Improvement Plan General Fund - Related Capital Projects Fiscal Year 2010 -ate 2011 New or Project Funding Source Project Description Replace Year Cost City Portion Other Portion Source PUBLIC SAFETY: North Forest Acres Road/Levee N 2011 $4,400,000 $0 $4,400,000 Federal/State Lowell Point erosion mitigation R 2011 $200,000 $0 $200,000 Federal/State Fire Hydrant upgrades - Ph. II R 2012 $200,000 $200,000 General Fund Breathing Air Compressor R 2012 $25,000 $25,000 General Fund Generator for AVTEC emergency shelter N Unknown $125,000 $125,000 General Fund Satellite Fire Station / Storage Facility (Forest Acres) N Unknown $960,000 $960,000 Grant Ladder Platform Vehicle N Unknown $950,000 $950,000 Grant Satellite Station on Nash Road N Unknown $440,000 $440,000 Grant Expand SMIC building storing engine N Unknown $33,000 $33,000 General Fund Public Safety Building N Unknown $5,665,000 $5,665,000 General Fund Total Public Safety Projects: $12,998,000 $6,048,000 $6,950,000 PARKS & RECREATION: Campground/bike path D -1 replacement of lost materiu R 2011 $50,000 $50,000 General Fund Beach Erosion Engineering Study N 2011 $150,000 $150,000 Federal/General Beach Erosion repairs at waterfront R 2010 $88,000 $88,000 Federal/General TYC landscape, fence, play area R 2012 $25,410 $25,410 General Fund Beach Erosion control finger construction N Unknown $88,000 $88,000 Federal/General Lagoon Boardwalk rebuild R Unknown $264,000 $264,000 General Fund Replace Wellington Pavilion R Unknown $400,000 $400,000 General Fund Restroom and Concession Stand Upgrade R Unknown $179,300 $179,300 General Fund Informational/directional maps N Unknown $23,100 $23,100 General Fund Forest Acres campground improvements R Unknown $35,000 $35,000 General Fund Jon Perry softball field fence replacement R Unknown $75,000 $75,000 General Fund Small Outdoor Restroom - Williams Park N Unknown $44,000 $44,000 General Fund Centennial Park N Unknown $427,500 $227,500 $200,000 Grant/GF Sweet Smelling Toilet at culvert N Unknown $48,400 $48,400 General Fund Marathon Campground rehabilitation R Unknown $52,800 $52,800 General Fund Forest Acres Park playground upgrades R Unknown $38,500 $38,500 General Fund Harborside Park - Phase I / Seaview Campground R Unknown $150,150 $150,150 General Fund Harbor Park (new south harbor uplands) N Unknown $890,900 $890,900 State /General Little League Field restrooms R Unknown $187,000 $187,000 General Fund Boulder Field - turf fence, grade, drains R Unknown $275,000 $275,000 General Fund Playground park at softball complex N Unknown $50,000 $50,000 T -ball field at softball complex N Unknown $100,000 $100,000 Paving in ADA camp spots, parking sites in parks /camp N Unknown $85,000 $85,000 General Fund Total Parks & Recreation Projects: $3,727,060 $3,527,060 $200,000 CITY HALL/LIBRARY /OTHER: * Clerk's records management software prograrr R 2011 $10,000 $10,000 General Fund * City Hall carpet repairs R 2011 $60,000 $60,000 General Fund * City Clerk Recording and Sound System N 2011 $40,000 $40,000 General Fund City Hall electrical upgrades R 2011 $65,000 $65,000 General Fund ADA parking at City Hall N Unknown $30,000 $30,000 General Fund USCG building site design N 2010 $40,000 $40,000 General Fund Fix venitilation at City Hall R Unknown $85,000 $85,000 General Fund Community Library/Museum R 2012 $10,000,000 $3,500,000 $6,500,000 Grant Total City Hall/Library Projects: $10,330,000 $3,830,000 $6,500,000 Mooring Dolphins/Dock Improvements for Sewax N 2011 $1,500,000 $0 $1,500,000 Grant Total General Fund Projects: $41,990,064 $18,960,060 $23,030,004 Total General Fund Projects for 2011: $6,675,000 $575,000 $6,100,000 Note: Revenue Sharing for 2010 was used 100% to begin repaying Electric Fund for prior years' SMIC deficit coverage, so no funding remai to pay for General Fund - related capital items in 2010. Therefore, a resolution will come before Council to appropriate from Fund Bal No funding has been identified for capital costs in 2011. Funding for > $3 million in local road improvements may be available in 2012 from DOT earmarks. r) CITY OF SEWARD HARBOR ENTERPRISE FUN[ SUMMARY OF FIVE -YEAR CAPITAL IMPROVEMENT PROGRAM FUNDING Description Status 2011 2012 2013 2014 CRITICAL NEEDS: Highly likely to fail within the next five years Floats & Docks Replace D Float and Piling Replace $0 $1,493,110 $0 $0 D -Float electric system Replace $0 $242,250 $0 $0 Replace A,B,C,S and G (connection) Floats Replace $0 $0 $0 $4,500,000 Piling for Floats A,B,C,S Replace $0 $0 $0 $630,000 Replace S Launch Ramp Replace $0 $0 $0 $550,000 Uplands Trash Dumpsters (6) Replace $0 $0 $0 $40,000 NE Fish Cleaning Station Replace $0 $13,650 $0 $0 Maintenance Harbor Dredging Maint $0 $225,000 $0 $0 Total Critical Needs: $0 $1,974,010 $0 $5,720,000 HIGH RISK: Highly likely to fail within the next 5 -10 years. Floats & Docks Replace K & L floats Replace $0 $0 $0 $0 Replace N Launch Ramp Replace $0 $0 $0 $0 B &C floats - electric system Replace $0 $0 $0 $0 On Q Structures Harbormaster Restrooms Replace $0 $100,000 $0 $0 Equipment Fish Waste Barges Replace $0 $0 $35,000 $35,000 Total High Risk Needs: $0 $100,000 $35,000 $35,000 MODERATE RISK: Continuously increasing cost to maintain and operate X - used oil collection facility Maintain 20,000 D - used oil colletion facility Maintain 20,000 F - used oil Maintain 20,000 J - used oil Maintain 20,000 25' Boston Whaler Maintain 5,000 5,000 5,000 5,000 21' Boston Whaler Maintain 3,000 3,000 3,000 3,000 Total Moderate Risk Needs: $28,000 $28,000 $28,000 $28,000 Total Capital Outlay $28,000 $2,102,010 $63,000 $5,783,000 Fully depreciated (book value) of harbor assets total approximately $4 million CITY OF SEWARD ELECTRIC ENTERPRISE FUND FIVE -YEAR CAPITAL INFRASTRUCTURE PLAN (excluding new items) Useful Description Life 2011 2012 2013 2014 CRITICAL NEEDS: Highly likely to fail within the next five years Transmission Transmission to Ft. Ray R $360,000 $360,000 $360,000 $360,000 Transmission by Lagoon R 30 $450,000 $0 $0 $0 Distribution Jesse Lee Underground R 50 $0 $30,000 $0 $0 Camelot Underground R 50 $150,000 $0 $0 $0 Mcdonald Yard R $25,000 $0 $0 $0 Operations and Maintenance ROW clearing Transmission M $500,000 $60,000 $60,000 $60,000 ROW clearing Distribution M $40,000 $40,000 $40,000 $40,000 Paint Transformers Spring Ck M $0 $0 $0 $30,000 Recloser Maintenance M 5 $0 $80,000 $0 $0 Loadtap Changer Sprg Crk M $0 $80,000 $0 $0 Critical Needs: $1,525,000 $650,000 $460,000 $490,000 HIGH RISK: Highly likely to fail within the next 5 -10 years. Distribution Old Mill #3 R $0 $0 $120,000 $0 Gateway (Upper) R $0 $0 $0 $180,000 Gateway (Lower) R $0 $0 $0 $80,000 Woodland Hills R $0 $0 $0 $120,000 Lost Lake Underground R 50 $0 $55,000 $0 $0 SMIC Underground R 50 $0 $0 $0 $105,000 Operations and Maintenance Paint Transformers Ft. Ray M $0 $0 $30,000 $0 Paint Transformers Lawing M $0 $0 $0 $0 Transrupter Mainenance M 5 $20,000 $0 $0 $0 Fort Raymond Maintenance Exhaust stack Gen 3 M $0 $0 $0 $0 New Roof over Gen's 3 & 6 R $0 $0 $0 $0 Meter Relay and View Screen U $20,000 $0 $0 $0 Other Software for inventory U $500 $0 $50,000 $0 High -Risk Needs: $40,500 $55,000 $200,000 $485,000 MODERATE RISK: Continuously increasing cost to maintain and operate Distribution Lawing Poles F $0 $0 $0 $25,000 Victor Creek Poles F $0 $0 $0 $110,000 Lake Drive (Stony Creek) R $0 $0 $0 $140,000 Lake Drive (Questa Woods) R $0 $0 $0 $80,000 AVTEC Underground R 50 $0 $0 $0 $15,000 Southwest Boat Ramp R 50 $0 $33,000 $0 $0 Lawing to Victor Ck Overhead R 50 $0 $75,000 $0 $0 Operations and Maintenance Switch at Nash Road U $0 $100,000 $0 $0 Fort Raymond Maintenance Update Ft. Ray controls U $0 $150,000 $150,000 $150,000 Security upgrades U $60,000 $60,000 $0 $0 Other AMR U $0 $285,000 $515,000 $0 Moderate -Risk Needs: $60,000 $703,000 $665,000 $520,0001 Total Needs: $1,625,500 $1,408,000 $1,325,000 $1,495,0001 Status R= Replace F =Fix M= Mainten c = Upgrade N =New ND =No Depreci 'n 4J CITY OF SEWARD WATER ENTERPRISE FUND FIVE -YEAR CAPITAL INFRASTRUCTURE PLAN Description Status 2011 2012 2013 2014 I CRITICAL NEEDS: Highly likely to fail within the next five years Storage and Production Refurbish #4 Production Well Maint $85,000 $0 $0 $01 Facilities Water Storage Tank New $4,060,000 $0 $0 $0 Gateway Tank Roof Replace $300,000 $0 $0 $0 Pressure Station Replace $50,000 $125,000 $400,000 $25,000 Backup generator for well field New $45,000 500K water tank site control, engineering New $180,000 Critical Needs: $4,720,000 $125,000 $400,000 $25,000 HIGH RISK: Highly likely to fail within the next 5 -10 years. Facilities Lowell Canyon Water Tank Inspections Maint $30,000 $0 $0 $0 Abandon Wells at Fort Raymond 0 0 0 0 Distribution Piping Upgrades 0 0 0 0 High -Risk Needs: $30,000 $0 $0 $0 MODERATE RISK: Continuously increasing cost to maintain and operate Facility Control Upgrades Replace $60,000 $35,000 $15,000 $15,000 Generation @ Wells New $30,000 $95,000 $0 $30,000 GIS New $20,000 $20,000 $10,000 $10,000 New #7 Production Well New $50,000 $150,000 $450,000 $0 Moderate -Risk Needs: $160,0001 $300,0001 $475,0001 $55,000 Total Needs: $4,910,000 $425,000 $875,000 $80,0001 E CITY OF SEWARD WASTEWATER ENTERPRISE FUND FIVE -YEAR CAPITAL INFRASTRUCTURE PLAN Status 2011 2012 2013 2014 I CRITICAL NEEDS: Highly likely to fail within the next five years Lift Stations #4 (FA) Lift Station Generator Replace $90,000 $20,000 $10,000 $10,000 Double Wall Fuel Tanks Replace $40,000 $20,000 $20,000 $20,000 SMIC BypassNalving New $55,000 $80,000 $20,000 $0 #1 Lift Station Generator New $140,000 $35,000 $10,000 $10,000 Critical Needs: $325,000 $155,000 $60,000 $40,000 HIGH RISK: Highly likely to fail within the next 5 -10 years. SMIC Lower L.S. Engeering $50,000 $0 $0 $0 High -Risk Needs: $50,000 $0 $0 $0I MODERATE RISK: Continuously increasing cost to maintain and operate Facilities L.P. Sludge Piles @ SMIC $320,000 $0 $0 $0 Moderate -Risk Needs: $320,000 $0 $0 $0I Projects Requiring Funding to Complete: Security New $20,000 $10,000 $10,000 $10,000 GIS New $40,000 $20,000 $10,000 $0 Manholes Maint $80,000 $10,000 $10,000 $10,000 Total Other Projects: $140,000 $40,000 $30,000 $20,000 Total Needs: $835,000 $195,000 $90,000 $60,0001 CITY OF SEWARD PARKING ENTERPRISE FUND FIVE -YEAR CAPITAL INFRASTRUCTURE PLAN Description 2011 2012 2013 2014 CRITICAL NEEDS: Highly likely to fail within the next five years Parking Lots Middle harbor parking lot Repave $350,000 Critical Needs: $0 $350,000 $0 $0 HIGH RISK: Highly likely to fail within the next 5 -10 years. None meet this criteria MODERATE RISK: Continuously increasing cost to maintain and operate Parking Lots N. harbor parking lot Patching, sealing and striping $85,000 Middle harbor parking lot Patching, sealing and striping $50,000 S. harbor parking lot Patching, sealing and striping $95,000 S.E. harbor (permit) lot Patching, sealing and striping $100,000 NE ramp lot Patching, sealing and striping $50,000 Parking office (white chalet) Moderate -Risk Needs: $380,000 $0 $0 $0 NEW Equipment Luke automated pay station $0 $0 $0 $0 Luke automated pay station $0 $0 $0 $0 N. Harbor automated pay station (2) $0 $0 $0 $0 N.E. lot automated pay station (2) $32,000 $0 $0 $0 S.E. lot automated pay station (2) $32,000 $0 $0 $0 Parking Lots NE ramp lot Paving $250,000 Patching, sealing, striping $95,000 Gravel $10,000 $10,000 Additional paving (depends on USCG) New fencing $50,000 N. harbor parking lot Paving S. harbor parking lot Paving S.E. harbor (permit) lot S. harbor uplands parking lot Paving Sealing and striping Note: need decision as to development level in uplands. Boulder field Low -Risk Needs: $169,000 $10,000 $300,000 $0 Total Needs: $549,000 $360,000 $300,000 $0 CITY OFSEWARD MOTOR POOL FUND 09/2011 CAPITAL REQUIREMENTS Year to Y e Miles/Hrs Condition & max Years till 100K replace based ars to Unit # Department Year Vehicle Total Mil es/Hours replace based Replace Cost * Per Year age miles or max hrs on hours /miles on age 2011 Replacement 120 Public Works 1988 Flatbed 66,845 3,342 Poor 10 2019 1998 45,000 152 Wastewater 1973 Sewer jet ? ? Poor /10 No data 1983 40,000 515 Electric 1973 Dozer /Backhoe New Meter Poor /15 10000 No data 1988 Lease/Purchase $200,000 456 Harbor 1999 Flatbed 66,963 6,696 Fair 5 2014 2009 45,000 $ 330,000 V.i. Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -126 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY TO BECOME A MEMBER OF THE ALASKA RAILBELT COOPERATIVE TRANSMISSION & ELECTRIC COMPANY, INC., A NON - PROFIT COOPERATIVE; APPOINTING TWO DIRECTORS AS REPRESENTATIVES OF THE CITY; AUTHORIZING ARTICLES OF INCORPORATION TO BE EXECUTED AND FILED; AND APPROVING BYLAWS FOR THE COOPERATIVE WHEREAS, the City of Seward has participated in discussions over several years with the railbelt utilities regarding working together to achieve efficiency and cost savings; and WHEREAS, representatives of Golden Valley Electric Association, Inc., Anchorage Municipal Light and Power, Homer Electric Association, Inc., Matanuska Electric Association, Inc., and Chugach Electric Association, Inc. have collaborated with representatives of the City of Seward and developed the concept of forming a non - profit membership cooperative for electric transmission and generation along the railbelt; and WHEREAS, becoming a member of the ARCTEC Cooperative will not transfer ownership or control of any portion of the Seward Electric Department or its facilities; WHEREAS, the purposes of forming the ARCTEC Cooperative are stated in Article V of the Articles of Incorporation as follows: ... addressing the generation and transmission and ancillary service needs of the Railbelt region and for procuring fuel, alternative energy resources for the region and hydroelectric facilities for the region. It is anticipated that ARCTEC will facilitate the development of energy sources with participating Railbelt utilities and the State of Alaska, and effective combinations of these entities. ARCTEC may also represent the interests of Railbelt utilities in the developments of energy from independent power producers. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITYOF OF SEWARD, ALASKA that: Section 1.For the reasons stated in the above recitals, which are incorporated herein by reference, the City Council finds it is in the best interest of the City of Seward to participate as an incorporator and member of the Alaska Railbelt Cooperative Transmission & Electric Company, Inc., A Non - Profit Cooperative Section 2.Willard Dunham is hereby appointed as the City's initial Member Director and CITY OF SEWARD, ALASKA RESOLUTION 2010 -126 incorporator, and is hereby authorized to execute the Articles of Incorporation and Bylaws in the form as presented at this meeting. Appointment of the Mayor as the initial Member Director shall not be interpreted to limit the pool of potential directors to elected officials, nor is this appointment intended to modify the prohibition against having an individual elected official take action binding the City without consent of the governing body. Section 3.The Articles of Incorporation and Bylaws are acceptable to the City, subject to the following conditions: a. Any obligations for payment of money or any transfer of property by the City shall not be valid without, and shall be expressly subject to, an appropriation by the City Council. b. The City's Management Director shall be the Seward Utility Manager or the Seward Utility Manager's designee. c. The City's Member Director shall be a resident of Seward, shall be appointed by City Council, and neither the Member Director or a member of the Member Director's family shall be employed by another Member of the ARCTEC Cooperative. The City's selection of Member Director shall not be limited to elected officials. d. Nothing in this resolution or the Articles or the Bylaws shall limit the authority of the City Council to adopt utility rates and other electric tariff provisions. Section 4.This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13 day of December 2010. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis City Clerk, CMC t , Council Agenda Statement Meeting Date: December 13, 2010 r 4 pF SF4, Through: Phillip Oates, City Manager 1- ,, a From: John Foutz, Electric Utility Manager 1CAsKP Agenda Item: Alaska Railbelt Cooperative Transmission & Electric Company membership BACKGROUND & JUSTIFICATION: The Alaska Railbelt Cooperative Transmission & Electric Company (ARCTEC) is a continuation of the work that was done for the GRETC. The purpose of ARCTEC is to be a funding source for the state to finance large scale projects that none of the railbelt utilities could finance on their own. None of the City's assets will be transferred to ARCTEC. The City of Seward may choose to offer to sell assets to the new organization in the future, but ARCTEC may not necessarily buy the assets. By becoming a member the City of Seward will have an equal two votes to help decide what projects are initiated. Excluding Anchorage Municipal Light and Power (ML &P), all the other railbelt utilities intend to become charter members ofthis organization. ML &P has been involved at all the meetings and discussions about forming this Co -Op. Joining ARCTEC does not obligate the City of Seward to pay for anything or purchase anything at this point. However, in the state's regulations for a cooperative, there is a statute dictating the purchase of materials, products, or ancillary services and the City, to remain a member and when any one o f these items become available, will be required to purchase at least a portion. The governing board of the new corporation will have two representatives from the City of Seward. One representative for the City will be the electric utility manager and the second representative for the City will be a person appointed by the City Council. The second representative may be a council member, but does not necessarily have to be a council member. For the other utilities, the two representatives will be the CEO and a utility board member. INTENT: The City of Seward will approve membership for the ARCTEC non -profit Cooperative. 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 or Other Plans or Policies: Yes (List Below) No FISCAL NOTE: Initially there is no fiscal requirement. ARCTEC follows the legislation governing cooperatives, which dictates that to be a member, one must purchase something from the Co -op. Currently the services and prices are not established. The Bylaws (Section 7) are written such that the City of Seward may withdraw when and if it is determined unappealing at that time. Approved by Finance Department: c� ` ATTORNEY REVIEW: Yes X No RECOMMENDATION: The City Council pass resolution 201 Q 11-, becoming a member of ARCTEC. avJ Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -092 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, IN SUPPORT OF THE ALASKA RAILBELT COOPERATIVE TRANSMISSION AND ENERGY COMPANY WHEREAS, the City of Seward along with other Alaskan utilities support the establishment of the Alaska Railbelt Cooperative Transmission and Energy Company (ARCTEC) and will collectively work with the Alaska Energy Authority (AEA) to incorporate proven business concepts to create a cooperative to assist the railbelt region with critical transmission and generation needs; and WHEREAS, the stated purpose of ARCTEC is to provide all Railbelt electric utilities with access to sustainable and affordable energy in the future; and WHEREAS, to accomplish this purpose ARCTEC must fulfill short term and long term energy needs by acquiring adequate fuel supplies for existing generation, forging a path for future generation and concurrently developing and promoting renewable and alternative enegery generation as well as regional transmission projects; and WHEREAS, ARCTEC will best succeed based upon a partnership with all the utilities and state agencies under a unified business structure that incorporates rational economic decision hrw making, lowest financing costs and provides business continuity through technical competence and corporate leadership; and WHEREAS, the Railbelt electric grid has significant capital investment needs, and ARCTEC in cooperation with the Alaska Energy Authority (AEA) and state - assisted financing can provide the lowest cost financing and reduce the risk to individual utilities; and WHEREAS, ARCTEC can provide regional generation and transmission planning for the benefit of all Railbelt utility customers through an Integrated Resource Plan (IRP) process and this process will support rational funding decisions for future generation and transmission projects; and WHEREAS, through the ARCTEC planning process, all Railbelt utilities will benefit from increased reliability and over time ARCTEC will endeavor to transition away from the Railbelt's over - reliance on fossil fuels to a future that includes sustainable, diverse and affordable energy production; and WHEREAS, the Bradley Lake hydroelectric project is one example of a project that has been successful based upon state - assisted financing through AEA and the combined strengths of the Railbelt electric utilities to manage and operate highly technical generation and transmission t facilities; and L CITY OF SEWARD, ALASKA RESOLUTION 2010 -092 WHEREAS, AEA has completed the Alaska Railbelt Electrical Grid Authority (REGA) study (September 2008) that the identified economic benefits of joint utility operations; and WHEREAS, the implementation of guidelines in order to allow for successful transition have been established by the AEA; and WHEREAS, the Railbelt utilities have energy service needs that have not historically been undertaken by all utilities and ARCTEC can provide these services on a bundled or unbundled basis for the benefit of all; and WHEREAS, ARCTEC will offer services based on uniform rates for like services and utilities will pay for services they receive under standard tariffs or contract arrangements; and WHEREAS, ARCTEC will be regulated through the ARCTEC board of directors and under a state regulatory regime that will allow the best value for Railbelt customers. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City of Seward supports the creation of a generation and transmission cooperative (G &T); and Section 2. The City of Seward encourages the state's legislative bodies to support the utilities and AEA in their endeavor to create a railbelt, non - profit G &T to assist all the Railbelt utilities customers in procuring reliable, sustainable and diverse energy sources. Section 3. The City of Seward encourage the ratepayers, residents and general public in the Railbelt region to support this endeavor. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27 day of September 2010. THE CITY R EWARD, ALASKA i 464 Air illard E. I nham, Mayor j t r% CITY OF SEWARD, ALASKA RESOLUTION 2010 -092 AYES: Valdatta, Bardarson, Smith, Keil, Shafer, Amber g, Dunham NOES: None ABSENT: None ABSTAIN: None ATTEST: I iiii1/14/4h/ddi Q Cay ‘7?///‘; ean Lewis ity Clerk •• F SEW „• (City Seal) .•�`� �•�-• :1 1 • SEAL oftv 41 F .Petit** r ! Council Agenda Statement Meeting Date: September 27 2010 o f sE O To: Phillip Oates, City Manager c moo''•- From: John Foutz, Electric Utility Manager gcnsr�Q Agenda Item: Supporting the Alaska Railbelt Transmission and Energy Company BACKGROUND & JUSTIFICATION: The Railbelt Utilities recently undertook an effort to formalize their historic practice of working together for the common benefit of all Railbelt consumers. The effort culminated in legislative language that would have established a special purpose Railbelt Energy Organization dedicated to the improvement of power supply throughout the region, collaboratively work with the state administration to develop energy resources, consolidate needs to better allow the development of large scale projects by independent power producers, and provide improvement to the daily lives of Railbelt residents through responsible management and development of this vital service. This effort met with failure in the legislative process leaving the Railbelt leadership questioning the need for legislative involvement in the formation of a transformational Railbelt energy organization. While many in the Legislature supported the Railbelt utility leadership decision to form the new organization, special interest lobbying and targeted private industry monopoly interests influenced enough legislators to stall the effort. Faced with the failure of the Legislature to embrace change and work collaboratively with utilities, the Railbelt Utility Task Force has met and decided to form a Railbelt orgainzation under existing law. This direction will obviate the need to seek legislative approval and leave the utilities with a formal orgainzation that will undertake all the original initiatives agreed upon by the utilities and set in motion by the original REGA study that identified the need and benefits of a regional energy organization. Leaders of Railbelt utilities held a joint meeting and outlined their vision that includes joint planning, state - assisted financing, and utility technical expertise to operate and maintain projects. The organizations note that the successful Bradley Lake hydroelectric project provides a model for ARCTEC activities. Bradley Lake is a state - owned, utility- operated project whose low -cost power is shared through power sales contracts with each of the six Railbelt electric utilities. The state provided the financing for Bradley Lake through a combination of grants and bonds, with the utilities covering the debt service in exchange for power from the project. The Railbelt Electrical Grid Authority study, completed in September 2008, was led by the Alaska Energy Authority with funding from the legislature. The REGA study identified an average annual present worth net savings of between $10.5 and $30.9 million which equates to between a 3.6% to 10.1% net savings for Railbelt consumers. In a related effort, the AEA has completed an integrated resource plan to determine how to best meet the generation needs of the Railbelt for the next 50 years. ARTEC's mission is for Railbelt electric utilities to collaboratively plan for current and future energy needs. ARTEC will immediately engage in collaborative efforts to resolve fuel supply issues and critical transmission infrastructure needs. ARTEC will plan for a transition away from the Railbelt's over - reliance on fossil fuel fired generation to a future that includes sustainable, diverse and affordable energy production. It is anticipated energy sources may be developed by Railbelt utilities, the State of Alaska, independent power producers or effective combinations of these three entities. A task force of the boards of all Railbelt electric utilities will continue their work on ARCTEC and related issues. t • INTENT: Council confirm their support for the ARCTEC concept. 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 or Other Plans or Policies. FISCAL NOTE: There is no fiscal is pact for the City of Seward. Approved by Finance Department: •¢� ATTORNEY REVIEW: Yes No X RECOMMENDATION: The City Council pass resolution 2010 - (Yt• , showing support for ARCTEC and encouraging additional Railbelt residents, consumers and state officials to support the ARCTEC. 9 ARTICLES OF INCORPORATION OF ALASKA RAILBELT COOPERATIVE TRANSMISSION & ELECTRIC COMPANY, INC. A NON - PROFIT COOPERATIVE These Articles of Incorporation are executed pursuant to Title 10, Chapter 25 of the Alaska Statutes (AS 10.25) ( "Act ") in order to incorporate the Alaska Railbelt Cooperative Transmission & Electric Company. Article I Name The name of this cooperative shall be the ALASKA RAILBELT COOPERATIVE TRANSMISSION & ELECTRIC COMPANY. Article II Duration The duration of this cooperative shall be perpetual. Article III Principal Office The principal office for the transactions of the cooperative shall be at Anchorage, Alaska and such business may be carried on in such municipality and elsewhere with the state at the discretion of the Board of Directors. The address of the present principal office is 3601 C Street, Suite 1400, Anchorage, Alaska 99503. ARTICLES OF INCORPORATION - 1 DWT 15915928v4 0023681 -000113 0 Article IV Registered Agent and Office The registered agent for the cooperative shall be Mark K. Johnson with offices at 5601 Electron Drive, Anchorage, Alaska 99519. Article V Purposes & Powers This cooperative is formed for all lawful purposes as may be permitted by the Act under which it is formed, as such Act may be amended from time to time, including but not limited to, addressing the generation and transmission and ancillary service needs of the Railbelt region and for procuring fuel, alternative energy resources for the region and hydroelectric facilities for the region. It is anticipated that ARCTEC will facilitate the development of energy sources with participating Railbelt utilities and the State of Alaska, and effective combinations of these entities. ARCTEC may also represent the interests of Railbelt utilities in the development of energy from independent power producers. The cooperative may have and exercise any or all powers as may be necessary or convenient to accomplish any or all of the foregoing purposes, or as may be permitted by the Act. Article VI Board of Directors The number of directors of the cooperative shall be no less than five (5). Except as otherwise required by these Articles of Incorporation, the bylaws shall provide for the number of directors, their qualifications, the manner of holding meetings, and the election of successors. Directors shall be selected by the members of the cooperative and serve for so long as provided for in accordance with the bylaws. The names of the initial directors, who shall serve until their successors are selected under the bylaws are as follows: Name Address Rick Schikora c/o Golden Valley Electric Association, Inc. 758 Illinois Street, Fairbanks, Alaska 99707 Deborah Debnam c/o Homer Electric Association Inc. 3977 Lake Street, Homer, Alaska 99603 ARTICLES OF INCORPORATION - 2 m DWT 15915928v4 0023681- 000113 O Elsie Lester c/o Matanuska Electric Association, Inc. (Cooperative Non - Profit) P.O. Box 2929, Palmer, Alaska 99645 Jim Nordlund c/o Chugach Electric Association, Inc. P.O. Box 19300, Anchorage, Alaska 99519 Willard Dunham c/o City of Seward P.O. Box 167, Seward, Alaska 99664 Article VII Non - Profit Operation The cooperative is not organized for profit and shall not have the authority to issue capital stock. The private property of the members of the cooperative shall be exempt from execution for the debts of the cooperative, and, in accordance with AS 10.25.410, no member shall be individually liable or responsible for any debts or liabilities of the cooperative. Article VIII Membership Any non - profit entity eligible to become a member of an electric cooperative as defined in the Act, or any municipality (as defined in AS 29.71.800), that holds a certificate of public convenience and necessity from the Regulatory Commission of Alaska and normally operates interconnected with a similar Railbelt organization shall be eligible to submit an application to become a Member. Members must agree to use electric energy or other se furnished by this cooperative when such services are made available through the cooperative's facilities and meet any other requirements set forth in the Act. Members are not obligated under this provision to purchase all of their energy or other services from the cooperative. Article IX Bylaws The Board of Directors shall adopt the first Bylaws of the cooperative as soon as is practicable following incorporation of the cooperative. The Bylaws shall set out the rights and duties of members and directors and may contain other provisions for the regulation and management of the affairs of the cooperative consistent with law and with these Articles of Incorporation. ARTICLES OF INCORPORATION - 3 DWT 15915928v4 0023681 -000113 Article X Pre - incorporation Activities The cooperative recognizes that various services have been performed, and will continue to be performed, on the cooperative's behalf in connection with the formation of the cooperative. If a member requests payment for such services, the cooperative shall reimburse the member for such services performed on the cooperative's behalf. Article XI Affiliates With respect to the cooperative, there are at present no affiliate non - resident aliens or affiliate corporations incorporated outside of the United States of America. Article XII Severance If any provision of these Articles of Incorporation is held void or illegal, it shall not impair or affect the remainder of these Articles of Incorporation, and the incorporators hereby declare that they would have signed and executed the remainder of these Articles of Incorporation without such void or illegal provision. Article XIII Incorporators The names and addresses of the incorporators of the cooperative are: Name Address & Membership Affiliation Rick Schikora c/o Golden Valley Electric Association, Inc. 758 Illinois Street, Fairbanks, Alaska 99707 Deborah Debnam c/o Homer Electric Association Inc. 3977 Lake Street, Homer, Alaska 99603 ARTICLES OF INCORPORATION - 4 10 3 DWT 15915928v4 0023681- 000113 Elsie Lester c/o Matanuska Electric Association, Inc. (Cooperative Non - Profit) P.O. Box 2929, Palmer, Alaska 99645 Jim Nordlund c/o Chugach Electric Association, Inc. P.O. Box 19300, Anchorage, Alaska 99519 Willard Dunham c/o City of Seward P.O. Box 167, Seward, Alaska 99664 DATED this day of , 2010, at , Alaska. Elsie Lester, Incorporator Date: STATE OF ALASKA ) ss. JUDICIAL DISTRICT ) The foregoing Articles of Incorporation of ALASKA RAILBELT COOPERATIVE TRANSMISSION & ELECTRIC COMPANY, INC. were acknowledged before me this day of 2010, by Notary Public in and for the State of Alaska My commission expires: ARTICLES OF INCORPORATION - 5 DWT 15915928v4 0023681- 000113 104 Jim Nordlund, Incorporator Date: STATE OF ALASKA ) ss. JUDICIAL DISTRICT ) The foregoing Articles of Incorporation of ALASKA RAILBELT COOPERATIVE TRANSMISSION & ELECTRIC COMPANY, INC. were acknowledged before me this day of 2010, by Notary Public in and for the State of Alaska My commission expires: Rick Schikora, Incorporator Date: Willard Dunham, Incorporator Date: Deborah Debnam, Incorporator Date: ARTICLES OF INCORPORATION - 6_ DWT 15915928v4 0023681 - 000113 ARTICLES OF INCORPORATION - 7 C DWT 15915928v4 0023681 -000113 ALASKA RAILBELT COOPERATIVE TRANSMISSION & ELECTRIC COMPANY, INC. (An Electric Membership Cooperative) BYLAWS DWT 15916114v4 0023681 - 000113 TABLE OF CONTENTS Pate Article I Purposes 1 Article II Membership 1 Section 1. Qualifications for Membership 1 Section 2. Membership Fee 2 Section 3. Purchase of Capacity and Energy or Ancillary Services by Members 2 Section 4. Payment by Members of Obligations to the Cooperative. 2 Section 5. Non - liability of Members for Debts of the Cooperative 2 Section 6. Expulsion of Member. 2 Section 7. Withdrawal of Member. 3 Section 8. Transfer of Membership. 3 Article III Meetings of Members 3 Section 1. Annual Meeting of Members. 3 Section 2. Special Meetings of Members 4 Section 3. Notice of Meetings of Members; Record Date 4 Section 4. Quorum for Meetings of Members; Adjournment. 4 Section 5. Voting; Member Action. 5 Section 6. Member Representative and Management Representative 5 Section 7. Notification of Cooperative of Identity of Member Representative and Management Representatives 6 Section 8. Written Consent of Members. 6 Section 9. 6 Article IV Board of Directors 6 Section 1. General Powers of Board of Directors 6 Section 2. Term of Directors. 6 Section 3. Number of Directors and Qualifications 7 Section 4. Filling Vacancies on Board of Directors. 7 Section 5. Resignation and Removal of Directors 7 Section 6. Compensation of Directors 7 Section 7. Power of Directors to Adopt Rules and Regulations and Policies. 8 Section 8. Power to Appoint Committees. 8 Article V Meetings of Directors 8 Section 1. Regular Meetings of Directors. 8 Section 2. Special Meetings of Directors. 8 BYLAWS OF ARCTEC - i DWT 15916114v4 0023681 - 000113 0 Section 3. Notice of Special Meetings of Directors. 8 Section 4. Quorum for Meeting of Directors 9 Section 5. Action of Board of Directors 9 Section 6. Written Consent of Directors. 9 Article VI Officers 10 Section 1. Officers; Qualifications. 10 Section 2. Nomination, Election and Term of Office of Officers. 10 Section 3. Removal of Officers. 10 Section 4. Chairman of the Board. 10 Section 6. President 11 Section 7. Secretary 11 Section 8. Treasurer. 11 Section 9. Election of Additional Officers and Appointment of Agents 11 Section 10. Compensation of Officers 12 Article VII Cooperative Operation 12 Section 1. Interest or Dividends on Capital Prohibited. 12 Section 2. Patronage Capital in Connection with Furnishing Electric Energy. 12 Section 3. Accounting System and Reports 13 Article VIII Indemnification and Insurance 13 Section 1. Indemnification. 13 Section 2. Insurance. 13 Article IX Seal 14 Article X Amendment 14 BYLAWS OF ARCTEC - ii A G 9 DWT 15916114v4 0023681- 000113 Article I Purposes The Alaska Railbelt Cooperative Transmission & Electric Company (ARCTEC) is organized for the purposes of addressing the generation and transmission and ancillary service needs of the Railbelt region and for procuring fuel, alternative energy resources for the region and hydroelectric facilities for the region. It is anticipated that ARCTEC will facilitate the development of energy sources with participating Railbelt utilities and the State of Alaska, and effective combinations of these entities. ARCTEC may also represent the interests of Railbelt utilities in the development of energy from independent power producers. Article II Membership Section 1. Qualifications for Membership. Any non -profit entity eligible to become a member of an electric cooperative (as defined in the Alaska Electric and Telephone Cooperative Act, AS 10.25) or any municipality (as defined in AS 29.71.800), that holds a certificate of public convenience and necessity from the Regulatory Commission of Alaska and normally operates interconnected with a similar Railbelt organization shall be eligible to submit an application to become a Member. An applicant desiring to become a Member shall submit to the Secretary of the Cooperative an application for membership in writing. The application shall be presented to the Board of Directors at the next meeting of the Board held ninety days or more after the date of submission of the application. The applicant shall become a Member at such time as the Board of Directors has approved its application and the applicant has: (a) Paid the membership fee established pursuant to Section 2 of this Article II; (b) Executed an agreement to purchase capacity and energy at wholesale or ancillary services from the Cooperative on terms and conditions satisfactory to the Board of Directors; (c) Agreed to comply with and be bound by the Articles of Incorporation and Bylaws of the Cooperative, as amended from time to time, and such policies, rules and regulations as may from time to time be adopted by the Board of Directors; (d) Satisfied all other conditions established for membership by the Board of Directors. For purposes of these Bylaws, "ancillary services" means those services that are necessary to BYLAWS OF ARCTEC - 1 1 r DWT 15916114x4 0023681- 000113 "" .) support the transmission of capacity and energy from resources to member loads while maintaining reliable operation of the transmission provider's transmission system in accordance with good utility practice. Ancillary services include reactive power and voltage control, loss compensation, scheduling and dispatch, load following, system protection and energy imbalance. Ancillary services also include fuel supply acquisition and planning and aggregation and regional integrated resource planning. Section 2. Membership Fee. The amount of the fee for admission to membership shall be established from time to time by the Board of Directors. Section 3. Purchase of Capacity and Energy or Ancillary Services by Members. (a) Each Member shall purchase capacity, energy or ancillary services from the Cooperative on such terms and conditions as are provided in at least one Wholesale Power Contract ( "Wholesale Power Contract ") or agreement to provide ancillary services between the Cooperative and the Member, as the same may exist from time to time. The Board of Directors shall adopt a plan and schedule for compliance with this provision during the start-up phase of the cooperative. (b) Providing that the requirements of subsection (a) are met, Members are not obligated under this provision to purchase all of their energy or other services from the Cooperative and may choose to participate in any additional Wholesale Power Contracts or agreements for ancillary services offered by the Cooperative. Section 4. Payment by Members of Obligations to the Cooperative. Pursuant to the terms of any Wholesale Power Contract or agreement to provide ancillary services, a Member shall pay any and all amounts which may from time to time become due and payable by the Member to the Cooperative as and when the same shall become due and payable. Section 5. Non - liability of Members for Debts of the Cooperative. A Member shall not, solely by virtue of its status as such, be liable for the debts of the Cooperative; and the property of a Member shall not, solely by virtue of its status as such, be subject to attachment, garnishment, execution or other procedure for the collection of such debts. Section 6. Expulsion of Member. Any Member which shall have violated or refused to comply with any of the provisions of the Articles of Incorporation of the Cooperative, these Bylaws, or any policy, rule or regulation adopted from time to time by the Board of Directors may be expelled from membership by the affirmative vote of not less than two - thirds of all of the Directors. Any Member so expelled may be reinstated as a Member by a vote of not less than two - thirds of all of the Directors. Expulsion of a Member shall not release the Member from its debts, liabilities or obligations to BYLAWS OF ARCTEC - 2 DWT 15916114v4 0023681- 000113 the Cooperative, including, without limitation, its obligations under a Wholesale Power Contract between the Member and the Cooperative. Section 7. Withdrawal of Member. Any Member may withdraw from membership upon payment in full, or making adequate provisions for the payment in full, of all its debts to the Cooperative and upon satisfying or making adequate provisions for the satisfaction of all its liabilities and obligations to the Cooperative, including, without limitation, its obligations under a Wholesale Power Contract between the Member and the Cooperative, and upon compliance with such other terms and conditions as the Board of Directors may prescribe. Section 8. Transfer of Membership. Upon consolidation, merger or sale of substantially all its assets, a Member may transfer its membership to its corporate successor or the purchaser of such assets if such successor or purchaser is otherwise eligible for membership and has met the requirements for membership set forth in this Article II, upon satisfying or making adequate provisions for the satisfaction of all its liabilities and obligations to the Cooperative including, without limitation, its obligations under a Wholesale Power Contract between the Member and the Cooperative, and upon satisfying any additional terms and conditions the Board of Directors may establish for such transfer, including, without limitation, the payment of a reasonable fee for the transfer. A membership in the Cooperative shall not otherwise be transferable. Section 9. Member's Right to Examine Books and Records. A member of a cooperative may, at a reasonable time and for a proper purpose, . examine and make copies of the books and records of the cooperative at the principal office of the cooperative. The cooperative may charge a member an amount equal to the actual cost of duplicating documents requested under this section. The cooperative may withhold books and records concerning specific matters that were prepared for or during an executive session held in accordance with Article V, Section 7 of these Bylaws and not subsequently made public by the cooperative. The cooperative may also withhold the identity of public information that was referred to during the executive session. Article III Meetings of Members Section 1. Annual Meeting of Members. The annual meeting of Members shall be held during the first quarter of each calendar year at a time and place within the service area of the Cooperative designated by the Board of Directors; provided that failure to hold the annual meeting shall not work a forfeiture nor shall such failure affect otherwise valid corporate acts. BYLAWS OF ARCTEC - 3 2 DWT 15916114v4 0023681- 000113 �" Section 2. Special Meetings of Members. Special meetings of Members may be called by a majority of the Board of Directors or upon written request of at least half of the Members. Special meetings of the Members shall be held at the time specified by the person or persons calling the meeting, and at such place within the service area of the Cooperative as the Board of Directors shall designate from time to time. Section 3. Notice of Meetings of Members; Record Date. (a) Written notice stating the place, the day and the hour of a meeting of Members and, in case of a special meeting, the purpose or purposes for which the meeting is called, shall be provided not less than fifteen nor more than sixty days before the date of a regular meeting (and not less than 90 days nor more than 120 days for a special meeting) by any reasonable means, by or at the direction of the President. Reasonable means for providing such notice shall include, but not be limited to, United States mail, facsimile machine, electronic mail and personal delivery. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail with adequate prepaid first class postage thereon addressed to the Member at its address as it appears on the record books of the Cooperative. Notice of any meeting of Members need not be given to any Member who signs a waiver of notice, either before or after the meeting. Attendance of a Member at a meeting shall constitute waiver of notice of such meeting and waiver of any and all objections to the place of the meeting, the time of the meeting or the manner in which it has been called or convened, except when a Member attends the meeting solely for the purpose of stating, at the beginning of the meeting, any such objection or objections to the transaction of business. (b) To determine the members entitled to notice of a meeting of the members or to vote on a matter that is to be submitted to a vote of the members, or for any proper purpose, the Board of Directors may fix a date that occurs no more than 30 days before the date of notice or distribution of mail ballots as the record date for the determination. If a record date is not fixed for the determination of members entitled to notice of a meeting or to vote on a matter, the date on which notice of the meeting or of mail voting is first mailed is the record date. When a determination of members entitled to vote at a meeting is made, the determination applies until the meeting is adjourned sine die (i.e., without setting a date for a further meeting). Section 4. Quorum for Meetings of Members; Adjournment. A majority of the Members shall constitute a quorum for any meeting of Members. A majority of those present may adjourn the meeting from time to time, whether or not a quorum is present When a meeting is adjourned to another time or place, it shall not be necessary to give any notice of the adjourned meeting if the time and place to which the meeting is adjourned are announced at the meeting at which the adjournment is taken; and at the adjourned meeting, any business may be transacted that might have been transacted on the original date of the meeting. If, however, after the adjournment, the Board of Directors fixes a new record date for the BYLAWS OF ARCTEC - 4 DWT 15916114v4 0023681- 000113 K' 3 adjourned meeting, a notice of the adjourned meeting shall be given to each Member in compliance with Section 3 of this Article III. Section 5. Voting; Member Action. Each Member shall be entitled to one vote upon each matter submitted to a vote at a meeting of Members. The affirmative vote of a majority of the Members represented at the meeting shall be the act of the membership unless the vote of a greater number is required by law, the Articles of Incorporation or these Bylaws. A Member may not vote by proxy. Section 6. Member Representative and Management Representative. The board of directors of each Member shall appoint as its representative (the "Member Representative ") a member of such board to represent and, except as otherwise set forth in these bylaws, cast the vote of the Member at all meetings of Members and of the Nominating Committee, and may appoint as its management representative (the "Management Representative ") the General Manager (which for purposes of these Bylaws shall include the person having the duties of a general manager) of such Member. The board of directors of each Member may also appoint an alternate representative (the "Alternate Representative ") to serve as the Member's representative in the absence of both the Member Representative and Management Representative of such Member. The Alternate Representative shall be an employee of the Member or a member of its board of directors. If a person who is a Member Representative or Management Representative shall become disqualified from serving as such, such person shall immediately be deemed to have been removed as Member Representative or Management Representative and the board of directors of the Member shall appoint a new Member Representative and may appoint a new Management Representative, as the case may be. If the General Manager of a Member shall become disqualified from serving as Management Representative, the board of directors of the Member may appoint as its Management Representative an employee or a member of its board. Each Member shall be entitled to have its Member Representative and Management Representative present at each meeting of Members. If the Member Representative shall be absent from any meeting, die, resign or be removed, then the Management Representative may represent and cast the vote of the Member at such meeting or until a new Member Representative is appointed. If neither the Member Representative nor the Management Representative is present at the meeting, the Alternate Representative of the Member, if any, may represent and cast the vote of the Member. If a Member has no Member Representative, Management Representative or Alternate Representative, an officer of the Member may represent and cast the vote of the Member. The person authorized to cast the vote of a Member in accordance with this Section 6 shall be conclusively presumed to be authorized to vote as such person sees fit on all matters submitted to a vote of the Members unless such Member shall specifically limit the voting power of its Member Representative, Management Representative, Alternate Representative or officers, as BYLAWS OF ARCTEC - 5 DWT 15916114v4 0023681- 000113 1 1 the case may be, by a written statement executed by the president or vice president and the secretary of the Member under its corporate seal pursuant to a resolution duly adopted by its board of directors, and delivered to the Secretary of the Cooperative. Section 7. Notification of Cooperative of Identity of Member Representative and Management Representatives. Each Member shall file with the Secretary of the Cooperative a written statement executed by the chairman or vice chairman and the secretary of the Member under its corporate seal, stating the name of its Member Representative, Management Representative, and Alternate Representative, if any, and, where applicable, the dates of expiration of their respective terms as directors of the Member. The statement shall contain a certification that the Member Representative, Management Representative and Alternate Representative have been appointed in accordance with a resolution duly adopted by the board of directors of the Member. A Member may, at any time by resolution of its board of directors and notice to the Cooperative, terminate the appointment of its Member Representative, Management Representative or Alternate Representative. Notice to the Cooperative of such action shall be by a written statement executed by the chairman or vice chairman and the secretary of such Member under its corporate seal. Section 8. Written Consent of Members. Any action required or permitted to be taken at a meeting of the Members may be taken without a meeting if a written consent setting forth the action so taken shall be signed by every Member, provided that each Member's signature is that of a person duly authorized to cast the vote of such Member. Section 9. Presiding Officer. The Members shall annually elect one of themselves to preside at all meetings of the members. The individual so selected may also serve as Chair of the Board of Directors. Article IV Board of Directors Section 1. General Powers of Board of Directors. The business and affairs of the Cooperative shall be managed by a Board of Directors, consisting of not less than five persons, who shall be elected by the Members as set forth in Article IV, Section 3. Section 2. Term of Directors. Each Director shall serve for a term ending on the date of the third annual meeting of the Members following the annual meeting at which such Director is elected; provided, however, that in connection with the first election of Directors pursuant to this Article IV, the Members may specify shorter terms for any Director for the purpose of providing staggered terms for the BYLAWS OF ARCTEC - 6 DWT 15916114x4 0023681 - 000113 1 5 Directors. Each Director shall serve until his successor is appointed or elected and qualified or until his earlier death, resignation or removal. Section 3. Number of Directors and Qualifications. Each Member of the Cooperative will be entitled to elect two persons to serve on the Board of Directors, one as a Member Director and one as a Management Director. Member Directors. Each Member Director must be a Director of one of the Members. Management Directors. Each Management Director must be a General Manager or Chief Executive Officer of one of the Members. Section 4. Filling Vacancies on Board of Directors. Each vacancy occurring on the Board of Directors shall be filled by one Member selecting a new director pursuant to the requirements of Article IV, Section 3 of these bylaws. Section 5. Resignation and Removal of Directors. If any Director ceases to be qualified to hold such position, he shall immediately be deemed to be removed as a Director of the Cooperative and the vacancy so created shall be filled in the manner set forth in Section 5 of this Article IV. Any Member or Director may bring charges against a Director for neglect or breach of duty or other action or inaction which is or may be injurious to the Cooperative by filing them in writing with the Secretary, together with a petition signed by twenty -five percent of the Members, requesting that the matter be brought before a meeting of Members. The removal shall be voted upon at the next regular or special meeting of the Members. A majority vote of the Members present at the meeting shall determine such removal. The Director against whom such charges have been brought shall be informed in writing of the charges at least fifteen days prior to the meeting and shall have an opportunity at the meeting to be heard in person or by counsel and to present evidence; and the person or persons bringing the charges against him shall have the same opportunity. The Director against whom such charges have been brought may request that the charges be discussed in either executive or open session. Section 6. Compensation of Directors. Directors shall be reimbursed for expenses actually and necessarily incurred by them in the performance of their duties and shall receive a fixed fee for each day of attendance at a meeting of the Board of Directors or other meeting while officially representing the Cooperative and for each day of necessary travel to and from a meeting of the Board of Directors or other meeting while officially representing the Cooperative, in accordance with policies to be adopted by the Board. BYLAWS OF ARCTEC - 7 rs DWT 15916114x4 0023681 - 000113 1 y 3 Section 7. Power of Directors to Adopt Rules and Regulations and Policies. The Board of Directors shall have the power to adopt all policies, rules and regulations for the management, administration and regulation of the business and affairs of the Cooperative, provided that they are not inconsistent with law, the Articles of Incorporation or these Bylaws. Section 8. Power to Appoint Committees. Except where the composition of a committee is established by these Bylaws, the Chairman of the Board may establish (and abolish) committees comprised of Directors and others. Such committees shall not have any of the powers of the Board of Directors, and shall perform such functions as are assigned specifically to them for the purpose of advising or making recommendations to the Board of Directors. When establishing (and abolishing) such committees, the Chairman of the Board shall comply with such policies, rules and regulations, if any, as may from time to time be adopted by the Board of Directors with respect to such committees. Article V Meetings of Directors Section 1. Regular Meetings of Directors. A regular meeting of the Board of Directors shall be held quarterly or more often at such time and place as the Board of Directors may designate. At least ten days advance written notice of regular meetings shall be provided. Section 2. Special Meetings of Directors. Special meetings of the Board of Directors may be called by the Chairman of the Board or by twenty -five percent of the Directors then in office. The persons calling a special meeting may fix the time and place for the meeting. Section 3. Notice of Special Meetings of Directors. Notice of the time, place and purpose of any special meeting of the Board of Directors shall be given by or at the direction of the Chairman of the Board. The notice shall be given to each Director, at least ten days prior to the meeting, by written notice delivered personally, electronically mailed or mailed to each Director at their respective last known addresses. If mailed, such notice shall be deemed delivered when deposited in the United States mail so addressed, with first -class postage thereon prepaid. Notice of a meeting of the Board of Directors need not be given to any Director who signs a waiver of notice either before or after the meeting. Attendance of a Director at a meeting shall constitute waiver of notice of such meeting and waiver of any and all objections to the place of the meeting, the time of the meeting or the manner in which it has been called or convened, except when the Director attends the meeting solely for the purpose of stating, at the beginning of the meeting, any such objection or objections to the transaction of business. BYLAWS OF ARCTEC - 8 DWT 15916114v4 0023681- 000113 .�. L Section 4. Quorum for Meeting of Directors. A majority of the Board of Directors shall constitute a quorum for the transaction of business at any meeting of the Board of Directors. A majority of the Directors present may adjourn the meeting to another time and place without further notice, whether or not a quorum is present. Section 5. Action of Board of Directors. (a) The vote of a majority of Directors present and voting at the time of the vote, if a quorum is present at such time, shall be the act of the Board of Directors unless the vote of a greater number is required by law, the Articles of Incorporation or these Bylaws. (b) Notwithstanding the provisions of Subsection (a) of this Section 5, the affirmative vote of two - thirds of the Directors shall be required to modify, amend or rescind any rate for electric power and energy furnished under a Wholesale Power Contracts between each Member and the Cooperative. Notwithstanding the provisions of Article X hereof, the provisions of this Subsection (b) may not be altered, amended or repealed by the members except by the affirmative vote of two - thirds of the members. For purposes of this subsection, "rate" shall not include an adjustment for the cost of fuel or purchase power comparable to such a clause as defined and controlled by 3 AAC 52.501 - .519. Changes attributable solely to the cost of fuel or purchase power may be authorized by majority vote of the Directors as provided in subsection (a). Section 6. Written Consent of Directors. Any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if a written consent, setting forth the action so taken, is signed by all the Directors and filed with the minutes of the proceedings of the Board of Directors. Section 7. Board Meetings open; Telephonic Participation; Executive Session (a) Members of the cooperative may attend meetings of the Board of Directors. A vote shall be conducted in such a manner that the members may know the vote of each person entitled to vote. (b) The Board of Directors may conduct a meeting by teleconference or similar communications equipment if the Board of Directors gives notice of the meeting as set forth in these bylaws and if members of the cooperative are able to attend the meeting sites and hear the meeting. (c) The following subjects may be discussed by the Board of Directors in executive session closed to the public: (1) matters the immediate knowledge of which would clearly have an adverse effect on the finances of the cooperative; (2) subjects that BYLAWS OF ARCTEC - 9 DWT 15916114v4 0023681 - 000113 £ 3 tend to prejudice the reputation and character of a person, however the person may request a public discussion; and (3) matters discussed with an attorney for the cooperative, the immediate knowledge of which could have an adverse effect on the legal position of the cooperative. Article VI Officers Section 1. Officers; Qualifications. The officers of the Cooperative shall be the Chairman of the Board, Vice Chairman of the Board, Secretary, Treasurer and the President. Each officer must be a member of the Board of Directors. The Chairman of the Board must be a Member Director as described in Article IV, Section 3 of these Bylaws. Any two or more offices may be held by the same person. Section 2. Nomination, Election and Term of Office of Officers. All nominations for officers of the Cooperative shall be made by voice roll call vote. A secret ballot shall be used for election. The candidate for each Officer position receiving a majority vote of the Directors shall be elected. Each officer shall be elected annually by the Board of Directors at the first meeting of the Board of Directors held after the annual meeting of the Members or as soon thereafter as practicable. Each officer shall hold office as such until the first meeting of the Board of Directors following the next succeeding annual meeting of the Members and until a successor for such office shall have been elected and shall have qualified, or until such officer's earlier resignation, removal from office, or death. The Board of Directors shall fill any office which becomes vacant by electing a successor who shall hold office for the unexpired term and until such officer's successor shall have been duly elected and qualified. Section 3. Removal of Officers. Any officer or agent elected or appointed by the Board of Directors may be removed by the Board of Directors whenever in its judgment the best interest of the Cooperative will be served thereby. When an officer ceases to serve on the Cooperative's Board of Directors, such person shall automatically cease to be an officer of the Cooperative. Section 4. Chairman of the Board. The Chairman of the Board shall: (a) preside at meetings of the Board of Directors; and (b) have such other duties and powers as are incident to his office and such other duties and powers as may be prescribed by the Board of Directors from time to time. BYLAWS OF ARCTEC - 10 DWT 15916114v4 0023681- 000113 1 1_ +� Section 5. Vice Chairman of the Board. The Vice Chairman of the Board shall: (a) in the absence of the Chairman of the Board, assume the duties of the Chairman of the Board; and (b) have such other duties and power as are incident to his office and such other duties and powers as may be prescribed by the Board of Directors from time to time. Section 6. President. The Board of Directors shall designate a President. The President will serve at the pleasure of the Board of Directors. The President shall: (a) manage the day -to -day operations and activities of the Cooperative; (b) have the power to enter into and execute contracts on behalf of the Cooperative and to sign certificates, contracts or other instruments on behalf of the Cooperative; and (c) have such other duties and powers as are incident to his office and such other duties and powers as may be prescribed by the Board of Directors from time to time. At the determination of the Board of Directors, the President may be designated as chief executive officer of the Cooperative, in which case such designation may be added to the title of the office of President. Section 7. Secretary. The Secretary shall be responsible for seeing that minutes of all meetings of the Members and the Board of Directors are kept and shall have authority to certify as to the corporate books and records, and shall keep a register of the address of each Member and Director. The Secretary shall perform such other duties and have such other powers as may from time to time be delegated to him by the Board of Directors. Section 8. Treasurer. The Treasurer shall oversee the management of the financial affairs of the Cooperative except as assigned to staff, and shall perform the other duties incident to the office of Treasurer and have such other duties as from time to time may be assigned to him by the Board of Directors. Section 9. Election of Additional Officers and Appointment of Agents. The Board of Directors may elect from time to time one or more other officers and may appoint such agents as the Board of Directors may determine. BYLAWS OF ARCTEC - 11 DWT 15916114x4 0023681- 000113 Section 10. Compensation of Officers. The compensation of all officers shall be determined by the Board of Directors, or by a person or persons designated by the Board of Directors, and shall be approved by the members. Article VII Cooperative Operation Section 1. Interest or Dividends on Capital Prohibited. The Cooperative shall at all times be operated on a cooperative basis, and in accordance with the provisions of AS 10.25, for the mutual benefit of its Members. No interest or dividends shall be paid or payable by the Cooperative on any capital furnished by Members. Section 2. Patronage Capital in Connection with Furnishing Electric Energy. In the furnishing of electric energy, the Cooperative's operation shall be so conducted that all Members will through their patronage furnish capital for the Cooperative. In order to induce patronage and to assure that the Cooperative will operate on a cooperative basis, the Cooperative is obligated to assign on a patronage basis to all Members all amounts received from the furnishing of electric energy, capacity and services in excess of operating costs and expenses properly chargeable against the furnishing of electric energy, capacity or services. Amounts received in excess of operating costs and expenses shall be accounted for, allocated and assigned on a patronage basis in the manner that the Board of Directors determines from time to time, taking into account the manner in which those margins are collected under the rate structure then in effect or other appropriate factors. All such amounts at the moment of receipt by the Cooperative are received with the understanding that they are furnished by Members as capital. The Cooperative is obligated to credit to one or more capital accounts for each Member all such margins. The books and records of the Cooperative shall be set up and kept in such a manner that at the end of each fiscal year the amount of capital, if any, so furnished by each Member is clearly reflected and credited in an appropriate record to one or more capital accounts for each Member, and the Cooperative shall within a reasonable time after the close of the fiscal year notify each Member of the amount of capital so credited to its account or accounts. All such amounts credited to a capital account of any Member shall have the same status as though they had been paid to the Member in cash in pursuance of a legal obligation to do so and the Member had then furnished the Cooperative corresponding amounts for capital. All other amounts received by the Cooperative from its operations in excess of costs and expenses shall, insofar as permitted by law, be (a) used to offset any losses incurred during the current or any prior fiscal year and (b) to the extent not needed for that purpose, allocated to the Members on a patronage basis, and any amounts so allocated shall be included as a part of the capital credited to an appropriate account for each Member. In the event of dissolution or liquidation of the Cooperative, after all its outstanding BYLAWS OF ARCTEC - 12 DWT 15916114v4 0023681- 000113 1 �; :;■• indebtedness shall have been paid, outstanding capital credits shall be retired without priority on a pro rata basis before any payments are made on account of property rights of Members. If, at any time prior to dissolution or liquidation, the Board of Directors shall determine that the financial condition of the Cooperative will not be impaired thereby, the capital then credited to Members' accounts and the accounts of former Members may be retired in full or in part. Any such retirements of capital from a particular type account shall be made in accordance with policies adopted by the Board of Directors. Capital credited to the accounts of Members shall be assignable only on the books of the Cooperative to a transferee of a Member's membership, pursuant to written instruction from the Member and then only upon satisfaction of all requirements for a transfer of membership established by or pursuant to these Bylaws. Section 3. Accounting System and Reports. The Board of Directors shall cause to be established and maintained a complete accounting system, which shall conform to applicable law and to the requirements of the Cooperative's lenders. After the close of each fiscal year, the Board of Directors shall also cause to be made a full and complete audit of the accounts, books and financial condition of the Cooperative as of the end of such fiscal year. A report on the audit for the fiscal year immediately preceding each annual meeting of Members shall be submitted to the Members at such annual meeting. Section 4. Limitations on Disposition of Property. The Cooperative may not otherwise sell, lease, or dispose of more than fifteen percent (15 %) of the Cooperative's total assets, less depreciation, as reflects on the books of the Cooperative at the time of the transaction unless the transaction is authorized under AS 10.25.400 or any successor provision thereto. Article VIII Indemnification and Insurance Section 1. Indemnification. The Cooperative shall indemnify each person who is or was a Director, officer, employee or agent of the Cooperative (including the heirs, executors, administrators or estate of such person) who is or may be made a party to a contested matter (as defined in AS 10.25) against expenses actually and reasonably incurred in connection with such contested matter to the full extent permitted under AS 10.25. Section 2. Insurance. The Cooperative may purchase and maintain insurance at its expense, to protect itself and any Director, officer, employee or agent of the Cooperative (including the heirs, executors, administrators or estate of any such person) against any liability, cost, payment or expense BYLAWS OF ARCTEC - 13 DWT 15916114v4 0023681 - 000113 2 2 described in Section 1 of this Article VIII and incurred in an official capacity or arising out of such Director's, officer's, employee's or agent's status, whether or not the Cooperative would have the power to indemnify such person against such liability. Article IX Seal The seal of the Cooperative shall be in such form as the Board of Directors may from time to time determine. In the event it is inconvenient to use such a seal at any time, the words "Corporate Seal" or the word "Seal" accompanying the signature of an officer signing for and on behalf of the Cooperative shall be the seal of the Cooperative. Article X Amendment These Bylaws may be amended at any meeting of the members by the affirmative vote of not less than a majority of the members present at a meeting at which a quorum is present, provided notice of such meeting containing a copy of the proposed amendment must be given not less than fifteen nor more than sixty days prior thereto. CERTIFICATE OF ADOPTION OF BYLAWS I, the undersigned secretary of , do certify that the foregoing bylaws were duly adopted as the bylaws of the corporation [by virtue of consents dated the day of , 20 ,][at a duly noticed meeting of the board of directors at which a quorum was present held on , 20] and that the same do now constitute the bylaws of the corporation with all prior versions no longer of any force or effect. By: Name: Title: Secretary BYLAWS OF ARCTEC - 14 DWT 15916114v4 0023681 - 000113 2 ��3 Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -127 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA AUTHORIZING THE CITY MANAGER TO ENTER INTO AMENDMENT NUMBER THREE WITH RISE ALASKA, LLC (RISE) FOR PROFESSIONAL PROJECT MANAGEMENT SERVICES THROUGH 100% DESIGN FOR THE NEW CO- LOCATED LIBRARY MUSEUM FACILITY, APPROPRIATING ADDITIONAL FUNDING NOT -TO- EXCEED FORTY EIGHT THOUSAND FORTY EIGHT DOLLARS ($48,048) WHEREAS, in accordance with Seward City Code 6.10.310 the City of Seward submitted a request for proposals for professional project management services for the library museum project; and WHEREAS, RISE earned the most points with the request for proposal grading criteria approved by the Seward City Council and was awarded the professional services agreement to perform project management services through the Schematic Design phase with Resolution 2009 -091; and WHEREAS, Council approved Resolution 2010 -22 Amendment #1 with RISE Alaska to develop and issue a request for proposal to select a construction firm to act as consultant to the owner in the development and design phase; and WHEREAS, Council approved Resolution 2010 -069 Amendment #2 authorizing RISE to serve as consultants through the design development phase (65% design); and WHEREAS, the project will move forward through Construction Documents Phase (100% Design) with RISE providing Project Management Services with Amendment #3 for an amount not to exceed forty eight thousand forty eight dollars ($48,048) to include facilitation of meetings, meeting minutes, review of alternate building systems, negotiation of the contractor's CMP, and other services as outlined in their original proposal and contract; and WHEREAS, an additional 10% contingency is being included in this Amendment #3 for a total amount not to exceed forty eight thousand forty eight dollars ($48,048); and WHEREAS, the current total contract amount with RISE is one hundred sixty thousand three hundred and fifty eight dollars ($160,358), including contingency; and WHEREAS, further Project Management Services for will come before the Council for contract approval and fund appropriations. r .'t CITY OF SEWARD, ALASKA RESOLUTION 2010 -127 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 Amendment #3 with RISE Alaska, LLC in substantial form as attached hereto to provide project management services through construction document phase for a cost not -to- exceed forty eight thousand forty eight dollars ($48,048), including the 10% contingency, and appropriates funds from the Library /Museum Fund account no. 626 -626x- 4680 -0200 to contracted services account no. 626 - 626X -5390. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of December, 2010. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Jean Lewis City Clerk, CMC (City Seal) 1 �:.3 Council Agenda Statement r 4OF SEtt, Meeting Date: December 13, 2010 '':1`-1 Through: City Manager Phillip Oates q �as`P +� From: Library Museum Director Patricia Linville Agenda Item: Authorizing the City Manager to enter into Amendment Number Three with RISE Alaska, LLC for professional Project Management Services through 100% Design for the new co- located Library Museum Facility, appropriating additional funding not -to- exceed $48,048. BACKGROUND & JUSTIFICATION: Since 2003, the City of Seward, Seward Community Library Association and the Resurrection Bay Historical Society have been planning to co- locate the Community Library and the Seward Museum to a new facility. Co- location will create efficiencies of service and space as well as providing the amount of space needed to meet the existing and future needs of these organizations. On August 17, 2009 a request for proposals was issued soliciting for project management services. The project management services include assistance in selecting a design team, negotiating the design contract and overseeing the design team's work during the schematic design phase. Three proposals were submitted by the deadline, were judged responsive and reviewed by the selection team. RISE Alaska, LLC obtained the highest points and a contract was approved with Resolution 2009 -091. Council approved Resolution 2010 -22 Amendment #1 with RISE Alaska to develop and issue a request for proposal to select a construction firm to act as consultant to the owner in the development and design phase as part of the CM/GC project implementation. Council approved Resolution 2010 -069 Amendment #2 with RISE Alaska on July 26, 2010 which contracted RISE to serve as consultants through design development (65 %). The Library /Museum Project was awarded $4.7 Million dollars in the State's Capital budget and this funding allows the project to move forward with the necessary design development phases. RISE has submitted a proposal to continue as the Project Manager through Construction Documents Phase (100% Design) with Amendment #3 for an amount not to exceed $43,680. Their proposed services include meeting facilitation and meeting minutes, review of alternate building systems, negotiation of contractor's CMP, and other services as outlined in their original proposal and contract. RISE Alaska's proposal was reviewed and approved by the Project Executive Committee per the Memorandum of Agreement between the City of Seward and the Seward Community Library Museum Building Committee. Further Project Management Services will return to the PEC for recommendation and to Council for contract approval and fund appropriations. INTENT: Approve a contract with RISE ALASKA, LLC for Construction Documents (100 %Design) Project Management Services in the amount of $43,680, including a 10% contingency, and obtain Council approval for the transfer of funds. r 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: This action appropriates $43,680 including 10% contingency for the contract with RISE Alaska, LLC, and appropriates funds from the Library /Museum Fund account no. 626 -626x- 4680 -0200 to contracted services account no. 626 -626X -5390. Approved by Finance Department: v0644,4. ATTORNEY REVIEW: No. RECOMMENDATION: Approve Resolution 2010- 1 authorizing the City Manager to enter into Amendment Number Three with RISE Alaska, LLC for professional Project Management Services through 100% Design for the new co- located Library Museum Facility, appropriating additional funding not -to- exceed $43,680. 1 r i RISE November 19, 2010 Christy Terry, Community Development Director City of Seward P.O. Box 167 Seward, AK 99664 RE: Amendment #3 to Contact C09 -091 Library Museum Project Management Dear Ms Terry, We request an amendment to the above referenced contract to extend Project Management Services through the Construction Documents phase of design. This Modification of $43,680 would increase the NTE fee $110,060, to change the total contract amount to $153,740. The scope of services will be to manage the design process for through the Construction Document phase of design, including, facilitation of meetings, writing meeting minutes, review of alternate building systems, negotiation of the contractor's GMP and as outlined in our original agreement. I have included 16 hours per for Judi Andrijanoff to support the project and help with writing monthly reports. The additional fees are detailed on the attached SCLM Fee Estimate. Sincerely, Roe Sturgulewski President RISE Alaska LLC 1 c. Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -128 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO AMENDMENT NUMBER TWO WITH ECl/HYER INC. FOR PROFESSIONAL CONSTRUCTION DOCUMENTS BASIC SERVICES FOR THE NEW CO- LOCATED LIBRARY MUSEUM FACILITY, AND APPROPRIATING ADDITIONAL FUNDING NOT -TO- EXCEED FOUR HUNDRED TWO THOUSAND FIVE HUNDRED NINETY ONE DOLLARS ($402,591) WHEREAS, in accordance with Seward City Code 6.10.310 the City of Seward submitted a request for proposals for professional design services for the library museum replacement project; and WHEREAS, following the review and evaluation, a short list of proposals, which most nearly met the requirements and received the most points under the selection criteria approved by Council, was developed in accordance with SCC 6.10.335; and WHEREAS, upon receiving the clarifying information, ECl/Hyer Inc. received the most points and was the highest ranked of the short- listed proposers; and WHEREAS, ECI /Hyer has submitted a fee proposal to continue their design services through construction documents for three hundred sixty five thousand nine hundred and ninety two dollars ($365,992); and WHEREAS, the construction document deliverables will include (but are not limited to): drawings and specifications setting forth in detail the quality levels of materials and systems and other requirements for the construction of the work; and WHEREAS, construction document deliverables also include shop drawings, product data, samples and other similar submittals which the architect shall review for conformance with the design documents; and WHEREAS, an additional 10% contingency is being included in this Amendment #2 for a total amount not to exceed thirty six thousand five hundred ninety nine dollars ($36,599); and WHEREAS, the current total contract amount with ECI /Hyer is nine hundred sixteen thousand three hundred seventy five dollars ($916,375) including contingency; and WHEREAS, future design and construction management service requests will come to the PEC for recommendation and to Council for contract approval and fund appropriations. • CITY OF SEWARD, ALASKA RESOLUTION 2010 -128 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 Amendment #2 with ECI /Hyer Inc. in substantial form as attached hereto to provide design services through construction document for a cost not -to- exceed four hundred and two thousand five hundred ninety one dollars ($402,591) including the 10% contingency, and appropriates funds from the Library /Museum Fund account no. 626 -626x- 4680 -0200 to contracted services account no. 626 -626X -5390. Section 2. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of December, 2010. THE CITY OF SEWARD, ALASKA Willard E. Dunham, Mayor AYES: NOES: ABSENT: ABSTAIN: VACANT: ATTEST: Jean Lewis City Clerk, CMC (City Seal) 1) Council Agenda Statement e 4 Of SFts, o Meeting Date: December 13, 2013 �> Through: City Manager Phillip Oates P From: Library Museum Director Patricia Linville Agenda Item: ECI /Hyer Inc. professional construction document basic services for the new co- located Library Museum Facility BACKGROUND & JUSTIFICATION: Since 2003, the City of Seward, Seward Community Library Association and the Resurrection Bay Historical Society have been planning to co- locate the Community Library and the Seward Museum to a new facility. Co- location will create efficiencies of service and space as well as providing the amount of space needed to meet the existing and future needs of these organizations. In accordance with Seward City Code 6.10.310 the City of Seward submitted a request for proposals for professional design services for the library museum replacement project. Following the review and evaluation, a short list of proposals, which most nearly met the requirements and received the most points under the selection criteria approved by Council, was developed in accordance with SCC 6.10.335. Upon receiving the clarifying information, ECI /Hyer Inc. received the most points and was the highest ranked of the short-listed proposers. ECI /Hyer has submitted a fee proposal to continue their design services through construction documents for three hundred sixty five thousand and nine hundred and ninety two dollars ($365,992) The construction document deliverables from ECI /Hyer will include (but are not limited to): drawings and specifications setting forth in detail the quality levels of materials and systems and other requirements for the construction of the work. The architect will provide additional information, including shop drawings, product data, samples and other similar submittals, which the architect shall review for conformance with the design documents. ECI /Hyer's proposal was reviewed and approved by the Project Executive Committee per the Memorandum of Agreement between the City of Seward and the Seward Community Library Museum Building Committee. Future design and construction management service request will come to the PEC for recommendation and to Council for contract approval and fund appropriations. INTENT: Approve a contract with ECI /Hyer Inc. for Construction document Services in the amount of four hundred two thousand five hundred and ninety one dollars ($402,591) including a 10% contingency, and obtain Council approval for the transfer of funds. 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: This action proposes to utilize funds accepted from the State of Alaska for the purpose of construction document services. This action appropriates for the contract with ECl/Hyer, Inc. for $402,591. The current total contract amount with ECI /Hyer is nine hundred sixteen thousand three hundred seventy five dollars ($916,375) including contingency. Approved by Finance Department: du', .%?/9 //0 ATTORNEY REVIEW: No. RECOMMENDATION: c t Approve Resolution 2010- Iti , authorizing the City Manager to enter into Amendment Number Two with ECI /Hyer Inc. for professional construction document basic services for the new co- located Library Museum Facility, and appropriating additional funding not -to- exceed four hundred two thousand five hundred and ninety one dollars ($402,591) Professional Services Agreement with ECl/Hyer, Inc. for Professional Schematic Design Services This AGREEMENT, made and entered into this 26 day of October, 2009 by and between the CITY OF SEWARD, a home rule municipal corporation located within the Kenai Peninsula Borough and organized under the laws of the State of Alaska, hereinafter referred to as the "City" and ECl/Hyer Inc., a corporation authorized to do business in Alaska, with offices located at 101 W. Benson Blvd., Suite 306, Anchorage, Alaska, 99503, hereinafter referred to as the "Architect." WITNESSED WHEREAS, the City of Seward wishes to enter into a contract with an independent Architect to provide Professional Schematic Design Services for the Seward Library Museum Replacement Project in Seward, Alaska; and WHEREAS, in response to a request for proposals, ECl/Hyer submitted a proposal asserting it is qualified to perform these services and able to do so in a timely manner; NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows: 1.0 DEFINITIONS 1.1 "Agreement" shall mean this Professional Services Agreement, including: Exhibit A — ECI /Hyer, Inc. proposal dated 9/28/09 Exhibit B — City's request for proposals dated 8/31/09 and addenda 1 -5 1.2 "Change Order" is an addition to, or reduction of, or other revision approved by the City in the scope, complexity, character, or duration of the services or other provisions of this Agreement. 1.3 "City" shall all mean the City of Seward, Alaska. 1.4 "Contracting Officer" shall mean City Manager Phillip Oates, and include any successor or authorized representative. 1.5 "Project" shall mean the schematic design services for the library museum replacement project in Seward, Alaska, as further described in the City's request for proposals issued August 31, 2009. 2.0 TERM OF AGREEMENT. This Agreement shall take effect upon execution. This - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009 - -Page 1 of 8- 1;) Agreement shall remain in full force and effect until the Project has been completed and further, until all claims and disputes have been concluded. The work is considered complete when the City has received and found acceptable the finished product of all work described in 4.0 Scope of Services or changes thereto. This date is not necessarily the Completion Date as described in 5.0 Completion Date. This Agreement may be amended only in writing and upon compliance with all applicable statutes, ordinances, and regulations. 3.0 FEES. The Architect will provide schematic design services for a lump sum basis at a fixed fee of $123,570.00. If utilized, services of Library & Museum Planner Thomas Hacker are offered for an additional fee of $24,000. Total Cost through Schematic Design, including the optional services of Thomas Hacker, is for a price Not To Exceed $147,570. 4.0 SCOPE OF SERVICES. The City and Architect have agreed upon a scope of work described in the Architect's proposal, Exhibit A, to provide schematic design services based on approved standards and instructions as specifically described in the City's request for proposals, Exhibit B. This Scope of Services can only be changed in writing pursuant to Section 26.0 of this Agreement. 5.0 SCHEDULE FOR COMPLETION. The schedule for completion for all work described herein shall be as follows: February 1, 2010. 6.0 PERSONNEL /ORGANIZATION 6.1 Key Personnel. Work and services provided by the Architect will be performed by: Principal in Charge Teny Hyer, Principal/Lead Designer Brian Meissner, and Project Manager /Architect Jae Shin. Additionally, Library & Museum Planner Thomas Hacker may be utilized by the City. 6.2 Changes in Key Personnel. The Architect shall give the City reasonable advance notice of any necessary substitution or change of key personnel and shall submit justification therefore in sufficient detail to pen the City to evaluate the impact of such substitution on this Agreement. No substitutions or other changes shall be made without the written consent of the City. 7.0 STANDARD OF PERFORMANCE. The Architect agrees to provide all required professional services to complete the project and any additions or changes thereto. The Architect accepts the relationship of trust and confidence established between it and the City by this Agreement. The Architect covenants with the City to furnish its skill and judgment, and to further the interest of the City at all times through efficient business administration and management. The Architect shall provide all services in a competent manner. It is understood that some of the services to be rendered hereunder required professional judgment and skill. In those cases, the Architect agrees to adhere to the - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009 - -Page 2 of 8- standards of the applicable profession. 8.0 COMPLIANCE WITH LAWS. The Architect shall be familiar with and at all times comply with and observe all applicable federal, state and local laws, ordinances, rules, regulations, and executive orders, all applicable safety orders, all orders or decrees of administrative agencies, courts, or other legally constituted authorities having jurisdiction or authority over the Architect, the City, or the service which may be in effect now or during performance of the services. 9.0 INDEMINITY. The Architect shall indemnify, defend, and hold harmless the City from and against any claim of, or liability for, negligent acts, errors, and omissions of the Architect under this agreement, including attorney fees and costs. The consultant is not required to indemnify, defend, or hold harmless the City for a claim of, or liability for, the independent negligent acts, errors, and omissions of the City. If there is a claim of, or liability for, a joint negligent act, error, or omission of the Architect and the City, the indemnification, defense, and hold harmless obligation of the Architect, and liability of the parties, shall be apportioned on a comparative fault basis. In this provision, "Architect" and "City" include the employees, agents, and contractors who are directly responsible, respectively, to each. In this provision, "independent negligent acts, errors, and omissions of the City" means negligence other than in the City's selection, administration, monitoring, or controlling of the Architect, or in approving or accepting the Architect's work or the Architect's subcontractors. 10.0 INSURANCE. The Architect understands that no City insurance coverage, including Workers' Compensation, are extended to the Architect while completing the terms of this Agreement. The Architect shall carry adequate (commercially reasonable coverage levels) insurance covering Workers' Compensation, general public liability, automobile, professional liability including errors and omissions, and property damage including a contractual liability endorsement covering the liability created or assumed under this Agreement. The Architect shall not commence work under this Agreement or any work on any phase of the Project until the Architect provides the City with certificates of insurance evidencing that all required insurance has been obtained. These insurance policies and any extension or renewals thereof must contain the following provisions or endorsements: a. City is an additional insured thereunder as respects liability arising out of or from the work performed by Architect of City of Seward. b. City will be given thirty (30) days prior notice of cancellation or material alteration of any of the insurance policies specified in the certificate. c. Insurer waives all rights of subrogation against City of Seward and its employees or elected officials. d. The insurance coverage is primary to any comparable liability insurance carried by the City of Seward. - Professional Service Agreement for Professional Schematic design Services Seward Library Museum Project -2009 - -Page 3 of 8- I r, 5 Upon request, Architect shall permit the City to examine any of the insurance policies specified herein. Any deductibles or exclusions in coverage will be assumed by the Architect, for account of, and at the sole risk of the Architect. 11.0 GOVERNING LAW. The laws of Alaska will determine the interpretation, performance and enforcement of this Agreement. 1.2.0 OWNERSHIP OF WORK PRODUCTS. Payment to the Architect for services hereunder include full compensation for all work products and other materials produced by the Architect and its sub - contractors pertaining to this Agreement. The originals of all material prepared or developed by the Architect or its employees, agents, or representatives hereunder, including documents, drawings, designs, calculations, maps, sketches, notes, reports, data, models, computer tapes, and samples shall become the property of the City when prepared, whether delivered or not, and shall, together with any materials furnished the Architect and its employees, agents, or representatives by the City hereunder, be delivered to the City upon request and, upon termination or completion of this Agreement. Materials previously created and copyrighted by the Architect included in this project will remain property of the Architect. Copies will be made available to the City upon request. Materials purchased from and copyrighted by third parties are not included in this provision. 13.0 PATENTS, TRADEMARKS, AND COPYRIGHTS. The Architect agrees to defend, indemnify, and save the City harmless from and against any and all claims, costs, royalties, damages and expenses of any kind of nature whatsoever (including attorneys' fees) which may arise out of or result from or be reasonably incurred in contesting any claim that the methods, processes, or acts employed by the Architect or its employees in connection with the performance of services hereunder infringes or contributes to the infringement of any letter patent, trademark, or copyright. In case such methods, processes, or acts are in suit held to constitute infringement and use is enjoined, the Architect, within reasonable time and at its own expense, will either secure a suspension of the injunction by procuring for the City a license or otherwise, or replace such method, process, etc., with one of equal efficiency. 14.0 NONWAIVER. No failure of the City or Architect to insist upon the strict performance by the other of any of the terms of this Agreement or to exercise any right or remedy herein conferred shall constitute a waiver or relinquishment to any extent of its rights to rely upon such terms or rights on any future occasion. Each and every term, right, or remedy of this Agreement shall continue in full force and effect. 15.0 SAFETY/PERFORMANCE. The Architect shall perform the work in a safe and workmanlike manner. The Architect shall comply with all federal and state statues, ordinances, orders, rules, and regulations pertaining to the protection of workers and the public from injury or damage, and shall take all other reasonable precautions to protect workers and the public from injury or damage. Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009 - -Page 4 of 8- 1 ,? 3 16.0 SUSPENSION OR TERMINATION. 16.1 Fault Termination or Suspension. This Agreement may be terminated by either party upon ten (10) days written notice if the other party fails substantially to perform in accordance with its terms. If the City terminates this Agreement it will pay the Architect a sum equal to the percentage of work completed and accepted by the City that can be substantiated by the Architect and the City, offset by any amounts owed to the City. However, within the ten (10) day Notice of Intent to terminate the party in default shall be given an opportunity to present a plan to correct its failure. 16.2 Convenience Suspension or Termination. The City may at any time terminate or suspend this Agreement for any reason including its own needs or convenience. In the event of a convenience termination or suspension for more than six (6) months, the Architect will be compensated for authorized services and authorized expenditures performed to the date of receipt of written notice of termination or suspension. No fee or other compensation for the uncompleted portion of the services will be paid, except for already incurred indirect costs which the Architect can establish and which would have been compensated but because of the termination or suspension would have to be absorbed by the Architect without further compensation. 16.3 Activities Subsequent to Receipt of Notice of Termination or Suspension. Immediately upon receipt of a Notice of Termination or suspension and except as otherwise directed by the City or its Representative, the Architect shall: a. stop work performed under this Agreement on the date and to the extent specified in the Notice; and b. transfer title to the City (to the extent that title has not already been transferred) and deliver in the manner, at the times, and to the extent directed by the City's representative, work in progress, completed work, supplies, and other material produced as a part of, or acquired in respect of the performance of the work terminated or suspended by the Notice. 17.0 EQUAL EMPLOYMENT OPPORTUNITY. The Architect shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, or because of age, physical handicap, sex, martial status, change in marital status, pregnancy, or parenthood when the reasonable demands of the position do not require distinction on the basis of age, physical handicap, sex, marital status, changes in marital status, pregnancy, or parenthood. The Architect shall take affirmative action required by law to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, national origin, ancestry, age, or marital status. - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009 - -Page 5 of 8- J 18.0 NO ASSIGNMENT OR DELEGATION. The Architect may not assign, subcontract or delegate this Agreement, or any part of it, or any right to any of the money to be paid under it without written consent of the Contracting Officer. 19.0 INDEPENDENT ARCHITECT. The Architect shall be an independent Architect in the performance of the work under this Agreement, and shall not be an employee or agent of the City. 20.0 PAYMENT OF TAXES. As a condition of performance of this Agreement, the Architect shall pay all federal, state and local taxes incurred by the Architect and shall require their payment by any other persons in the performance of this Agreement. 21.0 PRECEDENCE AND DIVISIBILITY. The provisions of this Agreement shall fully govern the services performed by the Architect. If any term, condition, or provision of this Agreement is declared void or unenforceable, or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. 22.0 STATE OF ALASKA AND CITY OF SEWARD BUSINESS LICENSE. The Architect shall not commence work under this Agreement or any work on any phase of the Project until the Architect provides the City with copies of their State of Alaska and City of Seward business licenses. 23.0 ENTIRE AGREEMENT. This Agreement contains the entire agreement between the parties as to the services to be rendered by the Architect. All previous or concurrent agreements, representations, warranties, promises, and conditions relating to the subject matter of this Agreement are superseded by this Agreement. 24.0 COMPLETION OF WORK, TERM OF AGREEMENT. The Architect shall perform all work in a timely fashion, and in accordance with the schedules included in this Agreement and Exhibits. 25.0 CLAIMS AND DISPUTES. Venue for all claims and disputes under this Agreement, if not otherwise resolved by the parties, shall be in the appropriate Alaska State court in Anchorage, Alaska. 26.0 CHANGES IN SCOPE OF WORK. 26,1 General. No claim for additional services not specifically provided in this Agreement will be allowed, nor may the Architect do any work or furnish any materials not covered by the Agreement unless the work or material is ordered in writing by the Contracting Officer. Preparation of Change Orders and design changes, due to errors and /or omissions by the Architect, will be done at the sole expense of the Architect. 26.2 Changes in Scope of Work. The City or its representative may, at any tune, by a - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009 - -Page 6 of 8- f () ) written Change Order delivered to the Architect, make changes to the scope of work, or authorize additional work outside the scope of work. 26.3 Compensation to the Architect. If any Change Order for which compensation is allowed under this Article causes an increase or decrease in the estimated cost of, or time required for, the performance of any part of the work under this Agreement, or if such change otherwise affects other provisions of this Agreement, an equitable adjustment will be negotiated. Such an adjustment may be: a. in the estimated cost or completion schedule, or both; b. in the amount of fee to be paid; and c. in such other provisions of the Agreement as may be affected, and the Agreement shall be modified in writing accordingly. 26.4 Any claim by the Architect for adjustment under this section must be asserted within fifteen (15) days from the day of receipt by the Architect of the notification of change; provided, however, that the City or its representative, deciding that the facts justify such action, may receive and act upon any such claim asserted at any time prior to final payment under this Agreement. Failure to agree to any adjustment shall be a dispute within the meaning of Section 25.0 of this Agreement. 27.0 LIMITATION OF FUNDS. 27.1 At no time will any provision of this Agreement make the City or its representative liable for payment for performance of work under this Agreement in excess of the amount that has been appropriated by the City Council and obligated for expenditure for purposes of this Agreement. 27.2 Change orders issued pursuant to Section 26 of this Agreement shall not be considered an authorization to the Architect to exceed the amount allotted in the absence of a statement in the change order, or other modification increasing the amount allotted. 27.3 Nothing in this Section shall affect the right of the City under Section 17 to terminate this Agreement. 28.0 PRIOR WORK. For the purposes of this Agreement, work done at the request of the City or its representative before execution of this Agreement shall be deemed to be work done after its execution and shall be subject to all the conditions contained herein. 29.0 NOTICES. Any notices, bills, invoices, or reports required by the Agreement shall be - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009 - -Page 7 of 8- J 9 sufficient if sent by the parties in the United States mail, postage paid, to the address noted below: City of Seward Coimnunity Development Director Christy Terry PO Box 167 Seward, Alaska 99664 -0167 IN WITNESS WHEREOF, the parties have executed this Agreement. City of Seward ECl/Hyer, Inc. /22" k By: Phillip Oates By: Teri - Hyer Title: City Manag r Title: Principal Date: $0 /2:a 2.00 Date: /a. Z2- . o ATTEST: Jf'an Lewis, CMC qty Clerk (city seal) Qz� 1.7f/ m _va C6 .mac _�fngs3 2C 4 ..444 V 0 ? o .. 0 ° :3 rtx ° . - Professional Service Agreement for Professional Schematic Design Services Seward Library Museum Project -2009 - -Page 8 of 8- 140 gel ® lom Document G8O2TM 2007 Amendment to the Professional Services Agreement Amendment Number: 002 TO: Christy Terry (Owner or Owner's Representative) In-accordance with the Agreement dated: October 26, 2009 BETWEEN the Owner: (Name and address) City of Seward 234 Fourth Ave. Petro Plaza Bldg. Seward, AK 99664 and the Architect: (Name and address) ECI Hyer, Inc. 101 W. Benson Blvd., Suite 306 Anchorage, AK 99503 for the Project: (Name and address) Seward City Library Museum Seward, Alaska Authorization is requested ® to proceed with Additional Services. CI to incur additional Reimbursable Expenses. As follows: ECI /I -Iyer ,Inc. is authorized to proceed with Construction Documents Basic Services and CM /GC Coordination & Bid Phase Services in accordance with the Agreement and further described in the ECI /Hyer Inc. letter of July 22, 2010. The following adjustments shall be made to compensation and time. (Insert provisions in accordance with the Agreement or as otherwise agreed by the parties.) Compensation: Construction Documents Basic Services: Fixed Price $365,992 (three hundred sixty -five thousand nine hundred ninety-two dollars) CM /GC Coordination and Bid Phase Services: Time and Materials Allowance $41.242 (forty-one thousand two hundred forty=two dollars) Total Adjustment to Compensation Add: $407,234 (four hundred seven thousand two hundred thirty-four dollars) Time: Completion of Construction Documents by March 31, 2011 AIA Document G802' ' — 2007 (formerly G606" — 2000). Copyright © 2000 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Docun1ent is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, or any portion of'it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 16:08:30 on 11/05/2010 un er r r No.1546466275_1 which expires on 08/20/2011, and is not for resale. User Notes: (841703987) SUBMITTED BY: AGREED TO: (Signature) U (Signature) Terry K. Hyer, Principal (Printed name and title) (Printed name and title) (Date) (Date) AIA Document G802 TM - 2007 (formerly G606T" — 2000). Copyright ® 2000 and 2007 by The American Institute of Architects. All rights reserved. WARNING: This AIA Document is protected by U.S. Copyright Law and International Treaties. Unauthorized reproduction or distribution of this AIA Document, 2 or any portion of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced by AIA software at 16:08:30 on 11/05/2010 under Order No.1546466275 1 which expires on 08/20/2011, and is not for resale. User Notes: (641703987) 14 ? Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE ISSUANCE AND SALE OF GENERAL OBLIGATION BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,730,000 TO PAY THE COSTS OF LIBRARY/MUSEUM CAPITAL IMPROVEMENTS IN THE CITY, FIXING CERTAIN DETAILS OF SUCH BONDS, AND PLEDGING THE FULL FAITH AND CREDIT OF THE CITY TO THE PAYMENT THEREOF WHEREAS, pursuant to Resolution 2009 -53 of the City of Seward (the "City ") passed and approved on June 22, 2009, the following question, referred to at the election held on October 6, 2009 as Proposition No. 3 ( "Proposition 3 "), was passed and approved: PROPOSITION NO. 3 General Obligation Bonds for Seward Community Library Museum Capital Improvements Shall the City of Seward incur debt and issue general obligation bonds in an amount not to exceed five million dollars ($5,000,000) to finance the construction of community library museum capital improvements in the City? Bonds may not be issued until the City has obtained additional funding through contributions and grants for the remainder of the costs of the project. The bonds shall be secured by a pledge of the full faith and credit of the City. It is expected that annual payments of principal and interest on the Bonds will not exceed the annual amount to be received by the City from a one -half percent sales tax. PROPOSITION NO. 3 YES NO A "Yes" vote authorizes the issuance of not to exceed $5 million dollars of general obligation bonds for capital costs for the library /museum project. A "No" vote does not authorize the issuance of not to exceed $5 143 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 million dollars of general obligation bonds for capital costs for the library /museum project. WHEREAS, in a report to the City Council by ECI /Hyer & RISE Alaska on November 29, 2010, the total cost of competing the library /museum project is estimated to be approximately $10,294,560; and WHEREAS, the City received grants and donations to fund a substantial portion of the project costs; and WHEREAS, it is necessary and in the best interest of the City and its residents that the City proceed to plan, design, do site preparation for, construct, acquire, renovate, install and equip the capital improvements within the City described in Proposition 3 (the "Project "), and issue not to exceed $3,730,000 principal amount of the general obligation bonds referred to in Proposition 3, to pay costs of the Project; and WHEREAS, under the Internal Revenue Code, the City may issue its general obligation bonds as tax - exempt bonds or, if such statutory authorization is available, as taxable "Build America Bonds," or as taxable "Recovery Zone Economic Development Bonds;" and WHEREAS, the City Council finds that it is necessary and appropriate to delegate to the Seward Finance Director authority to determine whether to issue the bonds as tax - exempt bonds, taxable "Build America Bonds," or taxable "Recovery Zone Economic Development Bonds," or as a combination thereof with each type of bonds being issued in a separate series, to determine the maturity amounts, interest rates and other details of each series of bonds, and to determine other matters that are not provided for in this resolution; and WHEREAS, the City intends to sell its bonds to the Alaska Municipal Bond Bank, which will purchase the bonds with proceeds of an issue of general obligation bonds; and WHEREAS, there has been presented to the City the form of a Loan Agreement between the Alaska Municipal Bond Bank and the City, which provides for the Alaska Municipal Bond Bank to purchase the Bonds on the terms and conditions set forth therein and in this resolution, and it is in the best interest of the City that it sell the bonds to the Alaska Municipal Bond Bank under such terms and conditions; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF 2 14 4 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 SEWARD, ALASKA that: SECTION 1. Definitions. The following terms shall have the following meanings in this resolution: (a) "Bond" or "Bonds" means any of the Bonds of the City, the issuance and sale of which are authorized herein as the evidence of the indebtedness referred to in Proposition 3. (b) "Bond Bank" means the Alaska Municipal Bond Bank. (c) "Bond Register" means the registration books maintained by the Registrar, which include the names and addresses of the owners or nominees of the Registered Owners of the Bonds. (d) "Build America Bonds" means the Bonds that are described in Section 54AA(d)(1) of the Code. (e) "City" means the City of Seward, Alaska, a municipal corporation of the State of Alaska. (f) "City Council" means the City Council of the City, as the general legislative authority of the City, as the same shall be duly and regularly constituted from time to time. (f) "Code" means the Internal Revenue code of 1986, as amended from time to time, together with all regulations applicable thereto. (g) "Cost" or "Costs" means the cost of planning, designing, acquiring property for, site preparation, constructing, acquiring, renovating, installing and equipping the Project, including interest on the Bonds during the period of planning, designing, acquiring property for, site preparation, constructing, acquiring, renovating, installing, and equipping the Project, the cost whether incurred by the City or by another of field surveys and advance planning undertaken in connection with the Project properly allocable to the Project, the cost of acquisition of any land or interest therein required as the site or sites of the Project or for use in connection therewith, the cost of any indemnity and surety bonds and premiums on insurance incurred in connection with the Project prior to or during construction thereof, all related direct administrative and inspection expenses whether incurred by the City or by another in connection with the Project prior to or during construction 3 145 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 thereof and allocable portions of direct costs of the City, legal fees, costs of issuance of the Bonds by the City, including financing charges and fees and expenses of bond counsel, financial advisors and consultants in connection therewith, the cost of any bond insurance premium, any required reserve fund obligations, the cost of audits, the cost of all machinery, apparatus and equipment, cost of engineering, architectural services, designs, plans, specifications and surveys, estimates of cost, the reimbursement of all moneys advanced from whatever source for the payment of any item or items of cost of the Project, and all other expenses necessary or incidental to determining the feasibility or practicability of the Project, and such other expenses not specified herein as may be necessary or incident to the acquisition and development of the Project, the financing thereof and the putting of the same in use and operation. (h) "Loan Agreement" means the Loan Agreement between the City and the Bond Bank, dated as of the date of the Bonds. (i) "Project" means library /museum capital improvements in the City authorized by Proposition 3. (j) "Recovery Zone Economic Development Bonds" means Bonds that are described in Section 1400U- 2(b)(1) of the Code. (k) "Registered Owner" means the person named as the registered owner of a Bond in the Bond Register. (I) "Registrar" means the Finance Director of the City, or any successor that the City may appoint through resolution. SECTION 2. Authorization of Bonds and Purpose of Issuance. For the purpose of providing the funds required to pay the Costs of the Project, to provide for original issue discount or premium, if any, and to pay all costs incidental thereto and to the issuance of the Bonds, the City hereby authorizes and determines to issue and sell the Bonds in the aggregate principal amount of not to exceed $3,730,000. The Bonds shall be designated "City of Seward, Alaska General Obligation Library /Museum Bonds 20XX." The City has ascertained and hereby determines that each and every matter and thing as to which provision is made in this resolution is necessary in order to carry out and effectuate the purpose of the City in accordance with the Constitution and the statutes of the State of Alaska and to incur the indebtedness and issue the Bonds as referred to in Proposition 3. 4 143 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 SECTION 3. Obligation of Bonds. The Bonds shall be direct and general obligations of the City and the full faith and credit of the City are hereby pledged to the payment of the principal of and interest on the Bonds. The City hereby irrevocably pledges and covenants that it will levy and collect taxes upon all taxable property within the City without limitation as to rate or amount, in amounts sufficient, together with other funds legally available therefor, to pay the principal of and interest on the Bonds as the same become due and payable. SECTION 4. Date, Maturities, Interest Rates, and Other Details of Bonds. The Bonds shall be dated as of the date of delivery, shall be in the denomination of $5,000 or any integral multiple thereof, or such other date and denominations as may be determined by the Finance Director, and shall be numbered separately in such manner and with any additional designation as the Registrar deems necessary for purposes of identification. The Finance Director is authorized to determine whether to issue the Bonds in one or more series or subseries in one or more of the following categories: Tax - Exempt Bonds, Build America Bonds, Recovery Zone Economic Development Bonds, or such other form as may be authorized by the Code, or as any combination thereof. The Bonds shall bear interest from the date thereof, payable on February 1, 2012, and semiannually thereafter on August 1 and February 1 of each year or such other dates as may be determined by the Finance Director. Interest shall be computed on the basis of a 360 -day year composed of twelve 30 -day months. The Finance Director is authorized to fix and determine the maturity dates and the rate of interest on each principal installment of the Bonds, provided that (i) no rate of interest on a principal installment shall exceed the rate of interest on the corresponding maturity of the bonds of the Bond Bank issued to provide funds to purchase the Bonds; (ii) the true interest cost of the Bonds (blended in the case of multiple series or subseries) shall not exceed 6% unless approved by resolution of the City Council; and (iii) all of the Bonds shall mature on or before December 31, 2030. SECTION 5. Place and Medium of Payment. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America which, on the respective dates of payment thereof, shall be legal tender for the payment of public and private debts. For so long as all outstanding Bonds are registered in the name of the Bond Bank, payments of principal and interest thereon shall be made as provided in the Loan Agreement. In the event that the Bonds are no longer owned by the Bond Bank, payments of principal and interest on the Bonds will be made by check or draft mailed by first class mail to the Registered Owners of the Bonds at the addresses for such Registered Owners appearing on the Bond Register on the 15th day of the month preceding the payment date, provided that the final installment of principal and interest on the Bonds will be payable at the principal office of the Registrar upon surrender of the Bond. SECTION 6. Optional Redemption or Prepayment. The Finance Director is hereby authorized to establish redemption and prepayment provisions, if any, for the Bonds as set forth in the Loan 5 147 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 Agreement. SECTION 7. Form of Bond. Each Bond shall be in substantially the following form, subject to the provisions of the Loan Agreement: UNITED STATES OF AMERICA STATE OF ALASKA CITY OF SEWARD, ALASKA (A Municipal Corporation of the State of Alaska) NO. $ GENERAL OBLIGATION LIBRARY /MUSEUM BONDS 20XX REGISTERED OWNER: PRINCIPAL AMOUNT: The City of Seward, Alaska (the "City "), a home rule municipal corporation of the State of Alaska, hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or its registered assigns, the Principal Amount indicated above in the following installments on 1 of each of the following years, and to pay interest on such installments from the date hereof, payable on 1, 20XX and semiannually thereafter on the first days of and of each year, at the rates per annum as follows: Principal Interest Year Amount Rate For so long as this Bond is owned by the Alaska Municipal Bond Bank (the "Bank "), payment of principal and interest shall be made as provided in the Loan Agreement between the Bank and the City (the "Loan Agreement "). In the event that this Bond is no longer owned by the Bank, payment of principal of and interest on this Bond will be made by check or draft mailed by first class mail to the registered owner at the address appearing on the bond register of the City on the 15th day of the month preceding the payment date, provided that the final installment of principal and interest on this Bond will be payable at the office of the City Finance Director (the "Registrar ") upon surrender of this Bond. Interest shall be computed on the basis of a 360 -day year composed of twelve 30 -day months. Both principal of and interest on this bond are payable 6 £ i CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 in lawful money of the United States of America which, on the respective dates of payment thereof, shall be legal tender for the payment of public and private debts. This Bond is one of the General Obligation Library /Museum Bonds, 20XX of the City of Seward, Alaska of like tenor and effect except as to interest rate, serial number and maturity, aggregating $ in principal amount, and constituting bonds authorized for the purpose of paying the cost of the library /museum capital improvements in the City, and is issued under Resolution 2010- of the City entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA AUTHORIZING THE ISSUANCE AND SALE OF GENERAL OBLIGATION BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,730,000 TO PAY THE COSTS OF LIBRARY /MUSEUM CAPITAL IMPROVEMENTS IN THE CITY, FIXING CERTAIN DETAILS OF SUCH BONDS, AND PLEDGING THE FULL FAITH AND CREDIT OF THE CITY TO THE PAYMENT THEREOF (herein called the "Resolution "). The Bonds will be subject to redemption at the option of the City as described in the Loan Agreement. This Bond is transferable as provided in the Resolution, (i) only upon the bond register of the City, and (ii) upon surrender of this Bond together with a written instrument of transfer duly executed by the registered owner or the duly authorized attorney of the registered owner, and thereupon a new fully registered Bond or Bonds in the same aggregate principal amount and maturity shall be issued to the transferee in exchange therefor as provided in the Resolution and upon the payment of charges, if any, as therein prescribed. The City may treat and consider the person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price, if any, hereof and interest due hereon and for all other purposes whatsoever. This Bond is a general obligation of the City of Seward, Alaska, and the full faith and credit of the City are pledged for the payment of the principal of and interest on the Bond as the same shall become due. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts or things required by the constitution or statutes of the State of Alaska to exist, to have happened or to have been 7 . ir 9 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 performed precedent to or in the issuance of this Bond, exist, have happened and have been performed, and that the series of Bonds of which this is one, together with all other indebtedness of the City, is within every debt and other limit prescribed by said constitution or statutes. IN WITNESS WHEREOF, THE CITY OF SEWARD, ALASKA, has caused this Bond to be signed in its name and on its behalf by its Mayor and its corporate seal to be hereunto impressed or otherwise reproduced and attested by its Clerk, all as of the day of , 20XX. Willard E. Dunham Mayor ATTEST: Johanna Kinney, City Clerk SECTION 9. Execution. The Bonds shall be executed in the name of the City by the Mayor, and its corporate seal shall be, impressed or otherwise reproduced thereon and attested by the City Clerk. The execution of a Bond on behalf of the City by persons that at the time of the execution are duly authorized to hold the proper offices shall be valid and sufficient for all purposes, although any such person shall have ceased to hold office at the time of delivery of the Bond or shall not have held office on the date of the Bond. SECTION 10. Registration. (a) The Bonds shall be issued only in registered form as to both principal and interest. The City designates the City Finance Director as Registrar for the Bonds. The Registrar shall keep, or cause to be kept, the Bond Register at the principal office of the City. (b) The City, in its discretion, may deem and treat the Registered Owner of each Bond as the absolute owner thereof for all purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described in Section 5, but such registration may be transferred as herein provided. All such payments made as described in Section 5 shall be valid and shall satisfy and discharge the liability of the City upon such Bond to the extent of the amount or amounts so paid. 8 O0 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 (c) Bonds shall be transferred only upon the Bond Register kept by the Registrar. Upon surrender for transfer or exchange of any Bond at the office of the Registrar, with a written instrument of transfer or authorization for exchange in form and with guaranty of signature satisfactory to the Registrar, duly executed by the registered owner of its duly authorized attorney, the City shall execute and the Registrar shall deliver an equal aggregate principal amount of Bonds of the same maturity of any authorized denominations, subject to such reasonable regulations as the Registrar may prescribe and upon payment sufficient to reimburse it for any tax, fee or other governmental charge required to be paid in connection with such transfer or exchange. All Bonds surrendered for transfer or exchange shall be canceled by the Registrar. The Registrar shall not be required to transfer or exchange any Bond after the Bond has been called for redemption. (d) The City covenants that, until all Bonds have been surrendered and canceled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. SECTION 11. Mutilated, Destroyed, Stolen or Lost Bonds. Upon surrender to the Registrar of a mutilated Bond, the City shall execute and deliver a new Bond of like maturity and principal amount. Upon filing with the Registrar of evidence satisfactory to the City that a Bond has been destroyed, stolen or lost and of the ownership thereof, and upon furnishing the City with identification satisfactory to it, the City shall execute and deliver a new Bond of like maturity and principal amount. The person requesting the authentication and delivery of a new Bond pursuant to this section shall comply with such other reasonable regulations as the City may prescribe and pay such expenses as the City may incur in connection therewith. Any Bonds issued pursuant to this section in substitution for Bonds alleged to be destroyed, stolen or lost shall constitute original additional contractual obligations on the part of the City, whether or not the Bonds alleged to be destroyed, stolen or lost be at any time enforceable by anyone. SECTION 12. Disposition of the Sale Proceeds of the Bonds. The sale proceeds of the Bonds representing accrued interest on the Bonds, if any, shall be applied to pay a portion of the interest due on the Bonds on February 1, 2012 or such other date determined by the Finance Director to be the first interest payment date. The remainder of the sale proceeds of the Bonds shall be applied to pay Costs. The sale proceeds of the Bonds shall be deposited in the appropriate funds or accounts of the City for such purposes. SECTION 13. Tax Covenants. The City covenants not to take or omit to take any action that if taken or omitted would cause (i) the interest on any Tax Exempt Bond to be includable in gross income for federal income tax purposes; (ii) any Build America Bond not to qualify as a Build America Bond; or (iii) any Recovery Zone Economic Development Bond not to qualify as a 9 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 Recovery Zone Economic Development Bond. Without limiting the generality of the foregoing, the City covenants that it will make no use of the proceeds of the Bonds that would cause the Bonds to be "arbitrage bonds" subject to federal income taxation by reason of Section 148 of the Code, and that it will not take or permit any action that would cause the Bonds to be "private activity bonds" as defined in Section 141 of the Code. SECTION 14. Sale of the Bonds; Loan Agreement. The sale of not to exceed $3,730,000 aggregate principal amount of the Bonds, as provided in the Loan Agreement and this resolution, is hereby authorized and approved. The Mayor or the Finance Director are each hereby authorized to execute and deliver the Loan Agreement, and such other documents as may be necessary to effectuate issuance of the Bonds on behalf of the City. SECTION 15. Authority of Officers. The Mayor, the Finance Director, and the City Clerk are, and each of them hereby is, authorized and directed to do and perform all things and determine all matters not determined by this resolution, or to be determined by a subsequent ordinance or resolution, to the end that the City may carry out its obligations under the Bonds and this resolution. SECTION 16. Amendatory and Supplemental Resolutions. (a) The City Council from time to time and at any time may adopt a resolution or resolutions supplemental hereof, which resolution or resolutions thereafter shall become a part of this resolution, for any one or more of the following purposes: (i) To add to the covenants and agreements of the City in this resolution, other covenants and agreements thereafter to be observed, or to surrender any right or power herein reserved to or conferred upon the City. (ii) To make such provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective provision contained in this resolution or in regard to matters or questions arising under this resolution as the City Council may deem necessary or desirable and not inconsistent with this resolution and which shall not adversely affect the interest of the Registered Owner of the Bonds. Any such supplemental resolution may be adopted without the consent of the Registered Owners of any of the Bonds at any time outstanding, notwithstanding any of the provisions of subsection (b) of this section. (b) With the consent of a bond insurer, if any, or the Registered Owners of not less than 60 percent in aggregate principal amount of the Bonds at the time outstanding, the City Council may adopt a resolution or resolutions supplemental hereto for the purpose of adding any provisions to 10 e ° .L CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 or changing in any manner or eliminating any of the provisions of this resolution or of any supplemental resolution; provided, however that no such supplemental resolution shall: (i) extend the fixed maturity of any of the Bonds, or reduce the rate of interest thereon, or reduce the amount or change the date of any sinking fund installment, or extend the time of payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the owners of each Bond so affected; or (ii) reduce the aforesaid percentage of owners of Bonds required to approve any such supplemental resolution without the consent of the owners of all the Bonds then outstanding. It shall not be necessary for the consent of the Registered Owners of the Bonds under this subsection to approve the particulars of any proposed supplemental resolution, but it shall be sufficient if such consent approves the substance thereof. (c) Upon the adoption of any supplemental resolution under this section, this resolution shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations under this resolution of the City and all Registered Owners of outstanding Bonds shall thereafter be subject in all respects to such modification and amendment, and all the terms and conditions of the supplemental resolution shall be deemed to be part of the terms and conditions of this resolution for any and all purposes. (d) Bonds executed and delivered after the execution of any supplemental resolution adopted under this section may bear a notation as to any matter provided for in such supplemental resolution, and if such supplemental resolution shall so provide, new Bonds modified so as to conform, in the opinion of the City, to any modification of this resolution contained in any such supplemental resolution may be prepared by the City and delivered without cost to the Registered Owner of the Bonds then outstanding, upon surrender for cancellation of such Bonds in equal aggregate principal amounts. SECTION 17. Defeasance. In the event money and /or non - callable Government Obligations maturing at such ties and bearing interest to be earned thereon in amounts sufficient to redeem and retire any or all of the Bonds in accordance with their terms are set aside in a special trust account to effect such redemption or retirement and such moneys and the principal of and interest on such Government Obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made to pay or secure the payment of the principal and interest on such Bonds and such Bonds shall be deemed not to be outstanding. SECTION 18. Designation of Tax - Exempt Bonds as Qualified Tax Exempt Obligations. 11 1.53 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 Depending on the final structure of the Bonds and the principal amount of any Tax - Exempt Bonds the series of Tax - Exempt Bonds, if any, plus the portion of the proceeds of the Bond Bank Reserve Fund Obligations that are or may be used with respect to the series of Tax - Exempt Bonds, may be designated by the Finance Director as "qualified tax exempt obligations" in accordance with Section 265(b)(3) of the Code, and the City hereby covenants that during the calendar year 2011 it shall not issue or designate as "qualified tax- exempt obligations" under Section 265(b)(3) of the Code an aggregate principal amount of tax - exempt obligations (other than tax exempt obligations described in Section 265(b)(3)(C)(ii) of the Code) exceeding $30,000,000. SECTION 19. Miscellaneous. (a) All payments made by the City of, or on account of, the principal of or interest on the Bonds shall be made on the several Bonds ratably and in proportion to the amount due thereon, respectively, for principal or interest as the case may be. (b) No recourse shall be had for the payment of the principal of or the interest on the Bonds or for any claim based thereon or on this resolution against any member of the City Council or officer of the City or any person executing the Bonds. The Bonds are not and shall not be in any way a debt or liability of the State of Alaska or of any political subdivision thereof, except the City, and do not and shall not create or constitute an indebtedness or obligation, either legal, moral or otherwise, of said State or of any political subdivision thereof, except the City. SECTION 20. Continuing Disclosure. The City acknowledges that, under Rule 15c2 -12 of the Securities and Exchange Commission (the "Rule ") the City may now or in the future be an "obligated person" with respect to the Bond Bank bonds. In accordance with the Rule, and as the Bond Bank may require, the City shall undertake to provide certain annual financial information and operating data as shall be set forth in the Loan Agreement. Notwithstanding any other provision of this Resolution, failure of the City to comply with the continuing disclosure obligations shall not be considered a default of the City's obligations under this Resolution or the Bonds; however the owner of any Bond may bring an action for specific performance, to cause the City to comply with its continuing disclosure obligations under the Rule. SECTION 21. Severability. If any one or more of the provisions of this resolution shall be declared by any court of competent jurisdiction to be contrary to law, then such provision shall be null and void and shall be deemed separable from the remaining provisions of this resolution and shall in no way affect the validity of the other provisions of this resolution or of the Bonds. 12 1 5 4 CITY OF SEWARD, ALASKA RESOLUTION 2010 -129 SECTION 22. Effective date. This resolution shall take 30 days following adoption and posting. PASSED AND APPROVED by the City Council of the City of Seward Alaska, Alaska, this 13 day of December, 2010. THE CITY OF SEWARD, ALASKA William E. Dunham, Mayor ATTEST: Johanna Kinney, CMC City Clerk 13 155 Council Agenda Statement r 4 0% sett, Meeting Date: December 13, 2010 u ��'�`��'o From: City Manager Phillip Oates gtnsroP Agenda Item: Providing for the issuance of not to exceed $3,730,000 in general obligation bonds of the City to finance a portion of the construction of a combined library /museum capital improvement project BACKGROUND & JUSTIFICATION: In 2003, Seward Mayor Edgar Blatchford proposed developing a community centered project in the Centennial year of Seward's founding to be completed in 2012, the 100 anniversary of the incorporation of Seward. A new combined library museum was selected to be the embodiment of the community's pride by preserving history and providing access to present and future knowledge for the residents of Seward, the outlying areas and all seasonal workers and visitors. The Seward Community Library Museum Building Committee (SCLMBC), the City of Seward, the Seward Community Library Association (SCLA) and the Resurrection Bay Historical Society (RBHS) are working together to complete this project. In a report to City Council on November 29, 2010, RISE Alaska and ECl/Hyer estimated the remaining capital construction costs for the library museum project to be $10,294,560. In 2009, Seward voters approved issuing not to exceed $5 million in general obligation bonds, with the caveat that the bonds would not be issued until the City obtained additional funding through contributions and grants for the remainder of the costs of the project. Private foundation and individual donations and government funding has been committed to cover the majority of the costs. City Administration and project managers have estimated that $3.73 Million of general obligation bonds will be needed to complete the project as currently projected. INTENT: Authorize the issuance of not to exceed $3.73 million general obligation bonds to finance a portion of the capital costs for the library /museum project. 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: The annual debt service for a 25 -year $3.73 Million General Obligation Bond at an interest rate of 4.5% is approximately $249,000 per year. The presumed rate of interest on these bonds is an estimate based on today's market conditions, but is subject to change based on a number of factors including whether the federal government extends the Build America Bond program (which could potentially reduce the effective interest rate), whether municipal bonds continue to find favor in the financial markets, and the overall timing of the proposed bond issue. Any increase in interest rate on the bonds beyond 4.5% will raise the interest costs on the bonds. By way of example, an increase of 50 basis points (to 5.0 %) would raise the annual interest costs an average of $14,000 per year. This resolution does not take into consider the additional operating costs of the new library /museum, estimated to be approximately $260,000, for which there is not yet an identified source of revenue to pay. The issuance of general obligation bonds reduces the City's future 1 j o CITY OF SEWARD RESOLUTION 2010 - financial flexibility to obtain capital financing for critical infrastructure needs. There have been critical capital needs identified in the enterprise funds — especially in the electric utility — and there are no reserves available to meet those needs in the short or long term. Combined with the lack of political will to increase enterprise fund rates to a level necessary to cover those infrastructure needs, it is not unlikely that the General Fund could be called on to meet emergency needs in the City's enterprise funds. This is particularly true in the electric enterprise fund, where cash reserves are expected to be depleted in 2012, with an insufficient rate structure to replenish those reserves. In 2009, the City did not meet the bond coverage requirements for the harbor enterprise fund and the electric enterprise fund, but was able to meet the debt service payments required on all City bonds. This is a warning sign which requires tangible budget modifications in order to meet future coverage requirements. Finally, the City is undertaking the transition from a hospital -based clinic to a community health center (CHC), which is intended to provide long -term cost savings to the overall City- funded healthcare system. In the short-term, the City reserves will be utilized to cover start-up costs for the new center (estimated at $500,000), and in the long -term, the CHC should improve the financial condition of the healthcare system. However, recent State reimbursement rate estimates for the long -term care facility have come in lower than anticipated, which has the potential to adversely impact the ability of Seward Mountain Haven to fully cover debt and operating costs of the long -term care facility. It is too soon to know the magnitude of these potential changes on the finances of the overall City healthcare system. Approved by Finance Department ATTORNEY REVIEW YES RECOMMENDATION: Council approve Resolution 2010- 12-9, authorizing the issuance of not to exceed $3,730,000 in general obligation bonds of the City to finance a portion of the construction of a combined library /museum capital improvement project. 157 FORM OF LOAN AGREEMENT THIS AGREEMENT, dated as of the day of 20 between the Alaska Municipal Bond Bank (the 'Bank "), a body corporate and politic constituted as an instrumentality of the State of Alaska (the "State ") exercising •ublic and essential governmental functions, created pursuant to the provisions of Cha. 85, Title 44, Alaska Statutes, as amended (the "Act "), having its principal place of busiv k ' , ' Alaska, and the [City] [Borough], Alaska, a duly constituted [Ci , ® " :' Hof the State ("[City] [Borough]"): } WITNESSE WHEREAS, pursuant to the Act, the Bank is a its © e "Loan" "Loans") p � F ake to � �� ®� oy (the Loan or Loans" to governmental units; and w WHEREAS, the [City] [Borough] is a Gove ` e�tal Uni �f.'p the General Bond Resolution of the Bank hereinafter menfia ` . . r suant_ a�� ct�is authorized to accept a Loan from the Bank to be evidenced b i „t fc�ipal bond WHEREAS, the [City] [Borough] desires t_ rl r e . a ,; , ,from the Bank in the amount of not to exceed $ and hasp :®m= • ;a plittication to the Bank for a Loan in the amount of not to 6710 $ " -fir a h rt [City] [Borough] has duly authorized the issuance of its � f l stered Loo s to t e`aggregate principal amount of $ (the "Munici „ t d is o k e ) which bona is� tobe purchased by the Bank as evidence of the Loan in accord Of-with this Agreement; and WHE e S 4 ••li cati944,13A [City] [Borough] contains the information requestedlb yth �; d { W to . ?1to o1 the issuance of bonds of the Bank in order to obtain from tim i e~ money WI:.! tl i to make Loans, the Bank has adopted the General Oblig " ®q ®k 2esolu 4.1i* Iy 13, 2005, as amended August 19, 2009 (the "General Bond R o ®rt " • no ' ..i'.° esolution No. 20 - approved on _ , 2011 (together - d Resolution, the "Bond Resolution "), authorizing the making of s u-ch•o f City] [Borough] and the purchase of the Municipal Bond. NOW, THE the parties agree: 1. The Bank hereby makes the Loan and the [City] [Borough] accepts the Loan in the aggregate principal amount of $ . As evidence of the Loan made to the [City] [Borough] and such money borrowed from the Bank by the [City] [Borough], the [City] [Borough] hereby sells to the Bank the Municipal Bond in the principal amount, with the principal installment payments, and bearing interest from its date at the rate or rates per annum, stated in Exhibit A appended hereto. For purposes of this Loan Agreement, the �_ %) interest on the Municipal Bond will be computed without regard to the provision in Section 7 hereof for the [City] [Borough] to make funds available to the Trustee acting under the General Bond Resolution for the payment of principal and interest due at least seven (7) business days prior to each respective principal and interest payment date. 2. The [City] [Borough] represents that it has duly adopted or will adopt all necessary ordinances or resolutions, including [Ordinance] [Resolution] No. , adopted on _, 20_ (the "[City] [Borough] [Ordinance,Resolution] "), and has taken or will take all proceedings required by law to enable it$ 1 ' 4 ' a into this Loan Agreement and issue its Municipal Bond to the Bank and that t 4 n . � al Bond will constitute [a general obligation bond, secured by thefull faith a e a ] [a revenue bond, a special and limited obligation] of the [City] [rough], duly hi d by [City's] [Borough's] [Ordinance] [Resolution]. , * ` t,� 3. Subject to any applicable legal limitation 3 :; t aunts to be p `"` ® the [City] [Borough] pursuant to this Loan Agreement re rese =`t n® , ' d ue on its u nici al Bond (the "Municipal Bond Interest Payments ") shall be rco ®' a ® p r �. .. th e same rate or rates of interest borne by the corresponding matur of the' d off© As ol d gy the Bank in order to obtain the money with which to makil e Loa . and to -p u r c i s a the Municipal Bond (the "Loan Obligations") and shall be p he [Cit [Boro at`le seven (7) business days before the interest a me t da so ast rovide funds sufficient to pay �.P interest as the same becomes due on the Loan Obtigajion 4 i 4. The amounts to be by th e [C ty] [Bugh] pursuant to th Loan Agreement representing principa(d eon its M unicip a l Be Bo nd oro (the "Municipal Bond Principal Payments"), shall be paid at I even (7) business days`before the payment date stated in the Municipal Bond so as top funds sUiiibierif to pay the principal of the Loan Obligations as the same matures based upon the maturity schedule stated in Exhibit A appended hereo 5 , fn t. e = e t` �t a mounts�referred to in Sections 3 and 4 hereof to be paid by the [CJty] [Bor purl , nt t this Loan i greement are not made available at any time specifi herein, the [f:y orou h a rees that any mone a able to it by any g Y Y P Y Y Y department or agency of t S tate may be withheld from it and paid over directly to the Trustee, acting under theGe4ral Bond Resolution, and this Loan Agreement shall be full warrant, aUthS"rity and ction make such payment upon notice to such department or agency by the y Ban k , with;a C provided to the [City] [Borough], as provided in the Act. mow 6. In the e Loan Obligations have been refunded and the interest rates the Bank is required to pay`on its refunding bonds in any year are less than the interest rates payable by the [City] [Borough] on the Municipal Bond for the corresponding year pursuant to the terms of the Municipal Bond, then both the Municipal Bond Interest Payments and the Municipal Bond Principal Payments will be adjusted in such a manner that (i) the interest rate paid by the [City] [Borough] on any principal installment of the Municipal Bond AMBB /General Obligation Bonds, 20_ Series Loan Agreement I: \Dots \37420001 \Fonn Documents \Form of Loan Agreement.wpd Page 2 1 5 9 is equal to the interest rate paid by the Bank on the corresponding principal installment of the Bank's refunding bonds and (ii) on a present value basis the sum of the adjusted Municipal Bond Interest Payments and Municipal Bond Principal Payments is equal to or Tess than the sum of the Municipal Bond Interest Payments and Municipal Bond Principal Payments due over the remaining term of the Municipal Bond as previously established under this Loan Agreement. In the event of such a refunding of Loan Obligations, the Bank shall present to the [City] [Borough] for the [City's] [Borough's] approval, a revised schedule of principal installment amounts and interest rates for the Municipals nd If approved by the [City] [Borough] the revised schedule shall be attached h - k exhibit A and incorporated herein in replacement of the previous Exhibit Al . tip` '. principal installment amounts and interest rates. �* 7. The [City] [Borough] is obligated to pay 1, < e ref . 9 o ch Fees and Charges actually collected from the [City [®XhaII b. °1° 9 a - sufficient, together with the [City's] [Borough's] Allocabf�3C�� g ,, (as defi ary� b''of t� other money available therefor under the provisions o0( '-solution, °a i` 'other money available therefor, including any specific grant-. i 4t7* ( ,, nited States of America or any agency or instrumentality ther f_ ® , th ` iRcw 0 y agency or instrumentality thereof and amounts appliekt - ,o : am ogg ferred to the Operating Fund pursuant to Section 606 of the., e e * n Resol q - 1 (a) Borou h's Allocable to pay, as the same becorrtd[ [ 9 ] P roportion of the Administrative Expenses'of the Bah n £# < � (b) to pay, as t same becor e, the [City's] [Borough's] Allocable Proportion of the fees and* ex enses of the ruste and paying agent for the Loan Obligations. "�„ x Theme . 's �a,o y ,o® Fgh e, s] Allocable Proportion as used herein shall mean the proportiat� ® , totals r'° ry'' rn respect in res e to which the term is used det = 9 t - r e rinci al amount of the Municipal Bond outstanding bears to,tf * al Loan a O anding�to.all'Governmental Units under the General Bond Rye ® t certified b payable � k. The waiver by the Bank of any pursuant � . .� � _ tY Y fees P Y able p to t 1 ® 1 shall n s ' n Lute a subsequent waiver thereof. 8.: [ y ] oroygh] is obligated to make the Municipal Bond Principal Payments se � ��� Ban The first such Municipal Bond Principal Payment is due at least seven (7) busjhE sS days prior to the date indicated on Exhibit A appended hereto, and thereafter on the anniversary thereof each year. The [City] [Borough] is obligated to make the Municipal Bond Interest Payments scheduled by the Bank on a semi - annual basis commencing seven (7) business days prior to the date indicated on Exhibit A appended hereto, and to pay any Fees and Charges imposed by the Bank within 30 days of receiving the invoice of the Bank therefor. AMBB /General Obligation Bonds, 20_ Series Loan Agreement I:\Docs \37420001 \Form Documents \Form of Loan Agreement.wpd Page 3 163 9. The Bank shall not sell and the [City] [Borough] shall not redeem prior to maturity any portion of the Municipal Bond in an amount greater than the Loan Obligations which are then outstanding and which are then redeemable, and in the event of any such sale or redemption, the same shall be in an amount not Tess than the aggregate of (i) the principal amount of the Municipal Bond (or portion thereof) to be redeemed, (ii) the interest to accrue on the Municipal Bond (or portion thereof) to be redeemed to the next redemption date thereof not previously paid, (iii) the applicable premium, if any, payable on the Municipal Bond (or portion thereof) to be redeemed, and (iv) cost and expenses of the Bank in effecting the redemption of the Municipal Bond (Q ion thereof) to be redeemed. The [City] [Borough] shall give the Bank at least 50 da o ice o intention to redeem its Municipal Bond. 5T A In the event the Loan Obligations with respec , al r `darntl ':n pr to maturity of such Municipal Bond is being made ha f and e r u ding bonds of the Bank issued for the purpose of refunding' ®.Ilgatlons were,issued in a principal amount in excess of or less than the princ . 'kof, the Municipal Bond remaining unpaid at the date of issuance of such refund 81E14 t e amount which the [City] [Borough] shall be obligated to pay or the B s hall receiv , der item (i) above shall be the principal amount of such refundjng ®0. ® tanding i � � � In the event the Loan Obligations h. refunded and the interest the Bank is required to pay on the refunding bonds is Ie s than n est4 Bank was required to pay on the Loan Obligations, the a ount whichli [ ityl Borough] shall be obligated to pay or the Bank shall receive under iit m (ii) aboveys eIJ I e t �e amount of interest to accrue on such refunding bonds outsanding In the event the Loan Obligations have been r the amount which the [City] [Borough] shall be obligated to pa or Bank shall receive under item (iii) above, when the refund d o e n; Igations ar to redeemed, shall be the applicable premium, if any, on the Loan O Iigations t be,r Notting in this Section shall be cobsfrued as preventing the [City] [Borough] from refunding t i,.eMunicipa B d n exchange for a new Municipal Bond in conjunction with a refundi}ngotthe Loan O ligatnns. 10 Sihiultaneouslywith the delivery of the Municipal Bond to the Bank, the [City] [Borough] shall furnish to thelBank evidence satisfactory to the Bank which shall set forth, among other things,;, that the Municipal Bond will constitute a valid and binding general obligation of the [City] [Borough], secured by the full faith and credit of the [City] [Borough]. 11. Invoices for payments under this Loan Agreement shall be addressed to the [City] [Borough], Attention: , , , Alaska 99 The [City] [Borough] shall give the Bank and the corporate trust office of the Trustee under AMBB /General Obligation Bonds, 20_ Series Loan Agreement I:\Docs \37420001 \Form Documents \Form of Loan Agreement wpd Page 4 tO1. the General Bond Resolution at least 30 days' written notice of any change in such address. 12. The [City] [Borough] hereby agrees that it shall fully fund, at the time of loan funding, its debt service reserve fund (in an amount equal to $ ) which secures payment of principal and interest on its Municipal Bond and that such fund shall be held in the name of the [City] [Borough] with the Loan Trustee. 13. The [City] [Borough] hereby agrees to keep and retain s tmt e_ • ate six years after the retirement of the Municipal Bond, or any bond issue e a Municipal Bond, or such longer period as may be required by the [ =7 ' _] [Boir© o rd retention policies and procedures, records with respect to they s ment, e a d t d use of the proceeds derived from the sale of its Municipal t 1 ding w+w tton, records, schedules, bills, invoices, check registers, [ ®c =ecks :tie u;®®® tng documentation evidencing use of proceeds, and inve'. ` d /or reest = -; � of P [City] [Borough] agrees d e inv s sen proceeds. The Ci Borou h a rees that all records re® preceding sen ence shall be made available to the Bond Bank upon request $s 14. Prior to payment of the amount of £h Lc i or any portion thereof, and the delivery of the Municipal Bond to the Bank or its des'gn e, the Bank' shall` have the right to cancel all or any part of its obligations hereunder t (a) Any representation, warranty or other statement made by the [City] [Borough] to the Bank in connection with its appcattonto the4Bank for a Loan shall be incorrect or incomplete in any, materlallrespect r (b) The [Cit [Bor has violated commitments made by it in the terms of this Loan Agreement. (c)z #l' s i a cial posit onof: the [City] [Borough] has, in the opinion of the Bank suffe 00 rnafen i. y verse change"between the date of this Loan Agreement and theseheduled�tlmde e oft �e; mot the Municipal Bond to the Bank. 1 The obligati eo fti•e Bank under this Loan Agreement is contingent upon delivery of it General O It tion Bonds, 20_ Series (the "20_ Series Bonds ") a nd receipt of the roceeds thereof. 16. Thef[City ( Borough] agrees that it will provide the Bank with written notice of any default in covenants, under the [City's] [Borough's] [Ordinance] [Resolution] within 30 days from the date`thereof. 17. The [City] [Borough] shall not take, or omit to take, any action lawful and within its power to take, which action or omission would cause interest on the Municipal AMBB /General Obligation Bonds, 20_ Series Loan Agreement I: \Dots \37420001 \Form Documents \Form of Loan Agreement.wpd Page 6.7_ Bond to become subject to federal income taxes in addition to federal income taxes to which interest on such Municipal Bond is subject on the date of original issuance thereof. The [City] [Borough] shall not permit any of the proceeds of the Municipal Bond, or any facilities financed with such proceeds, to be used in any manner that would cause the Municipal Bond to constitute a "private activity bond" within the meaning of Section 141 of the Code. The [City] [Borough] shall make no use or investment o ti :. 'roceeds of the Municipal Bond which will cause the Municipal Bond t be an ' . i •` `bond" under Section 148 of the Code. So long as the Municio d is ® the [City] [Borough], shall comply with all requirements of said 148 a I • bons of the United States Department of Treasury issued t - ' ® the that such requirements are, at the time, applicable and in effect 4;: yo ough] ® tiify and hold harmless the Bank from any obligation of th `: toma:rebafe payments to the United States under said Section 148 al n ® e, [City s] [Borough's] use or investment of the proceeds of the Municipal Bon 18. The [City] agrees t [ ty] ( Borou g h J g rees h at ®. of the Gwernrnental Units that has a ten percent or greater amount of o o ®®. ds held by'the.Bank under its General Bond Resolution, it shall execute e continuing ® losure agreement for purposes of Securities and Exchange Commission Ry e 1 5c o e '' I , dopted un der the Securities and Exchange Act of 1934, and provide £ the Bank ` clu s a in future official statements, upon request, financial information nerally of t i . c tided in Appendix D, under the heading "Summaries of Borrowers RI pµresent o a ®v o ore of Outstanding Principal of Bonds Issued Under the 200'5 General Bond Resin i fl to the Official Statement and attached hereto as Exhibit B.. f > ; R . 19. If any provis of th Loa Agreement shall for any reason be held to be invalid or unenforcea e the invalidi or u e forceability of such provision shall not affect any of the,remaining iiisions of this}L` Agreement and this Loan Agreement shall be construed and enforced's if such invalid or unenforceable provision had not been contained herein. 20 This L oan Ag eement may be executed in one or more counterparts, any of which shall be regarded f'or all purposes as an original and all of which constitute but one and the same instrument; , Each party agrees that it will execute any and all documents or other instruments, a n'd�t'akesuch other actions as are necessary, to give effect to the terms of this Loan Agreement '? 21. No waiver by either party of any term or condition of this Loan Agreement shall be deemed or construed as a waiver of any other term or condition hereof, nor shall a waiver of any breach of this Loan Agreement be deemed to constitute a waiver of any AMBB /General Obligation Bonds, 20_ Series Loan Agreement I: \Dots \37420001 \Form Documents \Form of Loan Agreement.wpd Page 6 163 subsequent breach, whether of the same or of a different section, subsection, paragraph, clause, phrase or other provision of this Loan Agreement. 22. In this Loan Agreement, unless otherwise defined herein, all capitalized terms which are defined in Article I of the General Bond Resolution shall have the same meanings, respectively, as such terms are given in Article I of the General Bond Resolution. 23. This Loan Agreement merges and supersedes III, i® •=negotiations, representations and agreements between the parties hereto rel t n 1 i sg sect matter hereof and constitutes the entire agreement between ies a et' r ®ect thereof. IN WITNESS WHEREOF, the parties hereto f t _Y Y and year first above written. ALASKA MU -t I - ��1`v D BANK Y' DEVGE ITCHEL „art Eke rector RCS H [CI TY] ; 1�� ] LASKA By: Its: spa w�� z AMBB /General Obligation Bonds, 20_ Series Loan Agreement I: \Dots \37420001 \Form Documents \Form of Loan Agreement.wpd Page 7 EXHIBIT A [City] [Borough], Alaska [General Obligation] [Revenue] Bond, 20_[] ( "20_ Series A Municipal Bond ") Due Principal Interest 1 Amount Principal installments shall be payable on 1 in each of the years, and in the amounts set forth above. Interest on the 20 Series A Munk pal Bond shall be payable on 1, 20_, and thereafteon :;;:f, and 1 of each year. Prepayment Provisions: The 20 Series A Municipal Bond is not subject to prepayment prior to maturity. AMBB /General Obligation Bonds, 20_ Series Loan Agreement - Exhibit A Page A - I: \Dots \37420001 \Form Documents \Form of Loan Agreemenl.wpd [City] [Borough], Alaska [General Obligation] [Revenue] Bond 20 [Taxable Recovery Zone Economic Development Bond – Direct Payment] [Taxable Build America Bond - Direct Payment] ( "20 Series B Municipal Bond ") Due Principal Interest 1 Amount Rate Principal installments shall be payable on - lead of the years, and in the amounts set forth above. Interest on the 20_ Series°B°Munictpal Bond shall be payable on 1, 20 and thereafter on 41 and A4:4s t1 of each year. Prepayment Provisions: - Optional Prepayment. The 20 Series B Municipal Bond principal payments due on or after 1, 20 are sr ect to prepayment in whole or in part at the option of the [City] [Borough, n a „ 1 a a at �on or after 1, 20 at a price of 100% of the principal nt tF amou of�.p; b� ® ; ,pad, a plus accrued interest to the date of prepayment. E raoi d a r.0 • tional Pre ® e nt. [FOR USE WITH BAB'S /RZEDB's] The 20 Series B c13 ©r d is sub e © prepayment at the option of the [City] [Borough], in whole or in pa , i , terial a u e change has occurred to Section 54AA or 6431 of the Code (as such Secti; Sections wer addd by Section 1531 of the American Recovery and Reinvestment ct o p2 a 19, pertaining to "Build America Bonds) or to Section 1400U-2 of the Code (as suctiSectioon: was added by Section 1401 of the American Recovery and Reinvestment Act of 2009, pertaining to "Recovery Zone Economic Development Bonds ") pursuant to which the [City's] [Borough's] cash subsidy payment from the United States Treasury in respect of the [City's] [Borough's] 20 Series B Municipal Bond principal payment is reduced or eliminated. In the event the [City] [Borough] exercises such option, the 20 Series B Municipal Bond principal payment(s) will be prepaid at a prepayment price equal to the greater of (1) 100% of the principal amount of the 20 Series B AMBB /General Obligation Bonds, 20_ Series Loan Agreement - Exhibit A Page A - I: \Dots \37420001 \Form Documents \Form of Loan Agreement. I 6 Municipal Bond principal payment to be prepaid; or (2) the sum of the present value of the remaining scheduled payments of principal and interest on the 20 Series B Municipal Bond to be prepaid, not including any portion of those payments of interest accrued and unpaid as of the date on which the 20_ Series B Municipal Bond principal payment is to be prepaid, discounted to the date on which the 20_ Series B Municipal Bond principal payment is to be prepaid on a semi - annual basis, assuming a 360 -day year consisting of twelve 30 -day months, at the Treasury Rate plus 100 basis points (1.00 %); plus, in each case, accrued interest on the 20_ Series B Municipal Bond principal payment to be prepaid to the prepayment date. "Treasury Rate" means, with respect to any e xtrao di o do ` r ry p y ��.t'��l�arY p - ����epayment date � for a particular 20_ Series B Municipal Bond principal : ayment, the fate: per annum, expressed as a percentage of the principal amount, i ° t® h e se`rr tannual equivalent yield to maturity or interpolated maturity of the Comex:, e tI ury Issue, truncated to the fifth decimal, assuming that the Comparable real f cue is purchased on prepayment date for a price equal to the Compara Treas . r c "Comparable Treasury Issue" means, wit "respect to a e' optional prepayment date for a particular 20_ Series 0 C cipal Bond pr inc ipal- :pa yment, the United States Treasury security or securities ''. I� '{as an a ctual or` int maturity comparable to the remaining average life gi x t a 20$ Sene B Mun icipal Bond principal payment to be redeemed, and that wou Id be tutilized in' ac"crd cewith customary financial practice in pricing new issues of debt secu comparrabe maturity to the remaining average life of the 20 Series B�Municipal B d rincipat payment to be prepaid. "Comparable Treasury Pnee" nneans, with respect to any extraordinary prepayment date for a particular 20_ Series, B Municipal Bond principal payment, the price of the Comparable Treasury Issue, as de ermined by an investment banking firm or financial advisory firm retaiiiidg by the Bank • � k M - . AMBB /General Obligation Bonds, 20_ Series Loan Agreement - Exhibit A Page A - I: \Docs \37420001 \Fonn Documents \Form of Loan Agreement.wpd 167 EXHIBIT B �a1 � AMBB /General Obligation Bonds, 20 Series Loan Agreement - Exhibit B Page B -1 I: \Does \37420001 \Form Documents \Form of Loan Agreeme nt 16 City of Seward, Alaska City Council Minutes November 22, 2010 Volume 38, Page CALL TO ORDER The November 22, 2010 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Willard E. Dunham. OPENING CEREMONY Police Chief Tom Clemons led the pledge of allegiance to the flag ROLL CALL There were present: Willard E. Dunham presiding and Marianna Keil Tom Smith Vanta Shafer Ristine Casagranda Bob Valdatta comprising a quorum of the Council; and Phillip Oates, City Manager Jean Lewis, City Clerk ABSENT — Jean Bardarson CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING John Sliwinski of Plum Tree, Inc introduced himself and said he was looking forward to working with the City of Seward on the door and window replacement project. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Shafer/Keil) Approval of Agenda and Consent Agenda Motion Passed Unanimous • The clerk read the following approved consent agenda items: The November 8, 2010 Regular City Council Meeting Minutes Were Approved. Ordinance 2010 -008, An Ordinance Of The City Council Of The City Of Seward, Alaska Establishing The Seward Community Health Center Board Of Directors. (Introduced and set for public hearing on December 13, 2010) Resolution 2010 -110, Authorizing The City Manager To Enter Into A Contract With 169 City of Seward, Alaska City Council Minutes November 22, 2010 Volume 38, Page Shoreside Petroleum To Deliver Heating And Diesel Engine Fuel, Gasoline, Lubricants, Cleaning Solvents And Antifreeze During 2011. Resolution 2010 -111, Authorizing The City Manager To Enter Into A Construction Agreement With Plum Tree, Inc. For An Amount Not -To- Exceed $31,440 Funded By The EECBG Grant For The Window And Door Replacement For The Fire Hall And Public Works Buildings. Resolution 2010 -112, Appropriating Funds In The Amount Of $51,823 From The Wastewater MRRF Fund To The Wastewater Enterprise Fund To Cover Excess Costs Associated With Critical Sewer Repairs. Resolution 2010 -114, Authorizing The City Manager To Purchase A Truck With A Sander From Alaska Sales And Service For An Amount Not -To- Exceed $37,751 From The Motor Pool Service Fund And Appropriating Funds. Resolution 2010 -117, Approving An Employment Agreement With Johanna Kinney For City Clerk Services. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards A Library Birthday Proclamation was read. A Congratulations Certificate Was Presented to High School Swimmer Ryan O'Leary. City Manager's Report, City Manager Phillip Oates stated a purchase order for $15,000 was issued to CRW for the North Seward Water Tank Site Survey on 11/16/2010 through the Public Works Department. November 27, 2010 was, the first Small Business Saturday to support the small businesses in town and Oates encouraged everyone to get out and support Seward's small businesses. December 14, 2010 was the next town meeting on economic development. He encouraged all to come out as well In the Harbor, progress continued on the installation of Z Float in the NE harbor, the breakwater extension, and the dredging project for the cruise ship basin and approach. The Police Department would again be hosting a Citizen's Police Academy beginning in January 2011. The Seward Police Department has chosen to seek accreditation from the Alaska Law Enforcement Agency Accreditation Commission. The Sewer collection line problem at Van Buren had been solved. On the Coast Guard Relocation and Z Float Project Water Line project: Metco had completed 95% of Phase 1 and 95% of Phase 2. The City water crew was assisting with water service to X and gas floats. On the SMC Dolphin Project: Public Works was working with PND and SMC on the design phase of the dolphins and dock improvements. A report would be brought to Council when 35% design was 0 1f City of Seward, Alaska City Council Minutes November 22, 2010 Volume 38, Page complete. In the Electric Department, there would be a scheduled electric outage in Lowell Point in the near future to install the new underground line. Oates and the Police Chief were working on drafting a letter to the Governor regarding the recent credit card fraud problems that had been occurring recently. Mayoral Report, Mayor Willard E. Dunham stated it had been a busy period to report on. There were meetings with several private companies and Dunham had given several speeches on Seward successes. He chatted with the former DOT commissioner about Korean Air flying directly to Anchorage, who directed him to meet with the Anchorage International Airport Director, John Parrot. He also spoke with the Korean Consulate in Anchorage, so Dunham felt the ball was rolling on this project. The Mayor and Vice Mayor were trying to push to get a trade office established and to get our roads fixed. AML was a good session, and he was able to attend the AAMC banquet to see City Clerk Jean Lewis win the Clerk of the Year Award. The Mayor's conference spent lots of time dedicated to establishing and engaging youth ,groups. Several references were made to Seward's programs, specifically the TYC. He noted the charter quota change in the paper today; and Dunham was not sure how this would play out Other Reports, Announcements and Presentations • • " " • • • " - • : • - Cancelled due to poor road conditions NEW BUSINESS Resolution 2010 -113, Authorizing Change Order #9 To The Contract With Nelson Engineering, PC For Construction Management And Quality Control Inspection Services For The North Forest Acres Levee/Road Construction Project In An Amount Not -To- Exceed $90,500, And Appropriating Funds. Motion (Shafer/Keil) Approve Resolution 2010 -113 Oates gave a brief overview of the change order and the services needed to move forward with this project. The city did not have in house personnel to manage this project. He recommended approval. In response to Shafer, Oates thought this would be the final change order and the city would have to certify the money was spent in accordance with the grant, and some certification was required. Federal inspections were required and to ensure specifications were being met. Keil wanted to know if other engineers were out there, and why the city kept with the same person and not going out to bid. Oates did not feel comfortable switching engineers that weren't familiar with the project. Finance Director Kris Erchinger reported the bond requirements of Nelson Engineering was licensed bonded and insured, for errors and omissions, at least. She had worked with Bill Nelson for ten years on this project, and there have been 8 different alignments. City of Seward, Alaska City Council Minutes November 22, 2010 Volume 38, Page Motion Passed Unanimous Resolution 2010 -115, Authorizing The City Manager To Enter Into A Construction Agreement With Central Environmental, Incorporated For The Lowell Creek Bridge Emergency Repairs For An Amount Not -To- Exceed $66,046. Motion (Shafer/Keil) Approve Resolution 2010 -115 Oates stated this was qualifying for FEMA assistance and this project went out to bid. Central Environmental, Incorporated was the lowest qualified responsive and responsible bidder. Work was to be completed by December 8, 2010. Valdatta wondered if this was the same company already in town, Oates, confirmed they were in town on another project, which was why the price was so low. Motion Passed Unanimous Resolution 2010 -116, Amending The 2010/2011 Biennial Budget To Reflect Mid -Cycle Budget Changes, And Appropriating Funds. Motion (Shafer/Keil) Approve Resolution 2010 -116 Oates stated the changes before the council. Public Works and the Capital Budget would come before the council at a later meeting. He planned to come back one more time to the council in Motion to Amend (Keil/Shafer) Amend Resolution 2010 -116 by removing section 7, which read, "The Motor Pool Internal Service Fund 2011 Budget is hereby amended and funds are hereby appropriated, according to the specific budget modification included on the attached spreadsheet, as follows: 1) There are no changes to budgeted revenues or transfers; and 2) Net expenses are increased $120,000, for a total net decrease in budgeted net assets of $120,000." Amendment Passed Unanimous Motion to Amend (Keil/Shafer) Amend Resolution 2010 -116, section 1 as follows: "The General Fund 2011 Budget is hereby amended and funds are hereby appropriated, according to the specific modifications included on the attached spreadsheet, as follows: 1) Net revenues :..'2 City of Seward, Alaska City Council Minutes November 22, 2010 Volume 38, Page are increased by $4.96 $101,114; 2) Net expenditures are increased by $23 $50,123; and 3) Transfers -out are increased by $50,000 for a total increase in the General Fund budgeted fund balance of $991." Amendment Passed Unanimous Main Motion Passed Unanimous OTHER NEW BUSINESS INFORMATIONAL ITEMS AND REPORTS (No action required) City Financials for September 2010. At the request of Council Member Keil, Erchinger gave a brief summary of the financial reports given to council. She stated through 2010 an increase of 4.6% in revenue existed. This was a timing issue; it meant some things like state payments had come in earlier from the previous year She felt it was going to be pretty close that they were going to meet their projected budget for sales tax. They were higher from the previous year due to an increase in taxable sales, which was good news. However, the hotelmotel tax had not come in as high as expected and building permit revenues were down as well On expenditures, costs were increased through September compared to last year due to salary and benefits and purchase services such as legal fees. The Electric Enterprise Fund showed a variance, which reflected the fuel costs in expenses and on the revenue side. Providence Financials for September 2010. Letters of congratulations for Governor Parnell and Senator Lisa Murkowski. COUNCILS' COMMENTS Shafer said she was contacted by the 2nd grade teachers, who last year took their students on a Seward tour, called "This is Your Town." She hoped the mayor would be available to meet with them again this year on December 14, 2010. She congratulated Jean Lewis on her award and wished all a Happy Thanksgiving. Keil congratulated Lewis on her award and she was impressed with the SMC rack card made by the harbor. Cassagranda went to AML as a rookie and learned a lot and also congratulated Lewis on her award. Smith congratulated Lewis on her Clerk of the Year award. City of Seward, Alaska City Council Minutes November 22, 2010 Volume 38, Page Valdatta also congratulated Lewis and wished all happy holidays. Dunham stated the passing of Francis Trevethan, whose family had been active in Seward for close to 100 years and gave his condolences to the family. He wished Thanksgiving greetings to all and to enjoy and be safe. Oates stated he went to Murkowski's celebration on winning the senate seat and she asked him to thank all in Seward for their support. Secondly, he went to Ted Stevens birthday celebration, they named a mountain and an ice field after him. He planned on creating a Community Development Director /Assistant City Manager position. CITIZENS' COMMENTS Matt Gray of RBCA and Seward Wildlife Conservation Community Program stated a new goal of introducing council to a community forum regarding living with bears in Seward on December 7, 2010 at the Rae Building at 6:30 p.m. to form a panel discussion. Representatives from Seward Police Department, Fish and Wildlife, Alaska Waste and Forest Service would be in attendance. They would be discussing history and the need for increased public participation for responsible garbage control. The forum would help generate support for a grant program and hoped to find more funds for bear resistance garbage cans for the city. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS ADJOURNMENT The meeting was adjourned at 8 :25 p.m. Jean Lewis,: CMC Willard E. Dunham City Clerk " Mayor (City Seal) Memorandum Date: December 13, 2010 To: Seward City Council From: Jean Lewis, City Cle Subj: Cancellation of the December 27, 2010 City Council meeting According to City Council Rules of Procedure (Rule 2) and Seward City Code (2.10.030 A.1), the regular meetings of the City Council are held on the 2 " and 4th Mondays of each month at 7:00 p.m. We have typically always canceled the last meeting in December due to the holidays. If all business is met, it is recommended city council cancel the second regular city council meeting of December 27, 2010 in observance of the holiday season. Happy Holidays! � �• 1 i AGENDA STATEMENT of Meeting Date: December 13, 2010 :41V SFk► From Johanna Kinney, Deputy City Clerk Agenda Item: Non - objection to the restaurant eating-place qt P public convenience license renewal application for Railway Cantina BACKGROUND & JUSTIFICATION: The City Council has an opportunity to object to the request for the restaurant eating place public convenience license renewal application for Railway Cantina. The City of Seward Police Department, Fire Department, Utilities Department and the Kenai Peninsula Borough Finance Department have no objections to the liquor license renewal application for this business. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above liquor license application, then under Alaska Statutes the City of Seward will be required to assist in, or undertake the defense of its protest. RECOMMENDATION: Approval of the Restaurant Eating Place Public Convenience Liquor License renewal application for Railway Cantina. 1% o MEMORANDUM 4. SFw Date: November 22, 2010 -i� 0 ,i To: Kim Kowalski Rogers, Finance — Leases 4•"S*1' Kari Atwood, Finance — Public Utilities Chief Tom Clemons — Police Department Chief David Squires — Fire Department From: Johanna Kinney, Deputy City Clerk Subj: Verifying Compliance for the renewal application of restaurant eating place public convenience license for Railway Cantina. The following business has applied for a renewal of their restaurant eating place public convenience liquor license. Please review the following business for compliance with all utilities, lease payments, and assessments. Thank you! Name Department Status Initials Railway Cantina, Taco Dans LLC #4882 Finance/Leases • Finance/Utilities 0 •I 4o Police Chief O /e Fire Chief le `fr. 1 ; r KENA1 PENINSULA BOROUGH 144 North Binkley Street • Soldotna, Alaska 99669 -7520 PHONE: (907) 714 -2160 • FAX: (907) 714 -2388 Toll -free within the Borough: 1- 800 - 478 -4441 Ext. 2160 Email: assemblyclerk@borough.kenalak.us JOHNI BLANKENSHIP BOROUGH CLERK December 1, 2010 Ms. Dawn Holland- Williams Records & Licensing Supervisor Alcoholic Beverage Control Board rZ 5848 E. Tudor Road f Anchorage, Alaska 99507 -1286 DEC ®3 ZOfp RE: Non - Objection of License Renewal Business Name : Railway Cantina License Type ▪ Restaurant Eating Place — Public Convenience License Location City of Seward License No. ▪ 4915 Dear Ms. Holland - Williams, This serves to advise that the Finance Department has reviewed the above referenced application and has no objection to the renewal of this license. Should you have any questions, or need additional information, please don't hesitate to let us know. Sincerely, Johni Blankenship, CMC Borough Clerk JB /klr cc: Applicant City of Seward KPB Finance Department File HOMER Type: Beverage Dispensary — Tourism AS 04.11.400(d) Lic #: 4795 DBA Name: Beluga Lake Lodge Premise Address: 204 Ocean Drive Loop Owner: Beluga Lake Lodge Inc Mailing Address: 575 Sterling Hwy., Homer 99603 Type: Beverage Dispensary — Tourism AS 04.11.400(d) Lic #: 1402 DBA Name: Best Western Bidarka Inn Premise Address: 575 Sterling Hwy. Owner: Beluga Lake Lodge Inc Mailing Address: 575 Sterling Hwy., Homer 99603 KENAI Type: Golf Course Lic #: 4708 DBA Name: Kenai Golf Course Premise Address: 1420 Lawton Drive Owner: Griffin Golf Enterprises, LLC Mailing Address: PO Box 1943, Soldotna 99669 SEWARD Type: Restaurant Eating Place — Public Convenience Lic #: 4915 DBA Name: Railway Cantina Premise Address: 1401 Fourth Ave. Owner: Taco Dans LLC Mailing Address: PO Box 2284, Seward 99664 OUTSIDE CITY LIMITS Type: Package Store Lic #: 2684 DBA Name: Kasilof Riverview Lodge Premise Address: Mile 109.5 Sterling Hwy. Owner: Joanne & Joseph Browning Mailing Address: PO Box 254, Kasilof 99610 17 9 Type: Package Store Lic #: 2004 DBA Name: Hunger Hut Premise Address: Mile 26.5 Spur Hwy. Owner: Hunger Hut Inc Mailing Address: PO Box 7086, Nikiski 99635 Type: Beverage Dispensary — Tourism AS 04.11.400(d) Lic #: 537 DBA Name: Hunger Hut Bar Premise Address: Mile 26.5 Spur Hwy. Owner: Hunger Hut Inc Mailing Address: PO Box 7086, Nikiski 99365 Type: Restaurant Eating Place — Public Convenience Lic #: 4766 DBA Name: CCL Premise Address: S Caribou Lake Subdivision ASLS 80 -155 Owner: Justin & Kasie Cole Mailing Address: 33730 Justin's Ct, Homer 99603 Type: Package Store Lic #: 3738 DBA Name: W. M. Likors Premise Address: Mile 47.5 Sterling Hwy. Owner: Wildman TR Inc Mailing Address: PO Box 724, Cooper Landing 99572 Type: Brewery Lic #: 4512 DBA Name: Kassik' s Brewery Premise Address: 47160 Spruce Haven Street Owner: Kassik's Kenai Brew Stop LLC Mailing Address: 47160 Spruce Haven Street, Kenai 99611 We have received application(s) for renewal of liquor license(s) listed licensees within your jurisdiction. You are being notified as required by AS 04.11.520. Additional information concerning filing a "protest" by a local governing body under AS 04.11.480 is included. A local governing body as defined under AS 04.21.080(11) may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the board and the applicant with a clear and concise written statement of reasons in support of a protest within 60 days of receipt of this notice. If a protest is filed, the board will not approve the application 1-o AGENDA STATEMENT Meeting Date: December 13, 2010 ' 4 o S FM q From: Johanna Kinney, Deputy City Clerk * Agenda Item: Non - objection to the restaurant eating place qt sO public convenience license renewal application for Oriental Garden BACKGROUND & JUSTIFICATION: The City Council has an opportunity to object to the request for the restaurant eating place public convenience license renewal application for Oriental Garden. The City of Seward Police Department, Fire Department, Utilities Department and the Kenai Peninsula Borough Finance Department have no objections to the liquor license renewal application for this business. FISCAL NOTE: In the event the City of Seward chooses to file a protest for the above liquor license application, then under Alaska Statutes the City of Seward will be required to assist in, or undertake the defense of its protest. RECOMMENDATION: Approval of the Restaurant Eating Place Public Convenience Liquor License renewal application for Oriental Garden. MEMORANDUM r o f S Fk, Date: November 18, 2010 To: Kim Kowalski Rogers, Finance — Leases Kari Atwood, Finance — Public Utilities Chief Tom Clemons — Police Department Chief David Squires — Fire Department From: Johanna Kinney, Deputy City Clerk r --. Subj: Verifying Compliance for the renewal application of restaurant eating place public convenience license for Oriental Garden. The following business has applied for a renewal of their restaurant eating place public convenience liquor license. Please review the following business for compliance with all utilities, lease payments, and assessments. Thank you! Name Department Status Initials Oriental Garden, Kyung Ok Yoo #4882 Finance/Leases ' Finance/Utilities %Fi Police Chief (G Fire Chief 182 KENAI PENINSULA BOROUGH 144 North Binkley Street • Soldotna, Alaska 99669 -7520 PHONE: (907) 714 -2160 • FAX: (907) 714 -2388 Toll-free within the Borough: 1- 800 - 478 -4441 Ext. 2160 • 'yt Email: assemblyclerk @borough.kenai.ak.us JOHNI BLANKENSHIP BOROUGH CLERK December 6, 2010 Ms. Dawn Holland- Williams Records & Licensing Supervisor Alcoholic Beverage Control Board 5848 E. Tudor Road DEC 0 6 2010 Anchorage, Alaska 99507 -1286 r � RE: Non - Objection of License Renewal Business Name Oriental Garden License Type • Restaurant Eating Place - Public Convenience License Location City of Seward License No. 4882 Dear Ms. Holland - Williams, This serves to advise that the Finance Department has reviewed the above referenced application and has no objection to the renewal of this license. Should you have any questions, or need additional information, please don't hesitate to let us know. Sincerely, c ."—L...9_,? "- Johni Blankenship, CMC Borough Clerk JB /klr cc: Applicant City of Seward KPB Finance Department File 1 E3 Page 1 of 1 Johanna Kinney From: Jean Lewis Sent: Monday, November 08, 2010 2:21 PM To: Johanna Kinney Subject: FW: Liquor License Renewal Application Notice Follow Up Flag: Follow up Flag Status: Red Attachments: KPB Renewal Notice 11- 6- 10.doc From: Lambert, Christine C (DPS) [ mailto :christine.lambert @alaska.gov] Sent: Saturday, November 06, 2010 4:45 PM To: Jo Johnson; Jean Lewis; cityclerk©ci.soldotna.ak.us; Mary K. Klinger; ssaner @borough.kenai.ak.us Subject: Liquor License Renewal Application Notice I attach the list of renewal applications received and processed in our office to date. Please let me know if I can provide more information or be of further assistance. Thank you, Chris Christing hembgrt Licensing & Records Supervisor 'NBC Board (907) 269 -0359 phong (907) 272 -9412 fax E 4 11/18/2010 HOMER Type: Beverage Dispensary Lic #: 253 DBA Name: Alice's Champagne Palace Premise Address: 195 E Pioneer Ave. Owner: Homer Beverages Inc. Mailing Address: 1637 Stanton Ave., Anchorage 99508 SEWARD Type: Restaurant Eating Place — Public Convenience Lic #: 4882 DBA Name: Oriental Garden Premise Address: 311 Fourth Ave. Owner: Kyung Ok Yoo Mailing Address: PO Box 405, Seward 99664 SOLDOTNA Type: Beverage Dispensary Lic #: 466 DBA Name: Good Time Charlies Premise Address: 42140 Sterling Hwy. Owner: Charles L. Cunningham Mailing Address: PO Box 605, Soldotna 99669 SELDOVIA Type: Restaurant Eating Place - Seasonal Lic #: 209 DBA Name: The Mad Fish Restaurant Premise Address: 221 Main Street Owner: Isabelle's Fine Catering, Inc. Mailing Address: 35022 Forest Lane, Soldotna 99669 We have received application(s) for renewal of liquor license(s) listed licensees within your jurisdiction. You are being notified as required by AS 04.11.520. Additional information concerning filing a "protest" by a local governing body under AS 04.11.480 is included. S 5 A local governing body as defined under AS 04.21.080(11) may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the board and the applicant with a clear and concise written statement of reasons in support of a protest within 60 days of receipt of this notice. If a protest is filed, the board will not approve the application unless it finds that the protest is "arbitrary, capricious and unreasonable ". Instead, in accordance with AS 04.11.510(b), the board will notify the applicant that the application is denied for reasons stated in the protest. The applicant is entitled to an informal conference with either the director or the board and, if not satisfied by the informal conference, is entitled to a formal hearing in accordance with AS 44.62.330- 44.62 -630. IF THE APPLICANT REQUESTS A HEARING, THE LOCAL GOVERNING BODY MUST ASSIST IN OR UNDERTAKE THE DEFENSE OF ITS PROTEST. Under AS 04.11.420(a), the board may not issue a license or permit for premises in a municipality where a zoning regulation or ordinance prohibits the sale or consumption of alcoholic beverages, unless a variance of the regulation or ordinance has been approved. Under AS 04.11.420(b) municipalities must inform the board of zoning regulations or ordinances which prohibit the sale or consumption of alcoholic beverages. If a municipal zoning regulation or ordinance prohibits the sale or consumption of alcoholic beverages at the proposed premises and no variance of the regulation or ordinance has been approved, please notify us and provide a certified copy of the regulation or ordinance if you have not previously done so. Protest under AS 04.11.480 and the prohibition of sale or consumption of alcoholic beverages as required by zoning regulation or ordinance under AS 04.11.420(a) are two separate and distinct subjects. Please bear that in mind in responding to this notice. AS 04.21.010(d), if applicable, requires the municipality to provide written notice to the appropriate community council(s). If you wish to protest the application referenced above, please do so in the prescribed manner and within the prescribed time. Please show proof of service upon the applicant. For additional information please refer to 13 AAC 104.145, Local Governing Body Protest. Note: Applications applied for under AS 04.11.400(g), 13 AAC 104.335(a)(3), AS 04.11.090(e), and 13 AAC 104.660(e) must be approved by the governing body. Sincerely, SHIRLEY A. GIFFORD Director 4/ 04,4a* C lorrkfrt Christine C. Lambert Records & Licensing Supervisor 269 -0359 Christine.lambert@alaska.gov 1[.6 MEMO Meeting Date: December 13, 2010 of sett., V �i• From: Jean Lewis, City Cle C-4 ro Agenda Item: Appointments to the Port & Commerce Advisory Board BACKGROUND & JUSTIFICATION: There are currently two seats open on the Port & Commerce Advisory Board for council appointment. At their last meeting, the Board thanked Paul Tougas for his service and unanimously vacated his seat on the Board. Three citizens have submitted their applications: Bruce Jaffa, Russ Maddox and Robert Linville. Their applications are included in the packet for your review. Council will need to appoint two from the three applicants that will serve a term that expires various years in July. The mayor and council will have ballots with all three names on them. Each member will vote for not more than two. In the case of one name receiving four or more votes, that person would be appointed and the council could then vote for one from the remaining two. Pass the voted ballots to the city clerk and they will be read aloud and tallied. In accordance with Seward City Code 2.10.40 and the Seward Charter 3.5, the winning applicants must receive four of the votes to be appointed. SCC 2.30.310 states the council appoints by ballot voting. Because of limited council members and time at the December 13, 2010 meeting, a motion to postpone may be in order. If time were to run out without postponement, this item would then appear as Unfinished Business on the January 10, 2011 council agenda. RECOMMENDATION: Council conducts a vote to determine which applicants should fill the vacancies on the Port & Commerce Advisory Board with terms to expire in July. CITY OF SEWARD, ALASKA APPLICATION FOR THE DEC 01 2010 FOR THE PORT & COMMERCE ADVISORY BOA NAME: C - F A STREET ADDRESS: C ' mx ' ©1 MAILING ADDRESS: HOME TELEPHONE: c - c & 3 t BUSINESS PHONE: FAX NUMBER: LENGTH OF RESIDENCY IN THE SEWARD AREA: PRESENLY EMPLOYED AS: C - ,�- �c p„� 4.17 List any special training, education or bac ground you have which may help you as a member of the Board.���, Have you ever been involved in port operations? If so, briefly describe your involvement: i■-) c7 I am specifically interested in serving on the Port and Commerce Advisory Board because: Have you ever served on a similar board elsewhere? Yes or No If so, where? O And when? Are you available for meetings at noon (second Wednesday of each month)? 1. If appointed, are you willing to travel occasionally ?5 lZ- l- 2,0 (0 SIGNATURE DATE Bruce Jaffa P.O. Box 107 Moose Pass, Alaska 99631 r DEC 012010 Jaffa @Eag1e.PTIAlaska.net November 30, 2010 4u Mr. Phillip Oates City Manager Seward Alaska Mr. Oates, I present myself for consideration for appointment to the Seward Port and Commercial (PACAB) Board. I am a 35 year resident of the East Peninsula and very familiar with local communities and commercial development in this area. My wife, Carole and I have raised three children in the Seward schools and maintain a private home in Moose Pass, further we own and maintain several commercial properties in the City of Seward. Carole and I have developed "Jaffa Construction, Inc." as a state wide commercial business, with headquarters in. Seward and offices in Moose Pass and Fairbanks. I work as the Quality Control Manager for clients through out the State. Our company has participated in many Seward area projects and I consider the economic vitality of East Peninsula to be very important for both our companies and personnel stability. I have been in business since my youth and have knowledge of coastal communities throughout Alaska and the West Coast. I believe the local harbor and infrastructure to be a great asset for Seward and its local business'. Transportation and power are critical to Seward and statewide needs. In this regard I believe I can be a strong proponent for local projects. I am on the board of the Kenai Mountain Turnagain Arm Heritage Area and currently chair the Moose Pas j n,visory Planning Commission for the Kenai Borough. Bruce Jaffa CITY OF SEWARD, ALASKA pE p\0 APPLICATION FOR THE FOR THE PORT & COMIVIERCE ADVISORY BOARD NAME: 1 V S S u `'".,' STREET ADDRESS: 3 es A/u ct) MAILING ADDRESS: Sct- �� 2 HOME TELEPHONE: ,2-;• c ( 7& 7 BUSINESS PHONE: 47/6g- FAX NUMBER: — k\, (71 LENGTH OF RESIDENCY IN THE SEWARD AREA: c l yea VS PRESENLY EMPLOYED AS: S.Q. �ya List any special training, education or back a ound you have which may help you as a , ember of the Board. • 1 �v �v /P- ° "` A-9 j t $Sves e tq A k (, Have you ever been involved in port operations? If so, riefly describe your involvement: �� ez.3 6 - c - o I am specifically interested in serving on A,he Port and Commerce Advisory Board because: --1- rte, � t c / -f- c.re L ,o ,.v e ci we 7 e ;1 S ve fr2 Have you ever served on a similar board elsewhere? or No If so, where? yes ) O ''And when? Cc. vv- t 4-l Are you available for meetings at noon (second Wednesday of each month)? ye-3 If appointed, are you willing to travel occasionally? �S SIGN `� C- 1 / 0 `� DATE • r z) 44. city f/le c- 5i ea4 ac, l E '' o-f-ct:--. Cam,' c" • S f �tiv� C I �� -- CocM� �� cow CITY OF SEWARD, ALASKA E DEC 01 2010 APPLICATION FOR THE FOR THE PORT & COMMERCE ADVISORY BOA NAME: t )12 L 1 h STREET ADDRESS: T )' ZO \4 . P V S MAILING ADDRESS: PD. Rx V7 3 S-2__d ©f ) HOME TELEPHONE: 2 25 -3 2Q-- BUSINESS PHONE: (( `) c r ,) FAX NUMBER: 22.- - -3Z5�� LENGTH OF RESIDENCY IN THE SEWARD AREA: 3 2 PRESENLY EMPLOYED AS: ( VW' , r -t/ (IA ) 1 List any special training, education or background,you have which may help you as a member of the Board. Q 5 - ,) 1-7 • , P 2 2-C' (T C ' rya 1 n NA 11 Have you ever been involved in port operations? If so, briefly describe our involvement: A . 0 ' "VA Ar � I am specifically intere ted in serving on the P6rt and Commerce Advisory Board because: _I- * t' l _ , -, k/ list fi , p4 ' , c t,C ffi 7r�s " �c� -b_._ , 1 ` y Have you ever served on a similar board elsewhere? Yes o No If so, where? And when? Are you available for meetings at noon (second Wednesday of each month)? S If appointed, are you willing to travel occasionally? ,� SIGNA L DATE { CITY OF SEWARD r DEC 01 2 010 PORT AND HARBOR COMMERCE ADVISORY BOARD STATEMENT SUPPORTING BOB LINVILLES'S APPLICATION: Halibut prices reached record levels of over $6 per pound this season. In most species and areas, salmon prices are now at the highest levels we've seen in almost thirty years. Prince William Sound seiners enjoyed an all time record breaking catch of 67 million pinks in 2010 with near record high prices to boot. Commercial boat builders have waiting lists for the first time in decades. The industry is absolutely booming. Meanwhile, the percentage of vessel owners, permit holders, crew members, and quota holders who reside in Seward remains stable at a pathetically low level. Those who do call Seward home were probably born here. In the case of my own two sons, that wasn't enough to keep them from moving to Cordova. Cordova, Homer, and Kodiak have ten to twenty times as many resident fishermen. Why does this matter to Seward? Because home is where the lion's share of the money made gets spent. Even though Seward's proximity to the halibut, salmon, and black cod grounds will assure that plenty of those fish will be delivered here. Besides the fish tax and some fuel, almost all of the ex- vessel money goes right back out because the fisherman live elsewhere. With the fisherman go the families, school kids, crew jobs, and the boat work, etc. I apply to become a Port and Harbor Commerce Board member in order to address some of the issues which might make Seward a more attractive port and home for commercial boats and their families. This is probably the strongest avenue for business development in this town and it certainly is happening all around us. Because I am now actively fishing myself, I will not be able to attend some meetings. Specifically, I will be out of town during January and the first half of February, and for much of May through September. However, I will make the commitment to read the packets, remain active with the business of the Board, and make every meeting that I can. Please consider my application to fill one of the vacancies on the Board. Sincerely, Bob Linvi 907- 224 -3252 linville @ak.net 192 CITY OF SEWARD • Main Office (907) 224 -4050 y oF seW • Police (907) 224 -3338 P.O. BOX 167 4n • Harbor (907) 224 -3138 SEWARD, ALASKA 99664 67 • Fire (907) 224 -3445 4 [nbwP • City Clerk (907) 224 -4046 December 13, 2010 • Community Development (907) 224 -4049 • • Utilities (907) 224 -4050 • To Whom It May Concern: Fax (907) 224-4038 In our capacity as members of the City Council for the City of Seward, please consider our input to your decision concerning the competing applications from the City of Seward and Chugachmiut for establishing a New Access Point Community Health Center (CHC) site in Seward. Our City has a longstanding commitment to encouraging wellness, improving health care, and providing greater access to health care. (1) The Providence Seward Medical Care Center is a critical access hospital owned by the City and professionally managed by Providence Health and Services Alaska. The City is fully responsible profit or loss of the hospital. (2) As another initiative, we recently completed construction of a $27M long -term care facility, Seward Mountain Haven. It is the first "Green House" facility in the State. The cost of construction was paid through revenue bonds backed by the City. (3) Since 1982 one percent of all taxable sales in the City has been dedicated to the capital needs of our hospital. Annually the tax produces approximately $900,000 for our health care system. (4) Both our City and hospital organizations have comprehensive wellness and health insurance programs for employees. These programs provide incentives and funding for wellness and preventive health measures. (5) Our City also has a "Wellness For All" Committee of volunteers who donate their time and energy to improving health and wellness in the greater Seward area. These many initiatives provide a strong public foundation for establishing a successful and financially stable CHC. A City and non - profit co- applicant approach brings the openness and strengths of public and non - profit entities together. Synergies from that partnership will assist the financial, organizational, and mission success of the Center. Another strong argument for the City and non - profit approach is found in the HRSA requirement that such an approach must have a fully representative Board of Directors. We fully agree that an essential and distinguishing element of the CHC program should be governance by and for those served. A tribal approach to a CHC in our area would not meet that objective. Our demographics do not reflect a primarily native population. Depending on the specific areas of consideration, demographics range from 85% to 92% non native. A fully representative Board, and not a user advisory group to a Board, is the stronger approach for meeting the user needs of a CHC. Furthermore, a fully representative Board and the participation of the City as a public entity will create a broad based conduit for gathering and considering input from other stakeholders of health and wellness services in the community. The collaboration between the City of Seward and a co- applicant nonprofit organization will best ensure compliance with applicable laws, statutes, and regulations while freeing the non - profit board of directors and clinic administrator to concentrate on responsive, efficient and cost- effective delivery of health care that best serves the overall health care needs of individuals and rural communities in the greater Seward area. We are confident that collaboration and partnership between the City of Seward and the newly forming non - profit entity will allow many more individuals in the greater Seward area to have ready access to good quality primary care regardless of their insurance status. Sincerely, Willard E. Dunham Jean Bardarson Mayor Vice Mayor Vanta Shafer Marianna Keil Bob Valdatta Council Member Council Member Council Member 1 (1 CITY OF SEWARD • Main Office (907) 224 -4050 P.O. BOX 167 � • Police (907) 224 -3338 SEWARD, ALASKA 99664 -0167 -° • • Harbor (907) 224 -3138 • Fire (907) 224 -3445 4 t.vo - • City Clerk (907) 224 -4046 • Community Development (907) 224 -4049 • Utilities (907) 224 -4050 • Fax (907) 224 -4038 November 22, 2010 Principal David Kingsland, Seward Elementary School PO Box 247 Seward, Alaska 99664 Dear Mr. Kingsland, I would like to extend to you a sincere thank you for inviting our residents of Seward to your terrific Veterans Day Program. I have attended these before but never one put together such as the one I attended this last Veterans Day. The program was outstanding and the student's participation was stellar. You and all your staff should be very proud. I can tell you that those of us in the audience were awed and spellbound as each portion of the program was performed. The renditions sung brought tears to our eyes because of the symbolic implications of today's world. Programs such as these are so significant. The pride in learning how history and our freedoms were attained is in itself so very important. Keep up the good work and my utmost thanks -- the thanks of our community of Seward go to you and your wonderful staff. Sincerely, 4�! / 2 ayor Willard E. Dunham City of Seward C I 4 December 2010 December T F S 5 M January T 2011 S M T W T F S T W T F S 1 2 3 4 1 5 6 7 8 9 10 11 2 3 4 5 6 7 8 12 13 14 15 16 17 18 9 10 11 12 13 14 15 19 20 21 22 23 24 25 16 17 18 19 20 21 22 26 27 28 29 30 31 23 24 25 26 27 28 29 3031 Monday Tuesday Wednesday Thursday _ _ _ Friday T Sat/Sun December 11 2 3 12:OOpm PACAB ! 7:00pm Fish & Game Meeting Advisory • (Canceled) I I 5 6 7 8i 9 10 11 6:30pm "P&Z WS 11:30am Seward Community Library & Museum Building Committee 12 (Library Basement) — I 14 15 ... 18 _ 16 17 - - -- - - 5:30pm FW: Fish '' 7:OOpm Economic 12:OOpm PACAB Work 9:OOam Social Enhancement ; Development Session Security Rep 19 Work Town Hall (Canceled) Preservation Session (Jeff Meeting #2 6:3Opm 7:OOpm City Council (Rae Meeting Building) Meeting (Cancelled) 20 21 . 22 23 24 . 25 6:30pm P&Z Work 12:OOpm Offices Close Merry Christmas (Offices Session at Noon 26 I 7 28 29 30 31 ejr o 7:00pm City Council Happy New Year (QfficeS Meeting I Nand Richey 1 1 � 12/8/2010 1:05 PM J a n ua 201.1 January 2011 February 2011 S M T W T F S S M T W T F S 2 3 4 5 6 7 8 6 7 8 9 10 11 12 9 10 11 12 13 14 15 13 14 15 16 17 18 19 16 17 18 19 20 21 22 20 21 22 23 24 25 26 23 24 25 26 27 28 29 27 28 30 31 • Monday Tuesday Wednesday Thursday ----- ____ — :_ _ __ - -- -- nay — ---,,--- -- Sat/Sun — 1_ _____ _ --- January1,_2011 � I 2 — — — 3 4, 5 6 7 7:30pm P&Z Meeting I 9 T - - - -- - -- — — 13 - — 7:OOpm City Council 7:OOpm CC WS (AD 15 pm Seward Meeting Hoc Land 12 12:00 Community Committee) Library & 14 Museum Building Committee — 16 (Library Basement) 17 18 19 20; 21 22 6 :30pm P&Z Work 12:OOpm PACAB Work 9:OOam Social Session Session Security Rep 6:30pm Historic Preservation Meeting 23 9:00am Social 25 2 28 6 ' (7:00mOunciIi 27 29 Security Rep — (Tentative) 30 — 31i — L Nanci Richey 2 • 12/8/2010 1:05 PM 1 (+