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07222013 City Council Packet
Ns. Seward City Council Agenda Packet July 22, 2013 City Council Chambers Beginning at 7:00 p.m. ■ 1963 1965 2005 The City of Seward, Alaska aonm '1 CITY COUNCIL MEETING AGENDA {Please silence all cellular phones and pagers during the meeting} ► July 22, 2013 7:00 p.m. Council Chambers 1. CALL TO ORDER David Seaward 2. PLEDGE OF ALLEGIANCE Mayor 3. ROLL CALL Term Expires 2013 4. CITIZEN 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 3 minutes per speaker and 36 minutes Term Expires 2014 total 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 2013. unless a council member so requests. In the event of such a request, the item is returned to the Regular Agenda] Christy Terry Council Member 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Term Expires 2013 A. Proclamations and Awards Vanta Shafer B. Chamber of Commerce Report Council Member C. City Manager's Report Term Expires 2013 D. City Attorney's Report E. Mayor's Report Marianna Keil F. Other Reports and Presentations Council Member Term Expires 2014 a. Historic Preservation Quarterly Report Ristine Casagranda Council Member Term Expires 2014 James Hunt City Manager Johanna Kinney City Clerk Cheryl Brooking City Attorney City of Seward, Alaska Council Agenda July 22, 2013 Page 1 M. 7. PUBLIC HEARINGS - None 8. UNFINISHED BUSINESS A. Items Postponed from Previous Agenda 1. Resolution 2012 -058, Stating An Intent To Fund $400,000 For The Maple Street Sewer Line Project Subject To Receiving A Loan In That Amount, Authorizing A Loan Application With The Alaska Clean Water Fund And Authorizing The City Manager To Enter Into A Loan Agreement With The Alaska Wig-- Clean Water Fund With Annual Payments Not To Exceed $24,000, And Subject To Annual Appropriation. (Clerk's Note: This resolution was originally approved on July 23, 2012, and came forward to council on July 8, 2013 in order to correct a tern in the title which has a substantially different definition, but was postponed to this meeting. There was a new agenda statement brought forward on July 8, 2013 and it should be noted there is a second new agenda statement being brought forward tonight as well.) ....Pg. 4 9. NEW BUSINESS A. Resolutions *1. Resolution 2013 -058, Reaffirming The Seward Chamber Of Commerce, Conference And Visitors Bureau As The Lead Marketing Entity And Establishing Council's Intent To Annually Fund With Half Of The Actual Bed Tax Revenue From Each Second Prior Year ... 13 *2. Resolution 2013 -059, Adopting The Revised 2013 Capital Improvement Plan Pg. 17 *3. Resolution 2013 -060, Authorizing The City Manager To Enter Into A Contract With Metco Inc. For An Amount Not To Exceed $349,982.00 (Bid Amount $334,599.50 With A $15,382.50 Contingency) For The Dairy Hill Drainage Mitigation Project, And Appropriating Funds Pg. 30 *4. Resolution 20.13 -061, Authorizing The City Manager To Enter Into A Construction Contract With Harmon Construction To Erect A Steel Building On A Prepared Foundation, And Design And Install The Lighting And Heating Systems, In An Amount Not To Exceed $478,000, Establishing A 10% Contingency Fund And Appropriating Funds Pg. 48 5. Resolution 2013 -062, Authorizing The City Manager To Purchase A Replacement Vehicle In The Form Of A Small 4 -Wheel Drive Sport Utility Vehicle To Replace The 1999 Ford Pickup At The Harbor And Appropriating Funds In The Amount Of $22,891 Pg. 66 B. Other New Business Items *1. Approval of the June 10 & 24, 2013 and the July 8, 2013 City Council Regular Meeting Minutes Pg. 71 2. Vote and appoint two applicants to the Port and Commerce Advisory Board with terms expiring July 2016. The applicants are Dan Oliver and Deborah Altermatt Pg. 93 City of Seward, Alaska Council Agenda July 22, 2013 Page 2 10. INFORMATIONAL ITEMS AND REPORTS (No Action Required) a. Providence Seward Medical Center financial report for May 2013.. Pg. 95 b. Seward Ad Hoc Recreation Committee meetings during summer months suspended — will resume on Wednesday, September 4, 2013 .... 98 c. "Washington Update" memo from Sebastian O'Kelly, Kate Scontras, CJ Zane and Brad Gilman.. Pg. 99 11. COUNCIL COMMENTS 12. CITIZEN COMMENTS [5 minutes per individual - Each individual has one opportunity to speak.] 13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS 14. ADJOURNMENT City of Seward, Alaska Council Agenda July 22, 2013 Page 3 Sponsored by: Hunt Postponed: July 8, 2013 Corrected: July 22, 2013 Nunc Pro Tune: July 23, 2012 CITY OF SEWARD, ALASKA RESOLUTION 2012 -058 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, STATING AN INTENT TO FUND $400,000 FOR THE MAPLE STREET SEWER LINE PROJECT SUBJECT TO RECEIVING A LOAN IN THAT AMOUNT, AUTHORIZING A LOAN APPLICATION WITH THE ALASKA CLEAN WATER FUND AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A LOAN AGREEMENT WITH THE ALASKA DR1N CLEAN WATER FUND WITH ANNUAL PAYMENTS NOT TO EXCEED $24,000, AND SUBJECT TO ANNUAL APPROPRIATION WHEREAS, in 2010 city staff identified several issues necessitating the addition of 850 linear feet of gravity sewer main on Maple Street; and WHEREAS, in 2011 staff completed and submitted the required questionnaire to compete for loan monies being offered by the Alaska Clean Water Fund; and WHEREAS, this project was placed on Alaska's point based funding priority planning list for fiscal year 2012; and WHEREAS, the City of Seward seeks to obtain the necessary financial assistance to complete the Maple Street Sewer Main Extension by obtaining a loan from the State of Alaska, Department of Environmental Conservation's Alaska Clean Water Fund. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City of Seward hereby confirms its commitment to the State of Alaska (ADEC), and its intent to fund a $400,000 maple street sewer extension project, subject to receiving a loan from the ADEC. Section 2. The City Manager is authorized to apply for a loan in the amount of $400,000 from the State of Alaska Department of Environmental Conservation, Clean Water Fund, for the sewer system improvement known as Maple Street Sewer Main Extension. Section 3. The City Manager is hereby authorized to execute any and all documents that may be necessary to reflect the $400,000 loan from ADEC, the terms of its repayment over 20 years at a rate of interest equal to 1.5% subject to annual appropriations, including but not limited to an L CITY OF SEWARD, ALASKA. RESOLUTION 2012 -058 CORRECTED agreement for the loan and a promissory note. Annual loan payments shall not exceed $24,000. Section 4. The City Manager is directed to report to the City Council a payment schedule and final loan amount before execution. Section 5. This resolution shall take effect thirty (30) days following adoption. PASSED AND APPROVED nunc pro tune to July 23, 2012 by the City Council of the City of Seward, Alaska, this 22 day of July, 2013. THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: None NOES: None ABSENT: None ABSTAIN: None ATTEST: Brenda J. Ballou Acting City Clerk (City Seal) 5 Council Agenda Statement r1of 5��• Meeting Date: July 22, 2013 q� From: Jim Hunt, City Manager f " q�A P • Agenda Item: Correcting Resolution 2012 -058 and revising the funding options in the Agenda Statement Fiscal Note BACKGROUND & JUSTIFICATION: Resolution 2012 -058 was passed by Council on June 23, 2012. An error was recently found in the title requiring correction. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, STATING AN INTENT TO FUND $400,000 FOR THE MAPLE STREET SEWER LINE PROJECT SUBJECT TO RECEIVING A LOAN IN THAT AMOUNT, AUTHORIZING A LOAN APPLICATION WITH THE ALASKA CLEAN WATER FUND AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A LOAN AGREEMENT WITH THE ALASKA DRINKING CLEAN WATER FUND WITH ANNUAL PAYMENTS NOT TO EXCEED $24,000, AND SUBJECT TO ANNUAL APPROPRIATION The correction is necessary because the drinking water and clean water funds are two distinct and different definitions and funds. Consistency in the language and correction of the resolution is prudent and required to move forward with the project. INTENT: Correct an error in Council Resolution 2012 -058 and revise the funding options in the Fiscal Note. CONSISTENCY CHECKLIST: Yes No NA 1 Comprehensive Plan: X 2 Strategic Plan: X 3 Other: X FISCAL NOTE: When the Loan Agreement for this project was brought forward for Council approval in 2012, the administration told the Council that we were submitting a loan application solely for the purpose of scoring higher on a grant application, and that the most we intended to borrow at that time was $100,000. A grant was not received on this project so we are pursuing a loan in the full amount of $400,000. The Wastewater Fund does not generate sufficient revenues to pay the debt service on this debt, approximately $24,000 per year, so will have to draw down cash reserves. Current cash balance is $685,000. Recommendation by Staff (Option #5 of attachment) is to accept the loan offer from DEC at 1.5% and secure the loan repayment as follows: LTC facility redundant utility cost to be repaid with healthcare- related sales tax is $130,500 Assess un- subdivided parcel cost (approx 21 lots @ $4,350 each) $91,350 Assess Individual Residential lots (10 lots @ $4,350 each) $43,500 Sewer Utility pays remaining project cost ($134,650) over 20 years at 1.5% is approx. $8,000 per year. Approved by Finance Department: _L L ATTORNEY REVIEW: Yes No X RECOMMENDATION: Recommend approval of corrections to Resolution 2012 -058, and authorize the administration to proceed with a request to DEC to fund the full loan amount of $400,000, with only approximately $134,650 to be repaid through reserves of the Wastewater Utility, and the remainder to be funded through assessments on benefitting properties. MAPLE STREET WATER AND SEWER INFRASTRUCTURE FUNDING OPTIONS: Sewer Project Cost: $400,000 Do not recommend Option 1: Utility borrows cash from Water Fund Do not recommend Option 2: Water Utility could give the cash to the Sewer Fund Option 3: Sewer Utility borrows 100% from DEC at 1.5% 1) Request Council agree to forego 2.6% CPI increase in Water Fund and instead increase the Sewer Fund by 5.2% CPI in 2014 and 2015 to pay debt service and to move the wastewater fund into a fiscally sustainable position. 2) Raise sewer rates by 3% to fund project. Assessment district and Utility shared funding plan, including LTC facility Ten residential lots approximately 0.5 acres plus one unsubdivided 10.7 acre lot for a total of 31 similar -sized residential lots plus the LTC facility (approx. 15 lots) Total of 46 similar -sized Lots. Option 4: Entire project is funded by assessment district Assessment of approx. $8,700 per 0.5 acre lot LTC facility redundant utility cost is $130,500 Unsubdivided parcel cost is $182,700 Individual residential lots $8,700 each Recommendation #1 Option 5: Project is funded as follows: Take out DEC loan in the amount of 1.5% and secure loan repayment as follows: LTC facility redundant utility cost is $130,500 Sewer utility picks up 50% of remaining project cost of $134,650 Unsubdivided parcel cost is $91,350 Individual residential lots $4,350 each The above Options /Recommendations are based on rough cost estimates and will be refined once Council direction is given. Water Project Cost: $ 500,000 Note: The City Council authorized seeking a DEC loan for the full cost of this project, represented below as Recommendation #1: Recommend #1 Option 1: Utility pays 100% with DEC 1.5% loan Recommend #2 Option 2: Utility pays 100% with cash Option 3: Utility pays 100% with DEC 1.5% loan, and properties are assessed 25% of project cost 10 residential building lots and one large unsubdivided parcel, subject to the assessment district Reasoning for recommendation is that if sewer is financed through assessment district, total project may be in jeopardy due to non - affordability of project to property owners. Also, four of the lots already have some access to water so assessment of those lots would not be fair. Council Agenda Statement e sv Meeting Date: July 8, 2013 :'� 4 ,, F 9 O From: Jim Hunt, City Manager • Agenda Item: Correcting Resolution 2012 -058 BACKGROUND & JUSTIFICATION: Resolution 2012 -058 was passed by Council on June 23, 2012. An error was recently found in the title requiring correction. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, STATING AN INTENT TO FUND $400,000 FOR THE MAPLE STREET SEWER LINE PROJECT SUBJECT TO RECEIVING A LOAN IN THAT AMOUNT, AUTHORIZING A LOAN APPLICATION WITH THE ALASKA CLEAN WATER FUND AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A LOAN AGREEMENT WITH THE ALASKA DRINKING CLEAN WATER FUND WITH ANNUAL PAYMENTS NOT TO EXCEED $24,000, AND SUBJECT TO ANNUAL APPROPRIATION The correction is necessary because the drinking water and clean water funds are two distinct and different definitions and funds. Consistency in the language and correction of the resolution is prudent and required to move forward with the project. INTENT: Correct an error in Council Resolution 2012 -058. CONSISTENCY CHECKLIST: Yes No NA 1 Comprehensive Plan: X 2 Strategic Plan: X 3 Other: X FISCAL NOTE: When the Loan Agreement for this project was brought forward for Council approval in 2012, the administration told the Council that we were submitting a loan application solely for the purpose of scoring higher on a grant application, and that the most we intended to borrow at that time was $100,000. A grant was not received on this project so we are pursuing a loan in the full amount of $400,000. The Wastewater Fund does not generate sufficient revenues to pay the debt service on this debt, approximately $24,000 per year, so will have to draw down cash reserves. Current cash balance is $685,000. The Fund ended 2012 with surplus cash of $25,735; deficit cash in 2011 of ($65,959) excluding grant revenues; deficit cash of ($74,732) in 2010 and deficit cash of ($220,411) in 2009 excluding a one -time loan receipt. Pursuing this loan will significantly reduce the ability to obtain financing for additional wastewater projects for term of this loan (20 years). Approved by Finance Department: ,4 .� ATTORNEY REVIEW: Yes No X RECOMMVNDATTON: Recommend approval of corrections to Resolution 2012 -58. �'1 Sponsored by: Hunt ibm CITY OF SEWARD, ALASKA RESOLUTION 2012 -058 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, STATING AN INTENT TO FUND $400,000 FOR THE MAPLE STREET SEWER LINE PROJECT SUBJECT TO RECEIVING A LOAN IN • , • • i ■ _ • , _ • • : hG A LOAN APPLICATION WITH THE ALASKA CLEAN WATER FUND AND AUTHORIZING TH ITY MANAGERTO ENTER O A OAN AGREEMENT WITH TH ' ASKA T----: DRINKING WATER FUND TH ANNUAL PAYMENTS NOT TO EXCEED `$24,000, AND SUBJEC TO ANNUAL APPROPRIATION (M `d WHEREAS, in 2010 city staff identified several issues necessitating the addition of 850 linear feet of gravity sewer main on Maple Street; and tt pat IC,u. Nail vOkke) Lhici t WHEREAS, in 2011 staff completed and submitted the required questionnaire to compete for loan monies being offered by the Alaska Clean Water Fund; and WHEREAS, this project was placed on Alaska's point based funding priority planning list for fiscal year 2012; and r L WHEREAS, the City of Seward seeks to obtain the necessary financial assistance to complete the Maple Street Sewer Main Extension by obtaining a loan from the State of Alaska, Department of Environmental Conservation's Alaska Clean Water Fund. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City of Seward hereby confirms its commitment to the State of Alaska (ADEC), and its intent to fund a $400,000 maple street sewer extension project, subject to receiving a loan from the ADEC. Section 2. The City Manager is authorized to apply for a loan in the amount of $400,000 from the State of Alaska Department of Environmental Conservation, Clean Water Fund, for the sewer system improvement known as Maple Street Sewer Main Extension. Section 3. The City Manager is hereby authorized to execute any and all documents that may be necessary to reflect the $400,000 loan from ADEC, the terms of its repayment over 20 years at a rate of interest equal to 1.5% subject to annual appropriations, including but not limited to an agreement for the loan and a promissory note. Annual loan payments shall not exceed $24,000. Section 4. The City Manager is directed to report to the City Council a payment schedule _10 \ City of Seward, Alaska City Council Minute Jul 23, 2012 Volume 38, Page 865 No: Casagranda king Resolution 2012 -056, Stating An Intent To Fund $490,000 For The Lowell Point And SMIC Lagoons Sludge Removal Project, Subject To Receiving A Loan In That Amount, Authorizing A Loan Application With The Alaska Clean Water Fund And Authorizing The City Manager To Accept A Loan Offer From The Alaska Clean Water Fund With Payments Subject To Bi- Annual Appropriation. Motion (Bardarson /Shafer) Approve Resolution 2012 -056 Long said administration was still seeking grant funding for this project, but wanted to have other options in place. He said if council authorized this application, it would strengthen the city's position to apply for grants. Motion to Amend (Bardarson /Keii) Amend Resolution 2012 -056, changing payment schedule from "Bi- Annual" to "Annual" in the title. Motion To Amend Passed Unanimous Main Motion Passed Unanimous Resolution 2012 -057, Authorizing The City Manager To Enter Into A Grant Agreement __ With The Alaska Department Of Environmental Conservation Municipal Matching Grant Program With A Total Award Of $2,508,000 For Phase II Of The North Seward Water Storage Tank And Pumping Facility Project, And Appropriating Funds. Motion (Bardarson /Shafer) Approve Resolution 2012 -057 Motion to Amend (Seaward / Bardarson) Amend Resolution 2012 -057, changing the amount in the Eighth Whereas from "$2,510,000" To "$2,508,000 ". Motion To Amend Passed Unanimous Casagranda asked if there was grant paperwork available, including project completion date. Long stated this would come back to council at a later time. Public Works Director W.C. Casey stated that on page 88 of the packet was the formal letter to the city manager, but they had not yet received formal grant paperwork. Main Motion Passed Unanimous Resolution 2012 -058, Stating An Intent To Fund $400,000 For The Maple Street Sewer Line Project Subject To Receiving A Loan In That Amount, Authorizing A Loan Application With The Alaska Clean Water Fund And Authorizing The City Manager To \\ City of Seward, Alaska City Council Minutes July 23, 2012 Volume 38, Page 866 Enter Into A Loan Agreement With The Alaska Drinking Water Fund With Annual Payments Not To Exceed $24,000, And Subject To Annual Appropriation. N ; Motion (Bardarson /Keil) Approve Resolution 2012 -058 Casey stated the intent was to use and leverage the approval of the loan to apply for a 70/30 matching grant, which would be a cost savings, in order to develop a redundant sewer in the area of the senior care facility. The result of this grant would be instead of the city taking out a loan in the amount of $400,000, the city could receive a grant for $300,000 and only have to pay $100,000 for the project. Bardarson was concerned about the city having the cash flow to pay for their portion of the loan payment, and asked that council be informed prior to entering into a financial commitment. Casey replied that in 2013 the city would be retiring some debt, and could enable the city to handle making payments on a loan of $90,000- 100,000 at 1.5% interest. Motion to Amend (Bardarson/Keil) Amend Resolution 2012 -058, creating a new section 4 that reads, "The City Manager is directed to report to Council a payment schedule and final loan amount before execution." Motion to Amend Passed Unanimous Main Motion Passed Unanimous OTHER NEW BUSINESS Council unanimously voted to appoint Darryl Schaefermeyer, Bruce Jaffa and Steven Fink to the Port and Commerce Advisory Board with terms expiring July 2015. INFORMATIONAL ITEMS AND REPORTS (No action required) Letter from Senator Mark Begich congratulating Seward on 100 years of incorporation. Letter, from the City of Kushiro acknowledging the 30" Anniversary of the signing of the Sister Port Agreement with the City of Seward. COUNCIL COMMENTS Bardarson welcomed the Japanese exchange students and remembered when she was an exchange student herself many years ago. She offered condolences to the Gene Skinner family and said he contributed a lot to our community and would be greatly missed. She thanked Schaefermeyer, Fink and Jaffa and Ms. Bablinskas for applying for PACAB. She reminded everyone that there were openings on the Planning & Zoning Commission as well as the Flood Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2013 -058 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REAFFIRMING THE SEWARD CHAMBER OF COMMERCE, CONFERENCE AND VISITORS BUREAU AS THE LEAD MARKETING ENTITY AND ESTABLISHING COUNCIL'S INTENT TO ANNUALLY FUND WITH HALF OF THE ACTUAL BED TAX REVENUE FROM EACH SECOND PRIOR YEAR WHEREAS, the City of Seward implemented a 4% bed tax on January 1, 1996, and from 1996 through 2000, contributed varied amounts of the bed tax to the Seward Chamber of Commerce, Conference and Visitors Bureau (Chamber) to fund specific activities such as improvements to the visitors center, a visitor brochure, a feasibility study, convention center study, etc; and WHEREAS, beginning in 2001, the Seward City Council agreed to split half of the budgeted bed tax with the Chamber for the express purpose of providing contract marketing services on behalf of the community; and WHEREAS, beginning in 2002 the Seward City Council began basing the contribution to the Chamber of half of the previous full year's actual bed tax collected; and WHEREAS, since the 2005 the city budget has included an appropriation to the Chamber from the second previous full year's bed tax revenue at 50 %; and WHEREAS, the city's Strategic and Comprehensive Plans clearly state the city's desire to expand its business base and to generate year -round employment; and WHEREAS, the city obtains significant benefits, direct and indirect, of marketing efforts with the quality of life for the citizens of Seward and surrounding areas as a direct result of a stable, vibrant, year -round economy; and WHEREAS, marketing is an important effort that must take place to achieve the goals of attracting new business and industry, support and grow existing businesses, and increasing customers coming to Seward; and WHEREAS, the Chamber has the experience, professional contacts and ability to provide marketing services for the community with the ability to focus resources and target specific marketing groups to react to changing markets and demands more efficiently and expertly than the City; and WHEREAS, the Chamber presents its budget to the Seward City Council annually and provides monthly updates on activities; and rnrr CITY OF SEWARD, ALASKA RESOLUTION 2013 -058 WHEREAS, the council recognizes that a coordinated marketing effort at the community - wide level is critical to a successful economy. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council hereby reaffirms the Seward Chamber of Commerce, Conference and Visitor's Bureau as the designated lead marketing entity for the City of Seward. Section 2. The City Council hereby confirms its intent to annually fund with half of the actual Bed Tax Revenue from each second prior year. Section 3. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22 day of July, 2013. THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou Acting City Clerk (City Seal) 1� Agenda Statement r. pF sett, Meeting Date: July 22, 2013 � pia To: City Council '4t AP From: City Manager Jim Hunt Agenda Item: Reaffirmation of Chamber funding BACKGROUND & JUSTIFICATION: The City's Strategic and Comprehensive Plans clearly state the City's desire to expand its business base and to generate year -round employment. Both plans include goals and objectives in regards to having a robust marketing campaign highlighting Seward's diverse resources and excellent quality of life. The City and its Citizen's obtain significant benefits, direct and indirect, of marketing efforts with the quality of life for the citizens of Seward and surrounding areas as a direct result of a stable, vibrant, and year round economy. Marketing is an important effort that must take place to achieve the goals of attracting new business and industry, support and grow existing businesses, and increasing customers coming to Seward. The Seward Chamber of Commerce, Conference and Visitor's Bureau (Chamber) has the experience, professional contacts and ability to provide marketing services for the community with the ability to focus resources and target specific marketing groups to react to changing markets and demands more efficiently and expertly than the City. During the budget process Council ensures the Chamber meets their mandated goals and objectives for the citizens and business of Seward. Representatives of the Chamber give a presentation to the City Council, and provide a written budget, specifying the use of these funds. Additionally, the Chamber Director provides monthly updates to Council and the Port and Commerce Advisory Board. INTENT: The City Council recognizes that a coordinated marketing effort at the community -wide level is critical to a successful economy and with this Resolution reaffirms the Seward Chamber of Commerce, Conference and Visitor's Bureau as the designated lead marketing entity for the City of Seward. Additionally, the City Council hereby confirms its intent to annually fund with half of the actual Bed Tax Revenue from each second prior year. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan: 3.1.1 Attract new business and industry to the greater Seward area. 3.1.1.1 Develop an active marketing campaign 1. that highlights the diverse resources and quality of life that makes X Seward an attractive place in which to live and to establish a business or industry. Strategic Plan: Page 5 Goals and Objectives, Attract New Industry 2 • Develop an aggressive marketing campaign which highlights the X diverse resources and quality of life that makes Seward a great place to live and establish a business or industry. Other: Ordinance 1995 -001, City Council Resolutions 1997 -052, 2004- 3 ' 047 and 2005 -018. PACAB Resolution 2004 -006 X FISCAL NOTE: The hotel /motel tax rate is 4 %. It has been 4% since it was first put in place by an Initiative Ordinance by the voters, effective in January, 1996. Following is a sampling of various communities and their Bed Tax rates: Adak 5 %; Anchorage 12 %; Barrow 5 %; Bethel 12 %; Bristol Bay Borough 10 %; Cordova 6 %; Dillingham 10 %; Fairbanks 8 %: Fairbanks North Star Borough 8 %; Haines Borough 4 %; Juneau 7 %; Ketchikan 7 %; Ketchikan Borough 4 %; Kodiak 5 %; Kodiak Island Borough 5 %; Kotzebue 6 %; Mat -Su Borough 5 %; McGrath 10 %; Nome 6 %; North Pole 8 %; Pelican 10 %; Petersburg 4 %; Sand point 7 %; Seward 4 %; Sitka 6 %; Skagway 8 %; Valdez 6 %. Seward's Ordinance was followed up by a Resolution of the City Council, stating their intent to appropriate a portion of the bed tax to promote tourism and develop visitor infrastructure. Resolution 1997 -052 specifically identified the Chamber of Commerce for purposes of providing marketing and other services on behalf of the community. Ever since that time, the City has appropriated a portion of the Bed Tax, and beginning in 2001 it has been one -half of the bed tax to the Chamber of Commerce for marketing and economic development. The other half of the bed tax is used to fund the General Fund's infrastructure projects benefiting visitors which could include things such as public restrooms, viewing areas, pavilions, campground improvements, sidewalks, library, etc. The bed tax is apportioned to the Chamber based on one -half of the bed tax collected during the second prior year (the intent is that when the budget is formulated, the amount of the bed tax allocation for the first year in the biennial budget, is based on a known figure). So for example, in 2012 the City provided the Chamber with $164,198 which represented one -half of the 2010 actual bed tax revenues of $328,396. Bed tax revenues in 2011 were $334,823.77, so one -half of that would be $167,411.88 to the Chamber in 2013, and were $380,210.48 in 2012, so the Chamber allocation in 2014 -- assuming the Council still allocates one -half of the bed tax to the Chamber -- would be $190,105.24. Approved by Finance Department: jeuzjzz 44.e4L6 � ATTORNEY REVIEW: Yes No X RECOMMENDATION: s Approve Resolution 2013 - O� reaffirming the Seward Chamber of Commerce, Conference, and Visitor's Bureau as the lead marketing entity and establishing Council's intent to annually fund with half of the actual bed tax from each second year prior. 1� Sponsored by: Administration CITY OF SEWARD, ALASKA RESOLUTION 2013 -059 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ADOPTING THE REVISED 2013 CAPITAL IMPROVEMENT PLAN WHEREAS, the Seward City Council conducted extensive work sessions for the purpose of discussing enterprise fund capital infrastructure needs and rate reviews in eight work sessions spanning the months of September and October, 2011, resulting in the passage of the 2012/2013 Capital Improvement Plan on November 28, 2011; and WHEREAS, during the off -cycle budget year the City Council held additional work sessions on November 6 and 7, 2012 to improve the city's capital budget cost estimates and refine critical and high -risk capital needs in all city funds. Subsequently, additional work sessions were held on April 15, 2013 (Electric) and April 29, 2013 (Water and Wastewater), to focus on particular projects in the Electric, Water and Wastewater Funds; and WHEREAS, the attached Capital Improvement Plan ( "CIP ") schedules reflect adjustments to the cost estimates for a number of projects and include additional projects not previously identified on the CIP list (and removal of completed projects), and these updated figures will form the basis for CIP discussions in the upcoming 2014/2015 budget cycle. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Capital Improvement Plan for Calendar Years 2012 and 2013 as Revised, attached hereto and made a part hereof by reference, is hereby adopted. Section 2. Funding for General Fund projects was previously appropriated utilizing 2013 revenue sharing proceeds, and funding for enterprise fund projects will require appropriation from the Seward City Council. Section 3. This resolution shall take effect immediately upon adoption. CITY OF SEWARD, ALASKA RESOLUTION 2013 -059 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22" day of July, 2013. THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda Ballou Acting City Clerk (City Seal) Agenda Statement Meeting Date: July 22, 2013 06,1111 � To: Seward City Council 140" Through: James Hunt, City Manag From: Kristin Erchinger, Finance Director Agenda Item: Revised 2013 Capital Improvement Plan BACKGROUND & JUSTIFICATION: The Seward City Council passed the 2012/2013 Capital Improvement Plan (CIP) on November 28, 2011 after eight work sessions spanning the months of September and October, 2011. During 2012, the administration focused its attention in the off-budget cycle, on refining critical and high -risk capital needs and cost estimates for capital budget items, especially in the City's enterprise funds. Specific CIP worksessions were held on November 6 and 7, 2012 (to review all Funds' capital needs), and on April 15 (Electric) and April 29, 2013 (Water and Wastewater), to revise the CIP. The purpose of this resolution is to adopt the updated CIP which will form the basis for the upcoming 2014/2015 biennial budget. The attached CIP schedules are titled "Fiscal Year 2012 and 2013 (as Revised)" to reflect the fact that some projects were moved from 2012 to 2013 because they were not completed as initially planned. In the future we may wish to change the schedule's title to reflect only the second year of the biennial budget. On the attached Schedules, all added CIP items are indicated with a (a) notation. All modifications to cost estimates are indicated with a (b) notation. This makes it easier for Council members to identify which projects have changed. In the General Fund, revenue sharing funds were received for 2013, so the projects totaling $277,000 will be funded and funds have already been appropriated. In the Parking Fund, the East Harbor paving project is underway in 2013, so has been added to this schedule and also to the Harbor's schedule. The Harbor has added numerous projects to its CIP list as discussed in worksessions (pave travelift runway, boardwalk in S. Harbor uplands, replace pickup truck, paving in NE parking lot, power to X -float, 50 -ton boat lift wash down pad, N. Harbor sheetpile). The SMIC Fund added the vessel washdown pad and 300 -ton boat lift. The Electric Fund did not add CIP items but did update the status of projects started or completed between 2012 and 2013. The Water Fund added a formal rate study and replacement ofwater line between Phoenix and Sea Lion Streets. The Wastewater Fund added Spruce Creek sewer, SMIC piping for bypass, blowers at Lowell Point treatment plant, manhole refurbishment, GIS system, wastewater rate study, SMIC slude pile disposal. The Healthcare Fund added two stretchers. The Motor Pool rolled the 2012 used dump truck funding forward to 2013 due to inability to find available equipment at that price, and proposes instead to purchase one dump truck in 2013 for an amount not to exceed $150,000. A harbor vehicle replacement was also added to the Motor Pool listing which previously was reported on the Harbor CIP, but which should have been on the Motor Pool CIP listing as well, due to the funding source. 11 INTENT:. Update the Capital Improvement Plan priorities based on 2012 and 2013 Council worksessions. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): 2. Strategic Plan (document source here): 3. Other (list): Annual Budget process X FISCAL NOTE: . Funding has been appropriated for the General Fund projects, based on securing revenue sharing funding in 2013. All other projects will require Council appropriation for funding. Approved by Finance Department: ,t ittA( ATTORNEY REVIEW: Yes No )( RECOMMENDATION: Approve Resolution 2013- t , reflecting a revised 2013 Capital Improvement Plan. Capital Improvement Plan (A) ^ Mat General Fund - Related Capital Projects C /9 >^ 46t1/ a Fiscal Year 2012 and 2013 (as Revised) New or Project Funding Source Project Description Replace Year Cost City Portion Other Portion Source Projects Slated for Funding in 2012 and 2013: Fire Hall (lighting, ext lights, abate asbestos, floor repairs) Maintain 2012 $31,000 $31,000 General Fund Finance Department general ledger software R 2012 $95,000 $95,000 General Fund Community Library/Museum R 2012 $10,000,000 $3,750,000 $6,250,000 Grant/ City Total Projects in 2012: $10,126,000 $3,876,000 $6,250,000 City Hall carpet repairs Maintain 2013 $95,000 $95,000 General Fund Police radio system upgrade R 2013 $70,000 $70,000 General Fund Fire Hall siding R 2013 $70,000 $70,000 General Fund Campground pay stations (test) N 2013 $42,000 $42,000 General Fund Total Projects in 2013: $277,000 $277,000 $0 CITY SHOP: City Shop Facility Phase I: Site Layout/Design R $75,000 $75,000 General Fund Total City Shop Projects: $75,000 $75,000 $0 PUBLIC SAFETY: Fire Hydrant upgrades - Ph. II R $200,000 $200,000 General Fund . )Refurbish Fireboat dings, dents, bottom paint, repaint (a) R $27,000 General Fund Lowell Point erosion mitigation R $200,000 $200,000 Federal/State Generator for AVTEC emergency shelter N $125,000 $125,000 General Fund >Satellite Fire Station / Storage Facility (Forest Acres) (b) N $3,128,000 $3,128,000 Grant Ladder Platform Vehicle N $950,000 $950,000 Grant )Satellite Station on Nash Road (b) N $1,407,600 $1,407,600 Grant Fire Hall electric meter base relocate, rewire, security (a) N $65,000 $65,000 General Fund )Road improvements (a) R $2,700,000 $300,000 $2,400,000 Federal /State > Replace existing fire station (a) R $4,446,000 $4,446,000 State /General Expand SMIC building storing engine N $33,000 $33,000 General Fund Public Safety Building N $5,665,000 $5,665,000 General Fund Total Public Safety Projects: $18,946,600 $6,388,000 $12,531,600 PARKS & RECREATION: Replace Wellington Pavilion R $400,000 $400,000 General Fund TYC landscape, fence, play area R $25,410 $25,410 General Fund Beach Erosion Engineering Study N $150,000 $150,000 Federal /General Beach Erosion repairs at waterfront R $88,000 $88,000 Federal /General Beach Erosion control finger construction N $88,000 $88,000 Federal/General Lagoon Boardwalk rebuild R $264,000 $264,000 General Fund Restroom and Concession Stand Upgrade R $179,300 $179,300 General Fund Informational /directional maps N $23,100 $23,100 General Fund Forest Acres campground improvements R $35,000 $35,000 General Fund Jon Perry softball field fence replacement R $75,000 $75,000 General Fund >Small Outdoor Restroom - Williams Park (b) N $100,000 $25,000 $75,000 General /Donation Centennial Park N $447,500 $447,500 $200,000 Grant /GF Sweet Smelling Toilet at culvert N $48,400 $48,400 General Fund Marathon Campground rehabilitation R $52,800 $52,800 General Fund Forest Acres Park playground upgrades R $38,500 $38,500 General Fund Harborside Park - Phase I / Seaview Campground R $150,150 $150,150 General Fund Harbor Park (new south harbor uplands) N $890,900 $890,900 State /General Little League Field restrooms R $187,000 $187,000 General Fund Boulder Field - turf, fence, grade, drains R $275,000 $275,000 General Fund Total Parks & Recreation Projects: $3,518,060 $3,443,060 $275,000 CITY HALL /LIBRARY /OTHER: City Hall electrical upgrades R $65,000 $65,000 General Fund "City Hall ADA improvements (a) N $40,000 $40,000 General Fund 1 City Hall fire alarm system upgrade (a) R $40,000 $40,000 General Fund `? City Hall roof repairs (a) R $80,000 $80,000 General Fund Fix venitilation at City Hall R $85,000 $85,000 General Fund Total City Hall /Library Projects: $310,000 $310,000 $0 Total General Fund Projects: $33,252,660 $14,369,060 $19,056,600 'rsi6l4eie60ul �raz ectkor._.,. >441l1l:.. :a 01 :• . -. p : :: ; ' r : : ; ; : : : • !.; .;;; Total: G "�ctsf t�0 3, $27'1 ,.... . Note: 2012 Budget includes $228,000, and 2013 includes $220,000 for capital projects, based on receipt of State Revenue Sharing funding. (a) Added to CIP. (b) Cost estimate updated. .rte Capital Improvement Plan Parking - Related Capital Projects 2012 and 2013 (no Revisions) New or Project Funding Source Project Description Replace Year Cost City Portion Other Portion Source Center Lot patch, seal and stripe R 2013 $165,000 $165,000 Parking East Harbor paving N 2013 $275,000 $275,000 Harbor /Parking N 2012 $50 1-5-0.40-0 Parking North Parking Lot patch, seal and stripe R $150,000 $150,000 Parking South Parking Lot patch, seal and stripe R $150,000 $150,000 Parking Permit (Employee) Lot patch, seal and stripe R $100,000 $100,000 Parking Northeast Parking Lot paving, sealing, striping N $50,000 $50,000 Parking Parking office /chalet replacement R $10,000 $10,000 Parking Other: New Harbor Uplands projects N $125,000 $125,000 Parking / Grant NE Parking Fencing on W. and N. borders N $140,000 $140,000 Parking Total Parking Fund Projects: $1,215,000 $1,215,000 ::4000:: ::::::::::::T.04! P? #.rl4i4: :',#0 pt'oieets fq (i 0:4: 2D . $ 0,©0.... ....$4..., (a) Alternative parking located in storage building north of City Hall. Note: No Parking Major Maintenance, Repair & Replacement Fund as City of Seward Capital Improvement Plan Harbor - Related Capital Projects 2012 and 2013 (as Revised) * Critical -Risk - C New or Project High -Risk - H Funding Source Project Description Replace Year Cost Moderate -Risk _M City Portion Other Portion Source Maintenance dredging (b) R 2012 $759,831 C $759,841 $705,858 CPV /Federal ,D-float design (a) R 2012 $100,000 C $100,000 Federal NE Fish cleaning station (b) N 2012 $775,000 New $775,000 State grant >Pave travelift runway (a) N 2012 $15,000 New $15,000 City 'j Boardwalk S. Harbor Uplands (a) N 2012 $200,000 New $200,000 CPV D -float replacement R 2013 $2,360,000 C $1,180,000 $1,180,000 MRRF /State >Harbormaster restrooms (b) Maintain 2013 $130,000 H $130,000 State grant . Replace pickup truck with 115K miles (a) R 2013 $29,000 H $29,000 Motor Pool Replace trash dumpsters (b) R 2013 $70,000 M $70,000 City 5 -Ton crane (b) N 2013 $150,000 New $150,000 City Paving in NE parking lot (a) R 2013 $275,000 $275,000 Harbor /Parking "Power to X -Float (a) N 2014 $200,000 New $200,000 Harbor /Grant >T,U,V Floats (off ofX- Float) (b) N 2015 $4,000,000 New $4,000,000 Harbor/Grant '> 50 -ton boat lift wash down pad (a) N 2015 $500,000 New $250,000 $250,000 Harbor /Grant Replace floats A, B, C, S R 2015 $6,100,000 H $4,000,000 $2,100,000 City /State Replace S Launch Ramp R 2015 $1,000,000 M $1,000,000 State Replace K &L floats R 2016 $2,250,000 H $2,250,000 City /State N. Harbor Sheetpile /Dock (a) N 2016 $9,000,000 New City Replace N launch ramp R 2017 -2020 $1,000,000 M $1,000,000 State Replace fish waste bargea R 2017 020 $70,000- 14 $.70,10G City - R 017 020 $60,000 14 $60 J -Dock side -road pave /landscape N 2017-2020 $25,000 New $25,000 Harbor South harbor uplands pave and landscape N 2017 -2020 $500,000 New $500,000 Harbor /Parking Remaining Z -Float lateral fingers N 2017 -2020 $1,500,000 New $1,500,000 Harbor Fishing pier recreation area N 2017 -2020 $2,600,000 New State /Harbor Total Harbor Fund Projects: $33,668,831 $15,504,841 $7,269,858 'Tot` l R,R'''r' . a Hoc ori$ P`o ' b u ci r t f ' ec s. ,o-,. 2 1 ' " D 2 a ii' :: 1 ... . . . ..... .. .. d.2013i l,: ; ; :`$ ih6A8;83 � :'$2'849 841; $GS :::: ` . * Critical Risk: Likely to fail within next 5 years; High Risk: Likely to fail in 5 -10 years; Moderate Risk is continuous increasing cost to maintain, and operate. Funding for City- funded projects has not yet been identified by the City Council and requires appropriation. Strike -out projects are being removed from the CIP. Fish barges are being repaired rather than replaced. 2 used oil stations replaced; one more to be replace (a) Added to CIP. (b) Cost estimate updated. wimw Capital Improvement Plan Seward Marine Industrial Center (SMIC) - Related Capital Projects 2012 and 2013 (as Revised) New or Project Funding Source Project Description Replace Year Cost City Portion Other Portion Source > Vessel washdown pad design (a) N 2012 $91,630 $1,905 $89,725 EVOS grant > Vessel washdown pad construction (a) N 2013 $641,300 $641,300 EVOS grant > 300 -ton boat lift (a,d) R Grant/City > Improve drainage and fence storage area (b) N $1,500,000 $1,500,000 Federal )Ship transfer system (b) N $4,000,000 $4,000,000 Federal > Dock basin breakwater for SMIC (c) N $100,000,000 $100,000,000 State/Fed /City Two restroom facilities N $75,000 $75,000 Grant/City Total S.M.I.C. Fund Projects: $106,307,930 $1,905 $106,306,025 (a) Added to CIP. (b) Cost estimate updated. (c) Cost estimate increased from $50M to $100M based on expansion of project scope in 2012. (d) Cost estimate will be provided when available. City of Seward Capital Improvement Plan Electric - Related Capital Projects 2012 and 2013 (as Revised) Critical -Risk - C New or Project High -Risk - H Funding Source Project Description Replace Year Cost Moderate -Risk _M City Portion Other Portion Source Critical Capital Needs: Generator 3 - silencer N 2012 $30,000 C $30,000 State >ROW clearing, Phase I (b) R 2012 $115,000 C $115,000 Camelot Underground, phase I R 2012 Electric $100,000 C $100,000 Electric Paint Transformers and Substation Equipment R 2012 $120,000 C $120,000 Electric 'Transformer Renovation - Fort Raymond (b) R 2013 $380,000 C $380,000 State >ROW clearing, Phase II (b) R 2013 $150,000 C $150,000 Electric Exhaust roof - Generator 3 N 2013 $30,000 C $30,000 State Camelot Underground, phase II (b) R 2013 $100,000 C $100,000 Electric Lake Drive (Stoney Creek) (b) R 2013 $150,000 C $150,000 Electric Meter Relay and View Screen N $20,000 C $20,000 Electric Lagoon - Underground R $450,000 C $450,000 Electric Jesse Lee Underground R $30,000 C $30,000 Electric SMIC Underground R $105,000 C $105,000 Electric Transformer Renovation - Spring Creek R $200,000 C $200,000 Electric Sectionalized Pole Replacement - $17K/pole generally R $1,700,000 C $1,700,000 Electric High -Risk Capital Needs: . Old Mill k3 Gateway (Upper) R $120,000 H $120,000 Electric $180,000 H $180,000 Electric Gateway (Lower) R $80,000 H $80,000 Electric Woodland Hills R $120,000 H $120,000 Electric Lost Lake Underground R $55,000 H $55,000 Electric Software for inventory N $50,000 H $50,000 Electric Downtown Alley (2nd and 3rd) underground R $1,000,000 H $1,000,000 Electric Downtown Alley (3rd and 4th) underground R $2,000,000 H $2,000,000 Electric Downtown Alley (4th and 5th) underground R $2,000,000 H $2,000,000 Electric Moderate -Risk Capital Needs: Update Fort Raymond Controls N $450,000 M $450,000 Electric Security Upgrades to substations N $130,000 M $130,000 Electric Switch at Nash Road R $100,000 M $100,000 Electric Lawing Poles R q $..5,000 M $25,000 Electric Victor Creek Poles R $110,000 M $110,000 Electric Questa Woods R $80,000 M $80,000 Electric AVTEC Underground R $15,000 M $15,000 Electric Southwest boat ramp R $33,000 M $33,000 Electric Lawing to Victor Creek Overhead R $75,000 M $75,000 Electric Automatic meter reading N $950,000 M $950,000 Electric Purchase 9 mega -watts of Bradley Lake Power fm ML &P N $1,100,000 $1,100,000 State/Electric SMIC loop distribution system N $55,000 $55,000 Electric Update sectionalizing study and purchase oil circuit reclosuree N $132,000 $132,000 Electric Install 25kV underground across Snow River N $450,000 $450,000 State/Electric Convert transmission line to 115 kV R $12,000,000 $12,000,000 State/Electric Extend the 12 5kV distribution line on Nash Road N $165,000 $165,000 State/Electric Upgrade Victor Creek 25kV line R $110,000 $110,000 State/Electric Total Electric Fund Projects: $25,265,000 $11,000,000 $14,265,000 - 'c' $'.riiid :' Pr ecte; t'oc: 403..g ' . _.,J... : ...... �� .,. :; �` :.$ 176; DOQ735 < ©AD ::, :'': Total Eleotii �$440'000::_..._, :. * Critical Risk: Likely to fail within next 5 years; High Risk: Likely to fail in 5 -10 years; Moderate Risk is continuous increasing cost to maintain and operate. Funding for City- funded projects requires appropriation. 2013 Budget includes $600,280 to MRRF for major repairs /replacement of critical and high -risk needs. (a) Item added to CIP (b) Cost estimate updated. az City of Seward Capital Improvement Plan Water - Related Capital Projects 2012 and 2013 (as Revised) * Critical -Risk - C New or Project High -Risk - H Funding Source Project Description Replace Year Cost Moderate -Risk _M City Portion Other Portion Source Critical Capital Needs: Gateway Tank Roof R 2013 $300,000 C $300,000 State > Water Storage Tank (500K gallons) (b, c) N 2014 $4,500,000 C $4,500,000 State Refurbish Lowell Canyon 400K gallon Tank and R 2014 $575,000 C $575,000 State Remove 200K gallon Lowell Canyon tank fm service (b) High Risk Capital Needs: Abandon wells at Fort Raymond (b) R 2015 $250,000 H $250,000 City Mobile generation for water wells R 2015 $285,000 H $285,000 City New production well #7 N 2015 $650,000 H $650,000 City Moderate Risk Capital Needs: Refurbish #4 production well R 2017 $85,000 C $85,000 City Distribution Piping upgrades (ductile iron pipe) R Annual $500,000 H $500,000 City Facility Control upgrades R 2017 $80,000 M $80,000 City GIS system N 2017 $60,000 M $60,000 City Formal rate study of Water utility (a) N 2017 $30,000 $30,000 City Replace 10" and 14" AC water line btwn Phoenix and Sea LioD R 2017 $1,860,000 M City Replace 5% of water lines annually ($1 million /yr.) R Annual $1,000,000 M $1,000,000 City Total Water Fund Projects: $10,175,000 $2,940,000 $5,375,000 Total V1'eter /$ewk'ii »Yi Fitjects fok 20]Z a3i 003.:: .. ; : ':' $300 > .D . ,.0 ......................... .. * Critical Risk: Likely to fail within next 5 years; High Risk: Likely to fail in 5 - 10 years; Moderate Risk is continuous increasing cost to maintain and operate. Funding for capital projects requires appropriation. 2012 Budget includes $208,527; 2013 includes $198,883 to MRRF for critical and high -risk capital needs. (a) Added to CIP. (b) Cost estimate revised. (c) Cost estimate increased from $2.06M to $4.5M. Grant funding secured for project. City of Seward Capital Improvement Plan Wastewater - Related Capital Projects 2012 and 2013 (as Revised) * Critical -Risk - C New or Project High -Risk - H Funding Source Project Description Replace Year Cost Moderate -Risk _M City Portion Other Portion Source Critical Capital Needs: Secure Spruce Creek sewer (a) N 2013 $90,000 C $90,000 Wastewater Fund SMIC bypass valving R 2013 $72,000 C $72,000 Wastewater Fund Lowell Point sludge pile disposal (b) R 2014 $490,000 C $490,000 Wastewater Fund #1 standby generator R 2014 $150,000 C $150,000 Wastewater Fund > Forest Acres lift station (engineering) (b) N 2015 $92,000 C $92,000 Wastewater Fund High -Risk Capital Needs: SMIC piping for bypass (engineering /design) (a) R 2014 $50,000 H $50,000 Wastewater Fund Double wall fuel tanks R 2015 $150,000 H $150,000 Wastewater Fund Replace blowers at Lowell Pt. treatment plant (a) R 2015 $120,000 H $120,000 Wastewater Fund Manhole refurbishment (a) R 2016 $120,000 H $120,000 Wastewater Fund Moderate -Risk Capital Needs: SMIC lower lift station (engineering only) R 2015 $250,000 M $250,000 Wastewater Fund GIS system (a) - N 2016 $30,000 M $30,000 Wastewater Fund Wastewater utility rate study (a) N 2016 $30,000 M $30,000 Wastewater Fund SMIC Sludge pile disposal (a) R 2016 $25,000 M $25,000 Wastewater Fund Replace existing distribution system ($800K/yr.) R Annual $800,000 M $75,000 Wastewater Fund Replace infrastructure past useful life ($75K/yr.) R Annual $75,000 M $75,000 Wastewater Fund Total Wastewater Fund Projects: $2,544,000 $1,819,000 $0 : To €alWai4**er'Funit Prgjeats :for ?2012 and 24I$ ::'$1$2 000:;: :'::1'62 000::;.: :::: : * Note: No funding available to pay for capital needs in 2012 or 2013. * Critical Risk: Likely to fail within next 5 years; High Risk: Likely to fail in 5-10 years; Moderate Risk is continuous increasing cost to maintain and operate. (a) Added to CIP. (b) Cost estimate revised and /or project scope revised. City of Seward Capital Improvement Plan Healthcare - Related Capital Needs 2012 and 2013 (as Revised) Project Funding Source Project Description Year Cost City Portion Other Portion Source Imaging: CT Scanner 2012 $525,000 $525,000 Hospital Fund Vascular Imaging 2013 $75,000 $75,000 Hospital Fund Mammography Upgrade 2013 $150,000 $150,000 Hospital Fund Facilities: Delivery Vehicle 2012 $25,000 $25,000 Hospital Fund Clinic: Colposcopy w /digital camera 2013 $8,800 $8,800 Hospital Fund Fetal monitor 2013 $6,000 $6,000 Hospital Fund Hospital: Remodel hospital therapy space 2013 $50,000 $50,000 Hospital Fund Two stretchers 2013 $13,400 $13,400 Hospital Fund Emergency Room: Sonosite, micromax 2013 $49,000 $49,000 Hospital Fund Portable intubation scope 2013 $8,400 $8,400 Hospital Fund Seward Mountain Haven: Sound absorption panels 2013 $7,000 $7,000 Hospital Fund Total Healthcare Related Projects: $917,600 $917,600 $0 Capital Improvement Plan Motor Pool- Related Capital Projects 2012 and 2013 (as Revised) ' New or Project Funding Source Project Description Replace Year Age Cost City Portion Other Portion Source Electric - Trailer R 2012 1995 15,000 15,000 Motor Pool Electric Truck R 2012 1982 40,000 40,000 Motor Pool Electric Tool Truck R 2012 2003 80,000 80,000 Motor Pool Fire truck R 2012 1996 450,000 450,000 Motor Pool Police Vehicle R 2012 2001 37,000 37,000 Motor Pool R 2012 4987 4 -576 76 Motor Pool Police Vehicle R 2013 1997 48,000 48,000 Motor Pool Harbor Vehicle w/ 120K miles R 2013 1999 29,000 29,000 Motor Pool Public Works - dump truck R 2013 1987 150,000 150,000 Motor Pool Total Motor Pool Fund Projects: $924,000 $150,000 $0 :`total Motor i«f4 :;.:::.: oi000 £of:go:4:an l 4U;13 :: :::: :.: :: :: `:; ;: , ::::: .:: :.:$92::Otiff::::::::`:$954;009; , .:.. .... ,.: . Notes: Fire truck purchased in 2012 from Motor Pool reserves. Harbor vehicle was on Harbor CIP list but funding source is Motor Pool. Funding of $75K for used dump truck rolled from 2012 to 2013 to combine with $75K in 2013 for total $150K due to inability to find used dump truck fo a 1 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2013 -060 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONTRACT WITH METCO INC. FOR AN AMOUNT NOT TO EXCEED $349,982.00 (BID AMOUNT $334,599.50 WITH A $15,382.50 CONTINGENCY) FOR THE DAIRY HILL DRAINAGE MITIGATION PROJECT, AND APPROPRIATING FUNDS WHEREAS, on April 18, 2012 the City of Seward was awarded a grant totaling $349,982.00 through the Division of Homeland Security to support the development of drainage ditches and replacement of culverts necessary for improving drainage on Dairy Hill; and WHEREAS, the city developed a competitive bid package for the Dairy Hill Drainage Mitigation Project and advertised according to SSC6.10.210 and SCC6.10.215; and WHEREAS, two contractors submitted bids to the City Clerk's office by 11:00 a.m. on July 2nd, 2013; and WHEREAS, the Public Works Department determined that both bids were qualified and responsive; and WHEREAS, Metco Inc. was the lowest most qualified and responsive bidder; and WHEREAS, the addition of drainage ditches and installation of culverts will not be able to proceed until the contract is awarded. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to enter into an agreement, in substantial form as attached hereto, with Metco Inc. for the Dairy Hill Drainage Mitigation Project in the amount of $334,599.50. Section 2. Funding in an amount not to exceed $349,982.00 is hereby appropriated from State Grant No. 1865.0003 in the Dairy Hill Culvert Fund grant account no. 866- 8663 - 4680 -0200 to infrastructure account no. 866- 8663 -5925. Section 3. The contingency amount of $15,382.50 can be authorized at the sole discretion of the City Manager, upon written authorization in advance. Section 4. This resolution shall take effect immediately upon its adoption. 30 CITY OF SEWARD, ALASKA RESOLUTION 2013 -060 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, on this 22 day of July, 2013. THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou Acting City Clerk (City Seal) Council Agenda Statement Meeting Date: July 22, 2013 e of sets. To: Jim Hunt, City Manager From: William Casey, Public Works q P • Agenda Item: Contract approval for the Dairy Hill Drainage Mitigation Project. BACKGROUND & JUSTIFICATION: The City of Seward was awarded a grant totaling $349,982.00 to support the development of drainage ditches and replacement of culverts necessary to improve drainage on Dairy Hill. Staff developed a competitive bid package for the Dairy Hill Drainage Mitigation Project and advertised according to SSC6.10.210 and SCC6.10.215. Two contractors submitted bids to the City Clerk's office by 11:00 a.m. on July 2 2013. The following are the bids submitted: Compilation of Bids Project: Seward Alaska — Dairy Hill Drainage Mitigation Contractor Final Bid Metco Inc. $334,599.50 Jolt Construction & Traffic Maint. Inc. $567,357.00 The Public Works Department determined that Metco Incorporated was the most responsive, qualified, low bidder with a total bid price of $334,599.50. The installation of drainage ditches and culverts will not be able to proceed until the contract is awarded. INTENT: To authorize the City Manager to enter into a contract with Metco Incorporated to install drainage ditches and culverts necessary to improve drainage on Dairy Hill. FISCAL NOTE: Funding for this project will come from State Grant #1865.0003 from the Hazard Mitigation Grant Program administered by the Department of Homeland Security, in the amount of $349,982.00. Approved by Finance Department: Jr =;,: > ," . r ATTORNEY REVIEW: Yes_ No RECOMMENDATION: 3 � Staff recommends that the Sewar 41 t aut i"ori e tie City Manager to enter into a contract with Metco Incorporated for an amount not to exceed $349,982.00 (Bid amount $334,599.50 with a $15,382.50 contingency) for the installation of drainage ditches and culverts on Dairy Hill. as Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2012 -049 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A GRANT AGREEMENT WITH THE DIVISION OF HOMELAND SECURITY AND EMERGENCY MANAGEMENT HAZARD MITIGATION PROGRAM, AND ACCEPT THE TOTAL AWARD $349,982 FOR THE DAIRY HILL DRAINAGE IMPROVEMENT PROJECT, AND APPROPRIATING FUNDS WHEREAS, the Division of Homeland Security and Emergency Management Hazard Mitigation Grant Program provides opportunities for municipalities to apply for grant monies to take critical mitigation measures to the risk of loss of life and property damage from future disasters while simultaneously reducing reliance on federal and local disaster funds; and WHEREAS, in December 2009, the City of Seward incurred $38,000 in costs to retain an engineering consultant that would collaborate with city staff to review existing data, collect new data, and prepare preliminary documents in support of a long term drainage solution for the Dairy Hill Drainage Improvements; and WHEREAS, the subtasks of the above scope of work included conducting a preliminary itaxr field survey of the project area, preparing a hydrologic and h hydraulic study specific project to the ro' Y p J P p g Y Y p P J area, conducting the preliminary design in preparation of 35% level construction drawings and conducting preliminary environmental permitting efforts; and WHEREAS, in March of 2010, city staff completed and submitted the Hazard Mitigation Grant Program Project Application; and WHEREAS, in January of 2012, the city was notified by the Division of Homeland Security and Emergency Management Hazard Mitigation Program that the application was successful; and WHEREAS, the total award amount is $349,982 and the grant does not require the city to provide monetary contributions to the project, but the grant does require city staff to participate in managing the project; and WHEREAS, the city will carefully and cooperatively assist managing this project with any involved entity to assure all efficiencies are considered and implemented to save on initial, long -term costs and stay within the project budget and timeline; and WHEREAS, the grant funds may be used to provide contractual services, engineering, design planning, permitting, project support and construction management; and j, WHEREAS, accepting the total award amount of $349,982 from the Division of Homeland CITY OF SEWARD, ALASKA RESOLUTION 2012 -049 Security and Emergency Management Hazard Mitigation Program is in the best interest of the city by allowing the city to utilize the funds to take critical mitigation measures to reduce risks associated with flooding. 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 grant agreement with the Division of Homeland Security and Emergency Management Hazard Mitigation Program, as attached hereto in substantial form, and accept the total award amount of $349,982. Section 2. The City Manager is hereby authorized to appropriate funding in the amount of $349,982 as follows: I) $262,487 from federal account no. 866- 8663 - 4680 -0100, 2) $87,495 from state grant account no. 866 - 8663- 4680 -0200 and the total amount of $349,982 is appropriated to contracted services account no. 866 -8663 -5390. 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 9 day of July 2012. THE CITY OF SEWARD, ALASKA . a illj David Seaward, 1 ayor AYES: Valdatta, Bardarson, Shafer, Casagranda, Terry, Seaward NOES: None ABSENT: Kei1 ABSTAIN: None ATTEST: •o •• a.lrf se . Of S es gg /// a ° � ` F,. V C 114:1 71,4 1 hanna Kinney, CMC „ city Clerk E ) s • eV r r 47 Council Agenda Statement t S e Meeting Date: July 9, 2012 � � F\ 1 9 r I o: City Council 4 isi�p• 'through: City Manager Jim Hunt From: William Casey Agenda Item: Authorizing the City Manager to accept a grant from the Division of Homeland Security and Emergency Management for $349,982 for the Dairy Hill Drainage Improvement Project and appropriate funds BACKGROUND & JUSTIFICATION: The Division of Homeland Security and Emergency Management Hazard Mitigation Grant Program provides opportunities for municipalities to apply for grant monies to take critical mitigation measures to the risk of loss of life and property damage from future disasters while simultaneously reducing reliance on federal and local disaster funds. In 2009, City Staff identified an area, known locally, as Dairy Hill as a high risk flood area using the FEMA benefit cost analysis software and analyzing historical data. That Subdivision was the main focus of concern because several drainages flow through the area. History has shown that during heavy rainfall events, the flows in the drainages can become severe and cause washouts of roadways, culverts and building improvements. In recent history, flood events have occurred in 1986, 1995, 2002 and 2006. All of which caused significant damage. Staff determined that some form of flood hazard mitigation was absolutely necessary so in 2009 the City of Seward incurred $38,000 in costs to retain an engineering consultant that would collaborate with City Staff to review existing data, collect new data, and prepare preliminary documents in support of a long term drainage solution for the Dairy Hill Drainage Improvements. In March of 2010, City staff completed and submitted the Hazard Mitigation Grant Program Project Application and in January of 2012, the City was notified by The Division of Homeland Security and Emergency Management Hazard Mitigation Program that application was successful. The total award amount is $349,982 and the grant does not require the City to provide monetary contributions to the project, but the grant does require City staff to participate in managing the project. Accepting the total award amount of $349,982 from the Division of Homeland Security and Emergency Management Hazard Mitigation Program is in the best interest of the City by allowing the City to utilize the funds to take critical mitigation measures to reduce risks associated with flooding. INTENT: Authorize the City Manager accept a grant agreement with the Division of Homeland Security and Emergency Management Hazard Mitigation Program, as attached hereto in substantial form, and accept the total award amount of $349,982 and appropriate funds. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): Volume 1 Page 20 Sixth ._____.. -1._- ] . Paragraph "...minimizing pollution and drainage problems... "Page 28 X 3.8.1.3 "Mitigate Flood Hazards" 2. Strategic Plan (document source here). Page 11 ` "Mitigate Flood X Hazards" Page 18 "Promote a Safe Community" 3. Other (list): X FISCAL NOTE: Appropriate funding in the amount of $349,982 as follows: 1) $262,487 from federal account no. 866- 8663 -4680 -0100, 2) $87,495 from state grant account no. 866 - 8663 - 4680 -0200 and the total amount of $349,982 is appropriated to Contracted Services account no. 866 - 8663 -5390. Approved by Finance Department :, - • ATTORNEY REVIEW,: Yes No X RECOMMENDATION: Council authorize the City Manager to enter into a grant agreement with the Division of'Homeland Security and Emergency Management Hazard Mitigation Program, as attached hereto in substantial form, and accept the total award amount of $349,982 and appropriate funds. 310 CITY OF SEWARD, ALASKA DAIRY HILL DRAINAGE IMPROVEMENTS BID NAME: Metco Inc ADDRESS:2701 Seward Hwy, Seward AK 99664 In compliance with your Invitation For Bids dated June 10th 2013 , the Undersigned proposes to furnish all equipment, material and labor required to complete the above project, within On or days of awarding the contract and issuance of Notice To Proceed. before 5/30/2014 The Undersigned hereby agrees to execute the said contract as directed or such further time as may be allowed in writing by the Contracting Officer after receiving notification of the acceptance of this bid, and it is hereby mutually understood and agreed that in case the Undersigned does not, the said Contracting Officer may proceed to award the contract to others. The Undersigned acknowledges receipt of the following addenda to the Bid Documents (give number and date of each). ADDENDA DATE ISSUED ADDENDA DATE ISSUED 1 06/24/2013 2 07/01/2013 The Undersigned has read the foregoing bid and hereby agrees to the conditions stated therein by affixing his signature below: Bidding Company Metco Inc President Si gnature ✓ Title 5733 12/31/2014 Contractor's License Number Expires 2701 Seward Hwy, Seward AK, 99664 907- 224 -3151 Business Address Telephone • Dairy Hill Drainage Page 1 of 1 Bid improvements BIDDING & CONTRACT REQUIREMENTS STATEMENT OF QUALIFICATIONS This form will be the basis of establishing the qualifications of the Construction Team for undertaking a construction project for the City of Seward. This questionnaire forms a part of the bid and failure to submit is a basis for rejection of the bid. If space for answering questions is insufficient, attachments are permitted. 1. GENERAL a. Legal Name and Address of Bidding Organization: Metco Inc 2701 Seward Hwy Seward AK, 99664 b. Name, title, and telephone number of Bidder's representative for project: David Dieckgraeff Presirlpnt, Mets.n Inn 907 - 224 -3151 c. Organization Status (Check One): X Corporation, Partnership, LLC, or Individual d. If Organization is a Corporation or Limited Liability Company: Date of incorporation or organization: , 1976 State in which incorporated or formed: _ Alaska Principal Officers, and Manager if an LLC managed by a manager: Name: Title: Date Assumed Position David Dieckgraeff President 2009 General Manager Barbara Dieckgraeff Vice President/Treasurer 1976 CFO 2. FINANCIAL a. Have you ever failed to complete a contract due to insufficient resources? Yes No _ X If yes, explain: Dairy Hill Drainage Page 1 of 3 Statement of Qualifications Improvements 2701 Seward Highway Seward, Alaska 99664 (907) 224 -3151 Office (907) 224 -3514 Fax metcoinc ©gci.net ®AIRY HILL DRAINAGE IMPROVEMENTS Statement of Qualifications Attachment P4b: Relevant Experience NE HARBOR GRADING AND DRAINAGE • Excavation and re- gradation O Installation of new storm drain catch basins Completion Date: 09/10/2012; Contract Amount: $143,695.00 Lowell Creek Water Main ® Excavate and retrieve broken water main components ® Replace water main Completion Date: 11/21/2012 Contract Amount: $42,243.00 Beach Drive Catch Basin • Install several hundred feet of drainage culvert • Install multiple storm drain manholes including oil /water separator and outfall pipe Completion Date: 06/27/2013 Contract Amount: $314,053.00 Note: The above project list represents only pertinent construction projects that are within a similar scope to the project being bid. Small residential projects and projects of dissimilar scope are omitted from this list. 3G\ .r► • CITY OF SEWARD P.O. BOX 167 SEWARD, ALASKA 99664 BID BOND DATE BOND EXECUTED July 2, 2013 PRINCIPAL (Legal name and business address) TYPE OF ORGANIZATION Metco, Inc. [ ] Individual [ ] Partnership 2701 Seward Highway [ ] Joint Venture [x] Corporation Seward, AK 99664 ******************************************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** SURETY(IES) (Name and business address) ************ * * * * * * * * * * * * * *k * * * ** *** ** * * * ** ik******************************* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** Developers Surety and Indemnity Company PO Box 19725 Irvine, CA 92623 ******************************************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** PENAL SUM OF BOND Eve Percent (5 %) of Bid Amount DATE OF BID July 2, 2013 ******************************* k************************* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** NOW, THEREFORE, (a) If said Bid shall be rejected, or in the alternate, (b) If said Bid shall be accepted and the Principal shall execute and deliver a contract in the Form of Contract attached hereto (properly completed in accordance with said Bid) and shall furnish a bond for his faithful performance of said contract, and for the payment of all persons performing labor or furnishing materials in connection therewith, and shall in all other respects perform the agreement created by the acceptance of said Bid, Dairy Hill Drainage Improvements, Seward then this obligation shall be void, otherwise the same shall remain in force and effect, it being expressly understood and agreed that the liability of the Surety for any and all claims hereunder shall in no event, exceed the penal amount of this obligation as herein stated. The Surety, for value received, hereby stipulates and agrees that the obligations of said Surety and its bond shall be in no way impaired or affected any extension of the time within which the Owner may accept such Bid: and said Surety does hereby waive notice of any such extension. IN WITNESS WHEREOF, the Principal and the Surety have hereunto set their hands and seals, and such of them as are corporations have caused their corporate seals to be hereto affixed and these presents to be signed their proper : officers, th y and year first set forth above. M o, Inc. Dee pets Slaty ; 7 d Indemriity omp y c L i y ,G w s / / � ,r)- �, j l: ( ` _ ( Yi ....) ,- I nCl ai 1f 6, De rt'iA `K Kon -in -Fact (Seal) Dairy Hill Drainage Page 1 of 1 Bid Bond Improvements LW POWER OF ATTORNEY FOR DEVELOPERS SURETY AND INDEMNITY COMPANY PO Box 19725, IRVINE, CA 92623 (949) 263-3300 KNOW ALL BY THESE PRESENTS that except as expressly limited, DEVELOPERS SURETY AND INDEMNITY COMPANY, does hereby make, constitute and appoint: ** *Kelly Michael Layman, Kristy M. Konte, James K. Brady, Kirk C. Leadbetter, Katie Booher, jointly or severally * ** as its true and lawful Attorney(s) -in -Fact, to make, execute, deliver and acknowledge, for and on behalf of said corporation, as surety, bonds, undertakings and contracts of suretyship giving and granting unto said Attomey(s) -in -Fact full power and authority to do and to perform every act necessary, requisite or proper to be done in connection therewith as each of said corporation could do, but reserving to each of said corporation full power of substitution and revocation, and all of the acts of said Attorney(s)-in-Fact, pursuant to these presents, are hereby ratified and confirmed. This Power of Attorney is granted and is signed by facsimile under and by authority of the following resolution adopted by the Board of Directors of DEVELOPERS SURETY AND INDEM- NITY COMPANY, effective as of January 1st. 2008. RESOLVED, that a combination of any two of the Chairman of the Board, the President, any Executive Vice - President, Senior Vice- President or Vice- President of the corpo- ration be, and that each of them hereby is, authorized to execute this Power of Attorney, qualifying the attorney(s) named in the Power of Attorney to execute, on behalf of the corporation, bonds, undertakings and contracts of suretyship; and that the Secretary or any Assistant Secretary of the corporation be, and each of them hereby is, authorized to attest the execution of any such Power of Attorney; RESOLVED, FURTHER, that the signatures of such officers may be affixed to any such Power of Attorney or to any certificate relating thereto by facsimile, and arty such Power of Attorney or certificate bearing such facsimile signatures shall be valid and binding upon the corporation when so affixed and in the future with respect to any bond, undertaking or contract of suretyship to which it is attached. IN WITNESS WHEREOF, DEVELOPERS SURETYAND INDEMNITY COMPANY has caused these presents to be signed by its officers and attested by its Secretary or Assistant Secre- tary this January 1st, 2008. `Y AND , j1,• ,, Daniel Young, Vice- President _ l ' Q�.• �cr Y ; o; :a 9 Stephen T. Pate, Senior Vice-President ° >� 1 3 6 • �sl ow State of California # County of Orange " "' On January 31,2011 before me, Antonio Alvarado, Notary Public Date Here Insert Name and Title of the Officer personally appeared _ Daniel Young and Stephen T. Pate of Signer(s) who proved tome on the basis of satisfactory evidence to be the person(s) whose name(s):s /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his /her /their authorized capactty(ies), and that by his/her /their signature(s) on the instrument the person(s), or the entity upon behalf of ANTONIO ALVARADO which the arsons acted, executed the instrument. ��x j, $ C.OMM. # 186{)643 p ( ) O : � � NOTARY PUBI.JC CALIFORNIA g I certify under PENALTY OF PERJURY under the laws of the Stale of California that the foregoing paragraph is ORANGE COUNTY true and correct f ' My otx rrtt. expires Aug. t � WITNESS my hand and official seal. Place Notary Seal Above Signature Antonio Alvarado, Notary Public CERTIFICATE The undersigned, as Secretary or Assistant Secretary of DEVELOPERS SURETY AND INDEMNITY COMPANY does hereby certify that the foregoing Power of Attorney remains in full force and has not been revoked and, furthe that the provisions of the resolution of the Board of Directors of said corporation set forth in the Power of Attorney are in force as of the date of this Certificate. This Certificate is executed in the City of Irvine, California, this el) day of,i / ;2178 r� regg Okuril slant Secretary ID.1438(Rev.011111) �\ CITY OF SEWARD, ALASKA DAIRY HILL DRAINAGE IMPROVEMENTS BID SCHEDULE ITEM MASS WORK DESCRIPTION ESTIMATED UNIT BID TOTAL BID NO. NO. (Unit Bid Price In Words) , QUANTITY PRICE PRICE Storm Water Pollution Prevention Plan per IS 1 20.02 Thirteen thousand, five hundred dollars. 1 $13,500.00 $13,500.00 — Exploratory Excavation per EA 2 20.03 One thousand, two hundred and fifty dollars 4 $1,250.00 $5,000.00 Clearing and Grubbing per AC 3 20.04 Ten thousand dollars. 0.5 $10,000.00 $5,000.00 Tree Removal per EA 4 20.06 One thousand, five hundred dollars. 1 $1,500.00 $1,500.00 Bedding Material (Class C) per TON 5 20.16 Twenty dollars. 460 $20.00 $9,200.00 ---- -- --° Classified Fill and Backfill (Type II -A) per TON s 20.21 Eighteen dollars. 1,260 $18.00 $22,680.00 Leveling Course per TON 7 20.22 Twenty five dollars, 270 $25.00 $6,750.00 Riprap (Class I) per CY 8 20.24 Eighty dollars. 400 $80.00 $32,000.00 Geotextile (Type C) per SY 9 20.25 Three dollars and fifty cents: 380 $3.50 $1,330.00 - °-- - -- --- fifty --- -- °-- ------- -------�__ °• Insulation Board (R -20) per SF 10 20.26 Four dollars. 288 $4.00 $1,152.00 Disposal of Unusable or Surplus Material per CY 11 20.27 Fifteen dollars. 1,830 $15.00 $27,450.00 Remove Asphalt, Replace with Asphalt Surfacing per SY 12 40.11 (Class E) Seventtr dollars. 280 $75.00 $21,000.00 Construct Open Ditch per LF 13 55.19 Twelve dollars and fifty cents. 1,137 $12.50 $14,212.50 Culvert (36 -inch, CMP, 14 guage, Round) per LF 14 55.20 Two hundred and forty dollars. ^ 182 $240.00 $43,680.00 Culvert (64 -inch x 43 -inch, CMP, 14 guage, Pipe Arch) per LF 15 55.20 Six hundred and twenty five dollars. 37 $625.00 $23,125.00 Sheet Total (Words): $ Two hundred tvventy__seven thousand hundred _a__n__d_ _ seventy -nine dollars and fifty cents. Sheet Total (Numbers): $ 227,,579.50 Name of Bidding Firm: Inc Dairy Hill Drainage Improvements Page 1 of 2 Bid Schedule CITY OF SEWARD, ALASKA DAIRY HILL DRAINAGE IMPROVEMENTS BID SCHEDULE ITEM MASS WORK DESCRIPTION ESTIMATED UNIT BID TOTAL BID NO. NO. (Unit Bid Price In Words) QUANTITY • PRICE PRICE Culvert (105 -inch x 30 -inch, CMP, Aluminum Box) per LF 16 55.20 Eight hundred and thirty dollars. 79 $830.00 $65,570.00 Furnish & Install 1 -inch Water Service Line per LF 17 60.06 One hundred and twenty dollars. 20 $120.00 $2,400.00 Relocate Water Main per EA 18 60.15 Ten thousand dollars. 1 $10,000.00 $10,000.00 Construction Survey Measurement per LS 19 65.02 Fourteen thousand dollars. 1 $14,000.00 $14,000.00 Traffic Maintenance per LS 20 70.12 Three thousand dollars. 1 $3,000.00 $3,000.00 Remove Guardrail per LF 21 70.14 Seventy dollars. 50 $70,00 $3,500.00 Concrete Jersey Barrier per LF 22 70.22 One hundred and five dollars. 50 $105.00 $5,250.00 Seeding (Schedule D) per MSF 23 75.04 Three hundred dollars. 11 $300.00 $3,300.00 Sheet Total (Words): $ One hundred seven thousand and twenty dollars. Sheet Total (Numbers): $ 107 Total Bid Amount (Numbers): $ 3342599.50 Name of Bidding Firm: Metco Inc • Dairy Hill Drainage Improvements Page 2 of 2 Bid Schedule CITY OF SEWARD, ALASKA DAIRY HILL DRAINAGE IMPROVEMENTS CONTRACT THIS CONTRACT is between City of Seward, Alaska, an Alaska municipal corporation, whose address is P.O. Box 167, Seward, Alaska 99664 (hereinafter called OWNER), and Metco Inc., an Alaska corporation, whose address is 2701 Seward Highway, Seward, Alaska 99664 (hereinafter called CONTRACTOR). OWNER and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as follows: 1. WORK CONTRACTOR shall complete Work as specified or indicated in the Contract Documents. The Work is generally described as follows: The scope of work includes furnishing and installing 460 tons of bedding material, 1,260 tons of Type II -A classified fill and backfill; 270 tons of leveling course; 400 cubic yards of riprap; 298 feet of culvert (various types and sizes); constructing 1,137 feet of open ditch; remove and replace 280 square yards of asphalt pavement; disposal of 1,830 yards of unusable or surplus material; and other miscellaneous items of work. 2. CONTRACTING OFFICER & ENGINEER 2.1. W.C. Casey is hereinafter called the CONTRACTING OFFICER and is authorized to administer the Contract on behalf of the OWNER. CONTRACTING OFFICER has authority to make findings, determinations and decisions with respect to the Contract and, when necessary, to modify or terminate the Contract. 2.2. CRW is hereinafter called the ENGINEER and is to act as OWNER's representative, assume duties and responsibilities, and have the rights and authority assigned to ENGINEER in the Contract Documents in connection with completion of the Work in accordance with the Contract Documents. 3. CONTRACT TIMES AND LIQUIDATED DAMAGES 3.1. Contract Times: 3.1.1. Work shall be completed and ready for final payment and acceptance in accordance with Article 11 of the City of Seward General Conditions no later than June 30, 2014. 3.1.2. CONTRACTOR shall achieve Substantial Completion no later than May 30, 2014. Dairy Hill Drainage Page 1 of 4 Contract Improvements LAIA 3.2. Liquidated Damages: OWNER and CONTRACTOR recognize that time is of the essence of this Agreement and that OWNER will suffer financial loss if the Work is not completed within the times specified in paragraph 3.1. Contract Times above, plus any extensions thereof allowed in accordance with Article 11 of the City of Seward General Conditions. OWNER and CONTRACTOR also recognize the delays, expense, and difficulties involved in proving in a legal or other dispute resolution proceeding the actual loss suffered by OWNER if the Work is not completed on time. Accordingly, instead of requiring any such proof, OWNER and CONTRACTOR agree that as liquidated damages for delay (but not as a penalty) CONTRACTOR shall pay OWNER $500.00 per day for each calendar day elapsing between the time stipulated for the Substantial Completion Date and /or $250 per day for each calendar day elapsing between the time stipulated for Final Completion Date and the actual date completed in accordance with the terms hereof. 4. CONTRACT AMOUNT OWNER shall pay CONTRACTOR the following Not -To- Exceed amount based on the conformed Bid, included as an Exhibit to this Agreement, subject to additions and deletions as provided in the Contract Documents: Three hundred thirty four thousand five hundred ninety nine dollars (Words) and fifty Cents $ 334,559.50 (Words) (Numbers) 5. CONTRACTOR'S REPRESENTATIONS In order to induce OWNER to enter into this Agreement, CONTRACTOR's representations are as set forth as follows: 5.1. CONTRACTOR has familiarized itself with the nature and extent of the Contract Documents, Work, site, locality, general nature of work to be performed by OWNER or others at the site that relates to Work required by the Contract Documents and local conditions and federal, state, and local Laws and Regulations that in any manner may affect cost, progress, performance, or furnishing of Work. 5.2. CONTRACTOR has correlated information known to CONTRACTOR and results of such observations, familiarizations, examinations, investigations, explorations, tests, studies, and reports with Contract Documents. 5.3. CONTRACTOR has given ENGINEER written notice of conflicts, errors, ambiguities, or discrepancies that it has discovered in the Contract Documents and the written resolution thereof by ENGINEER is acceptable to Dairy Hill Drainage Page 2 of 4 Contract Improvements CONTRACTOR, and the Contract Documents are generally sufficient to indicate and convey understanding of terms and conditions for performing and furnishing Work. 6. CONTRACT DOCUMENTS 6.1. The Contract Documents which comprise the entire Agreement between OWNER and CONTRACTOR concerning Work are defined in Article 1 of the City of Seward General Conditions. 6.2. Except for the Notice to Proceed, and Addenda, these Contract Documents are also listed in the Table of Contents and are bound in one volume, identified as Specifications and Contract Documents. 6.3. Drawings are under separate cover. 6.4. Addenda numbers 1 to 2, inclusive. 6.5. Exhibits to this Agreement include: 6.5.1. Conformed Bid Form signed by CONTRACTOR. 6.5.2. Executed Payment Bond in the amount of 100% of the Contract Amount. 6.5.3. Executed Performance Bond in the amount of 100% of the Contract Amount. 6.5.4. Alaska Contractor Certificate of Registration. 6.5.5. Alaska Business License. 6.5.6. City of Seward Business License. 6.5.7. Certificates of Insurance with Endorsements. 6.5.8. Documents submitted by CONTRACTOR prior to execution of Agreement. 6.5.9. Seward City Council Resolution 2013- 7. MISCELLANEOUS 7.1. No assignment by a party hereto of any rights under or interests in the Contract Documents will be binding on another party hereto without the written consent of the party sought to be bound; and specifically but without limitation monies that may become due and monies that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any Dairy Hill Drainage Page 3 of 4 Contract Improvements Lc0 written consent to an assignment no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents. 7.2. OWNER and CONTRACTOR each binds itself, its partners, successors, assigns, and legal representatives to the other party hereto, its partners, successors, assigns, and legal representatives in respect of all covenants, agreements, and obligations contained in the Contract Documents. IN WITNESS WHEREOF, OWNER and CONTRACTOR have signed copie(s) of this Agreement. All portions of the Contract Documents have been signed or identified by OWNER and CONTRACTOR. OWNER City of Seward, Alaska CONTRACTOR Metco Inc. James L. Hunt, City Manager avid Dieck raeff, Pre ent Date: Date: ATTEST: Brenda Ballou Acting City Clerk [City Seal] [Corporate seal] END OF SECTION Dairy Hill Drainage Page 4 of 4 Contract Improvements y�1 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2013 -061 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONSTRUCTION CONTRACT WITH HARMON CONSTRUCTION TO ERECT A STEEL BUILDING ON A PREPARED FOUNDATION, AND DESIGN AND INSTALL TIIE LIGHTING AND HEATING SYSTEMS, IN AN AMOUNT NOT TO EXCEED $478,000, ESTABLISHING A 10% CONTINGENCY FUND AND APPROPRIATING FUNDS WHEREAS, the council approved Resolution 2007 -085 which authorized the City Manager to pursue funding for two electric generators and associated components and design/build proposals for the Fort Raymond generator building and a warehouse with office space; and WHEREAS, the council approved Resolution 2012 -028 accepting a grant from the Alaska Energy Authority to upgrade and update generation facilities at the Fort Raymond Generation Plant for $3,960,000 and appropriating funds; and WHEREAS, a line item in that grant specifies that $1,400,000 of the grant was to be used to build an office /warehouse; and WHEREAS, the city developed a scope of work and advertised a competitive bid package according to SCC 6.10.210 and SCC 6.10.215; and WHEREAS, one bid was received by the required deadline of 2:00 p.m. on June 28, 2013; and WHEREAS, the city reviewed the bid and concluded Harmon Construction was the lowest, most qualified and responsive bidder with a base bid amount of $478,000; and WHEREAS, the city believes that a ten percent (10 %) contingency is necessary for a project of this magnitude to address the potential for unforeseen project costs. 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 construction contract not -to- exceed $478,000 with Harmon Construction to erect a steel building on a prepared foundation and design and install the lighting and heating systems. Section 2. Funding for this contract in an amount not -to- exceed $478,000 is hereby appropriated from account no. 505 -5052 -5930. CITY OF SEWARD, ALASKA RESOLUTION 2013 -061 Section 3. The City Manager is authorized to draw additional funds as needed to cover contingencies, in the amount not to exceed $47,800 from account 505 -5052 -5930. 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 22nd day of July, 2013. THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou Acting City Clerk (City Seal) Agenda Statement e o f s t`y 9 Meeting Date: 22 July 2013 ; �F'� �'�o To: City Council q �., P Through: City Manager Jim Hunt From: John Foutz, Electric Department Manager Agenda Item: To authorize the City Manager to enter into a construction contract with Harmon Construction to erect a steel building on a prepared foundation and design and install the lighting and heating systems. BACKGROUND & JUSTIFICATION: At the August 13, 2007 work session, the City Council gave direction to the administration to begin working to replace two generators, and to construct a building to house the generators and a warehouse with office space at the Fort Raymond site. On August 27, 2007, Council approved Resolution 2007 -085 which authorized the City Manager to pursue funding for two electric generators and associated components and design/build proposals for Fort Raymond generator building and a warehouse with office space. This project has been divided into two phases, with the generation building being Phase I and the warehouse as Phase II. Phase I is ongoing at this time. The current resolution relates to Phase II. Resolution 2012 -028 accepted a $3,960,000 grant from Alaska Energy Authority for the purpose of completing Phase I and beginning Phase II. A line item of that grant dictates that $1,400,000 of that grant will be spent on the Warehouse. The City developed a scope of work and advertised a competitive bid package according to SCC 6.10.210 and SCC 6.10.215. Out of six Plan Holders, there was one responsive proposal. The proposals were opened and analyzed according to the criteria presented to Council in the City Manager's report on June 10th. The successful proposer was Harmon Construction with a bid of $478,000. INTENT: To authorize the City Manager to enter into a construction contract with Harmon Construction to erect a steel building on a prepared foundation and design and install the lighting and heating systems in an amount not to exceed $478,000 and establishing a 10% contingency and appropriating funds from account number 505 -5052 -5910. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (1.3, 3.7.3.1, 3.7.3.2): X 2. Strategic Plan (document source here): X 3. Other (list): X FISCAL NOTE: Total amount not to exceed $525,800, being the sum of $478,000 and a 10% contingency of $47,800 from account 505 -5052 -5930, funded in from AEA Grant #7910011, already accepted. L Approved by Finance Department: • ATTORNEY REVIEW: Yes X No City Attorney provided contract template. RECOMMENDATION: Authorize the City Manager to enter int�sfruction contract with Harmon Construction to erect a steel building on a prepared foundation and design and install the lighting and heating systems in an amount not to exceed $478,000 and establishing a 10% contingency fund and appropriating funds from account number 505 -5052 -5930. 5' Sponsored by: Oates CITY OF SEWARD, ALASKA RESOLUTION 2007 -085 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PURSUE FUNDING FOR TWO ELECTRIC GENERATORS AND ASSOCIATED COMPONENTS AND DESIGN /BUILD PROPOSALS FOR FORT RAYMOND GENERATOR BUILDING AND A WAREHOUSE WITH OFFICE SPACE WHEREAS, as a direct result of damage to the manufacturing plants caused by Hurricane Katrina, the manufacturer of replacement parts for the ALCO generators are no longer providing parts, resulting in two of the City's ALCO generators needing to be replaced immediately, or risk the loss of consistent energy for the community when a generator fails; and WHEREAS, constructing a building to house the replacement generators is the best permanent solution and allows for improved generator control systems, as well as maximizes the useful life of the generators; and WHEREAS, the Electric Department has been sharing numerous buildings around the City for material and equipment storage and the current arrangements are no longer adequate to meet the needs of the department; and WHEREAS, the construction of a combined generator facility and a warehouse with office space would result in long -term cost savings to the City and would improve efficiencies in the department; and WHEREAS, the property located on Lot 6A -1, Fort Raymond Subdivision, Replat No. 2, which is also the location of the City's emergency generators, is owned by the City and is zoned institutional; and WHEREAS, this location has easy access for customers and is close to our new areas of development and would provide for increased security of the City's generation and distribution facilities. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City administration is authorized to pursue acquisition of two replacement generators, and to pursue a design/build process, including associated facility plans, for the construction of new facilities for the Electric Department on Lot 5A -1, Fort Raymond Subdivision, Replat No.2. CITY OF SEWARD, ALASKA RESOLUTION 2007 -085 Section 2. The City Administration is authorized to pursue any and all funding sources. 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 27th day of August, 2007. THE CITY OF SEWARD, ALASKA 4 /Let. Vanta Shafer, Mayor AYES: Dunham, Valdatta, Schafer, Bardarson, Thomas, Amberg, Shafer NOES: None ABSENT: None ABSTAIN: None ATTEST: tip` c'L Jean ; ewis, CMt, City Clerk A On a OF SF .4 4® , 1� t oe. .p` r ti • 1 . (City Seal) ®1 S #:a :; e o ` fin\ ;!�' ; , ^ • y w 44 OF hipititot 53 Council Agenda Statement Meeting Date: August 27, 2007 4 t yq, A off.} Through: Phillip Oates, City Manager 4 , 1i p From: Tim Barnum, Electric Utility Manager Agenda Item: Authorizing the City Manager to pursue funding and design/build proposals for Fort Raymond generator building, two generators and a warehouse with office space BACKGROUND & JUSTIFICATION: After the August 13 work session, direction was given to begin working towards replacing 2 generators, a building to house the generators and a warehouse with office space at the Fort Raymond site. The Electric Department is proposing the following approach to achieve completion of this direction: > Purchase two generators > RFP for design/build of a generator building and warehouse. > Evaluate proposals based on specific criteria (design, cost, time to construct, ability to phase construction, etc.). > Secure funding > Begin Phase I construction (Generator building and installation of generators and controls) > Begin Phase II construction (Warehouse with office space) This approach is being proposed to reduce engineering cost and improve overall efficiencies of the project. It gives us a total package cost, allowing for efficiencies built into design and construction schedule. Allows for phasing of the project if needed. 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 estimated cost to purchase two generators, upgrade electronic controls, and construct a warehouse with office space is $8 million. Approved by Finance Department: RECOMMENDATION: City Council approve Resolution 2007- authorizing the City Manager to pursue funding for two electric generators and design/build proposals for Fort Raymond generator building and a warehouse with office space. Sponsored by: Hunt Postponed from: May 14, 2012 CITY OF SEWARD, ALASKA RESOLUTION 2012 -028 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING A GRANT FROM ALASKA ENERGY AUTHORITY TO UPGRADE AND UPDATE GENERATION FACILITIES AT FORT RAYMOND GENERATION PLANT FOR $3,960,000 AND APPROPRIATING FUNDS WHEREAS, the City of Seward relies on the backup generation facility in times of emergency; and WHEREAS, an update and reliable backup generation facility is in the best interest of the community; and WHEREAS, Council intends the warehouse proposed in the project be designed as storage, dry room, and limited to union offices; and WHEREAS, pursuant to the HB 108 for outright grant of funds, Alaska Energy Authority #7910011 provides funds to update and upgrade the generation facilities at Fort Raymond to permit a more reliable generation plant; and WHEREAS, the grant was awarded by the State on July 1, 2011; and WHEREAS, these funds are allocated by the State to complete the Fort Raymond Generation Substation Upgrade; and WHEREAS, the funds to accomplish the work is expected to total $4,164,010 of which $3,960,000 is an outright grant through AEA and $204,010 represents work to be accomplished within the operational budget of the Electric Department. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Seward City Council hereby authorizes the City Manager to accept AEA Grant #7910011 to upgrade and update generation facilities at Fort Raymond Generation Plant, and accepts grant funds in the amount of $3,960,000 to Standby Generator Plant Grant Revenue Account No. 505 -5052- 4680 -0200. Section 2. This resolution shall take effect immediately upon its adoption. 1 CITY OF SEWARD, ALASKA RESOLUTION 2012 -028 PASSED AND APPROVED by the City Council of the City of Seward, Alaska this 11` day of June, 2012. THE CITY OF SEWARD, ALASKA David Seaward( ayor AYES: Valdatta, Bardarson, Shafer, Casagranda, Terry, Seaward NOES: None ABSENT: Keil ABSTAIN: None ATTEST: e /S7 r ohanna Kinney, CMC City Clerk (City Seal) ' � 0 ,......,,,, * •s.64 OF SE wq'' • a a SEAL ) • , • %. '* M r F O F P►•�O ••. eta .r. • • j Agenda Statement f .4 se 9 Meeting Date: May 14, 2012 a y ►' �90 To: City Council s Through: Jim Hunt, City Manager From: John Foutz, Utility Manager Agenda Item: Accept Alaska Energy Authority grant #7910011 BACKGROUND & JUSTIFICATION: Grant Agreement #7910011 from the State of Alaska through Alaska Energy Authority (AEA) provides funds to update and upgrade the generation facilities at Fort Raymond to permit a more reliable generation plant. Two contracts will be presented to the council, separate from the grant acceptance, allocating the grant funds to the winning bidders for integrating the controls and for the building. The grant was awarded by the State on July 1, 2011, in the amount of $4,000,000.00, AEA has taken 1% ($40,000) as administrative fees. The funds to accomplish the work are expected to total $4,164, 010, of which $3,960,000 is an outright grant from AEA and $204,010 represents work to be accomplished within the operations budget of the Electric Department. INTENT: Council authorize the City Manager to accept AEA Grant #7910011 to upgrade and update the facilities at Fort Raymond Generation Plant. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan : Sections 1, 3, 3.7.3.1 and 3.7.3.2 X 2, Strategic Plan (document source here): X 3. Other (list): X 1 FISCAL NOTE: The grant amount from the State of Alaska is $4,000,000 and Alaska Energy Authority is taking 1% or $40,000 as administration fees. The initial projected cost estimated by Jack Anderson with Dryden & LaRue (A subsidiary of EPS) is $4,197,010 and is divided into design and construction of the generation facility at $1,749,250, engineering and construction of warehouse /administrative facility for $1,400,000, engineering at $314,925, and Contingency at $692,835. The amount over $4,000,000 is expected to be match by the City of Seward. Since the $4,000,000 is granted by the State, then the funds do not impact the city's electric department operating expense. The $197,010, if used, will come from the electric department's reserves. Approved by Finance Department: ,,/� .ttju-/ ATTORNEY REVIEW: Yes No X RECOMMENDATION: C:ounci I approve Resolution 2012 - d authorizing the City Manager to accept grant funds by the state through Alaska Energy Authority for the intended use of upgrading and updating the Fort Raymond Generation Facility. CONSTRUCTION AGREEMENT BETWEEN THE CITY OF SEWARD AND HARMON CONSTRUCTION, INC. BETWEEN: CITY OF SEWARD, ALASKA THE ( "City ") Post Office Box 167 Seward, Alaska 99664 and HARMON CONSTRUCTION, INC. ("Contractor") P.O. Box 1650 Seward, Alaska 99664 -1650 The City and Contractor agree as follows: SCOPE OF WORK Contractor shall furnish all materials, labor and equipment necessary for the erection of a steel building on a prepared foundation. The contractor shall also design the interior lighting and heating systems and install those lighting and heating systems. Materials for those systems shall, except for minor incidentals, be purchased by the City of Seward. Contract also includes roughing out such electrical, plumbing or other systems as may be needed in the personnel spaces. TERM Contractor agrees to commence the Scope of Work of this Agreement, as described in the Request for Proposals, immediately upon execution of this Agreement. Work shall be completed according to the schedule described in the Request for Proposals and Contractor's Proposal, and all Work shall be complete within three months from the date stage 1 (foundation) is complete. Substantial Completion is to be not later than 07 January 2014, with final completion not later than 26 January 2014. DELIVERY Contractor shall deliver all materials and perform all labor and services necessary to complete the Scope of Work in Seward, Alaska, as specified in the Request for Proposals and Contractor's Proposal. Contractor is expressly allocated the risk of any loss associated with the delivery of materials, which the Contractor has ordered, including injury to third parties until the City takes possession. Building Erection Construction Agreement Page 1 of 6 July 3, 2013 CONTRACT PRICE Following receipt of periodic invoices from Contractor, the City agrees to pay Contractor the amounts as follows for Work actually delivered, completed, and accepted by the City: 1. For completion of the Work constituting the Design Development Phase (Phase 1) the City shall pay contractor $30,000.00; 2. For completion of the Work constituting the Construction Documents Phase (Phase 2) the City shall pay the contractor $10,000.00; and 3. For completion of the Work constituting the Construction Phase (Phase 3) the City shall pay the Contractor $438,000.00. 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 Proposals dated 31 May, 2013. 3. Seward City Council Resolution 2013 -0XX 4. Instructions to Proposers 5. Contractor's Proposal dated 28 June 2013 MATERIALS AND WORKMANSHIP All materials furnished by Contractor 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 the City through the City's Contracting Officer ( "Change Order "). The Contracting Officer shall be Ron Long, Seward Community Development Director, and any successor or authorized representative. 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 of the parties and agreed to in advance in writing. SUBCONTRACTORS / THIRD PARTIES Contractor 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 Contractor. 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 Building Erection Construction Agreement Page 2 of 6 • July 3, 2013 (0` od . 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 of the 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 nor 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 law of the State of Alaska shall govern the rights and obligations of the parties and interpretation of this Agreement. Venue for any legal actions arising from this Agreement shall be in Anchorage, Alaska. COMPLIANCE WITH LAWS/ PAYMENT AND PERFORMANCE BONDS Contractor shall obtain, at its own expense, all necessary 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 payment and performance bond in the full amount of this Agreement ($478,000), insurance certificates, and contractor's license and bonding information. DEFAULT, REMEDIES, LIQUIDATED DAMAGES Contractor's failure to comply with any representation or warranty made in the Contract Documents shall be considered an event of default. In addition, Contractor's 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 Contractor 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 Contractor or to terminate this Agreement upon ten (10) days written notice to Contractor. The City, upon termination of this Agreement, shall have the right but not the obligation to accept performance of the Scope of Work up to the date of termination. Upon termination as a result of Contractor's 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 Contractor for the Scope of Work completed to such date to the extent that such Work conforms to this Agreement. Building Erection Construction Agreement Page 3 of 6 July 3, 2013 Amounts owed to either party pursuant to this paragraph may be offset. Remedies described herein are not exclusive and the City retains all other rights and remedies at law or in equity. The City and Contractor recognize that time is of the essence of this Agreement and that The City will suffer financial loss if the Work is not completed within the times specified in paragraph 2 of this page above, plus any extensions thereof allowed by the Contracting Officer. The City and Contractor also recognize the delays, expense, and difficulties involved in proving in a legal or other dispute resolution proceeding the actual loss suffered by The City if the Work is not completed on time. Accordingly, instead of requiring any such proof, The City and Contractor agree that as liquidated damages for delay (but not as a penalty) Contractor shall pay City $500.00 per day for each calendar day elapsing between the time stipulated for the Substantial Completion Date and /or $250 per day for each calendar day elapsing between the time stipulated for Final Completion Date and the actual date completed in accordance with the terms hereof. TIMELINESS Time is of the essence for this Agreement. REPAIR OF DAMAGES CAUSED BY CONTRACTOR 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 Contractor, its subcontractors or its employees, shall promptly be remedied by Contractor 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 Contractor 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 Contractor. 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 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 Contractor 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 Contractor's performance under the terms of this Agreement, excepting only liability arising out of the sole, gross negligence of the City. It is permissible, within the terms of this contract, for the Contractor's Engineer or Engineering Sub - Contractor to provide the certificate of Professional Liability insurance. Building Erection Construction Agreement Page 4 of 6 July 3, 2013 Without limiting Contractor's obligations stated above in this paragraph, it is agreed that Contractor 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/ $2 Million aggregate Worker's Compensation /Employer Liability As required by statute Automobile Liability - Covering bodily injury and $1 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. Contractor shall procure insurance for full replacement value and to adequately insure against the loss of or damage to materials during shipment and at all times in Contractor's possession. Costs of shipping and other insurance are covered by the contract price. Contractor's insurance policies shall contain the following clauses: 1. With the exception of Workers Compensation and Professional Liability insurances, 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 Contractor. 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 in the State of Alaska and acceptable to the City. 5. Contractor 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. Building Erection Construction Agreement Page 5 of 6 July 3, 2013 ASSIGNMENT PROHIBITED Any assignment by Contractor of its interest or responsibilities in any part of this shall be void and any attempt by Contractor to assign any part of its interest 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 HARMON CONSTRUCTION, INC. GZC+�12'Gv James Hunt, Hunt, City Manager Lawrence Harmon, President DATE: DATE: 7 - /Q -- /,,? ATTEST: Brenda Ballow, Acting City Clerk Date: (City Seal) Building Erection Construction Agreement Page 6 of 6 July 3, 2013 L Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2013 -062 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO PURCHASE A REPLACEMENT VEHICLE IN THE FORM OF A SMALL 4 -WHEEL DRIVE SPORT UTILITY VEHICLE TO REPLACE THE 1999 FORD PICKUP AT THE HARBOR AND APPROPRIATING FUNDS IN THE AMOUNT OF $22,891 WHEREAS, the Harbor Department's vehicle #457 is 14 years old, with more than 120,000 miles, and it requires frequent maintenance to keep it serviceable; and WHEREAS, the motor pool fund includes monies for the Harbor Department to replace a passenger vehicle; and WHEREAS, a more reliable and economical vehicle is desired; and WHEREAS, the Harbor Department identified a small 4 -wheel drive Sport Utility Vehicle (SUV) that will fulfill its needs, as well as reduce fuel consumption for the city; and WHEREAS, the old 1999 Ford pickup truck will be placed in the next surplus sale; and WHEREAS, in accordance with City Code, the Harbor Department wants to make the purchase by using the State of Alaska's purchasing contract. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to purchase a small SUV using the State of Alaska's purchasing contract in an amount not to exceed $22,891. Section 2. The funds will be appropriated from fund no. 102- 0000 -3050 to the Motor Pool Purchase account number 102 - 1020 -5930. Section 3. Upon receipt of the new vehicle, the old 1999 Ford pickup truck vehicle #457 will be declared surplus to the city's needs and will be offered in the next public auction. Section 4. This resolution shall take effect immediately upon its adoption. iz>tP CITY OF SEWARD, ALASKA RESOLUTION 2013 -062 PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 22 " day of July, 2013. THE CITY OF SEWARD, ALASKA David Seaward, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou Acting City Clerk (City Seal) Agenda Statement Meeting Date: July 22, 2013 1 4 kAS0P To: City Council • Through: City Manager Jim Hunt From: Mack Funk, Harbormaster Agenda Item: Purchase of New Vehicle to replace vehicle number 457 BACKGROUND & JUSTIFICATION: The Harbor Department needs to replace a passenger vehicle and that requires advance City Council approval. The Harbor has five vehicles. The Harbor Department's plan is to replace the oldest, and most worn -out pickup with a small Sport Utility Vehicle (SUV) that would be more economical from a fuel and maintenance perspective. The City's "Bird" plan stated that both this vehicle (457) and vehicle 455 were scheduled for replacement in 2012. On Tuesday July 2, 2013 the 457 pickup blew out a spark plug. Upon inspection the threads are stripped and the head (and engine) will need to be removed in order to make the repair. Ten days earlier the windshield wipers failed and several hours of labor were required. The windshield is cracked all the way across. In the spring of 2012, major repairs were made to extend the life of the vehicle, but now it is parked- out of service. This table summarizes the Harbor's passenger vehicles: Number Vehicle Make Year Mileage 462 Flatbed with lift gate and Chevrolet 2011 22,169 snow plow 453 Pickup Dodge 2004 72,731 465 Pickup Dodge 2003 59,921 455 Flatbed with crane for Chevrolet 2001 103,115 picking oil barrels 457 Pickup Ford 1999 120,655 The Harbor recommends the purchase of a small SUV using the state bidding list. According to the City Code SCC 6.10.120.B, "The city may utilize competitive bids obtained by other governmental units." The listed price of the new vehicle is $22,891. The old pickup would be declared surplus property and sold. INTENT: To purchase a safe, reliable and economical vehicle to replace a worn out pickup. ln� CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): X 2. Strategic Plan (document source here): X 3. Other: Motor pool fund and "Bird" report X FISCAL NOTE: Funds will be appropriated from account no. 102 - 0000 -3050 to account no. 102 - 1020 -5930 in the amount of $22,891 for this purchase. Approved by Finance Department: ti ATTORNEY REVIEW: Yes No X RECOMMENDATION: ��.. Council approve Resolution 2013- O&%authorizing the City Manager to approve the purchase of a Small Sport Utility Vehicle for $22,891 and declare the 1999 Ford pickup number 457 as surplus public property to be sold after the new vehicle is received. 6°1 CITY OF SEWAR!) MOTOR POOL FUND CAPITAL REPLACEMENT REQUIREMENT S Year to Years to Total Mlles/tlrspe Condition & Years till 100K replace replace Unit Year Vehicle Replace Cost Miles/Hours r year man age miles or moo bra based on based on hours/miles age 2011 Replacement 221 1995 Ford 65,866 4,391 Poor 8 2017 2005 19,000 131 1992 Flatbed 65,128 3,831 Poor 9 2018 2002 45,000 120 1988 Flatbed 66,845 3,342 Poor 10 2019 1998 45,000 256 1997 Exped 99,120 8,260 Fair 0 2009 2007 48,000 131 1992 Sander 65,128 3,831 Poor 9 2018 2002 45,000 135 2000 U. trailer Poor /12 NA 2012 40,000 152 1973 Sewer jet ? ? Poor /10 No data 1983 40,000 361 1981 Fire 2,653 98 Poor /15 100K NA 1996 400,000 truck* 503 1988 Bucket 5,534 205 Poor /10 8000 2021 1998 400,000 trk 506 Trailer Poor /12 NA 15,000 508 1961 Trailer Poor /12 NA 1973 15,000 515 1973 Dozer New Meter Poor /15 10000 No data 1988 200,000 • 351 1965 Pumper 10000 238 Poor /15 100K 2009 2009 400,000 525b 2000 Loader 8,190 910 Poor /15 10000 2010 2015 250,000 S 1,962,000 2012 Replacement 202 1999 Dodge 79,921 7,992 Fair 3 2012 2009 39,000 119 1993 GMC 83,679 4,922 Fair 4 2012 2003 25,000 106 2006 Grader 5,036 1,679 /15 15000 2012 2021 220,800 157 1997 Backhoe 5,339 445 Fair /15 5000 2009 2012 100,000 454 1988 25' Boat /10 NA 1998 30,000 455 2001 Flatbed 67,618 8,452 Fair 4 2012 2011 45,000 ---� 457 1999 Ford 80,766 8,077 Fair 4 2013 2009 39,000 �� 458 1988 Boat Fair /12 NA 2000 12,000 trailer 459 21' Boat Fair /10 NA 22,000 501 1992 Cat dozer 1.859 109 Fair /5 10000 2084 2007 180,000 510 1995 Trailer Fair /12 NA 2007 15,000 110 1999 Sweeper] 4,682 468 /7 5000 2009 2006 451 1996 Trailer /12 2008 15,000 463 1982 Grader 15 15000 1997 220,800 554 2005 Ambulan 1,033 258 5 80K 2315 2010 250,000 $ 1,213,600 •, Italicized replacement cost figures require refinement; baste on cost estimate at this time. Page 2 of 5 10 City of Seward, Alaska City Council Minutes June 10, 2013 Volume 39, Page CALL TO ORDER The June 10, 2013 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor David Seaward. OPENING CEREMONY Lt. Louis Tiner led the Pledge of Allegiance to the flag. ROLL CALL There were present: David Seaward presiding and Vanta Shafer Bob Valdatta Ristine Casagranda Jean Bardarson Christy Terry comprising a quorum of the Council; and Jim Hunt, City Manager Brenda Ballou, Deputy City Clerk Absent — Marianna Keil CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING - None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Bardarson /Shafer) Approval of Agenda and Consent Agenda Vice Mayor Bardarson pulled the non - objection to the liquor license applications for Eagle River Brewing Company and Woody's Thai Kitchen from the consent agenda. Motion Passed Unanimous The clerk read the following approved consent agenda items: The May 28, 2013 City Council Regular Meeting Minutes and the May 28, 2013 City Council Special Meeting Minutes were approved. Resolution 2013 -041, Authorizing The Discharge Of Fireworks By The Chamber Of Commerce During The 2013 Fourth Of July Celebration. Resolution 2013 -042, Supporting The Development Of A Multi -Modal Trail In Proximity To Herman Leirer Road. `�l City of Seward, Alaska City Council Minutes June 10, 2013 Volume 39, Page Resolution 2013 -043, Authorizing $35,088.80 From The Harbor Reserve Account To The Harbor Travelift Infrastructure Account To Pave The Road And Turnaround Area For The 50 Ton Travelift And Appropriating Funds. Resolution 2013 -044, Appointing Jean Lewis As Temporary Deputy City Clerk. Resolution 2013 -045, Declaring That The City Of Seward Is Officially A Purple Heart City. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards In Memoriam Certificate for George Gerald "Jerry" Tuthill. Borough Assembly Report, Sue McClure stated the Assembly had met twice since her last report. The Assembly approved a contract for roof replacements for the Cooper Landing/Moose Pass schools, had passed a resolution of support for the multi -modal trail along Herman Leirer road, and passed a very lean budget with a nominal increase to the mill rate at the Bear Creek Fire Service Area to pay off the bond for the new Kenai Peninsula Borough multi -use facility building at Mile 5. The borough accepted and appropriated funds from State Homeland Security as reimbursement for the September 2012 flooding event, and the Assembly passed a fiscal note policy for ordinances related to new development for projects over $5,000. At the June 18, 2013 the Assembly would be addressing the topic of protection for anadromous streams, and on July 2, 2013, there would be a controversial ordinance to repeal two -term limits for Assembly members. City Manager's Report, City Manager Jim Hunt stated there had been no purchase orders approved for between $10,000 and $50,000 since the last council meeting. The Electric Department was going out to bid for the painting of four substation transformers, including the Lawing, Spring Creek and Ft. Raymond locations. Any expected outages due to this project or its related maintenance would be announced. The Electric Department would also be issuing a Request for Proposals for the construction of the pre- fabricated warehouse building. The proposal scoring criteria was: Qualifications 50% Schedule 15% Deliverables 5% Price 30% The city completed negotiations for the collective bargaining agreement with the International Brotherhood of Electrical Workers (IBEW) union starting July 1, 2013. The Planning & Zoning Commission endorsed plans for warehouse, sidewalk, pedestrian path and drainage for purging the city wells. Kristie Lyman was hired as the new office worker at the harbor. One acceptable bid was received for the impounded vessel John Calvin. The Compass Rose at the Mariners' Memorial was under construction. Sales tax revenues for first quarter 2013 were down 0.64% from the same period in 2012. �oZ City of Seward, Alaska City Council Minutes June 10, 2013 Volume 39, Pale The annual budget was predicted on an assumed increase in sales tax revenues due to an expected increase in taxable sales. It was possible that sales tax revenues for the first quarter would be modified as a result of businesses either paying late or modifying their sales tax returns. The Providence Seward Medical Center was undergoing some modifications, including road grading to improve drainage, upgrading the heated sidewalk, and modifications to improve the transport of stretchers to the helipad area. In addition, the new CT scan machine was expected to be installed in July. A new culvert at Barnwell Street had been installed, the Wastewater Department was working on a subdivision agreement related to the Gateway Subdivision Addition #2 replat referred to as the North Seward Water Storage Tank, and the sludge compost pile (from 1991) were tested again recently and were determined to be Class A bio- solids. A new waterline was installed to S -Float an invitation to bid was released for the Dairy Hill Drainage project. Campground revenue for May 2013 was up slightly over 2012. Assistant City Manager Ron Long said he attended a "Promise of the Arctic" Conference in Seattle, Washington which focused on arctic ports and maritime transportation. Last week he attended the World Trade Center's Tourism and Trade Conference in Anchorage, Alaska where they specific ally addressed the difficulties foreign tourists were having in getting visas to come to the United States and Alaska to work. Long had lunch with representatives from the Rasmussen Foundation and discussed the SMIC and Coastal Villages projects. He also had traveled to Barrow and a visit to lobbyist Kent Dawson was planned. Casagranda asked for clarification on how in -house worked into the bidding process for the electric warehouse project. Utilities Manager John Foutz said in -house work was not in the actual building of the warehouse and said there were two pieces to the project: the civil site work for the warehouse, and the electric generators, some of which might be handled in- house. Bardarson said the two exchange students going to Japan had inventoried and documented the Japanese gifts the city had received over the years as a way of saying "Thank you" to council for granting them a travel stipend. Deputy City Clerk Brenda Ballou explained to council how these gifts were inventoried and would be displayed, and also what the trophies on display in council chambers tonight from Japan were for and their historic significance. Other Reports, Announcements and Presentations PUBLIC HEARINGS - None UNFINISHED BUSINESS - None NEW BUSINESS Resolution 2013 -046, Submitting An Advisory Ballot Proposition To The Qualified Voters At The October 1, 2013 Regular Municipal Election Regarding Whether The Mill Rate Should Be Increased By .77 Mills In Property Taxes To Generate A Revenue Source For Repayment Of The $3.48 Million General Obligation Bond For The Construction Of The Seward Community Library Museum. City of Seward, Alaska City Council Minutes June 10, 2013 Volume 39, Page Motion (Valdatta /Seaward) Approve Resolution 2013 -046 Seaward explained that his intent was to provide the tax payers the opportunity to advise council on their wishes. He said this mill rate increase would go to pay for construction costs only, and not cover operating costs. He said he personally did not support this, but he wanted to give citizens the option to provide their advice. Valdatta said if council had passed the alcohol and tobacco tax, they wouldn't have to go here. He thought it was time for non - profits and others to pay their fair share and council could not keep tapping the general fund. Terry said citizens had been telling her that it is cost - prohibitive for young families to live in Seward. She said an advisory vote was not the only way to obtain citizen feedback and suggested that they hold a public hearing instead. There had been an advisory vote done in 2010 and the results at that time indicated clearly that people did not want a property tax increase. She said it was very difficult for working class families in town, and required double incomes in order to get by. Shafer said she also did not support an advisory vote because it morally obligated council to adhere to the results. She did not want to bind a future council with the burden of an advisory vote. She wanted to wait until it became known what the actual operating costs would be for the new library museum. Casagranda thought that interest rates were lower than 3.99% and Long explained that was the rate at which the bond was released, and that general obligation bonds were issued at a different rate than other bonds. He reiterated that these bonds had been issued under the full faith and credit of the City of Seward. Although Casagranda appreciated and respected Seaward bringing forward this resolution, she also could not support it. Motion Failed Yes: Valdatta, Seaward No: Shafer, Terry, Casagranda, Bardarson Other New Business Non - objection to the liquor license applications for Eagle River Brewing Company and Woody's Thai Kitchen. Bardarson declared a potential conflict of interest because she was the landlord for Woody's Thai Kitchen building. She stated the rent would not change, regardless of the outcome of this issue. Seaward ruled a conflict did not exist. Motion to Divide the Question (Terry) Divide The Question In Order To Handle Each Liquor License Application Separately. Motion to Divide the Question Passed Unanimous Consent City of Seward, Alaska City Council Minutes June 10, 2013 Volume 39, Page Approve the Restaurant Designation Permit application for Woody's Thai Kitchen. Motion (Terry/Bardarson) Non - Objection to the Restaurant Designation Permit #5239 application for Woody's Thai Kitchen. Ballou explained the distinction between "non- objection" and "approval" as it related to the ABC Board requirements for this permit. Motion to Amend (Terry /Casagranda) Amend the motion by striking the word "Non- objection to" and replacing it with the word "Approve ". Main to Amend Passed Unanimous Consent Main Motion Passed Unanimous Consent Non - objection to the liquor license application for Eagle River Brewing Company. Motion (Terry/Bardarson) Non - objection to the liquor license #5243 application for Eagle River Brewing Company. Motion Passed Unanimous Consent INFORMATIONAL ITEMS AND REPORTS May 30, 2013 letter from Obihiro, accepting Seward 's Invitation to attend the 110` Anniversary of Founder 's Day. COUNCIL COMMENTS Bardarson thanked the City of Obihiro, Japan for the Silver Salmon Derby and Mt. Marathon trophies. Terry welcomed several new businesses into the city. Seaward thanked everyone for attending. CITIZEN COMMENTS Kate Rullman introduced herself as the new Library Museum Collections Coordinator. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS - None �. 5 City of Seward, Alaska City Council Minutes June 10, 2013 Volume 39, Page ADJOURNMENT The meeting was adjourned at 8:50 p.m. Brenda Ballou David Seaward Deputy City Clerk Mayor (City Seal) City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page CALL TO ORDER The June 24, 2013 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor David Seaward. OPENING CEREMONY Police Chief Tom Clemons led the Pledge of Allegiance to the flag. ROLL CALL There were present: David Seaward presiding and Vanta Shafer Bob Valdatta Ristine Casagranda Jean Bardarson Christy Terry Marianna Keil comprising a quorum of the Council; and Jim Hunt, City Manager Brenda Ballou, Acting City Clerk Jean Lewis, Temporary Deputy City Clerk Cheryl Brooking, City Attorney Absent — None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Marilyn Sutherland commented that bed tax revenues should be utilized for the upkeep of the city's infrastructure such as sidewalks, roads, water /wastewater, etc. If the infrastructure was not properly maintained, the city would have a huge liability. She wished the Chamber of Commerce would continue to receive some funding for marketing, but wanted most of the money going towards the city's infrastructure. Tom Swann stated he had been in the bed and breakfast business for ten years and had never lost customers because of bed taxes. He thought it was a great source of revenue that offset the cost of being in the tourist industry. Swaim also felt it was essential for the Chamber of Commerce to be given a portion of the bed tax money for marketing. APPROVAL OF AGENDA AND CONSENT AGENDA . Motion (Bardarson/Keil) Approval of Agenda and Consent Agenda Keil pulled Resolution 2013 -051 from the consent agenda to correct information in the packet. 1� City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page Motion Passed Unanimous The clerk read the following approved consent agenda items: Ordinances for Introduction Ordinance 2013 -010, Amending Portions Of Seward City Code 15.25. Floodplain Management To Adopt The Digital Floodplain Rate Maps (DFIRM) And The Flood Insurance Study (FIS) Dated September 27, 2013 As Established By FEMA And Update Portions Of Chapter 15.25 To Minimum FEMA Requirements. Resolution 2013 -049, Accepting Funds From The Alaska Online With Libraries (OWL) Project For An AWE Early Literacy Station In The Amount Of $2,953.00 And Appropriating Funds. Resolution 2013 -050, Authorizing The City Manager To Sign An Extension Of A Special Services Contract Between The City Of Seward And The Department Of Public Safety Providing Dispatch And Clerical Services To Public Safety Employees In The Seward Area For Forty Eight Thousand And Five Hundred Dollars ($48,500.00). Resolution 2013 -052, Authorizing The City Manager To Enter Into A Revised Contract With The International Brotherhood Of Electrical Workers (IBEW) Effective July 1, 2013 And Ending June 30, 2016. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards - None Chamber of Commerce Report, Cindy Clock stated the 2014 membership decal stickers were in, and the halibut derby was going well with a 166.8 pound halibut caught off the vessel Cisco Kid. She thanked all the businesses that sold tickets, people that volunteered at the weigh in station, and also thanked all the Captains and anglers that participated. Clock stated a gentleman named Jake Collins from Wasilla was the new face at Edward Jones. She referred Council to an informational laydown she provided which showed bed tax across the state. Soldotna was now thinking of implementing a similar bed tax. Clock referred to nine hotels, 31 Bed and Breakfasts, seven lodges and five vacation rental businesses that the Chamber knew of because they were members. She strongly supported the bed tax which she said was responsible for decreasing taxpayer liability. Clock reminded that the 1995 ordinance was approved by a majority vote to generate year round employment and to market the community for year round investment. The Chamber spent bed tax money on such items as brochures, videos, travel to sport and trade shows, etc., and always reported those expenditures to the city council. She spoke about the certificate of insurance underwriter's decision that no candy be thrown during the 4 of July parade. City Manager's Report, City Manager Jim Hunt stated a purchase order was issued through the Electric Department to Valley Power Systems for $17,700 for repair parts for generator #2. Contractors were planning to move the modular units to be used in the construction of the new -T City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page AVTEC dorms the week of July 29. Administration had requested assistance from the Army Corp of Engineers to perform mandated tunnel inspection on the Lowell Canyon Diversion wall. Since Kate Rullman started work as the new Library Museum Collections Coordinator, the Library Museum was fully staffed. Scott Carrlee, Curator of Museum Services was invited by the Resurrection Bay Historical Society to visit the Seward Museum on June 13 & 14, 2013. The library usage figures were: April 20 12 April 2013 May 2012 May 2013 Library Visits 5005 7653 6130 7550 Circulation 3606 4,716 3807 4162 Computer Use 623 1330 953 1196 Wireless (1 hour 278 570 513 695 sessions) Museum visits n/a n/a n/a 577 Community 598 721 Use /Programs Hunt spoke of recent electric outages and notified Council of the recent Request for Proposals for architectural services for the new warehouse building at Fort Raymond and gave the proposed scoring criteria. A new contract effective July 1, 2013 to 2016, added a new section which allows the Electric Department to pick up branches at a reduced rate and had an increase to the pension fund of 2.6% over last year. In the Harbor, the Mariners memorial "Compass Rose" was making good progress. Design build proposals were solicited for the Harbor restroom improvements project and Harmon Construction submitted the best (and only) proposal. North Star Paving and Construction from Soldotna was the apparent low bidder for the Z -float Uplands Paving project opened June 19. Hunt reported the State of Alaska expected to reprocess and pay Providence Seward the disputed Medicaid rate claims per the recent settlement agreement immediately, but had only committed to paying 3 of the 4 years by year end. The expected impact of three years of claims is approximately $4.5 million, with the final year's impact of $1.5 million coming in 2014. Finance was beginning an internal enterprise fund rate review update for the electric, water, and wastewater Funds, in conjunction with the annual budget process. The updated Capital Improvement Plan document based on the Councils' recent capital budget discussions on the enterprise funds would come for Council approval in July. Public Works was working on a subdivision agreement related to the North Seward Water Storage Tank replat. A new waterline was installed on S float at the harbor. They were also submitting a drinking water questionnaire to ADEC municipal loans, continuing the ongoing battle of patching pot holes, striping, ditching, sludge sampling of both lagoons, sidewalk repair, ADA issues and dig permits. Parks and Recreation was gearing up for the 4th of July, repainting all parking lots and field maintenance at Jon Perry and Citizens Fields. They trimmed alders along Port Avenue in the Northeast lot and had worked with the Campground Department to ci City of Seward, Alaska City Council Minutes June 24, 2013 volume 39, Page • install an automated pay station at the RV Dump Station. The TYC greenhouse was up and growing and a new program "Feelin' Good Mileage Club ", a fitness incentive program designed to promote healthy lifestyles and fight obesity among youth was established. A major remodeling project at the AVTEC gym which includes new panels, ADA bleachers, lighting and possible floor repair was starting. Assistant City Manager Ron Long was heading to Anchorage to view the Alaska Railroad Corporation's master plan which included Seward. Council Member Christy Terry requested the city look into waiving interne fees for locals and students in the winter. She also referred to the RFP /bid process in the Seward City Code, and reminded Administration of the procedures to bring it back to the Council for approval, Both Council Members _Keil and Shafer thought the assessments for sidewalks and streets were going slowly and reminded Administration they were a number 1 priority. City Attorney's Report, Cheryl Brooking gave a report for a two month period. They provided advice and responded to contract questions, worked with various departments on tax foreclosed property laws, harbor leases, contracts and impound procedures. She had recently provided staff with Title 6 training on RFP and bid processes. Mayoral Report, David Seaward thanked everyone for attending this meeting and Martha Fleming and GCI for broadcasting the meetings. He mentioned a resolution on the Iditarod historic trail from mile 3 to sawmill creek, and an alignment and continuation of a bike path in that area, which may need support from Council in the future. Other Reports, Announcements and Presentations Annual audit presentation from Mikunda, Cottrell & Co. for the year ending December 31, 2012. Michelle Drew had just given the Council a detailed report at a work session before the meeting and thanked the city for their business. She stated the audit received a clean opinion, and financially, the General Fund had a good year. Seward brought in slightly more revenue, and spent a little less on the expenditure side from the previous report. The Enterprise funds covered operating funds but noted debt service calculations were not included in that assessment. Some depreciation had been funded, records were clean and in good order and no deficiencies were reported. She noted City financial statements were complex, and Seward would again participate in an award program for excellent reporting requirements. Second Quarter Report from Planning & Zoning Commission. Commissioner Martha Fleming stated there was still one opening on P &Z that they would appreciate the public apply for. The Commission had been working with the Flood Board and on city land uses and recommendations that would eventually come to council. PUBLIC HEARINGS Resolutions Requiring Public Hearing City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page Resolution 2013 -047, Authorizing The City Manager To Negotiate And Execute A Lease Agreement With . He Will Provide Inc. For The Purpose Of Providing A Charitable Food Distribution Program In The Basement Of The City Annex Building. Assistant City Manager Ron Long met with food bank personnel and looked at various potential sites for the new location. In the old library site, called the City Annex Building, the food bank would have an adequate storage and check out area. Administration thought it was in the public's best interest not to require an appraisal since this agreement was less than fair market value, but did require insurance and indemnity. Access for the public would be from the alley off Fifth Avenue and Adams Street. The building space that would be occupied was a portion of the basement, and the building would still have the entire top floor plus a large community room downstairs left to use for other purposes. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Robert Pack said the food bank was a free - choice agency where clients could shop for the food they needed, up to ten pounds each week, rather than be handed a pre - filled grocery bag. The food bank operated on grant funding, private donations from the community and local churches, and were staffed with 100% volunteers. The only requirement for someone to receive food was an Alaskan ID. Their rent and fuel costs for traveling to Anchorage were their main expenses. A ten - pound bag cost the food bank $0.80 cents and they distributed over 50,000 pounds of food in Seward and throughout the surrounding community each year, serving an average of 100 families each week. The food bank was established in Seward in 2008. Motion (Terry /Shafer) Approve Resolution 2013 -047 Valdatta asked about plumbing in that area of the basement, and to know if the volunteer staff would have access to restroom facilities. Long said the current plans for the space did not include restroom considerations, but he would make sure they had a key to let themselves into the area that did have restrooms. Shafer was glad to see improvements and was delighted that there would be more space for the food bank and more parking for their clients. Keil agreed that it was not in the public's best interest to require an appraisal. No one on council raised an objection to that. Motion Passed Unanimous Resolution 2013 -048, Authorizing The City Manager To Enter Into A New Lease With Raibow Fiberglass And Boat Repair, LLC For Lot 4, Block 3 Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. 97 -27 Seward Recording District, Third Judicial District, State Of Alaska. �1 City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page Harbormaster Mack Funk spoke to the location of the property at the Seward Marine Industrial Center (SMIC) which was west of the AVTEC Fire Training Center across the bay. This business was owned by David Phillips and had been operating in Seward for several years north of the harbor area. This was to be a standard 20 -year lease, with two 5 -year extensions, and followed the normal lease city structure. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. Motion (Keil/Shafer) Approve Resolution 2013 -048 Council suspended the rules to.allow David Phillips to answer a question of whether the Travelift could reach the leased yard. David Philips stated he would be using this property primarily to stage and store boats. Motion Passed Unanimous UNFINISHED BUSINESS - None NEW BUSINESS Resolution 2013 -051, Authorizing The City Manager To Enter Into A Construction Contract With Harmon Construction For The Civil And Site Work And For The Foundation Of The Electric Department Warehouse In An Amount Not To Exceed $493,190, Establishing A 10% Contingency Fund And Appropriating Funds. Motion (Bardarson /Terry) Approve Resolution 2013 -051 Utilities Manager John Foutz stated there were two bidders, and this contract was being awarded to Harmon Construction as the most responsive and responsibly proposal. The original scoring criteria in council's packet had an error in the grading results. A laydown version showing the corrected results was provided. Motion to Amend (Bardarson /Shafer) Accept the laydown version of the scoring results. Motion to Amend Passed Unanimous Consent Terry pointed out that this should be referred to as a proposal, not a bid. Motion to Amend (Terry/Keil) Strike the word "bids" on the 5th and 6th Whereas and substitute the word "proposals." Motion to Amend Passed Unanimous Consent City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page In response to Seaward, City Attorney Cheryl Brooking stated it was unconstitutional to award a proposal based on local hire or location. Main Motion Passed as Amended Unanimous Other New Business Discussion on council repealing Seward City Code 5.45, HoteUMotel Room Tax. Terry disclosed a possible conflict of interest because she was the Acting Secretary for the Chamber of Commerce. She stated no direct or indirect financial gain based on the outcome of this discussion. Seaward ruled no conflict existed. Keil disclosed a possible conflict of interest because she was an honorary member of the Chamber of Commerce with no direct or indirect financial gain. Seaward ruled no conflict existed. Shafer disclosed a possible conflict of interest because she was an honorary member of the Chamber of Commerce with no direct or indirect financial gain. Seaward ruled no conflict existed. Casagranda disclosed a possible conflict of interest because she collected bed tax for her business. Seaward ruled no conflict existed. Acting City Clerk Brenda Ballou steered council to the laydown information which was furnished by the clerk's office, Chamber of Commerce and citizen comments. Seaward wanted to repeal the bed tax because of the discrepancy of 3% outside city limits versus 11% inside city limits. Terry thanked him for bringing forward the discussion, but noted the Chamber of Commerce was bringing visitors to town with those dollars. Seward competed with many other communities and could not drop the ball now or else might lose the advantage. She added that it also brought jobs and livable wages to Seward workers. Shafer asked where the city would cut the budget to make up this deficit. Seaward thought there were ways to cut within the city budget. He wanted to bring this up because the other side of the peninsula and outside the city limits didn't have the bed tax. Terry stated Seward had good sales tax numbers and reminded Seaward that he wanted to increase property tax to pay for the Library Museum. Shafer reminded that the bed tax was voted in by the people of Seward with the understanding some of the money would go to marketing. She felt the people implemented this and it was up to them to do an initiative if they wished, and that repealing would be stepping outside the purview of council. Shafer stated not one person had ever asked her to get rid of the bed tax. Seaward noted that was a great point, but thought times were different since 1995, and said City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Pa: e the General Fund revenues were healthy enough to absorb the bed tax. Keil weighed in stating this money promoted Seward, new businesses and brought in new families. She reiterated that a huge margin of voters requested and passed this initiative. Bardarson thought the public had spoken, and too many other infrastructure and improvements needed attention. She did not want to take money that could otherwise go toward streets and sidewalks. Valdatta noted bed tax was strictly on the honor system in reporting and stated it would help if the city received the tax from outside city limits. Seaward recognized the wishes of the council and proceeded with the agenda. INFORMATIONAL ITEMS AND REPORTS - None COUNCIL COMMENTS Bardarson thanked the Finance Department and wished them good luck on their upcoming software implementation. She wished the community a happy Fourth of July. Keil thanked the volunteers and organizers from the food bank, and stated it really was a mission of love and a charity and that was what made Seward as great as it was. Shafer had a new intern working for her from Illinois who had told her she felt a great sense of community here. Valdatta wished everyone a happy Fourth of July, and welcomed Retired City Clerk Jean Lewis back to help out this summer. He also thanked the community for putting him on council for so many Fourth of Julys. Terry urged people to get flood insurance and thought this was the best opportunity to purchase before the flood plain mapping was complete. She asked for the public to fill the vacant seat on the Planning & Zoning Commission. She thanked the food bank and welcomed Jean Lewis back. She announced the birth of Jack Alexander Kinney and congratulated the Kinney Family. She thanked Brenda Ballou for being Acting City Clerk during this time. City Attorney Cheryl Brooking remembered working on an agreement between the city and the Chamber of Commerce for the bed tax money. Shafer stated that council and the Chamber of Commerce addressed what percentage of bed tax money would be used for marketing during each budget cycle. Seaward thanked everyone for attending, and sent out a heartfelt thank you to all the service men and women keeping us safe. CITIZEN COMMENTS City of Seward, Alaska City Council Minutes June 24, 2013 Volume 39, Page Jackie Campbell had fun telling council that in its former location, the food bank used to get flooded, and they were looking forward to their new location. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS - None ADJOURNMENT The meeting was adjourned at 8:36 p.m. Brenda Ballou David Seaward Acting City Clerk Mayor (City Seal) City of Seward, Alaska City Council Minutes July 8, 2013 Volume 39, Page CALL TO ORDER The July 8, -2013 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor David Seaward. OPENING CEREMONY Police Chief Tom Clemons led the Pledge of Allegiance to the flag. ROLL CALL There were present: David Seaward presiding and Vanta Shafer Bob Valdatta Ristine Casagranda* Jean Bardarson Christy Terry Marianna Keil comprising a quorum of the Council; and Ron Long, Assistant City Manager Brenda Ballou, Acting City Clerk Jean Lewis, Temporary Deputy City Clerk Absent — None *Ristine Casagranda arrived at 7:04 p.m. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING - None APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Bardarson /Terry) Approval of Agenda and Consent Agenda Bardarson pulled Resolution 2013 -056 from the consent agenda in order to have further discussion. Keil added a discussion item regarding discussion items to the agenda. Motion Passed Unanimous The clerk read the following approved consent agenda items: Resolution 2013 -053, Authorizing A Five Year Contract In An Annual Amount Starting At $655,470.00 With The State Of Alaska, Department Of Corrections, To Provide For Operating City of Seward, Alaska City Council Minutes July 8, 2013 Volume 39, Page The Seward Community Jail And Housing Prisoners Charged And /Or Sentenced Under Alaska Statutes, And Appropriating Funds. Resolution 2013 -054, Authorizing The City Manager To Enter Into A Contract With North Star Paving & Construction Inc. For The Z- Float/North East Harbor Upland Paving Improvements In The Amount Of $214,000.00 Plus A 10% Contingency, And Appropriating Funds. Resolution 2013 -055, Authorizing The City Manager To Enter Into A Design Build Contract With Harmon Construction For Harbor Restrooms Improvements In The Amount Of $105,000 And Appropriating Funds. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards July is National Parks and Recreation Month. Borough Assembly Report, Sue McClure stated the Assembly had changed their start time to 6:00 p.m. because of huge business agendas and public hearings. A task force was approved and had met for months to come up with an improved ordinance of protection for anadromous stream habitats which was approved on July 2, 2013. Ordinance 2013 -18 institutes 50 -foot habitat protection barrier in phases throughout the borough, excluding Seward's specific area. Another weighty issue for the Assembly was a resolution to provide an advisory vote in the October election on whether to continue funding the Central Area Rural Transit Service (CARTS) which subsidizes rides for people. That was postponed until the August 6, 2013 meeting, along with an ordinance to repeal the two term limit for Assembly Members. City Manager's Report, Assistant City Manager Ron Long stated there had been no purchase orders between $10,000 - $50,000 approved by the City Manager. The quarry analysis report had been received, and the quality and quantity of quarry materials were suitable for Seward Marine Industrial Center (SMIC) project and others, and that geotechnical and dredge samples had been taken from the harbor and were undergoing testing. On June 27, 2013 the harbor received the report of inspection made by the Alaska Department of Environmental Conservation (DEC) for Seward Ship's Drydock Inc. (SSDI) inspection on April 10, 2013. The Harbormaster met with the owner and manager of S SDI on June 28, 2013 and was given a copy of the Notice of Violation that cited SSDI for not filing required permit reports and for not using Best Management Practices. The notice included a compliance schedule. The DEC inspector said that the report of the city boatyard would arrive in the near future. The oil -water separator had been placed at SMIC in line with the drainage line from the new wash -down pad. GCI' s lease at SMIC for cable television gear expired on June 22, 2013. A holdover agreement was sent to GCI on June 17, 2013, but had not been returned. City of Seward, Alaska City Council Minutes July 8, 2013 Volume 39, Page Long report ed that the parking revenue from the LUKE system was $3,900, and included daily parking, boat launch, and credit card permit sales over the July 4 holiday. The Teen & Youth Center's (TYC) dunk tank booth generated $1250. He listed assets managed by the Information Technology Department for consideration, and requested a temporary hire at four hours per day, not to exceed $24,000, in order to help clear the backlog currently experienced by all departments. Mayoral Report, David Seaward said Premier Tours was hosting a group of 10 -12 year olds involved in the People To People Ambassador Program. They were visiting to learn about the history, culture and economy of the area, and Seaward welcomed them to the community. On June 29, 2013, Seaward, along with administration, Deborah Altermatt of the Port and Commerce Advisory Board (PACAB) and Alaska SeaLife Center Executive Director, Dr. Tara Reimer -Jones welcomed the Singapore Ambassador to the United States. Other Reports, Announcements and Presentations Port and Commerce Advisory Board Quarterly. Darryl Schaefermeyer stated that PACAB had discussed waiving passenger fees for student groups, but had tabled it while the city attorney looked for potential legal issues. PACAB considered recommending changes to the Harbor Tariff in regards to specifying when and how often reserved slips are offered to wait list customers, and would continue the conversation at a later date. PACAB's 2013 Priorities were adopted in April 2013, PACAB had met with representatives from the Alaska Railroad to get a better understanding of the railroad's development plans, and PACAB had sent a letter to the Department of Commerce and the Congressional Delegation relating to the proposed rulemaking change for Harbor Seal protection brought forward from the local cruise industry. Schaefermeyer stated PACAB's upcoming agenda would include working on revisions to the Small Boat Harbor Development Plan, which was on their priority list. He added that on Friday, July 5, 2013, the Alaska SeaLife Center set a 10 -year record of one -day paid visitors of over 2,000 guests. PUBLIC HEARINGS Ordinance for Public Hearing and Enactment Ordinance 2013 -010, Amending Portions Of Seward City Code 15.25. Floodplain Management To Adopt The Digital Floodplain Rate Maps (DFIRM) And The Flood Insurance Study (FIS) Dated September 27, 2013 As Established By FEMA And Update Portions Of Chapter 15.25 To Minimum FEMA Requirements. Assistant City Manager Ron Long said the Assembly was considering a similar ordinance, and noted that boroughs and cities have different areas of effected properties with respect to flooding. The new maps look somewhat the same, with language straight from the Federal Emergency Management Agency (FEMA). The biggest difference he noticed was the definition where development now included the phrase "storage of materials ". This ordinance needed to be enacted in order for the city to be eligible for FEMA funds. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. City of Seward, Alaska City Council Minutes July 8, 2013 Volume 39, Page Motion (Bardarson /Shafer) Enact Ordinance 2013 -010 Valdatta stated the airport runway area was a major concern for flooding. Terry knew the ordinance must be adopted for the city to be included in FEMA programs, but wanted to exercise the option later to check the definitions and fine tune any inconsistencies in the code for clear, concise regulations. Long said this was just the interface between the city and the federal government, and established the minimum requirement to be eligible for FEMA funding, with layers easily added at a later date. Motion Passed Unanimous UNFINISHED BUSINESS Other Unfinished Business Items Resolution 2012 -058, Stating An Intent To Fund $400,000 For The Maple Street Sewer Line Project Subject To Receiving A Loan In That Amount, Authorizing A Loan Application With The Alaska Clean Water Fund And Authorizing The City Manager To Enter Into A Loan Agreement With The Alaska Drinking-Clean Water Fund With Annual Payments Not To Exceed $24,000, And Subject To Annual Appropriation. (Clerk's Note: This resolution was originally approved on July 23, 2012. It is coming before council tonight in order to correct a term in the title which has a substantially different definition, and it should be noted that it included a new agenda statement.) Motion (Bardarson /Terry) Approve Resolution 2013 -058 Long said this resolution was nunc pro tunc, which translated into "now for then," meaning that if council approved this resolution tonight, it would be in effect as if it had happened originally. He said this resolution made sense to do jointly with Resolution 2013 -057 because it would result in the property along Maple Street becoming developable. When this resolution was first brought forward, council was told the intention was to position the city to obtain grant funding, with the potential of having the city pay $100,000 in matching funds. The city had not been successful in obtaining grant funding, so instead they were coming back to council for authorization to enter into a $400,000 loan agreement. Although this resolution could be thought of in terms of being a joint project with Resolution 2013 -057, they would be paid for from two separate enterprise funds, each having different balances, fund reserves and fee structures. The enterprise fund for this portion of the project was not as healthy as it could be. If the city was borrowing $100,000, a repayment schedule that made sense could be worked out, but $400,000 would need a payment mechanism such as a rate increase, a fund transfer from the General Fund, or borrowing money from the water fund. Upon further council questioning, Long requested to postpone this resolution until the July 22, 2013 meeting in order to explore and develop a payment mechanism and schedule to bring back City of Seward, Alaska City Council Minutes July 8, 2013 Volume 39, Page to council. He noted time was critical with the drinking water fund to move while funding was available. Public Works Director William Casey said a 10 -foot separation was necessary between water and sewer lines. Motion to Postpone (Keil/Bardarson) Postpone to July 22, 2013 Meeting Motion to Postpone Passed Unanimous Consent NEW BUSINESS Resolution 2013 -056, Authorizing The City Manager To Purchase A Used Truck For A Cash Amount After Trade -In Consideration Of The Subaru Forester Not To Exceed $31,000, And Appropriating Funds. Motion (Terry /Shafer) Approve Resolution 2013 -056 Long directed council's attention to the laydown provided by City Manager Jim Hunt. Keil was concerned that a pickup truck may not be the most appropriate type of vehicle for city use, as would a sport utility vehicle, because a pickup could not hold as many passengers, may have higher fuel consumption, and may not be as practical in the event of an emergency. Bardarson concurred. Keil added that she would like to see administration bring forward a written plan for vehicle replacement, and referred administration to the analysis done by John Bird several years ago. Motion Failed No: Bardarson, Terry, Casagranda, Keil, Shafer, Seaward Yes: Valdatta Resolution 2013 -057, Stating An Intent To Fund $500,000 For The Maple Street Water Line Project Subject To Receiving A Loan In That Amount, Authorizing A Loan Application With The Alaska Drinking Water Fund And Authorizing The City Manager To Enter Into A Loan Agreement With The Alaska Drinking Water Fund With Annual Payments Not To Exceed $55,000, And Subject To Annual Appropriation. Motion (Bardarson/Keil) Approve Resolution 2013 -057 Long said this fund had a balance that was sufficient to cover the loan payment, from the Seward Mountain Haven account. Two different studies showed corrective action was needed in this area of town, and previous direction had come from council to develop new areas. In response to council questions, Long agreed there was no cash flow generated to cover payments, but the fund reserve itself could cover the payments. He thought 1.5% was as low an interest rate as they would get, and completing this project would open up the property for future development. He said there were 10 property lots that could be created and developed. He said water City of Seward, Alaska City Council Minutes July 8, 2013 Volume 39, Page and sewer were already available in the area, and that this project would enhance the Afognak Subdivision and Mountain Haven Long -Term Care Facility. Motion Passed Yes: Bardarson, Shafer, Keil, Valdatta, Terry, Seaward No: Casagranda Other New Business Discussion on hiring a temporary Management Information Systems employee. Council directed administration to bring forward a resolution with their proposed plan for hiring an employee, along with a budget. Discussion on committee reports for the Seward Recreation Committee. Council advised that written quarterly reports included in the council packet would be sufficient. Discussion on benches and signage at the shuttle bus stops. Administration would continue exploring options, and said action may be in 2014. Administration would call upon Casagranda to assist. Discussion on exempting hostels from collecting bed tax. It was noted that the definition for Hostels would have to be changed in the city code in order to exempt them from bed tax. The idea met with resistance form council. Keil pointed out that hostel guests used city water and sewer the same as any other lodging guest. Council supported Casagranda pursuing more research. Seeking Council guidance and input on Founders Day Celebration and Japanese Delegation Events. Council directed the City Clerk's office to coordinate with the Resurrection Bay Historical Society (RBHS) on an agenda, and suggested that some events be held after 5:00 p.m. to allow for more public and business owners to attend. Discussion on council establishing local co -op farming by providing small chemical -free city vacant lot /land /parks to organic farmers. Council supported the concept, spoke of municipal lands and community involvement, but stated the need for more research. Discussion on Discussion Items. Administration stated they were willing and able to assist council by providing fact - finding information and research on potential discussion items, with the awareness of using resources wisely on pertinent topics. INFORMATIONAL ITEMS AND REPORTS Two draft letters to be sent by Mayor Seaward to the outgoing and incoming Head of Office Consul of Japan in Anchorage. Letter to Obihiro, Japan Mayor Norihisa Yonezawa accompanying the gift of an engraved gold pan for Obihiro 's 2013 Heigen Festival. °I\ City ofSeward, Alaska City Council Minutes July 8, 2013 Volume 39, Page Letter to Kushiro, Japan. Mayor Yoshitaka Ito accompanying the gift of an engraved gold pan for Kushiro's 2013 Funakogi Taikai rowing competition. Letter dated June 26, 2013 from the Alaska Department of Environmental Conservation responding to postcard showing coal dust in March 2007 at Seward Coal Terminal. COUNCIL COMMENTS Bardarson thanked the Fourth of July volunteers, administration and the public on a great celebration. She welcomed the Alaska State Chamber of Commerce members who were visiting. Keil thanked the people that cleaned the streets so well following the Fourth of July celebration. She said the State of Alaska Redistricting Board had approved a conceptual map wherein Seward would move to House District 30, taking South Anchorage out of Seward's district and moving us to Chenault's district. She urged others to check out the redistricting board website. Shafer was happy there were no injuries on Mount Marathon this year, and also thought the clean -up of downtown was fantastic and unbelievably clean the next morning. She thanked the crews and volunteers for that. Casagranda was grateful for everyone who had voted for her, said she enjoyed her role as a council member, and wanted everyone to know she had no time to check her emails, but was always available by telephone. Terry echoed a welcome to the Alaska State Chamber of Commerce. She had been hearing a rumor that Seward did not recycle and had done some research to dispel that falsehood. She recited a list of the recyclable items and stated Seward was part of the recycling community in Alaska and wanted to put that rumor to rest. She congratulated all the runners of the Mount Marathon Race, and Eric Strabel on setting a new record. CITIZEN COMMENTS - None COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS- None ADJOURNMENT The meeting was adjourned at 8:58 p.m. Brenda Ballou David Seaward Acting City Clerk Mayor (City Seal) r of trt c.!, 4 ;-A S� P PORT AND COMMERCE ADVISORY BOARD (PACAB) APPLICATION NAME: .)A1J Ie +` 0 Live-2 STREET ADDRESS: 10 9S 1 1 024 N SOJl 4V6 MAILING ADDRESS: PO • °1s 1 (1 tU HOME TELEPHONE: ) ' - S BUSINESS PHONE, 2 - EMAIL: CI k o I 1 Vet' e tG.5 1CG LENGTH OF RESIDENCY IN THE SEWARD AREA: V 1` 1 eA.. rS PRESENTLY EMPLOYED AS: % i t i c—Toz List any special training, education or background you have which may help you as a member of the Board: ( ! Ke-Ti e(-D Cobs 1 /Y&D n-& 18 it25 s &z . . FC9e t'01 C S] -uJ _ Se.€.4 D $ 0, . ft- t-4 t r e.— ' ► eR AOeS Have you ever been involved in port operations? If so, briefly describe your involvement: 1 A (4 L1 AS 4 r d 2; I am specifically interested in serving on the Port and Commerce Advisory Board because: C1 e-NS t to o-2o sp L -2241 jvJ - S C�� / 2 2 /„s r i>-( .a a S O ii 7 f M 3 L t (4 6 ( J 5 1 C . L, ) u. MA ■1 a Si UL A C L 0 2CIZro i� o Have you ever served on a similar board elsewhere? Yes or CD 0 ti I-1 11 S If yes, where? When? Are you available for meetings at noon (second Wednesday of each month)? or No If appointed, are you willing to travel occasionally)? OM or No D o 2,0 fa SIGNATURE DAT 93 poRT N ._., 1 mrerivFD AD COAIME RC E ADV ISOR\ R() 1(I) IPACAB) i " — ,,- A PPLiCATION JUL 0 8 2013 ,. :‘ •-, 4 NAmE: I 1 r 1/ ( E to iss\ ( S'IRITT.-NDDRFSS: 1 .( / 1 (,....-;,—; . ; ... ... 0---... .• ; ... ii :,.( 1 , , N - ,;,',7C, f ,, 4 / MAILING ADDIZFSS: I ;. / ---ici ',/ . v 1\ - ,----- ,../ ,;; i 3 ,...- .- 110W. 1 1ONI-„: .. i- 4 - ! 4 t''' / lit:SIM:SS 11 IO / NB:. .....„ f LNIAIL: —; ; ( (IL ' t IC .1 1 .a..4' (.4" ,.C1_ .44 , 0 vvit ...,, , ._ 1 r LENCiiii 01- RNSIDI.:NCY IN TI-IF. SLWARD Al:F.A: ; 1 .<..'"- , 1 • PRE S1 ATI A 1 ',NIPLOY 1.'„D AS: 12"A„./. ; f /I.c , —.1.--; //Lc_ 0 („,..) i l E'-,f.„( --- I ' • List any ;poeial training. education or haek;.2round \“111 iliiVC which may help you iN a member 4 the Board. i i 1 / ,:,:',' --1 0,• - ' , 1.: ` y(',..5.. ... 1,..., t...e . i:,/,„ o r t , ----7)-------- „,-, / .: 2 ._1, 0 j _ . -1_ (...,---1 e6-01-u..; rvut:(--- 1 la”: \ ou ever been involved in pew' operations'.) I1 . so. hrierly (Iescrihe your involvement: 1") --) L kJ_ c. .` I IV IL•-t' ek j 6 --- / 1 1-',7„,i c ,6 1. 1 am ;riceirically intere‘ded in servim on the Port and Commeree Advisor\ Board Because: A r ik (..,A A (.,/ / - ,..„-.' t, ik.iliftl, 1-1,A4-;?;:.• ft 1,,,, t ii, i - 1, f i'.... i'/Prr . . , , .....—, 4 , A / . i ,.I -- I . ,,/./ / ., .--,./f/ /7" 4. rit 4 ( ... - .4. ,ii - 7;-, ! c ..)...t, -,/ : i -' f-- - ,' x..., / i v V ) 1-- V t":,/ i i IV . 1 Y. - ei v. 7 , .....___.... I lave vou ever set \ ed on a similar board elsewhere? Ye, or No -,..:...._ P • . / ./C;i'tj ,.-- — If ve-.. where? When? . :,--- Are yoil .i for itteetin.2N at noon t \-\ ednesdav o e;ich month)? .Ies)(..ir No ....4 , „... 11 appointed. arc you willill 10 1rZi\el Ot'CO,tilintallVr NCI ,„..,----„ ..„ ,/,'-' ,,--- ,.// 7 ---- l_......,,///1„--..,,7-,:, 5: ..„.: . 4, 1 „ , „ , , 7.. - --.> ,--- i .,:4 , . ' - - „5 1 -,' (%(-i /.., ,,..:,`: i --'", /- i :. ' 1 - .--L- - 4:-----Si( NAI'L;RE I )AT,I/. i (...../ aLlk 6/19/2013 1:08 PM Run Date - 6/19/13 @ 1:08 PM Providence Health & Services DET_OPS 110 - MGD - PROV SEWARD MED CTR Detail Statement of Operations (in Thousands) Reported as of May 2013 • % Variance % Variance Last Year % Variance Actual MTD Budget MTD MTD Actual YTD Budget YTD YTD Actual YTD YTD Gross Service Revenues: 114 194 (41.2 %) Acute Care - Inpatient 506 975 (48.1 %) 1,022 (50.5 %) 625 537 16.4% Acute Care - Outpatient 2,327 2,660 (12.5 %) 2,695 (13.7 %) ' 164 149 10.1% Primary Care 736 707 4.1% 710 3.7% 1,308 1,353 (3.3 %) Long -term Care 6,274 6,591 (4.8 %) 5,176 21.2% - - - Homecare & Hospice - - - - - - - - Housing & Assist. Living - - - - - 2,211 2,233 (1.0 %) Total Gross Service Revenues 9,843 10,933 (10.0 %) 9,603 2.5% Revenue Deductions: 11 26 (57.7 %) Charity Care 318 169 88.2% 86 269.8% 438 499 (12.2 %) Medicare & Medicaid 2,437 2,364 3.1% 1,515 60.9% 9 1 800.0% Negotiated Contracts 27 4 575.0% 10 170.0% 121 94 28.7% Other 397 442 (10.2 %) 380 4.5% 579 620 (6.6 %) Total Deductions 3,179 2,979 6.7% 1,991 59.7% 64 67 (4.5 %) Bad Debt 65 335 (80.6 %) 104 (37.5 %) 1,568 1,546 1.4% Net Service Revenue 6,599 7,619 (13.4 %) 7,508 (12.1 %) - - - Premium Revenue - - - - - (j\ - - - Rental and Education Revenue - - - - - 8 51 (84.3 %) Other Operating Revenue 44 256 (82.8 %) 56 (21.4 %) 1,576 1,597 (1.3 %) Total Net Operating Revenues 6,643 7,875 (15.6 %) 7,564 (12i %) Expenses from Operations: - - - Purchased and Healthcare Expenses - - - - - Other Expenses from Operations: 896 747 19.9% Salaries & Wages 3,843 3,639 5.6% 3,886 (1.1 %) 236 234 0.9% Employee Benefits 1,125 1,159 (2.9 %) 1,102 2.1% 2 8 (75.0 %) Professional Fees 28 38 (26.3 %) 40 (30.0 %) 112 80 40.0% Supplies 446 399 11.8% 405 10.1% 192 170 12.9% Purchased Service 1,020 1,001 1.9% 1,086 (6.1 %) 1 1 - Depreciation 5 4 25.0% 10 (50.0 %) 7 2 250.0% Interest and Amortization 25 8 212.5% 10 150.0% - - - Bad Debts - - - - - 1 1 - Taxes and Licenses - 3 (100.0 %) 2 (100.0 %) 132 90 46.7% Other Expenses 521 449 16.0% 564 (7.6 %) 1,579 1,333 18.5% Total Other Exp from Operations 7,013 6,700 4.7% 7,105 (1.3 %) 1,579 1,333 18.5% Total Operating Expenses 7,013 6,700 4.7% 7,105 (1.3 %) (3) 264 (101.1%) Excess of Rev Over Exp from OPS (370) 1,175 (131.5 %) 459 (180.6 %) - - - Non- Operating Gain (Loss) 1 - - - - (3) 264 (101.1 %) Excess of Revenues Over Expenses (369) 1,175 (131.4 %) 459 (180.4%) Other Activity-Unrestricted (1,258) (961) (30.9 %) Increase (Decrease) in UR Net Assets (1,627) (502) (224.1 %) 1 6/19/2013 1:08 PM PRELIM - Run Date - 6/19/13 @ 1:08 PM Providence Health & Services BAL SHT 110 - MGD - PROV SEWARD MED CTR Balance Sheet (in Thousands) Reported as of May 2013 May 2013 December 2012 May 2013 December 2012 Actual Last Year Actual Last Year ASSETS LIABILITIES & NET ASSETS Current Assets: Current Liabilities: Cash and Cash Equivalents (2,284) (1,879) Accounts Payable 141 184 System Pooled Cash - Accrued Compensation 1,090 1,031 Mgmt Designated Cash & Cash Equiv. - - Affiliates Payable - - Short Term Investments - - Payable to Contractual Agencies 17 192 Assets Held Under Securities Lending - - Deferred Revenue /Unearned Premiums 71 21 Accounts Receivable, Net 2,706 2,760 Liability for Unpaid Medical Claims - - Affiliate Receivable - - Liability for Risk - Sharing - - Premiums Receivable - - Liabilities Under Securities Lending - - Other Receivables 176 386 Other Current Liabilities 4,484 3,429 Supplies Inventory at Cost Short-Term Debt - - 6 Other Current Assets 20 25 Current Portion of Long -Term Debt - - Current Port. of Assets - Use is LTD Total Current Liabilities 5,803 4,857 Total Current Assets 618 1,292 Assets Whose Use is Limited: Long-Term Debt: Mgmt Designated Cash and Investments - - Master Trust Debt - - Funds Held for Long -term Purposes 2,331 2,344 Loans from Affiliates - - Gift Annuity and Trust Funds - - Other - - Funds Held by Trustees - - Long - Term Debt - - Non- Current Assets Limited as to Use 2,331 2,344 • Property, Plant & Equipment: Other Long -Term Liabilities 218 220 Gross Property, Plant & Equipment 146 136 Less: Accumulated Depreciation (118) (113) Total Liabilities 6,021 5,077 Net Property, Plant & Equipment 28 23 Net Assets: Other Assets: Unrestricted (2,828) (1,201) Unamortized Financing Cost - - Temporarily Restricted 7 4 Interaffiliate Notes Receivable - - Permanently Restricted - - Other (Incl. Long -term Investments) 223 221 Total Net Assets (2,821) (1,197) Total Other Assets 223 221 • Total Liabilities and Net Assets 3,200 3,880 Total Assets 3,200 3,880 8 I 6/19/2013 1:08 PM PRELIM - Run Date - 6/19/13 @ 1:08 PM Providence Health & Services CASHFLOW 110 - MGD - PROV SEWARD MED CTR Statement of Cash Flows (in Thousands) Reported as of May 2013 May 2013 May 2012 May 2013 May 2012 Current Year Last Year Current Year Last Year Operating Activities: Change in Net Assets (1,624) (502) Financing Activities: Adjustments to Reconcile to Net Cash Provided Proceeds from Rest. Contrib. and Invest Inc. - 29 by Operating Activities: Debt Borrowings - - Depreciation 5 10 Debt Reductions - - Amortization - - (Increase) Decrease in Def. Financing Costs - - Provision for Bad Debts 65 104 (Increase) Decrease in Funds Held by Trustee - - Extraordinary Items and Other - - Interdivision Transfers & Other (1,256) (990) Loss (Gain) on Sale of Cap. Assets - - Net Cash Prov by (Used in) Financing Act. (1,256) (961) Equity Income from Joint Ventures - - Changes in Certain Current AssetslLiab. 1,149 398 Increase (Decrease) in Cash & Cash Equiv. (405) (211) Increase (Decrease) in Other Liabilities (1) (9) Restricted Contrib. /Investment (Income)Loss - (29) Cash & Cash Equiv- Beginning of Period (1,879) (1,991) Net Assets (Contributed)Assumed and Other 1,257 989 Net Real. /Unreal. (Gains)Losses on Invest. Cash & Cash Equiv- End of Period (2,284) (2,202) Net Cash Provided by (Used in) Op. Act. 851 961 Investing Activities: PP &E Additions - - Supplemental Disclosure: Proceeds on the Disposal of PP &E (11) (29) Cash Paid for Interest, Net of Capital 25 10 Purchases of Investments - - Capitalized Lease Obligations - - Proceeds on the Sale of Investments 13 (181) Capital Contributions to Joint Ventures - - Distnbutions from Joint Ventures - - (Increase) Decrease in Other Long -Term Assets (2) (2) Net Assets (Liab.) Assumed and Other - 1 Net Cash Provided by (Used in) Inv. Act. - (211) 11 Johanna Kinney To: Johanna Kinney Subject: Seward Recreation Committee summer Meetings - CANCELLED The remaining summer meetings of the Seward Recreation Committee have been cancelled. Regular meeting of the Sew Rec Com will resume Wed, Sept 4 from 6 to 7:30 pm at the Seward Library Museum. Contact Karin Sturdy, Rec Corn staff for any questions or comments. 224.4053. Thanks! —Karin 224.4053 www.citvofseward.us Please `like' and "friend" the TYC and Seward Recreation on Facebook. Ld ",'. r 46 The RecRoom, TBA: 224.4053 Recreation Committee Meetings on temporary hold: 224.4053 Stylin' Stitches' Youth Soccer League: N 0 W! TYC AC Camp Oilers Game: July 17 EOS Rec ASBL Tournament: July 23 TYC Daycamp Exit Glacier Trip: July 24 Subway Tri - Harder - Thon : July 27 Thanks, Wells Fargo & Seward Chamber of Commerce for SWAG bag, race goodie! Thanks, QNT for sponsoring the post -race party! TYC AC Camp Rafting Trip: July 31 EOS Comp ASBL Tournament: Aug 4 Soccer Photo Day: Aug 7 TYC AC Camp Kayak Campout: Aug 7 & 8 TYC Council Trip: Aug 11 TYC Camp H2Oasis Trip Soccer Shoot: Aug 14 "Lucky 13: Our Prime Year" Seeking volunteers now for any of the above. Thank you! From: Johanna Kinney Subject: Seward Recreation Committee Meeting - July 17th - CANCELLED The meeting of the Seward Recreation Committee that was scheduled for Wednesday, July 17, 2013 has been CANCELLED. Brenda Ballou, Acting City Clerk on behalf of Johanna Kinney, CMC City Clerk, City of Seward Post Office Box 167 Seward, Alaska 99664 p: 907.224.4045 e: clerk@Gcityofseward.net 1 To: The Honorable David Seaward The Seward City Council f JUL 16 2013 A James Hunt, City Manager Ron Long, Deputy City Manager From: Sebastian O'Kelly, Kate Scontras, CJ Zane & Brad Gilman Re: Washington Update Date: July 16, 2013 1. FY 2014 Federal Budget: The House and Senate Appropriations Committees have begun marking up appropriations bills for Fiscal Year 2014. The $100 billion difference in overall discretionary spending amounts between the House and Senate is extreme. Progress on the bills will be slow unless the Congress and the President reach a long -term agreement on spending, entitlements, and taxes. The Treasury Department is estimating that the debt limit ceiling will be reached in October. Thus far, there have been no budget bargaining sessions scheduled between the President and Congressional leaders and we do not expect such sessions to start until later in the summer or fall. Federal agencies have been implementing Sequestration, which for most non - defense programs has meant a 5 percent cut. Furloughs of Federal employees have begun but have not been as extensive or lengthy as estimates from earlier in the year. 2. Water Resources Development Act (WRDA): The Senate has now passed a comprehensive WRDA reauthorization bill, with the House expected to act later this summer. Senators Murkowski and Begich successfully offered an amendment to the bill language to clarify that the Army Corps' Navigational Servitude for Seward Harbor does not apply to the waterfront area created by disposal of dredging spoils from construction of the harbor. The bill language is currently under consideration by the House T &I Committee. We also developed bill language which funds the rural navigation projects separately from the larger navigation and flood control projects for the Lower 48. Both Alaska Senators have backed the proposal and were successful in including a version of it in the Senate WRDA bill. Rep. Young has been receptive, but it is too early to forecast whether the proposal will be included in the House version. Rep. Young's staff has met with the Water Resources Subcommittee staff to request and explain the need for the language. Separately, the Senate Appropriations Committee in its FY 2014 Energy & Water Appropriations Bill has included $4 million and $30 million, respectively, for Army Corps general investigations and operations /maintenance for rural, subsistence harbors. 3. Lowell Creek Tunnel: The House and Senate FY 2014 Energy & Water Appropriations Bill that fund the Army Corps recently cleared Committee. The House bill includes $145,000 for Army Corps maintenance of the tunnel while the Senate bill has $150,000. 4. Surplus Federal Properties: In early June, The General Services Administration (GSA) determined that two Federal properties in the City (412 Washington Ave and 212 Fifth Ave) are ready to be disposed of or transferred. Under Federal surplus property law, homeless providers are given preferential status and have 60 days to make their interest known in these properties. If none do so, then the properties move to the next stage in the surplus property process. This could include a negotiated sale at a discounted price to the City if the property is to be used for a public purpose, or a direct sale to the public via an auction. 5. FEMA Flood Plain Revisions: FEMA has issued its final flood plain determinations and revised maps for the City and Kenai Borough. We have passed the final rule on to the City Manager along with details on where the public can view the new maps. 6. Fisheries: The following summarizes new developments in the fisheries policy • arena from the last couple of months. • Genetically - Modified (GM) Salmon: Alaska's Senators have succeeded in attaching an amendment to the FY 2014 Agriculture Appropriations Bill to require labeling of Genetically Modified /Engineered Salmon. The amendment provides $150,000 to the USDA to conduct the labeling. The bill has cleared Committee and awaits floor action. Rep. Young is the lead sponsor of the counterpart labeling bill in the House and has made this a flagship issue as co- chair of the Wild Salmon Caucus. • Halibut Catch Share Plan: Both Alaska Senators have called on NMFS to extend the 45 day public comment period on the Halibut Catch Share Plan recently submitted by the North Pacific Fisheries Management Council. While neither Senator has weighed in on the substance or allocations of the plan, both are concerned that the comment period takes place during prime fishing season when fishermen are busy on the water and unable to review a detailed and complex document. • Immigration Visas for Seafood Processing Workers: The recently- passed Senate Immigration Reform Bill has two provisions important to the Alaska seafood processing industry. The first explicitly references Alaska seafood processing as an eligible activity for the issuance of J -1 cultural /education visas for seasonal processing workers from overseas. The State Dep.'talent has been reluctant to issues these visas on legal grounds in recent years. This provision should ease that process. The second provision makes Alaska seafood processing eligible for the new 3 year W -visas created in the bill for those occupations where there is a shortage of domestic workers. \v0 • International Boundary Line Enforcement: In April, Senator Murkowski hosted with the participation of Senator Begich and Representative Young a panel discussion with relevant Federal agencies on how to tighten enforcement over illegal fishing by foreign vessels across the Maritime Boundary Line. Poaching has had a particularly negative impact on Alaska's crab and salmon fisheries. • Magnuson- Stevens Reauthorization: As Chair of the Senate Subcommittee with responsibility for MSA Reauthorization, Senator Begich held listening sessions in Kodiak and Fairbanks to gather perspectives on commercial and subsistence fishing, respectively, with another session planned in August in Kenai to hear the view of sports fishermen. Additional hearings will be held elsewhere in the country and the Senator has pledged to work closely with Senator. Marco Rubio, the lead Republican on the Subcommittee, to develop bi- partisan legislation. 7. Energy Issues: Below are the latest developments in energy policy and legislation. • Hydropower: Senator Murkowski's bill to promote the development of small hydropower projects and to streamline the FERC licensing process for such projects has been approved by Committee and now awaits floor action. Senator Begich is a cosponsor. The House has passed its version. • LNG: The Department of Energy has begun to move more aggressively to process and approve LNG export permits. In May, it approved a 20 year export license to allow Freeport to sell LNG to nations in Europe and Asia that currently do not have free trade agreements with the U.S, including Japan. • OCS Revenue Sharing: In June, the House passed legislation to expand OCS energy development. The bill includes revenue - sharing to affected States (including Alaska) by allocating 37.5 percent of OCS- derived revenues. Unlike the Senate bill, it does not have an allocation to local govemments. The Senate version sets aside 25 percent of the State share for local governments that are closest to the lease areas or serve as significant staging areas (Seward would qualify as a significant staging area). The Senate has yet to act on the legislation. The State's allocation would become available for appropriation by the Alaska State Legislature. 8. TWIC Reform: Rep. Young has signed on to a letter with 47 other House Members to TSA in support of the elimination of site visits for Transportation Worker Identification Cards ( "TWIC "). Last year's Coast Guard Reauthorization Act required TWIC reform to be completed with 270 days and that time frame has now elapsed. Alaskans in rural areas have been required to travel at their own expense to obtain and renew their TWIC documentation. i o\ July O July TuWe Th August 2013 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 5 6 1 2 3 7 8 9 10 11 12 13 4 5 6 7 8 9 10 14 15 16 17 18 19 20 11 12 13 14 15 16 17 21 22 23 24 25 26 27 18 19 20 21 22 23 24 28 29 30 31 25 26 27 28 29 30 31 Monday Tuesday Wednesday Thursday Friday Jul l 2 3 4 5 July 4th ; Offices Close 8 9 10 11 12 7:OOpm CC Mtg 12:OOpm PACAB Mtg N OO 15 16 17 18 19 7:OOpm P &Z 12:OOpm PACAB Work 5 6:30pm HP Mtg rn u, 23 24 25 26 7:OOpm CC Mtg Cam-1U oliuit `a N CtArOU; � C ' 3 C e-r 29 30 31 Aug �� 1 2 Pow SuJovvx-A n, PeA,od Sery1m Nanci Richey 1 7/17/2013 9:42 AM B oa August 201. 3 August 2013 September 2013 Su SuMo TuWe Th Fr Sa Su Mo TuWe Th Fr Sa 1 2 3 1 2 3 4 5 6 7 4 5 6 7 8 9 10 8 9 10 11 12 13 14 11 12 13 14 15 16 17 15 16 17 18 19 20 21 18 19 20 21 22 23 24 22 23 24 25 26 27 28 25 26 27 28 29 30 31 29 30 Monday Tuesday Wednesday Thursday Friday Jul 29 30 31 Aug 1 12 N m 0, N 7 5 6 7 8 9 7:OOpm P &Z Mtg 12:OOpm PACAB Mtg 5:30pm Seward Rereat rn L m 12 13 14 15 16 4 7:00p m CC Mtg et ,I , d ,d rN Wt-A SC — 19 20 21 22 23 6:OOpm P &Z WS 12:OOpm PACAB Work 5 6:OOpm Seward Recrea N 6:30pm HP Mtg rn a, 26 — — — , 27 28 29 30 1 7:OOpm CC Mtg V i t • N CID Ari CA t ate-.. ) v f I J 3 Nanci Richey 1 . \03