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HomeMy WebLinkAbout08242015 City Council Packet Seward City Council Agenda Packet -..„-;,:. ,,, ,,„..„,,,,, • _,., „.,,,,, , ,,,,s - , ,,,..„-,„.., ,....4 ;_. ., .„ .:),-. ,,,..*-1, ..,,' — • .\.l� .Y d I I 'it ` y _ _� r _ � . X. 'i J . August 24, 2015 City Council Chambers Beginning at 7:00 p.m 1963 1965 2005 The City of Seward, Alaska of % CITY COUNCIL MEETING AGENDA 1,'?'�� All-America Pry 11111F {Please silence all cellular phones during the meeting} dca`s+�° August 24, 2015 7:00 p.m. Council Chambers Jean Bardarson 1. CALL TO ORDER Mayor 2. PLEDGE OF ALLEGIANCE Term Expires 2015 3. ROLL CALL 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE Marianna Keil ITEMS SCHEDULED FOR PUBLIC HEARING [Those who Vice Mayor have signed in will be given the first opportunity to speak Time is Term Expires 2016 limited to 3 minutes per speaker and 36 minutes total time for this agenda item] Ristine Casagranda 5. APPROVAL OF AGENDA AND CONSENT AGENDA Council Member [Approval of Consent Agenda passes all routine items indicated by Term Expires 2016 asterisk (*). Consent Agenda items are not considered separately unless a council member so requests. In the event of such a request, Christy Terry the item is returned to the Regular Agenda] Council Member Term Expires 2015 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS David Squires A. Proclamations and Awards Council Member Term Expires 2015 1. Founder's Day Proclamation Pg. 4 Dale Butts B. Chamber of Commerce Report Council Member C. City Manager's Report ..Pg. 5 Term Expires 2016 D. Other Reports and Presentations Iris Darling Council Member Term Expires 2015 James Hunt City Manager Johanna Kinney City Clerk Will Earnhart City Attorney City of Seward, Alaska Council Agenda August 24, 2015 Page 1 7. PUBLIC HEARINGS 1. Ordinance 2015-003, Amending Chapters 11.01 And 11.05 Of The City's Vehicle And Traffic Code, Adopting State Of Alaska Traffic Laws, Adopting The Surcharge Required By AS 29.25.074, And Updating Enforcement Provisions Related To Traffic Violations. ..Pg. 9 2. Resolution 2015-073, Authorizing The City Manager To Enter Into A New Lease With Raibow Fiberglass And Boat Repair, LLC For Lot 2 Block 4 Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. Seward Recording District, Third Judicial District, State Of Alaska. Pg. 71 3. Resolution 2015-074, Authorizing The City Manager To Enter Into A New Lease With Raibow Fiberglass And Boat Repair, LLC For Lot 4D Block 7 Fourth Of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. Seward Recording District, Third Judicial District, State Of Alaska ..Pg. 118 8. UNFINISHED BUSINESS—None 9. NEW BUSINESS A. Resolutions 1. Resolution 2015-075, Authorizing The City's $2,826,080 Share Of Matching Funds For The A, B, C, S-Float Replacement Project At The Seward Small Boat Harbor, And The State's Matching Share Of $2,684,000, And Appropriating Funds. .Pg. 163 2. Resolution 2015-076, Authorizing The City Manager To Enter Into A Construction Contract With Turnagain Marine Construction In An Amount Not To Exceed $5,456,400 For The A, B, C, S-Float Replacement Project At The Seward Small Boat Harbor. Pg. 177 3. Resolution 2015-077, Authorizing The City Manager To Amend The Contract With R&M Consultants Inc. For Marine Coastal Engineering Services For The Seward Marine Industrial Center, Changing The Scope Of Work To Include Breakwater And Dredging Construction Administration Services, And Increasing The Contract In An Amount Not To Exceed$554,075. .Pg. 185 B. Other New Business Items *1. Approval of the July 13, 2015 and the July 27. 2015 Regular City Council Meeting Minutes. Pg. 197, 204 City of Seward, Alaska Council Agenda August 24, 2015 Page 2 10. INFORMATIONAL ITEMS AND REPORTS (No Action Required) A. Letter to Anchorage on 100`h Founding Anniversary. ..Pg. 213 11. COUNCIL COMMENTS 12. CITIZEN COMMENTS 13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS 14. EXECUTIVE SESSION A. Go into Executive Session to evaluate the performance of the City Manager. 15. ADJOURNMENT City of Seward, Alaska Council Agenda August 24, 2015 Page 3 PROCLAMATION WHEREAS, ON AUGUST 28, 1903, 83 MEN, WOMEN, AND CHILDREN, ARRIVED AT RESURRECTION BAY ON THE STEAMER, THE SANTA ANA; AND WHEREAS, ABOARD THIS STEAMER WERE TWO BROTHERS, JOHN AND FRANK BALLAINE, WHO ARRIVED ON THE LOWELL HOMESTEAD; AND WHEREAS, THE BALLAINE BROTHERS ENVISIONED A RAILROAD TO THE INTERIOR OF ALASKA WITH A COASTAL HEADQUARTERS; AND WHEREAS, THE SETTLERS CLEARED THE TOWNSITE, ERECTED BUILDINGS, AND BEGAN THE CONSTRUCTION OF THE ALASKA CENTRAL RAILROAD, LATER TO BECOME THE ALASKA RAILROAD; AND WHEREAS, JOHN BALLAINE BESTOWED UPON THE NEW TOWN THE NAME SEWARD, IN HONOR OF WILLIAM H. SEWARD; PRESIDENT LINCOLN'S SECRETARY OF STATE WHO NEGOTIATED THE PURCHASE OF ALASKA FROM RUSSIA IN 1867, AND WAS LATER PRESIDENT ANDREW JOHNSON'S SECRETARY OF STATE; AND WHEREAS, THE LANDING DATE OF AUGUST 28, 1903 IS REMEMBERED AS SEWARD'S FOUNDER'S DAY; AND WHEREAS, SEWARD IS PROUD TO CELEBRATE THE 100 YEAR ANNIVERSARIES OF URBACH'S, THE ALASKA RAILROAD, AND THE OLD SOLLY'S BUILDING; AND WHEREAS, ON AUGUST 28, 201 5, THE RESURRECTION BAY HISTORICAL SOCIE I Y WILL BE HOSTING A FOUNDER'S DAY OPEN HOUSE AT THE LIBRARY MUSEUM COMMUNITY ROOM FROM 1 :00 TO 5:00 P.M., WITH FREE ADMISSION TO THE MUSEUM. NOW THEREFORE I, JEAN BARDARSON, MAYOR OF THE CITY OF SEWARD, ALASKA, DO HEREBY PROCLAIM THURSDAY, AUGUST 28, 2015 As: FOUNDER'S DAY DATED THIS 24TH DAY OF AUGUST, 2015 THE CITY OF SEWARD, ALASKA JEAN BARDARSON, MAYOR 4 CITY OF SEWARD P.O. Box 167 Jim Hunt, City Manager Seward, AK 99664 Telephone (907)224-4 MANAGER'S REPORT Facsimile (907)224-4 For August 24, 2015 Council Meeting Reporting Dates August 11th- 18th, 2015 The following purchase orders for between$10,000 and$50,000 have been approved by the City Manager since the last council meeting: NONE ADMINISTRATION • Conference call with Brad Gilman to discuss Lowell Canyon • Meeting with Nick Cline regarding KPB unrequested easements • Update of ARCTEC with John Foutz and Willard Dunham • Meeting with Public works director and Randy Vanderwood and Carl High from Alaska DOT to discuss upcoming road clearing and snow events • Meeting with US Army Corps of Engineers new Commander, COL Brooks along with Mr. Randy Bowker and Mr. Dave Frenier • Meeting with multiple department heads • Meeting with Amy Conrick, Community Transportation Association of America, re potential off season shuttle • Attended KPB Marijuana Task Force, AK Gasline Dev. Corp. Community Advisory Council teleconference • The Beautification Program has been suspended due to the resignation of the contractor • Attended Wellness Committee meeting • HARBOR • The Harbor staff had a busy Derby with no major problems. • Hamilton Construction had one of their barges show up off g P to load quarry equipment. • Preparing to send letters to A, B, and C-float slip holders on the relocation plan for the replacement of the Floats. • Plans for National Park Service Visitor Center Plaza(see attached) PUBLIC WORKS Streets: • Painting is almost completed • Preparing for Winter; Ordering atchin sand, calcium nitrate, cold mix for etc. P g potholes, clearing ditches Water/Wastewater: • Finishing construction on the new blower building at Lowell Point, once completed the blower will be moved in and the airlines to the bio domes will be connected • The Lowell Point Wastewater lagoon will begin discharging soon as it is nearly full. Daily monitoring for odor continues. • Grounds maintenance around the City facilities in ongoing 5 • The base of the North Seward Water Storage Tank has been poured and construction has gone pretty smooth. Administration: • RFQ for the Certification of Public Rights of Way has been solicited, responses are due 08/27/2015 ELECTRIC • Generator 5,the second of the two generators, was scheduled to move into the building the week of August 17th -21St. We had a successful test on Monday August 10th and turned over the unit to EPS for moving. • The electric department is working with other rail belt utilities on the possible formation of a unified system operator for the economic dispatch of all generation. LIBRARY July 2015 Statistics • 22445 Front Door Counter • 1452 Museum/Movie Admission • 4 Programs • 26 Passport applications • 43 Notaries • 132 Room Uses • 10 Proctored Exams • 2362 Public computer sessions News and Updates • The Seward Community Library Association resumed monthly meetings on Thursday, August 20th. Meetings will be held every third Thursday of the month. • The Resurrection Bay Historical Society Founder's Day event will be held on Friday,Y y, gust 28th at 1-5 pm with refreshments, slideshows, drawings and all day free museum admission. The Resurrection Bay Historical Society will resume monthly meetings on the fourth Thursday of each month on September 24th. • Mark your calendars for the Annual Library Museum Open House on Saturday,November 14th. Stay tuned for details! SPRD Sports &Rec Division: • Stylin' Stitches Youth Soccer League Season came to a close August 12th on a beautiful sunny day. Hopefully everybody had a blast! Seward Parks& Rec would like to thank everybody who made the season a great one. Teen and Youth Center • Attendance numbers are averaging 15 to 25 High School students daily. • Prepping for the upcoming school season offering a drawing to win prizes the 1st week of school. • 2015/16 Teen Council applications are available teens are encouraged to be a part of this active and involved group. Applications are due September 8th. Teen Rec Room • 15 to 30 High School participants enjoy the evening and nightly recreation activities. The August calendar is packed full of in-house and off-site programs. Staff are preparing for the upcoming school season,offering a drawing to win prizes the first week of school. 2 6 • 2015/16 Teen Council applications are available to all teens. Enthusiastic, caring, rambunctious or studious and serious teens are encouraged to be a part of this active and involved group. Applications are due September 8th. • Staff and TYC Council members are coordinating with JW,manager of Blackwater Railroad band to host another Open Jam Session with HS Students and local musicians. The next big event will be Thursday, September 9th at 6 pm. Closely related, SPRD is working with JW Frye to launch a teen music program in Seward through the Rec Room. Funding has been acquired to buy instruments. Eventually the program will be statewide, and Mr. Frye has already been working with Homer and Soldotna teens. Park Maintenance& Campgrounds • The season is beginning to wind down as the Salmon Derby has wrapped up and our Alaskan crowd has headed back home. Staff is beginning to trickle out as the college and school year is approaching. • We are working on updating our campground park rules and regulations, as well as provide bulletin more high quality our campground • We have enjoyed a 16% increase in camper nights and just hit the$550,000 revenue mark. The information center. automated pay stations are continuing to better serve the customers and staffs as 87% of our customers are choosing to pay with credit card, and processes are becoming more efficient and effective. • As of August 17th the sewer dump station pay station has brought in$18,900. We are looking forward to making improvements to our restrooms and shower house as well as some much needed warehouse storage improvements. Compliments on our lovely gardens, improved cemeteries and greener parks continue to be received by locals and visitors. Parking: • 10 permits sold this past week, slowly marking the decline of the parking season. • 12 tickets written • 4 Tickets were paid • This week last year we brought in$33,860. This year we brought in$43,367 making a difference of +$9,507 • Parking stalls were relined before the start of the derby and will be touched up again. • Seward Salmon Derby is over. It was a fantastic time for everyone here in parking. The busy sunny days brought in great revenue and many new faces to Seward. FINANCE • The finance department continues to pursue refinancing the Long-Term Care Facility and Electric revenue bonds. Pricing on the potential refunding will take place this week and if present value savings reach our desired 4%threshold, the refunding will close next month at a possible savings of over$1 Million. • The finance department completed the process of importing 3 years of historical revenue and expenses into the new accounting system. We have distributed budget preparation materials to department heads and are now formatting reports for the upcoming budget cycle. • Finance is pleased to announce that we have hired a new utility cashier. Please stop by and welcome Shaarka. 3 7 .. , . , GAfr.01/WALL AS=EN; — ralearbiag"61.2°1740ENSTING . . uartga Tsbotwamm, MCA EXISTCG DU/AkSTER ----"--*----,„.„„s„,. Otit06111 IT E 'A Or TAI4 CUM WALL- I 0 ., wawa N AMi4 km I G , -4_., -.t. 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Sponsored by: City Attorney Introduction: August 10, 2015 Public Hearing:August 24, 2015 Enactment: August 24, 2015 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING CHAPTERS 11.01 AND 11.05 OF THE CITY'S VEHICLE AND TRAFFIC CODE, ADOPTING STATE OF ALASKA TRAFFIC LAWS, ADOPTING THE SURCHARGE REQUIRED BY AS 29.25.074, AND UPDATING ENFORCEMENT PROVISIONS RELATED TO TRAFFIC VIOLATIONS WHEREAS, the purpose of this ordinance is to update the Vehicle and Traffic Code and conform the City's vehicle traffic violation enforcement to state requirements; and WHEREAS, the City's adoption of the Alaska Traffic Bail Forfeiture Schedule needs to be updated so that offenses can be disposed of without a court appearance and to provide that any amendments to the Alaska Traffic Bail Forfeiture Schedule are adopted by the City without further action from time to time to remain consistent with state law; and WHEREAS, the City is required to adopt an ordinance requiring a surcharge to be paid, in addition to fines provided in the Alaska Traffic Bail Forfeiture Schedule. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, HEREBY ORDAINS that: Section 1. Seward City Code Chapter 11 is amended as follows: (Deletions are Bold StFilw roughs; Additions are Bold Underline) TITLE 11 VEHICLES AND TRAFFIC Chapter 11.01. - General Provisions Chapter 11.05. - Traffic-Control Devices Chapter 11.10. - Operation of Vehicles Chapter 11.15. - Stopping, Standing and Parking Chapter 11.20. - Special Stops Chapter 11.25. - Sizes, Weights and Loads Chapter 11.30. - Equipment Chapter 11.35. - Pedestrians Chapter 11.40. - Accidents 9 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 Chapter 11.45. - Bicycles Chapter 11.01. General Provisions 11.01.001. State traffic laws adopted by reference. 11.01.002. Traffic fine schedule- adoption of state bail forfeiture schedules by reference. 11.01.003. General penalty. 11.01.004. Traffic fine schedule for local traffic offenses 11.01.005. State surcharge. .! .! !. • . . . . .•. - . . . . : • . . • • 11.01.015. Persons propelling pushcarts, riding animals, etc. 11.01.020. Compliance with title. •'• •'• - . . • . ; . • . . • . . ' . . . • . ' . . 11.01.035. Authority of police and fire department officials. I ! ! • , .., II • • . . . . . . . . . ! ! . 1 ! I . . . • . . 11.01.070. Permits required for parades or processions. 11.01.075. Carrying animals on outside of vehicle.• I.• ! . 1 ' . .. . . • • . 11.01.090. Sch l b 11.01.001. State traffic laws adopted by reference. The city adopts by reference all vehicle and traffic statutes and regulations of the state of Alaska, creating minor offenses, as that term is defined in Minor Offense Rule 2 of the Alaska Rules of Court, as they presently exist and as they may be revised in the future, as part of the traffic code for the city. 11.01.002. Traffic fine schedule- adoption of state bail forfeiture schedules by reference. The city adopts as its traffic fine schedule for state offenses the "Traffic Bail Forfeiture Schedule" and the "Oversize Vehicle Bail Forfeiture Schedule" in Administrative Rules 43.1 and 43.6 of the Alaska Rules of Court and any other bail forfeiture schedules relating to vehicles adopted by the Alaska Supreme Court. In addition, the city adopts all amendments of those schedules that become effective after the effective date of this ordinance. Citations for offenses listed on these schedules may be disposed of as provided in AS 12.25.195-.230, without a court appearance, upon payment of the amounts listed plus the state surcharge required by AS 12.55.039 and AS 29.25.074. If a person charged with one of these offenses appears in court and is found guilty, the penalty 2 10 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 imposed for the offense may not exceed the amount listed for that offense on the schedule. Citations charging these offenses must meet the requirements of Minor Offense Rule 3 of the Alaska Rules of Court. If an offense is not listed on the fine schedule, the defendant must appear in court to answer to the charges. 11.01.003. General penalty. Unless another penalty is expressly provided by law, every person convicted of a violation of any provision of this title shall be punished by a fine of not more than $300.00. 11.01.004. Traffic fine schedule for local traffic offenses In accordance with AS 28.05.151(a), citations for the following offenses listed in this title, not otherwise provided by state law, may be disposed of as provided in AS 12.25.195- .230, without a court appearance, upon payment of the fine amounts listed below plus the state surcharge required by AS 12.55.039 and AS 29.25.074. The Rules of Minor Offense Procedure in the Alaska Rules of Court apply to all offenses listed below. Citations charging these offenses must meet the requirements of Minor Offense Rule 3. If a person charged with one of these offenses appears in court and is found guilty, the penalty imposed for the offense may not exceed $300.00. These fines may not be judicially reduced. The fine amounts listed below are doubled for motor vehicle or traffic offenses committed in a highway work zone or traffic safety corridor, as those terms are defined in AS 28.90.990 and 13 AAC 40.010(b). An offense listed in this schedule may not be disposed of without court appearance if the offense is in connection with a motor vehicle accident that results in the death of a person. Section Offense Description Fine Amount 11.01.075 Transporting live animal outside of motor vehicle $50 11.05.055(b) Vehicles proceeding into closed streets $50 11.15.030 An•le 'arkin' where not •ermitted $25 11.15.040 Abandoned vehicle $25/da 11.15.050 Parkin' as to obstruct traffic $25 11.15.065 Parking adjacent to schools in violation of signs $25 11.15.070 Parking on narrow streets in violation of signs $25 11.15.075 Parking on one-way streets in violation of signs $25 11.15.080(b) Parking in hazardous or congested places in $25 violation of signs 11.15.085(b), (c) Parking in violation of posted hours $25 11.15.087(a), (b) Parking when prohibited during snow/ice removal $25 11.15.105 Parking of a vehicle in excess of one ton in $50 prohibited area. 11.25.035 Failure to have valid permit for oversize vehicle $250 3 11 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 11.01.005. State surcharge. In addition to any penalty prescribed by law, a defendant convicted of violating a city ordinance shall pay the surcharge required under AS 12.55.039 and 29.25.074. All such surcharges collected shall be remitted to the State of Alaska as required by AS 29.25.074.•.! .! !. • . . . . . .. . . . . . . • . .. . . . . . thistitle-or-bstat, s. . I • 11.01.015. Persons propelling pushcarts, riding animals, etc.1 Every person driving any motor vehicle, operating a bicycle, propelling any pushcart or riding an animal upon a roadway, and any person driving any animal-drawn vehicle, shall be subject to the provisions of this title : : : •• : : • . . • • . . • • • and regulations set forth in 13 AAC Chapter 02, except those provisions-of-this-title which by their very nature can have no application. (Ord. 368, §01.4, 1969; Ord. 610, 1988) 11.01.020. Compliance with title. It is a violation for any person to do any act forbidden or fail to perform any act required in this title. (Ord. 368, 3C 01.2, 1969; Ord. 610, 1988) .! .! . . • . ; . • . . • . . ' . ' ,2•• . . . . • , , ., . • • . • , •• • . :, , • • , . . . • . . • . . . • • • • ,, , , e . • - •. . . . . • • . . . . . - .. . . , . • See Chapter 9.05 as to animals generally. See § 7.10.534 as to operation of bicycles in the small boat harbor. See AS 28.15 for driver's licenses. 4 12 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 (Ord. 368, §1.3, 1969) 11.01.035. Authority of police and fire department officials. (a) It shall be the duty of the officers of the police department or such officers as are assigned by the chief of police to enforce all street and highway traffic laws of this city and all of the state vehicle laws applicable to street and highway traffic in this city. (b) Officers of the police department or such officers as are assigned by the chief of police are hereby authorized to direct all traffic by voice, hand or signal in conformance with traffic laws; provided, that in the event of a fire or other emergency or to expedite traffic or to safeguard pedestrians, officers of the police department may direct traffic as conditions may require notwithstanding the provisions of the traffic laws. (c) Officers of the fire depal tfflent, when at the scene of a fire, may direct or assist the police in directing traffic thereat or in the immediate vicinity. (d) No person shall willfully fail or refuse to comply with any lawful order or direction of a police officer or fire department official. (Ord. 368, § 1.1 and •1.3, 1969) I I• ! . . _ . . . . . • . • • , . . . .. . . •• . . . . . . • , . • . • • . • • (Ord. 368, §1.5, 1969) .!• . • . . . . . .. . . . . • . .. , • , . . • . specified-threetiens • . • . . . . . . . . . • • • . , . ; : 5 13 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 • / . , . / , • . . • • . . . . • • . • ., . . . . . • • . . . • . . • . , I • • _ . . • 6 14 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 sectiion. I1 . 1 •. . . • . . • . . • . • • . • • • motion. .. • . . • . . . . . _ . . . . (Ord. 368, § 7.58, 1969) I . . . .; . , •., . . . . . . • • . . . . . . . . . . . . . . , • . • . • . , • • h. " ch vehicle uabu�• . 11.01.070. Permits required for parades or processions. No procession or parade, except the armed forces of the United States or the state and the forces of the police and fire departments, shall occupy, march or proceed along any street except in accordance with a permit issued by the chief of police and such other regulations as are set forth herein which may apply. (Ord. 368, § 7.54, 1969) 11.01.075. Carrying animals on outside of vehicle. It shall be unlawful for any person to transport any living animal on the r nningbeard fender's, hood oth utside part of any motor vehicle, unless suitable harness, cage or enclosure is provided and so attached as to protect such animal from falling or being thrown therefrom. 7 15 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 (Ord. 368, ,¢ 7.59, 1969) •'• .! • '. ' • • • • • • • • • • {8►;r -368, , � '; deyy � . . � (3) Park; • • •• . . . . . •. . • . . • • . .: •++ .. • . . . - . . . • • "woes ++ . ++ • . . ++ .. .. (Ord. 368. §13.156, 1969) 8 16 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 • . . , . - : . . ' . . e€ , , • 9 17 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 • w. (Ord 368, § 7.75, 1969) • / I . I I / I Chapter 11.05. Traffic-Control Devices 11.05.010. Authority to install. 11.05.015. Specifications. 1 1 • • 1 1 . . . . •• . • 1 •• • 11.05.045. Crosswalks and safety zones. 11.05.050. Traffic lanes. 11.05.055. Streets closed to traffic. 11.05.010. Authority to install. The public works department director, under the direction of the city manager and chief of police, shall place and maintain traffic-control signs, signals and devices when and as required under this title and other traffic ordinances of this city to make effective such provisions, and may place and maintain such additional traffic-control devices ash necessary or desirable to regulate traffic under this title and other traffic ordinances of this city or under state law (see AS 28.01.0100(d)), or to guide or warn traffic. (Ord. 368, §2.19, 1969; Ord. 610, 1988; Ord. 2002-02) 11.05.015. Specifications. All traffic-control signs, signals and devices shall so far as practicable conform to the current Alaska Traffic Manual (see AS 28.01.010(d)) • . . . . . . _ .• : • . . . All signs and signals required under this title for a particular purpose shall so far as practicable be uniform as to type and location throughout the city. All traffic-control devices so erected and not consistent with the provisions of state law or this title shall be official traffic-control devices. (Ord. 368, 5C 2.20, 1969; Ord. 610, 1988) 10 18 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 . • - , . . . • . . . . . . , . . , • : . . . . . _ • . i 1 : I • I i: i . . . •• (Ord. 368, §2.22, 1969; Ord. 610, 1988) I ! 1 \ • . y . . . . seams without-notice: (Ord. 368, §2.23, 1969) 1 • • • (Ord. 368, §2.24, 1969) . •• . . . . • . • . • • . . . • - _ • 11 19 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 the-same; • . -• . • . , . • , _ . . . . . . . . . . . . . . • : . ••(Ord. 368, §2.25, 1969) 11.05.045. Crosswalks and safety zones. The public works department director, under the direction of the city manager and chief of police, is hereby authorized: (1) To designate and maintain, by appropriate devices, marks or lines upon the surface of the roadway, crosswalks at intersections where ice-his-opinion there may be is-particular-danger to pedestrians crossing the roadway,and-at-such . . • . . . , , • . .. • . . . ; and (2) To establish safety zones of such kind and character and at such places as he-may deem necessary for the protection of pedestrians. (Ord. 368, §2.26, 1969; Ord. 2002-02) 11.05.050. Traffic lanes. (a) The public works department director, under the direction of the city manager and chief of police, is hereby authorized to mark traffic lanes upon the roadway highway-where a regular alignment of traffic is necessary. (Ord. 368, §2.27, 1969; Ord. 2002-02) 11.05.055. Streets closed to traffic. (a) The chief of police, fire chief, public works director e•-and the city manager shall-his each authorized to close streets to traffic. (b) Whenever any street is closed to the use of traffic and the same is so indicated by authorized signs or barriers, no vehicle shall proceed into such street or any portion thereof except as directed by such signs. Whenever a street is closed, notice shall immediately be given to the fire chief 12 20 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 (Ord. 368, §2.28, 1969; Ord. 2002-02) Chapter 11.10. Operation of Vehicles 1 1 1 • 11.10.025. Authority to change speed limits. 1 I 1 . 1 1 1 1 • • •• 1 1 1 1 . 1 I 1 • 11.10.070. Crossing fre hoses 1 1 . • I 1 . • I 1 1 1 . 1 11 • • .. . 1 I . • 11 - 1 1 . . 1 • • 1 1 - - 1 1 1 • 11.10.160. Noise and . ok„ 11.10.175. Negligent driving: 1 1 1 . ' 13 21 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 {Ord. 368, §2.29, 1969) 1 1 •Z 10 015 Speed r ulations • 1 • . • . . . • • . , . . . - . . - • . • •, • .•• • • • • . . • . . • • • • . • • • . •• . . • • . • • • • • • •• {Ord. 368, §3.30, 1969; Ord 516, 1983) • • a. In any alley; • • . . _ . . . . • • • , • • . • . .. . . . . . • •7 sehool-eressing . . . • - • . . • • . • • • . • . . . • • . .;• (Ord. 368, §3.31, 1969; Ord. 610, 1988; Ord. 2007 001, §1, 2007) 11.10.025. Authority to change speed limits. Whenever the chief of police determines upon the basis of an engineering and traffic investigation that a speed greater or less than 25 miles per hour would facilitate the orderly movement of vehicular traffic and would be reasonable and safe on any street or highway otherwise subject to a limit of 25 miles per hour under this chapter, the chief of police may determine and declare a prima facie speed limit of 15 to 55 miles per hour, whichever is found most appropriate to facilitate the orderly movement of traffic and is reasonable and safe, which declared speed limit shall be effective when appropriate mechanical, electrical or painted signs giving notice thereof are erected upon the street or highway. (Ord. 368, §3.32; 1969; Ord. 610, 1988; Ord. 2007-001, §2, 2007) 14 22 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 {Ord. 368, §3.33, 1969) 1 I . . . . . . . . . . y. � seetien. roadway be entered. . , I I • 1 1 . . • - -• herehb es--fellows: 15 23 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 v vek-iele. b.. side of th h• 1 , , !.!. . .. . . . . . . . • . . . • . • , , 16 24 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 , , II .. 1 • • , , I I I . . . . . . . . . . . .• . . (Ord. 368, § 7.51, 1969; Ord. 610, 1988) {Ord. 368, § 7.52, 1969) I ' (Ord. 368, § 7.53, 1969) I I I I I •• • • (Ord. 368, § 7.55, 1969) 17 25 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 7.56, (Ord. 368, § 7.57, 1969) I . • •• I • ! • . • . . . . . . . • • (Ord. 368, § 7.61, 1969) . !. . • . . . . . • 18 26 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 , . , . , , , 11.10.120. , (Ord. 368, § 7.64, 1969) vehicle; _ . nieving-vehieles; • . I I ••. . . . . . . • . . .. . . . . . I. e-in safet . • 19 27 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 officer, . . . • • !• • . _ . . . • ; . • . .. . • (014,368.T-§-7,69,T49694 7.69, {Ord. 368, § 7.70, 1969) ..4'such t.• 1 + 1 aE'R�� ., :vu , {Ord. 368, § 7.71, 1969) 20 28 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 11.10.155. T g of yehicl s. • • . • , • • . . . . •• . • . . . • , • • . • •, • . . • , . • - . . • ,•• . . . .. _ . - • . . ., , . . • . . . , . • . . :, , . (Ord. 368,§ 7.72, 1969) 4-1,1-0,1-60,-Noise-and-smoke, . • • • . . , • • . . ., . , • . • , . . . . • . . . . . . . . . •, • (4)."17-3681+777-44969") • ••• . • . . • • , . • .. 1 • . • . .• . . . • • .•. . • . .. •• . . . . , . •• . .. .• III'. . (Ord. 368, § 7.77, 1969) 21 29 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 . . . , ;, . . • . . . • • . • • . . . . . . . . . . •• . . • . . • , , • . •. ., . . • .. . . •_ • . • . . . " • . . • • . . . . . • • . . . . . . . • , , .' , • .. • • . .., . . , • . • . . . - , , . • . . , . • - {Ord. 368, § 7.79, 1969) - , Chapter 11.15. Stopping, Standing and Parking 11.15.010. Applicability of chapter. 11.15.015. Regulations not exclusive. . .! -!. _ . - . . . • • . 11.15.030. Angle parking. 11.15.040. Abandoned vehicles. 11.15.050. Parking not to obstruct traffic. . . .! . !. ' • .. . • • , .. . . . . • . . . . . 11.15.065. Parking adjacent to schools. 11.15.070. Parking on narrow streets or highways. 11.15.075. Standing or parking on one-way streets. 11.15.080. Stopping, standing or parking near hazardous or congested places. 11.15.085. Parking prohibited during certain hours. 11.15.087. Parking prohibited during snow and ice removal operations. 11.15.092. Parking time limited. 11.15.100. Camping. 11.15.105. Trucks in excess of one ton on certain streets. 22 30 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 11.15.110. Public carrier stops and stands. 11.15.120. Buses and t.. .i..ab_ 11.15.130. Paid parking. 11.15.135. Registered owner responsible for illegal parking. 11.15.140. Authority to impound vehicles; redemption or sale of impounded vehicles. 11.15.010. Applicability of chapter. The provisions of this chapter prohibiting the standing or parking of a vehicle shall apply at all times, or at those times herein specified or as indicated on official signs except when it is necessary to stop a vehicle to avoid conflict with other traffic or in compliance with the directions of a police officer or official traffic-control device. (Ord. 368, §9.105, 1969; Ord. 610, 1988) 11.15.015. Regulations not exclusive. The provisions of this chapter imposing a time limit on parking shall not relieve any person from the duty to observe other more restrictive provisions prohibiting or limiting the stopping, standing or parking of vehicles in specified places or at specified times. (Ord. 368, §9.104, 1969; Ord. 610, 1988) . .! -!. . . . . • • . • • (Ord. 368, § 7.73, 1969) • . , . , 11.15.030. Angle parking. The chief of police shall determine upon what streets or highways angle parking shall be permitted and shall mark or sign such streets. Angle parking shall not be indicated or permitted at any place where passing traffic would thereby be caused or required to drive on the left side of the roadway or where angle parking would create a hazard to passing traffic. (Ord. 368, §8.89, 1969) 23 31 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 • 11.15.040. Abandoned vehicles. "Abandoned vehicles," for the purposes of this title, shall mean all vehicles which have been parked in the same location upon any city street or thoroughfare for a time period in excess of 96 hours after an illegal 24 hour parking citation has been attached to the vehicle. (Ord. 368, §8.81, 1969; Ord. 610, 1988) • . . . : . • . . . . . . • , : • • • . . , • . . (1) On a sidewalk; (5) On ., alk; with ction 11 20 045 - - feet of the entrance; . . . . : . • . . . .. - . . . . . •; £ • . . . . . . . . . . •• • . . . . . . . . . • i 24 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 any--person. • . . . . . . . . 1 1 1 {Ord. 368, §9.92, 1969; Ord. 610, 1988) 11.15.050. Parking not to obstruct traffic. (a) No person shall park any vehicle upon a street or highway, other than an alley, in such a manner or under such conditions as to leave available less than ten feet from the centerline of such roadway for the free movement of vehicular traffic. (b) It shall be unlawful for any person to park or cause to be parked any motor vehicle in such a position as would block the way of vehicular traffic in any public parking lot. (Ord. 368, 5S 9.93, 1969; Ord. 585, 1987) (Ora 26Q R n 94 1969} 25 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 • . .1 • ! I . • . , • • - . .. . . . . • . . . . . • au-operator. {Ord. 368, §9.95, 1969) 11.15.065. Parking adjacent to schools. (a) The chief of police is hereby authorized to erect signs indicating no parking upon either or both sides of any street or highway adjacent to any school property when such parking would, in his opinion, interfere with traffic or create a hazardous situation. (b) When official signs are erected indicating no parking upon either side of a street adjacent to any school property as authorized herein, no person shall park a vehicle in any such designated place. (See § 10.10.020 for similar provision.) (Ord. 368, §9.96, 1969) 11.15.070. Parking on narrow streets or highways. (a) The chief of police is hereby authorized to erect signs indicating no parking upon any street or highway when the width of the roadway does not exceed 26 feet, or upon one side of a street or highway as indicated by such signs when the width of the roadway does not exceed 35 feet. (b) When official signs prohibiting parking are erected upon narrow streets or highways as authorized herein, no person shall park a vehicle upon any such street or highway in violation of any such sign. (Ord. 368, §9.97, 1969) 11.15.075. Standing or parking on one-way streets. The chief of police is hereby authorized to erect signs upon the left-hand side of any one- way street or highway to prohibit the standing or parking of vehicles, and when such signs are in place, no person shall stand or park a vehicle upon such left-hand side in violation of any such sign. (Ord. 368, §9.99, 1969) 11.15.080. Stopping, standing or parking near hazardous or congested places. (a) The chief of police is hereby authorized to determine and designate by proper signs, places in which the stopping, standing or parking of vehicles would create an especially hazardous condition or would cause unusual delay to traffic. (b) When official signs are erected at hazardous or congested places as authorized herein no person shall stop, stand, or park a vehicle in any such designated place. (Ord. 368, §9.99, 1969) 26 34 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 11.15.085.Parking prohibited during certain hours. (a) The public works director is hereby authorized to determine and designate by proper signs, places in which stopping, standing or parking of vehicles during certain hours of the day would create a hazardous condition or would cause unusual delay to traffic. (b) When signs are placed on streets prohibiting parking of vehicles, no person shall park any vehicle in closed or restricted areas, and any vehicle found so parked shall be impounded. (c) When official signs prohibiting parking during certain hours of the day are erected as authorized, no person shall stop, stand or park a vehicle in any such designated place. (Ord. 368, §9.100, 1969; Ord. 96-32; Ord. 2002-02) 11.15.087.Parking prohibited during snow and ice removal operations. (a) In the downtown area, designated as those streets between Railway and Jefferson Streets and between Fourth and Fifth Avenues, and in the harbor area, designated as that portion of Fourth Avenue between North Harbor and South Harbor Streets, it shall be unlawful for any person to park on those streets during the hours indicated on temporary signs which will be placed on the streets by the public works department prior to any snow removal operations. Vehicles parked in violation of this section will be impounded. (b) In all other areas of the city, other than the "downtown" area, it shall be unlawful for any person to park, or cause a vehicle, camper,boat or other item to be parked, on the right-of-way for longer than 24 hours during those times when snow removal by the public works department is occurring. Vehicles parked in violation of this section shall be impounded. (c) Whenever any police officer finds, or is notified by the public works director or his designated representative, that a vehicle is in violation of this section, the officer is authorized to require the owner, driver or other person responsible for the vehicle to remove the vehicle to a position off the area requiring snow removal, or the officer may have the vehicle impounded. (Ord. 96-32; Ord. 2002-02) 11.15.092. Parking time limited. The council by resolution may establish time limits for parking in public parking lots and on designated public streets or parts thereof and may provide for exceptions to such limits. The city shall place signs on all public parking lots, streets and public ways designated for limited time parking under this section indicating the limitations and any exceptions thereto. Where a sign is placed indicating limited time parking as established by council resolution, no person may stop, stand or park a vehicle for a time exceeding the indicated parking time limit. (Ord. 96-11) 27 35 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 •. .I t . • • . . . •• . • . . . . .. . _ . 3 • • • • • , .. •.1 . . . . . . • . - . • . . . . . • • . • . • • • • • . • 11.15.100. Camping! No camping shall be allowed within the city limits except in areas designated as public campgrounds by resolution of the city council. In no event shall camping by one party be allowed for more than 14 consecutive days in one designated campground. Fees for camping shall be set by resolution of the city council. (Ord. 462, 1978) 11.15.105. Trucks in excess of one ton on certain streets. (a) No vehicles in excess of one ton capacity shall be parked on Fourth Avenue between Railway Avenue and Adams Street. (b) Subsection (a) of this section shall not apply when a vehicle is in process of loading or unloading merchandise. (Ord. 368, §9.103, 1969) 11.15.110. Public carrier stops and stands.5 The chief of police, upon approval of the city manager, is hereby authorized to establish bus stops, loading zones and other common carrier zones on such public streets or highways in such places and in such number as he-the manager shall determine to be of the greatest benefit and convenience to the public, and every such bus stop, loading zone or other common carrier zone shall be designated by appropriate signs. (Ord. 368, §10.106, 1969; Ord. 612, § 7, 1989) 3 a See Chapter 7.15 as to camping on public property; see Chapter 8.15 as to trailers and camping generally. s See Chapter 8.20 as to taxicabs and other vehicles for hire. 28 36 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 6 , , • • • of other vehicular traffic • • . ., , . , . . 11.15.130. Paid parking. The city manager may establish parking meter zones and provide for the operation of paid parking lots and may set-collect fees for parking on city-owned property or city rights-of- way consistent with fees set by resolution of the city council. (Ord. No. 94-18) 11.15.135. Registered owner responsible for illegal parking. Every person in whose name a vehicle is registered (licensed) shall be responsible for any parking or angle parking of said vehicle and for all offenses other than moving violations of this title. It shall be no defense to such charge that the vehicle was illegally parked or angle parked or used by another unless it be shown that at such time the vehicle was being used without the consent of the registered (licensed) owner thereof. (Ord. 368, k 14.167, 1969; Ord. 610, 1988) 29 37 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 11.15.140. Authority to impound vehicles; redemption or sale of impounded vehicles. (a) Whenever any vehicle shall be located or is standing upon any street, alley right-of-way or designated municipal parking lot in violation of the provisions of this title or any rule or regulation adopted pursuant thereto, or whenever any vehicle shall be found to be mechanically unsafe to operate upon the street or alley, or whenever the driver of any vehicle shall be required or is taken into custody by an officer for an offense involving either driving while under the influence of intoxicating liquor, reckless driving, negligent driving, or any felony, such vehicle may be removed from the city streets, alleys and designated municipal parking lots and may be impounded at a place to be designated by the city manager. The police shall, in the proper case and whenever any other provision of this code is violated, cause a complaint to be filed against the person committing such offense. When the owner or authorized representative of the owner of the vehicle claims the same, he shall be informed of the nature and circumstances causing the impoundment of such vehicle and to obtain release thereof shall pay all towing and other charges, which charges shall not exceed the following schedule: (1) A minimum towing charge of $10.00 will be charged for any vehicle impounded. (2) A storage fee of$2.00 per day or any fraction thereof shall be charged for any vehicle which remains impounded after the first 24 hours. If the operator or owner of the vehicle, upon hearing before the municipal magistrate, is found not guilty of the violation of which he is charged, the impounded vehicle shall be released immediately to the owner without collection of fees or other charges. If the owner or operator of such vehicle is found guilty by the magistrate, any fine imposed under the provisions of the appropriate section of this ordinance shall be in addition to the towing and storage charges herein prescribed. (b) No person shall allow, permit or suffer any vehicle registered in his name to stand or park upon or be operated upon any street in this city in violation of this title or any rule or regulation adopted or issued pursuant thereto. (c) After a vehicle has been impounded for more than three months in the city vehicle pound, the chief of police shall cause to be sent by registered mail a notice to both the legal and registered owner thereof, if different persons, if with the exercise of due diligence the owner's name can be ascertained. The notice shall accurately describe the vehicle, give the date the vehicle was impounded and inform the owner or owners that unless they reclaim the vehicle within ten days from the dispatch thereof, the vehicle shall be sold. Not less than 15 days after the dispatch of the letter, if such letter can be sent, and in any event even if such letter cannot be sent, the chief of police shall cause to be published once in a newspaper of general circulation in the city a description of the vehicle, the owner's name, if known, and state the fact that the vehicle and other similar vehicles, similarly described, will be sold at 30 38 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 public auction to the highest responsible bidder at a public sale under the direction of the city manager at a specified time and place not less than ten days after the publication of the notice of sale. The chief of police shall keep a permanent accurate record of all cars impounded, containing the date of impounding, description of vehicle, cause of which impounded, date of redemption if redeemed and amount paid upon redemption, date of letter to owner, if known,notice of sale, record of sale and price paid at sale and name of purchaser. (d) The procedure set forth in subsection (c) of this section shall be followed in the disposition of abandoned vehicles, except that the period during which the abandoned vehicles must be impounded prior to the commencement of such procedures is 30 days. fOrd. 368, §14.169, 1969; Ord. 442, 1977; Ord. 548,§2, 1985; Ord. 610, 1988) Chapter 11.20. Special Stops 11.20.010. Designation of arterial streets and hazardous intersections; erection of stop signs. . . • . . . •• . . . .. •. •. . . • . . 1 1 11.20.040. Yield right-of-way signs.•.-!.!• . a .. . . . . . . . . . . . ... 11.20.010. Designation of arterial streets and hazardous intersections; erection of stop signs. The chief of police may designate and describe arterial streets or highways and when so designated it shall be the duty of the public works department to place and maintain a stop sign on each and every street or highway intersecting the portion of such arterial street or highway described and designated as such unless traffic at any such intersection is controlled at all times by traffic-control signals; provided, that at the intersection of two such arterial streets or highways or at the intersection of an arterial street and a heavy traffic streets, not so designated, stop signs shall be erected at the approaches of either of such streets as may be determined by the chief of police on the basis of an engineering and traffic study.•_1•! . . • •_. . . . . . .. • . . . . . •. . . . f The chief of police is authorized to determine and designate intersections where a particular hazard exists upon other than arterial streets or highways and to determine whether vehicles shall stop at one or more entrances to any such intersection, and shall erect a stop sign at every such place where a stop is required. (c) Stop signs shall conform as far as practical to the current edition of the Alaska Traffic Manual. 31 39 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 (Ord. 368, 5C 6.41 and 6.42, 1969) . . • . . . . . . . . :" • - . . . . . . _ .. • . :, . . . . y . . . . . • ' • . . . • . • • I . I. I / I ' . . . - • • • . . • :. . . . • . • . . . . . • , . . • . . . . • I I I / I I I I • , .-!.! . . . . . • . . f - f 11.20.040. Yield right-of-way signs. (a) The chief of police is authorized to determine and designate intersections where particular hazard exists upon other than arterial streets or highways and to determine whether vehicles shall yield right-of-way at one or more entrances to any such intersection, and shall erect yield right-of-way signs at every such approach to an intersection so determined. Yield signs shall conform as far as practicable to the current Alaska Traffic Manual • _ . - • . . • . : . • • . . . . • . 32 40 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 (Ord. 368, § 6.47, 1969) . • . .• ., • . . . . . • . . . ; is being openee or cclosed. , Chapter 11.25. Sizes, Weights and Loads 11.25.010. Width of hi i 11.25.015. He:ght of veh• l 11.25.030. Weight of vehicle. 11.25.035. Permits for oversize or overweight vehicles; pilot cars. 11.25.040. Permit application; bond. 11.25.045. Permit fees. 33 41 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 1 . . • . •- •! • • . . • • . • •1 . 1 1 ! . . • 11.25.075. Transportation of explosives within city. 11.25.010.Width of vehicles {Ord. 368, §11.109, 1969) 11.25.015. ueight of vehicle • • , , >>• c 2 02n t ength o f vehicle. 11 • • • • • . • . • . {Ord. 368, §11.111, 1969) 11.25.025. r ength of loads. . . .. . . . . . . . . . . . . . . • . . . . . . . • . . .•• . . .- .! -! • . . . . . . . . . . . . . . • . . . . • . . i I . I 1 34 42 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 • . . 1 1 1•• . . . . •• , . . . . • . . . . • 1 1 • • • • . . . . . • • • • . . • . . . . .. • . . • 1 1 • • • • .. • 1 1 1 1 . . 111 1 1 1 • • • • •• • • • 1 1 1 • • • • ' 1 1 1 . • • • 1 111 • 16,000-P° 35 43 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 • • • . . . . , . . . . . . . . • . • • . • - • .t - portion-heree . . . . •, . . - . . . .. ! , ., ! . . . , • 11.25.035. Permits for oversize or overweight vehicles; pilot cars. (a) The city manager or designee may, upon application, as provided in section 11.25.040, issue a special permit in writing authorizing the applicant to operate or move a vehicle or combination of vehicles of a size, weight or load exceeding the maximum size or gross weight specified in this chapter on any public street or highway in this city, subject to the following terms and conditions: (1) Such vehicles may not be operated on any arterial street between 7:00 a.m. and 9:00 a.m., and between 3:00 p.m. and 6:00 p.m., or in the central business traffic district between 6:00 a.m. and 11:00 p.m. No permits shall be issued for vehicle movement on any Saturday, Sunday or holiday. (2) Such vehicles may be operated only on streets or highways where the pavement is capable of carrying the weight and equipment without injury to such pavement, and along such routes as will least interfere with or endanger other users of the streets. (3) Such vehicles otherwise conform to all State of Alaska requirements. f� .. . . . • , • • . . . • . . . . • • . . . . . . . . 36 44 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 loath in-width . (Ord. 368, § 11.114, 1969; Ord. 610, 1988) 11.25.040. Permit application; bond. (a) The permits referred to in § 11.25.035 may be obtained from the city manager upon written application therefor, setting forth a description of the object to be transported or the vehicle or vehicles to be driven, the route desired to be traversed, the hours within which it is desired to perform the work, the means of locomotion to be used and such other information as may be required. The applicant may be required, as a condition to the issuance of the permit, to execute and deliver to this city a good and sufficient surety or cash bond in the sum of not less than $1,000.00 conditioned to save the city harmless from all injuries which may be occasioned by reason of the granting of such permit, or the use of any public street or highway thereunder, or of any act or omission; provided, that the issuance of such permit shall not be construed as a waiver of the right of the city to recover for any injury to the street or highway or other property of the city resulting from transportation pursuant thereto. (b) The applicant will be charged for all costs incurred by the moving of power lines, telephone lines, traffic signals and other obstructions within the right-of-way. A cash deposit may be required to assure payment for these services. (c) The chief of police is hereby authorized to modify the terms and conditions set forth in the foregoing section, and to specify in such permits the routes to be traversed, the hours of operation and such other limitations necessary or desirable for the public convenience and safety. (Ord. 368, § 11.115, 1969; Ord. 610, 1988) 11.25.045. Permit fees. • : . . : , • . : '. • : •. . . . : 'In those cases where escort vehicles must be provided by this-the city or additional inspections are required, and- then th e t, the city manager is authorized to set a fee which in-his d=cr�Tshall be sufficient to reimburse-this-pay the city for its expenses. (Ord. 368, § 11.116, 1969; Ord. 610, 1988) 37 45 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 •! .• ..• • • • . . . , . . .. • .. • • , . . •, 4 �; I• / • I� •. I / /• • •! . • . . . . • . • • • malinger, (Ord 368, §11.119,.1969) (Ord. 368, §11.121, 1969) 11.25.075. Transportation of explosives within city.' No person shall move explosives through the city unless a permit from the city manager has been secured. In case explosives are moved through the city, the person moving the same shall have a vehicle on which explosives are being transported, clearly marked "EXPLOSIVES" Cross references - See § 7.10.234 as to explosives in the small boat harbor; see § 9.15.310, et seq., for related provisions. 38 46 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 and he—shall notify the chief of police and the fire chief when such explosives are to be transported. The chief of police and the fire chief shall assist in moving of any explosives by clearing a route which shall have been designated by the chief of police. The mover of any explosives through the city shall make arrangements for such transportation not less than 48 hours in advance and shall pay a fee sufficient to cover the city's expenses. (Ord. 368, 5C 11.122, 1969) Chapter 11.30. Equipment 11.30.010. Applicability of chapter. ! ! . . . • . • .•. -.• •_ • • . - . . . as . . >>•JV•in 04n• Rear lamp• 11 . . !.!• .. •• • • s • _ • . • • • • . . . 11•JV• • • . • • . • • .. - _ • • • 11.30.080. Brake. . !.! . • - • • . . • _ • . 11.30.090. M• ff 11.30.095. Cases and fume. >> in Inn ter• 11.30.105. W indsh:eld • ! !• - • • • • • • . • . • ▪ • !• • . . . .. • •. • •• .• . . . • . • !. • ' . . • • . . .. . . • .. . . . •• • . . . . 11.30.010. Applicability of chapter.•• • • • • • • • • • • ; • • • ••• • • • ••_otor vehicles operated upon the streets and highways within this city shall comply with federal and state regulations governing motor vehicle equipment and inspection. : • • • . . • • , . • . • . . • •• • (Ord. 368, 5C 12.147, 1969; Ord. 610, 1988) 39 47 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 !.! , . . . . • . . . . • . • • • • ' • • , (Ord. 368, §12.123, 1969)•• . . • • • -II . . . . . . • . . • . • . . • • u . s. . I � •t. . !.! I. - • . . . •• . . . .. . • • . I (Ord. 368, §12.125, 1969; Ord. 610, 1988) 40 48 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 •• • , • . . , .•,• • . • .. • . . . I.! - . . •. . • . • • , . , I , , r . . r • • . . .. • • . . . ..• - . • • . ! ! . . • . . • . !.I• . . . _ . . . . • • . . .• • . r . . . • . . . • . . . . . vehf .. • r • . . • . . . . , • cs.. 41 49 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 • . . . {Ord. 368, §12.129, 1969) - - 11.30.055. ettightsT {Ord. 368, §12.130, 1969) . • . • . , . . • • • • . • • • • . . . . . • . • . • {Ord.3.68, '-1 69). . . . I.! . . ' • . •. • • , •• . • • • •. • {Ord. 368, §12.132, 1969) • • • • . , . • , . . . . • . _ , . • . •• . . • , • . •-, 42 50 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 • • . . . . . • . . I i i . . . • . iii � -&1� . . flimme -°mes; a distance of 75 � t h d .,.»...... ... .., aa.a.�ssuc ucr .. . . seetion condYtions. (Ord. 368, §12.133, 1969) I I • : . . . .• . . .. . • • . . • . . . . • . . . . , ,•. •• . • . . • . . • • . . . . •• . . . . . . . . . • • • • . .. 43 51 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 . . , . : • • . . . . • . . . . •. . . • •. . . ' • . . . • •• . (Ord. 368, §12.134, 1969) . 11.30.080. u Miles-per Stopping 'tee 4-0 9.3 feet 4-5 20.8 feeet 20 3' 25 meet 30 833-feet 35 44370-feet 40 44&0-feet 45 8Qzvv., 0 feet (Ord. 368,§12.135, 1969) • . • . . . . . . . • . • . _! I . . , • otherwise be a 44 52 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 • • , , 11.30.090. Muf ers • (Ord. 368, §12.137, 1969) 11.30.095. Ca df . :, • . • • . , . . • . . (Ord. 368, §12.138, 1969) , 11.30.100. Mirrors •. • • • . . • . . . . . . . . . ' . . . . . . • ! . . • • . . • • • . • . . , _1 1 . . • • . • (Ord. 368,§12.139, 1969) 11.30.105. War a h• ld . {Ord. 368,§12.140, 1969) 45 53 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 • • . • . , •", • • . ' • . . • • . 7 ••• 11 • . .. . . .. . . . . • . . . . •' • • ' . . .. broken. • - .•• . _ • . .• • . , . . . , .• . . , .. . • . . .. • ., . , • '•• • • . . . • • • .. • . , . • ' •. . • . • . '•• 1• _1• t • • • .. . • . . • .• • • . • chapter, I . , • / • ' 46 54 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 • • . . .. 1 ! : . . . . • . . . . • . , . . • . . .. • . °. . • . . . • .• (Ord. 368,§12.145, 1969) . !. . . • • . . •• • . . . . the requirements this-- om Chapter 1 t 2c n a t i- . .! !. ' .. • . • .! • ' • 47 55 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 . .! !. ' . . . • . . . .! • !. _ . . . . . . .. • .•• . ! . . • . . . • . • . . 7.81, 1969) •• •. -.• . . _ . . _ • • _ . . . . . . • . • • . . . . • • . ! . ;, . „ , • • .. • • . . .! ! . . . • . . . . . . . . . . . _ :, . . . . :, . • . . . . • . . • . • . 48 56 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 •• • • . ., . • . . , . . . . . . . , (Ord. 368, § 7.85, 1969) - � , . . f 3 _ • , . . Chap«40. A is !•! !. .. . . • . . • . . . . I.! • • • .• , .. . . .• • • I I. I • • I.!• • . • . . • . . . • . . • '▪ •! '• ' • • .• !▪ •! !. •• .. • . • • . . • • • . . • . . . . . • . . • ••• . . • . . . . • . • • . . .! ! . 49 57 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 (Ord. 368, §1.9, 1969) • !.I • . . .. • . • . • . . , , . , !.! !. ! . - • .. . . • . . . . . .•• . . • • . . . . • . ' . • . . . • . . • . . . . • , .•. .. . . . • • . • . .' .. • • . .• : • • -, . . . • ..• • !•. . . • •. _ . . . . . • (Ord. 368, §1.12, 1969} •. • , . . . . • • _ . . . • r . , . . • .• _y . . . . . . • . • . . . . • , . . . . ! ,. • . . . . • . . . . . • . . . . . . . . . . . . . . . • , • . :. - ,! 50 58 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 within-48 hour the aee f f !•l • 1• . • . . . . . . . . • . . • .. • . • . ••• • f • • . , • •• , . , . • .• . . . . ,•. •�. .•, • . . . . . , . • . . . . •, . . . . . . . . •• . . . . . • • • . . • i • f .•• !.!• . • . • . . • . . . . • . .•• ' . .. • • •. . 1.1 1 . . . . . • . . ; ••• ,• •.• the-driven - • (Ord. 368, §1.17, 1969) - - Chapter 11.45. Bicycles8 ! I . . . • . . . . . . . . . . • . 8 See § 7.10.534 as to operation of bicycles in the small boat harbor. 51 59 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 - 1 Ac 02c Cli h• 4b45.035. r ,.t. .! !. . . . , . . .. - . . . • . •, • • ,•• • • , , , • . . , , . . . . . • ... _ . , • • • , • . . . •• , . . • . . . . . . . . . (Ord 368, §13.151, 1969) 11 -5 02G Cli * 1•• ____. �---.-bib ..v .cmczcs •• • . . • . . . . . . •, • . . • , • . • . • , • . . . • • • . section 1ia-- -1 0-1A6Q} .. . . (Ord. 368, §13.152, 1969) Bicycles. (a) : . : : . . • . • •° • ` •• • ` .. • . . • ' • . *. •• •• • . • • • • Wherever a usable path for bicycles has been provided adjacent to a roadway, bicycle riders shall use such path and shall not use the roadway. (b) Persons riding bicycles . : : , • . , , , • , • , . • - . • : : : . : . • : •: • • • . . in the business district shall use the roadway and shall not ride a bicycle on the sidewalk. A person moving or transporting a bicycle upon the sidewalk of the business district shall be dismounted and shall walk alongside of the bicycle. 52 60 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 (c) . . , Extreme caution shall be used while riding or moving a bicycle in the business district as to not endanger persons or property and to not obstruct the sidewalk to pedestrian traffic. (d) ' • . . . . ;'• • • „ . . .. . • . . . . . . •• • • • • ; . . . Motorcycles, rollerblades, unicycles, bicycles, skateboards and four-wheelers are prohibited on all docks in the small boat harbor, except by authorized city employees. (Ord. 368, 5C 13.153, 1969) , (Ord. 368, §13.154, 1969) _ . .!• I, _. .. . . • . . . . . . . . • • • . • • .. • • . _ - . . . . . . . . • . •• • . . . . . • . • . . . • II . . , . . used ; addit• + th a f • • • . . . • . •. . • . • . I . . . .. . • . . . . • • . . . . . , • • , . . . • . . ! , . , : • , • •• . • . (Ord. 368, §13.156, 1969) 53 61 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 11 cn 0 n n it• • • a•! • . • . • . . . . •. ,• • I.! !. • . . . . • . . •. a a • I.! . . . ., • • . . .. . ! . . . ., • • • ! , , .•• • •• , • ' !; '•• . •• • . • • •. , !.! . .•. . , • . • . • . • . ., 1 1 I. , • • , • . !.! • •• . • •••. .. - •9 .• • • . . . •'• •, • , ,, • a 1-S- 8.1S.190.•• • . . . . • • • • , .' , . . . • • • . 54 62 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 •• • • • . • -• • - • . ., . • • • • .•• • • ., • • ' 1. I ' . • . • - • . • . • ••• • • ••••• •• • • . • • I 1 .. • • . • , • • . •. . . . . . ', • • • • • • . collection, • • • •• • • • • • 1 1 I 1 55 63 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 • (Ord 368, §14.157, 1969; Ord. 60-7, 1988; Ord 41-0,•1988; Orel.'612,§8, 1989; Ord. 647§ 1, 19 . ! ! . . •• . . . • . . . . • • . . . . . . • . (Ord. 368,§14.159, 1969) . !.! - . . . . • • . . . . • . • . . • .. . . .. . ;, . .. • • . •. •. . , . 56 64 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 • • of this city • • �'�Filn �tic rnni ,� +1,' 1. * :, ., , ., --1 i m ..his chapter-. I . ,; I / I , f , I I r (Ord. 368, §14.163, 1969; Ord. 610, 19881 • , , 57 65 CITY OF SEWARD, ALASKA ORDINANCE 2015-003•. !.! !. • . . . . . • • . . . citation. . .. ! ! • • . • . . • . , . . . . . . •. • ' : .• . . . . . . . . • . , • . . . • ! ! -1-1,50.0-55-has-been-followed. g . s. r is • •. !.! !, • . • •.. . . . . •• • . . . . . • •• : : . . . •• • .•, • •• • . . . • . . • . • . . - . . . . , • • • • • • • 58 66 CITY OF SEWARD, ALASKA ORDINANCE 2015-003 •• •_ • • • • . . , • • , • , •. . -• , • . .• . • . - schedule: • .• . •• . . _ • • . :• . :...... . . .. . .. . . . . . .• 1 1 :. . . . • . . . • • , •• • impeundeth • _ _• _•:1 • • ,• • , . . • . . . . , . , . . , . . .. .•-•• • . . . . . • ', . . . . . ', • .. . C, . . . • ' . • . • . . • ' . . ... , . . , . .. . , :. . .•. . . . . . . . • . ••. : . . ' , • - • . 59 67 CITY OF SEWARD,ALASKA ORDINANCE 2015-003 . (Ord. 368,§14.169, 1969; Ord. 442, 1977; Ord. 548, §2, 1985; Ord. 610, 1988) Section 2. This ordinance shall take effect 10 days following its enactment. ENACTED by the City Council of the City of Seward, Alaska, this 24th day of August, 2015. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 60 68 Agenda Statement $ 401 e Meeting Date: August 10, 2015 To: ��� Seward City Council . �SKp From: William A. Earnhart, City Attorney Agenda Item: Title 11 Revisions BACKGROUND & JUSTIFICATION: This ordinance is to enforce Seward traffic and parking citation without hiring a City prosecutor and to streamline the Seward traffic ordinance,adopting the State of Alaska traffic regulations and ensuring consistency with other jurisdictions. In 2013, the State Minor Offense rules(now Minor Offense Rule 22)were amended to make a number of changes regarding citations and the process to contest those citations. In these rules,Minor Offense Rule 3(b) was changed to allow the courts only to enforce citations issued pursuant to the system's Uniform Table of Minor Offenses. Municipal offenses that are in a fine schedule can be enforced by the state courts with an additional surcharge paid to the State and the penalties going to the City. Those offenses can be disposed of without a court appearance by paying the fine. These minor offenses are distinguished from misdemeanors which require court appearance and, in the case of local ordinances, a city prosecutor. AS 28.05.151(a), by current definition,requires municipalities with traffic ordinances to also have a fine schedule. A second issue that has arisen is that many Alaska municipalities, including most of the home rule municipalities and Seward, had extensive traffic ordinances with violations which typically duplicated the extensive State traffic regulations. These local ordinances have been largely ignored in favor of enforcing the State regulations. Many municipalities have adopted the State Traffic Code and repealed all or most of their local traffic code. The code duplication provides confusion for officers, the court, and the accused as to charge specificity. Ordinance 2015-O05 eliminates the Seward laws which duplicate State traffic regulations to allow for even enforcement. The Alaska Court System has suggested, and many municipalities have followed, simply adopting the State regulations and bail schedule by reference, which is accomplished in Ordinance 2015-003. AS 22.15.270 allows for fines collected for violation of the Seward traffic ordinances to be transferred to Seward. AS 28.01.010(a)allows Seward to adopt the State Traffic Regulations and incorporate them into Seward's code without specifically identifying the provision or regulation as a state statute or regulation. INTENT: To allow for the state courts to continue to enforce Seward's traffic regulations and to adopt the State traffic regulations. CONSISTENCY CHECKLIST: Where applicable,this ordinance is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures or Other Plans or Policies: Yes (List Below) No 69 FISCAL NOTE: This ordinance is not expected to have any substantial financial impact in the immediate future due to current practice, but will allow the City to continue to receive monies collected from fines for City traffic violations into the future. Approved by Finance Department: �!. Fp. i1 „ i ATTORNEY REVIEW: Yes X No RECOMMENDATION: Approval of Ordinance 2015- DO3 Title 11 Revisions. 70 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2015-073 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A NEW LEASE WITH RAIBOW FIBERGLASS AND BOAT REPAIR, LLC FOR LOT 2 BLOCK 4 FOURTH OF JULY CREEK SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER, KENAI PENINSULA BOROUGH, PLAT NO. SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA WHEREAS, the City is the owner of real property described as Lot 2 Block 4 Fourth of July Creek Subdivision; and WHEREAS, Raibow is currently conducting business at Lot 2 Block 4 with a Facility Use Permit which expires in January 2016; and WHEREAS, the City and Raibow Fiberglass and Boat Repair, LLC (Raibow) have previously executed a lease contract at the Seward Marine Industrial Center(SMIC); and WHEREAS, Raibow needs to lease additional land at the SMIC; and WHEREAS, Raibow Fiberglass and Boat Repair, LLC submitted a proposal to lease Lot 2 Block 4 Fourth of July Subdivision for a boat repair yard; and WHEREAS, Raibow has submitted an application with the State of Alaska for their Storm Water Prevention Pollution Plan as required; and WHEREAS, the City Manager has negotiated a lease agreement to lease additional land to Raibow under the provisions of Seward City Code 7.05.410; and WHEREAS, the Council approved Resolution 2015-019 recommending that the Kenai Peninsula Borough approve the replat of City owned land (Lot 2 Block 4 Fourth of July Creek Subdivision), which is currently in the process of being re-platted; and WHEREAS, the lease request is consistent with the Comprehensive Plan and the Seward Marine Industrial Center Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Council has determined that the essential terms and conditions and the method disposition of the proposed lease with Raibow Fiberglass and Boat repair, LLC for the 71 CITY OF SEWARD,ALASKA RESOLUTION 2015-073 real property described as Lot 2, Block 4, Fourth of July Subdivision, located in the City of Seward, is in the public's interest. Section 2. The City manager is authorized to execute a new lease with Raibow Fiberglass and Boat Repair, LLC in substantially the form as presented at this meeting. Section 3. This resolution shall take effect thirty (30) days after its adoption and posting. Upon the effectiveness of this resolution the lease will be effective September 22, 2015. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of August, 2015. THE CITY OF SEWARD,ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 72 Agenda Statement of sets. Meeting Date: August 24, 2015 '•'t.T4, To: City Council dieAS•P Through: Jim Hunt, City Manager From: Norm Regis, Harbormaster Agenda Item: Raibow Fiberglass and Boat Repair, LLC New Lease at Lot 2, Block 4, Seward Marine Industrial Center BACKGROUND & JUSTIFICATION: Raibow Fiberglass and Boat Repair, LLC leased approximately 13,500 square feet effective August 1,2013 for a twenty year term. As the business continues to grow,they need an additional piece of land along Nash Road. On January 2015 the City issued a Facility Use Permit which was signed by Dave Phillips of Raibow adding 18,432 square feet of land at the 2014 appraised cost per square foot, which will expire in January 2016. • Mr.Phillips: Submitted an application with the State of Alaska for a Storm Water Pollution Prevention Plan(SWPPP) as required. • Shall comply with all Seward City Code requirements. • Raibow has purchased a survey, and is in the process of a re-plat on this parcel. The City Council has previously determined that land at SMIC is available for lease. INTENT: To approve a long term lease between the City of Seward and Raibow Fiberglass and Boat Repair, LLC on Lot 2 Block 4 Fourth of July Creek Subdivision within the industrial zoning District, Seward Marine Industrial Center for boat repair operations. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): This lease meets the 1 plan goals to develop SMIC as a major industrial area of the X community. Strategic Plan (document source here): Attract New Industry: 2 Develop an aggressive marketing campaign which highlights the X diverse resources, and quality of life that make Seward a great place to live and establish a business or industry. (Page 5) 3 Other (list): 73 FISCAL NOTE: The annual rent is $4000.00 plus tax. The lease rate is based on 8% of fair market value. The parcel will reappraise in 2020. Approved by Finance Department: ■ 22¢4;) ATTORNEY REVIEW: Yes X No Not Applicable RECOMMENDATION: Approve Resolution 2015- 013 authorizing the City Manager to approve a new lease with Raibow Fiberglass and Boat Repair, LLC. 74 LEASE AGREEMENT between CITY OF SEWARD, ALASKA and Raibow Fiberglass and Boat Repair LLC Effective Date: July 1. 2015 - --- 75 - - - TABLE OF CONTENTS ARTICLE 1 - LEASED LAND 1 1.1 Description of Leased Land 1 1.2 Covenant of Quiet Enjoyment; Warranty of Title 1 1.3 Reserved 1 1.4 Property Accepted 1 1.5 Permits 2 1.6 Platting 2 1.7 Development of Leased Land ....2 ARTICLE 2 -LEASE TERM 3 2.1 Lease Term 3 ARTICLE 3 - RENTAL RATE 3 3.1 Initial Rental Rate 3 3.2 Rental Adjustments 3 3.3 Procedure for Rental Adjustment 4 3.4 Effect of Late Appraisal by CITY 4 3.5 Appraisal by LESSEE 4 3.6 Effective Date of Adjusted Rental Rate 5 3.7 Interim Rental Adjustments 5 3.8 Late Payment Charge 5 ARTICLE 4-USE OF LEASED LAND 5 4.1 Use of Leased Land 6 4.2 Obligations of LESSEE 6 4.3 No Preferential Rights to Use Public Facilities 6 4.4 Adequacy of Public Facilities 6 4.5 Tariffs and Other Service Fees 6 4.6 Time for Payment of Utilities and Taxes 6 4.7 Other Uses 7 ARTICLE 5-UTILITIES AND RIGHTS OF ACCESS 7 5.1 Utilities 7 5.2 Third-Party Improvements 7 5.3 Easements 8 ARTICLE 6-CONSTRUCTION BY LESSEE 8 6.1 Improvements on Leased Land 8 6.2 City Review of Construction 9 ARTICLE 7-RETURN OF LEASED LAND/SITE CONDITIONS 10 7.1 Return of Leased Land in Original Condition 10 ARTICLE 8- FORCE MAJEURE 10 ARTICLE 9-LESSEE'S ACTS OF DEFAULT 10 ARTICLE 10 -REMEDIES FOR DEFAULT BY LESSEE 11 ARTICLE 11 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 13 11.1 Real Property Improvements 13 11.2 Personal Property 13 ARTICLE 12 -ASSIGNMENT OR SUBLEASE 13 12.1 Assignment of Lease or Subleasing 13 12.2 Assignment of Lease for Security 13 12.3 Assignment to Affiliate 14 ARTICLE 13 -LESSEE'S DUTY TO DEFEND/INDEMNIFY 14 ARTICLE 14-CITY'S DUTY TO DEFEND/INDEMNIFY 14 ARTICLE 15-INSURANCE 14 15.1 Minimum Insurance Requirements 14 15.2 Subrogation Rights Waived 15 ARTICLE 16 -CONDEMNATION 16 ARTICLE 17-ARBITRATION 16 17.1 Arbitration 16 ARTICLE 18 -MAINTENANCE AND REPAIRS 18 18.1 Normal Maintenance 18 18.2 Safety Issues 18 18.3 Cost of Repairs 18 ARTICLE 19-ENVIRONMENTAL CONCERNS 19 19.1 Hazardous Materials 19 19.2 Permits and Reporting 21 ARTICLE 20-ESTOPPEL CERTIFICATES 22 ARTICLE 21 -CONDITIONS AND COVENANTS 22 ARTICLE 22 -NO WAIVER OF BREACH 22 ARTICLE 23-TIME OF THE ESSENCE 22 ARTICLE 24-COMPUTATION OF TIME 22 ARTICLE 25-SUCCESSORS IN INTEREST 22 ARTICLE 26-ENTIRE AGREEMENT 22 ARTICLE 27-GOVERNING LAW 23 ARTICLE 28-PARTIAL INVALIDITY 23 ARTICLE 29-RELATIONSHIP OF PARTIES 23 ARTICLE 30-INTERPRETATION 23 ARTICLE 31 - CAPTIONS 23 ARTICLE 32 -AMENDMENT 23 ARTICLE 33 -NOTICES 23 ARTICLE 34-FIRE PROTECTION 24 Exhibit A - Personal Guarantee Exhibit B - Leased Parcel Exhibit C -Environmental Compliance Plan ii LEASE AGREEMENT THIS LEASE AGREEMENT (the "LEASE") is made by and between the CITY OF SEWARD (the "CITY"), a municipal corporation located in the Kenai Peninsula Borough, State of Alaska, whose mailing address is P.O. Box 167, Seward, Alaska 99664 and Raibow Fiberglass and Boat Repair, LLC (the "LESSEE"), an Alaska corporation whose mailing address is P.O. Box 2891, Seward, Alaska 99664. WHEREAS, LESSEE has indicated its desire to lease the property known as Lot 2, Block 4, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. recorded in the Seward Recording District, Third Judicial District, State of Alaska,consisting of approximately 18,432 square feet,more or less;and WHEREAS, the City Council of CITY has determined that lease of the Leased Land (as defined below)to LESSEE for the purposes described herein would be in the public interest;and WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire burden of compliance with environmental regulations or controls with respect to LESSEE's operations on the Leased Land. NOW THEREFORE, for and in consideration of the mutual promises and covenants hereinafter contained,the parties hereto agree as follows: ARTICLE 1 -LEASED LAND 1.1 Description of Leased Land. The Leased Land is located in the City of Seward, Alaska. The Leased Land is described as follows: Lot 2, Block 4, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. recorded in the Seward Recording District, Third Judicial District, State of Alaska, consisting of approximately 18,432 square feet, more or less. 1.2 Covenant of Quiet Enjoyment; Warranty of Title. Subject to the encumbrances as of the date hereof, any reasonable restrictions imposed on the Leased Land as part of recording of a plat by CITY, and the provisions of this LEASE, CITY hereby covenants and warrants that LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE. 1.3 Reserved. 1.4 Property Accepted "As-is." LESSEE acknowledges that it has inspected the Leased Land and accepts the same "as-is" and without reliance on any expressed or implied 1 78 - -- representations or warranties of CITY (other than the representations in Section 1.2 hereof), or agents of CITY, as to the actual physical condition or characteristics thereof and the legal description or depiction of the Leased Land in Section 1.1 or Exhibit A hereto. 1.5 Permits. LESSEE, at its sole cost, shall obtain all permits necessary to the construction and operation of its facilities on the Leased Land. CITY may from time to time, upon request of LESSEE, execute such documents, petitions, applications, and authorizations as may be necessary, as the underlying fee owner, to file with an agency or public body responsible therefor an application for conditional use permits, zoning and re-zoning, tentative and final tract approval, or precise plan approval that may be required for the lawful construction and operation of the facilities of LESSEE permitted on the Leased Land by the terms of this LEASE. However,nothing in this Section shall be construed as requiring CITY to support or approve any such application or permit requests. If the agency or public body responsible to approve or grant such application or permit request is a City of Seward agency, department, or board, LESSEE shall follow all City of Seward procedures, the same as any other applicant making similar requests of the City of Seward, according to the Charter, ordinances, resolutions, or any regulation, rules, or procedures of the City of Seward. Nothing in this Section imposes any duty or responsibility on CITY to assist LESSEE in obtaining any other permits or approvals, including without limitation those required by the U.S. Army Corps of Engineers (e.g., wetland fill permits), the Environmental Protection Agency (e.g., Clean Air Act permits), the Alaska Department of Public Facilities and Transportation (e.g., right-of-way permits), the Alaska Department of Fish and Game, and the Alaska Department of Environmental Conservation. 1.6 Platting. In the event CITY elects to replat, CITY agrees to include the Leased Land in such replat in accordance with the description in Section 1.3. If LESSEE requests a replat of the Leased Land prior to that time, CITY shall assist LESSEE in the preparation and filing of the replat, and LESSEE shall reimburse CITY for CITY's costs in assisting with the preparation and filing of the replat. LESSEE agrees to sign the plat and any other documents necessary to complete the platting or replatting of any area including all or a portion of the Leased Land. LESSEE shall accept reasonable restrictions, easements, or plat notes as may be required by CITY or other governmental authorities as a condition to filing the plat of the Leased Land or the plat of CITY-owned real property adjacent to the Leased Land. 1.7 Development of Leased Land. LESSEE shall continue operate a vessel storage and maintenance facility through the term of the lease. LESSEE understands that construction and operations of its marine-related business is a major consideration for the CITY's agreement to the lease the Leased Land to LESSEE. LESSEE shall not operate any other unrelated business on the Leased Land without the consent of the CITY. 2 -79 - a) CITY may withhold its consent as to any proposed business or activity which,in CITY's sole discretion,is not desirable or compatible with the CITY's operation of the Seward Marine Industrial Center. b) In accordance with the provisions of Article 12,no assignment or sublease shall be permitted,unless approved in writing by CITY. Any sublease shall be expressly subject and subordinate to this Lease and the rights of the CITY hereunder. The CITY may elect to not approve any proposed assignment or sublease that might result in a business or activity that, in the CITY's sole discretion,is undesirable and/or incompatible with the CITY's Seward Marine Industrial Center. ARTICLE 2 - LEASE TERM Lease Term. The term of this LEASE (the "Lease Term") shall be in accordance with CITY's authorization in Resolution No. 2015- (the "Resolution"). The Lease Term shall run for approximately 20 years from the Effective Date, ending at midnight on June 30, 2035. LESSEE shall have the right to extend the term of this LEASE for two additional five(5)year periods,provided that: a) LESSEE exercises its option to extend at least one hundred and eighty (180) days prior to the expiration of the then current lease term; b) LESSEE is not in default under any term or provision of this LEASE;and c) LESSEE shall exercise its options to extend by sending written notice in accordance with the provisions of Article 33 of this LEASE. ARTICLE 3-RENTAL RATE 3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE through June 30, 2014, the annual rental rate for the Leased Land shall be set at$4,000.00. Rent shall be payable quarterly in advance upon the Effective Date of this Lease (prorated for the balance of the current quarter) and thereafter on or before the 20th day of the month beginning each calendar quarter: January 20, April 20, July 20 and October 20. The amount of each quarterly payment shall be one-quarter of the annual rental rate as initially established or later adjusted under this Article 3. 3.2 Rental Adjustments. The annual rental payment shall be adjusted on July 1,2020, and on the same date every five years thereafter (each a "Rental Adjustment Date"). The adjusted annual rental payment to be paid under the terms of this Lease shall be the appraised fair market rental value(the "Fair Market Rental Value")of the Leased Land at the highest and best use of the Leased Land. The highest and best use of the Leased Land shall be determined without regard to LESSEE's intended or actual use of the Leased Land unless that use is coincidentally the highest and best use of the Leased Land. CITY shall complete such appraisal and deliver a copy of the appraisal report to LESSEE not less than ninety(90)days before each Rental Adjustment Date. 3 80 3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment Date, CITY shall, at its own expense, retain an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute), who shall determine the "Fair Market Rental Value" of the Leased Land in accordance with this Article 3, exclusive of improvements placed thereon by LESSEE but inclusive of all improvements made by CITY(including those made before or subsequent to this LEASE). The appraiser's report shall be delivered to LESSEE not less than ninety (90)days before the Rental Adjustment Date. The appraiser's determination of Fair Market Rental Value of the Leased Land shall constitute a final binding determination of the Fair Market Rental Value and the adjusted annual rental rate until the next Rental Adjustment Date, unless LESSEE objects to CITY's appraiser's determination of the Fair Market Rental Value. In that case, LESSEE shall give written notice to CITY of its objection within thirty (30) days of receipt of the appraiser's report, and LESSEE shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at LESSEE's expense to make an appraisal of the Fair Market Rental Value in accordance with this Article 3. if LESSEE's appraisal determines a Fair Market Rental Value that varies from that determined by CITY's appraisal by no more than twenty percent(20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If LESSEE's appraisal determines a Fair Market Rental Value that varies from CITY's appraisal by more than twenty percent(20%), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.4 Effect of Late Appraisal by CITY. If, for any reason, CITY does not complete the appraisal or deliver a copy of the appraisal report to LESSEE ninety (90) days before the Rental Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy of the appraisal report to LESSEE at any time thereafter. However, any such adjusted annual rental rate shall not be effective until the quarterly payment due date immediately following the date CITY delivers the appraisal report to LESSEE. 3.5 Appraisal by LESSEE. If for any particular Rental Adjustment Date, CITY fails to obtain an appraisal of the Fair Market Rental Value or fails to deliver the appraisal report to the LESSEE by the Rental Adjustment Date, LESSEE may engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at LESSEE's expense to make an appraisal under the terms of this Article 3 and submit a copy to CITY before the next quarterly rental payment due date. However, LESSEE must notify CITY in writing within thirty (30) days following the Rental Adjustment Date of LESSEE's election to obtain an appraisal. If CITY objects to LESSEE's appraiser's determination of the Fair Market Rental Value, CITY shall give written notice to LESSEE of its objection within thirty(30) days of receipt of the appraiser's report, and CITY shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at CITY's expense to make an appraisal of the Fair Market Rental Value as of the Rental Adjustment Date and in accordance with this Article 3. If the CITY's appraisal 4 81 - -- - - determines a Fair Market Rental Value that varies from that determined by LESSEE's appraisal by no more than twenty percent(20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals.' If the CITY's appraisal determines a Fair Market Rental Value that varies from LESSEE's appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.6 Effective Date of Adjusted Rental Rate. The adjusted annual rental rate established by this Article 3 shall apply as of the Rental Adjustment Date if CITY provided a copy of the appraisal report to LESSEE no later than ninety (90)1 days before the Rental Adjustment Date. If the adjusted annual rental rate is based on CITY's late appraisal or late delivery of the appraisal report to LESSEE,the adjusted rental rate shall be effective beginning with the quarterly rental payment due date immediately following the date the CITY delivers the appraisal report to LESSEE. Notwithstanding the above, the exercise by either CITY or LESSEE of the objection procedure relating to rental adjustment described in this Article 3 shall not postpone LESSEE's obligation to pay rent at the rate established by CITY. LESSEE shall pay the amount of rent as established or adjusted by CITY until the question of objection to the rental rate is finally resolved. At such time the objection to the rental rate is resolved, an appropriate credit or adjustment shall be made retroactive to the date the new rental rate was established by CITY or in cases where CITY failed to obtain an appraisal or deliver the appraisal report to the LESSEE, to the Rental Adjustment Date. 3.7 Interim Rental Adjustments. For each year in the period between each Rental Adjustment Date, excepting the Rental Adjustment Dates, the annual rental payment shall be increased beginning July 1, 2014 and on July 1 of every year thereafter(each on "Interim Rental Adjustment Date") in an amount that reflects the increase, if any, in the cost of living for the previous year as stated in the Consumer Price Index,All Urban Consumers, Anchorage, Alaska Area, All Items 1967=100 ("CPI"), as published by the United States Department of Labor, Bureau of Labor Statistics for the most recent period published immediately prior to the Interim Rental Adjustment Date. In no event shall the rent be less than the previous year. If the CPI is revised or ceases to be published, the CITY shall instead use such revised or other index as most nearly approximates the CPI for the relevant period, and make whatever adjustment in its application as may be necessary, in the CITY's sole discretion,to accomplished as nearly the same result as if the CPI had not been revised or ceased to be published. 3.8 Late Payment Charge. Rental payments not received by the due date shall bear interest until paid at a rate of 10.5% per annum, or the maximum rate permitted under Alaska law, whichever is less, plus a flat monthly late fee of$2.50, or such amount as may be established from time to time by CITY ordinance or resolution and relating to late fees for CITY leases generally. ARTICLE 4 - USE OF LEASED LAND 5 --- - -----82 -- - - 4.1 Use of Leased Land. CITY has limited land available for lease. Use of the Leased Land by LESSEE has been determined by the City Council of CITY to be in the public interest. LESSEE may use the Leased Land for boat storage/repair Work and industrial vessel shop. 4.2 Obligations of LESSEE. LESSEE may use the Leased Lana only in accordance with applicable CITY zoning code provisions and provided the following conditions are met: a) The Leased Land is to be completely cleaned and restored to its original condition,that is,the condition existing prior to this LEASE or in better condition upon termination of this LEASE. b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazardous Materials on the Leased Land except as permitted in Article 19 of this LEASE. c) LESSEE shall not use the Leased Land in any manner or construct any facilities thereon which would inhibit the use of adjacent or other lands. d) LESSEE may operate a boat repair and boat storage business on the Leased Land. e) Any changes to this site require prior CITY approval,through the City Manager. 4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE any exclusive rights to use any public port facilities constructed or operated by CITY. LESSEE will be subject to any tariffs, procedures, rules, and regulations of CITY concerning the use of such facilities as they may now exist or from time to time be amended, and LESSEE shall not be entitled to any exclusive use. 4.4 Adequacy of Public Facilities. CITY makes no representations or warranties as to the fitness of any particular part or the whole of CITY's public facilities for the uses intended by LESSEE, and LESSEE has inspected those facilities and has satisfied itself that the facilities are sufficient for the intended uses by LESSEE. CITY makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any information provided by CITY. 4.5 Tams and Other Service Fees. CITY shall have the right to make amendments to its tariffs, regulations, and scheduled fees from time to time,even if those adjustments shall cost LESSEE more for its operations or use of public facilities,and CITY is free to do so provided only that it does not impose any greater burden or higher rate upon LESSEE than upon any other similar user of the public facilities. 4.6 Time for Payment of Utilities and Taxes. LESSEE will pay for utilities and taxes related to operations on the Leased Land and LESSEE's interest in this LEASE and improvements thereon, if any, before such obligations become delinquent; provided, that 6 ---- - ----83- - --- - - -- LESSEE may, in good faith and before such delinquency, contest any such charge or assessment. 4.7 Other Uses. This LEASE shall not preclude the CITY from actively seeking other and additional tenants for space, including those who would be in competition with LESSEE or who might be interested in leasing the Leased Land should this LEASE be terminated for any reason. 4.8 Use of Public Docks and Port Facilities. Public docks are subject to port and harbor rules and regulations as adopted by City Council. ARTICLE 5 -UTILITIES AND RIGHTS OF ACCESS 5.1 Utilities. LESSEE, at LESSEE's sole cost and expense, shall provide for the extension of public utilities to the Leased Land sufficient for LESSEE's intended operations. In so doing, LESSEE shall comply with all CITY regulations and requirements, and the tariffs of the affected utilities, with respect to the construction of those utilities. CITY agrees to cooperate and assist the LESSEE, through consultation and review, in LESSEE's planning and engineering of those improvements. All utilities will be located and sized in accordance to CITY's Master Plan for the area leased. All such construction shall be in compliance with all applicable building, mechanical and fire codes. Utilities constructed by the LESSEE within the public right-of-ways or within public utility easements will normally be accepted and maintained by CITY or utility companies may be used to serve other customers of LESSEE's without payment of fees or reimbursement of construction cost to the LESSEE. However, this does not preclude several lessees from agreeing to share the cost of constructing a utility to serve their facilities. CITY or other utility company may determine that it would be to their benefit to oversize the utility or install special fittings or equipment in order to serve other existing or future users. The additional direct costs of such oversizing shall be borne by CITY or other utility company. Such costs shall be limited to the supplier's cost of the additional fittings, equipment, direct labor, and equipment costs to complete the installation. The costs of oversizing pipe or electrical conduit shall be limited to the difference between the supplier's price to provide the size required to serve its facility and the price of the oversized material required by CITY or utility company. LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation of LESSEE's facilities on the Leased Land, it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. 5.2 Third-Party Improvements. At the request of LESSEE, CITY shall, from time to time, execute and deliver, or join in execution and delivery of, such documents as are appropriate, necessary, or required to impose upon the Leased Land in accordance with the terms of this LEASE covenants, conditions, and restrictions providing for the granting 7 - 84- -- of uses of the Leased Land, or any part thereof, the establishment of party walls, the establishment of mutual and reciprocal parking rights or rights of ingress or egress, or other like matters (herein called "third-party improvements"), all of which are for the purpose of the orderly development of the Leased Land as a commercial unit subject, however,to the conditions that: a) All such matters shall be limited to the Lease Term and shall terminate upon termination of this LEASE for whatever reason. b) Any such matters of a permanent nature extending beyond the Lease Term shall not be granted without the prior written approval of CITY. In any of the foregoing instances referred to in this Section, CITY shall be without expense therefor,and the cost and expense thereof shall be borne solely by LESSEE. • c) At the expiration of the Lease Term (including any extended period) third-party improvements on the Leased Land other than portable equipment shall become the property of CITY without the payment of any compensation to LESSEE. 5.3 Easements. In order to provide for the orderly development of the Leased Land and adjacent lands, it may be necessary, desirable, or required that street, railroad, water, sewer, drainage, gas, power line, and other easements and dedications and similar rights be granted or dedicated over or within portions of the Leased Land. As additional consideration for this LEASE, CITY and LESSEE each shall, at the request of the other, join with each other in executing and delivering such documents from time to time and throughout the Lease Term as may be appropriate, necessary, or required by the several governmental agencies (including the City of Seward),public utilities, and other users or tenants of CITY land for the purpose of granting such easements and dedications; provided, however, that such easements and dedications and similar rights do not unreasonably interfere with LESSEE's operations. The costs of locating or relocating any public easements or restrictions of record including any relocation of public road, railroad, utility, or other easements shall be at the sole cost and expense of the party requesting the relocation. CITY shall not refuse reasonable requests for such relocations provided those relocations do not interfere with or inhibit the overall development of CITY property or other public property. Any easements or rights of access granted to LESSEE by CITY need not be exclusive to LESSEE. ARTICLE 6-CONSTRUCTION BY LESSEE 6.1 Improvements on Leased Land. LESSEE shall have the right to erect, maintain, alter, remodel, reconstruct,rebuild, build, and/or replace buildings and other improvements on the Leased Land, subject to the following conditions: a) The cost of any construction, reconstruction, demolition, or of any changes, alterations,or improvements, shall be borne and paid for by LESSEE. 8 -85- -- - -- b) The Leased Land shall at all times be kept free of mechanic's and materialmen's liens. c) LESSEE shall provide CITY with a copy of all building plans and specifications and a site development plan or plans (based on a recent survey) for the Leased Land prior to commencement of construction. d) LESSEE is solely responsible for resurveying and locating improvements on the Leased Land in such manner not to violate building setback requirements or encroach into rights-of-ways or easements. On completion of any improvements, LESSEE shall provide CITY a copy of an as-built survey depicting the improvements as completed on the Leased Land. e) Any general contractor employed by LESSEE shall be appropriately bonded by use of performance and labor and material payment bonds in the customary form when cost of the work is equal to or exceeds FIFTY 'THOUSAND DOLLARS ($50,000). Copies of all such bonds shall be furnished to CITY prior to commencement of construction. If the cost of the work is less than FIFTY THOUSAND DOLLARS ($50,000), LESSEE shall provide CITY, if no performance and labor and material bonds are provided by LESSEE, any necessary assurances or guarantees that the contemplated work will be performed by the general contractor or by LESSEE. In the event that LESSEE elects to construct the facility with its own personnel and equipment, or the personnel and equipment of any corporation or person that is an "affiliate" of LESSEE as such term is defined in AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest, a performance bond shall be required when the cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS($50,000). f) CITY may, as contemplated by Alaska Statutes, give notice of non-responsibility for any improvements constructed or effected by LESSEE on the Leased Land. g) LESSEE shall comply with all federal, state, and local statutes and regulations with respect to such construction, including, but not limited to, all applicable building,mechanical,and fire codes. 6.2 City Review of Construction. CITY shall have the right to review initial plans, including those supplied to CITY under Section 6.1 hereof, and any future changes or additions to LESSEE's facilities on the Leased Land, by reviewing the design thereof prior to the commencement of construction. CITY shall have the right to comment upon that design and to require LESSEE to make reasonable changes so as to avoid interference with public operations, but the exercise of these rights shall not imply any obligation to do so nor any obligation to do so in a particular way. LESSEE shall construct the facility in accordance with final design specifications approved by CITY. CITY's representatives may monitor the work and shall have access to the site at all reasonable times. LESSEE 9 - - ---86 -- shall be solely responsible for completing all improvements according to LESSEE's plans and specifications and shall bear all risk, responsibility, and liability for properly surveying the Leased Land before construction and to place all improvements on the Leased Land without encroaching upon any land, easements, rights-of-way, or setback requirements. LESSEE shall obtain the usual and customary performance guarantees from its contractors, and CITY shall be named as an additional insured. ARTICLE 7-RETURN OF LEASED LAND/SITE CONDITIONS 7.1 Return of Leased Land in Original Condition. Subject to the provisions of Article 11.1 herein, upon termination of this LEASE for any reason, LESSEE shall return the Leased Land to CITY in the same condition as at the commencement this LEASE, subject to normal, non-abusive use. The Leased Land shall be free of all Hazardous Materials and contamination arising out of or resulting from or occurring during LESSEE's operations or use of the Leased Land during this LEASE. ARTICLE S - FORCE MAJEURE In the event either LESSEE or CITY is delayed from performance of any of its obligations under this LEASE due to acts of nature, acts of the enemies of the United States of America, sabotage, blockade, insurrection, riot, epidemic, fire, flood, explosion, earthquake/tsunami, civil disturbance, or war, the time period wherein such performance is to occur shall be extended by that amount of time necessary to compensate for the delay. ARTICLE 9-LESSEE'S ACTS OF DEFAULT Each of the following shall be a "LESSEE Act of Default" under this LEASE and the terms "acts of default" and "default" shall mean, whenever they are used in this LEASE, any one or more of the following events: 9.1 Failure by LESSEE to pay promptly when due, and in no event later than twenty (20) days from the due date thereof,the rent required to be paid under this LEASE. 9.2 Failure by LESSEE to comply with Section 4.1 of this LEASE. 9.3 Failure by LESSEE to observe, fulfill or perform any covenants, conditions, or agreements on its part to be observed or performed under this LEASE, other than payment of rent or compliance with Section 4.1, for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to LESSEE by CITY; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. 10 9.4 The making by LESSEE of an assignment for the benefit of creditors, the filing of a petition in bankruptcy by LESSEE,the adjudication of LESSEE as insolvent or bankrupt, the petition or application by LESSEE to any tribunal for any', receiver or any trustee for itself or for any substantial part of its property; or the commencement of any proceeding relating to LESSEE under any bankruptcy, insolvency, reorganization, arrangement, or readjustment of debt law or statute or similar law or statute df any jurisdiction, whether now or hereafter in effect which shall remain undismissed for a period of six (6) months from the date of commencement thereof. 9.5 Violation by LESSEE of any laws or regulations of the United States, or of the State of Alaska, or any conditions of any permits issued by agencies of the City of Seward, the Kenai Peninsula Borough, the State of Alaska, or of the United States Government applicable to LESSEE's use of the Leased Land, pursuant to the regulations of such agencies, for a period of sixty(60)days after written notice specifying such violation has been given by the agency charged with the enforcement of such laws, regulations, or permits to LESSEE; provided, however, if such violation be such that it cannot be corrected within the applicable period,it shall not constitute ari act of default if corrective action is instituted by LESSEE within the applicable period aid diligently pursued until the violation is corrected. Furthermore, if LESSEE shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined provided such proceedings are diligently pursued; provided, however, that any such extension of time shall not be effective if the effect of the interim administrative or judicial action is to cause a stoppage, interruption, or threat to the activities of any person or entity other than those of LESSEE. 9.6 Failure of LESSEE to maintain its operations within the Leased Land or to keep the public rights of way clear. ARTICLE 10-REMEDIES FOR DEFAULT BY LESSEE Whenever an act of default by LESSEE shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, CITY shall have the following rights and remedies all in addition to any rights and remedies that may be given to CITY by statute,common law,or otherwise: 10.1 CITY may distrain for rent due any of LESSEE's personal property which comes into CITY's possession. This remedy shall include the right of CITY to dispose of personal property distrained in any commercially reasonable manner. It shall be conclusively presumed that compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS 45.29.601-.628) with respect to sale of property shall be a commercially reasonable disposal. 10.2 CITY may re-enter the Leased Land and take possession thereof and, except for any personal property of LESSEE which CITY has waived its right to distrain under Section 11 �_- ---s8 - - - 10.1 above, remove all personal property of LESSEE from the Leased Land. Such personal property may be stored in place or may be removed and stored in a public warehouse or elsewhere at the cost of LESSEE all without service of notice or resort to legal process, all of which LESSEE expressly waives. l 0.3 In addition to the above, CITY may: a) Declare this LEASE terminated; b) Collect any and all rents due or to become due from subtenants or other occupants of the Leased Land; c) Recover from LESSEE, whether this LEASE be terminated or not, reasonable attorney's fees and all other expenses incurred by CITY by reason of the breach or default by LESSEE; d) Recover an amount to be due immediately on breach equal to the unpaid rent for the entire remaining term of this LEASE. e) Recover all damages incurred by CITY by reason of LESSEE's default or breach, including, but not limited to, the cost of recovering possession of the Leased Land, expenses of reletting, including costs of necessary renovation and alteration of the premises, reasonable attorney's fees, and any real estate commissions actually paid. f) Remove or require the removal of any improvements constructed without CITY approval or constructed contrary to site development plans approved by CITY and recover all costs and expense incurred by CITY to remove violating improvements. 10.4 If LESSEE does not immediately surrender possession of the Leased Land after termination by CITY and upon demand by CITY. CITY may forthwith enter into and upon and repossess the Leased Land and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or breach of covenant. 10.5 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform of LESSEE's which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 10.6 Each right and remedy of CITY provided for in this LEASE shall be cumulative and shall be in addition to every other right or remedy provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by CITY of any one or more of the rights and remedies provided for in this LEASE or now or hereafter existing at law or in equity or by statute 12 - -- 89 - or otherwise shall not preclude the simultaneous or later exercise by CITY of any or all other rights or remedies provided for in this LEASE or now or thereafter existing at law, or in equity or by statute or otherwise. 10.7 No delay or omission to exercise any right or power accruing following an act of default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. ARTICLE 11 -TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 11.1 Real Property Improvements. All improvements constructed by LESSEE or its predecessors on the Leased Land or on easements to or from the same, such as buildings, warehouses, conveyor systems, ditches, sewer lines, water lines, dikes or berms and similar improvements, shall become the property of CITY upon termination of this LEASE for any reason; provided, however, that CITY may require LESSEE to remove any improvements designated by CITY and without cost to CITY. 11.2 Personal Properly. Any other provisions of this LEASE to the contrary notwithstanding, LESSEE, upon termination of this LEASE for any reason, may, but need not, promptly remove, in no event later than ninety(90) days from the termination of the LEASE,trade fixtures and equipment from the Leased Land provided that LESSEE shall repair any damages to the Leased Land caused by such removal. ARTICLE 12-ASSIGNMENT OR SUBLEASE 12.1 Assignment of Lease or Subleasing. The parties recognize that this LEASE has been determined to be in the public interest by the City Council of CITY for the reasons set forth in the approving Resolution. The rights and duties created by the LEASE are personal to LESSEE and CITY has granted the LEASE in reliance upon the individual character and financial capability of LESSEE. Therefore, LESSEE shall not assign or sublease this LEASE without CITY's prior written consent, in CITY's sole discretion. 12.2 Assignment of Lease for Security. Notwithstanding Section 12.1 above, LESSEE may assign, encumber, or mortgage its interest in this LEASE or improvements on the Leased Land, by deed of trust or other security instrument, to an institutional lender ("Lender") for development of or operations on the Leased Land, provided that Lender shall be subject to all obligations of LESSEE under the terms of this LEASE upon foreclosure. CITY shall furnish Lender, at the address provided to CITY by Lender in writing, with notice of any default or breach of LESSEE under this LEASE. Lender shall have the right (without being required to do so and without thereby assuming the obligations of LESSEE under this LEASE) to make good such default or breach within thirty (30) days after written notice specifying such breach. Notwithstanding the provisions of Article 10 above, no "LESSEE Act of Default" shall exist until expiration of thirty (30) days after such notice is furnished to Lender;provided, 13 — --- a) If Lender, with respect to any default or breach other than a failure to make any required payment of rent or other money, shall undertake within thirty (30) days after notice to cure the default or breach and shall diligently and in good faith proceed to do so, CITY may not terminate this LEASE or relet the Leased Land unless Lender fails to cure the default or breach within a reasonable period of time thereafter; and b) If the default for which notice is given is a breach of Section 9.3, CITY shall not exercise any of the remedies afforded to it under Article 10 above so long as LESSEE or Lender remains in possession of the Leased Land and satisfies LESSEE's obligations under the terms of this LEASE. Upon foreclosure or other assertion of its security interest, Lender may further assign, transfer, or dispose of its interests, provided that any subsequent assignee, purchaser, or transferee shall remain bound by each and every term of this LEASE. 12.3 Assignment to Affiliate. Notwithstanding Section 12.1 above, LESSEE may assign this LEASE to an affiliate of LESSEE as that term is defined by AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest; provided, however, that LESSEE's full faith and credit shall remain obligated under this LEASE as though the assignment had not taken place. ARTICLE 13 - LESSEE'S DUTY TO DEFEND/INDEMNIFY LESSEE shall defend, indemnify, and hold harmless CITY, its officials, employees, agents, and contractors from any and all liability or claims for damages, including personal injuries, environmental damage, death and property damage arising out of or resulting from LESSEE's use of the Leased Land or the use of the Leased Land by LESSEE's sublessees, assignees, agents, contractors, or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. If any action or proceeding is brought against LESSEE by reason of any such occurrence, LESSEE shall notify CITY promptly in writing of such action or proceeding. ARTICLE 14 -CITY'S DUTY TO DEFEND/INDEMNIFY CITY shall defend, indemnify and hold LESSEE harmless from any and all liability or claims for damages, including personal injuries, death, and property damage arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. ARTICLE 15-INSURANCE 15.1 Minimum Insurance Requirements. Prior to commencement of the Lease Term or LESSEE'S occupancy of the Leased Land, LESSEE shall procure and maintain, at LESSEE's sole cost and expense, comprehensive commercial general liability insurance 14 with limits of liability of not less than TWO MILLION DOLLARS ($2,000,000) for all injuries and/or deaths resulting to any one person and TWO MILLION DOLLARS ($2,000,000) limit from any one occurrence. The comprehensive commercial general liability insurance shall include coverage for personal injury, bodily injury, and property damage or destruction. Coverage under such policies of insurance shall include collapse and underground property damage hazards. Contractual liability insurance coverage in the amount of not less than TWO MILLION DOLLARS ($2,000,000)is also required. LESSEE shall obtain owned and non-owned automobile liability insurance with limits of liability of not less than ONE MILLION DOLLARS ($1,000,000) per occurrence combined single limit for bodily injury and property damage. LESSEE shall also maintain ONE MILLION DOLLARS ($1,000,000)of Ship Repairers Liability Insurance including"hot work"coverage and pollution liability coverage. LESSEE shall also maintain workers' compensation insurance as required under Alaska law. The minimum amounts and types of insurance provided by LESSEE shall be subject to revision at the sole discretion of CITY in accordance with standard insurance practices,in order to provide continuously throughout the term of this LEASE and any extensions hereof, a level of protection consonant with good business practice and accepted standards in the industry. Such factors as changes in the type of or extent of use of the Lease Land, increases in the cost of living, inflationary pressures, and other considerations, shall be utilized in assessing whether the minimum insurance requirements should be increased. CITY shall notify LESSEE of any required increase in insurance coverage. All insurance policies shall provide for thirty (30) days' notice of cancellation and/or material change to be sent to CITY at the address designated in ARTICLE 33 of this LEASE. All such policies shall be written by insurance companies legally authorized or licensed to do business in the State of Alaska, and acceptable to CITY (Best's Rating B+ or better). CITY shall be listed as an additional insured under all insurance policies. LESSEE shall furnish CITY, on forms approved by CITY, certificates evidencing that it has procured the insurance required herein prior to the occupancy of the Leased Land or operation by LESSEE. Insurance policy deductibles are subject to approval by CITY. Nothing herein contained shall prevent LESSEE or CITY from placing and maintaining at CITY's or LESSEE's own individual cost and expense, additional or other insurance as may be desired. The minimum insurance requirements under this LEASE shall not act to limit LESSEE's liability for any occurrence and shall not limit LESSEE's duty to defend and indemnify CITY for claims related to this LEASE or the Leased Land. 15.2 Subrogation Rights Waived. To the extent permitted by law, LESSEE hereby releases CITY, its elected and appointed officials, employees and volunteers, and others working on behalf of CITY from any and all liability or responsibility to LESSEE or anyone 15 claiming through or under LESSEE by way of subrogation or otherwise, for any loss of any kind (including damage to property caused by fire or any other casualty), even if such loss shall have been caused by the fault or negligence of the CITY, its elected or appointed officials, employees or volunteers, or others working on behalf of the CITY. This provision shall be applicable and in full force and effect only with respect to loss or damage occurring during the time of LESSEE's occupancy or use (including LESSEE's occupancy or use prior to the Effective Date of this LEASE), and LESSEE's policies of insurance shall contain a clause or endorsement to the effect that such release shall not adversely affect or impair such policies or prejudice the right of LESSEE to recover thereunder except as against CITY (including its elected and appointed officials, employees and volunteers, and others working on behalf of CITY) during the time of LESSEE's occupancy or use. LESSEE agrees that its policies of insurance will include such a clause or endorsement. ARTICLE 16-CONDEMNATION If all or any part of the Leased Land is condemned for a public use by any government agency or other duly authorized entity, CITY and LESSEE shall each make a claim against the condemning or taking authority for the amount of any damage incurred by or done to them respectively as a result of the taking. Neither LESSEE nor CITY shall have any rights in or to any award made to the other by the condemning authority; provided, that in the event of a single award to CITY which includes specific damages for loss of LESSEE's leasehold interest, CITY shall transmit to LESSEE the amount of such specific damages so found, if any. If part but not all of the Leased Land is condemned for public use, LESSEE shall make a good faith determination as to whether or not the taking of the part of the Leased Land designated for condemnation will prevent it from continuing to operate on the Leased Land. If LESSEE determines in good faith that the condemning of such part of the Leased Land will prevent it from continuing to operate on the Leased Land, LESSEE may notify CITY in writing to this effect, and this LEASE shall then be terminated for all purposes effective fifteen(15)days from the date LESSEE sends such notice to CITY, or at such other later date as LESSEE shall specify in its notice, and such termination shall be treated in the same manner as a termination at the expiration of the term of this LEASE. LESSEE shall, as a condition precedent to such termination, remove all encumbrances, debts, and liens to which the Leased Land is subject. If at the time of such partial taking for public use, LESSEE determines that such partial taking will not prevent it from continuing to operate, then LESSEE and CITY shall negotiate an equitable and partial abatement of the rent beginning to be effective on the actual date when LESSEE is effectively prevented from utilizing the condemned land. ARTICLE 17-ARBITRATION 17.1 Arbitration. a) Disputes between the parties with respect to the performance of this LEASE that cannot be resolved by the parties, shall be submitted to an independent arbitrator 16 - 93 -- - - for a settlement pursuant to the provisions of the Alaska Uniform Arbitration Act (AS 09.43.010 et. seq.), as it now exists or may hereafter be amended from time to time, and judgment on the award may be entered in any Superior Court in the State of Alaska. Notwithstanding the foregoing, arbitration shall not be applicable to claims or disputes involving a requested remedy having a value of more than FIFTY THOUSAND DOLLARS ($50,000) (exclusive of interest and costs). All demands for arbitration and all answering statements thereto that include any claim must contain a statement that the total sum or value in controversy, as alleged by the party making such demand or answering statement, is not more than FIFTY THOUSAND DOLLARS ($50,000.) The arbitrator will not have jurisdiction, power, or authority to consider or make findings (except to deny jurisdiction) concerning any claim, counterclaim,dispute, or other matter in question where the amount in controversy of any such claim, counterclaim, dispute or matter is more than FIFTY THOUSAND DOLLARS ($50,000). The costs and expenses of arbitration shall be shared equally by the parties, and each party shall bear its own attorney's fees and costs. b) Arbitration procedures shall be applicable only to contract, negligence, and similar claims arising from or related to this LEASE, and shall not be used to resolve or determine any claim based upon fraud, intentional misrepresentation, nor any claim based on conduct that is a felony crime in the State of Alaska. c) Written notice of requests for arbitration of disputes may be served by either party to this LEASE upon the other party. Arbitration of any dispute or claim shall be determined by a single arbitrator selected from a list of not less than five (5) arbitrators obtained from the presiding Superior Court Judge or other appropriate judicial officer in Anchorage, Alaska. The arbitrator shall be a person who(a) has not less than five (5) years legal experience in the State of Alaska prior to appointment; and (b) such legal experience includes substantial experience with long-term commercial real property transactions. Each party shall be provided with a copy of the list and shall be afforded a maximum of ten (10) working days to become familiar with the qualifications of the prospective arbitrators. The arbitrator shall be selected by each party, commencing with the party demanding the arbitration, striking one name from the list until only a single name remains. d) Arbitration hearings shall be conducted in Anchorage, Alaska or such other location as the parties may agree. Each party shall produce at the request of the other party, at least thirty (30) days in advance of such hearing, all documents to be submitted at the hearing and such other documents as are relevant to the issues or likely to lead to relevant information. e) In deciding the claim or dispute,the arbitrator shall follow applicable Alaska law, and the written decision shall be supported by substantial evidence in the record. Failure to apply Alaska law, or entry of a decision that is not based on substantial 17 evidence in the record, shall be additional grounds for modifying or vacating an arbitration decision. ARTICLE 18- MAINTENANCE AND REPAIRS 18.1 Normal Maintenance. During the entire term of this LEASE and every extension hereof, if any, LESSEE shall, at LESSEE's sole cost, risk and expense, maintain the Leased Land, including any improvements placed thereon by LESSEE, in as good condition as received or constructed by LESSEE, subject to normal, non-abusive use. CITY, at CITY's sole option and expense, may, prior to the commencement of construction by LESSEE, perform maintenance and preventative work on the Leased Land, exclusive of improvements placed thereon by LESSEE, in order to prevent erosion, mitigate damage to plants and animals, or prepare the Leased Land for eventual;development by LESSEE or others by grading, filling, or contouring the Leased Land. Any such work performed by CITY shall be at CITY's sole expense and risk unless LESSEE agrees, in advance and in writing,to share such expense and risk. LESSEE shall maintain in first class condition at all times all fire, pollution, and other protective equipment, if any are placed on Leased Land. 18.2 Safety Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE's maintenance responsibilities as they relate to public health or safety and LESSEE shall promptly within thirty (30)days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. If such deficiencies relate to the safety of LESSEE's operation such that the surrounding land and port facilities are exposed to risk, unnecessary potential hazards, or a risk to the public interest (as distinguished from a business risk), or if CITY is not satisfied with the proposed schedule of repairs either because of the delays therein or the scope of the repairs, then CITY may engage an independent engineering consultant well-versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perform such maintenance work. As soon as practicable following receipt of said engineer's determinations and recommendations, if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE's cost, risk, and expense. 18.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect the public facilities on adjacent land, it may submit the matter to arbitration; provided,however,that pending the decision of the arbitrator it shall fully comply with the maintenance requests. If an arbitration award should ultimately find that the repairs were not necessary then LESSEE may either deduct from future rental payments the cost of such repairs or be reimbursed therefor. In deciding whether repairs requested by CITY or required by an engineering report are necessary, the arbitration panel is to give primary consideration to the safety and welfare 18 - -95 --- -- of the Seward port facilities and the citizens of Seward in light'of the highest standards in the industry. If any facility or service provided by CITY to the Leased Land shall become inadequate due to changes in environmental control standards or should any facility require updating or improvement by reason of a change in LESSEE's use of the Leased Land or operations therefrom, LESSEE shall either construct such improvements,at LESSEE's own cost or reimburse CITY for such work at the option of CITY. ARTICLE 19-ENVIRONMENTAL CONCERNS 19.1 Hazardous Materials. a) Condition of Site. LESSEE has had full opportunity to examine the site for the presence of any Hazardous Material and accepts the.site in "as is" condition. LESSEE may elect, at LESSEE's sole cost,to conduct a baseline soils test prior to execution of this LEASE. b) Release of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE releases CITY from any and all claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (including, without limitation, attorney's fees, court costs, litigation expenses, and consultant and expert fees) arising prior to, during, and after the term of this LEASE, and resulting from the use, keeping, storage, or disposal of Hazardous Material on the Leased Land by LESSEE or its predecessors in interest, or arising out of or resulting from LESSEE's operations at the Leased Land or the operations of its predecessors in interest at the Leased Land except for those claims arising out of CITY's sole negligence or intentional misconduct. This release includes, without limitation, any and all costs incurred due to any investigation of the Leased Land or any cleanup, removal,or restoration mandated by a federal, state, or local agency or political subdivision or by law or regulation. c) Use of Hazardous Materials on the Site. i) LESSEE shall not cause or permit any Hazardous Material to be brought upon, kept,or used in or about the Leased Land except for such Hazardous Material as is necessary to conduct LESSEE's authorized use of the Leased Land. ii) Any Hazardous Material permitted on the Leased Land as provided in this paragraph, and all containers therefor, shall be used, kept, stored, and disposed of in a manner that complies with all Environmental Laws or other laws or regulations applicable to such Hazardous Material. 19 iii) LESSEE shall not discharge, leak, or emit, or permit to be discharged, leaked, or emitted, any material into the atmosphere, ground, ground water, sewer system, or any body of water, if such material (as reasonably determined by the City, or any governmental', authority) does or may, pollute or contaminate the same, or may adversely affect the (a) health, welfare, or safety of persons, whether located on the Leased Land or elsewhere; or (b) condition, use, or enjoyment of the Leased Land or any other area or personal property. iv) LESSEE hereby agrees that it shall be fully liable for all costs and expenses related to the use, storage, and disposal of Hazardous Material kept or brought on the Leased Land by LESSEE, its authorized representatives and invitees, and LESSEE shall give immediate notice to CITY of any violation or potential violation of the provisions of this subparagraph. d) Indemnification of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE shall defend, indemnify,and'hold CITY harmless from and against any claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (including, without limitation, attorney, consultant and expert fees, court costs, and litigation expenses) of whatever kind or nature, known or unknown, contingent or otherwise, arising out of or in any way related to: i) The presence, disposal, release, or threatened release of any such Hazardous Material which is on or from the Leased Land, soil, water, ground water, vegetation, buildings, personal property, persons, animals, or otherwise; ii) Any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to such Hazardous Material or any use of the Leased Land; iii) Any lawsuit brought or threatened, settlement reached, or government order relating to such Hazardous Material or any use of the Leased Land; and/or iv) Any violation of any laws applicable thereto; provided,however, that this Section 19.1(d) shall apply only if the acts giving rise to the claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs,or expenses(1)occur prior to or during the term of this LEASE; and (2) arise, in whole or in part, from the use of, operations on, or activities on the Leased Land by LESSEE or LESSEE's predecessors in interest, employees, agents, invitees, contractors, subcontractors, authorized representatives, subtenants, or any other persons. The provisions of this 20 subparagraph shall be in addition to any other obligations and liabilities LESSEE may have to CITY at law or equity and shall survive the transactions contemplated herein and shall survive the termination of this LEASE. e) Operator. For all purposes, LESSEE shall be deemed the operator of any facility on the Leased Land. f) Hazardous Material Defined. As used in this LEASE, Hazardous Material is any substance which is toxic, ignitable, reactive, or corrosive or which is regulated by any Environmental Law. Hazardous Material includes any and all material or substances which are defined as industrial waste, hazardous waste, extremely hazardous waste, or a hazardous substance under any Environmental Law. Notwithstanding any statutory petroleum exclusion, for the purposes of this LEASE, the term Hazardous Material includes, without limitation, petroleum, including crude oil or any fraction thereof, petroleum soaked absorbent material. and other petroleum wastes. g) Environmental Law Defined. As used in this LEASE, Environmental Laws include any and all local, state, and federal ordinances, statutes, and regulations, as now in force or as may be amended from time to time, relating to the protection of human health and the environment, as well as any judgments, orders, injunctions, awards, decrees, covenants, conditions, or other restrictions or standards relating to same. Environmental Laws include, by way of example and not as a limitation of the generality of the foregoing, Alaska Statutes Title 46, the Resource Conservation and Recovery Act of 1976, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Clean Water Act, and the Superfund Amendments and Reauthorization Act of 1986. 19.2 Permits and Reporting. a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all permits or approvals required by any applicable law or regulation. Copies of all such permits shall be provided to CITY prior to LESSEE commencing work under this LEASE. LESSEE shall promptly make all reports to any federal, state, or local government or agency required by any permit or Environmental Law. including reports of any spill or discharge of Hazardous Material. The CITY, through the City Manager, may order LESSEE to immediately cease any operations or activities on the Leased Land if the same is being carried out without necessary permits, in violation of the terms of any permit or Environmental Law,or contrary to this LEASE. b) Correspondence With and Reports to Environmental Agencies. LESSEE shall immediately (the same or the next business day) provide CITY with copies of all correspondence and notice, including copies of all reports between LESSEE and 21 98 --- any state, federal, or local government or agency regulating Hazardous Material which relates to LESSEE's operations on or use of the Leased Land. ARTICLE 20 - ESTOPPEL CERTIFICATES Either party shall at any time and from time to time upon not less than ten(10) days'prior written request by the other party, execute, acknowledge, and deliver to such party, or to its designee, a statement in writing certifying that this LEASE is unamended and in full force and effect (or, if there has been any amendment thereof, that the same is in full force and effect as amended and stating the amendment or amendments), that there are no defaults existing (or, if there is any claimed default, stating the nature and extent thereof), and stating the dates to which the rent and other charges have been paid in advance. ARTICLE 21 -CONDITIONS AND COVENANTS All the provisions of this LEASE shall be construed to be "conditions" as well as "covenants," as though the words specifically expressing or imparting covenants and conditions were used in each separate provision. ARTICLE 22 -NO WAIVER OF BREACH No failure by either CITY or LESSEE to insist upon the strict performance by the other of any term, covenant, or condition of this LEASE or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such terms, covenants, or conditions. No waiver of any breach shall affect or alter this LASE, but each and every term, covenant, and condition of this LEASE shall continue in full force and effect with respect to any other then existing or subsequent breach. ARTICLE 23 -TIME OF THE ESSENCE Time is of the essence of this LEASE and of each provision. ARTICLE 24-COMPUTATION OF TIME The time in which any act provided by this LEASE is to be done by shall be computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday, or a holiday,and then it is also excluded. ARTICLE 25- SUCCESSORS IN INTEREST Each and all of the terms, covenants, and conditions in this LEASE shall inure to the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. ARTICLE 26 -ENTIRE AGREEMENT 22 99 - - - This LEASE contains the entire agreement of the parties with respect to the matters covered by this LEASE, and no other agreement, statement, or promise made by any party which is not contained in this LEASE shall be binding or valid. ARTICLE 27-GOVERNING LAW This LEASE shall be governed by, construed, and enforced in accordance with the laws of the State of Alaska. The terms of this LEASE are subject in all respects to the Charter and Code of Ordinances of CITY in effect on the date of this LEASE, and as they may be hereafter amended, including,without limitation, Chapter 7.05 of the Seward City Code. ARTICLE 28-PARTIAL INVALIDITY If any provision of this LEASE is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. ARTICLE 29 -RELATIONSHIP OF PARTIES Nothing contained in this LEASE shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or of joint venture or of any association between CITY and LESSEE; and neither the method of computation of rent, nor any other provisions contained in this LEASE, nor any acts of the parties, shall be deemed to create any relationship between CITY and LESSEE other than the relationship of lessee and lessor. ARTICLE 30 -INTERPRETATION The language in all parts of this LEASE shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the opportunity to seek assistance of counsel in drafting and reviewing this LEASE. ARTICLE 31 - CAPTIONS Captions of the articles, paragraphs, and subparagraphs of this LEASE are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this LEASE. ARTICLE 32 -AMENDMENT This LEASE is not subject to amendment except in writing executed by both parties hereto. ARTICLE 33 -NOTICES 23 ------- ------- All notices, demands, or requests from one party to another shall be delivered in person or be sent by mail, certified or registered, postage prepaid, to the addresses stated in this Article and to such other persons and addresses as either party may designate. Notice by mail shall be deemed to have been given at the time of mailing. All notices, demands, and requests from LESSEE to CITY shall be given to CITY at the following address: City Manager CITY OF SEWARD PO Box 167 Seward, Alaska 99664 All notices, demands or requests from CITY to LESSEE shall be given to LESSEE at the following address: Raibow Fiberglass and Boat Repair, LLC PO Box 2891 Seward, Alaska 99664 Each party shall have the right, from time to time, to designate a different address by notice given in conformity with this Article. ARTICLE 34-FIRE PROTECTION LESSEE shall, at its sole cost, risk, and expense, provide fire detection and protection to its operations on the Leased Land and fire prevention to industry standards for risks to adjacent facilities such that those risks are minimized. LESSEE shall continue to provide and maintain industry accepted standards of fire protection such that the City of Seward's ISO rating is not degraded by reason of LESSEE'S operation. The parties agree that with the rapid expansion of technology in the field of fire prevention and control LESSEE's obligations hereunder may vary during the term of this LEASE and CITY may submit LESSEE's compliance with its obligation hereunder to arbitration not more frequently than once each five (5) years. 24 - - —101 — IN WITNESS WHEREOF, the parties hereto have set their hands and seals the dates herein set forth. CITY: LESSEE: CITY OF SEWARD RAIBOW FIBERGLASS AND BOAT REPAIR, LC Jim Hunt,City Manager Dave hil ips,Pres.dent Z c � Date: Date: ATTEST: Johanna Kinney,CMC City Clerk - - -- - - -- -- 102-- -- STATE OF ALASKA ) )ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of 2015, by Jim Hunt, City Manager of the City of Seward,Alaska,on behalf of the City. Notary Public in and for Alaska My Commission Expires: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this 2y day of Tut_ , 2015, by Dave Phillips who executed the foregoing document on behalf of Raibow Fibe lass and Boat Repair, LLC i�� AII�INI/,,,,,, CfS/64.1.4.4Z0 ao c w , �tit/ NOTARY= No Public in . • or Alas �� 's,PUBLIC My Commission Expires: / 6 j 103--- — Exhibit A PERSONAL GUARANTEE To induce the City of Seward, P.O. Box 167, Seward, AK ■9664("City")to enter into a Lease Agreement with Raibow Fiberglass and Boat Repair,LLC, P.O. Box 2891, Seward,AK 99664("Raibow")effective July 1,2015,the u 'dersigned personally guarantees payment of all obligations of Raibow as desdribed in the Lease Agreement.The Lease Agreement covers the following real property: Lot 2,Block 4,Fourth of July Creek Subdivision. Seward Marine Industrial Center, Kenai Peninsula Borough,Plat No._recorded in the Seward Recording District,Third Judicial District, State of Alaska, containing approximately 18,432 square feet,more or less. I agree to provide the City with written notification of any changes in my address,and acknowledge that any notice required to be given by the City will be effective if mailed to the address shown below or such changed address on file with the City. My guarantee is absolute and unconditional. Upon default of Raibow under the Lease Agreement, I agree to immediately become liable for Raibowi obligations. The City need not seek performance,payment,and collection from Trust before seeking payment from me. 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I . .• E3E..;,,.,,......, ,Orto,w,rx 11,,,mq.,,,,C1,...10.1 wl lot moolwy ...•..ir wimmuten.o.w2(11 et tee&s mute,ii,■••ctn.memartro I ,• ....,' ..1.A-f,_.-o—...j° --gfrPW°• vi.:1___• ...E_ez. ., ,,,...•..o..wok.i,...,CO•••••0010,71,0to0.0t. 1,!,0=74117*Poo Iwo.ollow0,..w.1 so trotri4,.....ol,4.0 0.0,4 447.0.134,t1M.,tt.1.in.Y01$.7$°;•474.... Opow0.111x4113.03.rrtitif,41,.Ow. ••..e,•CI,. ----.--''......."- .NT - ..,.._4.,, ''.N. Or Ow tiw■swe c0......0 27.077 orrf t ' s'AII.IVE ANb ASSOCIAIES 1 . ,,..., g.4;7:;;..,-.4..z...". , ,.._.. .-,eli rnwrz.,„„„„,,,,-7 : .„„ i.-0. .............._ MAIIRI : 11■13,11 V.&Mt.I.A.''—Mg q i h) Exhibit C ENVIRONMENTAL COMPLIANCE PLAN RAIBOW FIBERGLASS &: BOAT REPAIR LLC PO Box 2891 Seward. Alaska 99664 . raibowboat @gmail.com To: City of Seward: Raibow Fiberglass and Boat Repair 11C., plans to and will comply with alljfederal, state and city of Seward environmental regulations that apply to its operation of a storage and vessel repair facility on property leased from the city of Seward. Raibow Fiberglass will monitor storm water runoff into existing ditches and will maintain clean water runoff from leased site. Raibow Fiberglass has no immediate plans to store or use barrels of oil or fiberglass materials on leased property but will maintain a clean and orderly storage yard. Raibow Fiberglass will not store any fuel barrels on leased property. Raibow Fiberglass may do bottom painting on vessels in leased yard and will lay down appropriate ground cover while sanding and painting and dispose of it in compliance with city of Seward regulations. Any and all spills will be immediately cleaned up. All paint cans will be stored off site at Raibows' main yard and all empty buckets will be returned to Raibows main yard and disposed of properly. Raibow Fiberglass plans to continue to upgrade and add to its leased property and will assure the city of Seward that the property will be maintained responsibly during the terms of the lease. Sincerely, 106- - - David Phillips/Owner (907)821-8015 -- - --- ----- - 107 Exhibit A PERSONAL GUARANTEE To induce the City of Seward, P.O. Box 167, Seward, AK 99664 ("City") to enter into a Lease Agreement with Raibow Fiberglass and Boat Repair, LLC, P.O. Box 2891, Seward, AK 99664 ("Raibow") effective July 1, 2015, the undersigned personally guarantees payment of all obligations of Raibow as described in the Lease Agreement. The Lease Agreement covers the following real property: Lot 2, Block 4, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. recorded in the Seward Recording District, Third Judicial District, State of Alaska, containing approximately 18,432 square feet,more or less. I agree to provide the City with written notification of any changes in my address, and acknowledge that any notice required to be given by the City will be effective if mailed to the address shown below or such changed address on file with the City. My guarantee is absolute and unconditional. Upon default of Raibow under the Lease Agreement, I agree to immediately become liable for Raibow obligations. The City need not seek performance, payment, and collection from Trust before seeking payment from me. If more than one person guarantees payment, I agree to be jointly and severally liable with all other guarantors for payment. Dated this day of U ,2015. Signed in my individual capacity as guarantor: Dave Phillips Raibow Fiberglass and Boat Repair,LLC PO Box 2891 Seward,AK 99664 --- - -- — 10 s I UT -440,1) ._= �. ... .au.r v.vva Ma. attwnr N.... ,r.'o a'&Ti�7s-�'Li b sdaAenNOS 0 'T wr „ 534V/0052V ONY 3 NN aurt...CO t L.o "Y an .a 4in' ' ' .•.a A...•o .Mr,"pwx"..`s.,1. M.u.l, 1 tl*KO..I.rw]l �` ,et ••tea ..a.—.». . t_ OK 7-47-"'7.-.(inn • ]y)J r]lint ¢L�irN n 'I"••'.u..•rtrw.w. ' r..i J. ■ 1)3{. in {t :I.rf✓•� .-aao/avw Wr ,Ns.ntlY.]r.rw.a . •^" • "may..... i—..• ■tllY xl+�Mry,(��(i:'-�t�C{al�f:`I/t�� ■Y1d 1r1f,tlN'I li.In OM■E �A �l.R� N .Y�✓�IN••.n...N•Il..�t al Nt..w W 1.YgeY.w]twwy Rvw. ■ornU[ i •>�fr:lt eill IILI). l MAWMC InIY)/K A SUM •u I. . . ,•N Ru•A.RO.NY I w.....,0.11........"Ana r OREM .111;fn.. 1 .IOOIIA Tr/KM s1aWLRYIna. an iMOYddY L- X11 0.Y1 Nn7 b-.wl a� .]•w?YWCA.a...rn COMM■ ),--- nvu/w a w.n•r a WK Yi 101 A[tw.MBU .IYama M091121 N3tNaL 1VIUSOONt Alt l. UtIYAWS f— I 1,..I NO6Nt0aNIS#t3aP A0M 30 HI tYXA! 1 •.•.w .zfi0-5102 ~t'K �` 1 L Ct I I r--t (U �� o■r- y,tnrar •. I 1 I it u0w / -..-x•-r l e x701p ta•wc,tlnrwea an Mr',.w.mcw /! / I I Irt• --• i I I '� / 1 I CzS C� r"7 / 1 I I _ —I— —JI LG_---- O _�. LAY r-U 1 1 —.1; — \ -,- // I ..^ aroaHP all ,� I 0,I f I rto, 1 /, vt,cYwa Q / i ----- F•Y'1 H+..{ 4N.M50»xprwar 4AUVION I l i 1 I tr' ...._ r. F+.1 1 I r- y,.yrgocgy..v. I I •►+.1 r•....t ^~ �n•.....n i�r AM i I / 1 j I tn. • pp .r a0t,It.'4 G 107 1 1 I 1 No'a • w7 w:• �v•e I I 5.i. 9A6 wr 1 o snaw an =y„� ........r..,.....[M..........n'F.w r i i / .. 1 1 tpt 1 not Y�+d ••-t,w v.n,n....v.0.w..w..l 4...1 I ' J. }t Ci—r I // o$ 1 i �.m, 1........._....._..__....._ 1 tt e.tr.w crl • C� ® CZ I I 1 « t,.a.• I - - _.a.._.� I L rs1La.n. . I r r,. _ 8 I PM Ole*.mtuniv>.n ..sr,.eV/Y.rI0.. cil CU /rd,%R w j I .r 1 ' M•'�l I g 1', •G �j r s1oo�a I I,/ r� °f w naIOYYano]aw'�+.° I�I/�C• •l� . ao+ pI 1i'OS01011 S rrwM I r].••d Myi r C 107 QQ a -7It//B02/11 IV sAttYltw I rr �! , S 1 me • •.w.w Um.' i I q I I 1� ..r.0,1. O .a■ f0, WorHn*JO'I rL1'V 1, L I I I F.'w'•'a iN • .•�� Tti ..wNn ten..• ' 71 I Il.[,[ IN,.rmr �' i rl i r I ' Ct 24777:.w 7.. V,77,I.IwA M M+waW 1. 1 r ...—.t. .................1..._._..._...T--+.r..: Y ,AY—M76 dYY.wchkWn wi L...IYYS] t�1 I 1 Iw.nw.. not i�- nV'AFY.vH •r! wd aalaw . ,Old j 1)'-Vt 107Y ........ raiso it°3SfS3tc�:tlGiappo:ti i 1 I I I �'w..aM'N V, t I I I S.:;... I v :� k .r: 1,'OS 0999 S I �_--T--, I ..rwN N... "� i.:.I of ads I I r I 1 I 3 i -1 t 1. J 1 •woe Is91111 M.d!1,)C..• ,. d.Y.: IM a 41w ' S r.Ni%n•w.•Men n•-„�.....r l -- --- CI-HOL Irk/O/I 38.N SISYa !u.aa/ ri lOYtf!- r• -'---i ( .. 4 1 - l,Op+fi "...wow I r III I I I I I t;i • Exhibit C ENVIRONMENTAL COMPLIANCE PLAN onest endure rit ?' RAIBOW FIBERGLASS &BOAT REPAIR, LLC Y N. g .-#Y: PO Box 2891 Seward,Alaska 99664 . raibowboat @gmail.com To:City of Seward: Raibow Fiberglass and Boat Repair LLC., plans to and will comply with all federal, state and city of Seward environmental regulations that apply to its' operation of a storage and vessel repair facility on property leased from the city of Seward. Raibow Fiberglass will monitor storm water runoff into existing ditches and will maintain clean water runoff from leased site. - Raibow Fiberglass has no immediate plans to store or use barrels of oil or fiberglass materials on leased property but will maintain a clean and orderly storage yard. Raibow Fiberglass will not store any fuel barrels on leased property. Raibow Fiberglass may do bottom painting on vessels in leased yard and will lay down appropriate ground cover while sanding and painting and dispose of it in compliance with city of Seward regulations. Any and all spills will be immediately cleaned up. All paint cans will be stored off site at Raibows' main yard and all empty buckets will be returned to Raibows main yard and disposed of properly. Raibow Fiberglass plans to continue to upgrade and add to its' leased property and will assure the city of Seward that the property will be maintained responsibly during the terms of the lease. Sincerely, David Phillips/Owner (907) 821-8015 - - 110----- 6� __..• , NOTES -r_i I I I _I 2 ! J ! ,A �'4;" e e , May wn.Y..a I I BLOCK 5 !I 90000 6 I- --- 1----- - «e L BLOCK 1 J L- -- _Ji L BASIS OF BEARING PLAT 2014-17 - '' } °"x shown y Arm n..wen*would Merle.* F wrarrxti eaa 1RACT AJ g.w� (o'so so ��ppEARI G PLAT 2 4. re n utxw, a nwOPlz�r 349a' :e p"9( .ruao' 14 ,:A•'°'°°-_--attar• - �. o 5 neAtty of e;pnpfee Ewe noted N 30[67 n m. r--T --1(•n�r ;i I- !1 I F \_ ry std pond Cods R0.13 of the ay 1,11. i :►•' I of s na11 a>lr ere caw of Lan.A survey m 4 I ° Q r. determine the.ewrlo,of the properly mar e. S • LOT ry! �ri'■ o wn.e pekoe I.canrrrvclbr. -� 4 noel AJ l•o•ersece rood occeso end Mmfy I 66!10 SO.FT Eh I' x 1 anew Aeceee rauthor.to Les..City of -- -- J L_we.rnrA.0n 1s MISS 31I'r----}n)15yy!S,L•-_-_.- s.a�.e,and other wenenp.e p«.ants.. p 5 Plot ,• e 5 mn wedrwaen Is wbper n the Oly of Serer.'. ! I i g __ LOT 4A-I Zone.and BMednq Code repWpffwe i sOd'7457•E 39.100' 418983 50. FT i x VICINITY MAP ��1 MILE 5 MN Ref reaaYea ucwlMr la p]TB]0.JO1 (Brow I t spin)en KAP 2OSO]r0(ton-ACCees n el. t ! LEA0.01177E or ORNE010 0 ARV VW/CAPON rr�.r) i 1 `I Awe*NI ev. .eln.:oyae finer owner,'.weer adopt IMA pro+ iIeeseesmn.end grant easements .e ren•en 3 ` I �l h ! P" (mv.T4'30•E 3ue77 e own...armor. 1 4. ewe 7 3/'At C.P.m, I .1(3 BLOCK 7 ! A IS 1}}2 606-5 962 gAA Dry YANAQR 6 Found Rine f p.Cep IS 1369 I I 1 1 P0.BOA 16) 4� ! L r PONY Rq 16 9966. ® You.Rroe A N.cop LS 3132 $ Lr tt �j 8; i 1^ 65. . i NOTARY'S A(7(NONi FOGMfTLT • rapne 3/6•Prod $ LOT 3 @ tlA_ Set 3/6.21-Rine A Roxrrc Cep 6 BLOCK J 1- 516170 SO. FT F�'r� i a �••'y� ��/I • 6,f, ,K MR ® slanged LS).1)9 (/1 Kw! ill i a LOT r-A fi S p/v/ smsx•et wwwee ants Sur,. a°I j{! 1 n , _ . I wr OF .w Rsaee t Neareee p«Ral Ill BLOCK 4 _i 1■ ! ��/ ! (Sw'A''.." }011-x),A.ws Rw.OnFCr i I C r fi F•}''/ MY c Is1SU) Recd Pets pen Rol is 92-27 ■8 ;4/ 1 wormer MI ALA9fA COMMISSION VOWS Seward Rxwe+rp axfrlcl { /I Racse Oefa p«Ral}(1f10-1 2 1 �'.. we / 1 L / .n,rx[mascot.FxelMg Co...per Rat 7001-22 ---------^-"� -gJ-77 / • CAW,Ee,r,r.,p«Rat I 1 / uwry maw En«nmr ' er ants per ________-...i. a O11^r'pp1n� LOT 4C F+ ---- i // LEE CER1IfiCA Tr -.-.- Appro..wre R.I..rioting. .ex I-_ p .'wee ten; shown Preen,and�eLe^10.9x•J and -.-.- Approximate boohoo.misting starter MA, Mmv'44•w 167.30•)6 0 / moist 2M'Po.:In r f erear avprore -I ! (Ra•1.<•.,a1.91 4 / .1. .a' I- I I N00.I9v01e NOOJ3.40-W .99'�lY__� I i _ 1 1 . / oAYD ROLL.,O 1 eNw�m Ktwin $yy C LOT IA FR ia`u.m .I / Cc 0 F0«grexx me Pw1 Prom.LlC• BLOCK I II .I LOT T .ii 8 i•;n I A . 965430 . Lro.l 1M1/2/MI re= $ / pPaa Boy AK99 I -- S _- LOT 4B -Fs.- -J J --_--.slN6R'3+ �, �I I- / NOTARY'S AaavoxwcwTNr L _; f•agfae:!:Pill-.-•--•-fwmwbT91 �I1� I / MP NASN ROAD / TRACT.43 (NooN Rope) fl.-- LOT J I z J y/ I AAneeneyo¢o BERME we Ras 1'- oAr Rr •m I- I I- I � / u %' I I I LOT 1 I / / NOTARY FOR ALASKA MY CO.622906 EAPMC3 I 1 I i' / / I 6Laa a \ \-J--J-----J'/ �/ BLOCK 10 / I , \ TRACT AS (N.W.f Ram // c a.- - (,l,vlt', 1 (GC o�'ci / I I -I- a I'' L-I I I FOUR771 OF JULY CREEK SUBDIVISION L_J 4.0 SEWARD MARINE INDUSTRIAL CENTER 3030.. RAIBOW REPLAT Or for 4.4.BLOCK) .f01EK 511680015 KAY Mprsn6AL CENT, CURVE DATA SURVEYOR'S CERAgCAIE ANn NINA!,RAT}N1-r) PLAT APPROVAL wACwuMSUBO vxo 12314,007.De POCK 4 9101E 04911)0 !aeon, DELTA Cr1000 9167 pot woe a.m..by the Km.Pr.M.w. I hereby awllly that r em prepeny re9nnr.e and Ikene.0 MAN Or 4117 0070 50806901 r (16999' 4165 14'49'.10• 555'30'36'T 4,07 04.00,40 Rants Comm:uren o1 th.01.010 port.lane el...M the Slat.of 170040,tnb rot 023000 MARrNE IMOUSTM41 COOTS 1.9 9 cd JI500ADCwS NORM 400 DON.PLAT 20.30-0 2 000 61.33' 0006/J• 51139'16'F 3l.)Ir eT /5.o,orn•,l,.0.,,1 by me or anew m}wacr 041.4 m. LOCA,90 NI MC 90 x/1.SECOW IS Am • 3 3000 935.1' 109]6'13- 5322261T I-E 61.931 Me manu.nwn a n.rewn oeleoey amtsf u ws«e.e and ,oppl0oa t SOON,PAPS r EAST,s. j( 2 Of dimension.end efts«delete ore caned to Me norm. S[N6p10 PCCOROR0 OrSImCT 31. 4 [169.10' 81.93' 2JN070- 3)631]OY BL 16, standards of Roc..a rend drewywa M fne star.of Alos. PTYO3 SEWARD /fr Borough OPnn. C pF 4A A BOROUGH DArz ;yam • CLINE AND ASSOCIATES •„np'' CITY OF SEWARD LAND SURVEYORS w WASTEWATER DISPOSAL 416 410 AK71R PO BOP 2763 2224610.M'99664 4 Rare tar.axrertptw MxppxN.1501 m..r, 0l«y '�/ (9671 224-]3]4 m.n r:peon pt me Oworlm.nr 0419:02/12/15 SCALE'1.100 /f 20i� co n.for Past CanxerwNw. (04X0 WIC F.a 6K: 14-03 7//f/20f !///p 004MNC Na: 14-43.2 KPB.11: 1 2013-6t2 r ,� PLANNING OFFI � '_ ..ray `..W. Y y4 ,•i'r4 r 'r F7� � � � • TN flc.wtwlrit' ,-•:;,,... F r Y' J ,, .tea, w i` A' 47.-,...- 's J �i , ` ..* .- ..per _ ..... - . ,. ' or .0- . ...._. _ ..�, r"a4tii '✓ 1P-•[ -" ' 1. --...* �•'� S.- - ,,._ �. � 'a `:;rib'!; ` f t• _„♦r - r 9 M r• r +� ' I •. ..............,7.1---......= c glip; a s •• 1 f r ,r c_� . 1h rlt 3 syI , . I)! Lot 2, Blk 4 a. k f7 z , 18,442 sq. ft. , t y -R = - ..$ tiii - I .*-: t .- ,.,-;ot, .‘ • ,- • • i may^ t.,. ..- :'. likk fly�•` 1 .} J .t" • Bp Fy .i �#^ � , �.,, , t OR ! E -� . -. �. w �y Lot 4D, Blk 7 • ' 66,810 sq. ft. ; saa:: r ly _ e �"u tc r , ,,...,......- . ......,,, ....._ ,..,.. ., , • Y (y • ..f •••• • a f! y'�1 �y # `mss � ,` r :F w s yr ■• P T ��ss 7 �cY • s a .. ... . 111111111111111W " . :1;41!:.‘114%. .... .4 3t: • . . rte ..° _ _ w (K•. Lot 2, Block 4 and Lot 4D, Block 7 , E� \\ Raibow Lease Locations 11 /�„■±* ^-'o, N August 10, 2015 different data sources property lines and aerial 0 295 590 Feet magery do not overlay correctly. Map is to be used for 414.A P # , )rientation and reference purposes only. ii. Mapping Assistance by Alaska Map Company,LLC 112 AGREEMENT FOR FACILITY USE PERMIT City of Seward Seward Marine Industrial Center THIS AGREEMENT is made and entered into this 21s` of January ,2015 , by and between the City of Seward, Alaska ("City") and Raibow Fiberglass and Boat Repair, LLC ("Permittee"). WHEREAS, the City of Seward operates certain facilities including a boatyard at the Seward Marine Industrial Center (SMIC).NOW, THEREFORE, the parties agree as follows: A TERM This permit shall become effective on the 19th day of January, 2015, and shall expire when any of the insurance policies required by this permit are cancelled or have lapsed for any reason or one year, whichever comes first. Expiration or termination of the Permittee's authority to use the marine terminal shall not affect the parties' continuing obligations under this permit. B NOTICES Any notice provided for herein shall be given in writing and transmitted by personal delivery or prepaid first class registered or certified mail to the parties at the following addresses: City: Harbormaster City of Seward PO Box 167 Seward, Alaska 99664 Permittee: Raibow Fiberglass and Boat Repair, LLC PO Box 2891 Seward, AK 99664 Notice sent by mail shall be considered given forty-eight (48) hours after mailing. C RESPONSIBILITIES OF CITY During the term of this permit, the City Shall: 1 Designate areas consistent with Port operation in which the Permittee may place and store vessels and equipment related to activities at the Port; and 2. Reasonably provide for the removal of snow and ice from the storage yard. D RESPONSIBILITIES OF PERMITTEE During the term of this permit, the Permittee: Server Documents/Forms Terminal Uscr Permit Revised May 1.2007 ----- -- _-----113 1 May leave its equipment or vehicles or its employees' vessels only in those areas designated by the Harbormaster for such purposes. The Permittee assumes the risk for any damage that may be sustained by such equipment or vessels at the Port except for that caused by the City's own negligence. 2 Shall have absolute control of the responsibility for the actions of its employees. 3. Shall be responsible as agent for vessels that are within its care, custody, and control. 4. Shall assume all responsibility for any environmental damage to City of Seward property or surrounding coastal or inland waterways caused by Permittee's activities or occupancy. E NONDISCRIMINATION In performing its duties under this permit, the Permittee may not discriminate against any person on the basis of race, creed, color, religion, national origin, age, sex, marital status, physical or mental handicap. F NON WAIVER The failure of the City at any time to enforce a provision of this permit shall in no way constitute a waiver of the provision, nor in any way affect the validity of this permit or any part hereof, or the right of the City thereafter to enforce each and every provision hereof. G ASSIGNMENTS There shall be no assignments of this permit to another person. H AMENDMENT The parties may amend this contract only by written agreement, which shall be attached as an appendix hereto. JURISDICTION; CHOICE OF LAW Any civil action arising from this permit shall be brought in the Superior Court for the Third Judicial District of the State of Alaska at Anchorage. The law of the State of Alaska shall govern the rights and obligations of the parties under this permit. J SEVERABILITY Any provision of this permit decreed invalid by a court of competent jurisdiction shall not invalidate the remaining provisions of the permit. K INTEGRATION This instrument and all appendices and amendments hereto embody the entire agreement of the parties. There are not promises, terms, conditions or obligations other than those contained herein. This permit shall supersede all previous communications, representation or agreements, either oral or written, between the parties. Server Documents/Forms Terminal User Permit Revised May 1,2007 _. - — --- ---- — 114 ----------- ----- - -- L HOLD HARMLESS. To the fullest extent permitted by law, the Permittee agrees to defend, pay on behalf of, indemnify, and hold harmless the City of Seward, its elected and appointed officials, employees and volunteers and others working on behalf of the City of Seward against any and all claims, demands, suits, or loss, including all costs connected therewith, and for any damages which may be asserted, claimed or recovered against or from the City of Seward, its elected and appointed officials, employees, volunteers or others working on behalf of the City of Seward by reason of personal injury, including bodily injury or death and/or property damage, including loss of use thereof, which arises out of or is in any way connected or associated with this contract. M RISK OF LOSS The Permittee agrees that any equipment cargo, vehicle, or other material of any kind that is stored or placed at the Port is so stored and placed at the sole risk of the Permittee. In the event that any such equipment, cargo, vehicles or other materials is damaged or destroyed by any cause other than the City's own negligence, the Permittee shall not seek compensation or restitution of any kind from the City. N PERMIT ADMINISTRATION The Harbormaster shall administer this permit on behalf of the City. 0 TERMINATION Either the City of the Permittee may terminate this permit at any time for any reason by notifying the other party in writing at least twenty (20) days before the date upon which such termination is to be effective. Neither party shall be liable to the other under this permit after the effective date of termination. P DISPUTES In the event of a dispute between the parties under this permit, the Harbormaster shall reduce his position to a written decision and serve a copy thereof upon the Permittee. The Permittee may appeal the decision by written request for an administrative hearing to the City Clerk within seven (7) days after receiving the Harbormaster's decision. The administrative bearing procedures are outlined in Seward City Code section 7.10.900. While the appeal is pending, the Permittee shall abide by the decision of the Harbormaster. The decision of the City Manager shall be final. Q INSURANCE 1. During the term of this permit, the Permittee shall maintain in good standing insurance described in Subsection 2 of this Section. Prior to its performance pursuant to this permit, the Permittee shall furnish the Harbormaster a certificate of insurance in accordance with Subsection 2 of this Section before work can commence. This coverage shall be primary to the Additional Insured's, and not contributing with any other insurance or similar protection available to the Additional Insured's, whether other available coverage be primary, contributing or excess. 2. The Permittee shall obtain: Server Documents/Forms Terminal User Permit Revised May 1,2007 -3- -- — - --115 a. General Commercial Liability insurance in an amount not less than $1,000,000 for any one person and not less than $1,000,000 for any one accident of occurrence. b. Workers Compensation Insurance: The Contractor shall procure and maintain during the life of this contract, Workers Compensation Insurance, including Employers' Liability Coverage, in accordance with all applicable statutes of the State of Alaska. c. Property damage liability, which shall include any property whether or not in the care, custody or control of the Permittee, in an amount of not less than $1,000,000 because of any on accident. d. Permittee shall procure and maintain during the life of this agreement, Motor Vehicle Liability Insurance, including no-fault coverage with limits of liability not less than $1,000,000 per occurrence combined with single limit Bodily Injury and Property Damage. 3. The insurance obtained pursuant to this Section shall name the City as an additional insured, and provide for written notice of any termination, cancellation, or expiration of the insurance to be delivered to the Harbormaster no less than twenty (20) days before the effective date thereof. R FIRE PREVENTION. The Permittee shall keep fire lanes clear and maintain fire control equipment in a readily accessible location. S BREACH AND REMEDIES. 1 A violation of any provision of this permit, and the failure to remedy the same within forty-eight (48) hours after written notice to Permittee of the violations, shall constitute grounds for immediate termination of this permit. Server Documents/Forms Terminal User Permit Revised May 1,2007 -4- 116 — — IN WITNESS WHEREOF, the parties have executed this permit on the date first Hereinabove written. P EE: Fi r lass and Boat Repair, LLC X ( , Its: Owner / 22-7 , Date STATE OF ALASKA ) )SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this _day of-ZP .)U , 20 ( D , before me, the undersigned Notary Public in and for the State f Alaska, duly commissioned and sworn as such, personally appeared DA J iii t-t .ut PS , known to me and to me known to the individual named in and who executed the foregoing instrument, and he/she acknowledged to me that he/she did sign and seal the same as his/her voluntary act and deed for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first hereinabove written. `,_ '17.. -- NOTA PUBL in and for Alaska NOTAB El My Commission Expires: c ..-‘'-‘-�O1 'PU LIC1i i.4 CITY OF SEWARD, ALASKA )&% HarbormasterDeputy Harbormaster X11 u— 22-I 2/5— Date Server Documents/Forms Terminal User Permit Revised May 1,2007 -5- -- - — 117 — — — — Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2015-074 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A NEW LEASE WITH RAIBOW FIBERGLASS AND BOAT REPAIR, LLC FOR LOT 4D BLOCK 7 FOURTH OF JULY CREEK SUBDIVISION, SEWARD MARINE INDUSTRIAL CENTER, KENAI PENINSULA BOROUGH, PLAT NO. SEWARD RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA WHEREAS, the City is the owner of real property described as Lot 4D Block 7 Fourth of July Creek Subdivision; and WHEREAS, Raibow is currently conducting business at Lot 4D Block 7 with a Facility Use Permit which expires in February 2016; and WHEREAS, the City and Raibow Fiberglass and Boat Repair, LLC (Raibow) have previously executed a lease contract at the Seward Marine Industrial Center(SMIC); and WHEREAS, Raibow needs to lease additional land at the SMIC; and WHEREAS, Raibow Fiberglass and Boat Repair, LLC submitted a proposal to lease Lot 4D Block 7 Fourth of July Subdivision for a boat repair yard; and WHEREAS, Raibow has submitted an application with the State of Alaska for their Storm Water Prevention Pollution Plan as required; and WHEREAS, the City Manager has negotiated a lease agreement to lease additional land to Raibow under the provisions of Seward City Code 7.05.410; and WHEREAS, the Council approve in Resolution 2015-019 recommending that the Kenai Peninsula Borough approve the replat of City owned land of Lot 4D Block 7 Fourth of July Creek Subdivision, which is currently in the process of being re-platted; and WHEREAS, the lease request is consistent with the Comprehensive Plan and the Seward Marine Industrial Center Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. The Council has determined that the essential terms and conditions and the method disposition of the proposed lease with Raibow Fiberglass and Boat repair, LLC for the 118 CITY OF SEWARD,ALASKA RESOLUTION 2015-074 real property described as Lot 4D, Block 7, Fourth of July Subdivision, located in the City of Seward, is in the public's best interest. Section 2. The City manager is authorized to execute a new lease with Raibow Fiberglass and Boat Repair, LLC in substantially the form as presented at this meeting. Section 3. This resolution shall take effect thirty (30) days after its adoption and posting. Upon the effectiveness of this resolution the lease will be effective September 22, 2015 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of August, 2014. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 119 Agenda Statement Meeting Date: August 24, 2015 -..C111■•■‘ To: City Council1"" 1/.ASAP Through: City Manager Jim H 14 From: Harbormaster Norm Regis Agenda Item: Raibow Fiberglass and Boat Repair, LLC New Lease at Lot 4D, Block 7, Seward Marine Industrial Center BACKGROUND & JUSTIFICATION: Raibow Fiberglass and Boat Repair, LLC leased approximately 13,500 square feet effective August 1, 2013 for a twenty year term. As the business continues to grow, they need an additional piece of land along Nash Road. In February 2015 the City's issued a Facility Use Permit which was signed by Dave Phillips of Raibow adding 66,810 square feet of land at the 2014 appraised cost per square foot, which will expire in January 2016. Mr. Phillips: a.) Submitted an application with the State of Alaska for a Storm Water Pollution Prevention Plan(SWPPP) as required. b.) Shall comply with all Seward City Code requirements. c.) Raibow has purchased a survey, and is in the process of a re-plat on this parcel. The City Council has previously determined that land at SMIC is available for lease. INTENT: To approve a long term lease between the City of Seward and Raibow Fiberglass and Boat Repair, LLC on Lot 4D Block 7 Fourth of July Creek Subdivision within the industrial zoning District, Seward Marine Industrial Center for boat repair operations. CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan (document source here): This lease meets the plan X goals to develop SMIC as a major industrial area of the community. Strategic Plan (document source here): Attract New Industry: 2 Develop an aggressive marketing campaign which highlights the diverse X resources, and quality of life that make Seward a great place to live and establish a business or industry. (Page 5) 3. Other (list): 120 FISCAL,NOTE: The annual rent is $6000.00 plus tax. The lease rate is based on 8% of fair market value. The parcel will reappraise in 2020. Approved by Finance Department: j.etc �e/telci ATTORNEY REVIEW: Yes X No l� RECOMMENDATION: Approve Resolution 2015- �� authorizing the City Manager to approve a new lease with Raibow Fiberglass and Boat Repair, LLC. 121 LEASE AGREEMENT between CITY OF SEWARD, ALASKA and Raibow Fiberglass and Boat Repair LLC Effective Date: July 1, 2015 TABLE OF CONTENTS ARTICLE 1 -LEASED LAND 3 1.1 Description of Leased Land 3 1.2 Covenant of Quiet Enjoyment; Warranty of Title 3 1.3 Reserved 3 1.4 Property Accepted 4 1.5 Permits 4 1.6 Platting 4 1.7 Development of Leased Land 4 ARTICLE 2-LEASE TERM 5 2.1 Lease Term 5 ARTICLE 3 -RENTAL RATE 5 3.1 Initial Rental Rate 5 3.2 Rental Adjustments 5 3.3 Procedure for Rental Adjustment 6 3.4 Effect of Late Appraisal by CITY 6 3.5 Appraisal by LESSEE 6 3.6 Effective Date of Adjusted Rental Rate 7 3.7 Interim Rental Adjustments 7 3.8 Late Payment Charge 8 ARTICLE 4-USE OF LEASED LAND 8 4.1 Use of Leased Land 8 4.2 Obligations of LESSEE 8 4.3 No Preferential Rights to Use Public Facilities 8 4.4 Adequacy of Public Facilities 8 4.5 Tariffs and Other Service Fees 9 4.6 Time for Payment of Utilities and Taxes 9 4.7 Other Uses 9 ARTICLE 5 -UTILITIES AND RIGHTS OF ACCESS 9 5.1 Utilities 9 5.2 Third-Party Improvements 10 5.3 Easements 10 ARTICLE 6-CONSTRUCTION BY LESSEE 11 6.1 Improvements on Leased Land 11 6.2 City Review of Construction 12 ARTICLE 7-RETURN OF LEASED LAND/SITE CONDITIONS 12 7.1 Return of Leased Land in Original Condition 12 ARTICLE 8-FORCE MAJEURE 12 ARTICLE 9-LESSEE'S ACTS OF DEFAULT 12 ARTICLE 10-REMEDIES FOR DEFAULT BY LESSEE 13 ARTICLE 11 -TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 15 11.1 Real Property Improvements 15 11.2 Personal Property 15 123 - -- - - - --- - ARTICLE 12-ASSIGNMENT OR SUBLEASE 15 12.1 Assignment of Lease or Subleasing 15 12.2 Assignment of Lease for Security 16 12.3 Assignment to Affiliate 16 ARTICLE 13-LESSEE'S DUTY TO DEFEND/INDEMNIFY 16 ARTICLE 14-CITY'S DUTY TO DEFEND/INDEMNIFY 17 ARTICLE 15-INSURANCE 17 15.1 Minimum Insurance Requirements 17 15.2 Subrogation Rights Waived 18 ARTICLE 16-CONDEMNATION 18 ARTICLE 17 -ARBITRATION 19 17.1 Arbitration 19 ARTICLE 18 -MAINTENANCE AND REPAIRS 20 18.1 Normal Maintenance 20 18.2 Safety Issues 21 18.3 Cost of Repairs 21 ARTICLE 19-ENVIRONMENTAL CONCERNS 21 19.1 Hazardous Materials 21 19.2 Permits and Reporting 24 ARTICLE 20-ESTOPPEL CERTIFICATES 24 ARTICLE 21 - CONDITIONS AND COVENANTS 24 ARTICLE 22 -NO WAIVER OF BREACH 25 ARTICLE 23 -TIME OF THE ESSENCE 25 ARTICLE 24 -COMPUTATION OF TIME 25 ARTICLE 25 -SUCCESSORS IN INTEREST 25 ARTICLE 26-ENTIRE AGREEMENT 25 ARTICLE 27-GOVERNING LAW 25 ARTICLE 28-PARTIAL INVALIDITY 25 ARTICLE 29-RELATIONSHIP OF PARTIES 26 ARTICLE 30-INTERPRETATION 26 ARTICLE 31 -CAPTIONS 26 ARTICLE 32-AMENDMENT 26 ARTICLE 33-NOTICES 26 ARTICLE 34-FIRE PROTECTION 27 Exhibit A-Personal Guarantee Exhibit B - Environmental Compliance Plan Exhibit C -Leased Parcel 12 4-- - - - --- - LEASE AGREEMENT THIS LEASE AGREEMENT (the "LEASE") is made by and between the CITY OF SEWARD (the "CITY"), a municipal corporation located in the Kenai Peninsula Borough, State of Alaska, whose mailing address is P.O. Box 167, Seward, Alaska 99664 and Raibow Fiberglass and Boat Repair, LLC (the "LESSEE"), an Alaska corporation whose mailing address is P.O. Box 2891, Seward, Alaska 99664. WHEREAS, LESSEE has indicated its desire to lease the property known as Lot 4D, Block 7, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. recorded in the Seward Recording District, Third Judicial District, State of Alaska,consisting of approximately 66,810 square feet,more or less; and WHEREAS,the City Council of CITY has determined that lease of the Leased Land (as defined below)to LESSEE for the purposes described herein would be in the public interest; and WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire burden of compliance with environmental regulations or controls with respect to LESSEE's operations on the Leased Land. NOW THEREFORE, for and in consideration of the mutual promises and covenants hereinafter contained,the parties hereto agree as follows: ARTICLE 1 -LEASED LAND 1.1 Description of Leased Land. The Leased Land is located in the City of Seward, Alaska. The Leased Land is described as follows: Lot 4D, Block 7, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. recorded in the Seward Recording District, Third Judicial,District, State of Alaska, consisting of approximately 66,810 square feet, more or less. 1.2 Covenant of Quiet Enjoyment; Warranty of Title. Subject to the encumbrances as of the date hereof, any reasonable restrictions imposed on the Leased Land as part of recording of a plat by CITY, and the provisions of this LEASE, CITY hereby covenants and warrants that LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE. 1.3 Reserved. _125 - - - -- - -- 1.4 Property Accepted "As-is." LESSEE acknowledges that it has inspected the Leased Land and accepts the same "as-is" and without reliance on any expressed or implied representations or warranties of CITY (other than the representations in Section 1.2 hereof), or agents of CITY, as to the actual physical condition or characteristics thereof and the legal description or depiction of the Leased Land in Section 1.1 or Exhibit A hereto. 1.5 Permits. LESSEE, at its sole cost, shall obtain all permits necessary to the construction and operation of its facilities on the Leased Land. CITY may from time to time, upon request of LESSEE, execute such documents, petitions, applications, and authorizations as may be necessary, as the underlying fee owner, to file with an agency or public body responsible therefor an application for conditional use permits, zoning and re-zoning, tentative and final tract approval, or precise plan approval that may be required for the lawful construction and operation of the facilities of LESSEE permitted on the Leased Land by the terms of this LEASE. However, nothing in this Section shall be construed as requiring CITY to support or approve any such application or permit requests. If the agency or public body responsible to approve or grant such application or permit request is a City of Seward agency, department, or board, LESSEE shall follow all City of Seward procedures, the same as any other applicant making similar requests of the City of Seward, according to the Charter, ordinances, resolutions, or any regulation, rules, or procedures of the City of Seward. Nothing in this Section imposes any duty or responsibility on CITY to assist LESSEE in obtaining any other permits or approvals, including without limitation those required by the U.S. Army Corps of Engineers (e.g., wetland fill permits),the Environmental Protection Agency (e.g., Clean Air Act permits), the Alaska Department of Public Facilities and Transportation (e.g., right-of-way permits), the Alaska Department of Fish and Game, and the Alaska Department of Environmental Conservation. 1.6 Platting. In the event CITY elects to replat, CITY agrees to include the Leased Land in such replat in accordance with the description in Section 1.3. If LESSEE requests a replat of the Leased Land prior to that time, CITY shall assist LESSEE in the preparation and filing of the replat,and LESSEE shall reimburse CITY for CITY's costs in assisting with the preparation and filing of the replat. LESSEE agrees to sign the plat and any other documents necessary to complete the platting or replatting of any area including all or a portion of the Leased Land. LESSEE shall accept reasonable restrictions, easements, or plat notes as may be required by CITY or other governmental authorities as a condition to filing the plat of the Leased Land or the plat of CITY-owned real property adjacent to the Leased Land. 1.7 Development of Leased Land. LESSEE shall continue operate a vessel storage and maintenance facility through the term of the lease. LESSEE understands that construction and operations of its marine-related business is a major consideration for the CITY's agreement to the lease the Leased Land to LESSEE. LESSEE shall not operate any other unrelated business on the Leased Land without the consent of the CITY. 126- -- - - -- - - a) CITY may withhold its consent as to any proposed business or activity which, in CITY's sole discretion, is not desirable or compatible with the CITY's operation of the Seward Marine Industrial Center. b) In accordance with the provisions of Article 12,no assignment or sublease shall be permitted,unless approved in writing by CITY. Any sublease shall be expressly subject and subordinate to this Lease and the rights of the CITY hereunder. The CITY may elect to not approve any proposed assignment or sublease that might result in a business or activity that, in the CITY's sole discretion,is undesirable and/or incompatible with the CITY's Seward Marine Industrial Center. ARTICLE 2-LEASE TERM Lease Term. The term of this LEASE (the "Lease Term") shall be in accordance with CITY's authorization in Resolution No. 2015- (the "Resolution"). The Lease Term shall run for approximately 20 years from the Effective Date, ending at midnight on June 30, 2035. LESSEE shall have the right to extend the term of this LEASE for two additional five(5)year periods,provided that: a) LESSEE exercises its option to extend at least one hundred and eighty (180) days prior to the expiration of the then current lease term; b) LESSEE is not in default under any term or provision of this LEASE; and c) LESSEE shall exercise its options to extend by sending written notice in accordance with the provisions of Article 33 of this LEASE. ARTICLE 3-RENTAL RATE 3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE through June 30, 2014, the annual rental rate for the Leased Land shall be set at $6,000.00. Rent shall be payable quarterly in advance upon the Effective Date of this Lease (prorated for the balance of the current quarter) and thereafter on or before the 20th day of the month beginning each calendar quarter: January 20, April 20, July 20 and October 20. The amount of each quarterly payment shall be one-quarter of the annual rental rate as initially established or later adjusted under this Article 3. 3.2 Rental Adjustments. The annual rental payment shall be adjusted on July 1, 2020, and on the same date every five years thereafter (each a "Rental Adjustment Date"). The adjusted annual rental payment to be paid under the terms of this Lease shall be the appraised fair market rental value(the "Fair Market Rental Value") of the Leased Land at the highest and best use of the Leased Land. The highest and best use of the Leased Land 127_ _- --- - - - -- shall be determined without regard to LESSEE's intended or actual use of the Leased Land unless that use is coincidentally the highest and best use of the Leased Land. CITY shall complete such appraisal and deliver a copy of the appraisal report to LESSEE not less than ninety(90)days before each Rental Adjustment Date. 3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment Date, CITY shall, at its own expense, retain an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute), who shall determine the "Fair Market Rental Value" of the Leased Land in accordance with this Article 3, exclusive of improvements placed thereon by LESSEE but inclusive of all improvements made by CITY(including those made before or subsequent to this LEASE). The appraiser's report shall be delivered to LESSEE not less than ninety (90)days before the Rental Adjustment Date. The appraiser's determination of Fair Market Rental Value of the Leased Land shall constitute a final binding determination of the Fair Market Rental Value and the adjusted annual rental rate until the next Rental Adjustment Date,unless LESSEE objects to CITY's appraiser's determination of the Fair Market Rental Value. In that case, LESSEE shall give written notice to CITY of its objection within thirty (30) days of receipt of the appraiser's report, and LESSEE shall then engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at LESSEE's expense to make an appraisal of the Fair Market Rental Value in accordance with this Article 3. If LESSEE's appraisal determines a Fair Market Rental Value that varies from that determined by CITY's appraisal by no more than twenty percent(20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If LESSEE's appraisal determines a Fair Market Rental Value that varies from CITY's appraisal by more than twenty percent(20%),then, unless CITY and LESSEE agree on a rate themselves,the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.4 Effect of Late Appraisal by CITY. If, for any reason, CITY does not complete the appraisal or deliver a copy of the appraisal report to LESSEE ninety (90) days before the Rental Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy of the appraisal report to LESSEE at any time thereafter. However, any such adjusted annual rental rate shall not be effective until the quarterly payment due date immediately following the date CITY delivers the appraisal report to LESSEE. 3.5 Appraisal by LESSEE. If, for any particular Rental Adjustment Date, CITY fails to obtain an appraisal of the Fair Market Rental Value or fails to deliver the appraisal report to the LESSEE by the Rental Adjustment Date, LESSEE may engage an independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at LESSEE's expense to make an appraisal under the terms of this Article 3 and submit a copy to CITY before the next quarterly rental payment due date. However, LESSEE must notify CITY in writing within thirty (30) days following the Rental Adjustment Date of LESSEE's election to obtain an appraisal. If CITY objects to LESSEE's appraiser's determination of _ _-128-- --- - - the Fair Market Rental Value, CITY shall give written notice to LESSEE of its objection within thirty (30) days of receipt of the appraiser's report, and CITY shall then engage an independent State of Alaska certified MAT appraiser (Member, Appraisal Institute) at CITY's expense to make an appraisal of the Fair Market Rental Value as of the Rental Adjustment Date and in accordance with this Article 3. If the CITY's appraisal determines a Fair Market Rental Value that varies from that determined by LESSEE's appraisal by no more than twenty percent(20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If the CITY's appraisal determines a Fair Market Rental Value that varies from LESSEE's appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.6 Effective Date of Adjusted Rental Rate. The adjusted annual rental rate established by this Article 3 shall apply as of the Rental Adjustment Date if CITY provided a copy of the appraisal report to LESSEE no later than ninety (90) days before the Rental Adjustment Date. If the adjusted annual rental rate is based on CITY's late appraisal or late delivery of the appraisal report to LESSEE, the adjusted rental rate shall be effective beginning with the quarterly rental payment due date immediately following the date the CITY delivers the appraisal report to LESSEE. Notwithstanding the above, the exercise by either CITY or LESSEE of the objection procedure relating to rental adjustment described in this Article 3 shall not postpone LESSEE's obligation to pay rent at the rate established by CITY. LESSEE shall pay the amount of rent as established or adjusted by CITY until the question of objection to the rental rate is finally resolved. At such time the objection to the rental rate is resolved, an appropriate credit or adjustment shall be made retroactive to the date the new rental rate was established by CITY or in cases where CITY failed to obtain an appraisal or deliver the appraisal report to the LESSEE, to the Rental Adjustment Date. 3.7 Interim Rental Adjustments. For each year in the period between each Rental Adjustment Date, excepting the Rental Adjustment Dates, the annual rental payment shall be increased beginning July 1,2014 and on July 1 of every year thereafter(each on "Interim Rental Adjustment Date") in an amount that reflects the increase, if any, in the cost of living for the previous year as stated in the Consumer Price Index, All Urban Consumers, Anchorage, Alaska Area, All Items 1967=100 ("CPI"), as published by the United States Department of Labor, Bureau of Labor Statistics for the most recent period published immediately prior to the Interim Rental Adjustment Date. In no event shall the rent be less than the previous year. If the CPI is revised or ceases to be published, the CITY shall instead use such revised or other index as most nearly approximates the CPI for the relevant period, and make whatever adjustment in its application as may be necessary, in the CITY's sole discretion,to accomplished as nearly the same result as if the CPI had not been revised or ceased to be published. 129- - 3.8 Late Payment Charge. Rental payments not received by the due date shall bear interest until paid at a rate of 10.5% per annum, or the maximum rate permitted under Alaska law, whichever is less, plus a flat monthly late fee of$2.50, or such amount as may be established from time to time by CITY ordinance or resolution and relating to late fees for CITY leases generally. ARTICLE 4 - USE OF LEASED LAND 4.1 Use of Leased Land. CITY has limited land available for lease. Use of the Leased Land by LESSEE has been determined by the City Council of CITY to be in the public interest. LESSEE may use the Leased Land for boat storage/repair work and industrial vessel shop. 4.2 Obligations of LESSEE. LESSEE may use the Leased Land only in accordance with applicable CITY zoning code provisions and provided the following conditions are met: a) The Leased Land is to be completely cleaned and restored to its original condition, that is, the condition existing prior to this LEASE or in better condition upon termination of this LEASE. b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazardous Materials on the Leased Land except as permitted in Article 19 of this LEASE. c) LESSEE shall not use the Leased Land in any manner or construct any facilities thereon which would inhibit the use of adjacent or other lands. d) LESSEE may operate a boat repair and boat storage business on the Leased Land. e) Any changes to this site require prior CITY approval,through the City Manager. 4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE any exclusive rights to use any public port facilities constructed or operated by CITY. LESSEE will be subject to any tariffs, procedures, rules, and regulations of CITY concerning the use of such facilities as they may now exist or from time to time be amended, and LESSEE shall not be entitled to any exclusive use. 4.4 Adequacy of Public Facilities. CITY makes no representations or warranties as to the fitness of any particular part or the whole of CITY's public facilities for the uses intended by LESSEE, and LESSEE has inspected those facilities and has satisfied itself that the facilities are sufficient for the intended uses by LESSEE. CITY makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any information provided by CITY. 130- - -- 4.5 Tariffs and Other Service Fees. CITY shall have the right to make amendments to its tariffs, regulations, and scheduled fees from time to time, even if those adjustments shall cost LESSEE more for its operations or use of public facilities, and CITY is free to do so provided only that it does not impose any greater burden or higher rate upon LESSEE than upon any other similar user of the public facilities. 4.6 Time for Payment of Utilities and Taxes. LESSEE will pay for utilities and taxes related to operations on the Leased Land and LESSEE's interest in this LEASE and improvements thereon, if any, before such obligations become delinquent; provided, that LESSEE may, in good faith and before such delinquency, contest any such charge or assessment. 4.7 Other Uses. This LEASE shall not preclude the CITY from actively seeking other and additional tenants for space, including those who would be in competition with LESSEE or who might be interested in leasing the Leased Land should this LEASE be terminated for any reason. 4.8 Use of Public Docks and Port Facilities. Public docks are subject to port and harbor rules and regulations as adopted by City Council. ARTICLE 5 -UTILITIES AND RIGHTS OF ACCESS 5.1 Utilities. LESSEE, at LESSEE's sole cost and expense, shall provide for the extension of public utilities to the Leased Land sufficient for LESSEE's intended operations. In so doing, LESSEE shall comply with all CITY regulations and requirements, and the tariffs of the affected utilities, with respect to the construction of those utilities. CITY agrees to cooperate and assist the LESSEE, through consultation and review, in LESSEE's planning and engineering of those improvements. All utilities will be located and sized in accordance to CITY's Master Plan for the area leased. All such construction shall be in compliance with all applicable building, mechanical and fire codes. Utilities constructed by the LESSEE within the public right-of-ways or within public utility easements will normally be accepted and maintained by CITY or utility companies may be used to serve other customers of LESSEE's without payment of fees or reimbursement of construction cost to the LESSEE. However, this does not preclude several lessees from agreeing to share the cost of constructing a utility to serve their facilities. CITY or other utility company may determine that it would be to their benefit to oversize the utility or install special fittings or equipment in order to serve other existing or future users. The additional direct costs of such oversizing shall be borne by CITY or other utility company. Such costs shall be limited to the supplier's cost of the additional fittings, equipment, direct labor, and equipment costs to complete the installation. The costs of oversizing pipe or electrical conduit shall be limited to the difference between the supplier's price to provide the size required to serve its facility and the price of the oversized material required by CITY or utility company. - - -- - 131 - - LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation of LESSEE's facilities on the Leased Land, it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. 5.2 Third-Party Improvements. At the request of LESSEE, CITY shall, from time to time, execute and deliver, or join in execution and delivery of, such documents as are appropriate, necessary, or required to impose upon the Leased Land in accordance with the terms of this LEASE covenants, conditions, and restrictions providing for the granting of uses of the Leased Land, or any part thereof, the establishment of party walls, the establishment of mutual and reciprocal parking rights or rights of ingress or egress, or other like matters (herein called "third-party improvements"), all of which are for the purpose of the orderly development of the Leased Land as a commercial unit subject, however,to the conditions that: a) All such matters shall be limited to the Lease Term and shall terminate upon termination of this LEASE for whatever reason. b) Any such matters of a permanent nature extending beyond the Lease Term shall not be granted without the prior written approval of CITY. In any of the foregoing instances referred to in this Section, CITY shall be without expense therefor, and the cost and expense thereof shall be borne solely by LESSEE. c) At the expiration of the Lease Term (including any extended period) third-party improvements on the Leased Land other than portable equipment shall become the property of CITY without the payment of any compensation to LESSEE. 5.3 Easements. In order to provide for the orderly development of the Leased Land and adjacent lands, it may be necessary, desirable, or required that street, railroad, water, sewer, drainage, gas, power line, and other easements and dedications and similar rights be granted or dedicated over or within portions of the Leased Land. As additional consideration for this LEASE, CITY and LESSEE each shall, at the request of the other, join with each other in executing and delivering such documents from time to time and throughout the Lease Term as may be appropriate, necessary, or required by the several governmental agencies (including the City of Seward), public utilities, and other users or tenants of CITY land for the purpose of granting such easements and dedications; provided, however, that such easements and dedications and similar rights do not unreasonably interfere with LESSEE's operations. The costs of locating or relocating any public easements or restrictions of record including any relocation of public road, railroad, utility, or other easements shall be at the sole cost and expense of the party requesting the relocation. CITY shall not refuse reasonable requests for such relocations provided those relocations do not interfere with or inhibit the overall development of -- - -132- - - - - - CITY property or other public property. Any easements or rights of access granted to LESSEE by CITY need not be exclusive to LESSEE. ARTICLE 6-CONSTRUCTION BY LESSEE 6.1 Improvements on Leased Land. LESSEE shall have the right to erect, maintain, alter, remodel, reconstruct, rebuild, build, andior replace buildings and other improvements on the Leased Land, subject to the following conditions: a) The cost of any construction, reconstruction, demolition, or of any changes, alterations, or improvements, shall be borne and paid for by LESSEE. b) The Leased Land shall at all times be kept free of mechanic's and materialmen's liens. c) LESSEE shall provide CITY with a copy of all building plans and specifications and a site development plan or plans (based on a recent survey) for the Leased Land prior to commencement of construction. d) LESSEE is solely responsible for resurveying and locating improvements on the Leased Land in such manner not to violate building setback requirements or encroach into rights-of-ways or easements. On completion of any improvements, LESSEE shall provide CITY a copy of an as-built survey depicting the improvements as completed on the Leased Land. e) Any general contractor employed by LESSEE shall be appropriately bonded by use of performance and labor and material payment bonds in the customary form when cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). Copies of all such bonds shall be furnished to CITY prior to commencement of construction. If the cost of the work is less than FIFTY THOUSAND DOLLARS ($50,000), LESSEE shall provide CITY, if no performance and labor and material bonds are provided by LESSEE, any necessary assurances or guarantees that the contemplated work will be performed by the general contractor or by LESSEE. In the event that LESSEE elects to construct the facility with its own personnel and equipment, or the personnel and equipment of any corporation or person that is an "affiliate" of LESSEE as such term is defined in AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest, a performance bond shall be required when the cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS ($50,000). f) CITY may, as contemplated by Alaska Statutes, give notice of non-responsibility for any improvements constructed or effected by LESSEE on the Leased Land. g) LESSEE shall comply with all federal, state, and local statutes and regulations with respect to such construction, including, but not limited to, all applicable building,mechanical, and fire codes. 6.2 City Review of Construction. CITY shall have the right to review initial plans, including those supplied to CITY under Section 6.1 hereof, and any future changes or additions to LESSEE's facilities on the Leased Land, by reviewing the design thereof prior to the commencement of construction. CITY shall have the right to comment upon that design and to require LESSEE to make reasonable changes so as to avoid interference with public operations, but the exercise of these rights shall not imply any obligation to do so nor any obligation to do so in a particular way. LESSEE shall construct the facility in accordance with final design specifications approved by CITY. CITY's representatives may monitor the work and shall have access to the site at all reasonable times. LESSEE shall be solely responsible for completing all improvements according to LESSEE's plans and specifications and shall bear all risk, responsibility, and liability for properly surveying the Leased Land before construction and to place all improvements on the Leased Land without encroaching upon any land, easements, rights-of-way, or setback requirements. LESSEE shall obtain the usual and customary performance guarantees from its contractors, and CITY shall be named as an additional insured. ARTICLE 7 -RETURN OF LEASED LAND/SITE CONDITIONS 7.1 Return of Leased Land in Original Condition. Subject to the provisions of Article 11.1 herein,upon termination of this LEASE for any reason, LESSEE shall return the Leased Land to CITY in the same condition as at the commencement this LEASE, subject to normal, non-abusive use. The Leased Land shall be free of all Hazardous Materials and contamination arising out of or resulting from or occurring during LESSEE's operations or use of the Leased Land during this LEASE. ARTICLE 8 -FORCE MAJEURE In the event either LESSEE or CITY is delayed from performance of any of its obligations under this LEASE due to acts of nature, acts of the enemies of the United States of America, sabotage, blockade, insurrection, riot, epidemic, fire, flood, explosion, earthquake/tsunami, civil disturbance, or war, the time period wherein such performance is to occur shall be extended by that amount of time necessary to compensate for the delay. ARTICLE 9-LESSEE'S ACTS OF DEFAULT Each of the following shall be a "LESSEE Act of Default" under this LEASE and the terms "acts of default" and "default" shall mean, whenever they are used in this LEASE, any one or more of the following events: 13 4 -- - - 9.1 Failure by LESSEE to pay promptly when due, and in no event later than twenty (20) days from the due date thereof,the rent required to be paid under this LEASE. 9.2 Failure by LESSEE to comply with Section 4.1 of this LEASE. 9.3 Failure by LESSEE to observe, fulfill or perform any covenants, conditions, or agreements on its part to be observed or performed under this LEASE, other than payment of rent or compliance with Section 4.1, for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to LESSEE by CITY; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. 9.4 The making by LESSEE of an assignment for the benefit of creditors, the filing of a petition in bankruptcy by LESSEE,the adjudication of LESSEE as insolvent or bankrupt, the petition or application by LESSEE to any tribunal for any receiver or any trustee for itself or for any substantial part of its property; or the commencement of any proceeding relating to LESSEE under any bankruptcy, insolvency, reorganization, arrangement, or readjustment of debt law or statute or similar law or statute of any jurisdiction, whether now or hereafter in effect which shall remain undismissed for a period of six (6) months from the date of commencement thereof. 9.5 Violation by LESSEE of any laws or regulations of the United States, or of the State of Alaska, or any conditions of any permits issued by agencies of the City of Seward, the Kenai Peninsula Borough, the State of Alaska, or of the United States Government applicable to LESSEE's use of the Leased Land, pursuant to the regulations of such agencies, for a period of sixty (60) days after written notice specifying such violation has been given by the agency charged with the enforcement of such laws, regulations, or permits to LESSEE; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the violation is corrected. Furthermore, if LESSEE shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined provided such proceedings are diligently pursued; provided, however, that any such extension of time shall not be effective if the effect of the interim administrative or judicial action is to cause a stoppage, interruption, or threat to the activities of any person or entity other than those of LESSEE. 9.6 Failure of LESSEE to maintain its operations within the Leased Land or to keep the public rights of way clear. ARTICLE 10 -REMEDIES FOR DEFAULT BY LESSEE -135__ -- Whenever an act of default by LESSEE shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, CITY shall have the following rights and remedies all in addition to any rights and remedies that may be given to CITY by statute,common law,or otherwise: 10.1 CITY may distrain for rent due any of LESSEE's personal property which comes into CITY's possession. This remedy shall include the right of CITY to dispose of personal property distrained in any commercially reasonable manner. It shall be conclusively presumed that compliance with the procedures set forth in the Alaska Uniform Commercial Code (AS 45.29.601-.628) with respect to sale of property shall be a commercially reasonable disposal. 10.2 CITY may re-enter the Leased Land and take possession thereof and, except for any personal property of LESSEE which CITY has waived its right to distrain under Section 10.1 above, remove all personal property of LESSEE from the Leased Land. Such personal property may be stored in place or may be removed and stored in a public warehouse or elsewhere at the cost of LESSEE all without service of notice or resort to legal process, all of which LESSEE expressly waives. 10.3 In addition to the above, CITY may: a) Declare this LEASE terminated; b) Collect any and all rents due or to become due from subtenants or other occupants of the Leased Land; c) Recover from LESSEE, whether this LEASE be terminated or not, reasonable attorney's fees and all other expenses incurred by CITY by reason of the breach or default by LESSEE; d) Recover an amount to be due immediately on breach equal to the unpaid rent for the entire remaining term of this LEASE. e) Recover all damages incurred by CITY by reason of LESSEE's default or breach, including, but not limited to, the cost of recovering possession of the Leased Land, expenses of reletting, including costs of necessary renovation and alteration of the premises, reasonable attorney's fees, and any real estate commissions actually paid. f) Remove or require the removal of any improvements constructed without CITY approval or constructed contrary to site development plans approved by CITY and recover all costs and expense incurred by CITY to remove violating improvements. -- --136__ _ ------ 10.4 If LESSEE does not immediately surrender possession of the Leased Land after termination by CITY and upon demand by CITY, CITY may forthwith enter into and upon and repossess the Leased Land and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or breach of covenant. 10.5 No expiration or termination of this LEASE shall expire or terminate any liability or obligation to perform of LESSEE's which arose prior to the termination or expiration except insofar as otherwise agreed to in this LEASE. 10.6 Each right and remedy of CITY provided for in this LEASE shall be cumulative and shall be in addition to every other right or remedy provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by CITY of any one or more of the rights and remedies provided for in this LEASE or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by CITY of any or all other rights or remedies provided for in this LEASE or now or thereafter existing at law, or in equity or by statute or otherwise. 10.7 No delay or omission to exercise any right or power accruing following an act of default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. ARTICLE 11 -TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 11.1 Real Property Improvements. All improvements constructed by LESSEE or its predecessors on the Leased Land or on easements to or from the same, such as buildings, warehouses, conveyor systems, ditches, sewer lines, water lines, dikes or berms and similar improvements, shall become the property of CITY upon termination of this LEASE for any reason; provided, however, that CITY may require LESSEE to remove any improvements designated by CITY and without cost to CITY. 11.2 Personal Property. Any other provisions of this LEASE to the contrary notwithstanding, LESSEE, upon termination of this LEASE for any reason, may, but need not, promptly remove, in no event later than ninety (90) days from the termination of the LEASE, trade fixtures and equipment from the Leased Land provided that LESSEE shall repair any damages to the Leased Land caused by such removal. ARTICLE 12 -ASSIGNMENT OR SUBLEASE 12.1 Assignment of Lease or Subleasing. The parties recognize that this LEASE has been determined to be in the public interest by the City Council of CITY for the reasons set 137--- ------------- forth in the approving Resolution. The rights and duties created by the LEASE are personal to LESSEE and CITY has granted the LEASE in reliance upon the individual character and financial capability of LESSEE. Therefore, LESSEE shall not assign or sublease this LEASE without CITY's prior written consent, in CITY's sole discretion. 12.2 Assignment of Lease for Security. Notwithstanding Section 12.1 above, LESSEE may assign, encumber, or mortgage its interest in this LEASE or improvements on the Leased Land, by deed of trust or other security instrument, to an institutional lender ("Lender") for development of or operations on the Leased Land, provided that Lender shall be subject to all obligations of LESSEE under the terms of this LEASE upon foreclosure. CITY shall furnish Lender, at the address provided to CITY by Lender in writing, with notice of any default or breach of LESSEE under this LEASE. Lender shall have the right (without being required to do so and without thereby assuming the obligations of LESSEE under this LEASE) to make good such default or breach within thirty (30) days after written notice specifying such breach. Notwithstanding the provisions of Article 10 above, no "LESSEE Act of Default" shall exist until expiration of thirty (30) days after such notice is furnished to Lender; provided, a) If Lender, with respect to any default or breach other than a failure to make any required payment of rent or other money, shall undertake within thirty (30) days after notice to cure the default or breach and shall diligently and in good faith proceed to do so, CITY may not terminate this LEASE or relet the Leased Land unless Lender fails to cure the default or breach within a reasonable period of time thereafter;and b) If the default for which notice is given is a breach of Section 9.3, CITY shall not exercise any of the remedies afforded to it under Article 10 above so long as LESSEE or Lender remains in possession of the Leased Land and satisfies LESSEE's obligations under the terms of this LEASE. Upon foreclosure or other assertion of its security interest, Lender may further assign, transfer, or dispose of its interests, provided that any subsequent assignee, purchaser, or transferee shall remain bound by each and every term of this LEASE. 12.3 Assignment to Affiliate. Notwithstanding Section 12.1 above, LESSEE may assign this LEASE to an affiliate of LESSEE as that term is defined by AS 10.06.990(2) or Alaska limited liability company in which LESSEE maintains a substantial membership interest; provided, however, that LESSEE's full faith and credit shall remain obligated under this LEASE as though the assignment had not taken place. ARTICLE 13 -LESSEE'S DUTY TO DEFEND/INDEMNIFY --- 138 - -- - - -- LESSEE shall defend, indemnify, and hold harmless CITY, its officials, employees, agents, and contractors from any and all liability or claims for damages, including personal injuries, environmental damage, death and property damage arising out of or resulting from LESSEE's use of the Leased Land or the use of the Leased Land by LESSEE's sublessees, assignees, agents, contractors, or the public, except for damages arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. If any action or proceeding is brought against LESSEE by reason of any such occurrence, LESSEE shall notify CITY promptly in writing of such action or proceeding. ARTICLE 14-CITY'S DUTY TO DEFEND/INDEMNIFY CITY shall defend, indemnify and hold LESSEE harmless from any and all liability or claims for damages, including personal injuries, death, and property damage arising from the sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or contractors. ARTICLE 15-INSURANCE 15.1 Minimum Insurance Requirements. Prior to commencement of the Lease Term or LESSEE'S occupancy of the Leased Land, LESSEE shall procure and maintain, at LESSEE's sole cost and expense, comprehensive commercial general liability insurance with limits of liability of not less than TWO MILLION DOLLARS ($2,000,000) for all injuries and/or deaths resulting to any one person and TWO MILLION DOLLARS ($2,000,000) limit from any one occurrence. The comprehensive commercial general liability insurance shall include coverage for personal injury, bodily injury, and property damage or destruction. Coverage under such policies of insurance shall include collapse and underground property damage hazards. Contractual liability insurance coverage in the amount of not less than TWO MILLION DOLLARS ($2,000,000)is also required. LESSEE shall obtain owned and non-owned automobile liability insurance with limits of liability of not less than ONE MILLION DOLLARS ($1,000,000) per occurrence combined single limit for bodily injury and property damage. LESSEE shall also maintain ONE MILLION DOLLARS ($1,000,000)of Ship Repairers Liability Insurance including"hot work"coverage and pollution liability coverage. LESSEE shall also maintain workers' compensation insurance as required under Alaska law. The minimum amounts and types of insurance provided by LESSEE shall be subject to revision at the sole discretion of CITY in accordance with standard insurance practices, in order to provide continuously throughout the term of this LEASE and any extensions hereof, a level of protection consonant with good business practice and accepted standards in the industry. Such factors as changes in the type of or extent of use of the _----- ----13 9 Lease Land, increases in the cost of living, inflationary pressures, and other considerations, shall be utilized in assessing whether the minimum insurance requirements should be increased. CITY shall notify LESSEE of any required increase in insurance coverage. All insurance policies shall provide for thirty (30) days' notice of cancellation and/or material change to be sent to CITY at the address designated in ARTICLE 33 of this LEASE. All such policies shall be written by insurance companies legally authorized or licensed to do business in the State of Alaska, and acceptable to CITY (Best's Rating B+ or better). CITY shall be listed as an additional insured under all insurance policies. LESSEE shall furnish CITY, on forms approved by CITY, certificates evidencing that it has procured the insurance required herein prior to the occupancy of the Leased Land or operation by LESSEE. Insurance policy deductibles are subject to approval by CITY. Nothing herein contained shall prevent LESSEE or CITY from placing and maintaining at CITY's or LESSEE's own individual cost and expense, additional or other insurance as may be desired. The minimum insurance requirements under this LEASE shall not act to limit LESSEE's liability for any occurrence and shall not limit LESSEE's duty to defend and indemnify CITY for claims related to this LEASE or the Leased Land. 15.2 Subrogation Rights Waived. To the extent permitted by law, LESSEE hereby releases CITY, its elected and appointed officials, employees and volunteers, and others working on behalf of CITY from any and all liability or responsibility to LESSEE or anyone claiming through or under LESSEE by way of subrogation or otherwise, for any loss of any kind(including damage to property caused by fire or any other casualty), even if such loss shall have been caused by the fault or negligence of the CITY, its elected or appointed officials, employees or volunteers, or others working on behalf of the CITY. This provision shall be applicable and in full force and effect only with respect to loss or damage occurring during the time of LESSEE's occupancy or use (including LESSEE's occupancy or use prior to the Effective Date of this LEASE), and LESSEE's policies of insurance shall contain a clause or endorsement to the effect that such release shall not adversely affect or impair such policies or prejudice the right of LESSEE to recover thereunder except as against CITY (including its elected and appointed officials, employees and volunteers, and others working on behalf of CITY) during the time of LESSEE's occupancy or use. LESSEE agrees that its policies of insurance will include such a clause or endorsement. ARTICLE 16-CONDEMNATION If all or any part of the Leased Land is condemned for a public use by any government agency or other duly authorized entity, CITY and LESSEE shall each make a claim against the condemning or taking authority for the amount of any damage incurred by or done to them respectively as a result of the taking. Neither LESSEE nor CITY shall have any rights in or to any award made to the other by the condemning authority; provided, that in the event of a single 14 0 award to CITY which includes specific damages for loss of LESSEE's leasehold interest, CITY shall transmit to LESSEE the amount of such specific damages so found, if any. If part but not all of the Leased Land is condemned for public use, LESSEE shall make a good faith determination as to whether or not the taking of the part of the Leased Land designated for condemnation will prevent it from continuing to operate on the Leased Land. If LESSEE determines in good faith that the condemning of such part of the Leased Land will prevent it from continuing to operate on the Leased Land, LESSEE may notify CITY in writing to this effect,and this LEASE shall then be terminated for all purposes effective fifteen (15) days from the date LESSEE sends such notice to CITY, or at such other later date as LESSEE shall specify in its notice, and such termination shall be treated in the same manner as a termination at the expiration of the term of this LEASE. LESSEE shall, as a condition precedent to such termination,remove all encumbrances,debts, and liens to which the Leased Land is subject. If at the time of such partial taking for public use, LESSEE determines that such partial taking will not prevent it from continuing to operate, then LESSEE and CITY shall negotiate an equitable and partial abatement of the rent beginning to be effective on the actual date when LESSEE is effectively prevented from utilizing the condemned land. ARTICLE 17-ARBITRATION 17.1 Arbitration. a) Disputes between the parties with respect to the performance of this LEASE that cannot be resolved by the parties, shall be submitted to an independent arbitrator for a settlement pursuant to the provisions of the Alaska Uniform Arbitration Act (AS 09.43.010 et. seq.), as it now exists or may hereafter be amended from time to time, and judgment on the award may be entered in any Superior Court in the State of Alaska. Notwithstanding the foregoing, arbitration shall not be applicable to claims or disputes involving a requested remedy having a value of more than FIFTY THOUSAND DOLLARS ($50,000) (exclusive of interest and costs). All demands for arbitration and all answering statements thereto that include any claim must contain a statement that the total sum or value in controversy, as alleged by the party making such demand or answering statement, is not more than FIFTY THOUSAND DOLLARS ($50,000.) The arbitrator will not have jurisdiction, power, or authority to consider or make findings (except to deny jurisdiction) concerning any claim, counterclaim, dispute, or other matter in question where the amount in controversy of any such claim, counterclaim, dispute or matter is more than FIFTY THOUSAND DOLLARS ($50,000). The costs and expenses of arbitration shall be shared equally by the parties, and each party shall bear its own attorney's fees and costs. b) Arbitration procedures shall be applicable only to contract, negligence, and similar claims arising from or related to this LEASE, and shall not be used to 141 resolve or determine any claim based upon fraud, intentional misrepresentation, nor any claim based on conduct that is a felony crime in the State of Alaska. c) Written notice of requests for arbitration of disputes may be served by either party to this LEASE upon the other party. Arbitration of any dispute or claim shall be determined by a single arbitrator selected from a list of not less than five (5) arbitrators obtained from the presiding Superior Court Judge or other appropriate judicial officer in Anchorage,Alaska. The arbitrator shall be a person who (a)has not less than five (5) years legal experience in the State of Alaska prior to appointment; and (b) such legal experience includes substantial experience with long-term commercial real property transactions. Each party shall be provided with a copy of the list and shall be afforded a maximum of ten (10) working days to become familiar with the qualifications of the prospective arbitrators. The arbitrator shall be selected by each party, commencing with the party demanding the arbitration, striking one name from the list until only a single name remains. d) Arbitration hearings shall be conducted in Anchorage, Alaska or such other location as the parties may agree. Each party shall produce at the request of the other party, at least thirty (30) days in advance of such hearing, all documents to be submitted at the hearing and such other documents as are relevant to the issues or likely to lead to relevant information. e) In deciding the claim or dispute,the arbitrator shall follow applicable Alaska law, and the written decision shall be supported by substantial evidence in the record. Failure to apply Alaska law, or entry of a decision that is not based on substantial evidence in the record, shall be additional grounds for modifying or vacating an arbitration decision. ARTICLE 18- MAINTENANCE AND REPAIRS 18.1 Normal Maintenance. During the entire term of this LEASE and every extension hereof, if any, LESSEE shall, at LESSEE's sole cost, risk and expense, maintain the Leased Land, including any improvements placed thereon by LESSEE, in as good condition as received or constructed by LESSEE, subject to normal, non-abusive use. CITY, at CITY's sole option and expense, may, prior to the commencement of construction by LESSEE, perform maintenance and preventative work on the Leased Land, exclusive of improvements placed thereon by LESSEE, in order to prevent erosion, mitigate damage to plants and animals, or prepare the Leased Land for eventual development by LESSEE or others by grading, filling, or contouring the Leased Land. Any such work performed by CITY shall be at CITY's sole expense and risk unless LESSEE agrees, in advance and in writing,to share such expense and risk. LESSEE shall maintain in first class condition at all times all fire, pollution, and other protective equipment, if any are placed on Leased Land. 14 2 18.2 Safety Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE's maintenance responsibilities as they relate to public health or safety and LESSEE shall promptly within thirty (30) days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. If such deficiencies relate to the safety of LESSEE's operation such that the surrounding land and port facilities are exposed to risk, unnecessary potential hazards, or a risk to the public interest(as distinguished from a business risk), or if CITY is not satisfied with the proposed schedule of repairs either because of the delays therein or the scope of the repairs, then CITY may engage an independent engineering consultant well-versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perform such maintenance work. As soon as practicable following receipt of said engineer's determinations and recommendations, if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE's cost, risk, and expense. 18.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect the public facilities on adjacent land, it may submit the matter to arbitration;provided,however,that pending the decision of the arbitrator it shall fully comply with the maintenance requests. If an arbitration award should ultimately find that the repairs were not necessary then LESSEE may either deduct from future rental payments the cost of such repairs or be reimbursed therefor. In deciding whether repairs requested by CITY or required by an engineering report are necessary, the arbitration panel is to give primary consideration to the safety and welfare of the Seward port facilities and the citizens of Seward in light of the highest standards in the industry. If any facility or service provided by CITY to the Leased Land shall become inadequate due to changes in environmental control standards or should any facility require updating or improvement by reason of a change in LESSEE's use of the Leased Land or operations therefrom, LESSEE shall either construct such improvements at LESSEE's own cost or reimburse CITY for such work at the option of CITY. ARTICLE 19-ENVIRONMENTAL CONCERNS 19.1 Hazardous Materials. a) Condition of Site. LESSEE has had full opportunity to examine the site for the presence of any Hazardous Material and accepts the site in "as is" condition. LESSEE may elect, at LESSEE's sole cost, to conduct a baseline soils test prior to execution of this LEASE. -143 -- - -- - b) Release of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE releases CITY from any and all claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (including, without limitation, attorney's fees, court costs, litigation expenses, and consultant and expert fees) arising prior to, during, and after the term of this LEASE, and resulting from the use, keeping, storage, or disposal of Hazardous Material on the Leased Land by LESSEE or its predecessors in interest, or arising out of or resulting from LESSEE's operations at the Leased Land or the operations of its predecessors in interest at the Leased Land except for those claims arising out of CITY's sole negligence or intentional misconduct. This release includes, without limitation, any and all costs incurred due to any investigation of the Leased Land or any cleanup, removal, or restoration mandated by a federal, state, or local agency or political subdivision or by law or regulation. c) Use of Hazardous Materials on the Site. i) LESSEE shall not cause or permit any Hazardous Material to be brought upon,kept,or used in or about the Leased Land except for such Hazardous Material as is necessary to conduct LESSEE's authorized use of the Leased Land. ii) Any Hazardous Material permitted on the Leased Land as provided in this paragraph, and all containers therefor, shall be used, kept, stored, and disposed of in a manner that complies with all Environmental Laws or other laws or regulations applicable to such Hazardous Material. iii) LESSEE shall not discharge, leak, or emit, or permit to be discharged, leaked, or emitted, any material into the atmosphere, ground, ground water, sewer system, or any body of water, if such material (as reasonably determined by the City, or any governmental authority) does or may, pollute or contaminate the same, or may adversely affect the (a) health, welfare, or safety of persons, whether located on the Leased Land or elsewhere; or (b) condition, use, or enjoyment of the Leased Land or any other area or personal property. iv) LESSEE hereby agrees that it shall be fully liable for all costs and expenses related to the use, storage, and disposal of Hazardous Material kept or brought on the Leased Land by LESSEE, its authorized representatives and invitees, and LESSEE shall give immediate notice to CITY of any violation or potential violation of the provisions of this subparagraph. d) Indemnification of CITY. Any other provision of this LEASE to the contrary notwithstanding, LESSEE shall defend, indemnify, and hold CITY harmless from -14 4 - -- and against any claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (including, without limitation, attorney, consultant and expert fees, court costs, and litigation expenses) of whatever kind or nature, known or unknown, contingent or otherwise, arising out of or in any way related to: i) The presence, disposal, release, or threatened release of any such Hazardous Material which is on or from the Leased Land, soil, water, ground water, vegetation, buildings, personal property, persons, animals, or otherwise; ii) Any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to such Hazardous Material or any use of the Leased Land; iii) Any lawsuit brought or threatened, settlement reached, or government order relating to such Hazardous Material or any use of the Leased Land; and/or iv) Any violation of any laws applicable thereto; provided, however, that this Section 19.1(d) shall apply only if the acts giving rise to the claims, demands, penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses (1)occur prior to or during the term of this LEASE; and (2) arise, in whole or in part, from the use of, operations on, or activities on the Leased Land by LESSEE or LESSEE's predecessors in interest, employees, agents, invitees, contractors, subcontractors, authorized representatives, subtenants, or any other persons. The provisions of this subparagraph shall be in addition to any other obligations and liabilities LESSEE may have to CITY at law or equity and shall survive the transactions contemplated herein and shall survive the termination of this LEASE. e) Operator. For all purposes, LESSEE shall be deemed the operator of any facility on the Leased Land. 0 Hazardous Material Defined. As used in this LEASE, Hazardous Material is any substance which is toxic, ignitable, reactive, or corrosive or which is regulated by any Environmental Law. Hazardous Material includes any and all material or substances which are defined as industrial waste, hazardous waste, extremely hazardous waste, or a hazardous substance under any Environmental Law. Notwithstanding any statutory petroleum exclusion, for the purposes of this LEASE, the term Hazardous Material includes, without limitation, petroleum, including crude oil or any fraction thereof, petroleum soaked absorbent material, and other petroleum wastes. -145 ------ --- -- -- --- g) Environmental Law Defined. As used in this LEASE, Environmental Laws include any and all local, state, and federal ordinances, statutes, and regulations, as now in force or as may be amended from time to time,relating to the protection of human health and the environment, as well as any judgments, orders, injunctions, awards, decrees, covenants, conditions, or other restrictions or standards relating to same. Environmental Laws include, by way of example and not as a limitation of the generality of the foregoing, Alaska Statutes Title 46, the Resource Conservation and Recovery Act of 1976, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Clean Water Act, and the Superfund Amendments and Reauthorization Act of 1986. 19.2 Permits and Reporting. a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all permits or approvals required by any applicable law or regulation. Copies of all such permits shall be provided to CITY prior to LESSEE commencing work under this LEASE. LESSEE shall promptly make all reports to any federal, state, or local government or agency required by any permit or Environmental Law, including reports of any spill or discharge of Hazardous Material. The CITY, through the City Manager, may order LESSEE to immediately cease any operations or activities on the Leased Land if the same is being carried out without necessary permits, in violation of the terms of any permit or Environmental Law,or contrary to this LEASE. b) Correspondence With and Reports to Environmental Agencies. LESSEE shall immediately (the same or the next business day) provide CITY with copies of all correspondence and notice, including copies of all reports between LESSEE and any state, federal, or local government or agency regulating Hazardous Material which relates to LESSEE's operations on or use of the Leased Land. ARTICLE 20 -ESTOPPEL CERTIFICATES Either party shall at any time and from time to time upon not less than ten (10) days'prior written request by the other party, execute, acknowledge, and deliver to such party, or to its designee, a statement in writing certifying that this LEASE is unamended and in full force and effect (or, if there has been any amendment thereof, that the same is in full force and effect as amended and stating the amendment or amendments), that there are no defaults existing (or, if there is any claimed default, stating the nature and extent thereof), and stating the dates to which the rent and other charges have been paid in advance. ARTICLE 21 -CONDITIONS AND COVENANTS 146 --- - ----- All the provisions of this LEASE shall be construed to be "conditions" as well as "covenants," as though the words specifically expressing or imparting covenants and conditions were used in each separate provision. ARTICLE 22-NO WAIVER OF BREACH No failure by either CITY or LESSEE to insist upon the strict performance by the other of any term, covenant,or condition of this LEASE or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such terms, covenants, or conditions. No waiver of any breach shall affect or alter this LEASE, but each and every term, covenant, and condition of this LEASE shall continue in full force and effect with respect to any other then existing or subsequent breach. ARTICLE 23-TIME OF THE ESSENCE Time is of the essence of this LEASE and of each provision. ARTICLE 24 -COMPUTATION OF TIME The time in which any act provided by this LEASE is to be done by shall be computed by excluding the first day and including the last, unless the last day is a Saturday, Sunday, or a holiday,and then it is also excluded. ARTICLE 25 -SUCCESSORS IN INTEREST Each and all of the terms, covenants, and conditions in this LEASE shall inure to the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. ARTICLE 26-ENTIRE AGREEMENT This LEASE contains the entire agreement of the parties with respect to the matters covered by this LEASE,and no other agreement, statement,or promise made by any party which is not contained in this LEASE shall be binding or valid. ARTICLE 27- GOVERNING LAW This LEASE shall be governed by, construed, and enforced in accordance with the laws of the State of Alaska. The terms of this LEASE are subject in all respects to the Charter and Code of Ordinances of CITY in effect on the date of this LEASE, and as they may be hereafter amended,including,without limitation,Chapter 7.05 of the Seward City Code. ARTICLE 28-PARTIAL INVALIDITY 14'7--- If any provision of this LEASE is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired, or invalidated. ARTICLE 29-RELATIONSHIP OF PARTIES Nothing contained in this LEASE shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or of joint venture or of any association between CITY and LESSEE; and neither the method of computation of rent, nor any other provisions contained in this LEASE, nor any acts of the parties, shall be deemed to create any relationship between CITY and LESSEE other than the relationship of lessee and lessor. ARTICLE 30-INTERPRETATION The language in all parts of this LEASE shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the opportunity to seek assistance of counsel in drafting and reviewing this LEASE. ARTICLE 31 -CAPTIONS Captions of the articles, paragraphs, and subparagraphs of this LEASE are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions of this LEASE. ARTICLE 32 -AMENDMENT This LEASE is not subject to amendment except in writing executed by both parties hereto. ARTICLE 33 -NOTICES All notices, demands, or requests from one party to another shall be delivered in person or be sent by mail, certified or registered, postage prepaid, to the addresses stated in this Article and to such other persons and addresses as either party may designate. Notice by mail shall be deemed to have been given at the time of mailing. All notices, demands, and requests from LESSEE to CITY shall be given to CITY at the following address: City Manager CITY OF SEWARD PO Box 167 14 8 Seward,Alaska 99664 All notices, demands or requests from CITY to LESSEE shall be given to LESSEE at the following address: Raibow Fiberglass and Boat Repair, LLC PO Box 2891 Seward,Alaska 99664 Each party shall have the right, from time to time, to designate a different address by notice given in conformity with this Article. ARTICLE 34-FIRE PROTECTION LESSEE shall, at its sole cost, risk, and expense, provide fire detection and protection to its operations on the Leased Land and fire prevention to industry standards for risks to adjacent facilities such that those risks are minimized. LESSEE shall continue to provide and maintain industry accepted standards of fire protection such that the City of Seward's ISO rating is not degraded by reason of LESSEE'S operation. The parties agree that with the rapid expansion of technology in the field of fire prevention and control LESSEE's obligations hereunder may vary during the term of this LEASE and CITY may submit LESSEE's compliance with its obligation hereunder to arbitration not more frequently than once each five (5) years. --149 ------- ----- --------- IN WITNESS WHEREOF, the parties hereto have set their hands and seals the dates herein set forth. CITY: LESSEE: CITY OF SEWARD RAIBOW FIBERGLASS AND BOAT REPAIR,LLC _ Jim Hunt, City Manager Dave Phillips,President Date: Date?/ z / / ATTEST: Johanna Kinney, CMC City Clerk _._150-- ------ ---- --- --- STATE OF ALASKA ) )ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of 2015, by Jim Hunt, City Manager of the City of Seward, Alaska, on behalf of the City. Notary Public in and for Alaska My Commission Expires: STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) ..jZ The foregoing instrument was acknowledged before me this 4-11 day of --, r,i t; , 2015, by Dave Phillips who executed the foregoing document on behalf of Raibow Fibe lass and Boat Repair, LLC 111 l I I I 1 I I///// ZQ�?cF' oo 'G? L ♦ /6-z, NOTARY 1 P Notary Public in . ,d for Alask /�I�U��LIC 1'�2 My Commission Expires: y �8// p.OFAso •//l I l I!I I I N u��� 151 -- -- ------ -- Exhibit A PERSONAL GUARANTEE To induce the City of Seward, P.O. Box 167, Seward, AK 99664 ("City") to enter into a Lease Agreement with Raibow Fiberglass and Boat Repair, LLC, P.O. Box 2891, Seward, AK 99664 ("Raibow") effective July 1, 2015, the undersigned personally guarantees payment of all obligations of Raibow as described in the Lease Agreement. The Lease Agreement covers the following real property: Lot 4D, Block 7, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Kenai Peninsula Borough, Plat No. recorded in the Seward Recording District, Third Judicial District, State of Alaska, containing approximately 66,810 square feet, more or less. 1 agree to provide the City with written notification of any changes in my address, and acknowledge that any notice required to be given by the City will be effective if mailed to the address shown below or such changed address on file with the City. My guarantee is absolute and unconditional. Upon default of Raibow under the Lease Agreement, I agree to immediately become liable for Raibow obligations. The City need not seek performance, payment, and collection from Trust before seeking payment from me. If more than one person guarantees payment, I agree to be jointly and severally liable with all other guarantors for payment. Dated this j L day of J�� , 2015. Signed in my individual capacity as guarantor: Dave Phillips Raibow Fiberglass and Boat Repair, LLC PO Box 2891 Seward, AK 99664 - 15 2 -- - Exhibit J, ENVIRONMENTAL COMPLIANCE PLAN ones nd'�► 'ntegri RAIBOW FIBERGLASS &BOAT REPAIR, LLC PO Box 2891 Seward,Alaska 99664 . raibowboat @gmail.com To:City of Seward: Raibow Fiberglass and Boat Repair LLC., plans to and will comply with all federal, state and city of Seward environmental regulations that apply to its' operation of a storage and vessel repair facility on property leased from the city of Seward. Raibow Fiberglass will monitor storm water runoff into existing ditches and will maintain clean water runoff from leased site. �. Raibow Fiberglass has no immediate plans to store or use barrels of oil or fiberglass materials on leased property but will maintain a clean and orderly storage yard. Raibow Fiberglass will not store any fuel barrels on leased property. Raibow Fiberglass may do bottom painting on vessels in leased yard and will lay down appropriate ground cover while sanding and painting and dispose of it in compliance with city of Seward regulations. Any and all spills will be immediately cleaned up. All paint cans will be stored off site at Raibows' main yard and all empty buckets will be returned to Raibows main yard and disposed of properly. Raibow Fiberglass plans to continue to upgrade and add to its' leased property and will assure the city of Seward that the property will be maintained responsibly during the terms of the lease. 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".>,» (90})}N-73t. rr Cnwemm10mra Cancer a,/an. A�sre/. O•@ Ot/it/9S SCAM rulth' SAM WIC Mo!G: 11-0 *02009 NO, 14-43,192 99.8 ARE R 2015-OR 1 � O 44"14 . i PLANNING OFFI AGREEMENT FOR FACILITY USE PERMIT City of Seward Seward Marine Industrialcenter THIS AGREEMENT is made and entered into thisday of February, 2015 , by and between the City of Seward, Alaska ("City") and Raibow Fiberglass and Boat Repair, LLC ("Permittee"). WHEREAS, the City of Seward operates certain facilities including a boatyard at the Seward Marine Industrial Center (SMIC).NOW, THEREFORE, the parties agree as follows: A TERM This permit shall become effective on the 4th day of February, 2015, and shall expire when any of the insurance policies required by this permit are cancelled or have lapsed for any reason or one year, whichever comes first. Expiration or termination of the Permittee's authority to use the marine terminal shall not affect the parties' continuing obligations under this permit. B NOTICES Any notice provided for herein shall be given in writing and transmitted by personal delivery or prepaid first class registered or certified mail to the parties at the following addresses: City: Harbormaster City of Seward PO Box 167 Seward, Alaska 99664 Permittee: Raibow Fiberglass and Boat Repair, LLC PO Box 2891 Seward, AK 99664 Notice sent by mail shall be considered given forty-eight (48) hours after mailing. C RESPONSIBILITIES OF CITY During the term of this permit, the City Shall: 1 Designate areas consistent with Port operation in which the Permittee may place and store vessels and equipment related to activities at the Port; and 2. Reasonably provide for the removal of snow and ice from the storage yard. 157 D RESPONSIBILITIES OF PERMITTEE During the term of this permit, the Permittee: 1 May leave its equipment or vehicles or its employees' vessels only in those areas designated by the Harbormaster for such purposes. The Permittee assumes the risk for any damage that may be sustained by such equipment or vessels at the Port except for that caused by the City's own negligence. 2 Shall have absolute control of the responsibility for the actions of its employees. 3. Shall be responsible as agent for vessels that are within its care, custody, and control. 4. Shall assume all responsibility for any environmental damage to City of Seward property or surrounding coastal or inland waterways caused by Permittee's activities or occupancy. 5. Pay rent at the rate of$676.47 per month plus tax. E NONDISCRIMINATION In performing its duties under this permit, the Permittee may not discriminate against any person on the basis of race, creed, color, religion, national origin, age, sex, marital status, physical or mental handicap. F NON-WAIVER The failure of the City at any time to enforce a provision of this permit shall in no way constitute a waiver of the provision, nor in any way affect the validity of this permit or any part hereof, or the right of the City thereafter to enforce each and every provision hereof. G ASSIGNMENTS There shall be no assignments of this permit to another person. H AMENDMENT The parties may amend this contract only by written agreement, which shall be attached as an appendix hereto. JURISDICTION; CHOICE OF LAW Any civil action arising from this permit shall be brought in the Superior Court for the Third Judicial District of the State of Alaska at Anchorage. The law of the State of Alaska shall govern the rights and obligations of the parties under this permit. J SEVERABILITY Any provision of this permit decreed invalid by a court of competent jurisdiction shall not invalidate the remaining provisions of the permit. -2- 158 ---- - - K INTEGRATION This instrument and all appendices and amendments hereto embody the entire agreement of the parties. There are not promises, terms, conditions or obligations other than those contained herein. This permit shall supersede all previous communications, representation or agreements, either oral or written, between the parties. L HOLD HARMLESS. To the fullest extent permitted by law, the Permittee agrees to defend, pay on behalf of, indemnify, and hold harmless the City of Seward, its elected and appointed officials, employees and volunteers and others working on behalf of the City of Seward against any and all claims, demands, suits, or loss, including all costs connected therewith, and for any damages which may be asserted, claimed or recovered against or from the City of Seward, its elected and appointed officials, employees, volunteers or others working on behalf of the City of Seward by reason of personal injury, including bodily injury or death and/or property damage, including loss of use thereof, which arises out of or is in any way connected or associated with this contract. M RISK OF LOSS The Permittee agrees that any equipment cargo, vehicle, or other material of any kind that is stored or placed at the Port is so stored and placed at the sole risk of the Permittee. In the event that any such equipment, cargo, vehicles or other materials is damaged or destroyed by any cause other than the City's own negligence, the Permittee shall not seek compensation or restitution of any kind from the City. N PERMIT ADMINISTRATION The Harbormaster shall administer this permit on behalf of the City. O TERMINATION Either the City of the Permittee may terminate this permit at any time for any reason by notifying the other party in writing at least twenty (20) days before the date upon which such termination is to be effective. Neither party shall be liable to the other under this permit after the effective date of termination. P DISPUTES In the event of a dispute between the parties under this permit, the Harbormaster shall reduce his position to a written decision and serve a copy thereof upon the Permittee. The Permittee may appeal the decision by written request for an administrative hearing to the City Clerk within seven (7) days after receiving the Harbormaster's decision. The administrative hearing procedures are outlined in Seward City Code section 7.10.900. While the appeal is pending, the Permittee shall abide by the decision of the Harbormaster. The decision of the City Manager shall be final. Q INSURANCE 1. During the term of this permit, the Permittee shall maintain in good standing insurance described in Subsection 2 of this Section. Prior to its performance pursuant to this permit, the Permittee shall furnish the Harbormaster a certificate of insurance in accordance with Subsection 2 of this Section before work can commence. This coverage shall be primary to the Additional Insured's, and not contributing with any other insurance or similar protection available to the -3- - - 159 Additional Insured's, whether other available coverage be primary, contributing or excess. 2. The Permittee shall obtain: a. General Commercial Liability insurance in an amount not less than $1,000,000 for any one person and not less than $1,000,000 for any one accident of occurrence. b. Workers Compensation Insurance: The Contractor shall procure and maintain during the life of this contract, Workers Compensation Insurance, including Employers' Liability Coverage, in accordance with all applicable statutes of the State of Alaska. c. Property damage liability, which shall include any property whether or not in the care, custody or control of the Permittee, in an amount of not less than $1,000,000 because of any on accident. d. Permittee shall procure and maintain during the life of this agreement, Motor Vehicle Liability Insurance, including no-fault coverage with limits of liability not less than $1,000,000 per occurrence combined with single limit Bodily Injury and Property Damage. 3. The insurance obtained pursuant to this Section shall name the City as an additional insured, and provide for written notice of any termination, cancellation, or expiration of the insurance to be delivered to the Harbormaster no less than twenty (20) days before the effective date thereof. R FIRE PREVENTION. The Permittee shall keep fire lanes clear and maintain fire control equipment in a readily accessible location. S BREACH AND REMEDIES. A violation of any provision of this permit, and the failure to remedy the same within forty-eight (48) hours after written notice to Permittee of the violations, shall constitute grounds for immediate termination of this permit. T. PARCEL OF LAND. The parties agree to rent Parcel C as revised (approximately 170 ft. by 393 ft.) on February 3, 2015. -4- 160 IN WITNESS WHEREOF, the parties have executed this permit on the date first Hereinabove written. 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M/tr v7M/lR 1040 1'.101, 001,n IMC TA IMJ /1-05 sumo AOr wawa *pa RC I.SmS-AVr I • I I Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2015-075 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,AUTHORIZING THE CITY'S$2,826,080 SHARE OF MATCHING FUNDS FOR THE A,B, C, S-FLOAT REPLACEMENT PROJECT AT THE SEWARD SMALL BOAT HARBOR, AND THE STATE'S MATCHING SHARE OF $2,684,000, AND APPROPRIATING FUNDS WHEREAS,the City of Seward hired URS Engineers to inspect the southwest portion of the original small boat harbor in October 2010; and WHEREAS,the report written in January 2011 found that the docks that were constructed in the 1960's are beyond their service life; and WHEREAS,the report recommended that the replacement of A,B,C,and S Float should be the harbor's top priority; and WHEREAS,the City developed a scope of work with the assistance of R&M Consultants, Inc. and advertised a competitive bid package according to SCC 6.10.210 and SCC 6.10.215; and WHEREAS, five bids were received by the required deadline of 3:30 p.m. June 16, 2015; and WHEREAS, the City and R & M Consultants, Inc. reviewed all bids and concluded Turnagain Marine Construction was the lowest,most qualified and responsive bidder with a base bid amount of$4,317,500,Alternate 1 bid amount of$383,100 and Alternate 2 bid amount of$755,800; and WHEREAS, the City has received a matching grant offer from the Alaska Department of Transportation Harbor Facility Grant Program in the amount of$2,684,000 which was accepted by the City Council in Resolution 2015-072 approved on August 10, 2015; and WHEREAS,the City's match of$2,826,080 will come from the Harbor Maintenance Repair and Replacement Fund and Commercial Passenger Vessel Tax Funds. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council hereby authorizes funding from the Harbor Maintenance Repair and Replacement Fund,Harbor Enterprise Fund,and Commercial Passenger Vessel Tax Funds in the amount of$2,826,080, to complete the Harbor Infrastructure Replacement Project to include the primary scope of work in addition to Additive Alternate No. 1 and Additive Alternate No. 2. 163 CITY OF SEWARD, ALASKA RESOLUTION 2015-075 Section 2. Funding in the total amount of$5,510,080 is hereby appropriated as follows: 1) $2,684,000 from State grant fund account no. 11371-0000-5922 to 11371-0000-8101; 2) $1,048,401 from the Harbor Major Repair and Replacement Fund Undesignated Reserves account no. 11002-0000-3400 to 11370-0000-8101; 3) $53,680 from the Harbor Enterprise Fund Undesignated Reserves account no. 11000-0000-3400 to 11370-0000-8101;4)$597,360 from Fund 11103 CPV Undesignated Reserves account no. 11103-0000-3400 to 11372-0000-8101; and 5) $1,126,639 from Fund 11113 CPV Undesignated Reserves account no. 11113-0000-3400 to 11373- 0000-8101. Section 3. In the event any funding appropriated for this project is required to be reimbursed, annual appropriations for a period not to exceed ten (10) years will come from the Harbor Major Repair and Replacement Fund (including annual Capital Repair& Replacement Fees estimated at $65,000 per year)with the balance to come from the Harbor Enterprise Fund Undesignated Reserves. 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 24th day of August, 2015. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 164 Agenda Statement joc SF1. Meeting Date: August 24, 2015 To: City Council 4:Qry��'' 44ASKP Through: Jim Hunt, City Manage�,jj From: Norman Regis, Harbormaster Agenda Item: Appropriate City funds and State grant funds for the B, C, S, and A-Float replacement project. BACKGROUND & JUSTIFICATION: An October 2010 inspection of the Seward Small Boat Harbor included a visual inspection of the facilities in the southwest harbor including approach trestles,gangways,and floating docks A,B,C, D, G and S Floats as well as the south harbor boat launch ramp. The Final Inspection Report issued in January 2011 states, "The floating docks in this section of the harbor were constructed in the 1960's and are at or beyond their service life and should be replaced. " The report went on to recommend that A, B, C, D and S-Float be replaced. D-Float was replaced in 2013 and 2014. In resolution 2014-057 Council approved the City Manager to submit a Municipal Harbor Facility Grant Application for the replacement of B, C and S-float. In October 2014 DOT reported that the City's grant application scored the highest compared to other harbors. The funds approved were $2,684,000. On June 30, 2015,the Governor signed the 2016 Budget in which the City will receive these funds. In Resolution 2015-072 Council approved accepting grant funds in the amount of$2,684,000 and executing a grant agreement with the State of Alaska Department of Transportation,Harbor Facility Grant Program The City's portion of the matching grant will come from the Harbor Maintenance Repair and Replacement Fund, the Harbor Enterprise Fund, and Commercial Passenger Vessel Tax (CPV) funds. In the event of any of the $1,723,999 funding of CPV monies is required to be reimbursed, annual repayment is proposed to come from the approximately$65,000 Capital repair and Replacement fees (Harbor MRRF) and additional funding of approximately $107,400 will come from Harbor Enterprise Fund Undesignated Reserves, likely necessitating a moorage rate increase of approximately 6.6%, or a combination of rate increase and cost cuts.. INTENT: Appropriate funds from the State of Alaska Municipal Harbor Facility Grant,Harbor Maintenance Repair and Replacement Fund, Capital Repair and Replacement fund and CPV funds 165 CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): Create a thriving port of 1. Seward through harbor improvements, infrastructure expansion, and X implementation of management plans. (page 23) 2 Strategic Plan (document source here): 2003 Small Boat Harbor Planning and Development Guide. X 3. Other (list): Inspection Report January 2011 X FISCAL NOTE: Funding will be paid from a matching grant $2,684,000 from the Alaska Department of Transportation, Harbor Facility Grant Program, $1,048,401 from Harbor Maintenance Repair and Replacement Fund,$53,680 from the Harbor Fund,and$1,723,999 from CPV funds.An additional fee (ICAP Indirect Cost Allocation Plan) for($53,680) was added by the State for administration costs, which is to be paid by the Harbor Fund (included in the figures above). This appropriation will exhaust the remaining funds from the Harbor MRRF.These figures do not include contingency funds. Approved by Finance Department: jG, ATTORNEY REVIEW: Yes No X N/A RECOMMENDATION: Council support Resolution 2015- �� 9 appropriating funds in the total amount of$5,510,080 to replace B, C, S, and A-Floats in the Seward Small Boat Harbor. 166 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT WITH THE ALASKA DEPARTMENT OF TRANSPORTATION HARBOR FACILITY GRANT PROGRAM FOR $2,680,000 FOR THE B, C, S, AND A-FLOAT REPLACEMENT PROJECT AT THE SEWARD SMALL BOAT HARBOR WHEREAS,the City of Seward hired URS Engineers to inspect the southwest portion of the original small boat harbor in October 2010; and WHEREAS,the report written in January 2011 found that the docks that were constructed in the 1960's are beyond their service life; and WHEREAS,the report recommended that the replacement of B,C,S and A-Float should be the harbor's top priority; and WHEREAS, the city filed an application with the Alaska Department of Transportation Harbor Facility Grant Program for a one-time Tier I 50/50 matching grant; and WHEREAS, the city has received a Tier One matching grant offer from the Alaska Department of Transportation Harbor Facility Grant Program in the amount of$2,680,000. 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 accept grant funding and execute the grant agreement with the State of Alaska Department of Transportation Harbor Facility Grant Program, in substantially the form as presented at this meeting. Section 2. Funding in the amount of $2,684,000 is hereby accepted into the Harbor Infrastructure Replacement Project State Grant Revenue account no. 11371-0000-5922. Section 3. The City Council authorizes city matching funds in the amount of$2,772,400 towards the city's portion of this project, to include the primary scope of work in addition to Additive Alternate No. I and Additive Alternate No. 2, which will be brought before council at the next meeting. Section 4. This resolution shall take effect immediately upon its adoption. 167 CITY OF SEWARD,ALASKA RESOLUTION 2015-072 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 10th day of August 2015. THE CITY OF SEWARD, ALASKA (?f2/Za i Zs can Bardarson, Mayor AYES: Keil, Casagranda, Terry, Squires, Butts, Darling, Bardarson NOES: None ABSENT: None ABSTAIN: None ATTEST: << _eti ' ohanna fey, CMC ity Clerk (City Seal) .•�y of .000P-Poi; • ,A • : e e •.(l . F of 4/% ' +aa attt p e tt• 168 Agenda Statement 0.CVS 0F SFh. Meeting Date: August 10, 2015 • To: City Council :v LASK Through: City Manager Jim Hun From: Harbormaster Norman Regis Agenda Item: Authorizing the City Manager to enter into a grant agreement with the Municipal Harbor Facility Grant Program. BACKGROUND &JUSTIFICATION: An October 2010 inspection of the Seward Small Boat Harbor included a visual inspection of the facilities in the southwest harbor including approach trestles,gangways,and floating docks A,B,C, D,G and S Floats as well as the south harbor boat launch ramp. The Final Inspection Report issued in January 2011 states, "The floating docks in this section of the harbor were constructed in the 1960's and are at or beyond their service life and should be replaced. The report went on to recommend that A, B, C, D and S-Float be replaced. D-Float was replaced in 2013 and 2014" In resolution 2014-057 Council approved the City Manager to submit a Municipal Harbor Facility Grant Application for the replacement of B, C and S-float. In October 2014 DOT reported that the City's grant application scored the highest compared to other harbors. The funds approved were $2,684,000.On June 30th 2015,the Governor signed the 2016 Budget in which the City will receive these funds. INTENT: Accept Grant funding in the amount of$2,680,000 and execute a grant agreement with the State of Alaska Department of Transportation, Harbor Facility Grant Program. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): Create a thriving port of 1. Seward through harbor improvements, infrastructure expansion. and X implementation of management plans. (page 23) 2 Strategic Plan (document source here): 2003 Small Boat Harbor X Planning and Development Guide. 3. Other(list): Inspection Report January 2011 X FISCAL NOTE: Half of the cost of the construction work will be paid from a matching grant $2,680,000 from the Alaska Department of Transportation.The City's matching funds will be necessary to complete this project and will be brought before council in a separate resolution. 169 Approved by Finance Department: J2 46ace„,„? ATTORNEY REVIEW: Yes No X RECOMMENDATION: II- Council support Resolution 2015- authorizing the City Manager accept grant funding and execute a grant agreement with the State of Alaska Department of Transportation Municipal Harbor Facility grant Program 170 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2014-057 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO SUBMIT A MUNICIPAL HARBOR FACILITY GRANT APPLICATION TO THE STATE OF ALASKA, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES IN THE AMOUNT OF 52.684 MILLION FOR THE REPLACEMENT OF B,C,AND S FLOATS IN THE SEWARD HARBOR WHEREAS, the State of Alaska, Department of Transportation and Public Facilities administers the Municipal Harbor Facility Grant Program;and WHEREAS, the City of Seward owns and maintains the Seward Harbor and is eligible for a Municipal Harbor Facility grant;and WHEREAS,B, C,and S floats were constructed in the 1960's and they have reached the end of their useful lives;and WHEREAS, the City of Seward has the required 50% in local matching funds for construction of the B, C, and S Float Replacement Project per the Harbor Facility Grant program;and WHEREAS, the City of Seward is capable of completing the B, C, and S Float Replacement Project within eighteen(18)months after award of a Harbor Facility Grant; and WHEREAS,the Seward Small Boat Harbor is critical to the City of Seward. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA: Section 1. The City Manager is authorized to submit a proposal to the Department of Transportation and Public Facilities for the replacement of B, C, and S Floats in the amount of $2.684 Million. Section 2. The City of Seward supports the project entitled B, C, and S Float Replacement Project and agrees, subject to available Alaska Legislative funding and selection by DOT&PF,to enter into a grant agreement with the State of Alaska, Department of Transportation and Public Facilities for a Harbor Facility Grant. Section 3. Subject to available Alaska Legislature funding and selection by the Department of Transportation and Public Facilities, the City of Seward will enter into a grant 171 CITY OF SEWARD,ALASKA RESOLUTION 2014-057 agreement with the State of Alaska Department of Transportation and Public Facilities for a SY2016 Municipal Harbor Facility Grant. Section 4. The Seward City Council confirms its intent to utilize internal City funds to match grant funds for this project. Section 5. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 14th day of July 2014. THE CITY OF SEWARD,ALASKA an Bardarson,Mayor j AYES: Keil,Casagranda,Terry, Squires, Darling, Bardarson NOES: None ABSENT: Butts ABSTAIN: None ATTEST: J i anna ,f27 MC ity Clerk (City Seal) ,••°',,,"'` + -r- F�9 r • SEAL • y.- • . • �•.�j titi.;;YE 1,'►°,fe' 'Q,; F • 172 Agenda Statement r 0ffSF�w Meeting Date: July 14, 2014 v� ►-:—�- To: City Council ° Through: City Manager Jim Hunt From: Mack Funk, Harbormaster Agenda Item: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO SUBMIT A MUNICIPAL HARBOR FACILITY GRANT APPLICATION TO THE STATE OF ALASKA, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES IN THE AMOUNT OF $2.684 MILLION FOR THE REPLACEMENT OF B,C,AND S FLOATS IN THE SEWARD HARBOR BACKGROUND &JUSTIFICATION: Project Summary Now is the time to replace the remaining docks in the southwesterly corner of the Small Boat Harbor. The administration's recommendations are based on the 2011 detailed engineering report as modified by experience and funding limitations. On or before August 1, 2014 a grant application will be submitted to the State of Alaska Department of Transportation and Public Facilities' (DOT&PF) Municipal Harbor Facility Grant program. If successful, the state funds for construction would be available in mid-2015. In order to be awarded a grant, the City must identify the local matching funds now. Per the attached engineer's drawing,the scope of the project is proposed as follows: 1)Replace C dock in place. 2)Replace B dock in place. 3)Remove fingers from the north side of A dock using harbor labor. 4) Remove B dock to be rennovated and reinstalled at the S float location, for side tie, linear moorage. 5) Renovate the relocated B dock to include additional floatation. Install bullrails across former finger float access and provide water service and fire protection. Electrical service may be included as an additive alternate. 6) Replace trestle and gangway at S dock. 7)Drive new pilings B,C, and S docks. 8) At the top of B dock, reuse the nearly new, 100-foot, fully compliant with Americans with Disability Act(ADA)aluminum gangway set aside during the D dock project. 9) In order to accommodate the ADA gangway, reduce the length of the B dock trestle and tie the new trestle in at Saltwater Safari.. 10) Replace G dock(headwalk)between B & D docks. DOT Grant Program The Municipal Harbor Facility Grant Program is managed by DOT&PF. The program provides 50/50 matching funds to eligible applicants. The program was created in 2006, but not funded until 2007. The legislature supplied funding in subsequent years (but not in 2009). The 55 173 money can only be used for construction ready projects, not for planning or engineering. This grant program is funded on an annual basis at the discretion of the Alaska Legislature and consists of two tiers, Tier I and II. This application will be submitted in the Tier I category. The first tier has priority and consists of major maintenance and repair of a harbor facility that was previously owned by the state and now is municipally or regional housing authority owned. A harbor facility may only receive one Tier I grant regardless if it is for all or only a portion of that harbor facility. The boundaries of a Tier I harbor facility will be based on the department's 1995 Alaska Harbor Directory or as determined by the department. Once a Tier I eligible harbor facility receives a Tier I grant, the status of that harbor facility changes from Tier I to Tier II henceforth. After all eligible Tier I projects have been selected,the department will consider Tier II projects. With State revenues projected to decline over the next few years, funding for the municipal Harbor Facility Grant Program will be a bigger challenge for the Legislature,therefore the Administration recommends getting our application in soon before the fund is depleted. The City of Seward has applied twice for these grants before (both times as Tier II) and was successful once. This program paid for one-half of the D Float Replacement Project. Project Need Statement This project will replace docks that are almost fifty years old. This project has been included in the City's Capital Improvement Plan since 2009 (see attached Harbor Five-Year CIP). The 2011 report (see attached photos) recommended a four-phase approach to the dock replacement problem. During 2013-14 the City replaced D Float-- the first phase of the recommended work. The remaining docks are unsafe. The floating docks are slowly sinking- the freeboard distance from the deck to the water, averages about half of a new dock (approximately 20 inches). The current docks do not float level- they are twisting, bending and listing. The deck height above the water varies widely from 5 inches to 15 inches. The connecting hardware between the main walkway and the finger floats is rusting; the harbor has installed heavy rubber belt material to try to strengthen and cushion the connection between the two dock components. Still, many of the walking surfaces on the docks are not very stable. The wooden timbers are rotting, Customers have installed outdoor carpeting that has becomve very unattractive. A 2011 windstorm caused a broken piling (see attached damage report). This project will replace the old, creosote treated pilings with fewer and stronger galvanized steel pilings. The new gangway will be less than half the slope angle of the current gangway and it will be fully ADA compliant. Replacing the old docks is the best way to solve these safety and environmental issues and improve the economic viability of the Seward Small Boat Harbor. The engineer's report recommended that Phase Two should be S Float Replacement, Phase Three should be Boat Ramp Improvements, and Phase Four should be A, B, C, and G Float Replacement. The recommended approach would complete Phase Two and most of Phase Four. It appears that Phase Three, the South Boat Ramp Improvements can be partially funded by another grant opportunity, so postponement of that phase is recommended. Another modification to the 2011 engineer's recommendations is intended to save money by renovating and reusing B float in place of S float. Currently, the spacing between B and C floats is too narrow. In order to provide a safer facility, the new float layout will have fewer small slips because one half of A float and all of S float will no longer have stalls,but only linear moorage. Plan to Fund, Construct,and Maintain the New Docks In the fall of 2014, after the grant application has been evaluated and it appears that state funding is likely to be secured, the City will select and hire an engineer to finalize the design of the new docks by April 15, 2015. (One preparatory step has already been completed. The 5y 174 asbestos cement board was professionally removed from these docks in January 2013). After design, the next step will be to execute a construction contract with the goal of installing the new docks no later than April 15, 2016. The City will be regularly evaluating progress to ensure that the project is completed on time and within budget. Keeping the nearly fifty-year old docks functional is getting to be a greater and greater challenge. Replacing the docks will reduce maintenance costs (estimated at $20,000 per year) and minimize the possibility of an injury claim caused by an unsafe condition (estimated cost factor of$10,000 per year). This project's successful completion will mean that within the last ten years every quadrant of the harbor has new infrastructure. INTENT: To authorize the grant application to the state Municipal Harbor Facility Grant Program in the amount of$2.684 Million. CONSISTENCY CHECKLIST: Yes No N/A 2020 Seward Comprehensive Plan (page 23): Create a thriving port of 1. Seward through harbor improvements,infrastructure expansion, and X implementation of management plans. 2 City of Seward Strategic Plan (page 7): Complete the renovation of the Small Boat Harbor X 3. Other: FISCAL NOTE: The Administration's goal is to purchase and install the new docks without raising moorage rates(beyond the annual cost of living adjustments). The Harbor Enterprise Fund currently has more than $6 Million in long term debt. Annual harbor debt service is approximately$732,086. As you may recall, in 2009, the Harbor did not meet its revenue coverage ratios as required by bond covenants. Since the dock cannot generate enough income to support the debt service for another revenue bond, the Administration's recommended plan is to use borrowed funds from other City Funds. The final details of the loans can be worked out at a future date(by mid-2015). Now, the Council's commitment to finance the local match is what is required. Approved by Finance Department: j� 1eJ ATTORNEY REVIEW: Yes No X RECOMMENDATION: Council approve Resolution 2014-" authorizing the City Manager to apply to the state Harbor Matching Grant program for$2.684 Million. 56- 175 DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES i-s r�a Harbor Facility Grant Program Grant Agreement Name of Harbor Facility Grant Agreement Number Type of Harbor Facility Grant Seward Small Boat Harbor 16-HG-001 Tier I Project Title Amount of State Grant Amount of Matching Municipal Funds Seward Harbor B,C, S Dock Replacement $2,684,000 $2,684,000 Project Grantee Contact Department Program Manager Municipality Name City of Seward Michael Lukshin, P.E. Grantee Contact Person Title/Grant Officer James Hunt,City Manager State Port and Harbor Engineer Street/PO Box Street/PO Box P.O.Box 167 P. O. Box 112500 City/State/Zip City/State/Zip Seward,AK 99664 Juneau,AK 99811-2500 Phone 1 Fax Phone Fax 224-4046 224-4038 465-3979 I 465-2460 AGREEMENT The Department of Transportation and Public Facilities("Department")and City of Seward("Grantee")agree as follows: Section 1.The Department will distribute Harbor Facility(ref:AS 29.60.800 et seq)grant monies to Grantee for performance of approved project work under this Agreement. The amount and timing of grant distribution is conditioned upon Grantee's payment of 50% matching funds and documented proof of authorized expenses incurred. In no event shall the distribution exceed$2,684,000. Section 11.The Grantee shall comply with all terms and perform all work as outlined in this Agreement. Section III. Grantee's work under this Agreement is scheduled to begin in fall of 2015 and shall be completed no later than March 31,2017. Section IV.This Agreement consists of this page,grantee's original application package,and the following: APPENDICES ATTACHMENTS Appendix A: Standard Provisions Attachment 1: Scope of Work Appendix B: Definitions 1.Project Name and Description Appendix C: Other State Laws and Regulations 2.Project Budget Appendix D: Insurance 3. Project Narrative Appendix E: Audit Compliance 4.Project Management& Reporting Appendix F: Site Control Attachment 2: Payment Method Appendix G: State Fire Marshall Review Attachment 3: Forms Packet a. Financial&Progress Report b. Sample Amendment c. Authorized Signatures Form AMENDMENTS:Any fully executed and mutually agreed upon amendments to this Agreement Grantee Department Signature Signature I Printed Name and Title Printed Name and Title Tames Hunt,City Manager Michael Lukshin,P.E., State Ports and Harbors Engineer Sate Date -- — 176 — -- - Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-076 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONSTRUCTION CONTRACT WITH TURNAGAIN MARINE CONSTRUCTION IN AN AMOUNT NOT TO EXCEED$5,456,400 FOR THE A,B,C,S-FLOAT REPLACEMENT PROJECT AT THE SEWARD SMALL BOAT HARBOR WHEREAS,the City of Seward hired URS Engineers to inspect the southwest portion of the original small boat harbor in October 2010; and WHEREAS,the report written in January 2011 found that the docks that were constructed in the 1960's are beyond their service life; and WHEREAS,the report recommended that the replacement of A,B,C,and S Float should be the harbor's top priority; and WHEREAS, the Council approved in resolution 2015-072 to enter into a grant agreement with the State of Alaska Department of Transportation Harbor Facility Matching Grant program in the amount of$2,680,000; and WHEREAS,the City developed a scope of work with the assistance of R&M Consultants, Inc. and advertised a competitive bid package according to SCC 6.10.210 and SCC 6.10.215; and WHEREAS, five bids were received by the required deadline of 3:30 p.m. June 16, 2015; and WHEREAS, the City and R & M Consultants, Inc. reviewed all bids and concluded Turnagain Marine Construction was the lowest,most qualified and responsive bidder with a base bid amount of$4,317,500,Alternate 1 bid amount of$383,100 and Alternate 2 bid amount of$755,800. 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 $5,456,400 with Turnagain Marine Construction, including the Base Bid, Alternate 1 and Alternate 2 in substantially the form as attached hereto,for the replacement of A,B,C and S Float at the Seward Small Boat Harbor. 177 CITY OF SEWARD, ALASKA RESOLUTION 2015-076 Section 2. Funding will be paid from a matching grant $2,680,000 from the Alaska Department of Transportation,Harbor Facility Grant Program,$2,772,400 from Harbor Maintenance Repair and Replacement Fund, Capital Repair and Replacement fees, and CPV funds. Section 3.This contract does not request funding or a contingency. Any contingency funding request will require further action by City Council. 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 24th day of August 2015. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 178 Agenda Statement '4 OF Setk Meeting Date: August 24, 2015 �'� _I,'�" `c 'Qa To: City Council 44ASKP Through: City Manager Jim Hun From: Harbormaster Norman Regis Agenda Item: Authorizing the City Manager to enter into a construction contract with Turnagain Marine Construction,the most qualified and responsive bidder,for the B, C, and S-Float Replacement Project. BACKGROUND & JUSTIFICATION: An October 2010 inspection of the Seward Small Boat Harbor included a visual inspection of the facilities in the southwest harbor including approach trestles,gangways,and floating docks A,B,C, D, G and S Floats as well as the south harbor boat launch ramp. The Final Inspection Report issued in January 2011 states, "The floating docks in this section of the harbor were constructed in the 1960's and are at or beyond their service life and should be replaced. The report went on to recommend that A, B, C, D and S-Float be replaced. D-Float was replaced in 2013 and 2014" The City worked with R& M Consultants to draft and finalize a competitive bid package based on the City's standard construction agreement, the scope of work and the availability of funds. This project was advertised according to SCC 6.10.210 and SCC 6.10.215. Five bids were received by the City by the deadline of 3:30 p.m. on June 16, 2015. The City and R&M reviewed all bids and concluded Turnagain Marine Construction was the lowest,most qualified and responsive bidder with a total bid amount of$5,456,400.00 including the Base Bid(B, C-Float) and Alternate 1 (S-Float) and Alternate 2 (A-Float). The project consists of 29,342 square feet of new timber floats (116 - 32 foot slips, 28 - 23 foot slips, 715 feet of lineal moorage),new utilities and safety improvements,and removing the creosote treated pilings and replacing with 51 16-inch galvanized steel pilings and 10 12-3/4 galvanized steel pilings. Alternate 1 includes reusing the old D-Float gangway and a new trestle structure for S-Float. Alternate 2 replaces A-Float and moves the floats to the South to meet the minimum distance between floats, and connection to the main walkway to the north. 179 The bid tabulation follows: B, C and S-Float Replacement Project Engineers Turnagain Orion Manson Northern Pacific Pile Estimate Marine Marine Construction Construction & Marine Base Bid $4,899,083 $4,317,500 $4,478,250 $4,985,260 $5,088,100 $5,642,540 Add Alt 1 $283,920 $383,100 $405,800 $326,600 _ $319,000 $411,150 Add Alt 2 $999,965 $755,800 $876,000 $791,050 $756,300 $937,700 TOTAL $6,182,968 $5,456,400 $5,760,050 $6,102,910 $6,163,400 $6,991,390 INTENT: Enter into a construction contract not-to-exceed$5,456,400 with Turnagain Marine Construction to replace A, B, C, and S-Float in the Small Boat Harbor. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan (document source here): Create a thriving port of 1. Seward through harbor improvements, infrastructure expansion, and X implementation of management plans. (page 23) 2 Strategic Plan (document source here): 2003 Small Boat Harbor Planning and Development Guide. X 3. Other (list): Inspection Report January 2011 X FISCAL NOTE: The funds will be appropriated from a matching grant $2,680,000 from the Alaska Department of Transportation. Additional funding will be appropriated from Harbor Maintenance Repair and Replacement,Capital Repair and Replacement fees,and CPV funds in the amount of$2,776,400. If a contingency is needed we will schedule a council meeting to appropriate funds. Approved by Finance Department: jetZ ATTORNEY REVIEW: Yes X No N/A 180 RECOMMENDATION: Council support Resolution 2015- authorizing the City Manager to enter into a construction contract with Turnagain Marine Construction,the most qualified,responsive and lowest bidder, to replace A, B, C and S-Float at the Seward Small Boat Harbor. 181 SECTION 00500- CONTRACT CITY OF SEWARD, ALASKA B, C and S Float Replacement Project [PROJECT NAME AND NUMBER] CONTRACT ("Contract"), between the City of Seward, Alaska, herein called the City, acting by and through its City Manager, and upon signing;this document shall serve as the notice to proceed, and Turnagain Marine Construction Corporation Company Name 9330 Vanguard Dr. Suite 100,Anchorage, AK 99507 Company Address(Street or PO Box, City, State, Zip) a/an ❑ Individual ❑Partnership ['Joint Venture OSole Proprietorship Corporation incorporated under the laws of the State of Alaska , its successors and assigns, herein called the Contractor, is effective the date of the signature of the City Manager on this document. The Contractor, for and in consideration of the payment or payments herein specified and agreed to by the City, hereby covenants and agrees to furnish and deliver all the materials and to do and perform all the work and labor required in the construction of the above-referenced project as bid by the Contractor, which bid and prices named, together with the Contract Documents (as hereinafter defined) are made a part of this Contract and accepted as such. It is distinctly understood and agreed that no claim for additional work or materials, done or furnished by the Contractor and not specifically herein provided for, will be allowed by the City, nor shall the Contractor do any work or furnish any material not covered by this Contract, unless such work or materials is ordered in writing by the City. In no event shall the City be liable for any materials furnished or used, or for any work or labor done, unless the materials, work, or labor are required by the Contract or on written order furnished by the City. Any such work or materials which may be done or furnished by the Contractor without written order first being given shall be at the Contractor's own risk, cost, and expense and the Contractor hereby covenants and agrees to make no claim for compensation for work or materials done or furnished without such written order. Notwithstanding the foregoing, payment under this Contract shall not exceed five million lour hundred fifty-six thousand four hundred dollars E.zero cents dollars ($5,456,400.00) for all base items, additional work, and change orders. The Contractor further covenants and agrees that all materials shall be furnished and delivered and all work and labor shall be done and performed, in every respect,to the satisfaction of the City, on or before: April 30, 2016 or within N/A calendar days following the date of notice to proceed. It is expressly understood and agreed that in case of the failure on the part of the Contractor, for any reason, except with the written consent of the City, to complete the furnishing and delivery of materials and the doing and performance of the work before the aforesaid date, the City shall have the right to deduct from any money due or which may become due the Contractor, or if no money shall be due, the City shall have the right to recover one thousand dollars and zero cents dollars ($ 1,000.00 ) per day for each calendar day elapsing between the time stipulated for the completion and the actual date of completion in accordance with the terms hereof; such deduction to be made, or sum to be recovered, not as a penalty but as liquidated damages. Provided, however, that upon receipt of written notice from the Contractor of the existence of causes over which the Contractor has no control and which must delay furnishing of materials or the completion of the work, the Contracting Officer may, at his or her discretion, extend the period specified for the furnishing of materials or the completion of the work, and in such case the Contractor shall become liable for liquidated damages for delays commencing from the date on which the extended period expires. The bonds given by the Contractor in the sum of$ 5,456,400.00 Payment Bond, and $ 5,456,400.00 Seward Harbor B, C, S Dock Replacement Project CONTRACT Page 00500-1 182 SECTION 00500-CONTRACT Performance Bond, to secure the proper compliance with the terms and provisions of this Contract, are submitted herewith and made a part hereof. The Contractor further covenants and agrees that the entire construction will be done under the administration of and to the complete satisfaction of the City subject to the inspection at all times and approval by any regulatory agency of the Local, State, or Federal Government of the United States of America, and in accordance with the laws of the State of Alaska and the City of Seward. For purposes of this Contract, Contracting Officer means or any other person designated by the City Manager. The Contractor is an independent contractor and not an employee or agent of the City. Contract Documents shall have the meaning ascribed by the General Conditions of the Construction Contract, and include but are not limited to this Contract, the General Conditions of the Construction Contract, the Supplementary Conditions, and the following listed documents: (1) ; (2) IN WITNESS WHEREOF the parties hereto have executed this Contract and agree to its terms and conditions. CONTRACTOR Turnagain Marine Construction Corporation Company Name , Si ture of Authorized Company Representative Jason Davis, President Typed Name and Title Date CITY OF SEWARD Signature of City Manager Typed Name Date City Clerk (ATTEST) Seward Harbor B, C, S Dock Replacement Project CONTRACT Page 00500-2 183 MEMORANDUM DATE: 8-19-2015 e of sett. FROM: Norm Regis, Harbormaster Vk ,, � • TO: Jim Hunt, City Manager q1. 0 SUBJECT: Documents required for award Turnagain Marine Construction for A, B, C, and S-Float replacement DOCUMENTS REQUIRED FOR AWARD 1. Construction Contract - COMPLETE 2. Payment Bond- Contract approval from Council (14 Days to acquire) Have copies of unsigned bonds 3. Performance Bond - Contract approval from Council (14 Days to acquire) Have copies of unsigned bonds 4. Certificate of Insurance - COMPLETE (AMLJIA REVIEWED) 5. KPB Tax Compliance Certification - COMPLETE 6. Material Origin Certificate - COMPLETE 7. EEO-1 Certification - COMPLETE 8. Subcontractor List - COMPLETE 9. Alaska Contractor's License - COMPLETE 10. Alaska Business License - COMPLETE 11. City of Seward Business License - PROCESSING 1.13 AWARD OF CONTRACT (c) Following approval of the City Council, the contract will be awarded to the successful bidder following receipt by the City of all required documents, properly executed within 14 calendar days following confirmation to the contractor that the Council has approved the award. Failure to enter into a contract within the 14 day period shall be grounds for forfeiture of the bid security and consideration of the second low bid for award 184 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2015-077 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, AUTHORIZING THE CITY MANAGER TO AMEND THE CONTRACT WITH R&M CONSULTANTS INC. FOR MARINE COASTAL ENGINEERING SERVICES FOR THE SEWARD MARINE INDUSTRIAL CENTER, CHANGING THE SCOPE OF WORK TO INCLUDE BREAKWATER AND DREDGING CONSTRUCTION ADMINISTRATION SERVICES, AND INCREASING THE CONTRACT IN AN AMOUNT NOT TO EXCEED $554,075 WHEREAS,in August 2011 the City of Seward contracted with R&M Consultants through an RFP process to provide coastal marine engineering and related technical services for the Seward Marine Industrial Center(SMIC)breakwater and expansion project: and WHEREAS,as the City of Seward has secured additional funding towards developing the SMIC project,the scope of work has been increased through amendments to the R&M contract,first to provide geotechnical analysis,permitting and further engineering,then to a final design and bid package through award stage; and WHEREAS,an invitation to bid process has resulted in a contract award for construction of the breakwater, and a notice to proceed issued to the successful bidder; and WHEREAS, the City has requested and R&M Consultants has provided a cost and task proposal to conduct the Breakwater and Dredging Construction Administration Services; and WHEREAS, this contract amendment will provide the City with the on-site oversight, recording and reporting, quality assurance, and contract management necessary to provide cost control and ensure a high quality construction project; and WHEREAS,through their work on this project since inception R&M has developed an in depth familiarity with the project, and has worked closely with the administration, agencies, the public and with facility users; and WHEREAS,R&M's experience with and understanding of the SMIC development brings further value to the project, makes them particularly suited to continue developing the project on behalf of the city, and R&M can begin the new work immediately; and WHEREAS, Seward City Code § 6.10.120 (8) exempts professional services including accounting,architectural,appraisal,engineering,land surveying,and other specialized service from the otherwise applicable provisions of that Tile requiring competitive procurement procedures. 185 CITY OF SEWARD,ALASKA RESOLUTION 2015-077 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 amend the contract with R&M Consultants Inc. for coastal marine engineering services in substantially the form attached here as "R&M Consultants Inc. Seward Marine Industrial Center(SMIC) Coastal Marine Engineering and Related Technical Services Contract Amendment#3.", and to issue a Notice to Proceed. Section 2. The amount of this Change Order is not to exceed$554,075. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of August, 2015. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: Johanna Kinney, CMC City Clerk (City Seal) 186 Council Agenda Statement Meeting Date: August 24, 2015 A '.t°F s , Through: Jim Hunt, City Manager i_ o _-4 From: Ron Long,Assistant City Manager q` P Agenda Item: Approve Change Order No. 3 of the contract with R&M Consultants Inc. for coastal marine engineering services for the Seward Marine Industrial Center(SMIC). BACKGROUND & JUSTIFICATION: In August 2011 the City engaged R&M Consultants, Inc. through a competitive RFP process to provide coastal marine engineering and related technical services for the SMIC expansion project. The initial scope of work included coastal analysis, concept design alternatives, and public involvement to select a preferred breakwater and facilities improvements design concept.The design concept was used to identify the project and assist the City in seeking funding from the State. The 2012 Statewide Transportation Bond package was approved and included initial funding for the SMIC project. R&M's contract was amended through Change Order No. 1 to build on the design work completed to date,conduct the necessary geotechnical testing and reporting,and to begin the permitting process. The City then received two legislative appropriations sufficient to advance the project to final design,and Change Order No. 2 authorized the work to move ahead with those next steps. SMIC Coastal Engineering Contract Change Order Log, Current through: 08/12/215 Date Resolution Item NTE amount 8/29/2011 2011-068 Initial design $217,292 3/11/2013 2013-017 Geotech and permitting $505,503 10/28/2013 2013-096 Final design, bid support $1,382,916 10/20/2014 Admin. Mitigation Plan and Restrictive Covenant $7,433 8/24/2015 2015- Breakwater and Dredging Const.Admin. $554,075 Project total $2,667,219 With final construction bids let and received,and authorization to enter into a construction contract approved by the City Council at its August 10,2015 meeting,construction can begin.The focus now will be on quality,schedule and cost control in order to ensure a successful project,and those goals are best achieved through the observation,inspection,coordination,documentation and other tasks as described in the attached Fee Estimate and Price Per Task Summary from R&M. R&M Consultants Inc. is intimately familiar with the SMIC project and is particularly suited to continue the work already begun there.The City has requested and R&M has provided a fee proposal and schedule of tasks to complete the next steps as described, and is prepared to begin the work immediately. 187 INTENT: To authorize the City Manager to amend the contract with R&M Consultants Inc. for coastal marine engineering services at the Seward Marine Industrial Center,changing the Scope of Work to include Breakwater and Dredging Construction Administration Services,and increase the amount of the contract in an amount not to exceed$554,075. CONSISTENCY CHECKLIST: Yes No N/A 1, Comprehensive Plan (document source here): Section 3.5.1.2 X 2 Strategic Plan (document source here): Page 12, Improve and expand maritime facilities; Expand development in SMIC X 3 Other(list): State Legislative Priorities,2011-2015 X FISCAL NOTE: The City of Seward will be reimbursed from the State of Alaska for this as a project cost under the legislative appropriations designated for the project. Approved by Finance Department: ,, Pr., 4. _ 1 ' ATTORNEY REVIEW: Yes No X /,�/N/A RECOMMENDATION: Recommend approval of Resolution 2015-° authorizing the City Manager to amend the contract with R&M Consultants Inc. to provide Breakwater and Dredging Construction Administration Services at the Seward Marine Industrial Center. 188 Professional Services Agreement with R&M Consultants Inc. for Coastal Marine Engineering and Related Technical Services CHANGE ORDER No. 3 This change ORDER No. 3 and Notice to Proceed is pursuant to Section 26 of the Professional Services Agreement entered into August 11, 2011 between the City of Seward, Alaska and R&M Consultants, Inc. This Change Order is effective August 25, 2015. R&M Consultants, Inc. are hereby directed to amend the Scope of Work defined tin the Professional Services Agreement — Section 4 —to include the Breakwater and Dredging Construction Administration Services for the SMIC Expansion project, as further described in the attached Exhibit A: "Fee Estimate and Price per Task Summary". The contract price is hereby increased in an amount not to exceed $554,075, to be paid in accordance with the original contract provisions. All other provisions of the Professional Services Agreement remain in full force and defect. Dated this of August 2015 APPROVED BY: City of Seward R&M Consultants Inc. By: Jim Hunt By: Title: City Manager Title: Date: Date: ATTEST: Johanna Kinney, CMC City Clerk 189 • -„,,....-Faw■ ; y GENERAL NOTES. =«?1°�q _, ,l'•/41,f t WAIiEt.2,::e A4,c ah'I,.'• I I.THE CONTRACTOR sWLL RE RESPONSIBLE FOR �9'I' : i•�."o{II rIAV1�1C' (]fRIT� MANNA EXISTING UNT W N 1 :y I _. ``Z, � {' 1,• ! PROJECT AMA 0€ LOAFED.VARIOUS MUTES WY BE PR TIE L jt� PRESENT WHIN '� ,7684 I WANT DIST AREA iNE CONPMOTOR 51141 lrES NL PROPER PREGMDNS ro AVDIO S i t --[• 9y±.%', - I AM'OISIURB.NCJ<OF SUCH 111UTR5 AID SRW BE RESPONSIBLE FOR REPR000 we I°'•, s R ' ._ �' , I DAMAGE TO UIEITES OARING CONSTRUCTION. X1`..c . rF • �` - aAdl • :!- I4 ! 2 SCMWLNG ND PHASING OF 6A,g T.. •' - ''' I 'MORN SW.CONFORM 70 SPECIFICATIONS �� _ ',Ej % ! 1 DIE PROJECT SITE 0 SUBJECT TO MGM BR€RAVES.AND CURRENTS SUCH CONDITION "r' /, V. '1 lip RELOCATE SEWER 1 d H TIE 1FAR.THE COMPACTOR SWll"SUCH d PERFORM w i o E 4 _ ''' �' 'J!-�Y RU1FN1 PIPE d d SEgENCE 70 TAKE IMO ACCWM SUCH CONDI7gN5. = o F$.X p jy/y-�_�. I {.NAVE HEIGHTS UP TO OFT&PERIODS OF 4-S SECONDS HAVE BEEN OBSERVED AT RIO 3 3'� geSuRecPa B/�r -_- _©--.;:. i;•, ,1 TIDAL SITE TIDAL OF 1.0 TO 1.7 KNOTS ARE COMMON DURING HIGH g'a I A' WARNER,1Y0�, ,'ti( �`• 1 r" 5 THE CONTRACTOR SH41 COORDINATE NIIN HARBORMASTER& N O TIE SEWARD HARBD &FISH LOGL 2 _.� ) I 1MV.-IpNA1E• �8.Fki di• •�+OREOGE ENDMNCE SEAFOOD TO AMAZE OBBpTBN OF HARBOR OPERATIONS&FISH o y i^• ----_ '--- o�wARecR'ANDxASyNE UiiLY ( cHAN EtQ DELIVERY c• f •N '' "-•_,J= _ ;-'------- ---- __ ' -----' -- - .--.m7�%'- ® y% K'-- arc w x J' i / �i��Ft•�d1 fh )) �EnstBC swADE " ,•7Ah1' 70 a ' CM OWrMi CASTNG AAW11G, -,, Q.1 - _ 'fi�t•� 4,1146 N-2gsebkas5 i PrE ------rir-"— ---- . RW AD ROVED ro RaK 7Q • 1 . 1R 404 E-IJ579/.7710 / J r` BE RE4UED SEE•• :NEW RUBBLE d. f1'..f•�(•4 (•�7•�/ :' AtW PNFAxWAER ElECTPoI'A.. 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FILL 1771.01 °i j DREDGE LIMS \G\ 0 -- --�-- � ----•--'--• --•--'-- -- -- C ATE PLAN m - 6 L. _ . a. _ '_�>.•__,__._- T SLOPE MARKER O • her--. ._- '-' — ,�. °`__,--_._.' 9�'No`F�c. 'ION _- __ '( 1 SITE PLAN �NSI X 5 OF 27 OSal 1=100 `- G5 July 29,2015 Rick Wise, Project Manager City of Seward 410 Adams Street PO Box 167 Seward,AK 99501 rrnconsult.com RE: SMIC Breakwater and Dredging Construction Administration Services R&M CONSULTANTS,INC. Dear Mr.Wise: 9101 Vanguard Dr:ve Anchorage,Alaska 99507 R&M appreciates the opportunity to present the attached fee estimate for the above referenced project.We have provided a fee estimate to perform the following services: phone:907.'522./707 fax:907.522.3403 1. Pre-construction Activities • Set up submittal register and log • Preconstruction meeting,agenda and minutes • Critical path schedule review • Correspondence and coordination with the Owner, Designer and Contractor 2. Daily on-site observation and inspection: • On-site construction inspection and monitoring through Engineer diaries, inspector daily reports and photographic documentation • Material quality and quantity documentation • Weekly progress meetings(meeting agendas and meeting minutes) • Critical path schedule review • Storm Water Pollution Prevention Plan(SWPPP)Administration and Inspection • Quality Acceptance and Quality Assurance. QA Inspections include: • Pile driving inspection, recordkeeping • Periodic quarry inspections(at Seward Quarry) by a registered geologist • Geologist inspection of primary armor delivered by barge • Survey QA includes up to 4 independent surveys during construction to provide quality assurance checks of the Contractor's surveys, as needed to verify pre- construction, interim,and post-construction surveys of dredging and breakwater construction progress. It is understood that these may/or may not be needed depending on the level of confidence in the Contractor's submitted survey products compared with R&M's project engineer's field observations. • Pay Item Documentation and payment evaluation • Safety monitoring assistance • Contractor submittal management • Keeping the Owner apprised of issues • Chang order support and development,cost estimates and cost negotiations • Providing support and recommendation for issue resolution • Other reporting as requested On-site observation and QA inspections assume the following construction schedule, based on initial conversations with Hamilton Construction: • Late August 2015 start mining plan/rock production,continue through March. Hamilton plans to use both Seward and Kodiak Island quarries R&M's geotechnical engineer will provide periodic visual inspections in the Seward quarry and checking barges as 191 Mr. Rick Wise 7/29/15 -age 2 they come in to Seward from Kodiak. Any inspections at the Kodiak quarry are assumed to be Contractor paid costs. • October 15: begin dredging with 24-hour shifts(Hamilton proposes using a 5,000 cy dump scow, so we assumed 4,000 cy dump per day for about 38 days of total dredging). • Late October start of breakwater construction,which may last through April. 3. Project close out per City requests: • Final records and paper work • Final inspection • Punch list • Final estimate • As-builting. • Certification of conformance A fee estimate spreadsheet detailing our level of effort and fee for these services is attached,and totals$554,075. Due to the uncertain nature of the level of effort required for this type of work which is highly dependent on the Contractor's work plan, means and methods,schedule, inquiries,and other factors, R&M proposes to complete the work described above on a time and expenses basis not to exceed the authorized amount. We are available to begin work immediately. We are available to discuss the scope and fee at your convenience. Please do not hesitate to contact Tim Croghan, Construction Administration Engineering Manager(646-9617) or myself(646-9602). c;lcerely, nd&M CONSULTANTS, INC. Kimberly Nielsen, PE Project Manager Enclosure: Fee Estimate '27: y; Innovating Today for Alaska's Tomorrow 192 ti 9101 Vanguard Drive•Anchorage,AK 99507-907.522.1707 R&M CONSULTANTS, INC. 9734 Mud BaaRoad#30110Ket hikannAK99 0170907.220.9424270 PRICE PER TASK SUMMARY FIRM: R&M Consultants,Inc. PROJECT TITLE: I DATE: 7/28/2015 Seward SMIC Breakwater&Dredging Construction Administration TASK LABOR EXPENSES ISUB-CONTRACTS TASK TOTALS 1 Construction Administration $370,907 $59,340 $5,500 $435,747 2 Surveying QA $62,094 $8,030 $0 $70,124 3 Quarry QA Inspection $22,905 $25,299 $0 $48,204 "o w ESTIMATED TOTALS LABOR EXPENSES SUB-CONTRACTS PROJECT TOTAL $455,907 $92,669 $5,500 $554,075 CC TIMATE PER TASK ....M: R&M Consultants,Inc. PROJECT TITLE: ....'—m^Seward Beach Erosion TASK NO: 1 TASK DESCRIPTION: Construction Administration DATE: 7/28/2015_ GROUP: METHOD OF PAYMENT: ❑ FP ❑ FPPE 1151 T&E ❑ CPFF PREPARED BY: Paul Hetzel SUB- LABOR HOURS PER JOB CLASSIFICATION TASK NO. SUB-TASK DESCRIPTION Principal Project Project Engineer Project Engineer Night Shift Night Shift Piling Piling Insp. Manager (O7) Inspector Insp.(OT) Inspector r (OT) 1 Project management 6 140 2 Full Time On Site Representative Daily Reports - 210 Maintain Submittal Register 105 Weekly meetings 56 Processing Submittals,RFIs,etc. 210 105 Review Pay Requests 40 20 Assistance w/Change Orders(Assume 4) 40 20 Project Closeout/Review As-builts 120 Inspection 3 General 695 527 260 192 Piling 80 40 TOTAL LABOR HOURS 6 140 1476 672 260 192 80 40 *LABOR RATES($/HR) $207.29 $164.10 $115.16 $172.74 $86.37 $129.56 $95.01 $142.51 A LABOR COSTS($) $1,243.73 $22,974.42 $169,976.16 $116,081.28 $22,456.20 $24,874.56 $7,600.56 $5,700.42 $0.00 I , I SUB- COMMENTS/ASSUMPTIONS: TASK NO. ITEM(S) QUANTITY UNIT PRICE TOTAL PRICE -Full time onsite representative October 2015 through April 2016 -Construction to be completed by end of April 2016 Lodging/Office(Month) 5 $2,000.00 $10,000.00 -Field staff time comenserate with Contractor hours Meals Per Diem 266 $60.00 $15,960.00 -Typical 10 hour shifts,6 days per week during constuction Vehicles(Day) 266 $85.00 $22,610.00 -Double shift 12 hours,6 days per week during dredging Local Mileage(R&M vehicle)(Mileage) 500 $0.75 $375.00 -Pile driving inspector,10 days,12 hr shifts Cell Phones,Internet,Consumables 1 $5,000.00 $5,000.00 -Contractor peforms QC Welding Inpection per D1.1 with R&M to perform QA only -Field office set up on site for administration -Post construction assitance available upon request FIRM'S LABOR: I $370,907 FIRM'S TOTAL EXPENSES Plus 10%Mark-Up: $59,340 :•:•:•:•:•:•:•:•:•:•:•:•:•'•••••:•:::• :::::: TOTAL EXPENSES: $53,945 TOTAL SUBCONTRACTOR Plus 10%Mark-Up: $5,500 SUB-CONTRACTORS: Firm Initials and Price Per Task FIRM: QA Welding Inpection TOTAL SUB AMOUNT: $5,000 $5,000 TASK TOTAL: I $435,747 COST ESTIMATE PER TASK FIRM: R&M Consultants,Inc. I PROJECT TITLE: (Seward SMIC Breakwater&Dredging Construction Administration TASK NO: 2 TASK DESCRIPTION: Surveying QC (DATE: 7/28/2015 GROUP: METHOD OF PAYMENT: LI FP ❑ FPPE G T&E U CPFF l PREPARED BY: Bill Preston SUB- LABOR HOURS PER JOB CLASSIFICATION TASK NO SUB-TASK DESCRIPTION Contract Project Senior Land Survey Party Survey Two-Person Two-Person Manager Manager Surveyor Chief Technician Survey Crew Survey Crew OT Management/Coordination 8 24 Mobilization/Travel 16 16 20 Hydro Equipment Testing/Calibration 4 Control Recovery 4 Hydro Survey 36 16 Field Note Reduction 16 Data Entry&Processing 32 Computations(Includes GPS&Volume Comps) 32 DTM 32 Topographic Basemap 48 Plotting&Deliverables 32 QA/QC,Review 16 16 TOTAL LABOR HOURS 8 40 192 32 16 64 16 0 0 0 1-o cre *LABOR RATES($/HR) $224.56 $161.22 $158.35 $118.04 $89.25 $207.29 $310.93 LABOR COSTS($) $1,796.50 $6,448.96 $30,402.24 $3,777.25 $1,427.98 $13,266.43 $4,974.91 $0.00 $0.00 $0.00 COMMENTS: SUB- ITEM S -Up to 4 surveys will be conducted for the purpose of providing quality assuarnce TASK NO. ( ) QUANTITY UNIT PRICE TOTAL PRICE checks for the dredging and breakwater progress during construction. Misc.Expenses -This estimate is the total for 4 independednt survey missions. 1 $500.00 $ 500.00 -Single beam hydrographic survey will be performed for QA. $ - Deliverables: R&M Vehicle per Day 8 $85.00 $ 680.00 --Spreadsheet showing survey results or standalone Civil 3D drawing with survey Boat Rental per Day 8 $400.00 $ 3,200.00 findings,description of all point codes used,and PDF copy of the field notes Hydrographic Survey Equipment per day 8 $125.00 $ 1,000.00 $ - FIRM'S LABOR: ( $62,094 Lodging 8 $120.00 $ 960.00 Meal Per Diem 16 $60.00 $ 960.00 FIRM'S TOTAL EXPENSES Plus 10%Mark-Up: $8,030 $ - ' TOTAL EXPENSES: $7,300 TOTAL SUBCONTRACTOR Plus 10%Mark-Up: EO SUB-CONTRACTORS: Firm Initials and Price Per Task FIRM: TOTAL SUB AMOUNT: $0 TASK TOTAL: 1 $70,124 -- 'IT ESTIMATE PER TASK A: R&M Consultants,Inc. PROJECT TITLE: -Seward Beach Erosion TASK NO: 3 TASK DESCRIPTION: Quarry QA Inspection _ (DATE: 7/28/2015 GROUP: METHOD OF PAYMENT: ❑ FP ❑ FPPE IS T&E ❑ CPFF PREPARED BY: Nielsen/Pintner SUB- LABOR HOURS PER JOB CLASSIFICATION TASK NO. SUB-TASK DESCRIPTION Project Geotechnial Geologist Staff Staff Drafting Manager Engineer Engineer Engineer Technician KN BP BM Site Visits to Seward Quarry(visual inspection,gradation tests) 20 100 Inspections for Barge Deliveries from Kodiak 16 64 TOTAL LABOR HOURS 0 36 164 0 0 0 0 *LABOR RATES($/HR) $187.14 $164.10 $103.64 $139.20 $88.45 $89.90 LABOR COSTS($) $0.00 $5,907.71 $16,997.62 $0.00 . $0.00 $0.00 $0.00 $0.00 $0.00 SUB- , COMMENTS: TASK NO. ITEM(S) QUANTITY UNIT PRICE TOTAL PRICE -Includes QA inspections 2 times per month,12 hr day,at the Lodging 0 $120.00 Seward Quarry October through March, including scan line $0.00 testing to check gradations,visual inspections of rock quality, R&M Vehicle per Day 22 $85.00 $ 1,870.00 Meal er Diem and as-needed collection/testing of samples(number and 22 $60.00 $ 1,320.00 Laboratory Testing type of tests assumed shown to left) T85/C97 -Assumes 56,500 tons of primary stone delivered by barge, 7 $155.00 $1,085.00 roughly 6,000 tons per barge=10 barge inspections(8 hr day) c88 2 $300.00 $600.00 C535 7 $235.00 $1,645.00 FIRM'S LABOR: l ATM 313 2 I $ 2,905 $235.00 $470.00 D5312/D5313 1 $5,500.00 $5,500.00 FIRM'S TOTAL EXPENSES Pius 10%Mark-Up: $25,299 (no markup on in-house lab charges) TOTAL EXPENSES: $12,490 TOTAL SUBCONTRACTOR Plus 10%Mark-Up: E0 SUB-CONTRACTORS: Firm Initials and Price Per Task FIRM: I I l I I l TOTAL SUB AMOUNT: $0 TASK TOTAL: $48,204 City of Seward,Alaska City Council Minutes July 13,2015 Volume 39,Page CALL TO ORDER The July 13, 2015 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Jean Bardarson. OPENING CEREMONY City Manager Jim Hunt led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Ristine Casagranda* David Squires Marianna Keil Iris Darling *Council Member Casagranda arrived at 7:08 p.m. comprising a quorum of the Council; and Jim Hunt, City Manager Johanna Kinney, City Clerk Brenda Ballou, Deputy City Clerk Absent—Terry, Butts CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Tim McDonald had comments about the leases that had been coming before council lately. He was concerned about the 99 year lease for Alaska Logistics, particularly because the previous lease was for five years,which he said was a big jump,and there were no performance requirements included in the new lease to ensure improvements.He thought the rent on that lease was inadequate and should be evaluated every five years to adjust the rate. McDonald was concerned that this lease would be transferred at some time in the future and the city would not be in a position to benefit from it. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Darling) Approval of Agenda and Consent Agenda Keil added an Other New Business Item, Discussion on Abatement. Darling added an Other New Business Item, Discussion on Budget Work Session. Motion Passed Unanimous 197 City of Seward,Alaska City Council Minutes July 13,2015 Volume 39,Page The clerk read the following approved consent agenda items: Approval of the June 22,2015 Regular City Council Meeting Minutes. Appoint Sandie Roach' to the Historic Preservation Commission for a term to expire May, 2016. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Mayor Bardarson drew attention to the Pat Williams memoriam proclamation on the wall in council chambers. Proclamations & Awards—None Borough Assembly Report. Sue McClure reported the assembly had met twice since her last report. One item that had been getting a lot of discussion lately was the proposal to raise the cap on sales tax from$500 to$1,000 per sale.The item was tabled and,instead,the borough decided to perform a review of the entire tax code throughout the borough. The borough's Health Care Task Force was nearly formed,and Seward Community Health Center Executive Director Patrick Linton was Seward's representative.They would be meeting soon.There was also a Marijuana Task Force, headed up by Borough Mayor Chief of Staff Paul Ostrander,which was having its second meeting next week.Ron Long was Seward's representative on that task farce.Another topic that came before the assembly often was that of animal abuse.There was widespread concern about animal abuse,and it was apparently not an uncommon issue throughout the borough.Concerned parties have requested the borough create a task force to address the situation. The assembly would next meet on July 28, 2015. City Manager's Report.Jim Hunt said for the past year the city had been working with the Alaska Industrial Development and Export Authority(AIDEA)to overwinter an oil rig in Seward. Assistant City Manager Ron Long added the heat pump loop for the geothermic test well contract had been finalized and the test results would allow for a stronger grant application for a production well.There was a bid opening last week for the Seward Marine Industrial Center(SMIC) breakwater project and there were six bidders;a notice of intent to award would be forthcoming.He drew council's attention to the upcoming training for council, boards and commissions being conducted by the City Clerk and City Attorney. In response to Bardarson, Hunt confirmed that the Alaska Logistics lease included a performance clause in it,and that the lease agreement would be 8%of the appraisal to be conducted by an independent appraiser and not the City of Seward.Long added that as the value of the property went up, the lease rate would go up with it. Squires asked for clarification about the test well because he thought the pipes would be run out into the bay.Long explained that running the pipes out into the bay was an idea presented in the initial concept,but since then there was an opportunity to use a closed loop system from on shore which would result in a heating system as effective as it would if the pipes ran into the bay; the 198 City of Seward,Alaska City Council Minutes July 13, 2015 Volume 39, Page advantage would be the elimination of one pump entirely. In response to Darling, Long confirmed that if the system proved feasible, the system could be expanded to allow others in the downtown area to use it as well. Last week, Hunt attended a Homeland Security and FEMA active shooter training course in Kenai. Keil asked when the jail contract would be coming back to council. Hunt said council would see it at the next meeting. In response to Darling,Hunt said the status of the Orlander Building was that they submitted their plans to the city last fall, and were now permitted to do work. He could not answer to their proposed timeline for completing the project. Other Reports,Announcements and Presentations—None PUBLIC HEARINGS Resolutions Requiring A Public Hearing Resolution 2015-060,Authorizing The City Manager To Enter Into A Lease With The National Park Service For The Real Property Described As Lots 13 And 14,Block 6,Seward Recording District,Third Judicial District,State Of Alaska For 60 Years And 3 Months,With One 5 Year Option To Extend. Long said the Park Service had some ambitious plans to make improvements to the streetside and waterside of the building,including removing the paved"moat"that caused trouble for parking and snowplowing,as well as some restroom improvements.Harbormaster Norm Regis added that the city leases were reappraised every five years, so the lease rates were not stagnant throughout the life of a long term lease. Hunt said, if approved, the Park Service was prepared to invest over $2 million in the property. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Rebecca Lasell,Superintendent for the Kenai Fjords National Park in Seward, said the Park Service would be investing over$2 million in the Seward Visitors Center over the next three years. The Park Service provided many jobs and was an attractive draw to visitors. Tim McDonald said he supported this lease and had no concerns with it being long term, unlike other leases the city has done with private businesses. No one else appeared to address the Council and the public hearing was closed. Motion (Keil/Squires) Approve Resolution 2015-060 199 City of Seward,Alaska City Council Minutes July 13,2015 Volume 39,Page By unanimous consent,council suspended the rules to ask questions of Park Superintendent Lasell. In response to Squires, Lasell said while the building located at the harbor was being renovated,visitors would be directed to the Exit Glacier location. Lasell reported that,historically, the Visitors Center didn't receive enough foot traffic throughout the winter to warrant keeping it open,but she was hopeful that after the remodel those visitation numbers would change. Lasell said their timeline was to do the remodel planning in 2015 and have stakeholder meetings in 2016. The rehabilitation of the Visitors Center would occur between 2016-2017 and then the exhibit redesign and installation would take place between 2017-2018. Squires asked Regis what he knew about how the"moat"or swale outside of the Park Service Visitors Center came to be. Squires said it related to a right-of-way and he encouraged Regis to look into it. In response to Squires,Hunt said after the swale was removed that area would be designated for handicapped parking and not for bus traffic. Casagranda asked administration for clarification on leases as it related to how the number of years was determined. Long said leases and their duration were relative to the purpose of the lease, use of the property,and return on investment.Casagranda followed up by asking if the Park Service requested 60 years and Long confirmed they had. Hunt added that all lease transfers had to come before council. Motion Passed Unanimous UNFINISHED BUSINESS —None NEW BUSINESS Resolution 2015-061,Authorizing Restoration Of A Full-Time Exempt Position In The Finance Department Titled Assistant Finance Director,And Appropriating Funds. Motion(KeiUDarling) Approve Resolution 2015-061 Long said the Finance Department had been putting in a lot of extra hours for the last year. Finance Director Kris Erchinger said the Finance Department had had eight employees from 1989 through 2000.In 2000,when Erchinger was promoted to Finance Director,the position she vacated as second in command was not filled and the staff was reduced to seven. At that point in time,the staff was stable and had a lot of longevity.In recent years,however,there had been a lot of turnover. In addition to this resolution to add restore this position,the Finance Department was also asking for additional funds to cover overtime hours to get through 2015, as well as bringing retired employee Kim Kowalski-Rogers back in to help out. Squires asked how the proposed range for this position fell in line with other department seconds. Erchinger said this was the same range as the position had been in 2000. 200 City of Seward,Alaska City Council Minutes July 13,2015 Volume 39,Page In response to Squires, Long said Public Works and the Library were two departments that did not have seconds, but were enterprise funds. Long said if finance went without help, all other departments would be affected. In response to Darling, Erchinger said payroll might be able to be outsourced, but governmental accounting was a specialty field that one learned on-the-job after they became an accountant. It took an additional five or six years for an accountant to learn governmental accounting. Erchinger added that there was no one local that could do the job; payroll was complicated because it included union employees, seasonal employees, contract employees, and grant funds for some employees. Hunt added that utility billing was also complicated because it included turn ons, turn offs, accounts in advance and accounts in arrears. Keil thought the salary range was appropriate. She would support this resolution. Casagranda appreciated the work Erchinger had contributed to the city for many years. In response to Casagranda, Erchinger said she couldn't foresee ever getting rid of this position in the future because the need was great now, and would continue to be going forward. She said the auditors said that,regardless of the small size of Seward,this city was the second most complicated one to audit in the whole state. Squires was concerned that the Finance Department did not have a second in place in the event of a natural disaster or emergency,or an illness of the department head.He would support this resolution for the sake of continuity of business, on a daily basis, as well as in an emergency situation. In response to Darling,Erchinger said there were certain things like the budget,resolutions, and agenda statements that she, alone,prepared. Erchinger was reticent to outsource payroll: when she started with the city back in 1989, following the oil spill, the city lost $600,000 in federal government refunds because the emergency response hours and payroll were not coded properly. In response to Casagranda, Erchinger said they purchased the new accounting software in 2011, but delayed implementing it until 2014. Motion Passed Unanimous Other New Business Items Discussion on Abatement. Keil wanted the city to take care of their own weed problem before the city spent funds on issuing citizens weed nuisance notices. Hunt said the nuisance abatement program had been successful and citizens had been responding by cleaning up their yards.He said the city did not have enough staff to maintain all the parks and properties to keep up with their own landscaping. Squires requested to see a sample of the letter that was being sent to citizens. Casagranda received a complaint from a citizen about someone driving around in a Hummer 201 City of Seward,Alaska City Council Minutes July 13,2015 Volume 39,Page delivering notices to hard working small business owners when there were lots of city-owned properties not in compliance. She was pleased with some of the positive results from the program, but was also concerned that council did not know how much money was being spent on the program. Hunt responded that he didn't care what vehicle was driven to deliver notices and he was spending council-approved funds.Hunt suggested council remove the ordinance from the books if they didn't want him enforcing it. Casagranda asked,relating to abatement,about the status of the Jesse Lee Home. Long said council would have an update at the next meeting. Discussion on Budget Work Sessions. Darling wanted to start working on the budget. Keil said council couldn't begin budget discussions yet because they hadn't received the audit results.Casagranda requested the budget work sessions be scheduled at the end of August/beginning of September, and Long agreed. Long said administration would bring council a draft schedule within the next two meetings. In response to Squires, Bardarson said council would be meeting to determine their own goals at one of the budget work sessions. Long requested that council allow administration to develop their budget requests and goals first, and then bring that information to council for input. INFORMATIONAL ITEMS AND REPORTS Proclamation for Spring Creek Correction Center's Employee of the Year Bruce Wardle. COUNCIL COMMENTS Keil said thanks for a great Fourth of July. She had been enjoying seeing all the marine animals lately. Casagranda said her mother ran the Mount Marathon Race for the 20th time this year, and one of her daughters ran for the first time. She thanked all the volunteers who made the Fourth of July Festival possible. Squires echoed Keil's comments; he had a nice holiday. He would like to see the Police Department increase parking citations for line-of-sight parking offenses that created safety hazards. Darling thanked Resurrection Bay Historical Society volunteers for stepping up to open the museum on Sundays. She had attended two People-To-People presentations in the last week or so, and she had been very impressed with how bright the students were. Bardarson agreed that the People-To-People program was wonderful.She noted she may not be in attendance at the July 27, 2015 meeting. Squires asked Hunt if the museum could be kept open on Mondays,as well,by Resurrection Bay Historical Society volunteers. 202 City of Seward,Alaska City Council Minutes July 13, 2015 Volume 39,Page CITIZEN COMMENTS Tim McDonald said he had a nice Fourth of July. He would be interested in learning what the visitor numbers actually were. He was concerned about the solicitation of the drilling rigs to come into Resurrection Bay;he didn't want the pristine nature of Seward to turn into an industrial armpit.McDonald also wanted to clarify the city's policy on leases;he didn't see any justification for • a 99-year lease. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Long said administration spent zero tax dollars soliciting drilling rigs to overwinter in Seward. The Seward Ships DryDock lease transfer to Vigor was not a sale;violations of any lease involve terms to resolve the situation. Long admonished McDonald for these comments and encouraged him to seek legal representation if he believed there was fraud involved. Hunt said everyone wanted to see our community to grow. He said Vigor was an environmentally sound company and was planning to invest over $1 million in environmental improvements. ADJOURNMENT The meeting was adjourned at 9:00 p.m. Johanna Kinney, CMC Jean Bardarson City Clerk Mayor (City Seal) 203 City of Seward,Alaska City Council Minutes July 27,2015 Volume 39,Page CALL TO ORDER The July 27, 2015 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Jean Bardarson. OPENING CEREMONY Lieutenant Doreen Valadez led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Marianna Keil Ristine Casagranda Christy Terry David Squires Iris Darling Dale Butts comprising a quorum of the Council; and Jim Hunt, City Manager Johanna Kinney, City Clerk Absent—None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Paul Paquette said the Lowell Point Sewage Lagoon needed to be upgraded. He said that in the process of getting the lagoon back online, it still didn't appear to be working properly and felt there was a lack of concern and knowledge to reactivate the lagoon. The whole lagoon should be getting treated daily and the aerators didn't appear to be working. Paquette hoped the city would find a new location for the sewage lagoon. Susan Lang of Lowell Point and manager of Silver Salmon Derby Campground and RV Park, said she'd been before council many times in the last few years and wished she was standing before the council tonight,thanking them. Unfortunately,there were odors again emerging from the lagoon. It was not working, and she was told by Public Works to be patient for another two weeks. Lang was assured the odor would go away but she was disappointed in saying the odor was as bad as last summer. Orson Smith,city representative for the Prince William Sound Regional Citizens'Advisory Council (PWSRCAC), reported to council for the first time. He stated the PWSRCAC was a nonprofit corporation established after the 1989 Exxon Valdez Oil Spill to promote environmentally safe operations of the oil business. The council consisted of 18 members and five technical committees who were operated by council members and other volunteers. They had various projects that directly involved Seward and its industries,which he intended to report on at a later time. The 204 City of Seward,Alaska City Council Minutes July 27, 2015 Volume 39,Page advisory council had 18 staff members in Anchorage and Valdez. The fiscal year began in July and their budget was over$4 million. Jim Fredrickson thanked the council for their service. He had comments on the beautification notices he had received on an alleged violation of overgrown vegetation. Fredrickson showed council a picture of the property of weeds in a three feet long ditch dug by the city to improve drainage without any notice given to him. He used to mow all along this area but couldn't anymore due to the ditch. Fredrickson asked whose responsibility was it to maintain this area and felt the city was in violation of a nuisance in having such as a deep ditch off the street. He was still waiting for the city to finish their ditch project. Fredrickson received one letter from Bruce Stanford. He felt it important to talk to the council and explain that this problem was created by the city. He'd learned these notices had been sent all over town. The money in postage alone was excessive, he felt. Tim McDonald had a complaint with the maintenance infrastructure of the city. There were many streets filled with potholes and in poor shape. He didn't think the city was keeping up on this. McDonald found it coincidental they had an election coming up and there was a flurry of leases in the city at very lengthy terms and favorable rates. These leases were entitled,he felt. It was a lot of money that the city was losing with these leases and stated the public deserved an explanation. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Terry) Approval of Agenda and Consent Agenda Resolution 2015-062 was pulled from the consent agenda by Squires. Resolution 2015-063 was added to the consent agenda by Keil with no objection from council. Motion Passed Unanimous The clerk read the following approved consent agenda items: Resolution 2015-063, 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 Thirty-Six Thousand Dollars ($36,000.00). Appoint Darryl Schaefermeyer,Bruce Jaffa,and Brooke Andrews to the Port and Commerce Advisory Board with terms expiring July, 2018. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Introduction of Seward and Obihiro,Japan Exchange Students. Proclamation for Student Exchange Program. 205 City of Seward,Alaska City Council Minutes July 27,2015 Volume 39,Page Seward Fire Department Volunteer Recognition for Retired Member Karen Corrigan. Chamber of Commerce Report.Chamber Director Cindy Clock said halibut tournament ticket sales were at an all-time high this year. The Fourth of July Festival concluded and there were a lot of ideas for next year including making the event dog free. Many people did not pick up after their dogs and were off leash, causing an unsafe environment. Chamber staff member GeNeil Flaherty had begun a conversation for a third electric pedestal to provide more service to the vendors. Clock thanked city personnel for their help with the event. The chamber energy group was planning for the Energy Forum and Fair on October 9 and 10,2015. The chamber Seward Marine Industrial Center (SMIC) group was excited about the breakwater work beginning and was assisting in updating the marine services brochure. City Manager's Report.Jim Hunt reported the following purchase orders between$10,000 and$50,000 were approved by the City Manager:$24,999.00 to Denali Drilling for construction of a test well,$11,787.00 to Long Building Technology for harbor cameras,and$23,000.00 to Metco to repair a washed out cell at SMIC. Hunt gave a brief update on the Lowell Point Sewage Lagoon. They'd received many calls in the last two weeks on odor. Alaska Department of Environmental Conservation was aware that the lagoon was not up and fully operational yet. The blower plant was not operational yet. Nothing was being discharged from the lagoon at this point, it was only filling up. Hunt met with Alaska Department of Transportation(DOT)to talk about issues in Seward, including the possibility of a crosswalk on the Seward Highway and drains and culvert maintenance along the highway. Hunt also showed DOT the tunnel underpass and its poor condition. Butts wanted information about the cost benefits of having a code compliance officer versus having a contracted service. Hunt clarified he chose Mr. Stanford to provide code compliance • because he was highly educated and a professional and emphasized he could not afford to hire someone in house. It was advantageous that Mr. Stanford was independent of the city and unbiased. Hunt stressed to the council that code compliance was not a perfect process and often uncomfortable. The code needed to be fixed regarding nuisance and abatement, especially the appeal process. He suggested it be changed to appeal first to the City Manager and then to the Planning and Zoning Commission instead of directly to council. Keil said the things in the city rights-of-way should be the city's responsibility, not the property owner. She wasn't supportive of weed and vegetation abatement as they were too subjective,but junked cars and unsafe buildings were important to abate. Terry agreed that life and safety issues were important, but she would like to see this enforcement stop and bring in the Planning and Zoning Commission on some of these issues instead. Hunt said the public health and safety portion of the code was not outdated. Bardarson said her own issue was the city's backyard wasn't cleaned up and it created a double standard. Casagranda agreed and said once the city could keep on top of their vegetation,they could enforce private land owners to do the same-otherwise it seemed hypocritical. In response to council,Hunt clarified this contract was budgeted and was not for an amount that typically would be reported to 206 City of Seward,Alaska City Council Minutes July 27,2015 Volume 39,Page council. Squires agreed that enforcing this ordinance was difficult and that Planning and Zoning should be an appeal board, but disagreed on some of the properties they sent letters to. Property owners should have a right if they wanted to grow a park. In response to Butts,Hunt said a property owner could clear the right-of-way,but was not required to. Hunt stated they could back off on the vegetation abatement. Terry said a more comprehensive look at abatement was needed from the start. Things like erosion should be considered. In response to Casagranda,Hunt said they had viewed a draft of the SMIC Plan by the Alaska Industrial Development and Export Authority(AIDEA), and expected the final draft in the next month. In response to Terry, Hunt stated the city was not planning to relocate the treatment plant currently located at Lowell Point and he had not heard from their consultant that the facility did not meet the city's capacity. Terry hoped for a project completion report at the next meeting. Terry noted in the manager's report that the Maple Street Sewer and Water Project was put on hold pending direction from council and asked what administration needed from council. Hunt • said a work session on this issue would be advisable to discuss the project further. In response to Casagranda, Hunt said when people called dispatch with odor complaints at Lowell Point, he and Public Works Director Casey were notified. Casagranda would like to see a report of those calls. Terry suggested perhaps a police officer could respond and document it so the City Manager and Public Works Director didn't have to get out of bed at night to investigate. Terry said the city was continuing community misunderstanding on lease rates. When they did appraisal packets,it discussed the process and explained how leases changed over time.Perhaps that information could be put on the website. Other Reports,Announcements and Presentations—None PUBLIC HEARINGS—None UNFINISHED BUSINESS—Items for Reconsideration Resolution 2015-061,Authorizing Restoration Of A Full-Time Exempt Position In The Finance Department Titled Assistant Finance Director, And Appropriating Funds. (Motion to reconsider filed by Council Member Casagranda) Motion (Casagranda/Terry) Reconsider Resolution 2015-061 Casagranda said the reason she wanted to reconsider this resolution was because two council members were not present when this resolution came before them and because creating a position in the city was a big deal,mostly because of the retirement implications and funding. They were also really close to the budget and although the people in finance were tired,but she wanted to reconsider this motion because she felt it could be brought to them during the budget. 207 City of Seward,Alaska City Council Minutes July 27, 2015 Volume 39,Page Keil was not going to support this. They had a full scale discussion on this last meeting, although two members were not present. Darling said this position had been vetted and finance was in rough shape. She agreed with Casagranda that they should consider this in the budget, but they needed help now. Terry would support the reconsideration,just because they were close to the budget process. She was sorry this had waited so long to come to them, but it seemed like a budget discussion. Motion to Reconsider Failed Yes: Terry, Casagranda No:Keil,Butts,Darling,Squires,Bardarson NEW BUSINESS Resolution 2015-062, Rescinding Resolution 2015-029, Which Authorized The Seward Community Health Center To Apply For A 2015 United States Department Of Health And Human Services'Health Infrastructure Improvement Program Grant,And Rescinding Section 1. Of Resolution 2015-047,Which Directed The City Manager To Bring Forward A Resolution By August 10, 2015 To Formally Authorize The Seward Community Health Center's Application Process With The United States Department Of Health And Social Service's Health Infrastructure Improvement Program Grant Application. Hunt said council approved Resolution 2015-029, which allowed the Seward Community Health Center (SCHC) to prepare and submit a grant application, committing city funds for an expansion project. Council additionally passed Resolution 2015-047,affirming that council had the ability to move forward or opt out of the grant application process. It was later determined there were too many questions and unknowns about a large scale hospital expansion project and not enough time to form a good plan. Therefore, administration was requesting council rescind this action and withdraw the grant application. By unanimous consent, council suspended the rules to allow Seward Community Health Center Executive Director Patrick Linton to speak. Linton stated following their work session with the City Council,he followed up with their state and national consultant on this grant issue. From those conversations,it was suggested to him that the best way to approach this was to withdraw the application prior to the awards being made. He was told the worst thing to do was to accept the award if approved and then give the money back, which would look poorly on the city and SCHC. The granting agency would rather work with the SCHC to look at pursuing a different project that's feasible. The SCHC supported the city's recommendation of this resolution to withdraw the application prior to September 1. The SCHC hoped to create a new process and timeframe not being driven by grant deadlines to come up with acceptable alternatives for a hospital improvement/expansion project. Motion Passed Unanimous Resolution 2015-064, Authorizing An Amendment To The Five Year Contract For $368,952.00 With The State Of Alaska,Department Of Corrections,To Provide For Operating 208 City of Seward,Alaska City Council Minutes July 27,2015 Volume 39,Page The Seward Community Jail And Housing Prisoners Charged And/Or Sentenced Under Alaska Statutes. Motion (Terry/Squires) Approve Resolution 2015-064 Hunt said they had received notice from the Alaska Department of Corrections that many of the Alaskan communities with jail systems were going to lose a portion of their state jail funding based on a formula of having less than a 70%occupancy rating. Seward had 64%occupancy and was facing cuts.This resulted in an adjusted loss of about$195,000 to the city and Hunt continued to work with the jails board and speaking with the State Office of Management and Budget and others in Juneau to pursue additional funding. Hunt stated the state needed to have more awareness regarding public safety. Keil said next year she wanted to look at funding that took care of the jail or look at taking prisoners to the Spring Creek Correctional Facility. This reduction was a large hit because it was more than $195,000 as they were losing funds from other services and working with a reduced budget. Squires noted Spring Creek Correctional Center could not take prisoners as Keil suggested. The Department of Corrections would not modify the facility to to allow for this. Squires inquired if there was a daily charge for prisoners and wondered if that fee could be increased. In response to Terry,Hunt stated council would know the full ramifications of this reduction when the budget was presented. Squires asked what happened if they refused to take a prisoner from a trooper. Lieutenant Doreen Valadez was unsure. Keil said for the next fiscal year the city should propose two budgets—with or without the state funding. Otherwise it fell on the state to do prisoner transport and there was already a lack of troopers in the area. Perhaps the city should encourage the state to modify Spring Creek Correctional Center to be able to conduct this type of intake. Motion Passed Unanimous Other New Business Items—None INFORMATIONAL ITEMS AND REPORTS Letter of support for the Lost Lake Breath of Life Run. COUNCIL COMMENTS Keil thanked Port and Commerce Advisory Board applicants for continuing or beginning their service on the board. 209 City of Seward,Alaska City Council Minutes July 27,2015 Volume 39,Page Terry was happy to see the Lost Lake Breath of Life Run support letter in the packet and noted it was an important event in our community. She thanked Karen Corrigan for her years of volunteer service and all the community volunteers for their service. Terry thanked the clerk and the attorney for their recent board, council, and commission training. She wanted there to be an end point on the sewage lagoon project and requested council be provided with reports and staff to finish out the project. In the City Manager's report she didn't think it was appropriate to state the Finance Director cancelled her plans to be in attendance tonight to be available to answer questions regarding the Assistant Finance Director position, and it felt like a dig to council. Hunt said she was here tonight and it wasn't intended to be a dig. Terry said that could have been an email to council. Butts thanked Karen Corrigan for her 16 years on the Seward Volunteer Fire Department and it had been great to work with her. He noted responders were so busy and always did a great job. Butts requested the public call him ahead of time and let him know their concerns, as he wanted to be kept abreast of the issues. Casagranda thanked Schaefermeyer, Jaffa, and Andrews for serving on the Port and Commerce Advisory Board. She was happy to see Brooke Andrews stepping on the board and into something new. She attended an amazing event this Sunday in the bowl of Mount Marathon and watched local band Black Water Railroad play a concert. There were so many people and no one abused the land. It was amazing to see the support for these kinds of events. Squires thanked those who applied to the Port and Commerce Advisory Board. He thanked Karen Corrigan,with whom he'd worked with for many years. She was entertaining and thoughtful and he always appreciated her. Squires echoed Butts' comments that he preferred to hear from concerned citizens ahead of time so he's aware as well. Regarding Mr.Fredrickson's concerns,there was an appeal process regarding abatement that he'd like to see highlighted a little bit more. Darling thanked the volunteers for hosting the Japanese exchange students, volunteers for hosting the museum on Sundays, and volunteers in general. She hoped people would encourage visitors to go to the historic museum. Bardarson thanked the volunteers in our community. She clarified that the Assistant Finance Director position in question tonight was not a new position. She thanked the attorney and the clerk for a great training last Monday and thanked those who could attend. Bardarson reminded the public there was one vacancy on the Planning and Zoning Commission. Hunt congratulated Bardarson on her daughter's wedding this weekend. The town was beautiful and packed this weekend. CITIZEN COMMENTS Chris Lampshire, Acting District Ranger of the U.S. Forest Service's Seward Ranger District, and Robert Stovall also of the Seward Ranger District noted to council of the two Seward homes owned by the Forest Service that were sold last year through an auction process. Stovall stated they planned to do the same with the organization's office building in Seward as they transitioned to the Kenai Lake Work Center. A notice for realty sale would be going out and 210 City of Seward,Alaska City Council Minutes July 27,2015 Volume 39,Page comment periods would be noticed. Lampshire stated the Fores Service was also looking to partner with the National Park Service to have a joint facility based in Seward to maintain a presence in the community. Lampshire announced the Chugach National Forest and specifically the Seward Ranger District had been selected to supply the Capital Christmas Tree to reside in Washington, D.C. this year. The Forest Service was partnered with a non-profit organization to work with on the campaign to get the selected tree from Seward to Washington, D.C. Jodi Petrich of Choose Outdoors said it was an honor to be here and for the first time in history, the Capital Christmas Tree was coming from Alaska. With her organization, she helped connect people with the National Forest Service through outdoor recreation and they can ask for help from different businesses in assisting transferring the selected Capital Christmas Tree. Alaska Crane, Linden Transport, and Totem Ocean were a few of the businesses assisting in this project. The location of the tree was secret,but they would bring the tree in Seward to celebrate it first and hoped a variety of community organizations could help participate. Anyone wanting to help with the project was more than welcome. GeNeil Flaherty, with the Chamber of Commerce, planned to help with the project and could assist with any questions. She was very excited to have this project begin in Seward and to be able to participate in this project. Tim McDonald said regarding the jail cutbacks,he understood putting the costs on the state would increase the city's base costs. He didn't understand why the city was entering into 99 year leases prior to the completion of the AIDEA SMIC Development Plan. McDonald could not agree with the point that these leases were facilitating financing. He asked why these leases were 99 years in length and why were there so many when there's no supporting data that they were needed. McDonald stated he would appreciate an answer from administration instead of being attacked. They were sponsored by the City Manager and these leases were serious business. Leasing for a whole century seemed excessive. Susan Lang thanked council for their concern and their reaction to citizen comments on the sewage lagoon. She appreciated that and it was nice to know the system of reporting odors as she was curious on what happened once she called dispatch. Following the jail funding cutbacks, it sounded like Seward was going to lose money because they weren't using the jail as much. Perhaps that meant the crime rate was going down and perhaps that was a good thing. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Keil said applications for council and mayor available at the clerk's office. She hoped they didn't go "Donald Trumping" this election season by saying outrageous things just to get in the newspaper. Casagranda thanked the clerk's office for the extra outside work done for the annual student exchange. Hunt addressed McDonald's comments, stating he was speaking for the council and the citizens. He was tired of the allegations and stated the council had done something wrong. Every 211 City of Seward,Alaska City Council Minutes July 27, 2015 Volume 39,Page lease was publicly heard and examined. No action had been performed or decisions made behind closed doors. He pointed out the Alaska Railroad was also engaging in 99 year leases and it wasn't a bad thing. These leases are brought forward for consideration were sponsored by him because council requested this of him. • ADJOURNMENT The meeting was adjourned at 9:05 p.m. Johanna Kinney, CMC Jean Bardarson City Clerk Mayor (City Seal) 212 City of Seward,Alaska of SFp, City of Seward 1963 1965 2005 = P.O.Box 167 hern Seward,Alaska 99664-0167 All-America C'+� 4414010' Main Office (907)224-4050 Facsimile (907)224-4038 August 25, 2015 Mayor Ethan Berkowitz Municipality of Anchorage 632 W 6t'' Avenue, Suite 840 Anchorage, Alaska 99501 Dear Mayor Berkowitz, On behalf of the City of Seward, I would like to congratulate the Municipality of Anchorage on its 100-year anniversary. What an amazing milestone this is for Alaska's biggest city. Our cities share a lot of history regarding the development of our fine state as well as overcoming obstacles and hardships through the years. Its moments like these that you can look back with pride and truly reflect on how far your municipality has come. I wish for you and the people of Anchorage continued success in celebrating this important commemoration and for another 100 years of a flourishing and thriving city! 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