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HomeMy WebLinkAbout08222016 City Council Packet August 22, 2016 City Council Chambers Beginning at 7:00 p.m. Seward City Council Agenda Packet City of Seward, Alaska Council Agenda August 22, 2016 Page 1 1963 1965 2005 The City of Seward, Alaska CITY COUNCIL MEETING AGENDA {Please silence all cellular phones during the meeting} August 22, 2016 7:00 p.m. Council Chambers Jean Bardarson Mayor Term Expires 2017 Marianna Keil Vice Mayor Term Expires 2016 Ristine Casagranda Council Member Term Expires 2016 David Squires Council Member Term Expires 2017 Dale Butts Council Member Term Expires 2016 Sue McClure Council Member Term Expires 2017 Deborah Altermatt Council Member Term Expires 2017 James Hunt City Manager Johanna Kinney City Clerk Will Earnhart City Attorney 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING [Those who have signed in will be given the first opportunity to speak. Time is limited to 3 minutes per speaker and 36 minutes total time for this agenda item.] 5. APPROVAL OF AGENDA AND CONSENT AGENDA [Approval of Consent Agenda passes all routine items indicated by asterisk (*). Consent Agenda items are not considered separately unless a council member so requests. In the event of such a request, the item is returned to the Regular Agenda] 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS A. Proclamations and Awards 1. Founders Day B. Chamber of Commerce Report C. Borough Assembly Report D. City Manager Report E. Other Reports and Presentations 1. Ballot Propositions Presentation 1 City of Seward, Alaska Council Agenda August 22, 2016 Page 2 7. PUBLIC HEARINGS – None 8. UNFINISHED BUSINESS – None 9. NEW BUSINESS A. Resolutions 1. Resolution 2016-052, Authorizing The City Of Seward To Issue Harbor Improvement Revenue Refunding Bond, 2016 In The Principal Amount Of Not To Exceed $1,300,000 To Refund Certain Outstanding Harbor Improvement Revenue Bonds Of The City, Fixing Certain Details Of Such Bond, Authorizing The Sale Of Such Bond, And Providing For Related Matters. 2. Resolution 2016-053, Authorizing The City Manager To Enter Into A Professional Services Agreement In An Amount Not Exceed $58,903.00 With Harmon Construction, Inc. To Provide Abatement, Demolition, And Removal Services For Derelict City-Owned Structures Located At 408 Madison And 516 – 522 First Avenue, And Appropriating Funds. B. Other New Business Items *1. Approval of the June 27, July 11, July 25, and August 8, 2016 Regular City Council Meeting Minutes. 10. INFORMATIONAL ITEMS AND REPORTS (No Action Required) A. June 2016 Financials for the City of Seward and Providence Seward Medical Center. B. Memo thanking Seward businesses and home stay families for their support of the 44th Annual Sister City Student Exchange Program. 11. COUNCIL COMMENTS 12. CITIZEN COMMENTS 13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS 14. ADJOURNMENT * 2 P R O C L A M A T I O N 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, 2016, the Resurrection Bay Historical Society will be hosting a Founder’s Day Open House at the Library Museum Community Room from 1:00 to 4:00 p.m., with free admission to the museum. NOW THEREFORE, I, Jean Bardarson, Mayor of the City of Seward, Alaska, do hereby proclaim Sunday, August 28, 2016 as: Founders Day Dated this 22nd day of August, 2016 THE CITY OF SEWARD, ALASKA _______________________________ Jean Bardarson, Mayor 3 FOUNDERS DAY CELEBRATION HOSTED BY RESURRECTION BAY HISTORICAL SOCIETY SUNDAY, AUGUST 28, 2016 LIBRARY MUSEUM COMMUNITY ROOM 1:00 pm – 4:00 pm Door Prizes – Cake – Refreshments –Historical Video Seward Flag Award at 2:00 pm Come meet the winner of the contest for the new Seward Flag, Katelyn Correa Visit the Museum – FREE 4:30 pm Guided Historical - Iditarod Trail Walk Along the waterfront – start location in front of Alaska SeaLife Center HAPPY BIRTHDAY SEWARD 113 YEARS OLD! 4 CITY OF SEWARD Jim Hunt, City Manager P.O. Box 167 Telephone (907) 224-4047 Seward, AK 99664 Facsimile (907) 224-4038 MANAGER’S REPORT August 5, 2016 thru August 12, 2016 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 SMIC weekly teleconference Teleconference with Transco Teleconference with Permitting on Snow River AMLIJA Monthly Safety teleconference Meeting with department heads Attended AML Summer Legislative Conference in Wasilla ELECTRIC Number of outages/trouble calls in August: 1 Number of new Job Orders started since Jan. 1, 2016: 36 Electric department staff and consultants met with Hamilton’s Representative Brian O’Dowd, the current contractor, is working on the break water project in SMIC, at the Snow river site. A few days later the City was supplied with an estimate for this work. We have submitted this to the US department of Agriculture for the EWP grant. Unfortunately, one of the requirements for the grant is that we cannot start the construction prior to approval. Because of this we are attempting to get a more definitive response as to whether or not this project is eligible and will be funded quickly. The RCA has requested the participants in the Transco effort to appear at a public meeting on August 17th to submit testimony. Staff from the electric department will present to answer questions if called upon. As per our agreement, Chugach Electric has hired a contractor to do clearing of the City’s transmission right-of-way between Dave’s Creek, in Cooper Landing, and Lawing Substation. This work is done every three years. PUBLIC WORKS This week the Public Works crew was busy all over town. Starting my second week off quickly on Sunday night. The rains brought in some flooding of Japanese Creek and damage to Diekeraff Road. Sunday one operator was in to work on minimizing damage to roads and structures. -Loader breakdown. The falls also added a large amount of gravel above the bridge. We monitored the level all night and had Metco remove material on Monday. Grading roads all week barely seemed to help. Lowell Point Road needs material badly. Our operator reports hitting bedrock in several areas. This is very tough on our equipment. The newest grader is down and is beyond our capabilities to repair. We need to send it to CMI in Anchorage for diagnosis and repair. 5  Aside from the normal duties we also had a few digs for hookups. One had a road closure. The water and sewer lines were 15’-16’ deep  On Saturday Lift Station 1 had a pump failure. We tried to repair but had to replace it. Several pieces didn’t match up and the wiring was different. Finally got it up and running late on Saturday night. Three guys worked all day to be sure the sewer was working for town.  Attended Meeting with City Manager and Assistant City Manager to discuss Public Works tasks and training.  Met with both building maintenance guys this week. Both Matt and Dave seem receptive to any changes needed in schedules and duties.  Met with DOT. Carl High, Kevin Knowtek, and Greg(from Anchorage). Good discussions.  Met with AK Railroad’s Christy Terry and her director for introduction and RR plans in Seward. HARBOR  We had construction meetings with Hamilton Construction and R&M for the SMIC breakwater project on 8-11-2016 and 8-18-2016.  Hamilton Construction is continuing to stock pile rock in Kodiak, and currently barging rock from Kodiak and stockpiling the rock in Seward, they are placing rock in the water. (Attached is a picture of the breakwater breaking water at a minus tide.) 6  The harbor staff has filled low areas at SMIC with dredge from the SMIC project. Metco has compacted the area.  For the upcoming haul out season at SMIC the Electrical department has installed five new meters and with a contracted electrician has double those meters, we now have 10 additional stalls with 50 amp power each.  If you have seen a new side by side running around the Harbor, this is a new loaner program that Alaska Mining and Diving has started utilizing government agencies, they loan us a vehicle for 3 to 6 months to use throughout the Harbor area free of charge. Once the 3 or 6 months is up the City has first option to purchase, if the City does not want to buy the vehicle they haul it back to Anchorage to sell as a used vehicle. The benefit for AM&D is for all of the folks that see their vehicle working hard in Seward and bring visibility to this exciting new model. Breakwater breaking water at a minus tide FINANCE  Finance is working with the Alaska Municipal Bond Bank to determine whether our oldest outstanding bond issue – a 2007 Harbor Bond – may be a candidate for refinancing at today’s low interest rates. The outstanding balance on those bonds is currently $1,075,000, so the overall savings would be in the neighborhood of $75,000 over the remaining 5 years of the bonds, or around 6.9% savings given today’s interest rates. We would be working with Cindy Cartledge of JDO on the refunding.  We are reaching out to Chugach and Harris (software) for training regarding configuring electrical meters, as part of our new-staff training. On a related matter, we are in discussions with the electric department regarding the potential benefits of migrating toward automated (remote-read) meter reading. While the investment in such a transition would be expensive, industry studies show that the return on investment is relatively short given the ability to avoid current meter reading costs, older meters tend to slow down over time, electronic meters have an accuracy rating > 99%, and providing quicker access to better data can provide cost savings to both the utility and the customer.  Staff training for the new utility billing folks and deputy finance director is going very well and we are seeing significant benefits from the reinstatement of one position in Finance on both staff morale and productivity.  Through June 30, sales tax collections for the year are neck-in-neck with the prior year, coming in $1,224 higher, representing an increase in taxable sales of $30,604. Keep in mind that there is a difference in timing between sales tax collections (receipts by the City) and sales tax revenues (reported to the Borough, but not necessarily forwarded yet to the City). 7 PARKS AND RECREATION  Sports and Rec has vacated the AVTEC Gym. Sports & Rec Coordinators office will be located at the Teen Rec Room and his phone has changed to 224-4057.  TYC has been busy all around town. Olympic week Aug 8 – 12th had the kids doing a torch run of 2 miles a day. 40+ kids this week have kept the staff on their toes. Our day trip to Jumping Junction in Kenai was a blast for everyone.  The Teen Rec Room will be hosting a concert with the Conway Seavey Band for Middle and High Schoolers Sat, Sep 3rd from 7 – 9pm  The parking department is more than halfway through the season, with 4.5% increase in cash customer over 2015 a 2% increase in credit card and 2.5% overall on daily transactions from this time last year. We have issued 600 slip holders permits (of those over 100 customers transfer between vehicles) 280 Harbor area employee permits, 145 vehicles with trailer permits, 20 visitor permits and 2 company vehicles a 35% increase overall from last year and still issuing them, one or two a day but starting to slow down.  The Park Maintenance and Campgrounds crew was happy to have a break in the weather this last week as we were able to catch up on some much needed landscaping before the Silver Salmon Derby. We are still experiencing increased visitor ship, up 10% and revenue, up 38%, compared to 2015. Though we are losing many of our seasonal staff, we are still keeping up with daily campground management and regular park maintenance. LIBRARY  July 2016 Statistics 21407 Front Door Counter; 61 Room Uses; 807 Museum Admission ;7 Museum Research Questions; 32 Programs; 618 Iditarod Movie Admission; 16 Passport Applications; 10 Proctored Exams; 1403 Public Computer Sessions  Join the Resurrection Bay Historical Society for a fun filled Founder’s Day Celebration on Sunday, August 28th, 1-4pm. Museum admission will be free.  Join us for the last installment of Independent Film Night on Wednesday, September 7th, at 6:00 PM, featuring The Grocer’s Son from the Independent Film Movement. Light refreshments provided. This program is for ages 18 and up.  Story Time returns Friday, September 16th! Join us in the Children’s Room on Fridays at 10:30 AM for Story Time. This program is for children under 5 and their care givers. Woodlawn Cemetery Workers’ Project day 8 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2016-052 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY OF SEWARD TO ISSUE HARBOR IMPROVEMENT REVENUE REFUNDING BOND, 2016 IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $1,300,000 TO REFUND CERTAIN OUTSTANDING HARBOR IMPROVEMENT REVENUE BONDS OF THE CITY, FIXING CERTAIN DETAILS OF SUCH BOND, AUTHORIZING THE SALE OF SUCH BOND, AND PROVIDING FOR RELATED MATTERS WHEREAS, the City of Seward, Alaska (the "City") is a home rule city and under Section 11 of Article X of the Alaska Constitution may exercise all legislative power not prohibited by law or the Charter of the City, and it has been determined that the matters set forth in this resolution are not prohibited by law or the Charter; and WHEREAS, there is now outstanding the principal amount of $1,265,000 of Harbor Improvement Revenue Refunding Bond, 2007 of the City (the "2007 Bond") issued under Resolution Nos. 2000-094 and 2006-128 of the City; and WHEREAS, the Council finds that it is in the best interest of the City to provide for the refunding, including the payment of principal of and interest on, those principal installments of the 2007 Bond maturing on and after December 1, 2017, in the aggregate principal amount of $1,075,000, whose refunding the City Manager or City Finance Director determines will produce the debt service savings specified in this resolution, by the issuance of a harbor improvement revenue refunding bond in the aggregate principal amount of not to exceed $1,300,000 (the "Bond"); and WHEREAS, Section 11.2(a) of the home rule charter of the City provides that the City may issue refunding bonds without ratification of the voters; and WHEREAS, the Council finds that it is necessary and appropriate to delegate to each of the City Manager and City Finance Director authority to determine the principal installment amounts, interest rates and other details of the Bond, and to determine other matters pertaining to the Bond that are not provided for in this resolution; and WHEREAS, the Alaska Municipal Bond Bank (the “Bond Bank”) will purchase the Bond with proceeds of its general obligation bonds pursuant to the terms of an amendatory loan agreement (the “Amendatory Loan Agreement”); and WHEREAS, the Amendatory Loan Agreement will amend the Loan Agreement dated as of December 1, 2000, as amended on January 1, 2007, to provide for the refunding of the herein defined 9 CITY OF SEWARD, ALASKA RESOLUTION 2016-052 _________________________ Refunded Bond, and related matters. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. Definitions. Terms not herein defined shall have the meaning set forth in the herein defined 2000 Resolution. The following terms shall have the following meanings in this Resolution: (A) "Amendatory Loan Agreement" means the Amendatory Loan Agreement between the City and the Bond Bank, amending the Loan Agreement to provide for the refunding of the Refunded Bond through their exchange for the Bond, and related matters. (B) "Bond" means the "Harbor Improvement Revenue Refunding Bond, 2016" of the City of Seward, the issuance and sale of which are authorized herein. (C) "Bond Bank" means the Alaska Municipal Bond Bank, a public corporation of the State of Alaska. (D) "Bond Bank Bonds" means the General Obligation Refunding Bonds, 2016 Series Three (Governmental Purpose) of the Bond Bank. (E) "Bond Register" means the registration books maintained by the Registrar, which include the names and addresses of the Registered Owners of the Bond or their nominees. (F) "City" means the City of Seward, a municipal corporation of the State of Alaska, organized as a home rule city under Title 29 of the Alaska Statutes. (G) "City Finance Director" means the Finance Director of the City. (H) "Code" means the Internal Revenue Code of 1986, as amended from time to time, together with all regulations applicable thereto. (I) "Continuing Disclosure Certificate" means a certificate relating to the 2016 Bond executed in connection, and delivered by the City, with respect to compliance with paragraph (b)(5) of Rule 15c2-12 of the Securities and Exchange Commission, as such certificate may be amended or supplemented from time to time. (J) "Council" means the Council of the City of Seward, as the general legislative authority of the City of Seward, as the same shall be duly and regularly constituted from time to time. (K) "Loan Agreement" means the Loan Agreement between the City and the Bond Bank 10 CITY OF SEWARD, ALASKA RESOLUTION 2016-052 _________________________ dated as of December 1, 2000, as amended on January 1, 2007, and as further amended by the Amendatory Loan Agreement. (L) "Refunded Bond" means the principal installments of the 2007 Bond whose refunding is approved by the City Manager or City Finance Director under Section 12. (M) "Registered Owner" means the person named as the registered owner of a Bond in the Bond Register. (N) "Registrar" means the City Finance Director. (O) "Resolution" means this Resolution 2016-___of the City. (P) "2000 Resolution" means the City’s Resolution 2000-94, approved by the Council on September 11, 2000, authorizing the issuance of harbor revenue bonds. (Q) "2006 Resolution" means the City's Resolution 2006-128, approved by the Council on November 27, 2006, authorizing the issuance and sale of the 2007 Bond. (R) "2007 Bond" means the outstanding $1,265,000 Harbor Improvement Revenue Refunding Bond, 2007 of the City. Section 2. Authorization of Bond and Purpose of Issuance. For the purpose of effecting the refunding by exchange of the Refunded Bond in the manner set forth hereinafter and in the Amendatory Loan Agreement, the City hereby authorizes and determines to issue and sell the Bond in the aggregate principal amount of not to exceed $1,300,000. Section 3. Obligation of Bond. The Pledged Revenues, as defined in the 2000 Resolution, are hereby pledged to the payment of the principal of and interest on the Bond as the same become due and payable. Section 4. Designation, Maturities, Interest Rates, and Other Details of the Bond. The Bond shall be designated "City of Seward, Alaska, Harbor Improvement Revenue Refunding Bond, 2016." The Bond shall be in denominations of $5,000 or any integral multiple thereof and with such designation as the Registrar deems necessary for purposes of identification, and may have endorsed thereon such legends or text as may be necessary or appropriate to conform to the rules and regulations of any governmental authority or any usage or requirement of law with respect thereto. Installments of principal of the Bond shall be paid annually commencing on or after January 1, 2017 and continuing no later than December 31, 2021. The Bond shall bear interest from its dated date, payment commencing on a date on or after December 1, 2016, and semi-annually thereafter in each year. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day 11 CITY OF SEWARD, ALASKA RESOLUTION 2016-052 _________________________ months. The dated date, the principal and interest payment dates, the aggregate principal amount, the principal amount of each installment, and the interest rates for each principal installment of the Bond shall be determined at the time of execution of the Amendatory Loan Agreement under Section 16. Section 5. Redemption. The Bond may not be redeemed prior to maturity. Section 6. Form of Bond. The Bond shall be in substantially the following form, with such variations, omissions and insertions as may be required or permitted by this Resolution: UNITED STATES OF AMERICA STATE OF ALASKA CITY OF SEWARD (A Municipal Corporation of the State of Alaska) NO. _____ $__________ HARBOR IMPROVEMENT REVENUE REFUNDING BOND, 2016 REGISTERED OWNER: PRINCIPAL AMOUNT: The City of Seward (the "City"), a municipal corporation of the state of Alaska, hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, its registered assigns, the Principal Amount indicated above in the following installments on December of each of the following years, and to pay interest on such installments from the date hereof, payable on June 1, 20___ and semiannually thereafter on the 1st days of December and June of each year, at the rates per annum as follows: Year Principal Amount Interest Rate This Bond is a special limited obligation of the City of Seward, payable solely from Pledged Revenues as the same shall become due. The full faith and credit of the City are not pledged for the 12 CITY OF SEWARD, ALASKA RESOLUTION 2016-052 _________________________ payment of the principal of and interest on the Bond. For so long as this Bond is owned by the Alaska Municipal Bond Bank (the "Bond Bank"), payment of principal and interest shall be made as provided in the Loan Agreement between the Bond Bank and the City, dated as of December 1, 2000, as amended on January 1, 2007 and November __, 2016 (collectively, the "Loan Agreement"). In the event that this Bond is no longer owned by the Bond Bank, installments of principal and interest on this Bond shall be paid by check or draft mailed by first class mall to the Registered Owner as of the close of business on the fifteenth day of the month preceding each installment payment date; provided that the final installment of principal and interest on this Bond shall be payable upon presentation and surrender of this Bond by the Registered Owner at the office of the Registrar. Interest will be computed on the basis of a 360- day year consisting of twelve 30-day months. Both principal of and interest on this Bond are payable in lawful money of the United States of America which, on the respective dates of payment thereof, shall be legal tender for the payment of public and private debts. This Bond the Harbor Improvement Revenue Refunding Bond, 2016 of the City of Seward, Alaska, aggregating $_______________ in principal amount, and constituting the Bond authorized for the purpose of refunding a certain harbor revenue bonds issued by the City, and is issued under Resolution 2016- _________ of the City entitled: A RESOLUTION AUTHORIZING THE CITY OF SEWARD TO ISSUE HARBOR IMPROVEMENT REVENUE REFUNDING BOND, 2016 IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $1,300,000 TO REFUND CERTAIN OUTSTANDING HARBOR IMPROVEMENT REVENUE REFUNDING BONDS OF THE CITY, FIXING CERTAIN DETAILS OF SUCH BOND AND AUTHORIZING THE SALE OF SUCH BOND, AND PROVIDING FOR RELATED MATTERS (the "Resolution"). This Bond is not subject to redemption prior to maturity. This Bond is transferable as provided in the Resolution, (i) only upon the bond register of the City, and (ii) upon surrender of this Bond together with a written instrument of transfer duly executed by the registered owner or the duly authorized attorney of the registered owner, and thereupon a new fully registered Bond or Bonds in the same aggregate principal amount and maturity shall be issued to the transferee in exchange therefor as provided in the Resolution and upon the payment of charges, if any, as therein prescribed. The City may treat and consider the person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price, if any, hereof and interest due hereon and for all other purposes whatsoever. 13 CITY OF SEWARD, ALASKA RESOLUTION 2016-052 _________________________ IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts or things required by the constitution or statutes of the State of Alaska and the home rule charter of the City to exist, to have happened or to have been performed precedent to or in the issuance of this Bond exist, have happened and have been performed, and that this Bond, together with all other indebtedness of the City, is within every debt and other limit prescribed by said constitution, statutes, or charter. IN WITNESS WHEREOF, THE CITY OF SEWARD, ALASKA, has caused this Bond to be signed in its name and on its behalf by the manual or facsimile signature of its Mayor and its corporate seal (or a facsimile thereof) to be impressed or otherwise reproduced hereon and attested by the manual or facsimile signature of its Clerk, all as of the ______ day of _______________, 2016. __________________________________ _______________________, Mayor A T T E S T: ______________________________ Johanna Kinney, CMC, City Clerk [SEAL] (Form of Assignment) ASSIGNMENT FOR VALUE RECEIVED, the undersigned sells assigns and transfers unto (Please insert Social Security or taxpayer identification number of transferee) (Please print or typewrite name and address, including zip code of Transferee) the within bond and does hereby irrevocably constitute and appoint ___________, of ____________________, or its successor, as Registrar, to transfer said bond on the books kept for registration thereof with full power of substitution in the premises. Dated: 14 CITY OF SEWARD, ALASKA RESOLUTION 2016-052 _________________________ __________________________________________ _ NOTE: The signature on this Assignment must correspond with the name of the registered owner as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. Signature Guaranteed: Section 7. Execution. The Bond shall be executed in the name of the City by the Mayor or her/his designee, and its corporate seal shall be impressed or otherwise reproduced thereon and attested by the City Clerk. The execution of the Bond on behalf of the City by persons who at the time of the execution are duly authorized to hold the proper offices shall be valid and sufficient for all purposes, although any such person shall have ceased to hold office at the time of authentication of the Bond or shall not have held office on the date of the Bond. Section 8. Payment of Principal and Interest. The Bond shall be payable in lawful money of the United States of America which at the time of payment is legal tender for the payment of public and private debts. As long as the Bond Bank is the Registered Owner of the Bond, payment of principal and interest on the Bond shall be made as provided in the Loan Agreement. If the Bond Bank is no longer the Registered Owner of the Bond, installments of principal and interest on the Bond shall be paid by check mailed by first class mail to the Registered Owner as of the fifteenth day of the month preceding each installment payment date at the address appearing on the Bond Register; provided that the final installment of principal and interest on the Bond shall be payable upon presentation and surrender of the Bond by the Registered Owner at the office of the Registrar. Section 9. Registration. The Bond shall be issued only in registered form as to both principal and interest. The City designates the City Finance Director as Registrar for the Bond. The Registrar shall keep, or cause to be kept, the Bond Register at the principal office of the City. The City covenants that, until the Bond has been surrendered and canceled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. The City and the Registrar may treat the person in whose name any Bond shall be registered as the absolute owner of such Bond for all purposes, whether or not the Bond shall be overdue, and all payments of principal of and interest on a Bond made to the Registered Owner thereof or upon its order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City nor the Registrar shall be affected by any notice to the contrary. Section 10. Transfer and Exchange. The Bond shall be transferred only upon the books for the registration and transfer of the Bond kept at the office of the Registrar. Upon surrender for transfer or exchange of the Bond at such office, with a written instrument of transfer or authorization for exchange in form and with guaranty of signature satisfactory to the Registrar, duly executed by 15 CITY OF SEWARD, ALASKA RESOLUTION 2016-052 _________________________ the Registered Owner or the duly authorized attorney of the Registered Owner, the City shall execute and deliver an equal aggregate principal amount of Bond of the same maturity of any authorized denominations, subject to such reasonable regulations as the City may prescribe and upon payment sufficient to reimburse it for any tax, fee or other governmental charge required to be paid in connection with such transfer or exchange. The Bond surrendered for transfer or exchange shall be canceled by the Registrar. Section 11. Bond Mutilated, Destroyed, Stolen or Lost. Upon surrender to the Registrar of a mutilated Bond, the City shall execute and deliver a new Bond of like maturity and principal amount. Upon filing with the Registrar of evidence satisfactory to the City that a Bond has been destroyed, stolen or lost and of the ownership thereof, and upon furnishing the City with indemnity satisfactory to it, the City shall execute and deliver a new Bond of like maturity and principal amount. The person requesting the execution and delivery of a new Bond under this section shall comply with such other reasonable regulations as the City may prescribe and pay such expenses as the City may incur in connection therewith. Section 12. Designation of Refunded Bonds. The City Manager and the City Finance Director each is authorized to designate which principal installments of the 2007 Bond are authorized to be refunded in this Resolution shall be refunded, provided that the refunding of the 2007 Bond so designated shall realize an aggregate debt service savings, net of all issuance costs and underwriting discount, on a present value basis. Section 13. Parity Bond Covenants. The Bond is a Parity Bond referred to in Section 16 of the 2000 Resolution. The City hereby covenants with the owners of the Bond, so long as the Bond remains outstanding: (A) Pursuant to Section 16(A)(1) of the 2000 Resolution, the City will pay into and maintain in the Reserve Subaccount the amounts required by Section 13 of the 2000 Resolution to be paid into and maintained in such Subaccount. (B) Pursuant to Section 16(A)(1) of the 2000 Resolution, the City will establish, maintain and collect Passenger Fees and Net Revenues in each Fiscal Year that will provide Pledged Revenues in an amount equal to the amount of the Annual Debt Service Requirement for such year on all outstanding Parity Bonds. (C) Pursuant to Section 16(A)(2) of the 2000 Resolution, unless otherwise exempt, from the date the Bond is issued, the City shall have on file a certificate showing that the "annual income available for revenue debt service" is at least equal to 1.20 times the maximum Annual Debt Service Requirement on all outstanding Parity Bonds. (D) Pursuant to Section 16(B) of the 2000 Resolution, issuance of the Bond does not require a greater amount to be paid out of Pledged Revenues for principal and interest 16 CITY OF SEWARD, ALASKA RESOLUTION 2016-052 _________________________ over the life of the Bond, and the other applicable, and required, provisions of Section 16 of the 2000 Resolution are complied with. Section 14. Tax Covenants. The City covenants to comply with any and all applicable requirements set forth in the Code in effect from time to time to the extent that such compliance shall be necessary for the exclusion of the interest on the Bond from gross income for federal income tax purposes. The City covenants that it will make no use of the proceeds of the Bond which will cause the Bond or the Refunded Bonds to be "arbitrage bonds" subject to federal income taxation by reason of section 148 of the Code. The City covenants that it will not take or permit any action that would cause the Bond to be "private activity bonds" as defined in Section 141 of the Code. Section 15. Amendatory and Supplemental Resolutions. (A) The Council from time to time and at any time may adopt a resolution or resolutions supplemental hereto, which resolution or resolutions thereafter shall become a part of this resolution, for any one or more of the following purposes: (1) To add to the covenants and agreements of the City in this Resolution, other covenants and agreements thereafter to be observed, or to surrender any right or power herein reserved to or conferred upon the City. (2) To make such provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective provision contained in this Resolution or in regard to matters or questions arising under this Resolution as the Council may deem necessary or desirable and not inconsistent with this Resolution and which shall not adversely affect the interests of the Registered Owners of the Bond. Any such supplemental resolution may be adopted without the consent of the Registered Owner of the Bond at any time outstanding, notwithstanding any of the provisions of subsection (B) of this section. (B) With the consent of the Registered Owners of not less than 60 percent in aggregate principal amount of the Bond at the time outstanding, the Council may adopt a resolution or resolutions supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Resolution or of any supplemental resolution; provided, however, that no such supplemental resolution shall: (1) extend the fixed maturity of the Bond, or reduce the rate of interest thereon, or extend the time of payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the Registered Owners of the Bond so affected; or 17 CITY OF SEWARD, ALASKA RESOLUTION 2016-052 _________________________ (2) reduce the aforesaid percentage of Registered Owners of the Bond required to approve any such supplemental resolution without the consent of the Registered Owners of the Bond then outstanding. It shall not be necessary for the consent of the Registered Owners of the Bond under this subsection to approve the particular form of any proposed supplemental resolution, but it shall be sufficient if such consent approves the substance thereof. (C) Upon the adoption of any supplemental resolution under this section, this Resolution shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations under this Resolution of the City and all Registered Owners of the outstanding Bond shall thereafter be subject in all respects to such modification and amendment, and all the terms and conditions of the supplemental resolution shall be deemed to be part of the terms and conditions of this Resolution for any and all purposes. (D) Each Bond executed and delivered after the execution of any supplemental resolution adopted under this section may bear a notation as to any matter provided for in such supplemental resolution, and if such supplemental resolution shall so provide, a new Bond modified so as to conform, in the opinion of the City, to any modification of this Resolution contained in any such supplemental resolution may be prepared by the City and delivered without cost to the Registered Owners of the Bond then outstanding, upon surrender for cancellation of such Bond in equal aggregate principal amounts. Section 15. Defeasance. In the event money and/or non-callable direct obligations of, or obligations the timely payment of principal of and interest on which are unconditionally guaranteed by, the United States of America or an agency or instrumentality of the United States of America, maturing at such times and bearing interest to be earned thereon in amounts sufficient to redeem and retire any or all of the Bond in accordance with its terms are set aside in a special trust account to effect such redemption or retirement and such moneys and the principal of and interest on such obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made to pay or secure the payment of the principal of and interest on such Bond and such Bond, or portion thereof, shall be deemed not to be outstanding. Section 16. Exchange of Bond; Amendatory Loan Agreement. The Bond shall be delivered to the Bond Bank in exchange for the Refunded Bond. The City has been advised by the Bond Bank that bond market conditions are fluctuating and that the most favorable market conditions for the sale of the Bond Bank Bonds may not occur on the date of a regular Council meeting. The Council has determined that it would be inconvenient to hold a special meeting on short notice to approve the terms of the Bond. Therefore, the Council hereby determines that it is in the best interest of the City to delegate the authority to approve the terms of the Bond as provided herein. Each of the City Manager and the City Finance Director is hereby authorized to determine the aggregate principal amount, principal installment amounts, interest rates, yields, dated date, principal and interest 18 CITY OF SEWARD, ALASKA RESOLUTION 2016-052 _________________________ payment dates, and redemption terms, if any, for the Bond, so that such terms of the Bond conform to the terms of the corresponding Bond Bank Bonds; provided that the interest rate on each principal installment of the Bond shall not exceed the interest rate on the corresponding maturity of the Bond Bank Bonds. Based upon the foregoing determination, the City Manager and the City Finance Director each is authorized to negotiate and execute an Amendatory Loan Agreement. The authority granted to the City Manager and City Finance Director by this section shall expire 180 days after the effective date of this Resolution. If the City Manager or City Finance Director has not executed an Amendatory Loan Agreement within 180 days from the effective date of this Resolution, the Amendatory Loan Agreement may not be executed on behalf of the City without further authorization from the Council. Section 17. Official Statement. The City Manager and City Finance Director are each hereby authorized to approve the form of the preliminary and the final Official Statement for the Bond Bank Bonds as each pertains to the City and the Bond. Section 18. Authority of Officers. The Mayor, the City Manager, the City Finance Director, and the City Clerk are, and each of them hereby is, authorized and directed to do and perform all things and determine all matters not determined by this Resolution, to the end that the City may carry out its obligations under the Bond and this Resolution. Section 19. Miscellaneous. No recourse shall be had for the payment of the principal of or the interest on the Bond or for any claim based thereon or on this Resolution against any member of the Council or officer of the City or any person executing the Bond. The Bond is not and shall not be in any way a debt or liability of the State of Alaska or of any political subdivision thereof, except the City, and does not and shall not create or constitute an indebtedness or obligation, either legal, moral or otherwise, of said state or of any political subdivision thereof, except the City. Section 20. Continuing Disclosure. The City hereby covenants and agrees that it will execute and carry out all of the provisions of a Continuing Disclosure Certificate in form and substance satisfactory to the Bond Bank if execution and delivery of such Certificate is required by the Bond Bank. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate shall not be considered a default of the City's obligations under this Resolution or the Bond; however, the beneficial owner of any Bond or Bond Bank Bond may bring an action for specific performance, to cause the City to comply with its obligations under this section. Section 21. Severability. If any one or more of the provisions of this Resolution shall be declared by any court of competent jurisdiction to be contrary to law, then such provision shall be null and void and shall be deemed separable from the remaining provisions of this Resolution and shall in no way affect the validity of the other provisions of this Resolution or of the Bond. 19 CITY OF SEWARD, ALASKA RESOLUTION 2016-052 _________________________ Section 22. This resolution shall take effect thirty (30) days following adoption by the Seward City Council. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd day of August, 2016. THE CITY OF SEWARD, ALASKA __________________________________ Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: ____________________________________ Brenda J. Ballou, CMC Acting City Clerk (City Seal) 20 Council Agenda St.tement Meeting Date: August 22, 2016 uea41 To: City Council itoat, 1 4tsswP Through: Jim Hunt, City Manager, From: Kristin Erchinger,Finance Director Agenda Item: Refunding 2007 Harbor Revenue Bonds BACKGROUND&JUSTIFICATION: On November 27,2006,theSeward City Council approved Resolution 2006-128 authorizing the issuance of$2,650,000 of Harbor improvement revenue refunding bonds for the purpose of refunding Harbor bonds which were originally issued in 2000 for the purpose of constructing E-Float and fish cleaning stations. The original bonds were issued in the amount of 3 Million as authorized by Resolution 2000-094. As of August 1, 2016, the remaining balanceon these bonds is 1,075,000. Interest rates remain at historic low levels. A recent analysis by RBCCapital Markets on behalf of the Alaska Municipal BondBank, determined thattheoutstandingharbor bond is a candidate for net present value savings of approximately 74,447,net of all costs,over the life of this bond. This is equal to an annual savings of approximately$12,201. Generally,the City looks favorably on a refunding when it can achieve a NPV savings of at least 3%;this analysis shows a potential savings of approximately 6.9%. The intent is to issue new bonds for the same approximate maturity as the old bonds,with a slight adjustment to synchronize the bond repayment schedule with the AMBBA. INTENT: To refund the Harbor Enterprise Fund Revenue Bonds in order to reduce lifetime borrowing costs of debt. The refunding is notintended to extend maturities unless a minor extension is required to sync up the bond payment schedule with other participants in the bond issuance. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan(2020 Comp Plan):X 2. Strategic Plan: X 3. Other: Resolution 2006-128; Resolution 2000-094 X FISCAL NOTE: This action is intended to result in a reduction in annual debt costs of approximately$12,201 (current annual debt costs are approximately $246,000), for an estimated net present value savings of$74,447. The maximum requested amount of the refunding is higher thanthe outstanding balance on the bonds, toaccount for the fact that the refunding escrow accounts must pay interest through the call dates rather than just the outstanding principal amounts being refunded. Approved by Finance Department: 4 Matte ATTORNEY REVIEW: Yes X No This information was prepared and reviewed by Cynthia Cartledge of Jermain, Dunnagan& Owens, serving as the City's bond counsel on thisrefunding. RECOMMENDATION: Approve City Council Resolution 2016-05Z,authorizing the City of Seward to issue refunding revenue bonds in a principal amount not to exceed$1,300,000,authorizing the execution of a loan agreement between the City of Seward and the Alaska Municipal Bond Bank, authorizing the sale of such bonds,and providing for related matters. 21 I I I Sponsored by: Janke CITY OF SEWARD, ALASKA RESOLUTION 2000-094 A RESOLUTION OF mE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, PROVIDING FOR THE ISSUANCE OF HARBOR IMPROVEMENT REVENUE BONDS OF THE CITY IN mE AGGREGATE PRINCIPALAMOUNT OF NOT TO EXCEED $3,000,000 FOR THE PURPOSE OF PROVIDING AMOUNTS TO ACQUIRE, CONSTRUCT AND INSTALL NECESSARY ADDITIONS AND IMPROVEMENTS TO THE CITY'S HARBOR SYSTEM AND TO DO ALL mINGS NECESSARILY INCIDENTAL THERETO, AND TO PAY THE COSTS OF BOND ISSUANCE; FIXING CERTAIN COVENANTS AND PROTECTIVE PROVISIONS SAFEGUARDING mE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SAID BONDS; PROVIDING THAT ADDITIONAL HARBOR IMPROVEMENT REVENUE BONDS MAY BE ISSUED ON A PARITY WITH SUCHBONDS UPON COMPLIANCE WITH CERTAIN CONDITIONS; AND PROVIDING FOR THE DATE, FORM, TERMS, MATURITIES AND MANNER OF SALE OF THE BONDS. WHEREAS, the City of Seward, Alaska, (the "City") owns, operates and maintains a harbor system which is in need of certain additions, improvements and extensions; and WHEREAS, the Constitution and statutes ofthe State of Alaska and the Charter of the City permit the City to issue revenue bonds to finance any project which serves a public purpose which bonds are secured only by the revenues of the project and which do not constitute a debt or pledge of the faith and credit or taxing power of the City and which may be authorized by the Council and do not require ratification by the electors of the City; and WHEREAS, it is necessary to establish the fonn, conditions, covenants and method of sale of such bonds and to make provision for establishing the amount, maturities, interest rates and redemption rights and other terms thereof; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SEWARD, ALASKA: Section 1. Purpose. The purpose of this resolution is to authorize the issuance and sale of not to exceed $3,000,000 of harbor improvement revenue bonds, to fix the form, covenants and method of sale of said bonds, to provide for establishing the amount, maturities, interest rates, redemption rights and other terms of said bonds and to fix the conditions under which additional harbor improvement revenue bonds may be issued on a parity with the said bonds. Pat\clerkc\Current Work\COUNCIL\Resolutions\OO-094a.wpd Page I 22 Section 2. Definitions. As used in this resolution, unless a different meaning clearly appears from the context: Acquired Obligations" means and includes any ofthe following securities, if and to the extent the same are at the time legal for investment offunds of the City: any noncallable bonds or other noncallable obligations which as to principal and interest constitute direct obligations of, or are unconditionally guaranteed by, the United States of America, including obligations of any federal agency or corporation which has been or may hereafter be created pursuant to an act of Congress as an agency or instrumentality of the United States ofAmerica to the extent unconditionally guaranteed by the United States of America. Annual Debt Service Requirement" means, with respect to any particular Fiscal Year and to any specified bonds, an amount equal to (i) interest accruing during such Fiscal Year on such bonds, except to the extent such interest is to be paid from deposits in the Debt Service Subaccount from bond proceeds, (ii) the principal amount of such bonds due during such Fiscal Year for which no sinking fund installments have been established, plus (Hi) the unsatisfied balance of any sinking fund installment for such bonds due during such Fiscal Year. Arbitrage and Tax Certificate" means the certificate executed and delivered by the City at the time of issuance and delivery of the Bonds setting forth the City's expectations as to the use of Bond proceeds. Bond Account" means the Harbor Improvement Revenue Bond Account created by Section 12 hereof. Bond Register" means the registration books maintained by the Registrar containing the names and addresses of the owners of the Bonds. Bonds" means the City of Seward, Alaska, Harbor Improvement Revenue Bonds, 2000. Bond Year" has the meaning given such term in the Arbitrage and Tax Certificate. Charter" means the Home Rule Charter of the City, as the same may be amended from time to time. City" means the City of Seward, Alaska, a municipal corporation organized and existing under the Charter and Constitution and laws of the State of Alaska. Code" means the Internal Revenue Code of 1986, as amended, and all applicable regulations thereunder. Consulting Engineer" means an independent consulting engineer or engineering firm licensed to practice in the State of Alaska, retained and appointed pursuant to Section 15(F). Pat\clerkc\Current Work\COUNCIL\Resolu ions\OO-O~4a.wpd Page 2 23 I I I Council" means the general legislative authority of the City, as the same may be constituted from time to time. Debt ServiceSubaccount" means the Debt Service Subaccount created in the Bond Account by Section 12 hereof. Fiscal Year" means the 12-month period commencing on January 1 each year through and including December 31 of that year. Future Parity Bonds" means any harbor improvement revenue bonds, notes or other obligations of the City, other than the Bonds, issued under a resolution wherein the City pledges that the payments to be made out of the Pledged Revenues into the Bond Account and Reserve Subaccount therein to pay and secure the payment of the principal of and interest on such revenue bonds, notes or other obligations will be on a parity with the payments required by this resolution to be made out of such Pledged Revenues into such Bond Account and Reserve Subaccount to pay and secure the payment of the principal of and interest on the Bonds. Government Obligations" means any of the following: (i) any bonds or other obligations which, as to principal and interest, constitute direct obligations of, or are unconditionally guaranteed by, the United States of America; (ii) bonds, debentures, or other evidences of indebtedness issued or guaranteed by any agency or corporation which has been or may hereafter be created pursuant to an act of Congress as an agency or instrumentality of the United States of America; (iii) bonds, debentures, or other evidences of indebtedness issued or guaranteed by anyagency or corporation which has been or may hereafter be created pursuant to an act of Congress as an agency or instrumentality of the United States of America; (iv) obligations of financial institutions insured by theFederal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, to the extent insured; and (v) bank certificates of deposit fully secured by obligations described in (i) and (ii) hereof. Loan Agreement" means the Loan Agreement between the City and the Alaska Municipal BondBank Authority, dated as of the date of the Bonds. Net Revenues" means, for any Fiscal Year or other period of time, all amounts received by the City and deposited in the Small BoatHarbor Enterprise Fund and interest and profits derived from the investment of moneys held in the Small Boat Harbor Enterprise Fund during such period less Operating Expenses for such period. Operating Expenses" means, for any Fiscal Year or other period of time, the expenses incurred for operation, maintenance or repair of the Small Boat Harbor of a non-capital nature. Operating Expenses shall not include any allowances for depreciation or amortization or any principal, redemption price or purchase price of, or interest on, any obligations of the City incurred in connection with and payable from Pledged Revenues or any fee or charge in lieu of City taxes. Parity Bonds" means the Bonds and any Future Parity Bonds. Pat\clerkc\Cwrent Work\COUNCIL\Resolutions\OO-094a.wpd Page 3 24 Passenger Fees" means all passenger fees imposed by the City with respect to embarking or debarking a vessel at any City Dock, as described in the Port and Harbor Tariff of the City. Pledged Revenues" means Net Revenues and Passenger Fees and interest received and profits derived from the investment of moneys obtained from moneys held in any fund solely to pay or secure the payment of any Bonds issued underthis resolution. Registered Owner" means the person named as the registered owner of a Bond in the Bond Register. Registrar" means the Finance Director of the City, or any successor that the Finance Director may appoint. Reserve Subaccount" means the Reserve Subaccount created in the Bond Account by Section 12 hereof Reserve Subaccount Requirement" means an amount equal to the least of (i) 10% of the proceeds of sale of the Parity Bonds, (ii) 125% of the average Annual Debt Service Requirement for all Parity Bonds, and (iii) the maximumAnnual Debt Service Requirement on all outstanding Parity Bonds. System" means the "E" Float, two fish cleaning stations and other capital improvements in the City's Small Boat Harbor as the same may be acquired, constructed, added to, improved, replaced or extended for as long as any Parity Bonds are outstanding. Section 3. Authorization of Bonds and Purpose ofIssuance. The City shall issue and sell an issue of revenue bonds designated "City of Seward, Alaska Harbor Improvement Revenue Bonds, 2000" (the "Bonds") in the aggregate principal amount of not to exceed $3,000,000. The proceeds of the Bonds shall be used to pay the costs of certain additions, betterments and extensions of the System consisting principally of reconstruction and installation ofa portion ofthe Small Boat Harbor known as the "E" Float, fish cleaning stations in the Small Boat Harbor and other capitalprojects within the Small Boat Harbor. These projects serve a public purpose of the City. Section 4. Date. Maturities. Interest Rates and Other Details of the Bonds. The Bonds shall be dated and mature on suchdates not later than 2025, and shall bear interest from their date payable on such dates, and at such rates, not exceeding 7% per annum, as the Council or the City Manager or Finance Director may fix and determine at or prior to the time of sale of the Bonds. The Bonds shall be fully registered as to both principal and interest, shall be in the denomination of$5,000 each, or any integral multiple thereof, andshall be numbered separately in such manner and with any additional designation as the Registrar deems necessary for purposes of identification. Section 5. Place and Medium of Payment. Both principal of and interest on theBonds shall be payable in lawful money of the United States of America. For so long as all outstanding Pat\clerkc\Current Work\COUNCIL\Resolulions\OO-094a.wpd Page 4 25 I I I Bonds are registered in the name of the Alaska Municipal BondBank Authority, payments of principal and interest thereon shall be made as provided in the Loan Agreement. In the event that the Bonds are no longer registered in the name of the Alaska Municipal BondBank Authority, interest on the Bonds shall be paid by check mailed (or by wire transfer to a Registered Owner of Bonds in aggregate principal amount of$l, 000, 000 or more who so requests) to the Registered Owners of the Bonds at the addresses for such Registered Owners appearing on the Bond Register on the 15th day of the month preceding the interest payment date. Principal of the Bonds shallbe payable upon presentation and surrender of the Bonds by the Registered Owners at the principal office of the Registrar. Section 6. Registration. A. Bond Register. The Bonds shall be issued only in registered form as to both principal and interest. The Registrar shall keep, or cause to be kept, a bond register. B. Registered Ownership. The City and the Registrar, each inits discretion, may deem and treat the Registered Owner of each Bond as the absolute owner thereof for all purposes, and neitherthe City nor the Registrar shall be affected by any notice to the contrary. Payment of any such Bond shall be made only as described in Section 5 hereof, but such registration may be transferred as herein provided. All such payments made as described in Section 5 shall be valid and shall satisfY and discharge the liability of the City upon such Bond to the extent of the amount or amounts so paid. C. Transfer or Exchange. Bonds shall be transferred only upon the Bond Register kept by the Registrar. Upon surrender for transfer or exchange of any Bond at the office of the Registrar, with a written instrument of transfer or authorization for exchange in form and with guaranty of signature satisfactory to the Registrar, duly executed by the registered owner or its duly authorized attorney, the City shall execute and the Registrar shall deliver an equal aggregate principal amount of Bonds of the same maturity of any authorized denominations, subject to such reasonable regulations as the Registrar may prescribe and upon payment sufficient to reimburse it for any tax, fee or other governmental charge required to be paid in connection with such transfer or exchange. All Bonds surrendered for transfer or exchange shall be cancelled by the Registrar. The Registrar shall not be required to transfer or exchange Bonds subject to redemption during the 15 days preceding any principal or interest payment date or the date of mailing of notice of redemption of such Bonds, or any Bond after such Bond has been called for redemption. D. Registration Covenant. The City covenants that, until all Bonds have been surrendered and cancelled, it will maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. Section 7. Redemotion. The Bonds may be redeemed at the times not later than ten years from their dates, for the redemption prices not exceeding 1 05% of the principal amount, and in such manner, as the Councilor City Manager or Finance Director may fix and determine at or prior to the time of sale of the Bonds. Pat\clerkc\Current Work\COUNCIL\Resolutions\OO-094a.wpd Page 5 26 Notice of any intended redemption of Bonds shall be given not less than 45 nor more than 60 days prior to the date fixed for redemption by United States mail to registered owners of the Bonds to be redeemed at their addresses as they appear on the Bond Register on the day the notice is mailed; provided, however, that for so long as the Bonds are registered in the name of the Alaska Municipal Bond Bank Authority, all notices shall be given only as provided in the Loan Agreement. The requirements of this section shall be deemed to be complied with when notice is mailed as herein provided, whether or not it is actually received by the Registered Owner. All official notices of redemption shall be dated and shall state: a) the redemption date; b) the redemption price; c) iffewer thanall outstanding Bonds are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed; d) that on the redemption date the redemptionprice will become due and payable upon each such bond or portion thereof called for redemption, and that interestthereon shall cease to accrue from and after said date; and e) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the principal office of the Registrar. Notice of redemption having been given as aforesaid, the Bonds or portions of Bonds to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Registrar at the redemption price. Installments of interest due on or prior to the redemption date shall be payable as herein provided for payment of interest. Upon surrender for any partialredemption of any Bond, there shall be prepared for the Registered Owner a new Bond or Bonds of the same maturity in the amount of the unpaid principal. All Bonds which have been redeemed shall be cancelled and destroyed by the Registrar and shall not be reissued. If any Bond shall be duly presented for payment and funds have not been duly provided by the City on such applicable date, then interest shall continue to accrue thereafter on the unpaid principal thereof at the rate stated on such Bond until it is paid. Section 8. Form of Bonds. The form ofthe Bonds shall be substantially as follows: UNITED STATES OF AMERICA CITY OF SEWARD, ALASKA HARBOR IMPROVEMENT REVENUE BOND, 2000 Pat\clerkc\Current Wotk\COUNCIL\Resolutions\OO-094a.wpd Page 6 27 I I I REGISTEREDOWNER: PRINCIPAL AMOUNT: The City of Seward, Alaska (the "City), a municipal corporation ofthe State of Alaska, hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or its registered assigns, from the sources stated herein, the Principal Amount indicated above in the following installments on of each of the following years, and to pay, from the sources stated herein, interest on such installments from the date hereof, payable on 20_ and semiannually thereafter on the first days of each and of each year, at the rates per annum as follows: Maturity Date Principal Amount Interest Rate For so long as this Bond is owned by the Alaska Municipal Bond Bank Authority (the "Authority), payment of principal and interest shall bemade as provided in the Loan Agreement between the Authority and the City. In the event that this Bond is no longer owned by the Authority, payment of principal of and interest on this Bond will be made by check or draft mailed by first class mail to the registered owner at the address appearing on the bond register of the City, provided that the final installment of principal and interest on this Bond will be payable at the office of the City Finance Director (the "Registrar") upon surrender of this Bond. Interest shall be computed on the basis of a 360-day year composed of twelve 30-day months. Both principal of and interest on this bond are payable in lawful money of the United States of America solely out of the special fund of the City known as the "Harbor Improvement Revenue Bond Account" created by Section 12 of Resolution No. 2000- . This bond is one of an issue of bonds (the "Bonds") of like date and tenor except as to number, rate of interest, and date of maturity, aggregating the principal sum of $ and is issued pursuant to the Constitution and statutes of the State of Alaska and the Charter and duly adopted resolutions and ordinances of the City, including Resolution No, 2000-_ (the "Bond Resolution"). The definitions contained in the Bond Resolution shall apply to capitalized terms contained herein. The Bonds are being issued for the purpose of undertaking certain capital improvements to the City's Small Boat Harbor. Bonds maturing on or after , 20---> may be called for redemption at the option of the City on any date on and after in whole on any date, or in part in increments of$5,000 with maturities to beselected by the City and by lot within a maturity, at a price of par plus accrued interest to the date of redemption. Pat\clerkc\CUITent Work\COUNCIL\Rewlutions\OO-094a.wpd Page 7 28 Notice of any such intended redemption shall be given as provided in the Loan Agreement. From and after the date fixed for redemption, interest on any Bonds so called for redemption shall cease to accrue, provided funds for such redemption are on deposit in the Bond Account. The City does hereby pledge and bind itself to set aside out of Pledged Revenues of the City and to pay into the Bond Account the various amounts required by the Bond Resolution to be paid into and maintained in said Account all within the times provided in the Bond Resolution. The pledge of Pledged Revenues contained herein and in the BondResolution may be discharged by making provision, at any time, for the payment of the principal of and interest on this Bond in the manner provided in the Bond Resolution. The pledge of amounts to be paid into the Bond Account is hereby declared to be a lien and charge upon the Pledged Revenues superior to all other charges of any kind or nature and equal in rank to the lien and charge thereon for amounts pledged to the payment of any Future Parity Bonds hereafter issued. The City has further bound itself to maintain the System in good condition and repair, to operate the same in an efficient manner and at a reasonable cost, and to establish, maintain and collect Passenger Fees for as long as any Parity Bonds are outstanding that will provide Pledged Revenues in an amount equal to at least the amount of the Annual Debt Service Requirement for such year on all outstanding Parity Bonds. It is hereby certified that all acts, conditions and things required by the Constitution and statutes of the State of Alaska and the Charter and resolutions of the City to be done precedent to and in the issuance of this bond have happened, been done and performed. IN WITNESS WHEREOF, the City of Seward, Alaska, has caused thisbond to be executed with the manual or facsimile signature of its Mayor and to be countersigned with the manual or facsimile signature of its Clerk and the official seal of the City to be impressed or imprinted hereon, as of this _ day of ,2000. CITY OF SEWARD, ALASKA Mayor COUNTERSIGNED: City Clerk Pat\clerkc\Current Work\COUNCIL\Resoluuons\OO-094a.wpd Page 8 29 I I I Form of Assignment) ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto please insert Social Security or taxpayer identification number of transferee) please print or typewrite name and address, including zip code of Transferee) the within bond and does hereby irrevocably constitute and appoint of or its successor, as Registrar, to transfer said bond on the books kept for registration thereof with full power of substitution in the premises. DATED: NOTE: The signature on this Assignment must correspond with the name of the registered owner as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. SIGNATURE GUARANTEED: Section 9. Execution of Bonds. The Bonds shall be executed on behalf of the City with the manual or facsimile signature of the Mayor ofthe City, countersigned with the manual or facsimile signature of the Clerk. The official seal of the City shall be impressed or imprinted on each Bond. The execution of a Bond on behalf of the City by persons that at the time of the execution are duly authorized to hold the proper offices shall be valid and sufficient for all purposes, although any such person shall have ceased to hold office at the time of issuance and delivery of the Bond or shall not have held office on the date of the Bond. Section 10. Mutilated. Destroved. Stolen or Lost Bonds. Upon surrender to the Registrar of a mutilated Bond, the City shall execute and deliver a new Bond of like maturity and principal amount. Upon filing with the Registrar of evidence satisfactory to the City that a Bond has been destroyed, stolen or lost and of the ownership thereof, and upon furnishing the City with indemnity satisfactory to it, the City shall execute and deliver a new Bond ofIike maturity and principal amount. Pat\clerkc\Current Work\COUNCIL\Resolutions\OO-094a.wpd Page 9 30 The person requesting the authentication and delivery of a new Bond pursuant to this section shall comply with such other reasonable regulations as the City may prescribe and pay such expenses as the City may incur in connection therewith. Any Bonds issued pursuant to this section in substitution for Bonds alleged to be destroyed, stolen or lost shall constitute original additional contractual obligations on the part of the City, whether or not the Bonds alleged to be destroyed, stolen or lost be at any time enforceable by anyone, and shall be equally and proportionately secured with all other Bonds issued hereunder. Section 11. Prioritv of Use of Pledged Revenues. Pledged Revenues are hereby pledged to and shall be used only for the following purposes and in the following order of priority: First, to make all payments, including sinking fund payments, required to be made into the Debt Service Subaccount for the payment of the principal of and interest on Parity Bonds; Second, to make all payments required to be made into the Reserve Subaccount; Third, to make all payments, includingsinking fund payments, required to be made into a subordinate lien debt service account for the payment of the principal of and interest on any subordinate lien bonds; Fourth, to make all payments required to be made into a reserve account for subordinatelien bonds; Fifth, to make all required payments of charges or fees in lieu of City taxes; and Sixth, to pay the costs of additions, betterments, improvements and repairs to and extensions and replacements of the City Small Boat Harbor to purchase or redeem harbor improvement revenue bonds or notes of the City, or for any other proper purpose in connection with the operation of the City Small Boat Harbor. Section 12. Harbor Improvement Revenue Bond Account and Subaccounts Therein. There is hereby created a special fund of the City known as the "Harbor Improvement Revenue Bond Account" (the "Bond Account"), which fund is a trust fund to be drawn upon for the sole purpose of paying the principal of and interest and premium, if any, on all Parity Bonds. The Bond Account consists of two sub accounts, the Debt Service Subaccount and the Reserve Subaccount. Amounts pledged to be paid into the Bond Account are hereby declared to be a lien and charge upon Pledged Revenues superior to all other charges of any kind or nature and equal in rank to the charge thereon to pay and secure the payment of the principal of and interest on all Parity Bonds. From and after the time of issuance and delivery of the Bonds and as long thereafter as any of the same remain outf>tanding, the City hereby irrevocably obligates and binds itself to set aside and pay into the Debt Service Subaccount out of Pledged Revenues or out of any other moneys legally available therefor on or before the 20th day of each month the following: Pat\clerkc\Cwrent Work\COUNCIL\ResoJutions\OO-094a.wpd Page 10 31 I I I A. Such amounts, in approximately equal monthly installments, as will be sufficient to accumulatethe amount required to pay theinterest scheduled to become due on Parity Bonds on the next interest payment date; and B. Such amounts, in approximately equal monthly installments, as will be sufficient to accumulate (i) the principal amount of all Parity Bonds due for which no sinking fund installments have been established, plus (ii) the unsatisfied balance of any sinking fundinstallment for Parity Bonds, in each case during the next 12 months. Moneys in the Debt Service Subaccount may be held in cash or invested in Government Obligations which investments mature prior to the time such money is required for the payment of the principal of or interest on the Parity Bonds. All interest earned on and profits derived from such investments shall remain in and become a part of the Debt Service Subaccount. Section 13. Reserve Subaccount. The City hereby covenants and agrees that it will at the time of issuance of the Bonds cause amounts to be paid into the Reserve Subaccount such that the total amount in the Reserve Subaccount will be equal to the Reserve Subaccount Requirement. The City further covenants and agrees that it will set aside and pay into the Reserve Subaccount amounts from Pledged Revenues, commencing with the first month following the closing and delivery of the Bonds, so that the amount on deposit in the Reserve Subaccount will at all times be at least equal to the Reserve Subaccount Requirement. The City further covenants and agrees that in the event it issues any Future Parity Bonds hereafter it will provide in each resolution authorizing the same that at the time of issuance of such Future Parity Bonds payments will be made into the Reserve Subaccount such that the total amount of such payments together with the money already in the Reserve Subaccount will be equal to the Reserve Subaccount Requirement. The City further covenants and agrees that it will at all times maintain therein an amount at least equal to the Reserve Subaccount Requirement until there is a sufficient amount in the Bond Account and Reserve Subaccount to pay the principal of, premium, if any, and interest on all outstanding Parity Bonds, at which time the money in the Reserve Subaccount may be used to pay such principal, premium, if any, and interest; provided, however, that moneys in the Reserve Subaccount may be withdrawn, or set aside in a special account in the Bond Account pursuant to Section 19 of this resolution, to pay (with or without other available funds) the principal, premium, if any, and interest on all of the outstanding Parity Bonds of any single issue or series payable out of the Bond Account, so long as the moneys remaining on deposit in the Reserve Subaccount are at least equal to the Reserve Subaccount Requirement on all of the remaining outstanding Parity Bonds. The City may, from time to time, transfer from the Reserve Subaccount to the Debt Service Subaccount amounts in excess of the Reserve Subaccount Requirement. In the event there shall be a deficiency in the Debt Service Subaccount for meeting maturing installments of either principal of or interest on Parity Bonds, such deficiency shall be made up from the Reserve Subaccount by the withdrawal of cash therefrom. Any deficiency created in the Reserve Pat\clerkc\Current Work\COUNCIL\Resolutions\OO-094a.wpd Page 11 32 Subaccount by reason of any such withdrawal shall then be made up from Pledged Revenues first available therefor after making necessary provision for the required payments into the Debt Service Subaccount. Investments in the Reserve Subaccount shallbe valued at amortized cost except that in the event of a deficiency in the Reserve Subaccount caused by the withdrawal or transfer of moneys therefrom the amount of such deficiency shall be determined by valuing allinvestments in the Reserve Subaccount at the then market value. All money in the Reserve Subaccount may be kept in cash or invested in Government Obligations. Such investments shall mature not later than the last maturity of Parity Bonds outstanding at the time oftheir purchase. Interest on any such investments and/or any profits realized from the sale thereof shall be deposited in and become a part of the Debt Service Subaccount. Section 14. Investment of Certain Accounts. Moneys held in the Bond Account and in the Reserve Subaccount shall be invested and reinvested to the fullest extent practicable in Government Obligations which mature not later than at such times as shallbe necessary to provide moneys when needed for payments to bemade from such Accounts, and in the case of the Reserve Subaccount not later than fifteen years from the date of such investment. Nothing in this resolution shall prevent any Government Obligations from being issued or held in book-entry form on the books of the Department ofthe Treasury of the United States. Obligations purchased as an investment of moneys in any Account or Subaccount created under this resolution shall bedeemed at all times to be a part of such Account or Subaccount and any profit realized from the liquidation of such investment shallbe credited to such Account or Subaccount and any loss resulting from the liquidation of such investment shall be charged to the respective Account or Subaccount. In computing the amount in any Account or Subaccount created under this resolution for any purpose provided in this resolution, obligations purchased as an investment of moneys therein shall be valued at cost plus interest accrued and unpaid at the date of computation. Section 15. Specific Covenants. The City hereby covenants with the owners of each of the Parity Bonds for so long as any of the same remain outstanding as follows: A. The City will establish, maintain and collect Passenger Fees and Net Revenues in each Fiscal Year that will provide Pledged Revenues in an amount equal to the amount of the AnnualDebt Service Requirement for such year on all outstanding Parity Bonds. B. The City will at all times maintain, preserve and keep the System and every part and parcel thereofin good repair, working order and condition; will from time to time make or cause to be madeall necessary and proper repairs, renewals and replacements thereto so that the business carried on in connection therewith may be properly and advantageously conducted; and will at all times operate the System in an efficient manner and at a reasonable cost. Pat\derkc\Current Work\COUNCIL\Resoluions\OO-094a.wpd Page 12 33 I I I C. The City will at all times carry all-risk insurance and such other forms ofinsurance on such ofthe buildings, equipment, property and facilities ofthe System as are ordinarily insured in such amounts and with such deductibles as under good business practice are ordinarily carried on such buildings, equipment, property and facilities but such insurance shall in all events be in an amount at least equal to the lessor of (i) 80% of the estimated replacement cost of the insurable parts of the System or (ii) the aggregate principal amount of the Parity Bonds then outstanding, in each case such all-risk insurance shall include, but not be limited to, hazards such as fire, water, lightning, tornado, windstorm, hail, explosion, riot, civil commotion, vandalism and malicious mischief, aircraft and vehicles, excluding flood, tidal wave, wavewash, subsidence, or earthquake insurance. In addition to the above insurance, the City shall also carry public liability insurance and such other types of insurance as are usually carried by municipal corporations operating like properties. All such insurance shall be carried with responsible insurers and the policies shallbe payable to the City. D. The City will keep and maintain proper books and accounts with respect to the operation ofthe System in such manner as prescribed by any authorities having jurisdiction over the System; will cause its books and accounts to be audited annually be a certified public accountant not later than 180 days following the end of each Fiscal Year, copies of which audits shall, upon request, be furnished to the owners of the Parity Bonds. Said audit shall show whether or not the City has in all respects performed and complied with the covenants set forth in this resolution, including the payments into the Debt Service Subaccount and Reserve Subaccount provided for herein. E. All employees and agents of the City collecting or handling money of the City in connection with the management and operation of the System shall be bonded in an amount commensurate with thefunds they handle and in an amount sufficient to protect the City from loss. F. The City will not sell or otherwise dispose of the System unless contemporaneously with such sale or disposal there shall be paid from the Bond Account a sum sufficient to pay the principal of andinterest on all Parity Bonds then outstanding to the date or dates on which they first may be redeemed, nor will it sell or otherwise dispose of any part ofthe System which is material to the production of Pledged Revenues unless, in the opinion of the Consulting Engineer, the remaining System will generate Pledged Revenues sufficient to enable the City to comply with the requirements of this resolution and each resolution authorizing the issuance of Future Parity Bonds. G. The City will not at any time create or permit to accrue or exist any lien or other encumbrance or indebtedness upon the System or the Pledged Revenues, or any part thereof, or upon any Account or Subaccount created hereunder, prior or superior to the lien thereon for the payment of the Parity Bonds, and will pay and discharge, or cause to be paid and discharged, any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien or charge upon the Pledged Revenue, or any part thereof, or upon any Account or Subaccount in the hands of the City, prior or superior to the lien of the Parity Bonds, or which might impair the security of the Parity Bonds. H. The City will not expend any of the Pledged Revenues or the proceeds of any indebtedness payable from Pledged Revenues for any additions, betterments or improvements to the Pat\clcrkc\Current Work\COUNCIL\Resolutions\OO-094a.wpd Page 13 34 System which are not economically sound and which will not properly and advantageously contribute to the conduct of the business of the System in an efficient and economical manner. I. At any and all times the City shall, as far as it may be authorized by law, make, do, execute, acknowledge, and deliver all further resolutions, acts, deeds, conveyances, assignments, transfers, and assurances as may be necessary or desirable for better assuring, conveying, granting, pledging, assigning, and confirming all and singular the rights, revenues, and other funds, moneys, and securities pledged or assigned under the resolution, or intended so to be, or which the City may become bound to pledge or assign. 1. The City is duly authorized under all applicable laws to create andissue the Bonds and to adopt this resolution and to pledge the Pledged Revenues and other funds, moneys, and securities purported to be pledged by thisresolution in the manner and to the extent provided in this resolution. The Pledged Revenues and other funds, moneys, and securities so pledged are and will be free and clear of any pledge, lien, charge, or encumbrance thereon or with respect thereto prior to, or of equal rank with, the pledge and assignment created by this resolution, and all corporate or other action on the part of the City to that end has been and will be duly and validly taken. The Bonds and the provisions of this resolution are and will be the valid and legally enforceable obligations of the City in accordance with their terms and the terms of this resolution. The City shall at all times, to the extent permitted by law, defend, preserve, and protect the pledge of the Pledged Revenues and the other funds, moneys, and securities pledged under this resolution and all the rights of the Bondholders under this resolution against all claims and demands of all persons whomsoever. K. The City has, and will have so long as any Parity Bonds are outstanding, good right, and lawful power to operate, maintain, and repair the System and to fix and collect rates, fees, and other charges related to the System. L. The City shall do and perform or cause to be done and performed all acts and things required to be done or performed by or on behalf of the City under the laws of the State of Alaska and this resolution. Section 16. Parity Bonds. In all events the City may issue Parity Bonds up to $300,000 in principal amount to complete the original construction of the System. The City hereby covenants with the owners of each of the Parity Bonds for so long as the same remain outstanding that it will not issue any bonds having a greater or equal lien on Pledged Revenues to pay and secure the payment of the principal of and interest on such bonds than the lien created thereon to pay and secure the payment ofthe principal of and interest on the Parity Bonds except that the City reserves the right to issue future Parity Bonds as follows: A. For the purpose of acquiring, constructing and installing additions, betterments and improvements to and extensions of, acquiring necessary property and equipment for, or making necessary replacements or repairs to the System, for funding interest and reserves and for the purpose of refunding at or prior to their redemption or maturity any outstanding revenue bonds or notes of the City that have a lien on Pledged Revenues for the payment of the principal thereof and interest Pat\clerkc\Cwrent Work\COUNCIL\Resolutions\OO.094a.wpd Page 14 35 I I I thereon junior and inferior to the lien on Pledged Revenues for the payment of the principal of and interest on the Bonds and upon compliance with the following conditions: 1) The City will covenant in each resolution authorizing the issuance of Future Parity Bonds that it will pay into and maintain in the Reserve Subaccount the amounts required by Section 13 of this resolution to be paid into and maintained in said Subaccount in the event Future Parity Bonds are issued. The City also will covenant in each such resolutionthat it will establish, maintain and collect Passenger Fees sufficient to meet the same requirements as are contained in subsection A of Section 15 of this resolution; 2) At the time of the issuance of such Future Parity Bonds the City shall have on file a certificate showing that the "annual income available for revenue bond debt service," as hereinafter set forth, shall be at least equal to 1.20 times the maximum Annual Debt Service Requirement on all outstanding Parity Bonds and the Future Parity Bonds being issued. Such "annual income available for revenue bond debt service" shall be determined by adding the following: i) The historical Pledged Revenues for any 12 consecutive months out of the 24 months immediately preceding the month of delivery of the Future Parity Bonds being issued. ii) The estimated annual Pledged Revenues to be derived from the operation of any additions or improvements to or extensions of the System under construction but not completed at the time of such certificate and not being paid for out of the proceeds of sale of such Future Parity Bonds being issued, and which Pledged Revenues are not otherwise included in any of the sources of Pledged Revenues described in this subsection (2). iii) The estimated Pledged Revenues to be derived from the operation of any additions and improvements to or extensions of the System being paid for out of the proceeds of sale of such Future Parity Bonds being issued. The computation of "annual income available for revenue bond debt service" shall be adjusted to reflect the Passenger Fees effective on the date of such certificate or approved by the regulatory authority with jurisdiction to become effective thereafter if there has been any change in such rates and charges put into effect or so approved during or after such 12- consecutive-month base period. Notwithstanding the preceding provisions of this subparagraph (2), the certificate referred to above shall not be required if one-half of Pledged Revenues, verified from certain financial statements of the City, for a period of any consecutive two out of the three Fiscal Years immediately preceding the issuance and delivery of such Future Parity Bonds, was equal to at least 1.20 times the maximum Annual Debt Service required to be paid in any Pat\c1erkc\Current Work\COUNCIL\R.esolutions\OO-094a.wpd Page 15 36 Fiscal Year succeeding the date of issuance of such Future Parity Bonds on all outstanding Parity Bonds and the Future Parity Bonds being issued. Further, notwithstanding the preceding provisions of this subparagraph (2), Future Parity Bonds may be issued if the City shall have on file a certificate stating that the Pledged Revenues for the next full Fiscal Year after the initial operation of any additions or improvements to or extensions of the System being paid for out of the proceeds of the Future Parity Bonds will be at least equal to 1.40 times the maximum Annual Debt Service Requirement on all outstanding Parity Bonds and the Future Parity Bonds being issued. That at the time of the issuance of such Future Parity Bonds there is not deficiency in the Debt Service Subaccount or Reserve Subaccount. B. For the purpose of refunding at or prior to their redemption or maturity any part or all of the then outstanding Parity Bonds if the issuance of such refunding Future Parity Bonds does not require a greater amount to be paid out of Pledged Revenues for principal and interest over the life of such refunding Future Parity Bonds being refunded, and if the conditions required in subsections (a)(1) and (a)(3) of this section are complied with. Proceeds of Parity Bonds to be used to fund interest or reserves shallbe deposited in the Debt Service Subaccount or the Reserve Subaccount, as the case may be. Section 17. Subordinate Lien Bonds. Nothing contained herein shall prevent the City from issuing revenue bonds or notes which are a charge upon Pledged Revenues subordinate or inferior to the payments required herein to be made therefrom into the Debt Service Subaccount and Reserve Subaccount, or from issuing harbor improvement revenue bonds to refund maturing bonds for the payment of which moneys are not otherwise available. Section 18. Covenants Regarding Arbitrage and Private Activity Bonds. The City hereby covenants that it will not make any use of the proceeds of sale of the Bonds or any other funds of the City which may be deemed to be proceeds of such Bonds pursuant to Section 148 ofthe Code which will cause the Bonds to be "arbitrage bonds" within the meaning of said section and the regulations applicable thereunder. The City will comply with the requirements of Section 148 of the Code (or any successor provision thereof applicable to the Bonds) and the applicable regulations thereunder throughout the term of the Bonds. The City further covenants that it will not take any action or permit any action to be taken that would cause the Bonds to constitute "private activity bonds" under Section 141 of the Code. The City will take any action determined by the City, after consultation with its bond counsel, to be legal and practicable and required to be taken by the City under future federal laws or regulations in order to maintain the exemption of the interest on the Bonds from federal income taxation. Section 19. Defeasance. In the event that money and/or Acquired Obligations maturing at such time or times and bearing interest to be earned thereon in amounts sufficient to redeem and retire any or all of the Bonds in accordance with their terms are set aside in a special trust account in the Bond Account to effect such redemption or retirement and such money and the principal of and Pat\clerkc\Cwrent Work\COUNCIL\Rcsolutions\OO-094a.wpd Page 16 37 I I I interest on such obligations are irrevocably set aside and pledged for such purpose, then no further payments need to be made into the Bond Account for the payment ofthe principal of and interest on such Bonds, and such Bonds shall cease to be entitled to any lien, benefit or security of this resolution except the right to receive thefunds so set asideand pledged, and such Bonds shall be deemed not to be outstanding hereunder or under any other resolution authorizing the issuance of Future Parity Bonds. Section 20. General Authorization to Municioal Officials. After the sale of the Bonds, the proper officials of the City are hereby authorized and directed to do everything necessary to complete such sale and to deliver the Bonds to the purchaser thereof upon payment of the purchase price thereof Section 21. Amendatory and Supolemental Resolutions. A. The Council from time to time and at any time may pass a resolution or resolutions supplemental hereof, which resolution or resolutions thereafter shall become a part of this resolution, for anyone or more of the following purposes: 1) To add to the covenants and agreements ofthe City contained in this resolution, other covenants and agreements thereafter to be observed, or to surrender any right or power herein reserved to or conferred upon the City. 2) To make such provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective provision contained in this resolution or in regard to matters or questions arising under this resolution as the Council may deem necessary or desirable and not inconsistent with this resolution and which shall not adversely affect the interest of the owners of Parity Bonds. Any such supplemental resolution of the Council may be adopted without the consent of the owner of any Parity Bonds at any time outstanding, notwithstanding any of the provisions of subsection B of this section. B. With the consent of the owners of not less than 60% in aggregate principal amount of Parity Bonds at the time outstanding, the Council may pass a resolution or resolutions supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this resolution or of any supplemental resolution; provided, however, that no such supplemental resolution shall: 1) Extend the fixed maturity of any of the Parity Bonds, or reduce the rate of interest thereon, or reduce the amount or change the date of any sinking fund installment requirement, or extend the time of payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the owner of each Parity Bond so affected; or Pat\clerkc\Current Work\COUNCIL\Resolutions\OO.094a.wpd Page 17 38 2) Reduce the aforesaid percentage of owners ofParity Bonds required to approve any such supplemental resolution without the consent ofthe owners of all ofthe Parity Bonds then outstanding; or 3) Remove the pledge and lien of this resolution on Pledged Revenues. It shall not be necessary for the consent of the owners of Parity Bonds under this subsection B to approve the particular form of any proposed supplemental resolution, but it shall be sufficient if such consent shall approve the substance thereof. C. Upon the passage of any supplemental resolution pursuant to the provisions of this section, this resolution shallbe deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations of the City under thisresolution and all owners of Parity Bonds outstanding hereunder shall thereafter be determined, exercised and enforcedthereunder, subject in all respects to such modification and amendment, and all the terms and conditions of any such supplemental resolution shallbedeemed to be part of the terms and conditions of this resolution for any and all purposes. D. Parity Bonds executed and delivered after the execution of any supplemental resolution adopted pursuant to the provisions of this section may bear a notation as to any matter provided for in such supplemental resolution, and if such supplemental resolution shall so provide, new Parity Bonds so modified as to conform, in the opinion of the Council, to any modification of this resolution contained in any such supplemental resolution, may be prepared by the City and delivered without cost to the owners of Parity Bonds then outstanding, upon surrender for cancellation of such Parity Bonds in equal aggregate principal amounts. Section 22. Disoosition of the Proceeds of Sale of the Bonds. The proceeds received from the sale of the Bonds (exclusive of accrued interest which shall be paid into the Debt Service Subaccount) shall be deposited into the fund of the City designated by the Finance Director and shall be used to pay all costs allocable to the issuance of the Bonds and to undertake improvements authorized by Section 3 of this resolution. Section 23. Loan Agreement and Continuing Disclosure, The City Manager and Finance Director are each authorized to enter into a Loan Agreement with the Alaska Municipal Bond Bank Authority providing for and relating to the sale of the Bonds to the Alaska Municipal Bond Bank Authority, and a Continuing Disclosure Certificate, and the City Manager and Finance Director are authorized to cause the same to be executed and delivered on behalf of the City. Section 24. Severability. If any one or more of the covenants or agreements provided in this resolution to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements shall be null and void and shall be deemed separable from the remaining covenants and agreements in this resolution and shall in no way affect the validity of the other provisions of this resolution or of the Bonds. Pat\cletkc\CllITCIlt Work\COUNCIL\Resolutions\OO-094a.wpd Page 18 39 I I I Section 25. Effective Date. This resolution shall become effective immediately provided that no Parity Bonds shall be issued underthis resolution until 30 days from the date hereof PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska, this 11 day of September, 2000. THE CITY OF SEWARD, ALASKA 4, , Edgar Blatchford, Mayor AYES: NOES: ABSENT: ABSTAIN: Brossow, Calhoon, King, Orr, Shafer, Blatchford Clark None None ATTEST: Patrick Reilly City Clerk City Seal) u....." OF SetS/'"t ............ ~...:~#. j ....c?-,O~....,.() ~ r; ~\ ~ I.:!S" ..-.eo- ~ '\ ~ SEAL . -e: Ie; J, ... ...... / ., n....Ch. "IV.. /IV~ \~"., ~ 1,:;:.!.11..:.....t(,~* f' OF ,..v-"..... 11'"""" Pat\clerkc\Current Work\COUNCIL\Resoiutions\OO.094a.wpd Page 19 40 Sponsored by: Administration CITY OF SEWARD, ALASKA RESOLUTION 2006-128 A RESOLUTION AUTHORIZING THE CITY OF SEWARD TO ISSUE HARBOR IMPROVEMENT REVENUE REFUNDING BONDS, 2007 IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $2,650,000 TO REFUND CERTAIN OUTSTANDING HARBOR IMPROVEMENT BONDS OF THE CITY, FIXING CERTAIN DETAILS OF SUCH BONDS AND AUTHORIZING THEIR SALE AND PROVIDING FOR RELATED MATTERS. WHEREAS, the City of Seward, Alaska (the "City") is a home rule city and under Section 11 of Article X of the Alaska Constitution may exercise all legislative power not prohibited by law or the charter of the City, and it has been determined that the matters set forth in this resolution are not prohibited by law or the charter; and WHEREAS, there is now outstanding the principal amount of $2,510,000 of Harbor Improvement Revenue Bonds, 2000 of the City maturing on or after December 1, 2006 (the "2000 Bonds") issued under Resolution No. 2000-094 of the City; and WHEREAS, the council finds that it is in the best interest of the City to provide for the refunding, including the payment of principal of and interest on, those maturities of the 2000 Bonds the "Refunded Bonds") whose refunding the City Manager or City Finance Director determines will produce the debt service savings specified in this resolution, by the issuance of general obligation refunding bonds in the aggregate principal amount of not to exceed $2,650,000 (the "Bonds"); and WHEREAS, Section 11.2(a) of the home rule charter of the City provides that the City may issue refunding bonds without ratification of the voters; and WHEREAS, the Council finds that it is necessary and appropriate to delegate to each of the City Manager and City Finance Director authority to determine the maturity amounts, interest rates and other details of the Bonds, and to determine other matters pertaining to the Bonds that are not provided for in this resolution; and WHEREAS, the Alaska Municipal BondBank and the City intend to enter into an Amendatory Loan Agreement, which amends the Loan Agreement dated as of December 1, 2000 between the Alaska Municipal Bond Bank and the City to provide for the refunding of the Refunded Bonds through their exchange for refunding bonds to be issued by the City, and related matters. NOW, THEREFORE, BE IT RESOLVED: Section 1. Definitions. The following terms shall have the following meanings in this resolution: A) "Amendatory Loan Agreement" means the Amendatory Loan Agreement between the S:\RESOLUTIONS\2006\06-128 harbor Refunding Res.doc Page 1 of 10 41 City and the BondBank, amending the Loan Agreement to provide for the refunding of the Refunded Bonds through their exchange for the Bonds, and related matters. B) "Bond" or "Bonds" means any of the "Harbor Improvement Revenue Refunding Bonds, 2007" of the City of Seward, the issuance and sale of which are authorized herein. J C) "Bond Bank" means the Alaska Municipal BondBank, a public corporation of the State of Alaska. D) "BondBank Bonds" means the General Obligation Refunding Bonds, 2007 Series One of the Bond Bank. E) "Bond Register" means the registration books maintained by the Registrar, which include the names and addresses of the Registered Owners of the Bonds or their nominees. F) "City" means the City of Seward, a municipal corporation of the State of Alaska, organized as a home rule city under Title 29 of the Alaska Statutes. G) "City Finance Director" means the Finance Director of the City. H) "Code" means the Internal Revenue Code of 1986, as amended from time to time, together with all regulations applicable thereto. I) "Council" means the Council of the City of Seward, as the general legislative authority of the City of Seward, as the same shall be duly and regularly constituted from time to time. ..... J) "Loan Agreement" means the Loan Agreement between the City and the Bond Bank dated as of December 1, 2000, as amended by the Amendatory Loan Agreement. K) "2000 Bonds" means the $2,510,000 of Harbor Improvement Revenue Bonds, 2000 of the City maturing on or after December 1, 2006. L) "RefundedBonds" means the maturities of the 2000 Bonds whose refunding is approved by the City Manager or City Finance Director underSection 13. M) "Registered Owner" means the person named as the registered owner of a Bond in the Bond Register. N) "Registrar" means the City Finance Director. 0) "Resolution" means this Resolution of the City. Section 2. Authorization of Bonds and Purpose of Issuance. For the purpose of effecting the refunding by exchange of the Refunded Bonds in the manner set forth hereinafter and in the .~ Amendatory Loan Agreement, the City hereby authorizes and determines to issue and sell the Bonds ....J S:\RESOLUTIONS\2006\06-128 harbor Refunding Res.doc Page 2 of 10 42 in the aggregate principal amount of not to exceed $2,650,000. Section 3. Obligation of Bonds. The Pledged Revenues as defined in Resolution 2000-094 are hereby pledged to the payment of the principal of and interest on the Bonds as the same become due and payable. Section 4. Designation. Maturities. Interest Rates. and Other Details of Bonds. The Bonds shall be designated "City of Seward, Alaska, Harbor Improvement Revenue Refunding Bonds, 2007." The Bonds shall be in the denomination of $5,000 or any integral multiple thereof, shall be numbered separately in the manner and with such additional designation as the Registrar deems necessary for purposes of identification, and may have endorsed thereon such legends or text as may be necessary or appropriate to conform to the rules and regulations of any governmental authority or any usage or requirement of law with respect thereto. A portion of the principal of theBonds shall mature annually commencing on or after [April 1,200_l and continuing no later than [20_l The Bondsshall bear interest from their date, payable commencing on a date on or after [October 1, 200_l, and semi-annually thereafter in each year. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. The dated date, the principal and interest payment dates, the aggregate principal amount, the principal amount of each maturity, and the interest rates on the Bonds shall be determined at the time of execution of the Amendatory Loan Agreement under Section 17. Section 5. Redemption. The Bonds may be redeemed as provided in the Loan Agreement. Section 6. Form of Bond. Each Bond shall be in substantially the following form, with such variations, omissions and insertions as may be required or permitted by this Resolution: UNITED STATES OF AMERICA STATE OF ALASKA CITY OF SEWARD A Municipal Corporation of the State of Alaska) NO. HARBOR IMPROVEMENT REVENUE REFUNDING BOND, 2007 REGISTERED OWNER: PRINCIPAL AMOUNT: The City of Seward (the "City"), a municipal corporation of the state of Alaska, hereby acknowledges itself to owe and for value received promises to pay to the Registered Owner identified above, or its registered assigns, the Principal Amount indicated above in the following S:\RESOLUTIONS\2006\06-128 harbor Refunding Res.doc Page 3 of 10 43 installments on r 1] of each of the following years, and to pay interest on such installments from the date hereof, payable on [_ 1, 20_] and semiannually thereafter on the 1st days of _ and _ of each year, at the rates per annum as follows:j Year Principal Amount Interest Rate For so long as this Bond is owned by the Alaska Municipal Bond Bank (the "BondBank"), payment of principal and interest shall be made as provided in the Loan Agreement between the Bond Bank and the City, dated as of December 1, 2000, as amended by the Amendatory Loan Agreement dated ,200_ (the "Loan Agreement"). In the event that thisBond is no longer owned by the Bond Bank, installments of principal and interest on this Bond shall be paid by check or draft mailed by first class mall to the Registered Owner as of the close of business on the fifteenth day of the month preceding each installment payment date; provided that the final installment of principal and interest on this Bond shall be payable upon presentation and surrender of this Bond by the Registered Owner at the office of the Registrar. Interest will be computed on thebasis of a 360- day year consisting of twelve 30-day months. Both principal of and interest on this Bond are payable in lawful money of the United States of America which, on the respective dates of payment thereof, shall be legal tender for the payment of public and private debts. ThisBond is one of the Harbor Improvement Revenue Refunding Bonds, 2007 of the City of Seward, Alaska, of like tenor and effect except as to interest rate, serial number and maturity, aggregating $ in principal amount, and constituting Bonds authorized for the purpose of refunding certain general obligation bonds issued by the City, and is issued under Resolution 2006- of the City entitled: A RESOLUTION AUTHORIZING THE CITY OF SEWARD TO ISSUE HARBOR IMPROVEMENT REVENUE REFUNDING BONDS, 2007 IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $ TO REFUND CERTAIN OUTSTANDING HARBOR IMPROVEMENT BONDS OF THE CITY, FIXING CERTAIN DETAILS OF SUCH BONDS AND AUTHORIZING THEIR SALE AND PROVIDING FOR RELATED MATTERS the "Resolution"). ThisBond maturing on or after 1, _, may be called for redemption by the City on any date on and after 1, _ as provided in the Loan Agreement. ThisBond is transferable as provided in the Resolution, (i) only upon the bond register of the City, and (ii) upon surrender of this Bond together with a written instrument of transfer duly executed by the registered owner or the duly authorized attorney of the registered owner, and j.:thereupon a new fully registered Bond or Bonds in the same aggregate principal amount and maturity S:\RESOLUTIONS\2006\06-128 harbor Refunding Res.doc Page 4 of 10 44 shall be issued to the transferee in exchange therefor as provided in the Resolution and upon the payment of charges, if any, as therein prescribed. The City may treat and consider the person in whose name this Bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption price, if any, hereof and interest due hereon and for all other purposes whatsoever. This Bond is a special limited obligation of the City of Seward, payable solely from Pledged Revenues as the same shall become due. The full faith and credit of the City are not pledged for the payment of the principal of and interest on the Bond. IT IS HEREBY CERTIFIED AND RECITED that all conditions, acts or things required by the constitution or statutes of the State of Alaska and the home rule charter of the City to exist, to have happened or to have been performed precedent to or in the issuance of this Bond exist, have happened and have been performed, and that the series of Bonds of which this is one, together with all other indebtedness of the City, is within every debt and other limit prescribed by said constitution, statutes, or charter. IN WITNESS WHEREOF, THE CITY OF SEW ARD, ALASKA, has caused this Bond to be signed in its name and on its behalf by the manual or facsimile signature of its Mayor and its corporate seal (or a facsimile thereof) to be impressed or otherwise reproduced her. n and attested by the manual or facsimile signature of its Clerk, all as of the ~f) day of ' , , 2007. 1 / 7~~ MtLt/Z/ Vanta Shafer, Mayo/!; 1111',,, Of SE/.1t."",l ........ ~~', i:" ",~. o Of;) :" "')A .. W .' cr.. . ""i):" v 'l'J:.J ~'::" ';. v. _ O! SE~AL : <<) : t/, f1., 0: ~ l',",~.o\'~ ,\9~..'.~':1, .' c.::<;".....r-.:" ....i.t: c')e ",\.r ~..l't r- r, \.\~ I" U..U\" Section 7. Execution. The Bonds shall be executed in the name of the City by the Mayor or his designee, and its corporate seal shall be impressed or otherwise reproduced thereon and attested by the City Clerk. The execution of a Bond on behalf of the City by persons who at the time of the execution are duly authorized to hold the proper offices shall be valid and sufficient for all purposes, although any such person shall have ceased to hold office at the time of authentication of the Bond or shall not have held office on the date of the Bond. A T T EST: j~ Lewis, C~9 City Clerk SEAL] Section 8. Payment of Principal and Interest. The Bonds shall be payable in lawful money of the United States of America which at the time of payment is legal tender for the payment of public and private debts. As long as the Bond Bank is the Registered Owner of the Bonds, payment of principal and interest on the Bonds shall be made as provided in the Loan Agreement. If the Bond Bank is no longer the Registered Owner of the Bonds, installments of principal and interest on the S:\RESOLUTIONS\2006\06-128 harbor Refunding Res.doc Page 5 of 10 45 Bondsshall be paid by check mailed by first class mail to the Registered Owner as of the fifteenth day of the month preceding each installment payment date at the address appearing on the Bond Register; provided that the final installment of principal and interest on a Bond shall be payable upon ... J"presentation and surrender of the Bond by the Registered Owner at the office of the Registrar. Section 9. Registration. The Bonds shall be issued only in registered form as to both principal and interest. The City designates the City Finance Director as Registrar for the Bonds. The Registrar shall keep, or cause to be kept, the Bond Register at the principal office of the City. The City covenants that, until all Bonds have been surrendered and canceled, itwill maintain a system for recording the ownership of each Bond that complies with the provisions of Section 149 of the Code. The City and the Registrar may treat the person in whose name any Bond shall be registered as the absolute owner of such Bond for all purposes, whether or not the Bond shall be overdue, and all payments of principal of and interest on a Bond made to the Registered Owner thereof or upon its ordershall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City nor the Registrar shall be affected by any notice to the contrary. Section 10. Transfer and Exchange. Bonds shall be transferred only upon the books for the registration and transfer of Bonds kept at the office of the Registrar. Upon surrender for transfer or exchange of any Bond at such office, with a written instrument of transfer or authorization for exchange in form and with guaranty of signature satisfactory to the Registrar, duly executed by the Registered Owner or the duly authorized attorney of the Registered Owner, the City shall execute and deliver an equal aggregate principal amount of Bonds of the same maturity of any authorized denominations, subject to such reasonable regulations as the City may prescribe and upon payment sufficient to reimburse it for any tax, fee or other governmental charge required to be paid in connection with such transfer or exchange. All Bonds surrendered for transfer or exchange shall be canceled by the Registrar. i Section 11. Bonds Mutilated. Destroyed. Stolen or Lost. Upon surrender to the Registrar of a mutilated Bond, the City shall execute and deliver a new Bond of like maturity and principal amount. Upon filing with the Registrar of evidence satisfactory to the City that a Bond has been destroyed, stolen or lost and of the ownership thereof, and upon furnishing the City with indemnity satisfactory to it, the City shall execute and deliver a new Bond of like maturity and principal amount. The person requesting the execution and delivery of a new Bond underthis section shall comply with such other reasonable regulations as the City may prescribe and pay such expenses as the City may incur in connection therewith. Section 12. Designation of RefundedBonds. The City Manager and the City Finance Director each is authorized to designate which maturities of 2000 Bonds authorized to be refunded in this Resolution shall be refunded, provided that the refunding of the 2000 Bonds so designated shall realize a substantial debtservice savings, net of all issuance costs and underwriting discount, on a present value basis. Section 13. Tax Covenants. The City covenants to comply with any and all applicable requirements set forth in the Code in effect from time to time to the extent that such compliance shall ! be necessary for the exclusion of the interest on the Bonds from gross income for federalincome tax ..J S:\RESOLUTIONS\2006\06-128 harbor Refunding Res.doc Page 6 of 10 46 purposes. The City covenants that it will make no use of the proceeds of the Bonds which will cause the Bonds or the Refunded Bonds to be "arbitrage bonds" subject to federal income taxation by reason of section 148 of the Code. The City covenants that it will not take or permit any action that would cause the Bonds to be "private activity bonds" as defined in Section 141 of the Code. Section 14. Amendatory and Supplemental Resolutions. A) The Council from time to time and at any time may adopt a resolution or resolutions supplemental hereto, which resolution or resolutions thereafter shall become a part of this resolution, for anyone or more of the following purposes: 1) To add to the covenants and agreements of the City in this Resolution, other covenants and agreements thereafter to be observed, or to surrender any right or power herein reserved to or conferred upon the City. 2) To make such provisions for the purpose of curing any ambiguities or of curing, correcting or supplementing any defective provision contained in this Resolution or in regard to matters or questions arising under this Resolution as the Council may deem necessary or desirable and not inconsistent with this Resolution and which shall not adversely affect the interests of the Registered Owners of the Bonds. Any such supplemental resolution may be adopted without the consent of the Registered Owner of any of the Bonds at any time outstanding, notwithstanding any of the provisions of subsection (B) of this section. B) With the consent of the Registered Owners of not less than 60 percent in aggregate principal amount of the Bonds at the time outstanding, the Council may adopt a resolution or resolutions supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Resolution or of any supplemental resolution; provided, however, that no such supplemental resolution shall: 1) extend the fixed maturity of any of the Bonds, or reduce the rate of interest thereon, or extend the time of payments of interest from their due date, or reduce the amount of the principal thereof, or reduce any premium payable on the redemption thereof, without the consent of the Registered Owners of each Bond so affected; or 2) reduce the aforesaid percentage of Registered Owners of Bonds required to approve any such supplemental resolution without the consent of the Registered Owners of all of the Bonds then outstanding. It shall not be necessary for the consent of the Registered Owners of the Bonds under this subsection to approve the particular form of any proposed supplemental resolution, but it shall be sufficient if such consent approves the substance thereof. C) Upon the adoption of any supplemental resolution under this section, this Resolution shall be deemed to be modified and amended in accordance therewith, and the respective rights, S:\RESOLUTlONS\2006\06-128 harbor Refunding Res.doc Page 7 of 10 47 duties and obligations under this Resolution of the City and all Registered Owners of outstanding Bonds shall thereafter be subject in all respects to such modification and amendment, and all the terms and conditions of the supplemental resolution shall be deemed to be part of the terms and conditions of this Resolution for any and all puqmses. .J D) Bonds executed and delivered after the execution of any supplemental resolution adopted under this section may bear a notation as to any matter provided for in such supplemental resolution, and if such supplemental resolution shall so provide, new Bonds modified so as to conform, in the opinion of the City, to any modification of this Resolution contained in any such supplemental resolution may be prepared by the City and delivered without cost to the Registered Owners of the Bonds then outstanding, upon surrender for cancellation of such Bonds in equal aggregate principal amounts. Section 15. Defeasance. In the event money and/or non-callable direct obligations of, or obligations the timely payment of principal of and interest on which are unconditionally guaranteed by, the United States of America or an agency or instrumentality of the United States of America, maturing at such times and bearing interest to be earned thereon in amounts sufficient to redeem and retire any or all of the Bonds in accordance with their terms are set aside in a special trust account to effect such redemption or retirement and such moneys and the principal of and interest on such obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made to payor secure the payment of the principal of and interest on such Bonds and such Bonds shall be deemed not to be outstanding. Section 16. Exchange of Bonds; Amendatory Loan Agreement. The Bonds shall be delivered to the Bond Bank in exchange for the Refunded Bonds. The City has been advised by the Bond Bank that bond market conditions are fluctuating and that the most favorable market conditions for the sale of the Bond Bank Bonds may not occur on the date of a regular Council meeting. The Council has determined that it would be inconvenient to hold a special meeting on short notice to approve the terms of the Bonds. Therefore, the Council hereby determines that it is in the best interest of the City to delegate the authority to approve the terms of the Bonds as provided herein. Each of the City Manager and the City Finance Director is hereby authorized to determine the aggregate principal amount, maturity amounts, interest rates, yields, dated date, principal and interest payment dates, and redemption terms, if any, for the Bonds, so that such terms of the Bonds conform to the terms of the corresponding Bond Bank Bonds; provided that (I) the principal amount of each maturity of the Bonds shall not exceed the principal amount of the portion of the corresponding maturity of the Bond Bank Bonds that is allocated to the making of a loan to the City; and (ii) the interest rate on each maturity of the Bonds shall not exceed the interest rate on the corresponding maturity of the Bond Bank Bonds. Based upon the foregoing determinations, the City Manager and the City Finance Director each is authorized to negotiate and execute an Amendatory Loan Agreement. The authority granted to the City Manager and City Finance Director by this section shall expire 180 days after the effective date of this Resolution. If the City Manager or City Finance Director has not executed an Amendatory Loan Agreement within 180 days from the effective date of this Resolution, the Amendatory Loan Agreement may not be executed on behalf of the City without further authorization from the Council. S:\RESOLUTIONS\2006\06-128 harbor Refunding Res.doc Page 8 of 10 i J 1 J 48 Section 17. Official Statement. The information in a preliminary Official Statement relating to the City and the Bonds may be modified as the City Manager or City Finance Director may determine. The City Manager and City Finance Director each is hereby authorized to approve the form of the preliminary and the final Official Statement for the Bond Bank Bonds as each pertains to the City and the Bonds. Section 18. Authority of Officers. The Mayor, the City Manager, the City Finance Director, and the City Clerk are, and each of them hereby is, authorized and directed to do and perform all things and determine all matters not determined by this Resolution, to the end that the City may carry out its obligations under the Bonds and this Resolution. Section 19. Miscellaneous. A) All payments made by the City of, or on account of, the principal of or interest on the Bonds shall be made on the several Bonds ratably and in proportion to the amount due thereon, respectively, for principal or interest as the case may be. B) No recourse shall be had for the payment of the principal of or the interest on the Bonds or for any claim based thereon or on this Resolution against any member of the Councilor officer of the City or any person executing the Bonds. The Bonds are not and shall not be in any way a debt or liability of the State of Alaska or of any political subdivision thereof, except the City, and do not and shall not create or constitute an indebtedness or obligation, either legal, moral or otherwise, of said state or of any political subdivision thereof, except the City. Section 20. Continuing Disclosure. The City hereby covenants and agrees that it will execute and carry out all of the provisions of a Continuing Disclosure Certificate in form and substance satisfactory to the Bond Bank. Notwithstanding any other provision of this Resolution, failure of the City to comply with the Continuing Disclosure Certificate shall not be considered a default of the City's obligations under this Resolution or the Bonds; however, the beneficial owner of any Bond or Bond Bank Bond may bring an action for specific performance, to cause the City to comply with its obligations under this section. Section 21. Severability. If anyone or more of the provisions of this Resolution shall be declared by any court of competent jurisdiction to be contrary to law, then such provision shall be null and void and shall be deemed separable from the remaining provisions of this Resolution and shall in no way affect the validity of the other provisions of this Resolution or of the Bonds. Section 22. Effective Date. This resolution shall take effect 30 days following adoption by the Seward City Council. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 27th day of November, 2006. S:\RESOLUTlONS\2006\06-128 harbor Refunding Res.doc Page 9 of 10 49 CITY OF SEWARD, ALASKA RESOLUTION 2006-128 i 1 14i: "'~V Vanta Shafer, Malfor i J AYES: NOES: ABSENT: ABSTAIN: Dunham, Valdatta, Schafer, Bardarson, Thomas, Amberg, Shafer None None None ATTEST: Jean ewis, CMC\ Cit CI rk UII"", I1~"",~ Y\Po~....~a ":. City Seal) ~ (j ,,'rF ~" ~ l~ --c-- ~... ':. S~.J'AL 'e'"J.:.,! :: e:. It!r vj'~ ...rv... ~ ~v';.., ..~ Iv!: 1 '\~ ..' ~ ':1h ...!>:...l.... ~'2j ....1$ OF I\\..\~~." 11"'11"'" j I j J S:\RESOLUTIONS\2006\06-128 harbor Refunding Res.doc Page 10 of 10 50 51 Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2016-053 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT IN AN AMOUNT NOT TO EXCEED $58,903.00 WITH HARMON CONSTRUCTION, INC. TO PROVIDE ABATEMENT, DEMOLITION, AND REMOVAL SERVICES FOR DERELICT CITY-OWNED STRUCTURES LOCATED AT 408 MADISON AND 516 – 522 FIRST AVENUE, AND APPROPRIATING FUNDS WHEREAS, in 2012 and 2013 the City took possession through the tax foreclosure process of Lots 29, 30, 31 and 32, Block 27 and the West ½ of Lots 19 and 20, Block 30 Original Townsite of Seward; and WHEREAS, the intent of the City was to obtain ownership through the foreclosure process by paying the delinquent taxes, contracting the cleanup of the properties, then selling the properties to recover the costs incurred and finally placing the properties back on the tax roll; and WHEREAS, both of these property locations are in derelict condition, extreme eye sores, and are public safety hazards; and WHEREAS, over the past few years numerous complaints have been received from the public regarding the condition of these properties; and WHEREAS, at the May 23, 2016 meeting the City Manager provided the scoring criteria and informed the Council of the Request For Proposals (RFP) to provide abatement, demolition and removal service; and WHEREAS, two (2) qualified proposals were received from professional contractors; three (3) staff reviewed and scored the proposals on July 7, 2016; Harmon Construction, Inc. scored the highest of the proposers with a bid price of $58,903.00; and WHEREAS, on July 11, 2016 an Intent To Award notice was issued and the City of Seward Professional Services Agreement was signed by Harmon Construction, Inc. and is included with this resolution. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Council hereby authorizes the City Manager to enter into the Professional Services Agreement with Harmon Construction, Inc. as attached hereto, in substantial form, in an 52 CITY OF SEWARD, ALASKA RESOLUTION 2016-053 ___________________________ amount not to exceed $58,903.00 for abatement, demolition, and removal services. Section 2. The Council further authorizes the appropriation in an amount not to exceed $58,903.00 from the General Fund account 01000.1180.7810 for the abatement demolition and removal contract. Section 3. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd day of August, 2016. THE CITY OF SEWARD, ALASKA Jean Bardarson, Mayor AYES: NOES: ABSENT: ABSTAIN: ATTEST: ______________________ Brenda J. Ballou, CMC Acting City Clerk (City Seal) 53 Agenda Statement v. rofs , Meeting Date: August 22, 2016 To: City Council410,1CAr 1.4-7 ASII Through: Jim Hunt, City Manager Ron Long, Assistant City Manager From: DonnaGlenz, Planner Agenda Item: Approving a professional services contract with HarmonConstruction for abatement/demolition and removal services BACKGROUND &JUSTIFICATION: In 2012 and 2013 the City of Seward took possession of two separate properties through the tax foreclosure process. All parcels are City owned and located within the City limits of Seward. Site number 1 is located at 516 — 522 First Avenue, Lots 29, 30, 31 and 32, Block 27 Original Townsite of Seward, Tax Parcel ID numbers 14805003 & 14805004. Site number 2 is located at 408 Madison, the West 1/2 of Lots 19 and 20, Block 30, Original Townsite of Seward,Tax Parcel ID number 14813010. The intent of the City has always been toobtain ownership through the foreclosure process by paying the delinquent taxes, contracting thecleanup of the properties, then selling the properties to recover the costs incurred and finally placing the properties back on the tax roll. Once the properties were obtained, the City had difficulties issecuring a contractor to complete thedemo and cleanup of these derelict properties. Both of the these property locations are in derelict condition, extreme eye sores and are public safety hazards, over thepast few years the City has received numerous complaints from the public regarding the unsightly and derelictconditions. In February 2016 the City wasable to hire the Satori Group to perform a hazardous materials survey of the properties. Once the inspection was performed and the report provided the City was able to conduct the Request for Proposals (RFP) for the abatement/demolition and removal services needed. The City Manager provided the scoring criteria and informed the Council of the RFP to provide theneeded services, at the May 23,2016 Council meeting. Two (2) qualified proposals were received from professional contractors; three (3) staff reviewed andscored the proposalson July 7th; Harmon Construction, Inc. scoredthe highest of the proposers with a bid price of $58,903.00. The amount of $58,903.00 was the lowest, responsive proposal and metthe qualifications of the City. Harmon Construction was sent a letter of intent toaward on July 11, 2016 andthe City of Seward Professional Services Agreement was signed by HarmonConstruction and is included with this resolution. INTENT: Award the Professional Services Agreement for abatement/demo and removal services. CONSISTENCY WITH CITY PLANS Yes No N/A 54 Comprehensive Plan (2020, approved by Council August 8, 2005) Community Appearance Improve the appearance of the entire community through increased 1. Removal of numerous abandoned and X dilapidated buildings by both city and privateproperty owners(page 9) 3.9.2.1 Encourage citizens, as well as the city, to take an active role in beautifying the community. (page 30). 2 Strategic Plan (Approved by Council Resolution 99-043): X Promote a safe community(Page 18) 3 Seward City Code: X Numerous sections of title 9, Health and Safety support this action: FISCAL NOTE: The costs incurred for the delinquent taxes, hazardous materialinspection, staff time, RFP advertisement and theabatement, demo and removal and any other costs will be recovered in the sale of the properties. Approved by Finance Department: ATTORNEY REVIEW: Yes No X RECOMMENDATION: Council to approve Resolution 2016-0 5 3 , authorizing the City Manager to enter into the Professional Services Agreement with Harmon Construction, Inc. as attached hereto, in substantial form, in an amount not to exceed$58,903.00. 55 56 57 58 59 60 61 62 63 64 City of Seward, Alaska City Council Minutes June 27, 2016 Volume 40, Page CALL TO ORDER The June 27, 2016 regular meeting of the Seward City Council was called to order at 7:02 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 *arrived at 8:00 p.m. Dave Squires Dale Butts Sue McClure Deborah Altermatt comprising a quorum of the Council; and Jim Hunt, City Manager Johanna Kinney, City Clerk Brenda Ballou, Deputy City Clerk Absent – None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING George Goem first came to Seward in 2014. As a boat owner, his impression of the bathroom at the harbor was that they were nice, and the new dock ramps were really nice. He was dismayed that the picnic tables that were previously located at the camp grounds were no longer there, although the log benches were great. He wondered where visitors could go to charge cell phones if they were camping, and asked council to consider turning on the outlets at the pavilion. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/McClure) Approval of Agenda and Consent Agenda Keil added Resolution 2016-040 and Resolution 2016-041 to the consent agenda. Long added an item to Other New Business for a discussion on obtaining a General Obligation Bond for road paving projects. Bardarson removed the approval of the May 23, 2016 minutes the consent agenda. 65 City of Seward, Alaska City Council Minutes June 27, 2016 Volume 40, Page Bardarson added an item to Other New Business for a discussion about setting a training session for the City Council, Boards and Commissions addressing the Open Meetings Act (OMA), Parliamentary Procedures, and Quasi-Judicial Procedures. Motion Passed Unanimous The clerk read the following approved consent agenda items: Approval of the June 13, 2016 Regular City Council Meeting Minutes. Resolution 2016-040, Accepting The 2016 Volunteer Fire Assistance Grant (VFA) In The Amount Of $7,987.50 And Authorizing The 10% Matching Fund Of $887.50 And Appropriating Funds. Resolution 2016-041, Accepting Funds From The Alaska State Library For A Continuing Education Grant In The Amount Of $1,000.00 And Appropriating Funds. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Chamber of Commerce Report. Cindy Clock reported the chamber had been very busy. The chamber had worked with city administration to launch “Bear Paws on Port Avenue” which were bear paws painted on the sidewalks along Port Avenue to indicate where pedestrians should walk safely. Kris Harris was busy renewing chamber memberships. The current men’s leader in the Halibut Tournament had a 191.2 pound halibut. Phil Mink caught a tagged fish, and although the tag was from 2015, he would still receive $100. In response to Hunt, Clock said the current women’s tournament leader had a 171 pound halibut. Clock thanked the Electric Department for the preparations they began making today for the Fourth of July Festival. The chamber held a Racer Clinic where experienced runners helped familiarize new runners with the Mount Marathon course. There would also be a Ski Patrol Safety and First Aid Response Team on standby on race day; both measures helped make the Mount Marathon Race safer for participants. The Silver Salmon Derby would be in August and the chamber was pleased with a new sponsorship this year from Chevron. There would be two art walks this month, on July 1, 2016 and July 8, 2016. The chamber was fully staffed and happy with the city’s activity. Borough Assembly Report. Brandii Holmdahl said the assembly had been addressing several finance issues. The Borough Mayor’s budget had been passed earlier in June, after the assembly made some changes to it, including modifying the Seward landfill station’s schedule to close one day each week during the six month off season. The Central Area Rural Transit System (CARTS) program, which provided low income transportation, was another hot topic and would affect Seward. Holmdahl expressed her disappointment that Seward was not being supported as much as other communities, even though taxes went to help pay for services; however, the Independent Living Center had found alternate funding able to assist with transportation in Seward, so should not be impacted too badly. Another issue was proposing the sales tax cap be increased from $500 to $1,000; this was approved by the assembly and would be on the October ballot for 66 City of Seward, Alaska City Council Minutes June 27, 2016 Volume 40, Page voter approval. At the next assembly meeting, they would be addressing senior residential property tax exemptions. Currently seniors received $50,000 from the borough automatically, plus $150,000 exemption required by the State of Alaska on top of that, plus an additional $150,000 exemption from the Kenai Peninsula Borough on top of that. The proposal coming before the assembly would phase out the borough’s additional $150,000 exemption over a period of time until the exemption capped at $200,000. At the last assembly meeting, there were licensed approved for seven marijuana cultivation facilities, the nearest one in Seward being in Stoney Creek. The borough was also considering restructuring the planning commission, but that proposal would not affect Seward. There would be one assembly meeting in July during the third week. City Manager’s Report. Jim Hunt reported there had been no purchase orders between $10,000 and $50,000 approved by the City Manager since the last council meeting. Assistant City Manager Ron Long spoke about working with the state to identify hot spots along Lowell Point Road that could be addressed in smaller, more fundable increments. The U.S. Coast Guard Change of Command ceremony would be Wednesday this week. In response to McClure regarding the Breakwater Project at the Seward Industrial Marine Center (SMIC), Long said the first load of 3,000 tons was arriving from Kodiak and would be laid as the core rock. Altermatt inquired where any arriving signal class ships from the U.S. Coast Guard wouldbe docked, and Long said there was potential for them to dock in the harbor or at SMIC; they would have to examine the pros and cons of each location and decide where they wanted to dock. Other Reports, Announcements and Presentations PUBLIC HEARINGS Ordinance 2016-003, Amending The Zoning Map Designation Of Lots 11 And 12, Block 7, Federal Addition, From Single Family Residential (R1) To Two-Family Residential (R2) In Compliance With The Land Use Plan, Located At 700 Second Avenue. Motion (Keil/McClure) Enact Ordinance 2016-003 Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. Long said this ordinance was in line with the city’s Land Use Plan. Keil said she would support this because there was no objection from staff and this rezone had been approved by the Planning and Zoning Commission. Butts said that had been a concern expressed by an adjacent property owner. Bardarson clarified that there could not be a bunkhouse put on that property. 67 City of Seward, Alaska City Council Minutes June 27, 2016 Volume 40, Page Motion Passed Unanimous Ordinance 2016-004, Amending Portions Of Seward City Code § 2.05.035, Denial Of Request; Appeal, To Establish A Customary Timeline To Appeal The Denial Of A Request For Information. Motion (Keil/McClure) Enact Ordinance 2016-004 City Clerk Johanna Kinney explained that the City Attorney had discovered a gap in the city code for addressing a denial of public records request. Although the appeal process itself was outlined, there was no corresponding time limit defined, so this ordinance would define the timeframe in which a person could appeal a denial of records request. In addition, this ordinance would allow for the appeal hearing to be conducting during a special meeting and not confined to a regular meeting. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. No one appeared to address the Council and the public hearing was closed. In response to Squires, Kinney explained that if a denial for records happened, the requestor was provided with a documented reason for the denial. Motion Passed Unanimous Ordinance 2016-005, Amending Portions Of Seward City Code Titles 8, 9, And 15, Regarding Requirements And Standards For Commercial Marijuana Establishments In The City Of Seward. Motion (Keil/McClure) Enact Ordinance 2016-005 Long said this ordinance addressed the commercial use of marijuana, not personal use. Local communities were allowed to restrict time, place, and manner of commercial activities; administration had worked with the borough to fashion this ordinance. The allowable hours of operation being put forth tonight varied from the state rather than staying with the state’s 5:00 a.m. closure rule, administration was proposing adopting the more restrictive 2:00 a.m. closure. As well, administration was proposing a more restrictive 1,000 foot buffer zone around schools rather than the state’s 500 foot buffer zone. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Darryl Schaefermeyer was disappointed by the city’s support of this ordinance. The land use allowed provision of this ordinance caught his attention; he objected to the limited cultivation facility allowance. He asked council to strike this particular section of the ordinance. 68 City of Seward, Alaska City Council Minutes June 27, 2016 Volume 40, Page No one else appeared to address the Council and the public hearing was closed. Squires was concerned with the application review process. Squires recalled that for a new or renewal liquor license application, there was an internal review process established that included a sign off from the fire and police departments. Squires believed there should be a similar review process required in this marijuana ordinance. In response to Squires, Kinney said although the liquor license review process was not specified in city code, there was an additional internal requirement for fire and police sign off. The same could be true for a marijuana establishment. Motion To Amend (Squires/Casagranda) Amend Ordinance 2016-005 in Section 8.25.025 (b) by adding # 3 “The Applicant shall be in compliance with all City safety requirements.” Motion To Amend Passed Unanimous Long said the city would rely upon the detailed application required by the state and would not duplicate the application process. Motion To Amend (Butts/Squires) Amend Ordinance 2016-005 in Section 8.25.030 by striking 8:00 a.m. and replacing it with 10:00 a.m. Butts felt this would bring this in line with retail liquor establishments inside city limits. Motion To Amend Passed Yes: Butts, Squires, McClure, Altermatt No: Casagranda, Keil, Bardarson Main Motion Passed Unanimous UNFINISHED BUSINESS – None NEW BUSINESS Approval of the May 23, 2016 Regular City Council Meeting Minutes. Motion (Keil/Squires) Approve the May 23, 2016 Regular City Council Minutes. Bardarson wished to clarify the minutes regarding the boardwalk discussion: The project would not move forward using the old dock sections that were removed from the harbor during the recent renovation, but the project would move forward by putting some kind of a connection between Second and Third Avenues in the right of way at the south end of the boardwalk to create a pedestrian path. 69 City of Seward, Alaska City Council Minutes June 27, 2016 Volume 40, Page Motion To Amend (Bardarson) Clarify the May 23, 2016 Regular City Council Minutes on the agenda item Discussion on the Memorandum of Understanding concerning the Museum by striking the words “and develop an amendment to” so the sentence reads “Council directed administration to meet with the Resurrection Bay Historical Society (RBHS) to discuss the current MOU.” Motion Passed Unanimous Other New Business Items Discussion of Kenai Peninsula Borough Ordinance 2016-25, Amending KPB 2.40.010 to Reduce Planning Commission Membership. City Council directed administration to draft a letter stating the City’s lack of support for the ordinance for Mayor Bardarson to sign and send to the borough before the next council meeting. Council recessed at 8:50 p.m. Council resumed at 8:52 p.m. Discussion on bond for road paving. City Council directed administration to provide an updated color map and priority list of paving areas. Motion (Keil/McClure) Direct administration to bring forward a resolution providing two options for road paving for council’s consideration at the next council meeting. Motion Passed Unanimous Consent Discussion on parliamentary procedure, etc. City Council directed administration to obtain a quote for Linda Murphy to provide training in September. INFORMATIONAL ITEMS AND REPORTS Providence Seward Medical and Care Center Financial Reports through April, 2016. COUNCIL COMMENTS Squires asked if crosswalks could be painted on Harbor Avenue and Long agreed. He suggested that Department Heads should be made aware of grants in a more timely manner to 70 City of Seward, Alaska City Council Minutes June 27, 2016 Volume 40, Page facilitate acceptance of the funding. Squires thought the new fire simulator training facility was great and he wished that council could be given a tour. McClure provided an update on the MOU with RBHS and said RBHS wished to have a planning meeting prior to meeting with administration, and that meeting had not yet been set. Mount Marathon Race bags were stuffed and ready, and there would be a no dogs allowed in the race areas policy in effect this year. The state had approved a portion of Third Avenue to be blocked off for the race. Race headquarters will be at the K.M. Rae Building this year; racers and volunteers could check in there. She wished everyone a safe Fourth of July. Bardarson thanked Providence for a $300,000 grant called Providence Seward Community Benefit Grant; the funds would be distributed to a variety of endeavors around Seward. Thanked city clerk for the tablets. She wished everyone have a happy and safe Fourth of July. Casagranda hoped administration would address the potholes around the bridge at the waterfall. The Seward Flag Committee met last Thursday and a flag design had been selected; a resolution would be coming forward on July 25, 2016. Butts had the first ever class with the state at the new fire simulator training facility. He congratulated the Fire Department on the new fire truck and hoped everyone would have a safe Fourth of July. Hunt said the Waterfront Park WiFi testing would go live tomorrow. In response to Bardarson, Long said the potholes at the waterfall would continue to be monitored and addressed on a regular basis. CITIZEN COMMENTS George Goem would help with the potholes. The Sugar Mountain movie came out really great; he had sat in on the sound mix for the film, and it showed Seward in a great light. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS – None ADJOURNMENT The meeting was adjourned at 9:23 p.m. ____________________________________ ____________________________________ Johanna Kinney, CMC Jean Bardarson City Clerk Mayor (City Seal) 71 City of Seward, Alaska City Council Minutes July 11, 2016 Volume 40, Page CALL TO ORDER The July 11, 2016 regular meeting of the Seward City Council was called to order at 7:01 p.m. by Mayor Jean Bardarson. OPENING CEREMONY Police Chief Tom Clemons led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Marianna Keil Ristine Casagranda Dave Squires Dale Butts Sue McClure Deborah Altermatt comprising a quorum of the Council; and Jim Hunt, City Manager Johanna Kinney, City Clerk Brenda Ballou, Deputy City Clerk Will Earnhart, City Attorney Absent – None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Tim McDonald thought Seward was busier now more than ever, but he was bothered with the disrepair of the city’s streets. He suggested the city consider using cement rather than asphalt. He thought the road beds in Seward were stable enough to hold up to cement roads. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Casagranda) Approval of Agenda and Consent Agenda Casagranda removed Resolution 2016-042 from the consent agenda. Bardarson added a City Attorney Report. Bardarson added a New Business Item to Discuss Scheduling A City Attorney Mid-Year Evaluation. Motion Passed Unanimous The clerk read the following approved consent agenda items: 72 City of Seward, Alaska City Council Minutes July 11, 2016 Volume 40, Page Resolution 2016-043, Appointing Jean Lewis As Temporary Deputy City Clerk. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards City Manager’s Report. City Manager Jim Hunt said no purchases had been made between $10,000 and $50,000 since the last meeting. He commended the Parks and Recreation Department for a good job keeping up with landscaping duties this year. Hunt noted that Hamilton Construction was back underway with the breakwater project. There was another water overflow on Dieckgraeff Road from breaching Japanese Creek over the weekend, and Hunt would be organizing a meeting with state, borough and University of Alaska Fairbanks (UAF) personnel to address the issue of bedloading this fall. Assistant City Manager Ron Long stated Seward Bear Creek Flood Service Area Board (SBCFSAB) had requested to join in with city efforts to save the eroding shoreline along Waterfront Park. Negotiations with AVTEC were unsuccessful and would result in the closure of the AVTEC gym beginning August 1, 2016. Administration had met with Vigor to discuss updating certification processes for the city-owned Syncro lift. Long stated administration was appreciative of the $300,000 that remained in the budget for the Lowell Canyon Flood Feasibility Study. Long recognized the Police and Fire Departments for their volunteer assistance and material support for the Military Appreciation Combat Fishing Tournament, and wanted to note that no taxpayer dollars were spent for this. In response to Butts, Hunt stated City Hall would be sealed off in sections during the asbestos abatement and carpet replacement, and employees would be scheduled and staged to reduce closures and continue operations. In response to Casagranda, Long confirmed the AVTEC gym would be open for AVTEC students only after August 1, 2016. Resurrection Bay Historical Society (RBHS) was still discussing what they would be presenting for the museum’s Memorandum of Agreement (MOA). Hunt answered that the Public Works position had not been filled yet, but they would be interviewing six applicants. Long stated the purpose of the Wage Committee was to have a mechanism to look at and rank positions, not individuals, and eliminate the need for outside consultants. There was currently a backlog of positions for the Wage Committee to address; any recommendations from the committee would have to come before City Council for approval. Casagranda noted for the public that electric rates went down after January 1, 2016 so in any comparisons, there would appear to be big fluctuations. Long reiterated that during winter energy rates had been lowered for residents, and during summer they were being raised, resulting in the same net annual usage for year round residents. Bardarson reminded everyone that the fuel surcharge was a pass-through from Chugach Electric and was not from the city. Hunt commented the state was administering the road work program and would possibly begin next year. In response to Squires, Hunt confirmed the city was encumbered and guaranteed and there was no federal administrative sweep of these funds. 73 City of Seward, Alaska City Council Minutes July 11, 2016 Volume 40, Page Keil clarified that the CHC extension was good for three years. City Attorney Report. Will Earnhart said there was a tentative agreement with IBEW. After several rounds of negotiations, the bottom line was an approximate 2% raise this year and 1% raise for next two years. There was a slight increase in pension contributions with the overall increase being 2.3-2.4%. More importantly, pay scale was more in line to attract qualified candidates, with Seward being at the top of scale for small communities but at the lower end of the scale for larger railbelt utilities on the road system. Earnhart congratulated the Police Chief and City Manager for their alertness in stopping an errant driver during the junior race for the Mount Marathon Race. In response to McClure, Earnhart stated his son ran the junior race for the first time and won his age division, and placed 12th overall. Other Reports, Announcements and Presentations – None PUBLIC HEARINGS – None UNFINISHED BUSINESS – None NEW BUSINESS Resolution 2016-042, Amending And Restating The ICMA Retirement Corporation Governmental Money Purchase Plan And Trust Document, In Response To Changes In The Internal Revenue Code And Rescinding 2016-027. Motion (Casagranda/McClure) Approve Resolution 2016-042 Finance Director Kris Erchinger said the intent of this resolution was to update the city’s 401K plan with ICMA. It was a second retirement plan that had been added when a former City Manager did not wish to be in PERS. The Chief of Police was opted out of PERS and put into this plan as well. The other time this plan was used was when council recently negotiated a one-time contribution into the City Manager’s plan. The city received notification from ICMA that the IRS had made subsequent changes to these plans and the IRS code, therefore, the city needed to amend the new language and eliminate the appendix. Erchinger said changes could be made to this plan with a subsequent resolution in the future. In response to Bardarson, Erchinger affirmed this document could not be changed to a range as it related to the contribution rate. In response to Casagranda, Erchinger stated the city must be in compliance with IRS regulations. The intent with this resolution was to incorporate the IRS regulations and not to make any changes to current practice. 74 City of Seward, Alaska City Council Minutes July 11, 2016 Volume 40, Page City Clerk Johanna Kinney noted that the boxes being referred to as checked off on the application were visible on the hard copy, but did not transfer over to the digital copy to be viewable on the tablets. She suggested using the paper copy for this conversation. Discussion ensued on the agreement, amendments added, and were clarified by Erchinger. Motion to Amend (Casagranda/Bardarson) Uncheck the “Management Employees” box on Page 2 of the ICMA Agreement. Hunt stated having management employees selected would be a useful tool for recruiting qualified people if they did not want to be in PERS at the time of hire. Erchinger stated the time to negotiate with people would be delayed by a month and the city could possibly lose that employee. This allowed for a lower contribution rate than PERS and added flexibility for hiring. Motion to Amend Failed Yes: Casagranda No: Butts, Altermatt, Keil, Squires, McClure, Bardarson Main Motion Passed Yes: McClure, Squires, Altermatt, Keil, Butts, Bardarson No: Casagranda Other New Business Items Discussion To Schedule Mid-Year Evaluation For The City Attorney. Council decided to eliminate the mid-year evaluation of the City Attorney for this year, and conduct an annual evaluation in the first quarter of 2017. INFORMATIONAL ITEMS AND REPORTS Planning and Zoning Commission Quarterly Report. COUNCIL COMMENTS Keil said today the governor proposed a 3% sales tax on all sales, and she was not aware that the proposal included an exemption for cities that already had sales tax. She added the governor was also calling for double taxes on motor fuel, alcohol and cigarettes. McClure was pleased with the Fourth of July weekend, and announced the chamber was looking for Silver Salmon Derby volunteers. Casagranda thanked all volunteers for the Fourth of July. 75 City of Seward, Alaska City Council Minutes July 11, 2016 Volume 40, Page Butts echoed the Fourth of July accolades, and was pleased with the television coverage. Altermatt also thanked the Chamber of Commerce and all the volunteers. Hunt thanked Lieutenant Governor Mallott and his wife Toni for visiting Seward over the Fourth of July. Bardarson had dinner with Lieutenant Governor Mallott and his wife and showed him the Lowell Canyon Tunnel and SMIC and thanked him for his support on those projects. Bardarson asked Butts to provide a report on the Kenai Peninsula Economic Development District (KPEDD) following his meetings. She also thanked volunteers for the Fourth of July weekend, and especially enjoyed the mini-Mount Marathon Race. CITIZEN COMMENTS Suzi Towsley thanked council for all their work. She also thanked Casagranda for bringing up the discussion on the electric rates tonight, and thought a better explanation for citizens about the electric rates would be beneficial. Towsley also requested council consider a future revision to the Roving Vendor Program to allow for non-motorized vehicles like bicycles. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS – None ADJOURNMENT The meeting was adjourned at 8:15 p.m. ____________________________________ ____________________________________ Johanna Kinney, CMC Jean Bardarson City Clerk Mayor (City Seal) 76 City of Seward, Alaska City Council Minutes July 25, 2016 Volume 40, Page CALL TO ORDER The July 25, 2016 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Jean Bardarson. OPENING CEREMONY Police Chief Tom Clemons led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Marianna Keil Ristine Casagranda Dave Squires Sue McClure Deborah Altermatt comprising a quorum of the Council; and Jim Hunt, City Manager Ron Long, Assistant City Manager Brenda Ballou, Acting City Clerk Absent – Dale Butts CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING George Goen said Obihiro Park was a very nice space to enjoy. The flowers all over the city looked very nice, especially at Mariners Memorial Park. He was not sure where to bring plastic bottles for recycling and was thankful for the picnic table at the campground being installed. Goen thought the city should consider electricity hookups, a charging station, or a WiFi hotspot for better internet accessibility for visitors at Branson Pavilion. He also suggested that Seward should consider having a Sister City within the United States, and thought like Hana or Lahaina would be good choices since there were similarities in industries between the cities. Sharyl Seese came to speak about the potholes on the roads. She had a large pothole in front of her house on First Avenue that measured 30” x 18” x 7” and had counted 18 potholes on her street alone. There were more all over town and she felt something should be done to patch them. Seese lived by the jeep trail which had lots of activity and parking and said it was difficult to avoid the potholes in that area. Katelyn Correa said her flag design had been chosen as the new city flag, and she thanked council for the opportunity. 77 City of Seward, Alaska City Council Minutes July 25, 2016 Volume 40, Page APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Casagranda) Approval of Agenda and Consent Agenda Bardarson removed the Chamber of Commerce report and the Borough Assembly report from the agenda. Keil moved Resolution 2016-048 to the #1 position under New Business/Resolutions. Motion Passed Unanimous The clerk read the following approved consent agenda items: Appoint Christy Terry to the Port and Commerce Advisory Board with a term expiring July, 2019. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards City Manager Report. Jim Hunt said there were no purchase orders made by the City Manager between $10,000 and $50,000 since the last council meeting. Hunt was beginning to have meetings with the Alaska Department of Natural Resources and the Alaska Department of Transportation to address gravel fill in the rivers. In response to Casagranda, Hunt stated an offer was made and tentatively accepted today for the Public Works Director position. Long added the Project Manager position was still on a hiring freeze until council released it. Other Reports, Announcements and Presentations Seward Community Health Center Report by Patrick Linton. (Keil) Presentation by District Ranger Francisco Sanchez for the Chugach National Forest. (McClure) PUBLIC HEARINGS – None UNFINISHED BUSINESS – None NEW BUSINESS Resolution 2016-048, Adopting A Design For An Official Seward City Flag. (Casagranda) 78 City of Seward, Alaska City Council Minutes July 25, 2016 Volume 40, Page Motion (Keil/Casagranda) Approve Resolution 2016-048 Casagranda said a small group of citizens had formed a committee because they were concerned there was no official flag design for Seward. Council supported the idea of having a flag design contest. A design was selected and sent to a graphic designer; the contest winner Katelyn Correa was in the audience. Her symbolism came from Seward surrounded by mountains being the triangle, the white is Alaska snow, and the blue is for the sky and the Alaska flag. Motion Passed Unanimous Resolution 2016-044, Authorizing A Sole Source Contract In The Amount Of $270,000 Plus A 25% Contingency To Harmon Construction For Asbestos Abatement And Flooring Replacement For The City Hall Building, And Appropriating Funds. Motion (Keil/Casagranda) Approve Resolution 2016-044 Long said there had been two claims of trips and falls from the bad carpet in City Hall. In order to replace the carpet, there would be a disturbance of the asbestos laden tiles beneath, so asbestos abatement was part of the project. Originally administration thought this project would be less than $100,000, but asbestos abatement added to the cost. Long stated the project would be done incrementally so that only one portion of the building was done at a time, and business within City Hall would continue as usual. Administration was recommending a sole source contract because this project required flexibility with scheduling and this company had recent experience with this building and its issues. A 25% contingency was added to this remodel project, not knowing what would be discovered or encountered throughout the process. All downstairs hallways and the upstairs MIS office would be done, and possibly a couple more offices as budget allowed. In response to Squires, Long explained which hard surfaces would be replaced. In response to Casagranda, Long stated the flooring would be removed in order to abate the asbestos to prevent future hardships. Long was hoping to start this project in the fall. Motion to Amend (Bardarson/Keil) Amend Resolution 2016-044 by striking the words “Excluding The Restrooms And Council Chambers” in the last Whereas. Motion to Amend Passed Unanimous Keil had done some research on asbestos abatement by square footage, and found this replacement estimate to be very reasonable. Main Motion Passed Unanimous Resolution 2016-045, Providing For The Submission To The Qualified Voters Of The City Of Seward The Question Of Authorizing The Issuance Of Not To Exceed $3,000,000 In General 79 City of Seward, Alaska City Council Minutes July 25, 2016 Volume 40, Page Obligation Bonds Of The City To Finance All Or A Portion Of The Planning, Design And Construction Of Road Improvement Projects, At An Election In And For The City Of Seward On October 4, 2016. Motion (Keil/Casagranda) Approve Resolution 2016-045 Long stated the city had been chasing money to repair the roads for decades, and about a decade ago the city received a substantial amount of money and were now about to put it to use. A Memorandum of Agreement with the state was authorized by the council March 2015, which outlined the attached list of road repair. Tonight’s decision would be whether to go to the voters to finish the road projects on the laydown list. If voters said yes, they would pave Forest Acres, including the road to the Long Term Care Facility and Dieckgraeff Road via a separate sole source contract to begin at the end of the state’s contract. Right of way work had already been completed. In response to Casagranda, Long stated the list was created years ago and the need for Dieckgraeff Road wasn’t originally contemplated at that time. He said the Long Term Care Facility road would be paved in its entirety. In response to Squires, Long gave an anticipated timeline of voter approval in October, state preparation for bid release in February, 2017, and bond issuance by late 2017 with work beginning after that. Long answered Altermatt by saying the bond language going to the voters did not necessarily mean an increase to property or sales taxes, but the general obligation bonds did obligate the city for repayment. Motion Passed Unanimous Resolution 2016-046, Restoring Employee Merit Increases And A One Percent Bonus For Non- Union Regular Employees, And Appropriating Funds. Motion (Keil/Squires) Approve Resolution 2016-046 Long reminded everyone that council had met in a work session in June for the purpose of discussing whether to reinstate employee pay increases, following receipt of the City’s year end financial performance results for 2015. It was suggested any excess would be split with employee merit increases and the needs of the city, and council had made recommendations. He said there was an additional $321,000 from sales tax revenue, and after paying for healthcare, that left $241,000 to split. Squires would not support this resolution because he didn’t know what the state would be doing budget wise. He would like to wait until January, 2017 and then put back the merit increases plus COLA. Motion Passed Yes: McClure, Altermatt, Keil, Bardarson 80 City of Seward, Alaska City Council Minutes July 25, 2016 Volume 40, Page No: Squires, Casagranda Resolution 2016-047, Authorizing The City Manager To Enter Into A Revised Contract With The International Brotherhood Of Electrical Workers (IBEW) Effective July 1, 2016 And Ending June 30, 2019. Motion (Keil/Casagranda) Approve Resolution 2016-047 Electric Utilities Manager John Foutz said this contract negotiation went well and he felt the result was about average for the state. Foutz stated both lineman and operators are supplied meals at the generation facility. The city either bought the meal or the workers were compensated for a meal allowance. After conferring with the Finance Department, Foutz said the bottom line result would be an increase of $1,853 per month for this contract. Bardarson asked what would be required to modify the generation plant operation to have only one person. Foutz said for safety reasons with backup generation, there could be unforeseen circumstances, and so two qualified people were required to be on site to operate it. Motion Passed Unanimous Other New Business Items – None INFORMATIONAL ITEMS AND REPORTS City of Seward and Providence Medical and Care Center Financial Reports through May, 2016. Letter to Kenai Peninsula Borough Planning Commissioners and Assembly RE: Ordinance 2016-25, Amending KPB 2.40.010 to Reduce Planning Commission Membership. Seward Community Health Center Coordinating Committee Meeting Minutes from April 6, 2016. (Keil) COUNCIL COMMENTS Altermatt had been hearing good comments about the Wi-Fi in the campground, but was looking forward to harbor internet upgrades soon. She thanked George Goen for his positive remarks, and especially his garden appreciation at the Mariners Memorial. Altermatt recognized Nici Murawsky, Susan Ernst and Carol Souza for their helpful work at the Mariners Memorial. Casagranda thanked council for the flag design support. She was thankful the McHugh Creek fires didn’t hurt travel to and from Seward. Bardarson reminded council that the welcome pot luck for the Japanese exchange students would be Monday, August 1, 2016 at the library from 5:00-7:00 p.m. She thanked the Obihiro Mayor, the President of the Obihiro committee and their citizens for the annual Mt. Marathon Race 81 City of Seward, Alaska City Council Minutes July 25, 2016 Volume 40, Page trophies and Silver Salmon Derby awards. Bardarson stated that her and Long went to the change of command ceremony for the USCG Cutter Mustang, and thanked them for the lovely gift. Lt. Jamie C. Greendyke was installed as the new commander. Bardarson reminded the public that the Port and Commerce Advisory Board (PACAB) and the Historic Preservation Commission (HP) were both short one member, and that City Council candidate packets were now available for pick up in the clerk’s office through August 15, 2016. Keil thanked Christy Terry for applying for PACAB, and she looked forward to seeing the new flag and a ceremony. Squires would not be present at the next council meeting on August 8, 2016, but encouraged the public to get involved with the bond issue by asking questions to administration. McClure thanked District Ranger Francisco Sanchez for his presentation tonight. She encouraged people to see the progress of the senior housing project, and congratulated Katelyn Correa on her flag design. McClure advised the public of an important Borough Assembly meeting which was scheduled for tomorrow night. Long congratulated both Christy Terry and Katelyn Correa. He also thanked George Goen for his comments but clarified that #1 and #2 plastic recyclables were collected in Seward, with the landfill taking them as well. Hunt mentioned that on July 15, 2017 Seward would host a three day extreme triathlon event called Alaska Man. CITIZEN COMMENTS Becky Dunn said there was a borough proposition to raise the sales tax limit from $500 to $1,000. She opposed this tax increase and feared this would drive people to spend out of town. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS Long said the city had no position on the sales tax increase. The voters would have to adopt the borough’s proposed measure before the city would take a position. Casagranda said that on B&B/hotel tax, there was no cap. ADJOURNMENT The meeting was adjourned at 8:45 p.m. ____________________________________ ____________________________________ Brenda J. Ballou, CMC Jean Bardarson Acting City Clerk Mayor (City Seal) 82 City of Seward, Alaska City Council Minutes August 8, 2016 Volume 40, Page CALL TO ORDER The August 8, 2016 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Jean Bardarson. OPENING CEREMONY Police Chief Tom Clemons led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Marianna Keil Ristine Casagranda Deborah Altermatt Sue McClure comprising a quorum of the Council; and Jim Hunt, City Manager Brenda Ballou, Acting City Clerk Absent – Butts, Squires CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Bardarson admonished the public to deliver their comments in a constructive and positive fashion, and warned that she would gavel anyone who became disorderly. Devin Putney wanted to speak about the AVTEC gym closure. The AVTEC gym helped local people get through the winter and rainy days, and the open gym time had been priceless for his family. He asked council to look at the situation and try to find a way to reinstate access. When speaking with people at AVTEC, he was told the rent increase had not doubled as was the message he had gotten from the city. Luther Freeman was disappointed in the AVTEC gym closure. He said using the gym helped him get through the winter. He thought the people who lived in Seward year round should be a priority. There was no replacement for the AVTEC gym and what they offered. For small children and elders, the gym was a safe place to get exercise. He hoped council would consider getting it open again. Tim McDonald thought Seward was not prepared for growth. The streets were in terrible condition; he still thought cement streets could be a solution. He thought the Lowell Point Sewage Lagoon was just a raw sewage settling place before the raw sewage got dumped into Resurrection Bay. He thought the whole country was changing and people were getting a raw deal. 83 City of Seward, Alaska City Council Minutes August 8, 2016 Volume 40, Page Nicole Lawrence chose Seward as her home because of the community. She said AVTEC was a big part of her life here. Joe Fong reminded everyone that on Saturday, August 13, 2016 from 2:00 - 6:00 p.m. there would be a free community luncheon at Branson Pavilion to celebrate Providence Hospital’s 20 year anniversary in Seward. Amanda Adams said her family were heavy users of AVTEC, and the community needed this gym as a resource. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (Keil/Casagranda) Approval of Agenda and Consent Agenda Motion Passed Unanimous The clerk read the following approved consent agenda items: Resolution 2016-049, Requesting Council Adopt The 2016 Seward Historic Preservation Commission Priorities. Resolution 2016-050, Appointing Carol Kvasnikoff As Temporary Deputy City Clerk. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations & Awards Chamber of Commerce Report. Cindy Clock appreciated being on the agenda tonight to make up for the July 25, 2016 meeting she missed due to a family emergency. Clock wanted to speak about the AVTEC gym closure. She reminded everyone that there were two gyms in Seward that were viable alternatives for exercise. And she said AVTEC had reached out to the Chamber of Commerce to see if there were any concessionaires who may be suitable to run the program. She said this could be an opportunity for a private enterprise to get involved. Clock passed out Silver Salmon Derby booklets, showed an advertisement the chamber placed in the Seattle Seahawks Yearbook that featured Seward, an article and advertisement in the Alaska Sporting Journal, and she passed out copies of the marketing and promotion schedule the chamber had done year to date. The 61st Silver Salmon Derby would start August 13, 2016. There were still a few spots available. There would be 15 tagged fish plus almost $30,000 in additional prizes. 84 City of Seward, Alaska City Council Minutes August 8, 2016 Volume 40, Page The 89th Mount Marathon Race was successful in every way. The chamber’s Board of Directors had formed a task force to explore more ways to grow the event, such as having food vendors up in Lowell Canyon. The budget for the Alaska Tourism Marketing Board had been slashed to $1.5 million, which was only enough to keep Alaska.com website updated. In comparison, Hawaii spent $84 million last year and Arkansas spent $19 million. Borough Assembly Report. Brandii Holmdahl reported the assembly had met once last month and would be meeting again tomorrow evening. Ordinance 2016-22 addressed moving the hospital service area boundary to the halfway point between Soldotna and Homer. There was a significant difference in the mill rates of those two areas. There was a tie vote, and then an assembly member called for reconsideration at the next assembly meeting. The other item addressed was the senior citizen property exemption reduction, which passed and would appear on the municipal ballot in October. There was a new member to the Planning Commission, Virginia Morgan from Cooper Landing, who would represent the eastern side of the peninsula. At the next meeting the assembly would consider reducing the number of borough members on the Kenai Peninsula Economic Development District (KPEDD) board. Holmdahl explained that in a recent land grant from the state, there was about 2,200 acres in the Moose Pass/Crowne Point area that were part of that transfer. There was a request to rezone about 1,300 acres of that land to recreational. The assembly was having a work session tomorrow to discuss the mayor’s proposed changes to the tax code. There were a lot of small changes, and many not so small. Holmdahl asked council to review the proposal and speak up if there were areas of concern that they wished for her to address on behalf of the citizens of Seward. In response to McClure, Holmdahl said the KPEDD reduction would be addressed at the meeting after the next one. Holmdahl did not know when the borough’s administration would be holding community meetings to inform the public on the upcoming ballot issues, but she thought they would happen in advance of the municipal election to help educate voters. City Manager Report. Jim Hunt said there had been no purchase orders between $10,000 and $50,000 approved by the City Manager since the last meeting. Hunt reported that part of Dieckgraeff Road had washed away yesterday in the rain, but had been repaired. Assistant City Manager Ron Long introduced and welcomed Doug Schoessler as the new Public Works Director. Long asked Utility Manager John Foutz to speak about a Transco group that the city had been exploring. Foutz elaborated that he had been working with five railbelt utility companies as well as a Transco company from the lower 48 to design a plan for creating a public utility. The biggest decision that would come to council was whether or not to join. Seward owned 45 miles of line stretching from Seward to Cooper Landing. There were advantages and disadvantages to joining a Transco. Long added that in the past several years there had been legislative pressure for railbelt utilities to consolidate, and he thought creating and potentially joining a Transco would be acceptable to the legislature. 85 City of Seward, Alaska City Council Minutes August 8, 2016 Volume 40, Page Long said the AVTEC gym issue was complicated. He said the costs associated with running the programs were varied. He asked council and the public to be patient as administration was still working on the issue and trying to find one or more solutions to meet the needs of the taxpayers. He said administration was aware that some of the special things AVTEC provided included indoor open gym, winter walking, and sports leagues. In response to McClure, Foutz provided an update on the Snow River transmission line project. Foutz had received some cost estimates on a Phase I solution, which was not a throw away but would be built upon during Phase II. The issue was that the transmission line which provided power to Seward from Anchorage through Chugach Electric was in jeopardy as the rock at Snow River eroded around the transmission line foundation, and if the line was lost it may result in Seward being on back up generation for up to a month. Long added that the city’s approach to this project had to be done appropriately in order to potentially qualify for federal grants or loans that may be available in the future. In response to McClure, Long said this approach would change the scope of the project, but not the timing. Casagranda asked how the city got to the point it was at with AVTEC. Long said the contract ended and had not been successful in its negotiations. Casagranda followed up for clarification on what the exact costs were. Hunt said the old contract was $1,500 per month, and would have doubled to $3,000. Casagranda wondered why this particular contract had not been proposed for council’s consideration. Long said administration was charged with negotiating the contract renewal, but they had not been successful. In response to Casagranda, Long said council could expect to see something brought before them as a proposed solution very soon. Casagranda said she would like to see the community more involved in the process when a decision was made that had such a broad reaching impact on the community. Keil stated she was concerned, and in light of the state’s budget shortfalls, she thought it was important to save money where it could be saved and hoped there wouldn’t be more programs that would be cut. In response to McClure, Hunt and Long said the city was not planning to build a bowling alley or recreational facility. Hunt said that would be an undertaking for private enterprise. Council directed administration to put the road paving maps on the city website for the public. The maps should be marked draft so it would be understood the plans were subject to change. Bardarson wondered when council would see a close out report on the Fish Cleaning Stations. In response to Casagranda, Long said financial reports were available monthly, and that council could expect to see June figures at the end of August. City Attorney Report. Will Earnhart reported that council would be seeing amendments proposed to Title 10 to reduce redundancies with state statutes at the next council meeting. Earnhart was pleased to report the city had won the lawsuit with Orion over the breakwater contract. Earnhart said his firm had spent $10,000 on fees and $50,000 in costs on obtaining this win, and could expect 86 City of Seward, Alaska City Council Minutes August 8, 2016 Volume 40, Page to recover about 10% of that cost. Earnhart gave accolades to Adam Cook from his firm for doing the legwork on the briefing. Other Reports, Announcements and Presentations – None PUBLIC HEARINGS – None UNFINISHED BUSINESS – None NEW BUSINESS – None Other New Business Items – None INFORMATIONAL ITEMS AND REPORTS – None COUNCIL COMMENTS Keil thanked Brenda Ballou, Jean Lewis, and the Seward International Friendship Association (SIFA) for the student exchange program. She congratulated the Kinney family on the birth of their baby boy, thanked Will Earnhart for the win against Orion, and thanked the public for speaking about AVTEC. McClure congratulated the Kinneys. McClure enjoyed the barbeque with the Japanese exchange students. She said there were lots of things going on, including the Silver Salmon Derby and the Providence picnic. She thanked the ALPAR workers for doing a great job picking up litter around town, and she thanked everyone for expressing their concerns about the AVTEC gym. Casagranda thanked the clerk’s office for their work, congratulated the Kinneys, and welcomed Doug Schoessler. She expressed her appreciation to administration for the work that they did, and encouraged the public to consider picking up city council candidate packets. She would be out of state for August 22, 2016 council meeting. Altermatt thanked people for coming out tonight. She thought the quality of life in Seward was really high, with all the music, drama, library, and winter activities to name a few. Rotary was holding the duck race on Saturday. She would also be absent on August 22, 2016 to travel to South Africa to represent her family at a historic African Congress event. Bardarson showed off Silver Salmon Derby trophy furnished by the City of Kushiro. She thanked public for coming out. Long clarified there was no raw sewage being dumped into Resurrection Bay. Road engineers and consultants recommended using asphalt for the roads. He gave his congratulations to Kinneys. CITIZEN COMMENTS 87 City of Seward, Alaska City Council Minutes August 8, 2016 Volume 40, Page Becky Dunn said a couple of years ago she had donated a tank heater for the portapotty at the animal shelter, as well as non-freezing water bowls for the dogs, but they couldn’t be used because there were no outside outlets at the shelter. Hunt said he would see that outlets were installed. Jim Hunt wanted to say Sam Daniel had been recognized by the state legislature for his road clean-up work. Luther Freeman said he realized that negotiations had failed with AVTEC, but was disappointed the public was not informed or included. He didn’t think it was out of line to expect that the facility would be kept running while an alternative was sought. He was upset because there was no substitute for the AVTEC gym facilities, including the rock wall, racquetball courts, etc. The AVTEC gym did not compete with the local gyms. He didn’t understand why access to AVTEC had ended with no notice and no stop gap measure put in place. Michael Mahmood said in regards to the bowling alley rumor, there was a press release issued by Seward Parks & Recreation Department (SPRD) that said funds were temporarily earmarked for the bowling alley project. Devin Putney said he didn’t hear tonight that there was a formal plan for addressing the AVTEC gym, but he did hear that council was willing and able to look into this further. He wished that they would keep AVTEC open and available until there was a suitable replacement. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS In response to Keil, Hunt said there would be a solution found to the AVTEC gym issue within a matter of weeks. Long added that there was no guarantee. Long wanted to respond to the press release and said it was an unfortunate and inaccurate press release. He said it should not have gone out and there were no funds being earmarked. Hunt added that a bowling alley project would be a private venture. ADJOURNMENT The meeting was adjourned at 8:28 p.m. ____________________________________ ____________________________________ Brenda Ballou, CMC Jean Bardarson Acting City Clerk Mayor (City Seal) 88 Monthly Budget-to-Actual Revenue Report--By Fund Run: 8/16/2016 at 2:24 PM Ci� of Seward Page: 1 eneral Fund For 6/30/2016 Variance Variance Actual Y-T-D Y-T-D Over/(Under) Annual Over/(Under) %of Annual Month Actual Budget Budget Budget Budget Budget Revenues 4000 Tax Revenue -Sales 50,156 1,076,303 2,287,500 (1,211.197) 4,575,000 (3,498,697) 23.53 4010 Tax Revenue -Real Property 2,672 9,407 360,000 (350,593) 720,000 (710,593) 1.31 4011 Tax Revenue -Personal Property 542 17,178 139,998 (122,820) 279,996 (262,818) 6.14 4012 Tax Revenue -Motor vehicle 2,243 10,463 12,498 (2,035) 24,996 (14,533) 41.86 4020 Hotel/Motel Room Tax 0 39,870 207,498 (167,628) 414,996 (375,126) 9.61 4030 Payments in Lieu of Tax 0 4,576 42,000 (37,424) 84,000 (79,424) 5.45 4031 Contra Payments in Lieu ofTax (8,400) (8,400) 0 (8,400) 0 (8,400) 0.00 4040 Penalties and Interest on Taxes 58 1,009 498 511 996 13 101.31 4100 Building Permits 8,658 39,006 30,000 9,006 60,000 (20,994) 65.01 4101 Permits-Taxi 153 475 498 (23)996 (521)47.734102 DMV -Drivers License 2,183 11,328 11,502 (175)23,004 {11,677) 49.244103 DMV -Motor Vehicles 8,927 34,456 33,498 958 66,996 (32,540) 51.434104 Animal Control Licenses 15 95 150 (55) 300 (205)31.674105 Business License 1,040 9,430 10,002 (572)20,004 (10,574) 47.144106 License and Permits -Misc 14 907 1,128 (221)2,256 {1,349) 40.20 4200 Revenue Sharing 0 0 71,790 {71,790) 143,580 (143,580) 0.004202 Jall Contract 0 184,476 167,502 16,974 335,004 (150,528) 55.07 4203 Dispatch Contract w/State of AK 9,000 18,000 18,000 0 36,000 (18,000) 50.004204 KPB 911 Dispatch 0 26,160 26,280 {120) 52,560 (26,400) 49.774205 Alaska Liquor Tax 0 12,850 10,998 1,852 21,996 (9,146) 58.424206 Alaska Raw Fish Tax 0 0 240,000 (240,000) 480,000 (480,000) 0.004207 Fisheries Resource Landing Tax 0 2,707 8,502 (5,795) 17,004 (14,297) 15.924251 Grant Revenue -Federal Grants 0 0 7,988 (7,988) 7,988 (7,988) 0.004252 Grant Revenue -State Grants 0 0 15,711 (15,711) 15,711 {15,711) 0.00 4300 Admin. Exp. -Jail 8,091 48,549 48,546 3 97,092 {48,543) 50.004301 Admin Exp.-Harbor 28,384 170,303 170,304 (1)340,608 (170,305) 50.004302 Admin. Exp. -SMIC 7,576 45,45 7 45,456 1 90,912 (45,455) 50.004303 Admin. Exp.-Parking Fund 849 5,094 5,094 0 10,188 (5,094) 50.004304 Admin. Exp. -Electric 74,045 444,267 444,270 (3)888,540 (444,273) 50.004305 Admin. Exp. -Water 20,427 122,561 122,562 (1)245,124 (122,563) 50.00430.6 Admin. Exp. -Sewer 12,475 74,847 74,850 (3)149,700 (74,853) 50.004307 Copying Fees 9 138 2,502 (2,364) 5,004 (4,866) 2.764308 Sales Tax Credit 0 2,000 1,998 2 3,996 (1,996) 50.054309 Zoning Fees 47 748 0 748 0 748 0.004320 Misc Dog Fees 140 525 1,050 (525)2,100 (1,575) 25.004321 Mlscellaneous Jail Revenue 0 0 750 (750)1,500 (1,500) 0.004322 Miscellaneous Dispatching 833 5,000 4,998 2 9,996 (4,996) 50.024323 Miscellaneous Police Fees 171 1,340 498 842 996 344 134.544331 Shop Work Orders 0 0 1,248 (1,248) 2,496 (2,496) 0.004340 P&R: Public Use Fees 350 586 1,998 (1,412) 3,996 (3,410) 14.664341 P&R: Punchard Fees 665 3,535 7,500 (3,965) 15,000 (11,46 5) 23.56 4342 P&R: Class Registrations 7,137 27,914 27,498 416 54,996 {27,082) 50.764343 P&R: Facility Rental 322 1,539 1,104 435 2,208 (669) 69.71 4344 P&R: Tournaments 0 1,262 852 410 1,704 (442)74.044345 P&R: Special Events 1,941 15,574 10,002 5,572 20,004 (4,430) 77.854347 P&R: Shower Fees 3,664 5,312 6,498 (1,186) 12,996 (7,684) 40.874348 P&R: Rock Wall Fees 0 52 348 (296)696 (644)7.524349 P&R: Pavilion Fees 724 2,597 1,998 599 3,996 (1,399) 64.98 89 90 91 92 93 94 95 96 97 98 99 10 0 10 1 10 2 10 3 10 4 10 5 10 6 10 7 10 8 10 9 11 0 11 1 11 2 11 3 11 4 11 5 11 6 11 7 11 8 11 9 12 0 12 1 12 2 12 3 12 4 12 5 12 6 12 7 12 8 12 9 13 0 13 1 13 2 13 3 13 4 13 5 13 6 13 7 13 8 13 9 Pr o v i d e n c e H e a l t h & S e r v i c e s 11 0 - P R O V I D E N C E S E W A R D M E D C E N T E R - M G D Ba l a n c e S h e e t ( i n T h o u s a n d s ) Re p o r t e d a s o f J u n e 2 0 1 6                ! 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Year LI A B I L I T I E S & N E T A S S E T S Cu r r e n t L i a b i l i t i e s : Ac c o u n t s P a y a b l e 147250 Ac c r u e d C o m p e n s a t i o n 1, 1 4 2 763 Pa y a b l e t o C o n t r a c t u a l A g e n c i e s 33027 De f e r r e d R e v e n u e / U n e a r n e d P r e m i u m s 1, 5 8 5 1,585 Ot h e r C u r r e n t L i a b i l i t i e s 5, 3 9 6 4,868 To t a l C u r r e n t L i a b i l i t i e s 8, 6 0 0 7 , 4 9 3 Lo n g - T e r m D e b t : To t a l O t h e r L T L i a b i l i t i e s 510684 To t a l L i a b i l i t i e s 9, 1 1 0 8 , 1 7 7 Ne t A s s e t s : Un r e s t r i c t e d (3 , 8 8 1 ) (2,644) Te m p o r a r i l y R e s t r i c t e d 1912 To t a l N e t A s s e t s (3 , 8 6 3 ) ( 2 , 6 3 2 ) To t a l L i a b i l i t i e s a n d N e t A s s e t s 5, 2 4 8 5 , 5 4 5 14 0 Pr o v i d e n c e H e a l t h & S e r v i c e s 11 0 - P R O V I D E N C E S E W A R D M E D C E N T E R - M G D St a t e m e n t o f O p e r a t i o n s ( i n T h o u s a n d s ) Re p o r t e d a s o f J u n e 2 0 1 6                Mo n t h - T o - D a t e Ye a r - T o - D a t e Ac t u a l B u d g e t % V a r i a n c e Ac t u a l B u d g e t % V a r i a n c e P r . Y e a r % V a r i a n c e Gr o s s S e r v i c e R e v e n u e s : 1, 2 4 7 1, 4 7 0 ( 1 5 . 2 % ) T o t a l I n p a t i e n t G r o s s S e r v i c e R e v 7, 3 0 8 8, 5 8 9 ( 1 4 . 9 % ) 8,092(9.7%) 1, 1 7 2 1, 0 4 8 11 . 9 % To t a l O u t p a t i e n t G r o s s S e r v i c e R e v 5, 7 2 3 4, 8 2 0 18 . 7 % 4,65323.0% 2, 4 1 9 2, 5 1 8 ( 3 . 9 % ) To t a l G r o s s S e r v i c e R e v e n u e s 13 , 0 3 1 13 , 4 0 9 ( 2 . 8 % ) 12,7462.2% 1, 1 9 2 70 1 7 0 . 0 % T o t a l D e d u c t i o n s & B a d D e b t 4, 5 2 0 4, 2 0 7 7 . 5 % 3,78119.6% 1, 2 2 6 1, 8 1 7 ( 3 2 . 5 % ) N e t S e r v i c e R e v e n u e 8, 5 1 0 9, 2 0 3 ( 7 . 5 % ) 8,965(5.1%) 18 14 2 5 . 5 % O t h e r O p e r a t i n g R e v 92 84 9 . 9 % 118(21.5%) 1, 2 4 4 1, 8 3 1 ( 3 2 . 0 % ) To t a l N e t O p e r a t i n g R e v e n u e s 8, 6 0 2 9, 2 8 7 ( 7 . 4 % ) 9,083(5.3%) Ex p e n s e s f r o m O p e r a t i o n s : Ot h e r E x p e n s e s f r o m O p e r a t i o n s : 77 7 86 6 ( 1 0 . 3 % ) S a l a r i e s a n d W a g e s 4, 8 6 1 4, 8 7 8 ( 0 . 3 % ) 4,6035.6% 22 5 24 4 ( 7 . 8 % ) E m p l o y e e B e n e f i t s 1, 3 4 6 1, 4 4 7 ( 7 . 0 % ) 1,389(3.1%) 2 27 ( 9 2 . 7 % ) P r o f e s s i o n a l F e e s E x p e n s e 8 16 3 ( 9 5 . 3 % ) 49(84.4%) 10 5 96 9 . 0 % S u p p l i e s 48 4 53 2 ( 9 . 0 % ) 544(11.0%) 19 2 17 9 7 . 7 % P u r c h a s e d S e r v i c e s E x p e n s e 1, 1 1 5 1, 0 7 2 4 . 0 % 1,216(8.3%) 2 2 - D e p r e c i a t i o n E x p e n s e 12 12 - 17(27.8%) 1 - - T a x e s a n d L i c e n s e s 1 - - -751.1% 90 56 6 0 . 1 % O t h e r E x p e n s e s 48 0 33 8 4 2 . 1 % 37528.0% 1, 3 9 4 1, 4 7 0 ( 5 . 2 % ) O t h e r E x p e n s e s f r o m O p e r a t i o n s 8, 3 0 8 8, 4 4 2 ( 1 . 6 % ) 8,1941.4% 1, 3 9 4 1, 4 7 0 ( 5 . 2 % ) T o t a l O p e r a t i n g E x p e n s e s 8, 3 0 8 8, 4 4 2 ( 1 . 6 % ) 8,1941.4% (1 5 0 ) 36 1 ( 1 4 1 . 5 % ) Ex c e s s o f R e v O v e r E x p f r o m O P S 29 5 84 5 ( 6 5 . 1 % ) 889(66.9%) (1 5 0 ) 36 1 ( 1 4 1 . 5 % ) Ex c e s s o f R e v O v e r E x p 29 5 84 5 ( 6 5 . 1 % ) 889(66.9%) (1 , 5 3 2 ) - - Ot h e r A c t i v i t y - U n r e s t r i c t e d ( 1 , 5 3 2 ) - - (1,386)10.5% (1 , 6 8 2 ) 36 1 ( 1 4 1 . 5 % ) In c r e a s e ( D e c r e a s e ) i n U R N e t A s s e t s (1 , 2 3 7 ) 84 5 ( 6 5 . 1 % ) (497)149.0% 14 1 Pr o v i d e n c e H e a l t h & S e r v i c e s 11 0 - P R O V I D E N C E S E W A R D M E D C E N T E R - M G D St a t e m e n t o f C h a n g e s i n N e t A s s e t s ( i n T h o u s a n d s ) Re p o r t e d a s o f J u n e 2 0 1 6      !"#  $ %&! '( ) UN R E S T R I C T E D F U N D S Cu r r e n t Y e a r t o D a t e Pr i o r Y e a r t o D a t e Be g i n n i n g o f Y e a r (2 , 6 4 4 ) ( 1 , 8 3 9 ) Ex c e s s o f R e v e n u e s O v e r E x p e n s e s 29 5 889 Re s t r i c t e d C o n t r i b u t i o n s & G r a n t s - - Ne t A s s e t s R e l e a s e d f r o m R e s t . - - In t e r d i v i s i o n T r a n s f e r s (1 , 5 3 2 ) (1,386) Ne t A s s e t s ( L i a b i l i t i e s ) A s s u m e d - - Un r e a l i z e d G a i n s ( L o s s e s ) o n I n v e s t . - - Ex t r a o r d i n a r y I t e m s & O t h e r - - To t a l C h a n g e i n N e t A s s e t s (1 , 2 3 7 ) (497) En d i n g B a l a n c e (3 , 8 8 1 ) ( 2 , 3 3 6 ) TE M P O R A R I L Y R E S T R I C T E D F U N D S Cu r r e n t Y e a r t o D a t e Pr i o r Y e a r t o D a t e Be g i n n i n g o f Y e a r 12 9 In v e s t m e n t a n d O t h e r I n c o m e - - Re s t r i c t e d C o n t r i b u t i o n s & G r a n t s 7 0 Ne t A s s e t s R e l e a s e d f r o m R e s t . - - In t e r d i v i s i o n T r a n s f e r s - - Ne t A s s e t s ( L i a b i l i t i e s ) A s s u m e d - - Un r e a l i z e d G a i n s ( L o s s e s ) o n I n v e s t . - - Ex t r a o r d i n a r y I t e m s & O t h e r - - To t a l C h a n g e i n N e t A s s e t s 7 0 En d i n g B a l a n c e 19 1 0 14 2 Pr o v i d e n c e H e a l t h & S e r v i c e s 11 0 - P R O V I D E N C E S E W A R D M E D C E N T E R - M G D St a t e m e n t o f C h a n g e s i n N e t A s s e t s ( i n T h o u s a n d s ) Re p o r t e d a s o f J u n e 2 0 1 6      !"#  $ %& '( ) PE R M A N E N T L Y R E S T R I C T E D F U N D S Cu r r e n t Y e a r t o D a t e Pr i o r Y e a r t o D a t e Be g i n n i n g o f Y e a r - - In v e s t m e n t a n d O t h e r I n c o m e - - Re s t r i c t e d C o n t r i b u t i o n s & G r a n t s - - Ne t A s s e t s R e l e a s e d F r o m R e s t . - - In t e r d i v i s i o n T r a n s f e r s - - Ne t A s s e t s ( L i a b i l i t i e s ) A s s u m e d - - Un r e a l i z e d G a i n s ( L o s s e s ) o n I n v e s t . - - Ex t r a o r d i n a r y I t e m s & O t h e r - - To t a l C h a n g e i n N e t A s s e t s - - En d i n g B a l a n c e -- TO T A L A L L F U N D S Cu r r e n t Y e a r t o D a t e Pr i o r Y e a r t o D a t e Be g i n n i n g o f Y e a r (2 , 6 3 2 ) (1,829) Ex c e s s o f R e v e n u e s O v e r E x p e n s e s 29 5 889 In v e s t m e n t a n d O t h e r I n c o m e - - Re s t r i c t e d C o n t r i b u t i o n s & G r a n t s 7 0 Ne t A s s e t s R e l e a s e d F r o m R e s t . - - In t e r d i v i s i o n T r a n s f e r s (1 , 5 3 2 ) (1,386) Ne t A s s e t s ( L i a b i l i t i e s ) A s s u m e d - - Un r e a l i z e d G a i n s ( L o s s e s ) o n I n v . - - Ex t r a o r d i n a r y I t e m s & O t h e r - - To t a l C h a n g e i n N e t A s s e t s (1 , 2 3 1 ) (496) En d i n g B a l a n c e (3 , 8 6 3 ) ( 2 , 3 2 6 ) 14 3 Pr o v i d e n c e H e a l t h & S e r v i c e s 11 0 - P R O V I D E N C E S E W A R D M E D C E N T E R - M G D St a t e m e n t o f C a s h F l o w s ( i n T h o u s a n d s ) Re p o r t e d a s o f J u n e 2 0 1 6       !"# $%&' Ju n e Ju n e 20 1 6 20 1 5 Op e r a t i n g A c t i v i t i e s : Ch a n g e i n N e t A s s e t s (1 , 2 3 1 ) (4 9 6 ) Ad j u s t m e n t s t o R e c o n c i l e N e t C a s h P r o v i d e d b y O p e r a t i n g A c t i v i t i e s De p r e c i a t i o n 12 17 Pr o v i s i o n f o r B a d D e b t s 10 8 11 8 Ne t R e a l / U n r e a l G a i n s L o s s e s o n I n v e s t 0 0 Ne t A s s e t s C o n t / A s s u m e d a n d O t h e r 1, 5 3 2 1, 3 8 6 Ch a n g e s i n C e r t a i n C u r r e n t A s s e t s / L i a b 53 53 1 In c r e a s e D e c r e a s e i n O t h e r L i a b i l i t i e s (1 7 4 ) 24 1 Ne t C a s h P r o v i d e d b y U s e d i n O p A c t 30 1 1, 7 9 6 In v e s t i n g A c t i v i t i e s : Pr o c e e d s o n t h e S a l e o f I n v e s t m e n t s 77 0 (2 1 8 ) FM I n c r e a s e D e c r e a s e i n O t h e r L o n g - T e r m As s e t s 1 4 5 ( 2 4 2 ) Ne t C a s h P r o v i d e d b y U s e d i n I n v A c t 91 5 (4 6 0 ) JuneJune 20162015 Fi n a n c i n g A c t i v i t i e s : In t e r d i v i s i o n T r a n s f e r s a n d O t h e r (1,532)(1,109) Ne t C a s h P r o v i d e d b y U s e d i n F i n A c t (1,532)(1,109) In c r e a s e ( D e c r e a s e ) i n C a s h & C a s h E q u i v . (316)228 Ca s h a n d C a s h E q u i v - B e g i n n i n g o f P e r i o d 1 , 7 3 2 409 Ca s h a n d C a s h E q u i v - E n d o f P e r i o d 1,416637 Su p p l e m e n t a l D i s c l o s u r e : 14 4 MEMO Date: August 22, 2016 To: Seward City Council From: Brenda Ballou, Acting City Clerk RE: Appreciation For Local Support Of Student Exchange Program This summer marked the 44th anniversary of the Student Exchange Program between Seward and its City Sister of Obihiro, Japan. This year the City of Obihiro entrusted us with five bright and happy high school students representing three different high schools in Obihiro, and Seward had two bright high school students to send. The success of this program is due in large part to the steadfast support of our local community members – from the families who open their homes for the visiting students, to the many local businesses who provide discounted rates for activities. I would like to publicly acknowledge and thank everyone for their support! HOMESTAY FAMILIES: • MaryBeth & Andrew Koster • Stephanie & Brian Mullaly • Emy & Daniel Johnson • Susan & Jim Pfeiffenberger • Phyllis Shoemaker & Fred Moore • Shelly & Trevan Walker • Erin & Jason Flowers LOCAL BUSINESSES: • Hertz Rental Car • Sweet Darlings • Seward Fisheries/Icicle • Alutiiq Pride Shellfish Hatchery • Alaska SeaLife Center • Stoney Creek Canopy Adventures • Kenai Fjords Tours • Kayak Adventures Worldwide • Seavey’s Ididaride • Adventure 60 Gold Panning • Seward Library Museum SEWARD INTERNATIONAL FRIENDSHIP ASSOCIATION: • Peggy Hamner • Phyllis Shoemaker 145 1 8/12/2016 9:05 AMNanci Richey SuMoTuWeThFrSa 12345678910111213141516171819202122232425262728293031 August 2016 SuMoTuWeThFrSa 123456789101112131415161718192021222324252627282930 September 2016August 2016 Ju l 3 1 - A u g 6 Jul 31 Aug 1 2 3 4 5 6 6:00pm 9:30pm P&Z Work Session (City Annex Building) Au g 7 - 1 3 7 8 9 10 11 12 13 7:00pm 10:30p m CC Mtg Au g 1 4 - 2 0 14 15 16 17 18 19 20 6:00pm 9:30pm P&Z WS (City Annex Building) 6:30pm 10:30p m HP Mtg & WS (HP Plan) 10:00am 1:00p m HP WS (HP Plan) Au g 2 1 - 2 7 21 22 23 24 25 26 27 6:00pm 7:00pm CC Special Mtg 7:00pm 10:30p m CC Mtg Au g 2 8 - S e p 3 28 29 30 31 Sep 1 2 3 Sun Mon Tue Wed Thu Fri Sat 146 1 8/12/2016 9:07 AMNanci Richey SuMoTuWeThFrSa 123456789101112131415161718192021222324252627282930 September 2016 SuMoTuWeThFrSa 12345678910111213141516171819202122232425262728293031 October 2016September 2016 Au g 2 8 - S e p 3 Aug 28 29 30 31 Sep 1 2 3 Se p 4 - 1 0 4 5 6 7 8 9 10 Labor Day (Offi 7:00pm 10:30p m P&Z Mtg (City Annex Building) 12:00pm 2:00p m PACAB Mtg Se p 1 1 - 1 7 11 12 13 14 15 16 17 7:00pm 10:30p m CC Mtg Se p 1 8 - 2 4 18 19 20 21 22 23 24 6:00pm 9:30pm P&Z WS (City Annex Building) 12:00pm 2:00p m PACAB Work Session Se p 2 5 - O c t 1 25 26 27 28 29 30 Oct 1 7:00pm 10:30p m CC Mtg Sun Mon Tue Wed Thu Fri Sat 147 1 8/12/2016 9:08 AMNanci Richey SuMoTuWeThFrSa 12345678910111213141516171819202122232425262728293031 October 2016 SuMoTuWeThFrSa 123456789101112131415161718192021222324252627282930 November 2016October 2016 Se p 2 5 - O c t 1 Sep 25 26 27 28 29 30 Oct 1 Oc t 2 - 8 2 3 4 5 6 7 8 7:00pm 10:30p m P&Z Mtg (City Annex Building) 12:00pm 2:00p m PACAB Mtg Oc t 9 - 1 5 9 10 11 12 13 14 15 7:00pm 10:30p m CC Mtg Oc t 1 6 - 2 2 16 17 18 19 20 21 22 Alaska Day (Off 12:00pm 2:00p m PACAB Work Session 6:30pm 10:30p m HP Mtg & WS Oc t 2 3 - 2 9 23 24 25 26 27 28 29 7:00pm 10:30p m CC Mtg Oc t 3 0 - N o v 5 30 31 Nov 1 2 3 4 5 Sun Mon Tue Wed Thu Fri Sat 148 1 8/17/2016 11:15 AMNanci Richey SuMoTuWeThFrSa 123456789101112131415161718192021222324252627282930 November 2016 SuMoTuWeThFrSa 12345678910111213141516171819202122232425262728293031 December 2016November 2016 Oc t 3 0 - N o v 5 Oct 30 31 Nov 1 2 3 4 5 7:00pm 10:30p m P&Z Mtg (City Annex Building) 12:00pm 2:00p m PACAB Mtg (Library Upstairs) No v 6 - 1 2 6 7 8 9 10 11 12 Veteran's Day (O No v 1 3 - 1 9 13 14 15 16 17 18 19 7:00pm 10:30p m CC Mtg 6:00pm 9:30pm P&Z WS (City Annex Building) 12:00pm 2:00p m PACAB Work Session 6:30pm 10:30p m HP Mtg & WS No v 2 0 - 2 6 20 21 22 23 24 25 26 Thanksgiving H Holiday (Offices No v 2 7 - D e c 3 27 28 29 30 Dec 1 2 3 7:00pm 10:30p m CC Mtg Sun Mon Tue Wed Thu Fri Sat 149 1 8/17/2016 11:15 AMNanci Richey SuMoTuWeThFrSa 12345678910111213141516171819202122232425262728293031 December 2016 SuMoTuWeThFrSa 12345678910111213141516171819202122232425262728293031 January 2017December 2016 No v 2 7 - D e c 3 Nov 27 28 29 30 Dec 1 2 3 De c 4 - 1 0 4 5 6 7 8 9 10 6:00pm 9:30pm P&Z WS (City Annex Building) 12:00pm 2:00p m PACAB Mtg De c 1 1 - 1 7 11 12 13 14 15 16 17 7:00pm 10:30p m CC Mtg De c 1 8 - 2 4 18 19 20 21 22 23 24 12:00pm 2:00p m PACAB Work Session 12:00pm 5:00p m Christmas Holiday (Offices Close at Noon) 12:00pm 5:00p m Christmas Eve (Offices Close at Noon) De c 2 5 - 3 1 25 26 27 28 29 30 31 Merry Christma Merry Christma 7:00pm 10:30p m CC Mtg Sun Mon Tue Wed Thu Fri Sat 150 MEETING NOTES: 151