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HomeMy WebLinkAbout08262019 City Council Work Session Packet Seward City Council Work Session Packet r August 26, 2019 City Council Chamhers Beginning at 5:30 p.m. CITY COUNCIL JOINT WORK SESSION with Chamber Of Commerce & Port & Commerce Advisory Board (PACAB) August 26, 2019 TABLE OF CONTENTS ITEM PAGE Work Session Notice 2 City Council Resolution 2002-074 3 City Council Resolution 2013-058 15 Chamber of Commerce 2019 Marketing Budget 19 Chamber of Commerce Report dated July 22, 2019 20 PACAB Resolution 2019-003 22 1 • PUBLIC NOTICE CITY COUNCIL JOINT WORK SESSION WITH THE PORT & COMMERCE ADVISORY BOARD (PACAB) AND THE CHAMBER OF COMMERCE NOTICE IS HEREBY GIVEN that the Seward City Council will conduct a joint work session on the following item of business: CITY COUNCIL JOINT WORK SESSION Monday, August 26, 2019 at 5:30 p.m. City Council Chambers TOPIC: Review Chamber funding and priorities, clarifying the city's vision for the future, and deciding what role the Chamber would play in that. The work session will commence in the Seward City Council Chambers located in City Hall at 410 Adams Street, Seward. All interested persons are invited to attend the meetings. POSTED: Wednesday,August 14, 2019 City Hall bulletin board U.S. Post Office Harbormaster's Building Seward Community Library Museum 2 Sponsored by: Branson and Shafer CITY OF SEWARD,ALASKA RESOLUTION 2002-074 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA$AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE TO THE SEWARD CHAMBER OF COMMERCE FOR LOT 11,BLOCK 6, SEWARD SMALL BOAT HARBOR SUBDIVISION,SEWARD,ALASKA WHEREAS, the City of Seward has leased Lot 11, Block 6, Seward Small Boat Harbor Subdivision, Seward Recording, District, Third Judicial District, State of Alaska to the Seward Chamber of Commerce since 1990; and WHEREAS,Seward City Code Section 7.05.120 authorizes the City Council to dispose of real property by negotiation,public auction or sealed bid;and WHEREAS, the Seward Chamber of Commerce will construct improvements on the property that meets current building and fire code requirements; and WHEREAS,the Seward Chamber of Commerce has demonstrated its commitment to the residents,visitors and businesses of Seward by developing the property and continuing to promote economic development, tourism and community events; and WHEREAS,the City finds that it is in the public interest to allow lease of the land by the Seward Chamber of Commerce for a period of twenty years for so long as the Chamber of Commerce uses the property to further its non-profit corporate purposes, including to promote economic development,tourism and community events in the Seward community. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,that: Section 1. The City Council finds that the public interest will be served by entering into a long term lease with the Chamber of Commerce for so long as the Seward Chamber of Commerce serves visitors and businesses of Seward and promotes economic development, tourism and community events. Section 2. The City Council finds that the public interest will not be served by an appraisal because the boardwalk sites leased by the City were appraised in 2000. Section 3. The attached lease agreement incorporated herein by reference as Exhibit A, is hereby approved and the City Manager is hereby authorized to execute the lease Agreement in substantial form as attached hereto and to make such corrections and execute related documents as may be necessary to fulfill the intent of this resolution on behalf of the City of Seward. Section 4. This resolution shall take effect 30 days after passage and posting, 3 CITY OF SEWARD,ALASKA RESOLUTION 2002-074 PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this l2th day of August,2002, THE CITY OF SEWARD,ALASKA Edgar Blatchford, Mayor AYES: Blatchford, Branson, Clark, Orr, Shafer, Valdatta NOES: None ABSENT: Calhoon ABSTAIN: None ATTEST: Je Lewis Cilcllerk (City Seal) & Cj low SE low W ftp IL OF 4 After Recording, Return to: Community Development City of Seward P.O.Box 167 Seward,Alaska 99664 MEMORANDUM OF LEASE THE PARTIES HERETO have entered into a lease of the property described herein according to the terms as follows: LESSOR: City of Seward P. 0, Box 167 Seward, Alaska 99664 LESSEE: Seward Chamber of Commerce and Convention and Visitors Bureau P. O. Box 749 Seward, Alaska 919664 EFFECTIVE DATE: October 1, 2002 TERM: Twenty(20)years,expiring September 30,2022. PROPERTY: Lot 11, Block 6, Seward Small Boat Harbor Subdivision, as shown on Plat No. 2000-19 in the Seward Recording District, Third Judicial District, State of Alaska. DATED at Seward, Alaska this , of 7 day . 2002. CITY OF SEWARD THE SEWARD CHAMBER OF COMMERCE AND CONVENTION AND VISITOR'S BUREAU By: k-�/ By. W. Scott Janl(e�, City Manager I ts_, ATTESTED BY,, Jearkewis, S � rk City�f Sew EAL 0 4W 40 -t , - Memorandum©f Lease IkOOCSU3374106IMemamdumo(Lta$g.%,pd C Page I of 2 r OF 0 ----------- Acknowledgments STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT This is to certify that on the day of Qarjkf,V' 2002, before me, the undersigned Notary Public in and far the State of Alaska, duly commissioned and sworn as such, personally appeared W. Scott Janke to me and to me known to be the individual named in and who executed the foregoing instrument on behalf of the City of Seward, and acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein set forth. WITNESS my hand and official seal the day and_year first ritte 1--ve. MTA�(kRY �UBLIC in and d for Alapka MY CO)TM*slon Expires: /2,/7-1 STATE OF ALASKA,,,,,E' OF itiffillit"" ) ss. THIRD JUDICIAL DISTRICT This is to certify that on the�day of Oc 4v-b PO. 2002, before me, the undersigned Notary Public in and for the State of Alaska, duly commissioned and swam as such, personally appeared le—resa Ra�e to me and to me known to be the individual named in and who executed the foregoing instrument on behalf of The Seward Chamber of Commerce and Convention and Visitor's Bureau, and acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein set forth. WITNESS my hand and official seal the day and year first written above. I A NOTARY PUBLIC in and for Alaska My Commission Expires: m&� JZO zga Memorandum of Lease 1:0=43374toff"wromndum of Lease.wpd Page 2 of 2 6 A 200N)5-001842-0 L RETURN TO' A Recordtn'g Dist:314-Seward CITY OF SEWARD, HARBOR DEPARTMENT s 12/12/2006 9:22 AM Pages- 1 of 3 Po Box 167 K SEWARD, AK 99664 A LEASE AMENDMENT NO.2 LEASE NO 02-02 THE CITY OF SEWARD,ALASKA,a home rule municipal corporation,organized and existing under the laws of the State of Alaska,hereinafter referred to as"CITY,"whose address is PO Box 167, Seward, Alaska 99664 and THE SEWARD CRAMMER OF 1POMMERCE,CONFERENCE AND VISITORS BUREAU, INCORPORATED, whose address is P.O. Box 749, Seward, Alaska 99664, hereinafter referred to as"LESSEE"wish to amend that certain Lease effective October 1,2002,made between CITY and LESSEE,covering the real property described as Lot 11,Block 6,Seward Small Boat Harbor Subdivision,Seward Recording District,Third Judicial District,State of Alaska,as fbilows-.Previously Recorded as Book 116 page 626- ITEM 1. The name of Lessee is the Seward Chamber of Commerce,Conference and Visitors Bureau,Incorporated. ITEM 2. Section 2,1 is hereby amended to change the Lease Term date from September 30,2022 to September 30,2021 as follows: Lease Term. The term ofthis LEASE(the"Lease Term")shall be in accordance with CITY"S Resolution Nos.2002-074 and 2006-Lo .1. The Lease Term shall commence October 1,2002(the"Effective Date'l and shall run for approximately 19 years from the Effective Date,ending at midnight on September 30,2021. ITEM 3. Section 2.3 is hereby deleted and replaced with the following amended language to allow possible extension of the Lease Term: Option to Extend LESSEE shall have the right to extend the Lease Term for one additional 5-year period provided that: a) LESSEE exercises its option to extend at least 180 days prior to the expiration ofthe Lease Term;and b) LESSEE Is not in default under any term or provision of this LEASE;and c) LESSEE shall exercise its option to extend by sending written notice thereof in accordance with Article 33 of this LEASE. In all other respects,the Lease is to remain unchanged and in full force between the undersigned parties. FN WITNESS WHEREOF,the parties hereto have executed this document and it is effective upon the effectiveness of Resolution 2006- . LESSOR: LESSEE: CITY OF SEWARD SEWARD CHAMBER OF COMMERCE,CONFERENCE AND VISITORS BUREAU,INCORPORATED LEASE AMENDMENT NO.2 November 2006 -Page I of 3- 7 LEASE AMENDMENT NO.1 THE CITY OF SEWARD,ALASKA,a home rule municipal corporation,organized and existing under the laws of the State of Alaska,hereinafter referred to as"CITY,"whose address Is PO Box 167, Seward, Alaska 99664 and SEWARD CHAMBER OF COMMERCE AND CONVENTION AND VISITOR'S BUREAU,whose address Is P.O.Box 749, Seward, Alaska 99664, hereinafter referred to as "LESSEE" wish to amend that certain Lease dated October 1,2002 covering Lot 11,Block 6,Seward Small Boat Harbor Subdivision, Seward Recording District, Third Judicial District, State of Alaska made between CITY and LESSEE,as follows: Section 1: ARTICLE 4,Section 4.2,subsection(d) Is hereby deleted and replaced with the following: LESSEE shall make such changes as are necessary or desirable,at LESSEE's sole expense,to meet current building and fire code requirements. All such construction, Improvements and repairs shall be completed by May 31,2006. Section 2: ARTICLE 3,Section 3.7 Is hereby deleted and replaced with the following: Rent Payment Credits. LESSEE shall be excused from its obligation to pay annual rent provided that LESSEE(1)Is not In default of any Lease provisions,(11)is current in all other payments to CITY,and(ill)remains In possession and uses the Leased Land for the purposes of serving visitor's and businesses In Seward and promoting economic development, tourism and community events. It LESSEE does not complete the construction,Improvements and repairs required by Section 4.2(d)of this Lease by May 31,2006,without limiting other remedies available to the CITY, annual rent shall be Immediately due and payable from July 1,2005 and the rent credits described herein shall cease. In all other respects, the Lease Is to remain unchanged and In full force between the undersigned parties. IN WITNESS WHEREOF,the parties hereto have executed this document and it is effective upon the effectiveness of City of Seward Resolution 2005- L,cm Amendment No.I Page I of 3 Seward Chamber of Commeme and Convention and Visitor's Bureau 09 8 } LEASE AGREEMENT THIS LEASE AGREEMENT(the"LEASE")is made by and between the CITY OF SEWARD(the"CITY"),a municipal corporation located in the Kenai Peninsula Borough, State of Alaska and whose mailing address Is P.O.Box 167,Seward,Alaska 99664,and THE SEWARD CHAMBER OF COMMERCE AND CONVENTION AND VISITOR'S BUREAU, a nonprofit corporation (the "LESSEE"), whose mailing address is P. O. Box 749,Seward,Alaska 99664. WHEREAS,LESSEE has been leasing a parcel of land for many years located on the boardwalk in the Seward Harbor,an area of approximately 1,211 square feet more or less, as more particularly described as Lot 11, Block 6, Seward Small Boat Harbor Subdivision (the"Leased Land");and WHEREAS, the City Council of CITY has determined that a lease of the Leased Land of approximately 1,211 square feet, more or less, to LESSEE for the purposes described herein would be in the public Interest;and NOW THEREFORE,forand in consideration of the mutual promises and covenants hereinafter contained,the parties hereto agree as follows: ARTICLE 1 -LEASED LAND 1.1 Description of Leased Land. The Leased Land is located in the City of Seward, Alaska. The Leased Land Is described as follows: Lot 11, Block 6, Seward Small Boat Harbor Subdivision,as shown on Plat No.2000-19 In the Seward Recording District,Third Judicial District, State of Alaska. 1.2 Covenant of Quiet Enjoyment. Subject to the encumbrances as of the date hereof, any reasonable restrictions imposed on the Leased Land as part of recording of a plat by CITY, and the provisions of this LEASE, CITY hereby covenants and warrants that LESSEE shall have the quiet enjoyment and possession of the Leased Land for the full term of this LEASE. 1.3 Right to Provide Substitute Leased Land. CITY has limited land available for lease and LESSEE's Intended use of the Leased Land has been determined by the City Council to be in the public interest, LESSEE understands that there may be competing uses for the Leased Land which uses may be determined by the City Council to be of greater public interest and In that event,CITY reserves the right to one time,relocate LESSEE from its present leasehold as described in Section 1.1 of this Lease to a comparable new location selected by the CITY and accepted by I;iltMW37410613awan!Chunbu Cf Ca WX=LcIst Final.wpd Cur of swell.5"1Vd Chan"or canrmm t 9 LESSEE which acceptance shall not be unreasonably withheld. In the event of such a relocation,CITY shall not be responsible to LESSEE for any of LESSEE's costs associated with the relocation other than direct costs of moving any structure. CITY shall not be responsible for payment of any amounts of lost profits,incidental or consequential damages or any other costs or expenses as the result of CIlYs exercise of its rights under this provision. CITY shall provide written notice to LESSEE no less than one hundred twenty(120) days in advance of its intent to require LESSEE to move LESSEE's facilities. 1.4 PropedyAccepted"As-is". LESSEE acknowledges that it has Inspected the Leased Land and accepts the same "as-is" and without reliance on any expressed or Implied representations or warranties of CITY (other than the representations in Section 1.2 hereof), or agents of CITY, as to the actual physical condition or characteristics thereof and the legal description or depiction of the Leased Land in Section 11.1. 1.5 Pern7fts. LESSEE, at its sale cost, shall obtain all permits necessary to the construction and operation of its facilities on the Leased Land. CITY may from time to time,upon request of LESSEE,execute such documents,petitions,applications and authorizations as may be necessary,as the underlying fee owner,to file with an agency or public body responsible therefor an application for conditional use permit, zoning and re-zoning, tentative and final tract approval, or precise plan approval that may be required for the lawful construction and operation of the facilities of LESSEE permitted on the Leased Land by the terms of this LEASE. However,nothing in this Section shall be construed as requiring CITY to support or approve any such application or permit requests. If the agency or public body responsible to approve or grant such application or permit request is a City of Seward agency, department, or board,. LESSEE shall follow all City of Seward procedures,the same as any other applicant making similar requests of the City of Seward,according to the Charter,ordinances,resolutions,or any regulation,rules or procedures of the City of Seward. Nothing in this Section Imposes any duty or responsibility on CITY to assist LESSEE in obtaining any other permits or approvals. 1.6 Platting. In the event CITY elects to replat,CITY agrees to include the Leased Land in such replat in accordance with the description prepared by LESSEE under Section 1.3 herein. If LESSEE requests a replat of the Leased Land prior to that time, CITY shall assist LESSEE in the preparation and filing of the replat, and LESSEE shall reimburse CITY for CITY's costs In assisting with the preparation and filing of the replat. LESSEE agrees to sign the plat and any other documents necessary to complete the platting or replaffing of any area including all or a portion of the Leased Land. LESSEE shall accept reasonable restrictions,easements,or plat notes as may be required by CITY or other governmental authorities as a Nh=W37410615CW%td chmw of Caw&.ftu Usk nng,"d CKV of as."-5G.Nd Chi~C4 roe 10 condition to filing the plat of the Leased Land or the plat of CITY-owned real property adjacent to the Leased Land. ARTICLE 2-LEASE TERM 2.1 Lease Term. The term of this LEASE(the"Lease Term")shall be In accordance with CIlYs authorization Resolution No.2002-074(the"Resolution"). The Lease Term shall commence upon the effective date of the Resolution and that date shall be the effective date of this LEASE(the"Effective Date"). The Lease Term shall run for approximately twenty(20)years from the Effective Date,ending at midnight on September 30,2022. 22 Lease Subject to Referendum. LESSEE understands and assumes the risk that under the Charter and Code of CITY this LEASE may be voided by referendum. LESSEE agrees that if the Resolution approving this LEASE is the subject of a referendum petition filed with the Clerk of CITY,LESSEE shall have no rights under this LEASE unless and until the Resolution Is approved by the voters of the City of Seward, and LESSEE shall not be entitled to any damages or any other relief against CITY In the event the Resolution is not so approved. 2.3 Termination. Unless earlier terminated pursuant to Article 10 or Article 12, this LEASE shall terminate twenty(20)years from the Effective Date of the Resolution, that Is to say at midnight on September 30,2022. ARTICLE 3-RENTAL RATE 31 Initial Rental Rate. Commencing on the Effective Date of this LEASE through June 30,2005,the annual rental rate for the Leased Land shall be One Dollar($1.00). Commencing on July 1, 2005 through June 30,2010,the annual rental rate shall be adjusted to the appraised value established by CRYs appraisal in 2005, Rent shall be payable quarterly in advance upon the Effective Date of this Lease (prorated for the balance of the current quarter)and thereafter on or before the 20th day of the month beginning each calendar quarter January 20,April 20,July 20 and October 20. The amount of each quarterly payment shall be one-quarter of the annual rental rate as initially established or later adjusted under this Article 3. 3.2 Rental Adjustments. The annual rental payment shall be adjusted on July 1,2005, and on the same date every five years thereafter (each a "Rental Adjustment Date"). The adjusted annual rental payment to be paid under the terms of this Lease shall be the appraised fair market rental value (the "Fair Market Rental Value")of the Leased Land at the highest and best use of the Leased Land. The highest and best use of the Leased Land shall be determined without regard to LESSEE's Intended or actual use of the Leased Land unless that use is 1;U)=W337410AkwUd ChwhWe of Camnw=Lem FW wo Cara swwrd-3*Wa4CkWnUWW com"W" coincidentally the highest and best use of the Leased Land. CITY shall complete such appraisal and deliver a copy of the appraisal report to LESSEE not less than ninety(90)days before each Rental Adjustment Date. 3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental Adjustment Date, CITY shall, at its own expense, retain an Independent MAI- certified appraiser, who shall determine the "Fair Market Rental Value" of the Leased Land in accordance with this Article 3, exclusive of Improvements placed thereon by LESSEE but inclusive of all Improvements made by CITY (including those made before or subsequent to this LEASE).The appraiser's report shall be delivered to LESSEE not less than ninety(90)days before the Rental Adjustment Date. The appraiser's determination of Fair Market Rental Value of the Leased Land shall constitute a final binding determination of the Fair Market Rental Value and the adjusted annual rental rate until the next Rental Adjustment Date, unless LESSEE objects to CITY's appraiser's determination of the Fair Market Rental Value. In that case,LESSEE shall give written notice to CITY of its objection within thirty(30)days of receipt of the appraiser's report,and LESSEE shall then engage an independent MAI-certified appraiser at LESSEE's expense to make an appraisal of the Fair Market Rental Value in accordance with this Article 3. If LESSEE'S appraisal determines a Fair Market Rental Value that varies from that determined by CITY's appraisal by no more than twenty percent(20%),then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If LESSEE'S appraisal determines a Fair Market Rental Value that varies from CITY's appraisal by more than twenty percent(20%),then,unless CITY and LESSEE agree on a rate themselves, the adjusted annual rental rate of the Leased Land shall be determined In accordance with the arbitration provisions contained in Article 19 of this LEASE. 3.4 Effect of Late Appraisal by CITY. If, for any reason, CITY does not complete the appraisal or deliver a copy of the appraisal report to LESSEE ninety (90) days before the Rental Adjustment Date,CITY may proceed to complete the appraisal or deliver a copy of the appraisal report to LESSEE at any time thereafter. However, any such adjusted annual rental rate shall not be effective until the quarterly payment due date immediately following the date CITY delivers the appraisal report to LESSEE. 3.5 Appraisal by LESSEE. If for any particular Rental Adjustment Date, CITY fails to obtain an appraisal of the Fair Market Rental Value or fails to deliver the appraisal report to the LESSEE by the Rental Adjustment Date, LESSEE may engage an independent MAI-certified appraiser at LESSEE'expense to make an appraisal under the terms of this Article 3 and submit a copy to CITY before the next quarterly rental payment due date.However,LESSEE must notify CITY In writing within thirty WOof4 0-3#*wd Cl~of Conmmrar 4 12 (30)days following the Rental Adjustment Date of LESSEE's election to obtain an appraisal. If CITY objects to LESSEE'S appraiser's determination of the Fair Market Rental Value,CITY shall give written notice to LESSEE of its objection within thirty (30) days of receipt of the appraiser's report, and CITY shall then engage an Independent MAI-certified appraiser at CITY's expense to make an appraisal of the Fair Market Rental Value as of the Rental Adjustment Date and In accordance with this Article 3. If the CITY's appraisal determines a Fair Market Rental Value that varies from that determined by LESSEE'S appraisal by no more than twenty percent (20%), then the adjusted rental rate shall be the average of the rental rates determined by the two appraisals. If the CITY's appraisal determines a Fair Market Rental Value that varies from LESSEE'S appraisal by more than twenty percent (20%),then,unless CITY and LESSEE agree on a rate themselves,the adjusted annual rental rate of the Leased Land shall be determined In accordance with the arbitration provisions contained In Article 19 of this LEASE. 3.6 Effective Date ofAdjusted RentatRate. The adjusted annual rental rate established by this Article 3 shall apply as of the Rental Adjustment Date If CITY provided a copy of the appraisal report to LESSEE no later than ninety(90)days before the Rental Adjustment Date. If the adjusted annual rental rate is based on CITY's late appraisal or late delivery of the appraisal report to LESSEE,the adjusted rental rate shall be effective beginning with the quarterly rental payment due date immediately following the date the CITY delivers the appraisal report to LESSEE. Notwithstanding the above,the exercise by either CITY or LESSEE of the objection procedure relating to rental adjustment described in this Article 3 shall not postpone LESSEE's obligation to pay rent at the rate established by CITY. LESSEE shall pay the amount of rent as established or adjusted by CITY until the question of objection to the rental rate Is finally resolved. At such time the objection to the rental rate Is resolved,an appropriate credit or adjustment shall be made retroactive to the date the new rental rate was established by CITY or in cases where CITY failed to obtain an appraisal or deliverthe appraisal report to the LESSEE,to the Rental Adjustment Date. 3.7 Rent Payment Credits. LESSEE shall be excused from its obligation to pay annual rent provided that LESSEE(i)Is not in default of any Lease provisions,([I)is current In all other payments to CITY,and(III)remains in possession and uses the Leased Land for the purposes of serving visitors and businesses in Seward and promoting economic development,tourism and community events. 3.8 Late Payment Charge. Rental payments not received by the due date shall bear interest until paid at a rate of 10.5% per annum, or the maximum rate permitted under Alaska law,whichever Is less,plus a flat monthly late fee of$2.50,or such amount as may be established from time to time by CITY ordinance or resolution and relating to late fees for CITY leases generally. Lq)oWA3374106&wvd Chuda or Comar=Low Fhut wo My of 3. w-Sword chwflbw of C� 13 ARTICLE 4-USE OF LEASED LAND 4,11 Use of Leased Land. CITY has limited land available for lease. Use of the Leased Land by LESSEE has been determined by the City Council of CITY to be in the public interest. LESSEE'S use of any CITY-owned land outside the Leased Land Is not permitted,and shall be deemed an act of default by LESSEE. 4.2 Obligations of LESSEE. LESSEE may use the Leased Land only in accordance with applicable CITY zoning code provisions and provided the following conditions are met: a) The Leased Land Is to be completely cleaned and restored to its original condition upon termination of this LEASE. b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazardous Materials on the Leased Land, c) LESSEE shall not use the Leased Land in any manner or construct any facilities thereon which would inhibit the use of adjacent or other lands. d) LESSEE shall make such changes as are necessary or desirable, at Lessee's sole expense,to meet current building and fire code requirements. All such construction, Improvements and repairs shall be completed by March 31,2004. 4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE any exclusive rights to use any public port or other public facilities constructed or operated by CITY. LESSEE will be subject to any tariffs,procedures, rules and regulations of CITY concerning the use of such facilities as they may now exist or from time to time be amended, and LESSEE shall not be entitled to any exclusive use. 4.4 Adequacy of Public Facilities. CITY makes no representations or warranties as to the fitness of any particular part or the whole of CITY's public facilities for the uses intended by LESSEE,and LESSEE has inspected those facilities and has satisfied itself that the facilities are sufficient for the intended uses by LESSEE. CITY makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any Information provided by CITY. 4,5 Tariffs and Other Service Fees. CITY shall have the right to make amendments to its tariffs, regulations and scheduled fees from time to time even if those adjustments shall cost LESSEE more for its operations or use of public facilities, 1AD=%433?4106kSrwwd Mari=a(Counaa Lou RW*vd CWV 0 SO."-Soward ChAnOW 0 CaMrMV4 14 Sponsored by: Hunt CITY OF SEWARD,ALASKA RESOLUTION 2013-058 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, REAFFIRMING THE SEWARD CHAMBER OF COMMERCE, CONFERENCE AND VISITORS BUREAU AS THE LEAD MARKETING ENTITY AND ESTABLISHING COUNCIL'S INTENT TO ANNUALLY FUND WITH HALF OF THE ACTUAL BED TAX REVENUE FROM EACH SECOND PRIOR YEAR WHEREAS,the City of Seward implemented a 4% bed tax on January 1, 1996. and from 1996 through 2000,contributed varied amounts of the bed tax to the Seward Chamber of Commerce. Conference and Visitors Bureau(Chamber)to fund specific activities such as improvements to the visitors center, a visitor brochure,a feasibility study, convention center study, etc,and WHEREAS,beginning in 2001,the Seward City Council agreed to split half of the budgeted bed tax with the Chamber for the express purpose of providing contract marketing services on behalf of the community; and WHEREAS,beginning in 2002 the Seward City Council began basing the contribution to the Chamber of half of the previous full year's actual bed tax collected; and 6w WHEREAS, since the 2005 the city budget has included an appropriation to the Chamber from the second previous full year's bed tax revenue at 50%,and WHEREAS,the city's Strategic and Comprehensive Plans clearly state the city's desire to expand its business base and to generate year-round employment; and WHEREAS, the city obtains significant benefits, direct and indirect, of marketing efforts with the quality of life for the citizens of Seward and surrounding areas as a direct result of a stable. vibrant,year-round ecorion-ty;and WHEREAS,marketing is an important effort that must take place to achieve the goals of attracting new business and industry,support and grow existing businesses,and increasing customers coming to Seward; and WHEREAS,the Chamber has the experience, professional contacts and ability to provide marketing services for the community with the ability to focus resources and target specific marketing groups to react to changing markets and demands more efficiently and expertly than the City-, and WHEREAS, the Chamber presents its budget to the Seward City Council annually and provides monthly updates on activities; and 15 CITY OF SEWARD, ALASKA RESOLUTION 2013-058 WHEREAS,the council recognizes that a coordinated marketing effort at the community- wide level is critical to a successful economy. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Council hereby reaffirms the Seward Chamber of Commerce. Conference and Visitor's Bureau as the designated lead marketing entity for the City of Seward Section 2. The City Council hereby confirms its intent to annually fund with half of the actual Bed Tax Revenue from each second prior year. Section 3. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 22 d day of July. 20 13. THE CITY OF SEWARD,ALASKA David Seawar M or AYES: Valdatta, Bardarson, Keil, Shafer, Terry NOES: Seaward ABSENT: Casagranda ABSTAIN: None ATTEST: �'da.T. Ba ou .6v irenda"J. Ba' �tu Acting City , Of b .......... P % (City Seal); so � , %ot4,0 000 OF '00#4rilar 0 t 6,'L 16 Agenda Statement Meeting Date: July 22, 2013 To: City Council From: City Manager Jim Hunt Agenda Item: Reaffirmation of Chamber funding BACKGROUND& JUSTIFICATION: The City's Strategic and Comprehensive Plans clearly state the City's desire to expand its business base and to generate year-round employment. Both plans include goals and objectives in regards to having a robust marketing campaign highlighting Seward's diverse resources and excellent quality of life. The City and its Citi7xn's obtain significant benefits,direct and indirect,of marketing efforts with the quality of life for the citizens of Seward and surrounding areas as a direct result of a stable, vibrant, and year round economy. Marketing is an important effort that must take place to achieve the goals of attracting new business and industry, support and grow existing businesses, and increasing customers coming to Seward. The Seward Chamber of Commerce,Conference and Visitor's Bureau(Chamber)has the experience, professional contacts and ability to provide marketing services for the community with the ability to focus resources and target specific marketing groups to react to changing markets and demands more efficiently and expertly than the City. During the budget process Council ensures the Chamber meets their mandated goals and objectives for the citizens and business of Seward. Representatives of the Chamber give a presentation to the City Council, and provide a written budget, specifying the use of these funds. Additionally, the Chamber Director provides monthly updates to Council and the Port and Commerce Advisory Board. INTENT: The City Council recognizes that a coordinated marketing effort at the community-Aide level is critical to a successful economy and with this Resolution reaffirms the Seward Chamber of Commerce,Conference and Visitor's Bureau as the designated lead marketing entity for the City of Seward. Additionally,the City Council hereby confirms its intent to annually fund with half of the actual Bed Tax Revenue from each second prior year. CONSISTENCY CHECKLIST: Yes No N/A Comprehensive Plan: 3.1.1 AttractSi new business and industry to the greater Seward area. 3,LL] Develcp an active marketing campaign 1. that highlights the diverse resources and quality of life that makes X Seward an attractive place in which to live and to establish a business or industry. Strategic Plan:Page 5 Goals and Objectives,Attract New Industry 2. Develop an aggressive marketing campaign which highlights the X diverse resources and quality of life that makes Seward a great place to live and establish a business or industry. U' 17 3 Other: Ordinance 1995-001, City Council Resolutions 1997-052, 2004- . X 047 and 2005-018. PACAB Resolution 2004-006 FISCAL NOTE: The hotel/motel tax rate is 4%. It has been 4%since it was first put in place by an Initiative Ordinance by the voters, effective in January, 1996. Following is a sampling of various communities and their Bed Tax rates: Adak 5%; Anchorage 12%; Barrow 5%; Bethel 12%; Bristol Bay Borough 10%; Cordova 6%; Dillingham 10%;Fairbanks 8%: Fairbanks North Star Borough 8%; Haines Borough 4%;Juneau 7%;Ketcbikan 7%;Kelchikan Borough 4%;Kodiak 5%;Kodiak Island Borough 5%;Kotzebue 6%; Mat-Su Borough 5%;McGrath 10%;Nome 6%;North Pole 8%;Pelican 10%;Petersburg 4%;Sand point 7%; Seward 4%; Sitka 6%; Skagway 8%; Valdez 6%. Seward's Ordinance was followed up by a Resolution of the City Council, stating their intent to appropriate a portion of the bed tax to promote tourism and develop visitor infrastructure. Resolution 1997-052 specifically identified the Chamber of Commerce for purposes of providing marketing and other services on behalf of the community. Ever since that time, the City has appropriated a portion of the Bed Tax, and beginning in 2001 it has been one-half of the bed tax to the Chamber of Commerce for marketing and economic development. The other half of the bed tax is used to fund the General Fund's infrastructure projects benefiting visitors which could include things such as public restrooms, viewing areas, pavilions, campground improvements, sidewalks, library,etc. The bed tax is apportioned to the Chamber based on one-half of the bed tax collected during the second prior year (the intent is that when the budget is formulated, the amount of the bed tax allocation for the first year in the biennial budget, is based on a known figure). So for example,in 2012 the City provided the Chamber with$164,198 which represented one-half of the 2010 actual bed tax revenues of$328,396. Bed tax revenues in 2011 were $334,823.77, so one-half of that would be $167,411.88 to the Chamber in 2013, and were $390,210.48 in 2012, so the Chamber allocation in 2014--assuming the Council still allocates one-half of the bed tax to the Chamber-- would be $190,105.24. Approved by Finance Department: ATTORNEY REVIEW: Yes - No X RECOMMENDATION: 68 Approve Resolution 9.013-D reaffirming the Seward Chamber of Commerce, Conference, and Visitor's Bureau as the lead marketing entity and establishing Council's intent to annually fund with half of the actual bed tax from each second year prior. t68 Marketing & Cit Contract Seward Chamber of Commerce, CVB Promotion 2019 I 50%2017 bed tax $260,454.00 City of Seward Marketing Communications Manager $50,000.00 Project Manager on all Collateral - Print & Electronic Print and Web Advertising Social Media Campaigns $2,000.00 FaceBook, Social Media Campaigns $18,000.00 Graphics/Production Seward.com $12,500.00 Seward Guide Distribution, Postage, Freight $5,000.00 rKPTMC, lls Travel Guide, Alaska Channel $6,000.00 ATIA, Milepost, Alaska Magazine, JBER Guide $3,500.00 Buy-in Alaska State Ma $47,000.00 Trade Shows/Forums $7,200.00 Pacific Marine Expo, Advertising, Give-aways $6,000.00 San Francisco Adventure Travel Show $2,700.00 Great Alaska S ortsmans Show $15,900.00 Media Support $3,500.00 Media Support/Journalist trips to Seward $3,500.00 EcDev Programs &Services $25,000.00 Blue Pipeline Incubator Manager/SDBC Adviser $600.00 Alaska Business Week Scholarship $2,000.00 Chamber Open House/ FAM Tour $1,500.00 Social Media Workshops: Members $1,000.00 Alaska Start Up Week $8,250.00 Seward Economic Growth Plan $38,350.00 Conferences $1,900.00 Alaska State Chamber Conference $1,950.00 ATIA Fall Conference $600.00 KPEDD Industry Outlook Forum $4,000.00 Board of Fish (Seward 2019) - Other? $8,450.00 Event Promotion $12,500.00 MMR & July 4th Advertising, includes event guide $15,000.00 Salmon Derby Advertising, includes radio & brochure $10,000.00 June Event Advertising, radio & brochure $4,000.00 Support to Community Events - Mermaid Festival, AVTEC 50th $3,000.00 Volunteer Support $4,000.00 Winter Promotions - Winter Video, Winter Weekends $48,500.00 Visitor Center Operations $48,754.00 Staffing, Utilities, Building, IT, Restrooms, Grounds & Building Maintenance $48,754.00 $260,454.00 IlTotal City Marketing Plan 2019 19 Report to COUNCIL JULY 22, 2019 Seward Chamber of Commerce, CVB, Cindy Clock New Chamber members this month: t. 415 rneirbeiirs Alaska Maritime National Wildlife Refuge Alaska Lift Seward Mermaid Festival, LLC Ticket sales for the June Halibut Tournament were flat, remaining consistently over the past 13 years at approximately $25K. The Seward Chamber Board of Directors have decided to take a critical look at our signature events to determine what makes sense for us as an organization going into 2020 and beyond. Implementation of our Customer Relationship Management software is progressing nicely. Members received an electronic letter from Aisha Bouziane letting them know that the member portal to Chamber Master — our old member software program is now closed. Aisha and the chamber staff will be providing training on Simple View this fall. Seward.com's interim website is almost ready, with the entirely new site on track— also for this fall/winter. Despite some challenges — heat, dust & smoke - the Mt. Marathon Race & 2-Day July 4t" Festival Was a very successful event. Our IT Wizard is in the process of getting all the Junior Racers their refunds by the end of the month. The MMRC and the Board feel very strongly that cancelling the Junior Race was the right decision. A huge thanks to Jen Leahy for delving deep into the aspects of Air Quality Index to get us the most accurate information. Kris Harris is surveying the festival vendors to gather their input on the 2020 event. She heard back from the Girdwood Forest Fair organizers that they are NOT going to move the dates for the fair next year. It's scheduled for July 4t" & 5t", obviously a conflict. The August First Friday Art Walk is on the 2nd Next Chamber Lunch, Thursday, Aug 8t" when we'll hear from the City Manager, Scott Meszaros I've submitted copies of the marketing contract and the 2013 Resolution endorsing the Seward Chamber as the designated DMO - Destination Marketing Organization. The bed tax collected since its inception has risen by leaps and bounds. The City is no doubt thrilled with these numbers since the bed tax is split between us. We are anticipating continued growth and look forward to getting the 2018 numbers from the Chief Financial Officer. I didn't read aloud this portion since the work session scheduling was postponed Under item 3 Newusi scan tonight" gendar The Chamber Board believes it would be More roductive to 1iave, a focused con ve,rsatlon between II/isit Seward(a progrdm oftha Saward C`ha nbel), C'it��d rrinistrati�ar�, and PA about. ew it tl�� f�°�° �ent between tl7e Cfaa b � I/isit ward and the C t ��vjde destination Tina e prat abed arketln ,services, ............................................................................................................................................................................. ............................................................................................................................................................... Our goal would be to negotiate a new agreement with City Adr77inistr ti0n (,end with tl e support of PACE ) in Se to/72ber.so that the C01117 it could consider auffioriling it this fall during the anneal budge,tincg process. 20 As part of a new agreement, there will likely be opportunities for community engagement as we embark on creating a sustainable tourism management plan. Hote MaloWl Roorrr Tax a°mtuilrrrtim""o tea°,and""1mr'r'aWr of%rwrrmme fm Maart�Mrar�„ar�r<N Maa':crr�a�rrrrr fYa��w�NaaMrrr"r rat�b�r�lcay 2019 f laf Cycle budget:My Baral rxt 52SL923 vs$26%4S4(ar trral) -T5;1°1 add d t.a5rrndl aMrMara pdallon re M mst Hotel/Motel Room"Pax: Hotel/Motel Room Tax front FD. re-half frariding to "tear of fl om Year <_':r„Uections 11wr yr of Bed Tax Chanter er rrf�m`rarnmerm Carrtrilraaticrrr Prior y"r 2f,M2u;;r 2016 5o4 ,845 10 ';'r'ay 2 5 2 1 T", 252123 2019 1b fit„ 2015 4"ai%64;5 K7`� 229aW wits 2M7 &7% 2014 421,^?81 �.1 ', 210191 216s„`vt 2A6 .,. 1911r 2012 13.69101 19Yr,in, 1a,R'gK14.5 2N4 11.M~1"1"a, 2011, 4,824 2.0% 1c,7,412 110 Y4:"O 013 r 5Fr, 20V) 328,396 15.1% w1,1a 16108 1ai12 RT. 11)10 2009 28` 31.E 2119c 141bS7 1."1 a;o'' 2011 -1a 6110 2N8 02004 1 �9111 181002 181402, 20:10 1 52'ia ,{f�107 "'4 ,162r E 5% 171, 1. 1.71 ''"U 0 <:a. 1 p K�% �. � �. V ream , .. +a,...,. 24sey , 11."Y„570 0.1,"� 15%2M� 20(:8 4 F 2005 2,04„r,,S6 18. "M'a;,„ 10,128 144000 2007 1a ,fit^i"o 2004 .1:35660 IIA96 11°,no 121400 2006 1;,1%) 200 2IS145 111a, 10 ,50 1()7 56.0 20,.41,i -11`�'rr 2002. 2.1.7„ S2 "ust 10%741. 1.08,70(,, 20,,')4 ''o 2001 2yf:t "d41, VA,72: 1010 2NI A A AN) 21 r.;E? 10 6 o"Ya"0 2002. lea91"?, 141211 " ;j4,"k 2000 21 Sponsored by: Terry CITY OF SEWARD,A,LA SKA RESOLUTION 2019-003 Aa RESOLUTION OF THE SEWAR.D PORT AND C`OMMERCE ADVISORY BOARD RECOMMENDING CITY COUNCIL CONTINUE WITH THE SEWA R.D CHAMBER MBER OF COMMERCE,E,CONFERENCE E ANDVISITOR'S BUREAU'AS THE DESIGNATED LEAD MARKETING ENTITY FOR"THE CITY OF SEWARD WHEREAS,AS, the City ofSeward implemented a 4%bed tax can January 1, 1996, and f orn 1996 through 2000,contributed varied amounts of"the bed tax to the Seward Chamber eaf`(::'carnmerce, Conference and Visitors Bureau(Chamber)to fund specific-activities,such as improvements to the visitors' center, visitor brochure, f6sibil ty study, convention center study, etc; and WHEREAS,beginning in 2001,the Seward City Coua nil aapreed to split half ofthe budgeted bed tax with the Chamber for the express purpose of providing marketing services on behalf of the connnunity, and WHEREAS,S,beginning in 2002 the Seward C:`ity,('aauncil began basing the contribution to the Chamber of half of the previous full year's actual bed tax collected; and l % WHEREAS,since 2005,the City Budget has included an appropriation to the Chamber from the second previous full year's bed tax revenue at 0% and WHEREAS,in 2013, Council reaffirmed its intent to have the Chamber continue as the lead marketing entity,and to continue its intent to annually fund with half ofthe actual Bed Tax Revenue from each second prior year; and W11l ERE AS,S,the City's Strategic Plana and Comprehensive flan clearly state the City's desire to expand its business base and generate year-round employment; and WHEREAS, the City obtains significant benefits from marketing efforts, bath direct and indirect,as demonstrated by the quality of life fbr the citizens of,Seward and the surrounding areas, as a direct result of a stable, vibrant, year round eceanorny; and WHEREAS,S, marketing is an important etfort that must take place to achieve the goals (if' attracting new business and industry, supporting and growing existing businesses, and increasing customers coming toSeward; and WHEREAS,the Chamber has the experience,professional contacts,and ability tea provide na ' p marketing seances tear flare community, and the acumen fiacus resources andtaaa-target specific marketing groups to react to changing markets and demand«s more efficientlyefficientlyand expea'tlya than p (:,AB or the City; and 22 CITY OF SEWARD, ALASKA WHEREAS, the Chamber provides monthly updates on activities to P CAB and works collaboratively,on items, such as the SMIC Relaunch; and WHEREAS,PAC AB recognize that a coorclinatc f aaaarlcetin etfoil,to include the Chamber at the community-wide level, is critical to a successlId economy. NOW,THEREFORE,BE ITRESOLVED BY THE CITV COUNCIL OFTHE CITY OF SEWA D, ALASKA that: Section 1. °l°he Part and Commerce Advisory Board (P C`AB) recornmends City Council continue with the Seward Chamber of'Commerce,C ontereaace and Visitors Bureau as the designated lead marketing entity for the City of'Seward. Section 2. This resolution shall take effect immediately and he provides to Seward City Council. PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska, this 14"' day of August, 2019. W omuiiir y'fA ew i wmm..+i.wvxw, wa ww"^" T,w t M.hI. .i.. ....�.. C�laar is, AYES: Paquette, Schneider, Lawrence, Jaffla, °erry -w NOES: None ABSENT: Hughes, Ulnas ABSTAIN: None Brenda J, [Ball � Clity C"ler : �' 4 a'r l��' 5;"r" mro r z vm,✓ r �� r m ,�a� P��?�� ' u aty ,l !wimn w mow'' w 23