HomeMy WebLinkAbout06252018 City Council Packet a
4 � �
r
S�
Agenda Packet
IV
1
American Seward City Council Eagle
Monday, 1
1963 1965 2005 The City of Seward,Alaska
CITY COUNCIL MEETING AGENDA
AII-AmericaCity k
{Please silence all cellular phones during the meeting}
June 25, 2018 7:00 p.m. Council Chambers
David Squires 1. CALL TO ORDER
Mayor 2. PLEDGE OF ALLEGIANCE
Term Expires 2019 3. ROLL CALL
4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT
Marianna Keil THOSE ITEMS SCHEDULED FOR PUBLIC HEARING
Vice Mayor [Those who have signed in will be given the first opportunity to speak.
Term Expires 2018 Time is limited to 3 minutes per speaker and 36 minutes total time for
this agenda item.]
Ristine Casagranda 5. APPROVAL OF AGENDA AND CONSENT AGENDA
Council Member [Approval of Consent Agenda passes all routine items indicated by
Term Expires 2018 asterisk (*). Consent Agenda items are not considered separately
unless a council member so requests. In the event of such a request,
Sue McClure the item is returned to the Regular Agenda]
Council Member 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Term Expires 2019 A. Proclamations and Awards—None
Vacant B. Chamber of Commerce Report
Council Member C. City Manager Report........................................................ Pg. 3
D. Other Reports and Presentations
Term Expires 2018 1. Statements from applicants interested in the vacant
Suzi Towsley City Council seat: John Osenga and Sharyl Seese.....Pg. 133
Council Member
Term Expires 2019
Jeremy Horn
Council Member
Term Expires 2019
James Hunt
City Manager
Brenda Ballou
City Clerk
Will Earnhart
City Attorney
City of Seward, Alaska Council Agenda
June 25, 2018 Page I
1
7. PUBLIC HEARINGS
[Those who have signed in will be given the first opportunity to speak. Time is limited to 5
minutes per speaker. Anyone wishing to speak a second time may do so only after all other
persons have spoken, and then for 1 minute.]
A. Resolutions Requiring Public Hearing
1. Resolution 2018-053, Authorizing The Competitive Sale Of The Property Described
As West 1/z Of Lots 19 And 20, Block 30 Original Townsite Of Seward, Tax Parcel
ID No. 14813010, 408 Madison, For The Amount Of $40,052 To Mary Lutz In
Accordance With Seward City Code Section §7.05. .............................. Pg. 12
2. Resolution 2018-055, Approving An Amended And Restated 20 Year Lease With
Two Five-Year Extensions With Icicle Seafoods For Lots 2a, 3a Block 2 Marina
Subdivision Replat No. 96-28, Seward, Alaska. .................................... Pg. 18
3. Resolution 2018-056, Approving A License For Real Property With The United
States Government For Continued Use Of A Portion Of Lot 1 Block 10 Fourth Of
July Creek Subdivision, To Be Used For A Weather Radio Transmitter Site. .. Pg. 67
8. UNFINISHED BUSINESS
A. Ordinances for Introduction
1. Ordinance 2018-003, To Revise Seward City Code 3.40, Grievance Procedure.Pg. 82
9. NEW BUSINESS
A. Ordinances for Introduction
*l.Ordinance 2018-004, Amending Portions Of Seward City Code 15.10.140 Definitions;
15.10.215 Parking; 15.10.220 Development Requirements; 15.10.220 Development
Requirements Table; And 15.10.226 Land Uses Allowed Table. .................Pg. 97
B. Resolutions
*1. Resolution 2018-057, Adopting The Planning And Zoning Commission Priorities
From April 2018 To April 2019. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .... Pg. 118
C. Other New Business Items
*1. Approval of June 11, 2018 Regular Meeting Minutes. ............................. Pg. 123
2. Vote and appoint a qualified candidate to fill the council vacancy with a term to expire
October, 2018. Applicants are: John Osenga and Sharyl Seese. .................. Pg. 133
3. Swear-in and seat new council member with a term to expire October, 2018.
4. Schedule a work session with City Attorneys Holly Wells and Katie Davies to discuss
Conflicts of Interest, Ethics, and Public Records Requests.
10. INFORMATIONAL ITEMS AND REPORTS (No Action Required)
A. On-Going City Projects and Goals. ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... Pg. 136
B. Invitation to KPB Industry Appreciation Day. ... ... ... ... ... ... ... ... ... ... ... ... ........ Pg. 139
It. COUNCIL COMMENTS
12. CITIZEN COMMENTS
13. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS
14. ADJOURNMENT
City of Seward, Alaska Council Agenda
June 25, 2018 Page 2
2
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
JUNE I I —JUNE 25
The following purchase orders between $10,000 and $50,000 have been approved by the City Manager since
the last council meeting:
5/29/18 Electric Altec New Peterbilt $227,613.00
6/7/18 Parking T2 Systems Luke Pay-stations for Parking $18,931.00
6/7/18 Parking Warning Lites Parking Signs $10,560.00
6/18/18 SMIC N Dock Puffin Electric Elec Rack on N Dock $10,527.00
ADMINISTRATION
Met with the Deputy to the Undersecretary to the Army at the Corps of Engineer's offices at JBER with District
staff and discussed large Corps projects with special focus on Lowell Canyon
Met with citizens
Met with Lowell Pt. community representatives regarding Lowell Pt. Road and declaration and grant funding
Met with state candidate for our district
SMIC meeting
Responded to Lowell Canyon debris emergency and monitored area creeks
HARBOR
• Conducted meetings with Hamilton Construction and R&M for the Breakwater project on 6/14/18, 6-21-18.
• The 330 ton will be shut down for about two weeks sometime in late June or early July (waiting on a more
definite timeframe from the contractor), Hamilton Construction will be pouring concrete at the travelift pit
where it was widened.
• Conducted meetings with PND on the South Harbor Launch Ramp, 75% design is out and we conducted
more on-site meetings, should go out to bid by mid-July.
• The new fisherman float is in place, electrical and water to be installed soon.
• The ramp has arrived and has been connected to the trestle and floats.
• The piling all installed at the North Dock we are waiting on the fenders to be installed, Mid-July or early
August.
• The drill rig is preparing for a job in Cook Inlet they will depart SMIC in around 15 days.
• We are currently working with Hamilton Construction and McKinley fence on the North Dock fencing
proj ect.
3
PUBLIC WORKS
Director: Work on the Lowell Canyon Water Tank Refurbishment continues to progress. The project is out to
bid for construction now with construction to be done this summer and fall. The Federal disaster declaration
was signed by the president for Lowell Point Road repairs. We are moving forward with the RFP for
engineering and design for the project. We hope to include mitigations into the project.
Water,Wastewater Utilities: The water crew repaired a broken water main on A Street by 3rd Avenue. The
power outages sent wastewater and water personnel scrambling to reset and repair items at the sewer lift
stations and the water well pumphouses. They were able to restore all services without service interruptions to
residents.
Streets: Warmer weather without much rain has really helped us get new paint down on the crosswalks and
stop bars. State workers were also painting on 3rd Avenue prior to upcoming line painting of the center lines
and fog lines. We are also sweeping more areas to be ready for repainting the City center lines and fog lines.
Shop: The brusher/mower is now serviced and ready for use as we finish other jobs. We were able to get the
large pile of junk tires disposed of. We worked with the Kenai Peninsula Borough Solid Waste department to
achieve a good solution that works with their plans. They were very helpful and good to work with. One more
project checked off our list.
Buildings: Normal building duties for summer including mowing and trimming outside. We are liking the
sunshine!
Repair at A Street and 3rd Ave
A
r �
w
q
. MCA .. •. ` y
4
PARKS AND RECREATION
Teen Youth Center
• TYC Summer day camp is full for the summer. We are only accepting wait lists at this point.
• Family Campout is June 28 and 29. Sign up for just$10 and join us at Trail River Campground group
site. TYC staff will provide dinner and evening games. Parents or a responsible adult must accompany
children. Please sign up at TYC. You do not have to be a camper to attend the Family camp out.
• Although Day Camp is full, there is still room in some of our Adventure Camp activities. These special
adventure trips are open to 6-8th graders whether they are registered for the camp week or not.
• Kelly Lake Cabin Camp out is June 21st. The cost for non-campers is $60.
• Kayaking with Adventure 60 North on July 25. Cost is $60 for non-campers.
• Zip lining with Canopy Adventure on July 11th also has just a few more space. The fee is $80 for this
adventure for non-campers.
Teen Rec Room
• TRR is open to Middle School and High School students Tuesday through Friday from 5:30 pm to 9:30
pm
• Tuesday is cooking with Kaiti; everyone helps prepare the meal and we share it family style at the TYC.
• Wednesday is Midweek in the Rec Room with Tia.
• Thursday is all about tournaments; foosball, skeet ball,pool and more. Prizes will be given to the
winners of the week's tournament.
• Friday is special activities day; maybe a camp fire, hike or water sports. Come check it out.
Park Maintenance & Campgrounds
• So far this season, the campgrounds has experienced a 19.8% increase in camper nights compared to the
2017 season thus far. The result of this is $164,000 in revenue and $27,100 in additional revenue during
the same time period as last year.
• The Park Maintenance and Campground crews are fully staffed; we are excited by the amazing team we
have put together this season.
• Staff is working to improve cemetery turf, remove broad-leaf weeds from our green spaces, keep up
with vegetation growth all while continuing to provide superior customer service for our visitors and
residents.
• As of June 15th, the enclosed slide at the PARKS playground will be closed until further notice. We
have identified an entrapment hazard on the slide due to vandalism. We are awaiting replacement parts
to arrive in order to make the necessary repairs. Though the access to the slide has been closed off, we
encourage parents to keep their children away from that portion of the structure.
• Beginning July 1st,the City of Seward will begin charging
$5 per day for parking at the Spring Creek Campground. This fee
is necessary in order to offset the cost of portable toilets and
dumpster that are requiring almost daily servicing.
• A repair was made to the Little League Field retaining wall that was collapsing. The structural stability
of that section is strong, but other parts of that wall are compromised. We plan to move forward with
complete replacement in the near future.
5
Thank you to Brandon for this labor of love,
the Branson Pavilion reservation sign.
4
Parking
• The Parking Department is doing well. Total revenue for this year is $68,478. By the end of June, we
should surpass the 2017 total June revenue which was $74,365. In the past 30 days we have sold:
75 Harbor Area Employee Permits
26 Vehicle with Trailer Permits
3 Company Vehicle Permits
191 Slip Holder Permits
11 Visitor Permits
0 Service Vehicle Permits
• This is nearly the same as 2017. Compliance is improving. Early this month we were giving out almost
24 citations total per day. The number of citations given out daily is approximately 10.
• Repainting lines is moving along nicely when weather permits and bumper stops in the Permit Lot and
South Harbor Uplands will be placed sometime this week.
• We are awaiting several signs to be placed in our lots to advertise rates and lot names more effectively.
Sports & Recreation
• The AVTEC Gym attendance remains slow and steady with this wonderful, sunny June weather.
• We hosted three, Challenger Sports, British Soccer Camps for locals.
• Free Soccer Play Day Wed June 20 at Seward Elementary School.
• Windsong Lodge's Youth Soccer League registrations now. Pay early to save money and help us as we
order uniforms. We are accepting applications for volunteer coaches who must pass a background check.
• Summer racquetball is wide open. Call for court time, 224-4054.
Admin
• Still seeking a qualified, adult ALPAR litter patrol crew leader.
COMMUNITY LIBRARY AND MUSEUM
April 2018 Statistics
• 10,407 Front Door Counter
• 286 Movie@2 Admission
• 13 Programs
• 3,128 Alaska Library Catalog Circulation for Seward
• 625 Library Users in Seward
6
• 362 Alaska Digital Library
Circulation for Seward
• 12 Passport Applications
• 12 Notaries
• 9 Proctored Exams
• 95 Room Uses
• 915 Public Computer Sessions
May 2018 Statistics
• 15,402 Front Door Counter
• 686 Movie@2 Admission
• 265 Iditarod Movie Admission
• 36 Programs
• 4,053 Alaska Library Catalog Circulation for Seward
• 657 Library Users in Seward
• 422 Alaska Digital Library Circulation for Seward
• 10 Interlibrary Loans
• 7 Passport Applications
• 10 Notaries
• 7 Proctored Exams
• 85 Room Uses
• 998 Public Computer Sessions
ALASKA LIBRARY CATALOG NEWS: Our access to information and material has grown! The
University of Alaska,Fairbanks Libraries (which also includes Bethel, Kotzebue, and Utqiagvik) and the
Fairbanks North Star Borough Public Libraries,joined the ALC in May. The Alaska Library Catalog is a
consortium of 87 public, academic, special, and K-12 libraries who serve 92% of the population of Alaska.
This shared catalog has 3.2 million titles! Regular Seward library card holders have access to most of those
titles through a consortium-wide hold system. Want to learn more about how to make use of this marvelous
consortium? Stop by or give us a call at 907-224-4082.
Visit https://alc-staff.org/images/Videos/LibraryConnections-720p.mp4 to view a short video about the positive
impact libraries have on their communities.
SCCC INTERLIBRARY LOAN SERVICE: We are pleased to resume interlibrary loan services to the
Spring Creek Correctional Center! We've been working with SCCC staff to improve and update this unique
program that requires special treatment beyond the Alaska Library Catalog holds system due to the requirement
that books be in paperback format. The Seward Community Library & Museum supports the preservation of
intellectual freedom to the extent allowable for incarcerated individuals of all ages as much as our capacity and
resources allow.
We also donated some of our discarded magazines to the Seward Jail this spring to help update their small
collection of material. Thank you to the dedicated staff of each facility and for their service to our community
and state!!!
Daily MOVIE@2 PROGRAM UPDATE: As of 6/15/18,we've had 584 people view our Two Movies@2
Program, showing daily at 2pm, May 14-Sept 15,with a suggested $4 donation, featuring the Waves Over
Seward and the Iditarod National Historic Trail:A History movie. We're the only place in Alaska that shows
these special historic movies on a regular basis! We thank the Iditarod Historic Trail Alliance and the Seward
Community Library Association for giving us permission to show these movies to the public.
SUMMER READING PROGRAM UPDATE
As of 6/15/18,we have 202 people registered for the SRP!!! This includes 24 children up to 4 years, 99
children 5-12 years, 10 teens 13-17 years and 68 adults 18+years. 41 people have completed the first 10-hour
log and claimed their prize, 11 people have completed the second 10-hour log and 4 people have finished the
third 10-hour log. That's 560 hours of reading and 56 raffle tickets already! Don't stop reading, Seward!!!
"The best advice I ever got was that knowledge is power and to keep reading. "
David Bailey, author of Dr. Who
It's not too late to join this first-time community wide Summer Reading Program for all ages!! Stop by to
register. It's super easy with five 10-hour block reading logs over the summer. The last four are optional for
additional raffle tickets for the final grand prize drawings.
Final Grand Prize drawings will be held at the SRP CLOSING CELEBRATION, Saturday August,4tb,
1-3 pm.
Stop by the "What do you read?" Bulletin Board to see what Seward reads! Share your favorite books or
what you're reading right now. We have new books and material coming all summer long for all ages, so
"check them out" when you stop by.
4.
y;4
u
i
Many thanks to the Alaska State Library, the Seward Community Library Association and all of the local
businesses who have supported this year's Summer Reading Program!
8
The BEGINNING KITE MAKING WORKSHOP with Tim Morrow held on Tuesday, June 12 allowed
9 children to create their own kites out of a single piece of paper, a bit of tape, thread and apaperclip!
Great fun was had by all, especially when we tried them out at the park down the street. Yay for sunny
weather! This is the fourth year that Mr. Morrow has shared his craft and love for kite making with our
community. Thank you, Mr. Morrow!!!_
rib
A MODERATE KITE MAKING WORKSHOP with Tim Morrow will be held on Tuesday,July 24th,4-
6pm, in which participants will have a kite flying in the wind in two hours with simple house hold items. Space
is limited, so call 907-224-4082 to sign up today! Guaranteed fun for all ages!
The INTRO TO BELLY DANCING PROGRAM with Mary Ann Benoit on Thursday,June 14th was a
hit with 6 people learning the basics of American Tribal Style Belly Dancing known for its elaborate
costumes, beautiful steps, exciting music, and bringing people together.
An INTRO TO PERSIAN DANCE: QASHQAI SCARF DANCE PROGRAM with Mary Ann Benoit will
be held on Thursday,July 19th, 6:30-7:45 in the Community Room for anyone who wants to learn a folk
scarf dance of the Qashqai people from Southern Iran that celebrates the coming of spring. Be sure to wear
comfortable clothes to dance in!
Weekly SATURDAY MOVIE MATINEES will start on June 2nd 4:00pm-6:00pm ALL SUMMER
LONG! Every film will be a musical to compliment the Summer Reading Program. Call 907-224-4082 for the
upcoming selection.
June 23: Wizard of Oz
Saturday 4-6pm in The Community Room, Rated G
June 30: Grease
Saturday 4-6pm in The Community Room, Rated PG
9
Weekly LEGO CLUB at 4:00 pm- 5:30 pm throughout the summer! A new building challenge
is featured each week using our 20,000-piece LEGO collection!
LEGO CLUB
d�mry
I
♦Y
Wednesdays 4:00pm-5:00pm
Weekly LEGO Challenges ages 7-12
Duplo Creative Play for ages 7& under
Visit:239 6th Ave Phone:907.224.4082 Email:libmus@cityofseward.net
Weekly PLAY TIME, Saturday, 12pm-4pm in the Children's Room. Come enjoy the Children's area with
assorted books, coloring, games,puzzles, and toys in a wonderful space. This event is parent led and requires
parent supervision.
ELECTRIC
Number of new Job Orders started since Jan. 1, 2018: (18)
Construction season is upon us. If you would like to start a job order for new construction the process now starts
at the Electric Department. If you have any questions please call 224-4073.
Lagoon UG project is very near completion, all Townl and Town2 underground circuits were energized and the
overhead wires were taken down across the Dairy Hill intersection. The remaining power line removal will be
cheduled for a later date.
a "
S�
10
There was a "B" phase specific/partial outage of the Town2 circuit Wednesday between 9:24am and 10:27am
due to an undersized fuse at 4th and Monroe which was incapable of carrying the increased load of the Townl
circuit due to the lagoon project switching. The crew did an excellent job of finding and replacing the fuse in an
hour's time. A load study/fuse coordination study may be called for/recommended to help determine if we have
the right sized fuses in the right sequence/places.
1 I
1
Juliana Kaupu started Thursday Junel4th as Rebekah's temporary replacement
FINANCE
The finance department continues to work on the meter exchange project follow-up tasks, including identifying
remaining meters to be switched out, any meters that are not remotely reading and require manual reads, and
general project clean-up. We expect that this project will take the remainder of the summer to finalize but
overall, are pleased with the success of the project.
Staff expect to receive the initial draft of the CAFR this week to begin compiling our statistical information and
drafting the transmittal letter and other supplementary information. Once that information is available, if
Council wishes to set a work session to discuss year-end budget information prior to the auditor's presentation
of the year-end financials, we will be happy to facilitate the work session. It would be helpful to know what
Council members would like to focus on to allow for a more productive meeting. Meanwhile, the parties
continue to await completion by the State of Alaska, of the newly-required allocation of retirement system
healthcare liabilities, as our CAFR cannot be finalized until the State completes their remaining work. Once
that step is complete, the CAFR will be ready for presentation to Council and the public at a regularly-
scheduled Council meeting, as required by the City Code.
In the past month, the finance director has participated in meetings and/or training with the Seward Area
Hospice, SOS Pets (regarding new animal shelter planning), Alaska Retirement Management Board (state
retirement and pension board), Alaska Municipal League Investment Pool, Alaska Municipal League Joint
Insurance Association, and the Government Finance Officers Association.
In this off-budget year, the finance department has begun work on a draft set of financial policies and an update
of the City's long-range financial plan, which we hope to begin discussing with the City Council around
September.
11
Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2018-053
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE COMPETITIVE SALE OF THE
PROPERTY DESCRIBED AS WEST 1/2 OF LOTS 19 AND 20, BLOCK 30
ORIGINAL TOWNSITE OF SEWARD,TAX PARCEL ID NO.14813010,408
MADISON, FOR THE AMOUNT OF $40,052 TO MARY LUTZ IN
ACCORDANCE WITH SEWARD CITY CODE SECTION §7.05
WHEREAS,in 2012 and 2013,the City took possession through the tax foreclosure process,
the West 1/z of Lots 19 and 20, Block 30 Original Townsite of Seward located on the north side of
Madison Street between Fourth and Fifth Avenues in Seward; and
WHEREAS, the City obtained title to the property from the Kenai Peninsula Borough in
accordance with Non-Code Ordinance 2013-012, Section 2; and
WHEREAS, the Seward City Council passed Resolution 2016-053 on August 22, 2016,
authorizing the administration to abate,demolish and dispose of the structures and appurtenances on
the property, which was completed in 2017; and
WHEREAS,Non-Code Ordinance 2017-003 was introduced on September 25,2017,with
public hearing and enactment on October 9, 2017, authorizing disposal of the property by
competitive sealed bid at a minimum bid price of $36,700, reflecting the 2017 Kenai Peninsula
Borough property assessment on the land, considered to be lower than fair market value, but
covering the City's costs of property foreclosure and clean-up; and
WHEREAS,the City advertised for competitive sealed bids and received a single responsive
and responsible bid in the amount of$40,042 from Mary Lutz who included the required bid deposit
equal to 20%in addition to the remainder of the amount of the bid price totaling the full amount of
the bid, equal to $40,052, making it unnecessary to enter into a Purchase Agreement; and
WHEREAS, Seward City Code§7.05.125 requires that prior to disposition of areal property
interest by sealed bid,a public hearing shall be held,and SCC §7.05.145 determines an effective date
for real property disposition to be 30 days after passage and posting.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The Seward City Council determined by Non-Code Ordinance 2013-012 that it has
no public purpose for West 1/z of Lots 19 and 20, Block 30 Original Townsite of Seward.
Section 2. The Seward City Council authorized disposal of West 1/z of Lots 19 and 20,Block
12
CITY OF SEWARD,ALASKA
RESOLUTION 2018-053
30 Original Townsite of Seward with tax parcel ID number 14813010 located at 408 Madison, by
competitive sealed bid at a minimum bid price of$36,700 and the City received a single bid in the
amount of$40,052 from Mary Lutz.
Section 3. The Seward City Council finds it to be in the public interest to sell this parcel in
accordance with Non-Code Ordinance 2017-003,per the recitals stated above which are incorporated
herein as findings of the City Council, and the City Council authorizes the sale and transfer of this
property as is, where is, with no warranties, and for less than fair market value, to Mary Lutz.
Section 4. This resolution shall take effect thirty (30) days after approval.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 29t'
day of May, 2018.
THE CITY OF SEWARD, ALASKA
David Squires,Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Brenda J. Ballou, MMC
City Clerk
(City Seal)
13
Agenda Statement
Meeting Date: May 29, 2018
To: City Council
Through: Jim Hunt, City Mana
From: Kristin Erchinger, Finance Director
Agenda Item: Competitive Sale of 408 Madison (former D.E. Wood Property)
BACKGROUND & JUSTIFICATION:
The City assumed ownership through the tax foreclosure process of the West '/Z of Lots 19 and 30,
Block 30 Original Townsite Seward located on the north side of Madison Street between Fourth and
Fifth Avenues,in 2012/2013. The property was formerly owned by D.E. Wood and was foreclosed
on by the Kenai Peninsula Borough,after which the City obtained title in accordance with Section 2
of Non-Code Ordinance 2013-012.
The City Council passed Resolution 2015-053 on August 22,2016, authorizing the clean-up of the
property which was completed in 2017,and then enacted Non-Code Ordinance 2017-003 on October
9,2017,authorizing the property to be disposed of utilizing competitive sealed bids,for a minimum
price of$36,700.
The City advertised for competitive sealed bids both in newspapers and by posting a banner on the
property, and obtained a single bid in the amount of$40,042 from Mary Lutz, which is found to be
responsible and responsive, and the administration recommends sale of this parcel to Mary Lutz as
is, where is, and with no warranties.
INTENT:
To sell the property located at 408 Madison to Mary Lutz for the amount of$40,052 which amount
has been paid in full by purchaser.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan (p. 11 Community Appearance;p. 15 "Encourage
homeownership opportunities";p. 15 "Encourage construction on
1. vacant sites in areas of the city already established";p. 20 "Evaluate X
for disposal city-owned lands which have not been dedicated to a public
ur ose. '):
Strategic Plan (p. 9 "Encourage construction of residential housing..
2. p. 10 "Promote construction on vacant sites in established areas of the X
city. " P. 18 "Expand availability o ear-round housin ."
Other (Non-Code Ordinance 2013-012; Non-Code Ordinance 2017-
3' 003; Resolution 2016-053):
14
FISCAL NOTE:
The bid price on this property will be used to repay the City for incurred costs including, but not
limited to, the following: the foreclosure process, staffing and legal fees, property demolition,
asbestos abatement, disposal of debris and appurtenances, advertising,etc. Any funds in excess of
final project costs, will be handled in accordance with Alaska State law.
Approved by Finance Department:
ATTORNEY REVIEW: Yes X No Not Applicable
RECOMMENDATION: Council approve Resolution 2018-053 authorizing the competitive sale
of the property described as West 1/2 of Lots 19 and 20, Block 30 Original Townsite of Seward,
Tax Parcel ID No. 14813010 for the amount of$40,052 to Mary Lutz.
15
AFTER RECORDING RETURN TO:
City of Seward
P.O. Box 167
Seward, Alaska 99664
QUITCLAIM DEED
The Grantor, CITY OF SEWARD, ALASKA, a home rule municipal corporation of the
State of Alaska, whose address is P.O. Box 167, Seward, Alaska 99664, for and in
consideration of the sum of Ten Dollars ($10) and other good and valuable
consideration in hand paid, the receipt of which is hereby acknowledged, quitclaims to
Grantee, MARY LUTZ, whose address is PO Box 230311 Anchorage, Alaska 99523, all
of Grantor's right, title, and interest it has, if any, in the real property described as:
WEST '/2 OF LOTS 19 AND 20, BLOCK 30 ORIGINAL TOWNSITE OF
SEWARD, Plat No. S-1 , Seward Recording District, Third Judicial District,
State of Alaska, (KPB tax parcel no. 148-130-10) containing 0.07 acres
more or less.
TOGETHER WITH all the improvements thereon, if any, and all rights of the Grantor to
any and all hereditaments and appurtenances hereto, and
SUBJECT TO any taxes and assessments, exceptions, reservations, restrictions,
conditions, covenants, easements, rights-of-way, encroachments either of record or
ascertainable by physical inspection.
DATED this day of , 2018.
1
16
GRANTOR: CITY OF SEWARD
James Hunt, City Manager
STATE OF ALASKA )
) ss:
THIRD JUDICIAL DISTRICT )
The foregoing instrument was acknowledged before me this day of
. 2018, by James Hunt, City Manager of the City of Seward, an Alaska
municipal corporation, on behalf of the City.
Notary Public in and for Alaska
My commission expires:
2
17
Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2018-055
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,APPROVING AN AMENDED AND RESTATED 20 YEAR LEASE
WITH TWO FIVE-YEAR EXTENSIONS WITH ICICLE SEAFOODS FOR
LOTS 2A, 3A BLOCK 2 MARINA SUBDIVISION REPLAT NO. 96-28,
SEWARD,ALASKA
WHEREAS, Icicle Seafoods have been a large part of the Seward community for a long
time; and
WHEREAS, the City of Seward and Icicle Seafoods, entered into Lease No. RE-071 on
August 17, 1988, and since then the lease has been amended two times; and
WHEREAS, the current lease expires on August 17, 2018; and
WHEREAS,Icicle Seafoods has submitted a request to amend and restate their ground lease
with the City of Seward; and
WHEREAS, the city manager is authorized by Seward City Code §7.05.120 to negotiate
leases subject to council approval; and
WHEREAS,the City Manager and administration have negotiated a new 20-year Amended
and Restated lease with 2 five-year extensions with Icicle Seafoods which will,among other things,
incorporate standard lease language for City leases,which represent substantive changes to the lease
language as compared to the lease initially approved in 1988.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The City Council hereby approves a new lease for Lot 2A, 3A Block 2 Marina
Subdivision, Seward, Alaska, Replat No. 96-28 between the City of Seward and Icicle Seafoods,
expiring July 25, 2038, with 2 five-year options to extend, in substantial form as attached hereto.
Section 2. The City Manager is authorized to execute an amended and restated lease with
Icicle Seafoods.
Section 3. This resolution shall take effect thirty(30) days following approval and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 25t'
day of June, 2018.
18
Council Agenda Statement
Meeting Date: June 25, 2018 : 1`
To: Seward City Council
Through: Jim Hunt, City Manager
From: Norm Regis, Harbormaster
Ap-enda Item: Approving-an-Amended and Restated 20-. Lease y with_Icicle Seafoods—
BACKGROUND & JUSTIFICATION:
The Seward City Council approved the initial lease for Icicle Seafoods Inc, on August 17, 1988 for a thirty year
term with no options to extend. The initial lease was for 2.3 acres more or less; with Lease Amendment No. 1
dated July 11, 1988 combining all Icicle's leases into one for a total of 4.93 acres (214,804 sf) at a lease rate of
$.36 per square foot. In Lease Amendment No 2 the legal description was changed with a new replat and a
provision for Rent Payment Credits for Production and Employment was added. New appraisals have been done
every five years since. The latest appraisal was completed in 2015 with the new appraisal rate of$124,000.
The current lease (RE-071) will reach the end of its original term in August 2018. Icicle Seafoods has requested
a new thirty year ground lease per 17.13 (a, c). Icicle Seafoods has requested that the same rent credits f'or
production and employment be applied to the new lease. In the new lease the City agrees to the same production
credit, but has changed the employment credit to apply only to Alaska residents. Icicle agrees to this change.
Seward City Code §7.05.120 directs the City Manager to negotiate leases subject to council approval, and the
City Manager and administration have negotiated a new 20 year lease with two five year extension options. The
new lease incorporates standard lease language which has been added to all City leases since the original Icicle
lease was approved thirty years ago (i.e. lease appraisals; annual CPI rental adjustments, etc.).
INTENT:
City Council approve an Amended and Restated twenty-year lease with Icicle Seafoods with 2 additional 5-year
options to extend for Lot 2A, 3A Block 2 Marina Subdivision, Seward, Alaska Re lat No. 96.28..
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan: p 23/ 3.5.1.1 Encourage the growth and
I. development of an efficient, functional boat harbor that meets Seward's X
commercial and recreational needs
Strategic Plan: Page 6/Attract New Industry- Develop an aggressive
2 marketing campaign which highlights the X
diverse resources and quality of life that make Seward a great place
to live and establish a business or industry
3. Other: X
FISCAL NOTE: The current lease payment is $124,000, which could be reduced by no more than fifty percent
according to the amount of lease credits applied; the lease rate could also change wit the 2019 yearly CPI or
upon the new appraisal in 2020. Approved by Finance Department:
a
ATTORNEY REVIEW: Yes X No
RECOMMENDATION:
Approve City Council Resolution 2018- 055 authorizing a new 20 year lease with Icicle Seafoods in the
Seward Boat Harbor.
19
A
SEWARD FISHERIES \
G'
division of
ICICLE SEAFOODS, INC.
P.O.BOX 8
SEWARD, ALASKA 99664
(907)224-3381ICICLE,.
Fax(907)224-324-3285
February 21, 2017
Mr. Jim Hunt, City Manager
City of Seward
P.O. Box 167
Seward, AK 99664
RE: Ground Lease between City of Seward and Icicle Seafoods, Inc.
Contract No. RE-071
Dear Mr. Hunt:
I am writing in regard to the Ground Lease between the City of Seward and Icicle Seafoods, Inc.
dated as of July 11, 1988, as amended by that Lease Amendment No. 1 dated as of,tune 8, 1989,
and that Lease Amendment No. 2 effective dated ,January 1, 1999.
Although the lease is not scheduled to expire until August 2018, Icicle would like to begin the
process of getting a new lease in place. As you know, Lease Amendment No. 2 entitles us to
receive certain rent payment credits for production and employment and we are very interested in
maintaining those credits in the new lease.
We believe Icicle provides substantial benefit to the local economy and the Seward community
in general, and we very much appreciate the excellent working relationship that we have had
with the City for so many years. We respectively request that the City provide a draft lease to
get the renewal process started. Thank you for your consideration.
Sincerely,
ICICLE SEAFOODS, IN-�C.
Charles McEldowney
Seward Plant Manager
HOME OFFICE
4019 21 ST Avenue West • Seattle, WA 98199
P.O. Box 79003 • Seattle,WA 98119 •lel: 206-282-0988 • Fax: 206-282-7222
AMENDED AND RESTATED
LEASE AGREEMENT
between
CITY OF SEWARD, ALASKA
and
Icicle Seafoods Inc.
Effective Date: [ ]
4817-1371-2460v.14 0022769-000022
21
TABLE OF CONTENTS
ARTICLE 1 -LEASED LAND.................................................................................................... 1
1.1 Description of Leased Land.................................................................................... 1
1.2 Covenant of Quiet Enjoyment; Warranty of Title................................................... 2
1.3 Property Accepted................................................................................................... 2
1.4 Permits....................................................................................................................2
1.5 Platting....................................................................................................................2
1.6 Development of Leased Land.................................................................................. 3
1.7 Amendment and Restatement of Original Lease..................................................... 3
ARTICLE 2 -LEASE TERM...................................................................................................... 3
ARTICLE 3 -RENTAL RATE ................................................................................................... 3
3.1 Initial Rental Rate................................................................................................... 4
3.2 Rental Adjustments..................................................................................................4
3.3 Procedure for Rental Adjustment............................................................................4
3.4 Effect of Late Appraisal by CITY............................................................................4
3.5 Appraisal by LESSEE............................................................................................. 5
3.6 Effective Date of Adjusted Rental Rate................................................................... 5
3.7 Interim Rental Adjustments..................................................................................... 5
3.8 Rent Payment Credits for Production and Employment......................................... 6
3.9 Late Payment Charge ............................................................................................. 7
ARTICLE 4 -USE OF LEASED LAND .................................................................................... 7
4.1 Use of Leased Land................................................................................................. 7
4.2 Obligations ofLESSEE........................................................................................... 7
4.3 No Preferential Rights to Use Public Facilities ..................................................... 8
4.4 Adequacy of Public Facilities................................................................................. 8
4.5 Tariffs and Other Service Fees ............................................................................... 8
4.6 Time for Payment of Utilities and Taxes................................................................. 8
4.7 Other Uses .............................................................................................................. 8
4.8 Use of Public Docks and Port Facilities................................................................. 8
ARTICLE 5 -UTILITIES AND RIGHTS OF ACCESS.......................................................... 8
5.1 Utilities.................................................................................................................... 8
5.2 Third-Party Improvements...................................................................................... 9
5.3 Easements ............................................................................................................... 9
ARTICLE 6 - CONSTRUCTION BY LESSEE....................................................................... 10
6.1 Improvements on Leased Land............................................................................. 10
6.2 City Review of Construction ................................................................................. 11
ARTICLE 7 -RETURN OF LEASED LAND/SITE CONDITIONS.................................... 11
ARTICLE 8 -FORCE MAJEURE ........................................................................................... 11
ARTICLE 9 -LESSEE'S ACTS OF DEFAULT..................................................................... 11
ARTICLE 10 -REMEDIES FOR DEFAULT BY LESSEE .................................................. 13
ARTICLE 11 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE........................ 15
11.1 Real Property Improvements ................................................................................ 15
11.2 Personal Property................................................................................................. 15
4817-1371-2460v.14 0022769-000022 1
22
ARTICLE 12 -ASSIGNMENT OR SUBLEASE .................................................................... 15
12.1 Assignment of Lease or Subleasing....................................................................... 15
12.2 Assignment of Lease for Security.......................................................................... 15
12.3 Assignment to Affiliate.......................................................................................... 16
12.4 Assignment or Encumbrance by City.................................................................... 17
ARTICLE 13 -LESSEE'S DUTY TO DEFEND/INDEMNIFY ............................................ 17
ARTICLE 14 - CITY'S DUTY TO DEFEND/INDEMNIFY ................................................. 17
ARTICLE 15 -INSURANCE .................................................................................................... 17
15.1 Minimum Insurance Requirements....................................................................... 17
15.2 Subrogation Rights Waived................................................................................... 19
15.3 Restoration of Buildings and Improvements......................................................... 19
ARTICLE 16 - CONDEMNATION.......................................................................................... 20
ARTICLE 17 -ARBITRATION ............................................................................................... 20
17.1 Arbitration............................................................................................................. 20
ARTICLE 18 -MAINTENANCE AND REPAIRS................................................................. 21
18.1 Normal Maintenance ............................................................................................ 21
18.2 Safety Issues..........................................................................................................22
18.3 Cost of Repairs......................................................................................................22
ARTICLE 19 -ENVIRONMENTAL CONCERNS................................................................ 22
19.1 Hazardous Materials ............................................................................................ 23
19.2 Permits and Reporting.......................................................................................... 25
ARTICLE 20 -ESTOPPEL CERTIFICATES........................................................................ 25
ARTICLE 21 - CONDITIONS AND COVENANTS .............................................................. 26
ARTICLE 22 -NO WAIVER OF BREACH ........................................................................... 26
ARTICLE 23 - TIME OF THE ESSENCE.............................................................................. 26
ARTICLE 24 - COMPUTATION OF TIME........................................................................... 26
ARTICLE 25 - SUCCESSORS IN INTEREST.......................................................................26
ARTICLE 26 -ENTIRE AGREEMENT ................................................................................. 26
ARTICLE 27 - GOVERNING LAW........................................................................................ 26
ARTICLE 28 -PARTIAL INVALIDITY................................................................................. 27
ARTICLE 29 -RELATIONSHIP OF PARTIES .................................................................... 27
ARTICLE 30 -INTERPRETATION ....................................................................................... 27
ARTICLE 31 - CAPTIONS ....................................................................................................... 27
ARTICLE 32 -AMENDMENT................................................................................................. 27
ARTICLE 33 -NOTICES..........................................................................................................27
ARTICLE 34 -FIRE PROTECTION FOR LEASED LAND................................................ 28
EXHIBIT A
4817-1371-2460v.14 0022769-000022 11
23
AMENDED AND RESTATED LEASE AGREEMENT
THIS AMENDED AND RESTATED LEASE AGREEMENT (the "LEASE") is
made by and between the CITY OF SEWARD (the "CITY"), a municipal corporation located
in the Kenai Peninsula Borough, State of Alaska, whose mailing address is P.O. Box 167,
Seward, Alaska 99664 and Icicle Seafoods Inc. (the "LESSEE"), an Alaska corporation whose
mailing address is P.O. Box 79003, Seattle, Washington 98119.
WHEREAS, LESSEE is currently occupying the Leased Land (as defined in Section 1.1
below) pursuant to various leases and most recently pursuant to that certain Ground Lease
(Contract No. RE-071), dated July 11, 1988, as amended by Lease Amendment No. 1 dated June
8, 1989, and by Lease Amendment No. 2 (RE-071) effective as of January 1, 1999, as evidenced
by a Memorandum of Lease and Lease Termination recorded August 23, 1988, in Book 51 at
Page 954, and Memorandum of Lease Amendment recorded July 19, 1989 in Book 55 at Page
210 and by Lease Amendment No. 2 recorded April 4, 2000 in Book 100 at Page 127, all in the
Seward Recording District, Third Judicial District, State of Alaska (collectively, the
"ORIGINAL LEASE") and desires to continue to lease the Leased Land; and
WHEREAS, the City Council of CITY has determined that a continued lease of the
Leased Land (as defined below) to LESSEE for the purposes described herein would be in the
public interest; and
WHEREAS, pursuant to this LEASE, CITY and LESSEE desire to amend and restate
the ORIGINAL LEASE in its entirety; and
WHEREAS, neither CITY nor LESSEE intends that anything in this LEASE shall be
construed as a novation of the ORIGINAL LEASE, and this LEASE shall not affect a novation
of the ORIGINAL LEASE; and
WHEREAS, it is the intent of this LEASE to transfer from CITY to LESSEE the entire
burden of compliance with environmental regulations or controls with respect to LESSEE's
operations on the Leased Land.
NOW THEREFORE, for and in consideration of the mutual promises and covenants
hereinafter contained, the parties hereto agree as follows:
ARTICLE 1 -LEASED LAND
1.1 Description ofLeased Land. The Leased Land is located in the City of Seward, Alaska.
The Leased Land is described as follows:
Lots 2A and 3A, Block 2, MARINA SUBDIVISION, BLOCK TWO REPLAT, as shown
on Plat 96-28, Seward Recording District, Third Judicial District, State of Alaska,
consisting of approximately 4.93 acres or 214,804 square feet, more or less (the "Leased
Land") (Tax Parcel ID 145-240-15-LHO1).
4817-1371-2460v.14 0022769-000022 1
24
The Leased Land is also depicted on the attached Exhibit A, which is incorporated herein
by reference.
1.2 Covenant of Quiet Enjoyment; Warranty of Title. Subject to the encumbrances as of the
date hereof, any appurtenant easements or rights of way, and 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 Property Accepted "As-is." LESSEE acknowledges that it has inspected the Leased Land
and accepts the same "as-is" and without reliance on any expressed or implied
representations or warranties of CITY (other than the representations in Section 1.2
hereof), or agents of CITY, as to the actual physical condition or characteristics thereof
and the legal description or depiction of the Leased Land in Section 1.1 or Exhibit A
hereto.
1.4 Permits. LESSEE, at its sole cost, shall obtain all permits necessary to the construction
and operation of its facilities on the Leased Land. CITY may from time to time, upon
request of LESSEE, execute such documents, petitions, applications, and authorizations
as may be necessary, as the underlying fee owner, to file with an agency or public body
responsible therefor an application for conditional use permits, zoning and re-zoning,
tentative and final tract approval, or precise plan approval that may be required for the
lawful construction and operation of the facilities of LESSEE permitted on the Leased
Land by the terms of this LEASE. However, nothing in this Section shall be construed as
requiring CITY to support or approve any such application or permit requests. If the
agency or public body responsible to approve or grant such application or permit request
is a City of Seward agency, department, or board, LESSEE shall follow all City of
Seward procedures, the same as any other applicant making similar requests of the City
of Seward, according to the Charter, ordinances, resolutions, or any regulation, rules, or
procedures of the City of Seward. Nothing in this Section imposes any duty or
responsibility on CITY to assist LESSEE in obtaining any other permits or approvals,
including without limitation those required by the U.S. Army Corps of Engineers (e.g.,
wetland fill permits), the Environmental Protection Agency (e.g., Clean Air Act permits),
the Alaska Department of Public Facilities and Transportation (e.g., right-of-way
permits), the Alaska Department of Fish and Game, and the Alaska Department of
Environmental Conservation.
1.5 Platting. If LESSEE requests a replat of the Leased Land, 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. In the event CITY elects to
replat, LESSEE agrees to sign the plat and any other documents necessary to complete
the platting or replatting of any area including all or a portion of the Leased Land.
LESSEE shall accept reasonable restrictions, easements, or plat notes as may be required
by CITY or other governmental authorities as a condition to filing the plat of the Leased
Land or the plat of CITY-owned real property adjacent to the Leased Land.
4817-1371-2460v.14 0022769-000022 2
25
1.6 Development ofLeased Land. LESSEE shall continue to operate a fish processing
facility, a cold storage facility, a meal plant facility, and other uses necessary and
incidental to the foregoing, through the term of this LEASE. LESSEE understands that
construction and operations of its marine-related business is a major consideration for the
CITY's agreement to lease the Leased Land to LESSEE. LESSEE shall not operate any
other unrelated business on the Leased Land without the consent of the CITY.
a) CITY may withhold its consent as to any proposed business or activity which, in
CITY's sole discretion, is not desirable or compatible with the CITY's operation of
the Seward Boat Harbor.
b) In accordance with the provisions of Article 12, no assignment or sublease shall be
permitted, unless approved in writing by CITY. Any sublease shall be expressly
subject and subordinate to this Lease and the rights of the CITY hereunder. The CITY
may elect to not approve any proposed assignment or sublease that might result in a
business or activity that, in the CITY's sole discretion, is undesirable and/or
incompatible with the CITY's Comprehensive Plan.
1.7 Amendment and Restatement of Original Lease. To accommodate LESSEE'S existing
financing, this LEASE amends and restates in its entirety the ORIGINAL LEASE. This
LEASE does not evidence a termination of LESSEE's leasehold interest in, nor a re-
leasing of, the LEASED LAND. Such leasehold interest of the LESSEE in and to the
Leased Land pursuant to the ORIGINAL LEASE shall be continuing in all respects, as
amended and restated by this LEASE. The parties do not intend for this LEASE to be a
novation of the ORIGINAL LEASE, and this LEASE shall not affect a novation of the
ORIGINAL LEASE.
ARTICLE 2 -LEASE TERM
The term of this LEASE (the "Lease Term") shall be in accordance with CITY's
authorization in Resolution No. 2018- (the "Resolution"). The Lease Term shall commence
on the date this LEASE is signed by CITY and that date shall be the effective date of this
LEASE (the "Effective Date"). The Lease Term shall run for approximately 20 years from the
Effective Date, ending at midnight on December 31, 2037. LESSEE shall have the right to
extend the term of this LEASE for 2 additional 5-year periods,provided that:
a) LESSEE exercises its option to extend at least one hundred and eighty (180) days
prior to the expiration of the then current lease term;
b) LESSEE is not in default under any term or provision of this LEASE;
c) LESSEE shall exercise its options to extend by sending written notice in
accordance with the provisions of Article 33 of this LEASE; and
d) The City Council, at the time this option is exercised, approves the extension by
resolution or ordinance.
ARTICLE 3 -RENTAL RATE
4817-1371-2460v.14 0022769-000022 3
26
3.1 Initial Rental Rate. Commencing on the Effective Date of this LEASE the annual rental
rate for the Leased Land shall be set at $124,000. Rent shall be payable quarterly in
advance upon the Effective Date of this Lease (prorated for the balance of the current
quarter) and thereafter on or before the 20th day of the month beginning each calendar
quarter: January 20, April 20, July 20 and October 20. The amount of each quarterly
payment shall be one-quarter of the annual rental rate as initially established or later
adjusted under this Article 3.
3.2 Rental Adjustments. The annual rental payment shall be adjusted on July 1, 2020, and on
the same date every five years thereafter (each a "Rental Adjustment Date"). The
adjusted annual rental payment to be paid under the terms of this Lease shall be the
appraised fair market rental value (the "Fair Market Rental Value") of the Leased Land at
the highest and best use of the Leased Land. The highest and best use of the Leased Land
shall be determined without regard to LESSEE's intended or actual use of the Leased
Land unless that use is coincidentally the highest and best use of the Leased Land. CITY
shall complete such appraisal and deliver a copy of the appraisal report to LESSEE not
less than ninety (90) days before each Rental Adjustment Date.
3.3 Procedure for Rental Adjustment. To adjust the rent as of any successive Rental
Adjustment Date, CITY shall, at its own expense, retain an independent State of Alaska
certified MAI appraiser (Member, Appraisal Institute), who shall determine the "Fair
Market Rental Value" of the Leased Land in accordance with this Article 3, exclusive of
improvements placed thereon by LESSEE at any time but inclusive of all improvements
made by CITY (including those made by CITY before or subsequent to this LEASE).
The appraiser's report shall be delivered to LESSEE not less than ninety (90) days before
the Rental Adjustment Date. The appraiser's determination of Fair Market Rental Value
of the Leased Land shall constitute a final binding determination of the Fair Market
Rental Value and the adjusted annual rental rate until the next Rental Adjustment Date,
unless LESSEE objects to CITY's appraiser's determination of the Fair Market Rental
Value. In that case, LESSEE shall give written notice to CITY of its objection within
thirty (30) days of receipt of the appraiser's report, and LESSEE shall then engage an
independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at
LESSEE's expense to make an appraisal of the Fair Market Rental Value in accordance
with this Article 3.
If LESSEE's appraisal determines a Fair Market Rental Value that varies from that
determined by CITY's appraisal by no more than twenty percent (20%), then the adjusted
rental rate shall be the average of the rental rates determined by the two appraisals. If
LESSEE's appraisal determines a Fair Market Rental Value that varies from CITY's
appraisal by more than twenty percent (20%), then, unless CITY and LESSEE agree on a
rate themselves, the adjusted annual rental rate of the Leased Land shall be determined in
accordance with the arbitration provisions contained in Article 19 of this LEASE.
3.4 Effect of Late Appraisal by CITY. If, for any reason, CITY does not complete the
appraisal or deliver a copy of the appraisal report to LESSEE ninety (90) days before the
Rental Adjustment Date, CITY may proceed to complete the appraisal or deliver a copy
4817-1371-2460v.14 0022769-000022 4
27
of the appraisal report to LESSEE at any time thereafter. However, any such adjusted
annual rental rate shall not be effective until the quarterly payment due date immediately
following the date CITY delivers the appraisal report to LESSEE.
3.5 Appraisal by LESSEE. If, for any particular Rental Adjustment Date, CITY fails to
obtain an appraisal of the Fair Market Rental Value or fails to deliver the appraisal report
to the LESSEE by the Rental Adjustment Date, LESSEE may engage an independent
State of Alaska certified MAI appraiser (Member, Appraisal Institute) at LESSEE's
expense to make an appraisal under the terms of this Article 3 and submit a copy to CITY
before the next quarterly rental payment due date. However, LESSEE must notify CITY
in writing within thirty (30) days following the Rental Adjustment Date of LESSEE's
election to obtain an appraisal. If CITY objects to LESSEE's appraiser's determination of
the Fair Market Rental Value, CITY shall give written notice to LESSEE of its objection
within thirty (30) days of receipt of the appraiser's report, and CITY shall then engage an
independent State of Alaska certified MAI appraiser (Member, Appraisal Institute) at
CITY's expense to make an appraisal of the Fair Market Rental Value as of the Rental
Adjustment Date and in accordance with this Article 3. If the CITY's appraisal
determines a Fair Market Rental Value that varies from that determined by LESSEE's
appraisal by no more than twenty percent (20%), then the adjusted rental rate shall be the
average of the rental rates determined by the two appraisals. If the CITY's appraisal
determines a Fair Market Rental Value that varies from LESSEE's appraisal by more than
twenty percent (20%), then, unless CITY and LESSEE agree on a rate themselves, the
adjusted annual rental rate of the Leased Land shall be determined in accordance with the
arbitration provisions contained in Article 19 of this LEASE.
3.6 Effective Date of Adjusted Rental Rate. The adjusted annual rental rate established by
this Article 3 shall apply as of the Rental Adjustment Date if CITY provided a copy of
the appraisal report to LESSEE no later than ninety (90) days before the Rental
Adjustment Date. If the adjusted annual rental rate is based on CITY's late appraisal or
late delivery of the appraisal report to LESSEE, the adjusted rental rate shall be effective
beginning with the quarterly rental payment due date immediately following the date the
CITY delivers the appraisal report to LESSEE. Notwithstanding the above, the exercise
by either CITY or LESSEE of the objection procedure relating to rental adjustment
described in this Article 3 shall not postpone LESSEE's obligation to pay rent at the rate
established by CITY. LESSEE shall pay the amount of rent as established or adjusted by
CITY until the question of objection to the rental rate is finally resolved. At such time
the objection to the rental rate is resolved, an appropriate credit or adjustment shall be
made retroactive to the date the new rental rate was established by CITY or in cases
where CITY failed to obtain an appraisal or deliver the appraisal report to the LESSEE,
to the Rental Adjustment Date.
3.7 Interim Rental Adjustments. For each year in the period between each Rental Adjustment
Date, excepting the Rental Adjustment Dates, the annual rental payment shall be
increased beginning July 1, 2019 and on July 1 of every year thereafter (each an "Interim
Rental Adjustment Date") in an amount that reflects the increase, if any, in the cost of
living for the previous year as stated in the Consumer Price Index, All Urban Consumers,
4817-1371-2460v.14 0022769-000022 5
28
Anchorage, Alaska Area, All Items 1967=100 ("CPI"), as published by the United States
Department of Labor, Bureau of Labor Statistics for the most recent period published
immediately prior to the Interim Rental Adjustment Date. In no event shall the rent be
less than the previous year. If the CPI is revised or ceases to be published, the CITY
shall instead use such revised or other index as most nearly approximates the CPI for the
relevant period and make whatever adjustment in its application as may be necessary, in
the CITY's sole discretion, to accomplished as nearly the same result as if the CPI had not
been revised or ceased to be published.
3.8 Rent Payment Credits for Production and Employment. Provided that Lessee is not in
default of any Lease provisions and is current in all other payments to City, Lessee shall
be allowed as a credit against regular annual rent payable under Sections 3.1, 3.2 and 3.7
hereof (Regular Rental Rate), certain rent payments credits for production and
employment at the Leased Land. The Lessee shall be entitled to receive credits as
follows:
(a) Production Credit. Lessee may deduct from Regular Rent payment due
during a calendar year, a rent payment credit for processing fisheries resources
at the Leased Land during the immediately preceding calendar year. The rent
payment credit shall equal $.50 per ton of all fisheries resources delivered to
the Leased Land by land or water or from within or outside of the City of
Seward, Alaska.
(b) Employment Credit. Lessee may deduct from the regular rent payment due
during a calendar year, a rent payment credit for employment at the Leased
Land during the immediately preceding calendar year. The rent payment
credit shall equal $.25 per hour for each Alaska resident employee hour
worked at the Leased Land which exceeds a base annual employment level of
25,000 employee hours. Only hours actually worked by Lessee's non-salaried,
Alaska resident hourly paid employees shall be considered. All employee time
must be for Alaska resident employees of Lessee who are actively engaged in
work on behalf of Lessee at the Leased Land. City shall have the right to
verify Lessee's compliance with provisions of this Article by being provided
quarterly certified payroll records showing the hours worked by Lessee's
Alaska resident employees at the Leased Land.
(c) Alaska Resident Determination. Alaska resident status shall be determined by
Alaska driver's license, Alaska resident fishing license, Alaska PFD recipient
or an employee's Alaska resident address listed on previous years Federal Tax
form.
(d) Provisions Governing Use of All Rent Payment Credits. Rent payment credits
shall be applied only against the Regular Rent due for each calendar year as
otherwise computed under the terms of Lease sections 3.1 and 3.2 hereof, as
such rental rate may be adjusted from time to time. Rent payment credits shall
not be applied to any additional rent described in section 3.9 hereof, taxes
4817-1371-2460v.14 0022769-000022 6
29
assessments, utilities, other lease obligations paid by City on Lessee's behalf,
late Regular Rental payments not timely made in the calendar year in which
they were due, or late payment penalties. Final determination of the
availability and amount of rent payment credits shall be in the sole reasonable
discretion of City.
Rent payment credits may be used in any combination; provided however, in
no event shall the total of credits used in any one calendar year exceed 50% of
the annual Regular Rent payments due for a calendar year or $75,000,
whichever is less. Rent payment credits shall not be carried forward from year
to year.
Rent payment credits shall not be earned during the final calendar year of the
lease term whether the lease has expired by its terms or is terminated by either
party to the lease.
3.9 Late Payment Charge. Rental payments not received by the due date shall bear interest
until paid at a rate of 10.5% per annum, or the maximum rate permitted under Alaska
law, whichever is less, plus a flat monthly late fee of $2.50, or such amount as may be
established from time to time by CITY ordinance or resolution and relating to late fees
for CITY leases generally.
ARTICLE 4 -USE OF LEASED LAND
4.1 Use ofLeased Land. CITY has limited land available for lease. Use of the Leased Land
by LESSEE has been determined by the City Council of CITY to be in the public interest.
LESSEE may use the Leased Land for fish processing, cold storage, meal plant and other
marine oriented business.
4.2 Obligations of LESSEE. LESSEE may use the Leased Land only in accordance with
applicable CITY zoning code provisions and provided the following conditions are met:
a) The Leased Land is to be completely cleaned and restored to its original
condition, that is, the condition existing prior to this LEASE or in better condition
upon termination of this LEASE.
b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of Hazardous
Materials on the Leased Land except as permitted in Article 19 of this LEASE.
c) LESSEE shall not use the Leased Land in any manner or construct any facilities
thereon which would inhibit the use of adjacent or other lands.
d) LESSEE shall operate a fish processing, cold storage, meal plant and other marine
oriented business on the Leased Land.
e) Any changes to this site require prior CITY approval, through the City Manager.
4817-1371-2460v.14 0022769-000022 7
30
4.3 No Preferential Rights to Use Public Facilities. This LEASE does not grant to LESSEE
any exclusive rights to use any public port facilities constructed or operated by CITY.
LESSEE will be subject to any tariffs, procedures, rules, and regulations of CITY
concerning the use of such facilities as they may now exist or from time to time be
amended, and LESSEE shall not be entitled to any exclusive use.
4.4 Adequacy of Public Facilities. CITY makes no representations or warranties as to the
fitness of any particular part or the whole of CITY's public facilities for the uses intended
by LESSEE, and LESSEE has inspected those facilities and has satisfied itself that the
facilities are sufficient for the intended uses by LESSEE. CITY makes no representations
or warranties of any nature with respect to the commercial practicability or accuracy of
any information provided by CITY.
4.5 Tams and Other Service Fees. CITY shall have the right to make amendments to its
tariffs, regulations, and scheduled fees from time to time, even if those adjustments shall
cost LESSEE more for its operations or use of public facilities, and CITY is free to do so
provided only that it does not impose any greater burden or higher rate upon LESSEE
than upon any other similar user of the public facilities.
4.6 Time for Payment of Utilities and Taxes. LESSEE will pay for utilities and taxes related
to operations on the Leased Land and LESSEE's interest in this LEASE and
improvements thereon, if any, before such obligations become delinquent; provided that
LESSEE may, in good faith and before such delinquency, contest any such charge or
assessment.
4.7 Other Uses. This LEASE shall not preclude the CITY from actively seeking other and
additional tenants for space, including those who would be in competition with LESSEE
or who might be interested in leasing the Leased Land should this LEASE be terminated
for any reason.
4.8 Use of Public Docks and Port Facilities. Public docks are subject to port and harbor
rules and regulations as adopted by City Council.
ARTICLE 5 -UTILITIES AND RIGHTS OF ACCESS
5.1 Utilities. LESSEE, at LESSEE's sole cost and expense, shall provide for the extension of
public utilities to the Leased Land required for LESSEE's intended operations. In so
doing, LESSEE shall comply with all CITY regulations and requirements, and the tariffs
of the affected utilities, with respect to the construction of those utilities. CITY agrees to
cooperate and assist the LESSEE, through consultation and review, in LESSEE's
planning and engineering of those improvements. All utilities will be located and sized
in accordance to CITY's Master Plan for the area leased. All such construction shall be in
compliance with all applicable building, mechanical and fire codes. Utilities constructed
by the LESSEE within the public right-of-way or within public utility easements will
normally be accepted and maintained by CITY or utility companies and may be used to
4817-1371-2460v.14 0022769-000022 8
31
serve other customers of CITY's without payment of fees or reimbursement of
construction cost to the LESSEE. However, this does not preclude several lessees from
agreeing to share the cost of constructing a utility to serve their facilities. CITY or other
utility company may determine that it would be to their benefit to oversize the utility or
install special fittings or equipment in order to serve other existing or future users. The
additional direct costs of such oversizing shall be borne by CITY or other utility
company. Such costs shall be limited to the supplier's cost of the additional fittings,
equipment, direct labor, and equipment costs to complete the installation. The costs of
oversizing pipe or electrical conduit shall be limited to the difference between the
supplier's price to provide the size required to serve LESSEE's facility and the price of
the oversized material required by CITY or utility company.
LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent,
investment, or costs incurred by LESSEE with respect to any required permits for
construction or operation of LESSEE's facilities on the Leased Land, it being the intent of
the parties that the risk of obtaining required permits be solely a risk undertaken by
LESSEE.
5.2 Third-Party Improvements. At the request of LESSEE, CITY shall, from time to time,
execute and deliver, or join in execution and delivery of, such documents as are
appropriate, necessary, or required to impose upon the Leased Land in accordance with
the terms of this LEASE covenants, conditions, and restrictions providing for the granting
of uses of the Leased Land, or any part thereof, the establishment of party walls, the
establishment of mutual and reciprocal parking rights or rights of ingress or egress, or
other like matters (herein called "third-party improvements"), all of which are for the
purpose of the orderly development of the Leased Land as a commercial unit subject,
however, to the conditions that:
a) All such matters shall be limited to the Lease Term and shall terminate upon
termination of this LEASE for whatever reason.
b) Any such matters of a permanent nature extending beyond the Lease Term shall
not be granted without the prior written approval of CITY. In any of the
foregoing instances referred to in this Section, CITY shall be without expense
therefor, and the cost and expense thereof shall be borne solely by LESSEE.
c) At the expiration of the Lease Term (including any extended period) third-party
improvements on the Leased Land other than trade fixtures and equipment shall
become the property of CITY without the payment of any compensation to
LESSEE.
5.3 Easements. In order to provide for the orderly development of the Leased Land and
adjacent lands, it may be necessary, desirable, or required that street, railroad, water,
sewer, drainage, gas, power line, and other easements and dedications and similar rights
be granted or dedicated over or within portions of the Leased Land. As additional
consideration for this LEASE, CITY and LESSEE each shall, at the request of the other,
4817-1371-2460v.14 0022769-000022 9
32
join with each other in executing and delivering such documents from time to time and
throughout the Lease Term as may be appropriate, necessary, or required by the several
governmental agencies (including the City of Seward), public utilities, and other users or
tenants of CITY land for the purpose of granting such easements and dedications;
provided, however, that such easements and dedications and similar rights do not
unreasonably interfere with LESSEE's operations. The costs of locating or relocating any
public easements or restrictions of record including any relocation of public road,
railroad, utility, or other easements shall be at the sole cost and expense of the party
requesting the relocation. CITY shall not refuse reasonable requests for such relocations
provided those relocations do not interfere with or inhibit the overall development of
CITY property or other public property. Any easements or rights of access granted to
LESSEE by CITY need not be exclusive to LESSEE.
ARTICLE 6 - CONSTRUCTION BY LESSEE
6.1 Improvements on Leased Land. LESSEE shall have the right to erect, maintain, alter,
remodel, reconstruct, rebuild, build, and/or replace buildings and other improvements on
the Leased Land, subject to the following conditions:
a) The cost of any construction, reconstruction, demolition, or of any changes,
alterations, or improvements, shall be borne and paid for by LESSEE.
b) The Leased Land shall at all times be kept free of mechanic's and materialmen's
liens.
c) LESSEE shall provide CITY with a copy of all building plans and specifications
and a site development plan or plans (based on a recent survey) for the Leased
Land prior to commencement of construction.
d) LESSEE is solely responsible for resurveying and locating improvements on the
Leased Land in such manner not to violate building setback requirements or
encroach into rights-of-ways or easements. On completion of any improvements,
LESSEE shall provide CITY a copy of an as-built survey depicting the
improvements as completed on the Leased Land.
e) Any general contractor employed by LESSEE shall be appropriately bonded by
use of performance and labor and material payment bonds in the customary form
when cost of the work is equal to or exceeds FIFTY THOUSAND DOLLARS
($50,000). Copies of all such bonds shall be furnished to CITY prior to
commencement of construction. If the cost of the work is less than FIFTY
THOUSAND DOLLARS ($50,000), LESSEE shall provide CITY, if no
performance and labor and material bonds are provided by LESSEE, any
necessary assurances or guarantees that the contemplated work will be performed
by the general contractor or by LESSEE. hi the event that LESSEE elects to
construct the facility with its own personnel and equipment, or the personnel and
equipment of any corporation or person that is an "affiliate" of LESSEE as such
4817-1371-2460v.14 0022769-000022 10
33
term is defined in AS 10.06.990(2) or Alaska limited liability company in which
LESSEE maintains a substantial membership interest, a performance bond shall
be required when the cost of the work is equal to or exceeds FIFTY THOUSAND
DOLLARS ($50,000).
f) CITY may, as contemplated by Alaska Statutes, give notice of non-responsibility
for any improvements constructed or effected by LESSEE on the Leased Land.
g) LESSEE shall comply with all federal, state, and local statutes and regulations
with respect to such construction, including, but not limited to, all applicable
building, mechanical, and fire codes.
6.2 City Review of Construction. CITY shall have the right to review initial plans, including
those supplied to CITY under Section 6.1 hereof, and any future changes or additions to
LESSEE's facilities on the Leased Land, by reviewing the design thereof prior to the
commencement of construction. CITY shall have the right to comment upon that design
and to require LESSEE to make reasonable changes so as to avoid interference with
public operations, but the exercise of these rights shall not imply any obligation to do so
nor any obligation to do so in a particular way. LESSEE shall construct the facility in
accordance with final design specifications approved by CITY. CITY's representatives
may monitor the work and shall have access to the site at all reasonable times. LESSEE
shall be solely responsible for completing all improvements according to LESSEE's plans
and specifications and shall bear all risk, responsibility, and liability for properly
surveying the Leased Land before construction and to place all improvements on the
Leased Land without encroaching upon any land, easements, rights-of-way, or setback
requirements. LESSEE shall obtain the usual and customary performance guarantees
from its contractors, and CITY shall be named as an additional insured.
ARTICLE 7 -RETURN OF LEASED LAND/SITE CONDITIONS
Subject to the provisions of Article 11.1 herein, upon termination of this LEASE for any
reason, LESSEE shall return the Leased Land to CITY in the same condition as at the
commencement this LEASE, subject to normal, non-abusive use. The Leased Land shall be free
of all Hazardous Materials and contamination arising out of or resulting from or occurring during
LESSEE's operations or use of the Leased Land during this LEASE.
ARTICLE 8 -FORCE MAJEURE
In the event either LESSEE or CITY is delayed from performance of any of its
obligations under this LEASE due to acts of nature, acts of the enemies of the United States of
America, sabotage, blockade, insurrection, riot, epidemic, fire, flood, explosion,
earthquake/tsunami, civil disturbance, or war, the time period wherein such performance is to
occur shall be extended by that amount of time necessary to compensate for the delay.
ARTICLE 9 -LESSEE'S ACTS OF DEFAULT
4817-1371-2460v.14 0022769-000022 11
34
Each of the following shall be a "LESSEE Act of Default" under this LEASE and the
terms "acts of default" and "default" shall mean, whenever they are used in this LEASE, any one
or more of the following events:
9.1 Failure by LESSEE to pay promptly when due, and in no event later than twenty (20)
days from the due date thereof, the rent required to be paid under this LEASE.
9.2 Failure by LESSEE to comply with Section 4.1 of this LEASE for a period of thirty (30)
days after written notice specifying such failure, requesting that it be remedied, and
stating that it is a notice of default, has been given to LESSEE by CITY; provided,
however, that if said default is such that it cannot be corrected within the applicable
period, it shall not constitute an act of default if corrective action is instituted by LESSEE
within the applicable period and diligently pursued until the default is corrected.
9.3 Failure by LESSEE to observe, fulfill or perform any covenants, conditions, or
agreements on its part to be observed or performed under this LEASE, other than
payment of rent or compliance with Section 4.1, for a period of thirty (30) days after
written notice specifying such failure, requesting that it be remedied, and stating that it is
a notice of default, has been given to LESSEE by CITY; provided, however, that if said
default is such that it cannot be corrected within the applicable period, it shall not
constitute an act of default if corrective action is instituted by LESSEE within the
applicable period and diligently pursued until the default is corrected.
9.4 The making by LESSEE of an assignment for the benefit of creditors, the filing of a
petition in bankruptcy by LESSEE, the adjudication of LESSEE as insolvent or bankrupt,
the petition or application by LESSEE to any tribunal for any receiver or any trustee for
itself or for any substantial part of its property; or the commencement of any proceeding
relating to LESSEE under any bankruptcy, insolvency, reorganization, arrangement, or
readjustment of debt law or statute or similar law or statute of any jurisdiction, whether
now or hereafter in effect which shall remain undismissed for a period of six (6) months
from the date of commencement thereof.
9.5 Violation by LESSEE of any laws or regulations of the United States, or of the State of
Alaska, or any conditions of any permits issued by agencies of the City of Seward, the
Kenai Peninsula Borough, the State of Alaska, or of the United States Government
applicable to LESSEE's use of the Leased Land, pursuant to the regulations of such
agencies, for a period of sixty (60) days after written notice specifying such violation has
been given by the agency charged with the enforcement of such laws, regulations, or
permits to LESSEE; provided, however, if such violation be such that it cannot be
corrected within the applicable period, it shall not constitute an act of default if corrective
action is instituted by LESSEE within the applicable period and diligently pursued until
the violation is corrected. Furthermore, if LESSEE shall contest such alleged violation
through appropriate judicial or administrative channels, the time period specified herein
shall not commence until such proceedings are finally determined provided such
proceedings are diligently pursued; provided, however, that any such extension of time
shall not be effective if the effect of the interim administrative or judicial action is to
4817-1371-2460v.14 0022769-000022 12
35
cause a stoppage, interruption, or threat to the activities of any person or entity other than
those of LESSEE.
9.6 Failure of LESSEE to maintain its operations within the Leased Land or to keep the
public rights of way clear for a period of thirty (30) days after written notice specifying
such failure, requesting that it be remedied, and stating that it is a notice of default, has
been given to LESSEE by CITY; provided, however, that if said default is such that it
cannot be corrected within the applicable period, it shall not constitute an act of default if
corrective action is instituted by LESSEE within the applicable period and diligently
pursued until the default is corrected.
ARTICLE 10 -REMEDIES FOR DEFAULT BY LESSEE
Whenever an act of default by LESSEE shall have occurred, and any applicable period
for giving notice and any opportunity to cure shall have expired, CITY shall have the
following rights and remedies all in addition to any rights and remedies that may be given to
CITY by statute, common law, or otherwise:
10.1 CITY may distrain for rent due any of LESSEE's personal property which comes into
CITY's possession. This remedy shall include the right of CITY to dispose of personal
property distrained in any commercially reasonable manner. It shall be conclusively
presumed that compliance with the procedures set forth in the Alaska Uniform
Commercial Code (AS 45.29.601-.628) with respect to sale of property shall be a
commercially reasonable disposal. Notwithstanding the foregoing, CITY agrees that its
rights set forth in this Section 10.1 shall be junior to the rights granted to any Lender (as
defined in Section 12.2) under a Security Instrument (as defined in Section 12.2), and
CITY's consent is not required for a Lender to enter upon the LEASED LAND and
assemble, have appraised, display, sever, remove, maintain, prepare for sale or lease,
advertise, inspect, repair, lease, transfer and/or sell (at public auction or private sale), take
possession of, or otherwise enforce such Lender's security interest in LESSEE's personal
property or other assets located on the Leased Land in which such Lender holds a
security interest.
10.2 CITY may re-enter the Leased Land and take possession thereof and, except for any
personal property of LESSEE which CITY has waived its right to distrain under Section
10.1 above, remove all personal property of LESSEE from the Leased Land. Such
personal property may be stored in place or may be removed and stored in a public
warehouse or elsewhere at the cost of LESSEE all without service of notice or resort to
legal process, all of which LESSEE expressly waives.
10.3 In addition to the above, CITY may:
a) Declare this LEASE terminated;
4817-1371-2460v.14 0022769-000022 13
36
b) Collect any and all rents due or to become due from subtenants or other occupants
of the Leased Land;
c) Recover from LESSEE, whether this LEASE be terminated or not, reasonable
attorney's fees and all other expenses incurred by CITY by reason of the breach or
default by LESSEE;
d) Recover an amount to be due immediately on breach equal to the unpaid rent for
the entire remaining term of this LEASE.
e) Recover all damages incurred by CITY by reason of LESSEE's default or breach,
including, but not limited to, the cost of recovering possession of the Leased
Land, expenses of reletting, including costs of necessary renovation and alteration
of the premises, reasonable attorney's fees, and any real estate commissions
actually paid.
f) Remove or require the removal of any improvements constructed without CITY
approval (when such approval is required under this LEASE) or constructed
contrary to site development plans approved by CITY and recover all costs and
expense incurred by CITY to remove violating improvements.
10.4 If LESSEE does not immediately surrender possession of the Leased Land after
termination by CITY and upon demand by CITY, CITY may forthwith enter into and
upon and repossess the Leased Land and expel LESSEE without being deemed guilty in
any manner of trespass and without prejudice to any remedies which might otherwise be
used for arrears of rent or breach of covenant.
10.5 No expiration or termination of this LEASE shall expire or terminate any liability or
obligation to perform of LESSEE's which arose prior to the termination or expiration
except insofar as otherwise agreed to in this LEASE.
10.6 Each right and remedy of CITY provided for in this LEASE shall be cumulative and shall
be in addition to every other right or remedy provided for in this LEASE or now or
hereafter existing at law or in equity or by statute or otherwise, and the exercise or
beginning of the exercise by CITY of any one or more of the rights and remedies
provided for in this LEASE or now or hereafter existing at law or in equity or by statute
or otherwise shall not preclude the simultaneous or later exercise by CITY of any or all
other rights or remedies provided for in this LEASE or now or thereafter existing at law,
or in equity or by statute or otherwise.
10.7 No delay or omission to exercise any right or power accruing following an act of default
shall impair any such right or power or shall be construed to be a waiver thereof, but any
such right and power may be exercised from time to time and as often as may be deemed
expedient.
4817-1371-2460v.14 0022769-000022 14
37
10.8 Notwithstanding any other provision of this Article X, if this LEASE is rejected in a
bankruptcy or insolvency proceeding or terminated due to LESSEE's breach of Section
9.4 above, upon Lender's written request made not more than forty (40) days after this
LEASE is rejected, CITY will enter into a new lease of the Premises with the nominee of
such Lender for the remainder of the term of this LEASE, at the same rent and under the
same terms and conditions set forth in this LEASE. All sums due and owing to CITY
under this LEASE shall be paid at the time of execution of the new lease.
ARTICLE 11 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE
11.1 Real Property Improvements. All improvements constructed by LESSEE or its
predecessors on the Leased Land or on easements to or from the same, such as buildings,
warehouses, conveyor systems, ditches, sewer lines, water lines, dikes or berms and
similar improvements, are the property of LESSEE and shall be removed by LESSEE at
the termination of this LEASE for any reason. All such improvements that are not
removed by LESSEE prior to the termination of this LEASE shall become the property of
CITY upon termination of this LEASE for any reason; provided, however, that CITY
may require LESSEE to remove any improvements designated by CITY and without cost
to CITY by giving notice to LESSEE of such requirement not more than 10 days after
termination of this LEASE and sooner if possible. LESSEE shall have a period not to
exceed three hundred sixty-five (365) days after LEASE termination or LESSEE's
receipt of such notice (whichever is later) in which to remove such improvements, and
LESSEE shall pay rent during such time, and shall continue to pay public utility bills
until it has completed the removal obligations described in this Section 11.1.
11.2 Personal Property. Any other provisions of this LEASE to the contrary notwithstanding,
LESSEE, upon termination of this LEASE for any reason, may, but need not, promptly
remove, in no event later than ninety (90) days from the termination of the LEASE, trade
fixtures and equipment from the Leased Land provided that LESSEE shall repair any
damages to the Leased Land caused by such removal.
ARTICLE 12 -ASSIGNMENT OR SUBLEASE
12.1 Assignment of Lease or Subleasing. The parties recognize that this LEASE has been
determined to be in the public interest by the City Council of CITY for the reasons set
forth in the approving Resolution. The rights and duties created by the LEASE are
personal to LESSEE and CITY has granted the LEASE in reliance upon the business
character and financial capability of LESSEE. Therefore, LESSEE shall not assign or
sublease this LEASE without CITY's prior written consent, in CITY's sole discretion.
12.2 Assignment of Lease for Security. Notwithstanding Section 12.1 above, LESSEE may
assign, encumber, or mortgage its interest in this LEASE or improvements on the Leased
Land, by deed of trust or other security instrument (the "Security Instrument"), to (i) the
State of Alaska to secure the LESSEE's tax obligations, and (ii) one or more entities
engaged in the business of loaning money for LESSEE's development of or operations on
4817-1371-2460v.14 0022769-000022 15
38
the Leased Land (each beneficiary named in such Security Instrument referred to
hereinafter as the "Lender"). CITY's consent is not required for any Security Instrument
as described herein, or any loan documents related to the same (or any amendment,
modification, restatement, supplement, renewal or substitution thereof), but upon a
Lender's request, CITY shall execute a consent to the Security Instrument or include
consent language in an estoppel certificate provided to CITY pursuant to Article XX of
this LEASE. If requested by a Lender, CITY shall furnish such Lender, at the address
provided to CITY by Lender in writing, with notice of any default or breach of LESSEE
under this LEASE. Lender shall have the right (without being required to do so and
without thereby assuming the obligations of LESSEE under this LEASE) to make good
such default or breach within thirty (30) days after receipt of such written notice
specifying such breach. Notwithstanding the provisions of Article 10 above, no
"LESSEE Act of Default" shall exist until expiration of thirty (30) days after such notice
is furnished to Lender; provided,
a) If Lender, with respect to any default or breach other than a failure to make any
required payment of rent or other money, shall undertake within thirty (30) days
after notice to cure the default or breach and shall diligently and in good faith
proceed to do so, CITY may not terminate this LEASE or relet the Leased Land
unless Lender fails to cure the default or breach within a reasonable period of time
thereafter; and
b) If the default for which notice is given is a breach of Section 9.3, CITY shall not
exercise any of the remedies afforded to it under Article 10 above so long as
LESSEE or Lender remains in possession of the Leased Land and satisfies
LESSEE's obligations under the terms of this LEASE.
This LEASE shall not be terminated upon foreclosure or other assertion by Lender of its
security interest as long as all obligations of LESSEE under the terms of this LEASE
continue to be performed. Any assignee, purchaser at a foreclosure sale, or transferee
shall agree to assume this LEASE and be bound by each and every term of this LEASE.
No amendment, modification or termination of this LEASE prior to its expiration date
shall be effective at any time that the Security Instrument remains effective, unless
Lender shall have given its prior written consent thereto, which consent shall not
unreasonably be withheld. Notwithstanding the forgoing, in the event the Lender does
not notify the City of its election to withhold consent to any amendment, modification or
termination of this Lease within thirty (30) days after receipt of a request for such
approval, the Lender will be deemed to have approved such amendment, modification or
termination as the case may be. If at any time the leasehold interest under this LEASE
and the fee estate in the Leased Land are commonly held, such estates shall remain
separate and distinct estates and shall not merge without the consent of Lender.
12.3 Assignment to Affiliate. Notwithstanding Section 12.1 above, LESSEE may assign this
LEASE to an affiliate of LESSEE or of its parent company (as the term "affiliate" is
defined by AS 10.06.990(2)) or to an Alaska limited liability company in which LESSEE
or its parent company maintains a substantial membership interest; provided, however,
4817-1371-2460v.14 0022769-000022 16
39
that LESSEE's full faith and credit shall remain obligated under this LEASE as though
the assignment had not taken place.
12.4 Assignment or Encumbrance by CITY. CITY agrees that, so long as any Security
Instrument remains outstanding, the CITY shall not encumber its interest in the Leased
Land or under the LEASE in any respect without the prior written consent of the
LESSEE's Lender. If any deed of trust or similar instrument encumbers the CITY's
interest in the Leased Land (a "CITY Deed of Trust") and is senior in priority to this
LEASE, the CITY agrees to obtain: (i) a non-disturbance agreement in form reasonably
satisfactory to Lender pursuant to which the beneficiary named in such CITY Deed of
Trust agrees not to disturb the possession of LESSEE or Lender and their successors and
assigns so long as LESSEE and Lender and their successors and assigns comply with this
LEASE.
ARTICLE 13 -LESSEE'S DUTY TO DEFEND/INDEMNIFY
LESSEE shall defend, indemnify, and hold harmless CITY, its officials, employees,
agents, and contractors from any and all liability or claims for damages, including personal
injuries, environmental damage, death and property damage arising out of or resulting from
LESSEE's use of the Leased Land or the use of the Leased Land by LESSEE's sublessees,
assignees, agents, contractors, or the public, except for damages arising from the sole negligence
or willful acts or omissions of CITY, its officials, employees, agents, or contractors. If any
action or proceeding is brought against LESSEE by reason of any such occurrence, LESSEE
shall notify CITY promptly in writing of such action or proceeding.
ARTICLE 14 - CITY'S DUTY TO DEFEND/INDEMNIFY
CITY shall defend, indemnify and hold LESSEE harmless from any and all liability or
claims for damages, including personal injuries, death, and property damage arising from the
sole negligence or willful acts or omissions of CITY, its officials, employees, agents, or
contractors.
ARTICLE 15 -INSURANCE
15.1 Minimum Insurance Requirements. Prior to commencement of the Lease Term or
LESSEE'S occupancy of the Leased Land, LESSEE shall procure and maintain, at
LESSEE's sole cost and expense, the following insurance:
a) Commercial General Liability Insurance Policy insuring the Leased Premises and
LESSEE's use thereof, with a minimum limit of Two Million Dollars
($2,000,000) on account of bodily injuries or death or property damage for each
occurrence and a minimum limit Two Million Dollars ($2,000,000) annual
general aggregate (such limits may be satisfied through a combination of primary
and umbrella/excess liability insurance). The foregoing policy(ies) shall name
CITY and, upon request, LESSEE's lender, as additional insureds under
LESSEE's insurance policy(ies);
4817-1371-2460v.14 0022769-000022 17
40
b) Special Form Cause of Loss (excluding earthquake and flood)Property Insurance
Policy, including extended coverage endorsements insuring all of Lessee's
improvements (including LESSEE's stock-in-trade, trade fixtures, furniture,
furnishings, special equipment, floor and wall coverings, and all other items of
personal property of LESSEE located on or within LESSEE'S improvements with
such coverage to be in an amount equal to one hundred percent(100%) of the
replacement cost thereof. The foregoing policy shall name CITY and LESSEE's
lender, if any, as loss payee under LESSEE's insurance policy with regard to the
permanent leasehold improvements on the Leased Land.
c) Workers' compensation and United States Longshore and Harbor worker's
insurance covering Tenant's employees at the Leased Premises as required by
Alaska law;
d) Commercial automobile liability insurance for hired, owned/registered under
LESSEE's name and non-owned vehicles, including contractual liability with a
single limit of liability not less than One Million and 00/100 Dollars
($1,000,000.00) per accident for bodily injury and property damage combined or
such other amounts as CITY may reasonably request. The foregoing policy shall
name CITY and, upon request, LESSEE's lender, as additional insureds under
Tenant's insurance policy.
The minimum amounts and types of insurance provided by LESSEE shall be subject to
revision at the sole discretion of CITY in accordance with standard insurance practices, in
order to provide continuously throughout the term of this LEASE and any extensions
hereof, a level of protection consonant with good business practice and accepted
standards in the industry. Such factors as changes in the type of or extent of use of the
Lease Land, increases in the cost of living, inflationary pressures, and other
considerations, shall be utilized in assessing whether the minimum insurance
requirements should be increased. CITY shall notify LESSEE of any required increase in
insurance coverage. Provisions of insurance policies required under this Section 15.1 will
not be materially altered by LESSEE during the term of this LEASE, and LESSEE will
provide CITY with proof of insurance upon request.
All such policies shall be written by insurance companies legally authorized or licensed
to do business in the State of Alaska and acceptable to CITY (Best's Rating B+ or better).
CITY shall be listed as an additional insured under all insurance policies. LESSEE shall
furnish CITY, on forms approved by CITY, certificates evidencing that it has procured
the insurance required herein prior to the occupancy of the Leased Land or operation by
LESSEE. Insurance policy deductibles shall be consonant with good business practice
and accepted standards in the LESSEE's industry. Nothing herein contained shall
prevent LESSEE or CITY from placing and maintaining at CITY's or LESSEE's own
individual cost and expense, additional or other insurance as may be desired. The
minimum insurance requirements under this LEASE shall not act to limit LESSEE's
liability for any occurrence and shall not limit LESSEE's duty to defend and indemnify
CITY for claims related to this LEASE or the Leased Land.
4817-1371-2460v.14 0022769-000022 18
41
15.2 Subrogation Rights Waived. To the extent permitted by law, LESSEE hereby releases
CITY, its elected and appointed officials, employees and volunteers, and others working
on behalf of CITY from any and all liability or responsibility to LESSEE or anyone
claiming through or under LESSEE by way of subrogation or otherwise, for any loss of
any kind (including damage to property caused by fire or any other casualty), even if such
loss shall have been caused by the fault or negligence of the CITY, its elected or
appointed officials, employees or volunteers, or others working on behalf of the CITY.
This provision shall be applicable and in full force and effect only with respect to loss or
damage occurring during the time of LESSEE's occupancy or use (including LESSEE's
occupancy or use prior to the Effective Date of this LEASE), and LESSEE agrees its
policies of insurance will not contain any clause, provision or endorsement that limits
LESSEE's right to recover under such policy if an additional insured has obtained a
waiver of subrogation.
15.3 Restoration of Buildings and Improvements. hi the event of damage to, or destruction of,
any of the buildings or improvements situated on the Leased Land, and to the extent that
LESSEE is entitled to any insurance proceeds resulting therefrom, such proceeds shall be
paid to LESSEE's Lender, to be used to restore the LESSEE's improvements in
accordance with the Security Instrument. In the event LESSEE does not have a Lender,
then the insurance proceeds shall be payable to Lessee, and Lessee shall either:
a) Within ninety (90) days after payment of the insurance proceeds, commence
restoration of the buildings and improvements to their condition prior to such
damage, provided, however, that Lessee's obligation to restore will be limited to
the insurance proceeds available to Lessee; or
b) Apply such insurance proceeds first to the cost of removal of the damaged or
destroyed buildings, including any debris or other nuisance occasioned by the
damage or destruction, and restore the Leased Land to a grade and condition
similar to its grade and condition prior to the construction of the buildings or
improvements thereon. Insurance proceeds remaining after the removal of
damaged or destroyed buildings and other improvements, and restoration of the
Leased Land to grade and condition satisfactory to the City may be applied to any
indebtedness owed by Lessee to any lender named as beneficiary under any Deed
of Trust recorded against the Lessee's interest, in order of priority of recordation.
c) Regardless of whether Lessee elects to proceed under a) or b), above, all
insurance proceeds shall be deposited and held in trust with a bank having offices
in Seward and/or Anchorage, Alaska, as Lessee may designate, or with Lessee's
mortgagee named in a Deed of Trust granting such mortgagee a beneficial interest
in the damaged property, and shall be made available to Lessee for its use in
either restoring or repairing any damaged or destroyed buildings or improvements
on the Leased Land, or removing the damaged or destroyed buildings or
improvements and restoring the Leased Land to a grade and condition of
reasonable satisfaction to the City. The proceeds of insurance shall be paid out by
such bank or mortgagee from time to time, on certifications, by the person having
supervision of the work, that the amount certified is being applied to the payment
4817-1371-2460v.14 0022769-000022 19
42
of the reasonable costs of such work. Should the Lessee elect not to restore and
repair damaged buildings and improvements on the Leased Land, all insurance
proceeds remaining after removal of damaged and destroyed buildings and
improvements, and restoration of the Leased Land, may be applied to any
indebtedness by Lessee to any lender named as beneficiary under any Deed of
Trust recorded against the Lessee's interest, in order of priority of recordation,
after receipt of written satisfaction from the City of the restoration of the Leased
Land.
hi the event Lessee elects not to restore and repair when substantial damage or
destruction has occurred to the buildings and improvements, this Lease shall terminate,
and all Lessee's obligations hereunder shall expire, upon the date that the City certified in
writing its satisfaction with the restoration of the Leased Land.
ARTICLE 16 - CONDEMNATION
If all or any part of the Leased Land is condemned for a public use by any government
agency or other duly authorized entity, CITY and LESSEE shall each make a claim against the
condemning or taking authority for the amount of any damage incurred by or done to them
respectively as a result of the taking. Neither LESSEE nor CITY shall have any rights in or to
any award made to the other by the condemning authority; provided, that in the event of a single
award to CITY which includes specific damages for loss of LESSEE's leasehold interest, CITY
shall transmit to LESSEE the amount of such specific damages so found, if any or to LESSEE's
Lender if required by a Security Instrument.
If part but not all of the Leased Land is condemned for public use, LESSEE shall make a
good faith determination as to whether or not the taking of the part of the Leased Land
designated for condemnation will prevent it from continuing to operate on the Leased Land. If
LESSEE determines in good faith that the condemning of such part of the Leased Land will
prevent it from continuing to operate on the Leased Land, LESSEE may notify CITY in writing
to this effect, and this LEASE shall then be terminated for all purposes effective fifteen (15) days
from the date LESSEE sends such notice to CITY, or at such other later date as LESSEE shall
specify in its notice, and such termination shall be treated in the same manner as a termination at
the expiration of the term of this LEASE. LESSEE shall, as a condition precedent to such
termination, remove all encumbrances, debts, and liens to which the Leased Land is subject. If at
the time of such partial taking for public use, LESSEE determines that such partial taking will
not prevent it from continuing to operate, then LESSEE and CITY shall negotiate an equitable
and partial abatement of the rent beginning to be effective on the actual date when LESSEE is
effectively prevented from utilizing the condemned land.
ARTICLE 17 -ARBITRATION
17.1 Arbitration.
a) Disputes between the parties with respect to the performance of this LEASE that
cannot be resolved by the parties, may be submitted to an independent arbitrator
4817-1371-2460v.14 0022769-000022 20
43
for a settlement pursuant to the provisions of the Alaska Uniform Arbitration Act
(AS 09.43.010 et. seq.), as it now exists or may hereafter be amended from time
to time, and judgment on the award may be entered in any Superior Court in the
State of Alaska. Either party may submit to the other party a request for
arbitration and the party receiving a request shall have twenty (20) days to
consent, in writing, to the use of arbitration to resolve the dispute. Failure of
either party to consent will preclude the use of arbitration for that dispute. The
costs and expenses of arbitration shall be shared equally by the parties, and each
party shall bear its own attorney's fees and costs.
b) Arbitration procedures shall be applicable only to contract, negligence, and
similar claims arising from or related to this LEASE and shall not be used to
resolve or determine any claim based upon fraud, intentional misrepresentation,
nor any claim based on conduct that is a felony crime in the State of Alaska.
c) Arbitration of any dispute or claim shall be determined by a single arbitrator
selected from a list of not less than five (5) arbitrators obtained from the presiding
Superior Court Judge or other appropriate judicial officer in Anchorage, Alaska.
The arbitrator shall be a person who (a) has not less than five (5) years legal
experience in the State of Alaska prior to appointment; and (b) such legal
experience includes substantial experience with long-term commercial real
property transactions. Each party shall be provided with a copy of the list and
shall be afforded a maximum of ten (10) working days to become familiar with
the qualifications of the prospective arbitrators. The arbitrator shall be selected
by each party, commencing with the party demanding the arbitration, striking one
name from the list until only a single name remains.
d) Arbitration hearings shall be conducted in Anchorage, Alaska or such other
location as the parties may agree. Each party shall produce at the request of the
other party, at least thirty (30) days in advance of such hearing, (i) the names,
addresses, phone numbers, and email addresses for all witnesses who may testify
at the hearing; and (ii) all documents to be submitted at the hearing and such other
documents as are relevant to the issues or likely to lead to relevant information.
e) In deciding the claim or dispute, the arbitrator shall follow applicable Alaska law,
and the written decision shall be supported by substantial evidence in the record.
Failure to apply Alaska law, or entry of a decision that is not based on substantial
evidence in the record, shall be additional grounds for modifying or vacating an
arbitration decision.
ARTICLE 18 -MAINTENANCE AND REPAIRS
18.1 Normal Maintenance. During the entire term of this LEASE and every extension hereof,
if any, LESSEE shall, at LESSEE's sole cost, risk and expense, maintain the Leased
Land, including any improvements placed thereon by LESSEE, in as good condition as
received or constructed by LESSEE, subject to normal, non-abusive use. CITY, at
4817-1371-2460v.14 0022769-000022 21
44
CITY's sole option and expense, may, prior to the commencement of construction by
LESSEE, perform maintenance and preventative work on the Leased Land, exclusive of
improvements placed thereon by LESSEE, in order to prevent erosion, mitigate damage
to plants and animals, or prepare the Leased Land for eventual development by LESSEE
or others by grading, filling, or contouring the Leased Land. Any such work performed
by CITY shall be at CITY's sole expense and risk unless LESSEE agrees, in advance and
in writing, to share such expense and risk. LESSEE shall maintain in first class condition
at all times all fire, pollution, and other protective equipment, if any are placed on Leased
Land.
18.2 Safety Issues. CITY may notify LESSEE in writing of any deficiencies in the
performance of LESSEE's maintenance responsibilities as they relate to public health or
safety and LESSEE shall promptly within thirty (30) days of receipt of such notice advise
CITY in writing of its proposed schedule for performance of any work necessary to cure
such deficiencies.
If such deficiencies relate to the safety of LESSEE's operation such that the surrounding
land and port facilities are exposed to risk, unnecessary potential hazards, or a risk to the
public interest (as distinguished from a business risk), or if CITY is not satisfied with the
proposed schedule of repairs either because of the delays therein or the scope of the
repairs, then CITY may engage an independent engineering consultant well-versed and
experienced who shall furnish to CITY a comprehensive survey and report for the
purpose of establishing both the need and urgency to perform such maintenance work.
As soon as practicable following receipt of said engineer's determinations and
recommendations, if the report requires repair then LESSEE shall pay the cost of the
report and perform such work in accordance therewith at LESSEE's cost, risk, and
expense.
18.3 Cost of Repairs. Should LESSEE dispute the necessity of any maintenance work as
being necessary or advisable or reasonable to protect the public facilities on adjacent
land, it may submit the matter to arbitration;provided, however, that pending the decision
of the arbitrator it shall fully comply with the maintenance requests. If an arbitration
award should ultimately find that the repairs were not necessary, then LESSEE may
either deduct from future rental payments the cost of such repairs or be reimbursed
therefor. In deciding whether repairs requested by CITY or required by an engineering
report are necessary, the arbitration panel is to give primary consideration to the safety
and welfare of the Seward port facilities and the citizens of Seward in light of the highest
standards in the industry.
If any facility or service provided by CITY to the Leased Land shall become inadequate
due to changes in environmental control standards or should any facility require updating
or improvement by reason of a change in LESSEE's use of the Leased Land or operations
therefrom, LESSEE shall either construct such improvements at LESSEE's own cost or
reimburse CITY for such work at the option of CITY.
ARTICLE 19 -ENVIRONMENTAL CONCERNS
4817-1371-2460v.14 0022769-000022 22
45
19.1 Hazardous Materials.
a) Condition of Site. LESSEE has had full opportunity to examine the site for the
presence of any Hazardous Material and accepts the site in "as is" condition.
LESSEE may elect, at LESSEE's sole cost, to conduct a baseline soils test prior to
execution of this LEASE.
b) Release of CITY. Any other provision of this LEASE to the contrary
notwithstanding, LESSEE releases CITY from any and all claims, demands,
penalties, fines, judgments, liabilities, settlements, damages, costs, or expenses
(including, without limitation, attorney's fees, court costs, litigation expenses, and
consultant and expert fees) arising prior to, during, and after the term of this
LEASE, and resulting from the use, keeping, storage, or disposal of Hazardous
Material on the Leased Land by LESSEE or its predecessors in interest, or arising
out of or resulting from LESSEE's operations at the Leased Land or the operations
of its predecessors in interest at the Leased Land except for those claims arising
out of CITY's sole negligence or intentional misconduct. This release includes,
without limitation, any and all costs incurred due to any investigation of the
Leased Land or any cleanup, removal, or restoration mandated by a federal, state,
or local agency or political subdivision or by law or regulation.
c) Use of Hazardous Materials on the Site.
i) LESSEE shall not cause or permit any Hazardous Material to be brought
upon, kept, or used in or about the Leased Land except for such Hazardous
Material as is necessary to conduct LESSEE's authorized use of the
Leased Land.
ii) Any Hazardous Material permitted on the Leased Land as provided in this
paragraph, and all containers therefor, shall be used, kept, stored, and
disposed of in a manner that complies with all Environmental Laws or
other laws or regulations applicable to such Hazardous Material.
iii) LESSEE shall not discharge, leak, or emit, or permit to be discharged,
leaked, or emitted, any material into the atmosphere, ground, ground
water, sewer system, or any body of water, if such material (as reasonably
determined by the City, or any governmental authority) does or may,
pollute or contaminate the same, or may adversely affect the (a) health,
welfare, or safety of persons, whether located on the Leased Land or
elsewhere; or (b) condition, use, or enjoyment of the Leased Land or any
other area or personal property.
iv) LESSEE hereby agrees that it shall be fully liable for all costs and
expenses related to the use, storage, and disposal of Hazardous Material
kept or brought on the Leased Land by LESSEE, its authorized
4817-1371-2460v.14 0022769-000022 23
46
representatives and invitees, and LESSEE shall give immediate notice to
CITY of any violation or potential violation of the provisions of this
subparagraph.
d) Indemnification of CITY. Any other provision of this LEASE to the contrary
notwithstanding, LESSEE shall defend, indemnify, and hold CITY harmless from
and against any claims, demands, penalties, fines, judgments, liabilities,
settlements, damages, costs, or expenses (including, without limitation, attorney,
consultant and expert fees, court costs, and litigation expenses) of whatever kind
or nature, known or unknown, contingent or otherwise, arising out of or in any
way related to:
i) The presence, disposal, release, or threatened release of any such
Hazardous Material which is on or from the Leased Land, soil, water,
ground water, vegetation, buildings, personal property, persons, animals,
or otherwise;
ii) Any personal injury (including wrongful death) or property damage (real
or personal) arising out of or related to such Hazardous Material or any
use of the Leased Land;
iii) Any lawsuit brought or threatened, settlement reached, or government
order relating to such Hazardous Material or any use of the Leased Land;
and/or
iv) Any violation of any laws applicable thereto; provided, however, that this
Section 19.1(d) shall apply only if the acts giving rise to the claims,
demands, penalties, fines, judgments, liabilities, settlements, damages,
costs, or expenses (1) occur prior to or during the term of this LEASE; and
(2) arise, in whole or in part, from the use of, operations on, or activities
on the Leased Land by LESSEE or LESSEE's predecessors in interest,
employees, agents, invitees, contractors, subcontractors, authorized
representatives, subtenants, or any other persons. The provisions of this
subparagraph shall be in addition to any other obligations and liabilities
LESSEE may have to CITY at law or equity and shall survive the
transactions contemplated herein and shall survive the termination of this
LEASE.
e) Operator. For all purposes, LESSEE shall be deemed the operator of any facility
on the Leased Land.
f) Hazardous Material Defined. As used in this LEASE, Hazardous Material is any
substance which is toxic, ignitable, reactive, or corrosive or which is regulated by
any Environmental Law. Hazardous Material includes any and all material or
substances which are defined as industrial waste, hazardous waste, extremely
hazardous waste, or a hazardous substance under any Environmental Law.
4817-1371-2460v.14 0022769-000022 24
47
Notwithstanding any statutory petroleum exclusion, for the purposes of this
LEASE, the term Hazardous Material includes, without limitation, petroleum,
including crude oil or any fraction thereof, petroleum soaked absorbent material,
and other petroleum wastes.
g) Environmental Law Defined. As used in this LEASE, Environmental Laws
include any and all local, state, and federal ordinances, statutes, and regulations,
as now in force or as may be amended from time to time, relating to the protection
of human health and the environment, as well as any judgments, orders,
injunctions, awards, decrees, covenants, conditions, or other restrictions or
standards relating to same. Environmental Laws include, by way of example and
not as a limitation of the generality of the foregoing, Alaska Statutes Title 46, the
Resource Conservation and Recovery Act of 1976, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, the Clean
Water Act, and the Superfund Amendments and Reauthorization Act of 1986.
19.2 Permits and Reporting.
a) Permits Required by Other Governmental Agencies. LESSEE shall obtain all
permits or approvals required by any applicable law or regulation. Copies of all
such permits shall be provided to CITY prior to LESSEE commencing work
under this LEASE. LESSEE shall promptly make all reports to any federal, state,
or local government or agency required by any permit or Environmental Law,
including reports of any spill or discharge of Hazardous Material. The CITY,
through the City Manager, may order LESSEE to immediately cease any
operations or activities on the Leased Land if the same is being carried out
without necessary permits, in violation of the terms of any permit or
Environmental Law, or contrary to this LEASE.
b) Correspondence with and Reports to Environmental Agencies. LESSEE shall
immediately (the same or the next business day) provide CITY with copies of all
correspondence and notice, including copies of all reports between LESSEE and
any state, federal, or local government or agency regulating Hazardous Material
which relates to LESSEE's operations on or use of the Leased Land.
ARTICLE 20 -ESTOPPEL CERTIFICATES
Either party shall at any time and from time to time upon not less than ten (10) days'prior
written request by the other party, execute, acknowledge, and deliver to such party, or to its
designee, a statement in writing certifying that this LEASE is unamended and in full force and
effect (or, if there has been any amendment thereof, that the same is in full force and effect as
amended and stating the amendment or amendments), that there are no defaults existing (or, if
there is any claimed default, stating the nature and extent thereof), the remaining term of this
LEASE and any extensions hereto, stating the dates to which the rent and other charges have
been paid in advance, and such other information as may be reasonably requested by the
requesting party and, where the requesting party is the LESSEE, include such other provisions as
4817-1371-2460v.14 0022769-000022 25
48
a prospective assignee of the LESSEE's interest in this LEASE or a prospective leasehold
mortgagee would reasonably request.
ARTICLE 21 - CONDITIONS AND COVENANTS
All the provisions of this LEASE shall be construed to be "conditions" as well as
"covenants," as though the words specifically expressing or imparting covenants and conditions
were used in each separate provision.
ARTICLE 22 -NO WAIVER OF BREACH
No failure by either CITY or LESSEE to insist upon the strict performance by the other
of any term, covenant, or condition of this LEASE or to exercise any right or remedy consequent
upon a breach thereof shall constitute a waiver of any such breach or of such terms, covenants, or
conditions. No waiver of any breach shall affect or alter this LEASE, but each and every term,
covenant, and condition of this LEASE shall continue in full force and effect with respect to any
other than an existing or subsequent breach.
ARTICLE 23 - TIME OF THE ESSENCE
Time is of the essence of this LEASE and of each provision.
ARTICLE 24 - COMPUTATION OF TIME
The time in which any act provided by this LEASE is to be done by shall be computed by
excluding the first day and including the last, unless the last day is a Saturday, Sunday, or a
holiday, and then it is also excluded.
ARTICLE 25 - SUCCESSORS IN INTEREST
Each and all of the terms, covenants, and conditions in this LEASE shall inure to the
benefit of and shall be binding upon the successors in interest of CITY and LESSEE.
ARTICLE 26 -ENTIRE AGREEMENT
This LEASE contains the entire agreement of the parties with respect to the matters
covered by this LEASE, and no other agreement, statement, or promise made by any party which
is not contained in this LEASE shall be binding or valid.
ARTICLE 27 - GOVERNING LAW
This LEASE shall be governed by, construed, and enforced in accordance with the laws
of the State of Alaska. The terms of this LEASE are subject in all respects to the Charter and
Code of Ordinances of CITY in effect on the date of this LEASE, and as they may be hereafter
amended, including, without limitation, Chapter 7.05 of the Seward City Code.
4817-1371-2460v.14 0022769-000022 26
49
ARTICLE 28 -PARTIAL INVALIDITY
If any provision of this LEASE is held by a court of competent jurisdiction to be invalid,
void, or unenforceable, the remainder of the provisions shall remain in full force and effect and
shall in no way be affected, impaired, or invalidated.
ARTICLE 29 -RELATIONSHIP OF PARTIES
Nothing contained in this LEASE shall be deemed or construed by the parties or by any
third person to create the relationship of principal and agent or of partnership or of joint venture
or of any association between CITY and LESSEE; and neither the method of computation of
rent, nor any other provisions contained in this LEASE, nor any acts of the parties, shall be
deemed to create any relationship between CITY and LESSEE other than the relationship of
lessee and lessor.
ARTICLE 30 -INTERPRETATION
The language in all parts of this LEASE shall in all cases be simply construed according
to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had
the opportunity to seek assistance of counsel in drafting and reviewing this LEASE.
ARTICLE 31 - CAPTIONS
Captions of the articles, paragraphs, and subparagraphs of this LEASE are for
convenience and reference only, and the words contained therein shall in no way be held to
explain, modify, amplify, or aid in the interpretation, construction, or meaning of the provisions
of this LEASE.
ARTICLE 32 -AMENDMENT
This LEASE is not subject to amendment except in writing executed by both parties
hereto.
ARTICLE 33 -NOTICES
All notices, demands, or requests from one party to another shall be delivered in person
or be sent by mail, certified or registered, postage prepaid, to the addresses stated in this Article
and to such other persons and addresses as either party may designate. Notice by mail shall be
deemed to have been given at the time of mailing.
All notices, demands, and requests from LESSEE to CITY shall be given to CITY at the
following address:
City Manager
CITY OF SEWARD
PO Box 167
4817-1371-2460v.14 0022769-000022 27
50
Seward, Alaska 99664
All notices, demands or requests from CITY to LESSEE shall be given to LESSEE at the
following address:
Seward Fisheries
P.O. Box 8
Seward, Alaska 99664
Attn: Plant Manager
With a copy to:
Icicle Seafoods, Inc.
c/o Cooke Aquaculture, Inc.
40 Wellington Row
Saint John, New Brunswick E21, 3H3
Attn: Chief Legal Officer
Each party shall have the right, from time to time, to designate a different address by
notice given in conformity with this Article.
ARTICLE 34 -FIRE PROTECTION FOR LEASED LAND
LESSEE shall at its sole cost, risk and expense provide fire detection and protection to its
operations on the Leased Land and fire prevention to industry standards for risks to adjacent
facilities such that those risks are minimized. LESSEE shall continue to provide and maintain
industry accepted standards of fire protection such that the City of Seward's ISO rating is not
degraded by reason of LESSEE'S operation. The parties agree that with the rapid expansion of
technology in the field of fire prevention and control LESSEE's obligations hereunder may vary
during the term of this LEASE and CITY may submit LESSEE's compliance with its obligation
hereunder to arbitration not more frequently than once in a five-year period.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the dates
herein set forth.
CITY: LESSEE:
CITY OF SEWARD ICICLE SEAFOODS,INC
By: By:
Jim Hunt, City Manager John Woodruff, Chief Operating Officer
Date: Date:
4817-1371-2460v.14 0022769-000022 28
51
EXHIBIT A
Copy of Plat No. 96-28
Lozrer Rd.
tl
i �� 1 s •� � to ,n.-.,:_
-
� L••:
pp t
1 1 K
7 Doc k tr r -�
F-
l
li •�1[ .. y 1;
a
4817-1371-2460v.14 0022769-000022 30
52
4
RECORDED
�a rd s.. N
No
o
a
Ryl,�R RIP vlaNltt O
MAP �f
cif_ ) ( , 2
CERTIFICATE Of OWNERSHIP
aid
IRONERTY
DREDICATIO oN
xE ERw
"
°_°_ ° a= E
N.a«EasER,
Ave
� o
—41— d
NNNOTARY'S ACKNOWLEDGEMENT
i C�� ice— Lot 3A T-g
............
<� ��- E.>a�
LESSEE cERTIFIcarE
Lot 2A
eo �xox..N.xExEoti.1-RN. .wE.wE`.
�jp
I '.x,, xExEa. x .x a ti�o
� O
�L @q �� �_ �.o Block Two
i'
e� y, ...n. �I Q�
�� NOTARY'S ACKNOWLEDGEMENT
ma
-BSIR NR 11 e u+o oA.OF ! -
AWN sweRN ;�E.x
POP
3.m _PLAT APPROVAL
V ze
L$E IET-OF
MDME JI 10—ISION IT TMReReN ;�-T
.(1-1,a�,,�,.�
NOTES: . sTe"REenR(w�.a 11i1.�..,0 Ic j^ �,� e
s/I RSBIR(,a 11i, °✓°n'c
°^• ♦ aR xou�ro�.a�n�.•���=r) "Y XPB FILE AO 95-075
.). PN N.��„e.,R.,,.,.P,( J
Marina Sub d.
Block 2 Replat
A R p—of Lots 2 4 M.11—Sv d-
CERIIFICATE OF SURVEYOR ' , ( R ao�pee omo �aa eou.x DL k 2 PL t R89 >o S.R.D. n
a>ma.�m�ts sna..num.x,�or= soava.o.a -�4EOf AC9fl� �� R mo "s�ro aort / _J om.s F vm.woe e. iosto
ais soi o.a oPPro.�s�nis s�eai.isio.k,Pio y .os��.o�v 4 se ssis w i.a.as
EEOERn�.ioE�nxN" —IN.INTO 90]QV'P7 GRTP'X $ILM1,1EXS
p��/+mnpggn-�
9 o
LEASE AMENDMENT NO. 2
RE-071
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
mailing address is P.O. Box 167, Seward,Alaska 99664, and ICICLE SEAFOODS, INC.,
a Washington corporation authorized to do business in Alaska, hereinafter referred to as
"Lessee", whose mailing address is P.O. Box 79003, Seattle, Washington 98119, for and
in consideration of the mutual promises and covenants hereinafter contained, hereby agree
that the lease between them for the real property described on attached Exhibit A, hereby
incorporated by reference, and as identified in that certain lease dated July 11, 1988, as
amended (the "Lease"), is hereby amended as follows:
A. DELETE Section 1.1 within Article 1. LEASED LAND and substitute, in its stead, the
following:
1.1 Legal Description.
City leases to Lessee and Lessee leases from City that certain
land herein called "Leased Land," situated in Seward, Alaska,
consisting of approximately 4.93 acres (214,804 sf), as shown
on Exhibit "A" (substitute) attached hereto and more particu-
larly described as follows:
Lots 2A and 3A, Block 2, according to the Plat of
MARINA SUBDIVISION, BLOCK 2 REPLAT,
filed under Plat Number 96-28, in the Seward
Recording District,Third Judicial District, State of
Alaska.
B. DELETE Section 6.4 within Article 6. RENT and substitute, in its stead, the
following:
6.4. Rent Payment Credits for Production and Employment. Provided that Lessee
is not in default of any Lease provisions and is current in all other payments to City, Lessee
shall be allowed as a credit against regular annual rent payable under Sections 6.1 and 6.2
hereof("Regular Rent"), certain rent payment credits for production and employment at the
Leased Land. The Lessee shall be entitled to receive credits as follows:
(a) Production Credit. Lessee may deduct from the Regular Rent
payment due during a calendar year, a rent payment credit for
processing' fisheries resources2 at the Leased Land during the
' "processing"or"processed"means any activity which modifies the physical condition of a fisheries resource,including butchering,
freezing,salting,cooking,canning,dehydrating,or smoking;however,"processing"or"processed"does not include decapitating shrimp
and gutting,gilling,sliming,or icing a fisheries resource solely for the purpose of maintaining the quality of the fresh resource.
54
immediately preceding calendar year. The rent payment credit shall
equal $.50 per ton of all fisheries resources processed at the Leased
Land which exceed a base annual processing level of 5,000 tons, �-
regardless of whether the fisheries resource was delivered to the
Leased Land by land or water or from within or outside of the City of
Seward, Alaska.
(b) Employment Credit. Lessee may deduct from the Regular Rent
payment due during a calendar year, a rent payment credit for
employment at the Leased Land during the immediately preceding Y
calendar year. The rent payment credit shall equal $.25 per hour for L.
each employee hour worked at the Leased Land which exceeds a
base annual employment level of 25,000 employee hours. Only hours
actually worked by Lessee's non-salaried, hourly paid employees
shall be considered. All employee time must be for employees of
Lessee who are actively engaged in work on behalf of Lessee at the
Leased Land. City shall have the right to verify Lessee's compliance
with the provisions of this Article by being provided quarterly certified
payroll records showing the hours worked by Lessee's employees at
the Leased Land.
(c) Provisions Governing Use of All Rent Payment Credits.
Rent payment credits shall be applied only against the Regular Rent
due for each calendar year as otherwise computed under the terms
of Lease sections 6.1 and 6.2 hereof, as such rental rate may be
adjusted from time to time. Rent payment credits shall not be applied
to any additional rent described in Section 6.3 hereof, taxes,
assessments, utilities, other lease obligations paid by City on
Lessee's behalf, late Regular Rental payments not timely made in the
calendar year in which that they were due, or late payment penalties.
Final determination of the availability and amount of rent payment
credits shall be in the sole reasonable discretion of City.
Rent payment credits may be used in any combination; provided,
however, in no event shall the total of credits used in any one
calendar year exceed 50% of the annual Regular Rent payments due
for a calendar year or $75,000, whichever is less. Rent payment
credits shall not be carried forward from year to year.
2 "fisheries resources"means fin fish and shellfish,including but not limited to salmon,halibut,herring,flounder,crab,clam,cod,
shrimp, and pollock; fish byproducts, such as roe, entrails and carcasses, are separate fisheries resources if they are delivered
separately for processing.
JADOCS\433741MAMM00524.4 Page 2
55
Rent payment credits shall not be earned during the final calendar
year of the lease term whether the lease has expired by its terms or
is terminated by either party to the Lease.
C. ADD within Article 6. RENT the following:
6.5. Late Payment Penalty. Rental payment due, but not received, by the due date
shall accrue interest of the rate of ten and one half percent (10.5%) per annum until
paid or the maximum permitted rate under Alaska law, whichever is less.
D. DELETE Part A of Section 11.1 within Article 11. INSURANCE AND RESTORA-
TION and substitute, in its stead, the following:
A. Policy or policies of insurance with the following coverage limits:
1. General Liability ...............:.....................................................$2,000,000
2. Workers Compensation.......................... Alaska Statutory Requirements
E. DELETE Section 16.3 within Article 16. DEFAULT AND REMEDIES and substitute,
in its stead, the following:
16.3 Damages. No such expiration or termination of the Lease shall relieve Lessee
of its liability and obligations under the Lease, and such liability and obligations shall
survive any such expiration or termination. In the event of any expiration or termination,
whether or not the Leased Land, or any part thereof, shall have been relet, Lessee shall
pay to City the net rent and all other charges required to be paid by Lessee up to the time
of such expiration or termination of this Lease, and thereafter Lessee, until the end of what
would have been the term of this Lease in the absence of such expiration or termination,
shall be liable to City for, and shall pay to City, as and for liquidated and agreed current
damages for Lessee's default:
a. the equivalent of the amount of the rent and charges which would be payable
under this Lease by Lessee if this Lease were still in effect, less
b. the net proceeds received by City from leasing or reletting the Leased Land
and improvements thereon after deducting all of City's expenses in connection with such
leasing and reletting, including, without limitation, all repossession costs, brokerage
commissions, legal expenses, reasonable attorney fees, alteration costs, and expenses
of preparation for such reletting.
Lessee shall pay such current damages (herein called "deficiency")to City monthly,
and City shall be entitled to recover from Lessee each monthly deficiency as the same
shall arise. At any time after any such expiration or termination, whether or not City shall
have collected any monthly deficiencies as aforesaid, City shall be entitled to recover from
JAD0CS\43374102\AMM00524.4 Page 3
56
Lessee, and Lessee shall pay to City, on demand, as and for liquidated and agreed final
damages for Lessee's default, an amount equal to the difference between all rent reserved
hereunder for the unexpired portion of the Lease Terms and the then-fair-and-reasonable
net rental value to City of the Leased Land for the period for which such installment was
payable shall be discounted to the date of termination at the rate of six (6%) percent per
annum. If the Leased Land, or any part thereof, be leased or relet by City for the unexpired
portion of the Lease Term, or any part thereof, before presentation of proof of such
liquidated damages to any court, commission or tribunal, the amount of rent reserved upon
such leasing or reletting shall be prima facie evidence of the fair and reasonable rental
value for the part of the whole of the premises so leased or relet during the term of the
leasing or reletting. Nothing herein contained shall limit or prejudice the right of City to
prove and obtain as liquidated damages by reason of such termination an amount equal
to the maximum allowed by any statute or rule of law in effect at the time when, and
governing the proceedings in which such damages are to be proved, whether or not such
amount be greater, equal to, or less than the amount of the difference referred to above.
F. DELETE Section 17.2 within Article 17. GENERAL PROVISIONS and substitute,
in its stead, the following:
17.2. Conditions and Covenants. All the provisions of the Lease shall be deemed
as running with the Land, and shall be construed to be "conditions" as well as "covenants,"
as though the words specifically expressing or imparting covenants and conditions were
used in each separate provision.
G. In all other respects, the Lease is to remain unchanged and in full force between the
undersigned parties.
H. This Lease Amendment No. 2 shall be effective January 1, 1999.
JADOCS\43374100AMM00524.4 Page 4
57
IN WITNESS WHEREOF, the parties have executed this document this day of
, 2000.
CITY: LESSEE:
CITY OF SEWAR/D ICICLE SEAFOODS, INC.
kA /19
By: W. Scott Janke By: -b f
Its: City Manager Its: V 1 ce Mc;�,r t r p P, �r
ATTEST: SUBMITTED BY:
Patrick Reilly, City erk James Beckham, Harbormaster
s9 ��aa
JAD005\433741MAMM00524.4 Page 5
58
n
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT JUDICIAL DISTRICT )
THIS CERTIFIES that on this day of J°°' --� , 2000, before me, the
undersigned Notary Public in and for the State of Alaska, personally appeared W. Scott
Janke, known to me and to me known to be the City Manager for the City of Seward,
Alaska, and acknowledged to me that he knew the contents of the foregoing document and
executed the foregoing document on behalf of the City of Seward for the uses and
purposes therein set forth.
WITNESS my hand and notarial seal the day and year first herein above written.
r
OFF!,"' ✓% / j
Yv 7r No ary Public in and for Alaska
rfO A.-
m My Commission Expires: 7-Z 7
STATE OF•A-L A Wa-6h►1nlzr )
(dun �a y aj: 41 AJ6, ) SS.
T-I=I-RRD4UDICIAL DISTRICT JUDICIAL DISTRICT )
THIS CERTIFIES that on this may of "a , 2000, before me, a Notary
Public in and for Alaska, personally appeared t_.JQhn f . �'oMrL tf= , to me known
to be the person who executed the foregoing instrument on behalf of Icicle Seafoods, Inc.
:F e/he acknowledged to me that ire/he executed the same freely and voluntarily on
behalf of said corporation. S*e/he stated to me under oath that s4e/he is the
��, ��' zlu�.t�u► of the said corporation, has been authorized by the Board of Directors
of the said corporation to execute said instrument on its behalf, and has full power and
authority to execute the same.
IN WITNESS WHEREOF, I hereunto set my hand and seal.
�G1A B. '
ON 3 6
NOTAq y di Notary Public in and for Ala-ska- i t 1u51� r
My Commission Expires:
N0 PUBL�G ti O
7 ✓GNE 15,20o CA�
JAD0CS\43374102\AMM0052 OF WAS Page 6
59
}6xf OCT
EXHIBIT A
Legal Description
Lots 2A and 3A, Block 2, according to the Plat of MARINA SUBDIVISION,
BLOCK 2 REPLAT, filed under Plat Number 96-28, in the Seward Recording
District, Third Judicial District, State of Alaska.
000382 . NAPR -U Pass
33--tL
SEWARD REQUESTED BY
RECORDING DISTRICT
JAD0GS\43374102\AMM00524.4 Page 7
60
LANDLORD CONSENT
City of Seward
("Lessor")
A. Lessor and Icicle Seafoods,Inc. ("Lessee")are parties to the Leases described on Exhibit A
(the"Leases").
B. With Lessor's prior consent granted on September 15, 1994(recorded in book 74,Page 453
of the Seward Recording District), Lessee mortgaged and assigned for security purposes its leasehold
interest in the Leases to the UNITED STATES OF AMERICA, ACTING BY AND THROUGH THE
SECRETARY OF COMMERCE, NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION,
NATIONAL MARINE FISHERIES SERVICE, whose address is 1315 East-West Highway, Silver Spring,
Maryland, 20910 ("Beneficiary") under the terms of the Leasehold Deed of Trust and Assignment of
Lessee's Interest in Leases dated as of October 17, 1994, recorded in Book 74, Page 441 of the Seward
Recording District(the"Deed of Trust").
C. Lessee now desires to amend the Deed of Trust to increase the amount of the obligation
secured by the Deed of Trust to reflect the additional loan Beneficiary is advancing to Lessee.
Agreement
1. Lessor consents to Lessee's amendment to the Deed of Trust.
2. Lessor certifies to Lessee and Beneficiary:
a. Lessor is the present landlord under each of the Leases.
b. To Lessor's knowledge, the Leases are presently in full force and effect; there exists no
default under the Leases, and no event which would constitute a default, with notice of
lapse of time or both,has occurred and is continuing.
C. There are no unrecorded amendments or modifications of the terms and provisions of the
Leases.
Lessor: CITY OF S W
By 41d
Item-,
ATTEST: /4a4/ IV "0. V
Its C;
ky S
4 is
� 4!
tL
67 7t 0 q J
� 7
t e
♦ i
jAc00382\m18140\01702 Landlord Consent-Seward
61
APPROVED AS TO FORM:
By
City Attorney
STATE OF ALASKA )
)ss.
THIRD JUDICIAL DISTRICT )
On this Z q day of `/y-4 1998, before me, a No Public in and for the State of
Alaska, duly co ssioned and sworn, personally appeared S C C/ �� r� � to me
known to be the"j A'/k"te'- of a s ,�'L which executed the within and
foregoing instrument, and acknowledged before me that the said instrument was his free and voluntary act
and deed,as partner,for the uses and purposes therein mentioned.
WITNESS my hand and official seal the day and year in this certificate above written.
nv /
(S' afore)
OFFICIAL SEAL
,State ref,4108 4a
YVETTE G.WELSH (Print Name)
NOTARY PUBLIC
NOTARY PUBLIC in and for the State of Alaska.
My Commission Expires 7/ 147
2
j:\c003821m18140\01702 Landlord Consent-Seward
62
Exhibit A
Legal Descriptions and Leases
1. PARCEL I:
New Legal Description:
Lots Two A (2A) and Three A (3A), Block Two (2), according to the Plat of MARINA
SUBDIVISION,BLOCK 2 REPLAT,filed under Plat No. 96-28, in the Seward Recording District,
Third Judicial District, State of Alaska.
Old Legal Description:
Lots Two (2) and Three (3), Block Two (2), according to the Plat of MARINA SUBDIVISION,
filed under Plat No. 89-10, in the Seward Recording District, Third Judicial District, State of
Alaska.
Lease:
Lessor: City of Seward
Lessee: Icicle Seafoods,Inc. an Alaskan corporation
Dated: July 11, 1988
Memorandum of Lease thereto
Dated: August 23, 1988
Recorded: August 30, 1988
Book/Page: 51/954
As amended under Memorandum of Amendment
Dated: June 8, 1989
Recorded: July 19, 1989
Book/Page: 55/210
And all amendments thereto.
-END-
RETURN TO:
Chief Financial services Division
National Marine Fisheries Service
1335 East-West Highway
Silver Spring,Maryland 20910
3
j:\c00382\m18140\01702 Landlord Consent-Seward
63
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, " and ICICLE SEAFOODS,
INC. , hereinafter referred to as "LESSEE, " hereby agree that the
Lease between them for a portion of Lot 10 and all of Lots 11-15,
Seward Industrial Park, dated July 11, 1988, is hereby amended as
follows:
DELETE the first recital paragraph and substitute in its stead the
following:
WHEREAS, Lessee is currently occupying the premises
described below as Lessee under four (4) different long
term lease agreements, three of which were entered into
on October 1, 1973 , and the fourth on February 4, 1979,
which leases the parties by this agreement wish to and
do hereby supersede and cancel as of the effective date
of this Lease; and
DELETE Section 1. 1 within Article 1. LEASED LAND on Page 1, and
substitute, in its stead, the following:
1. 1 Legal Description. City leases to Lessee, and
Lessee leases from the City that certain land
herein called "Leased Land, " situated in Seward,
Alaska,,, consisting of approximately 4.93 acres
(214 ,804 sf) , as shown on Exhibit "A" (substitute)
attached hereto and more particularly described as
follows:
Lots 2 and 3 , Block 2 , Marina Subdivision, as
recorded by Plat 89-10 on 4/19/89 in the Seward
Recording District, Third Judicial District, State
of Alaska.
DELETE the first paragraph of Section 6. 2 ARTICLE 6. RENT and
substitute, in its stead, the following:
For the period August 10, 1988, through December 31,
1994 , the rental rate shall be $. 36 per square foot per
annum. In January, 1995, and every fifth (5th) year
thereafter, the city, at its own expense, shall employ
an independent MAI-certified appraiser to determine the
fair market rental value of the Leased Land, exclusive
of Lessee's improvements, at the highest and best use of
the Leased Land, based upon applicable land use
regulations.
64
In all other respects, the lease is to remain unchanged and in
full force between the undersigned.
IN WITNESS WHEREOF, the parties to have executed this
document, and it is effective this day of ,
1989 .
LESSOR: LESSEE:
CITY OF SEWARD, ALASKA ICICLE SEAFOODS, INC.
'A� , By: 01 - ro
DARRY CHAEFERMEYE ROBERT F. BROPHY
CITY MANAGER ITS PRESIDENT
ATTEST: APPROVED AS TO FORM
PERKINS COIF, ATTORNEYS FOR
,r City of Seward, Alaska
`7
L DA S. NNRPHY, ` CM
FRED ARVIDSON, CITY ATTORNEY
C TY CLERK
(City Seal)
STATE OF ALASKA )
ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that, on the day of
1989, before me, the undersigned, a Notary Public in and/ for the
State of Alaska, duly commissioned and sworn as such, personally
appeared Darryl Schaefermeyer, City Manager of the City of Seward,
known to me and to me known to be the person who executed the
foregoing instrument on behalf of the City of Seward, and who
acknowledged that he signed the same freely and voluntarily for
the uses and purposes therein contained.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
my Notarial Seal the day and year hereinabove written.
NOTARY PUBLIC IN AND FOR ALASKA
My Comm. expires__ --
-2-
65
STATE OF WASHINGTON }
} ss.
COUNTY OF KING }
THIS IS TO CERTIFY that, on the day of � ,
1989, before me, the undersigned, a Notary Public in---`and for the
State of Washington, duly commissioned and sworn as such,
personally appeared Robert F. Brophy, President, of Icicle
Seafoods, Inc. , who is known to me and to me known to be the
person who executed the foregoing instrument on behalf of Icicle
Seafoods, Inc. , and who acknowledged that he signed the same
freely and voluntarily for the uses and purposes therein
contained.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
my Notarial Seal the day and year hereinabove written.
r
NOTARY PUBLIC IN AND FOR TIJ9 STATE
OF WASHINGTON, residing at
My Appointment expires ( '!r " g cD
-3-
66
Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2018-056
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,APPROVING A LICENSE FOR REAL PROPERTY WITH THE
UNITED STATES GOVERNMENT FOR CONTINUED USE OF A PORTION
OF LOT 1 BLOCK 10 FOURTH OF JULY CREEK SUBDIVISION, TO BE
USED FOR A WEATHER RADIO TRANSMITTER SITE
WHEREAS,the United States has leased from the City a portion of the northeast corner of
Lot 1, Block 10, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Plat 97-27
Seward Recording District, Third Judicial District, State of Alaska; and
WHEREAS,the National Oceanic and Atmospheric Administration(NOAA)would like to
continue using the site for a weather radio transmitter site; and
WHEREAS,it is in the public's best interest to provide the citizens of the City of Seward
accessibility to weather radio broadcasting information as a public service without charging rent;and
WHEREAS, the City Council has determined that continued use of the site by the United
States for the purpose described herein would be in the public's interest.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1. The City Manager is authorized to enter into a License for Real Property
Agreement with the United States Government,in the form presented at this meeting,for the use of a
portion of the Northeast corner of Lot 1,Block 10,Fourth of July Creek Subdivision,Seward Marine
Industrial Center, Plat 97-27, Seward Recording District, Third Judicial District, State of Alaska.
Section 2. Following a public hearing, it is determined to be in the public's interest to
provide the site for the use of a weather radio transmitting site without charging rent.
Section 3. This resolution shall take effect thirty(30) days following approval and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 25t'
day of June, 2018.
THE CITY OF SEWARD,ALASKA
David Squires, Mayor
67
Agenda Statement
Meeting Date: June 25, 2018 '
To: City Council
Through: Jim Hunt, City Manager
From: Norm Regis, Harbormaster
Agenda Item: License for real property with N.O.A.A. for Lot 1, Block 10, Fourth of July
Creek Subdivision, Seward Marine Industrial Center
BACKGROUND & JUSTIFICATION:
The City Administration and the United States entered into a Lease Agreement in 1987 to allow a
weather station on a small piece of land owned by the City in the Seward Marine Industrial Center
(SMIC). NOAA provides a service to the public with this weather station and the City has not
charges rent for such uses of its land.
This Lease has been renewed twice since 1987 in Resolution 1999-049 and 2007-093.
The existing lease expired September 30, 2017 and the United States is requesting to renew their
lease in the farm of a License for Real Property agreement that would retroactively extend the term
of this lease.
The License for Real Property presented today for Councils approval would allow NOAA to
continue using a portion of Lotl, Block 10, Fourth of July Creek Subdivision, Seward Marine
Industrial Center,Plat 97-27, Seward Recording District,Third Judicial District,State of Alaska,as a
weather radio transmitter site. The term would be extended through September 3 0, 2027.
The License for Real Property is a tract of land measuring 300 square feet, more or less.
INTENT: Approve a License for Real Property with the United States(NOAA)for a weather radio
transmitting site.
CONSISTENCY CHECKLIST: Yes No N/A
I. Comprehensive Plan (page 11-27, 12.1): emergency preparedness X
2. Strategic Plan (page 7): Expand development in SM1C X
3. Other (list):
68
FISCAL NOTE: The City would not receive rent but would participate in providing a public
service to residents of Seward and others.
Approved by Finance Department:
ATTORNEY REVIEW: Yes X No Not Applicable
RECOMMENDATION:
That the City Council approve Resolution 2018-056 authorizing the City Manager to enter into a
License for Real Property with the United States Government for continued operations of the
NOAA weather facility in SMIC.
69
U.S. GOVERNMENT LICENSE FOR REAL PROPERTY
G
A O F=
DATE OF LICENSE: LICENSE NO: 18WSWO21ON
THIS LICENSE under the authority of 40 U.S.C. §585, as delegated under 41 CFR§102-73.175, is made and entered into
this date by and between
City of Seward
whose address is:
P.O. Box 167, Seward,Alaska 99664
hereinafter called the Licensor,and the UNITED STATES OF AMERICA, hereinafter called the Government:
WITNESSETH: The parties hereto for considerations hereinafter mentioned, covenant and agree as follows;
1. License of Premises. Licensor owns Property located in Seward,Alaska, (Latitude: 60.10421 N, Longitude:-149.44221
W), ("Property") more commonly known to Licensor as City of Seward. Licensor grants to the Government permission to
continue to maintain, and operate a NWR Transmitter, shown in Exhibit"C" ("Premises")attached hereto and
incorporated herein by reference. Throughout the Term, the Government shall have the right to ingress and egress 24
hours per day and 7 days per week.
2. Term. TO HAVE AND TO HOLD the said Premises for a 20 year term that begins on October 1, 2017 and ends on
September 30, 2037,subject to the termination and other rights as may be hereinafter set forth.
3. Rent. The Government shall pay the Licensor no monetary consideration in the form of rent.
4. Termination. The Government may terminate this License at any time by giving at least 90 calendar days' notice in
writing to the Licensor, and no rent shall accrue after the effective date of termination. Said notice shall be computed
commencing with the day after the date of mailing.
5. Permitted Use. (a) The Government may use the Premises to install and maintain its instrumentation and related
equipment, cables, accessories and/or improvements (collectively, the "Equipment") in connection with the NWR
Transmitter. Further, along with the use and operation of the Government's Equipment, the Government may perform
associated installation, construction, maintenance, operation and subsequent repair(s), replacement and upgrade of
Equipment. Licensor's execution of this License will signify Licensor's acknowledgement of the Government's
Equipment and use of the Premises. (b) The Government may take appropriate means to secure the Government's
Equipment. (c) The Government has the right to maintain, modify, supplement, replace, or upgrade the Equipment at
any time during the term of this License without the consent of the Licensor.
6. Interference. (a)As disclosed by the Licensor, the Government represents and warrants that its use of the Premises
will not interfere with existing user(s)on the Property, as long as the existing user(s)operate and continue to operate
in accordance with all applicable laws and regulations. (b)After the date of this License, the Licensor will not grant a
lease, license or any other right or encumbrance to any third party for the use of the Property, if such use may in any
way adversely affect or interfere with the Equipment, operations, or the rights of the Government under this License.
(c) Licensor will not use, nor will Licensor permit its employees, lessees, licensees, invitees or agents to use, any
portion of the Property in any way which interferes with the Equipment, operations, or the rights of the Government
under this License. In the event of such interference, Licensor will cause such interference to cease within twenty-
four (24) hours after receipt of notice of interference from the Government. In the event any such interference does
not cease within the aforementioned cure period then the Government will have the right to terminate this License.
The Licensor will not be responsible for interference which is beyond the reasonable control of the Licensor, as
determined by the Government.
Page 1 of 3
70
7. Access. For the duration of this License, and at no additional cost to the Government, the Licensor is responsible for
ensuring the Government, its employees, contractors, subcontractors and licensees will have access to the Premises
at all times. The Licensor shall be responsible for securing any easement, right of entry, or other access agreement
necessary to ensure the Government's access to the Premises from a nearby public roadway. When applicable, the
Licensor will provide the Government with at least two keys or the combination or code for any security fencing.
8. Equipment. Licensor covenants and agrees that no part of the Equipment placed or affixed to the Property by the
Government will become,or be considered part of, the Premises;the Government's Equipment will remain the
Property of the Government.
9. Operations, Maintenance& Utilities. (a)The Government will keep and maintain the Government's Equipment in
good condition, reasonable wear and tear excepted; (b) Licensor will maintain, repair, and keep in good and
tenantable condition, the Premises and the access onto the Property; (c)The Licensor shall not be required to
provide the Government electricity or any other utilities for the Government's Equipment.
10. Taxes and Assessments.The Government shall not be responsible for the payment of any taxes, assessments, tax
escalations or special assessments levied on the Premises.
11. Hazardous Materials. The Licensed premises shall be free of hazardous materials according to applicable federal,
state, and local environmental laws and regulations.
12. Authority to License. Licensor covenants that Licensor's interest in the Property is sufficient to enter into this
License, and that the Government may reasonably request evidence of said interest.
13. Successors Bound. This License shall bind, and inure to the benefit of, the parties and their respective heirs,
executors, administrators, successors and assigns.
14. Claims. For the purposes of this License, the Government is considered to be self-insured. The Government agrees
to promptly consider and adjudicate any claims which may arise out of use of the Licensor's Property/Premises by the
Government or duly authorized representatives or contractors of the Government and to pay for any damage or injury
as may be required by applicable law. Such adjudication may be pursued under the Federal Tort Claims Act, 28
U.S.C. §2671 et seg., the Federal Employees' Compensation Act, 5 U.S.C. §8101 et seq., or such other legal
authority as may be pertinent.
15. Correspondence.
Correspondence to Licensor is to be sent to:
City of Seward
P. O. Box 167
Seward,AK 99664
Attn: Norm Regis, Harbormaster AMPE
Correspondence to the Government is to be sent to:
United States Department of Commerce
NOAA Real Property Management Division
Western Regional Center Building 1
7600 Sand Point Way NE Seattle,WA 98115
Attn: Contracting Officer
16. Exhibits and Attachments. The following are attached and made a part hereof:
A. Exhibit"C", Depiction of the Premises (1 Page)
17. The following were made in this License prior to its execution: None
18. This License number 18WSW0210N replaces and succeeds License number 98-ABF-686N.
Page 2 of 3
71
IN WITNESS WHEREOF, the parties hereto have hereunto subscribed their names as of the date first above written.
LICENSOR: City of Seward
BY
Signature Name (Print), Title, & Date
IN THE PRESENCE OF:
BY
Signature Name (Print), Title, &Date
UNITED STATES OF AMERICA
Signature
Department of Commerce Name of Contracting Officer(Print)& Date
Real Property Contracting Officer
Page 3 of 3
72
Sponsored by: Oates
bw CITY OF SEWARD,ALASKA
RESOLUTION 2007-093
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,APPROVING A SUPPLEMENTAL LEASE AGREEMENT WITH
THE UNITED STATES FOR CONTINUED USE OF A PORTION OF LOT 19
BLOCK 10,FOURTH OF JULY CREEK SUBDIVISION,TO BE USED FOR
A WEATHER RADIO TRANSMITTER SITE
WHEREAS,the United States has leased from the City a portion of the northeast corner of
Lot 1, Block 10, Fourth of July Creek Subdivision, Seward Marine Industrial Center, Plat 97-27,
Seward Recording District, Third Judicial District, State of Alaska; and
WHEREAS, NOAA would like to continue using the site for a weather radio transmitter
site; and
WHEREAS, it is in the public interest to provide the citizenry of the City of Seward the
accessibility to weather radio broadcasting information as a public service without charging rent;and
WHEREAS,the City Council has determined that continued use of the site by the United
States for the purposes described herein would be in the public interest.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
OF SEWARD, ALASKA that:
Section 1. The City Manager is authorized to enter into the Supplemental Lease Agreement
with the United States,in the form presented at this meeting,for the use of a portion of the northeast
corner of Lot 1,Block 10,Fourth of July Creek Subdivision, Seward Marine Industrial Center,Plat
97-27, Seward Recording District, Third Judicial District, State of Alaska.
Section 2. Following a public hearing,it is determined to be in the public interest to provide
the site for use of a weather radio transmitting site without charging rent.
Section 3. This resolution shall take effect 30 days following adoption and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8th day of
October 2007.
THE CITY OF SEWARD,ALASKA
r••• Vanta Shafer,Mayor
73
SEWARD,ALASKA
RESOLUTION 2007-093
AYES: Dunham, Valdatta, Bardarson, Thomas, Amberg, Shafer
NOES: None
ABSENT: Schafer
ABSTAIN: None
ATTEST:
J n Lewis
Ci y Clerk, CMC
(City Seal) IWO
�'', ' ��••��• �°4i°°e®�,
vo
SE
J • �
• O
•
dry: •
, ♦g Q. it
74
Council Agenda Statement
Meeting Date: October 8,2007
Through: Philip Oates, City Manager' `
From: Scott Ransom, Harbormaster
Agenda Item: Authorizing the City Manager to enter into a
Supplemental Lease Agreement with the United
States for continuing use of land by NOAA for a
weather station
BACKGROUND &JUSTIFICATION:
The City and the United States entered into a Lease Agreement to allow a weather station on a small
piece of land owned by the City in the Seward Marine Industrial Center("SMIC"). NOAA provides
a service to the public with this weather station and the City has not charged rent for such use of its
land.
The existing Lease expired September 30,2007 and the United States is requesting a supplemental
agreement that would retroactively extend the term of the lease.
The Supplemental Lease Agreement presented today for council's approval would allow NOAA to
continue using a portion of Lot 1, Block 10, Fourth of July Creek Subdivision, Seward Marine
Industrial Center,Plat 97-27,Seward Recording District,Third Judicial District,State of Alaska,as a
weather radio transmitter site. The lease term would be extended through September 30,2017. All
other terms of the Lease remain unchanged.
CONSISTENCY CHECKLIST:
Where applicable,this resolution is consistent with the Seward City Code,Charter,Comprehensive
Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
FISCAL NOTE:
The City would not receive rent, but would participate in providing a public service to residents
of Seward and others.
Approved by Finance Department J�,cr�'�4aa,ti,•vG,
0
RECOMMENDATION:
Council approves Resolution 2007- 013 authorizing the City Manager to enter into a Supplemental
Lease with the United States for continued operation of the NOAA weather facility in SMIC.
r�
75
Ir
' ® SLA N 0 1 DATE:
SUPPLEMENTAL LEASE AGREEMENT LEASE NO 98ABF686N
ADDRESS PREMISES Seward Marine Industriat Center RE-06 1, Seward,Alaska 99664
THIS AGREEMENT. made and entered into this date by and between: CITY OF SEWARD
j whose address is: P. O. Box 16T, Seward, Alaska 99664 li
hereinafter i,alled the Lessor, and the UNITED STATES OF AMERICA, hereinafter called the Government:
'AlHEREA'S,, the parties hereto desire to renew the term of the, above Lease:
N(')',,V 7 HEPEFORE, these oarties for the considerations hereinafter mentioned covenant and agree that the saki Lease is amended
effective October I. 2007, as follows:
Paragraph I of the lease is amended its follows:
711e Lessor hereby leases to the Government the following described prernisesi
A parcel of land located at the northeast corner of Lot 1, Block 10, Fourth of July Creek Subdivision,
Seward Marine Industrial Center. Plat 97-27, Seward Recording District, Third Judicial District, State of
Alaska. as shown on Exhibit C, to be used for a weather radio transmitter site.
Paragraph 2 of the lease is amended as follows.
To Have and to Hold the said premises with their appurtenances for the tern) beginning on October 1. 2007 through `�
September 30, 2017. subject to termination rights as may be. hereinafter set forth.
All other terms and conditions of the lease shall remain in force and effect.
IN bVl INESS LNHEREOF, the parties hereto have hereunto subscribed their names as of the date first above written,
III �f
Lf-.SSOR: CITY OF SEWARD
-PHILIP OAfES' CITY MANAGER
IN THE PRESENCE OF (witnessed by):
(Signature) (Address)
UNITED STATES 0 ERICii
&'
B,,: li
icia Oef e.Real Property Contracting Officer
By:
aren Broo,
76
Sponsored by: Janke
CITY OF SEWARD, ALASKA
RESOLUTION 99-049
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING A RENEWAL OF THE LONG TERM LEASE,
AT LESS THAN FAIR MARKET VALUE,TO THE U. S. GOVERNMENT,
NATIONAL OCEANIC ATMOSPHERIC ADMINISTRATION, NATIONAL
WEATHER SERVICE, FOR A PUBLIC SERVICE WEATHER RADIO
TRANSMITTER SITE IN THE SEWARD MARINE INDUSTRIAL CENTER
WHEREAS,the City of Seward leased a parcel of land,Resolution 87-091 &Lease 87-061,
at the Seward Marine Industrial Center (SMIC) to the U.S. Government, National Oceanic
Atmospheric Administration (NOAA),National Weather Service since October 28, 1987; and
WHEREAS, the presence of a reliable public weather radio transmitter in the Seward area
is important to the safety and well being of the fishing, recreational, work and cargo boats and
vessels within the Resurrection Bay and Gulf of Alaska; and
WHEREAS, the amount of land leased is minimal and located in an otherwise unusable
location within SMIC ; and
WHEREAS, the service provided is in the public interest and thus would not require an
appraisal or rental at fair market value;
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA,that:
Section 1. The City of Seward City Council authorizes the City Manager to execute a ten-
year lease renewal with U.S. Department of Commerce, NOAA for a parcel of land in the City of
Seward for the continued use as a weather radio transmitter site
Section 2. This resolution shall take effect immediately upon its adoption
PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this 26 day
of April, 1999.
THE CITY OF SEWARD, ALASKA
77
CITY OF SEWARD, ALASKA
RESOLUTION NO. 99-049
a
Lowell R. Satin, Mayor
AYES: Callahan, Gage, King, Orr, Shafer, Satin
NOES: None
ABSENT: Blatchford
ABSTAIN: None
ATTEST:
Patrick Reilly
City Clerk
1 }
i
`a r
78
Delphin Street MM,
17 0
—————————————-WW'Tw— ————————————
wsz—
M-15
----------
Tract A
----------
.a
LEGEND
lad I
0.1
R I-,
'L.1 2
---------------------
------------ --
A—
Tract A W.
------------ ---- KPU FILE 97-108
c-)ad
F—th V Juba/Creek Sbdi.i�
Seward 1,d—trail Center
Tract A
-------------- Lf fl&i 2
Bl-k fo ------ -------- --- ---- oivs
Pteil'A'
NOAA Lease Site
79
NOAA Lease Site
ViA
7.1
�r
t
tip
,v
+ t
a �
r
KPB Parcel Viewer r
Printed. Jun 04, 2018
NOAA LEASE SITE
Public Weather Radio Transmitter
SEWARD MARINE INDUSTRIAL CENTER
RE - 061
All that real property situated in the City of Seward, Alaska, Kenai Peninsula Borough,
State of Alaska, being more particularly described as follows:
Commencing at the northeast corner of Lot 1, Block 10, Fourth of July
Creek Subdivision Seward Marine Industrial Center PIat 97-27 Seward
Recording District, Third Judicial District, State of Alaska which is also the
point of Beginning; thence Easterly along an extension of the north line of
Lot 1, 20 feet; thence Southerly 15 feet parallel to the east boundary of Lot
1; thence Westerly 20 feet to the easterly property line of said Lot 1; thence
northerly along said easterly property line of Lot 1 to the POINT OF
BEGINNING, and containing 300 square feet more or less.
1 I 255 00'
al C I Lot I N I NO°34'13"W
2 026 AC
Lot 1
rn �
37.823 S.F.OD
c
.r a
I
304.80' 30,130, 255.00' 60'
SO 36'07"E
_ Traci
50°35b7"E 334.8Q' o
'on 5 7n 364.80 Road- 0 50�36'07"E 10 5 <
` 364.80'
619.79'
wl ,
I 1�J41'07'37"W. 3 3
NI // J` / 34.93' 3 v
V / : n ui
w pra / �r 1 In c r N
15C. N N / n r
/ ,t2 0 Oi � 10,
-` o w I / ,/ CC
See Detail 'C' W Ln Inno
cor Lot Block10z 34.93' 7
r
1886 S.F. 501' "E
0T37
a o l o l Detail C 6D 00'
,•n
Scale 1' a 54' S0"34'28'
V) ci I a
r I U I �O
I
NOAA Lease
o I b I
SMIC to I I
RE - 061 !
Revised 9/26/98 Exhibit "C"
81
Sponsored by: Hunt
Introduction: June 11, 2018
Public Hearing: June 25, 2018
Enactment: June 25, 2018
CITY OF SEWARD,ALASKA
ORDINANCE 2018-003
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, TO REVISE SEWARD CITY CODE 3.40, GRIEVANCE
PROCEDURE
WHEREAS,the current grievance procedure was drafted in 1977 and last updated in 2000;
and
WHEREAS, the current grievance procedure requires a citizen appeal board for all
grievances, regardless of the nature of the complaint; and
WHEREAS, the current time limits are not practical; and
WHEREAS,the current procedure provides the same process for all grievances regardless of
due process rights; and
WHEREAS, the proposed amendments provide more practical time limits; and
WHEREAS, the proposed amendments provide a heightened procedure for significant
disciplinary matters.
NOW THEREFORE,THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,
HEREBY ORDAINS that:
Section 1. Seward City Code Section 3.40 is amended as follows:
Chapter 3.40. Grievance Procedure
3.40.010. Policy
3.40.015. Discussion of a problem with supervisor.
3.40.020. Definition of a grievance.
3.40.025. Supervision of grievance procedure.
3.40.030. Grievance procedure steps.
3.40.035. Employee representation.
3.40.040. Time limits.
3.40.045. Extension of time limits.
3.40.050. No discrimination or reprisals.
82
CITY OF SEWARD, ALASKA
ORDINANCE 2018-003
3.40.010. Policy.
It is the policy of the City of Seward to treat all employees equitably and fairly in matters
affecting their employment. Pursuant to SCC 3.25.035(a), probationary employees, including
seasonal employees,are excluded from this grievance procedure,but may approach their supervisor
or the appropriate authority to report violations of City code or policy. The presentation of any
grievance shall be the right of each employee without fear of reprisal.
The purpose of this article is to resolve disputes at the lowest level possible. Informal
resolution is encouraged. The City has an open-door policy and all employees are encouraged to
discuss matters of concern with members of management, including the City Manager at any time,
without having to file a formal grievance.
(Ord. 437, 1977)
3.40.015. Discussion of a problem with supervisor.
Any employee having a problem regarding employment shall first and promptly discuss the
problem with the immediate supervisor.If the problem is not settled and the problem is defined as a
grievance, the employee has the right to present the grievance in accordance with the procedure
outlined in Section 3.40.030. No employee shall be intimidated, harassed, retaliated against or
reflect in their evaluation because they bring forward a problem, concern or grievance. However,
willful abuse of the grievance policy may be subject to discipline in accordance with Section
3.55.020.
(Ord. 437, 1977; Ord. 2000-011, § 1, 2000)
3.40.020. Definition of a grievance.
A grievance is a written complaint by the employee or group of employees alleging a specific
violation of rights under or failure to apply a section or sections of the city charter, city code,
personnel rules and regulations or misapplication or interpretation thereof,or departmental rules and
regulations, which directly pertain to the terms or conditions of employment of such employee or
group of employees by the City of Seward.
A grievance is not to resolve general complaints or concerns regarding other employees.
Complaints are resolved at the department level. Personnel policies and Code guide the behavior
and actions of employees; the grievance process addresses the violation, misapplication or
interpretation, or neglect of those policies and Code.
Where there is disagreement about whether a matter is defined as a complaint or a grievance,
the appointing authority's decision shall prevail. Where an employee disagrees with the appointing
83
CITY OF SEWARD, ALASKA
ORDINANCE 2018-003
authority's decision,the employee may document the disagreement for placement in their personnel
file.
(Ord. 437, 1977)
3.40.025. Supervision of grievance procedure.
The appointing authority (City manager, or in regard to the City Clerk's office, the City
Clerk,) shall oversee the handling of all employee grievances so that they are processed in
accordance with the procedures stated in this chapter. Supervisors and department heads shall keep
the appointing authority and the Personnel Officer informed of all grievances in progress.
Assistance in understanding the grievance procedure will be provided by the Personnel
Officer if requested.
(Ord. 437, 1977; Ord. 610, 1988; Ord. 95-05)
3.40.030. Grievance procedure steps.
A. General grievances.
Disciplinary grievances involving dismissal, demotion, or unpaid suspension of more than
one week for regular non-appointed employees will proceed directly to hearing in section B below.
All other grievances shall be handled in the following manner:
Step 1. An employee shall present their grievance to their immediate supervisor within fifteen(15)
working days from the time of occurrence of the problem. The supervisor shall attempt to resolve the
problem within ten (10) working days after the grievance is timely received from the employee.
Step 2. If the employee has not received an answer from the immediate supervisor within ten (10)
working days, or if the employee feels the answer received is not satisfactory, he/she will reduce to
writing the facts and circumstances of the grievance and present the written statement to their
Department Head within ten (10) working days after the supervisor's deadline in Step One. The
Department Head will investigate the grievance and meet with the employee to discuss the grievance
within five(5)working days. The Department Head will notify the employee of their decision within
five (5) days following the meeting date.
In regard to employees of the Office of the City Clerk,non-disciplinary grievances not resolved at
Step 1 will be forwarded to Council in a confidential informational memorandum and will not
proceed to Step 3.
84
CITY OF SEWARD, ALASKA
ORDINANCE 2018-003
Step 3. If the employee has not received an answer from the Department Head within five (5)
working days,or if the employee believes the answer received is not satisfactory,he/she may appeal
in writing to the City Manager within five (5)working days after the supervisor's final deadline in
Step Two. The City Manager,or Acting City Manager,will investigate the grievance and meet with
the employee to discuss the grievance within five (5)working days. The City Manager, or Acting
City Manager,will notify the employee of their decision within five(5)days following the meeting
date. For any grievance not involving unpaid suspension of more than one week, demotion or
termination of employment, the decision of the City Manager is final.
The City manager shall maintain a confidential file containing all Step 3 grievance responses and
will provide a general summary of the prior year for review by the City Council annually in
executive session, without identifying specific employee information.
B. Significant disciplinary grievances.
a. For disciplinary actions involving dismissal,demotion,or unpaid suspension of more
than one week for regular non-appointed employees, including employees of the
Office of the City Clerk, an employee may request a hearing before an appeal board
by submitting a request for a hearing to the appointing authority within five working
days after receiving the decision from which the appeal is taken, not including the
day the decision is received. The appeal board shall consist of three people chosen
from a list of available supervisory and non-supervisory local representatives who are
not City of Seward employees or elected city officials. The appointing authority will
select one person from the list,the employee shall select one person from the list and
the third person shall be mutually agreed upon. In the event of inability to agree on a
third member, the employee and appointing authority will alternately strike names
from the list until only one name remains. The remaining name will be the third
board member. The employee will be given the first opportunity to strike a name
from the list. The appeal board will agree to designate one of its members as
chairman.
b. The board shall conduct a closed hearing expeditiously and,in a manner,to obtain a
clear understanding of the facts. The procedure shall be informal. Technical rules
regarding evidence and witnesses do not apply.Witnesses will be considered on duty
status if they would otherwise be on duty at the time of the hearing. Witnesses shall
be encouraged to express themselves fully without fear of intimidation or reprisal.
The hearing shall be recorded.
C. The sole issue to be determined by the board is whether there was just cause to
substantiate the discipline and/or the severity of the discipline. The board shall
submit a written report of its findings and determinations to all interested parties
within five working days after hearing testimony. The decision of the board is the
final step within the administrative process of the City of Seward.
(Ord. 437, 1977; Ord. 95-05; Ord. 2000-011, §1, 2000)
85
CITY OF SEWARD, ALASKA
ORDINANCE 2018-003
3.40.035. Employee representation.
Each employee shall be afforded an opportunity to be represented at each of the above steps
by a representative of his/her choice. Employees shall contact and discuss their problems with their
representative only during break periods,lunch hour,before or after work or at any other time when
they are not on duty. However, grievance hearings may be held during work hours.
(Ord. 437, 1977; Ord. 2000-011, §1, 2000)
3.40.0-40. Time limits.
(a) If the grievance procedures are not initiated within the time limits established by this
chapter,the employee shall be considered as having waived his/her right to grieve the
particular violation and initiation of a grievance for the same act or omission is
thereafter barred.
(b) Any grievance not taken to the next step of the grievance procedure within the time
limits established by this chapter shall be considered settled on the basis of the last
reply made and received in accordance with the provisions of this chapter.
(c) If the city fails to meet or answer any grievance within the time limits prescribed for
such action by this chapter, such grievance shall automatically advance to the next
step.
(Ord. 437, 1977; Ord. 610, 1988; Ord. 2000-011, § 1, 2000)
3.40.0-45. Extension of time limits.
The time limits prescribed in this chapter for the initiation and completion of the steps of the
grievance procedure may be extended by mutual consent of the parties so involved. Likewise, any
step in the grievance procedure may be eliminated by mutual consent. Mutual consent shall be
indicated in writing and shall be signed by all parties.Although all efforts should be made to comply
with the time limits for initiation and completion of the steps in this grievance procedure, each time
limit may be waived for excusable neglect or impossibility such as illness or planned leave.
(Ord. 437, 1977; Ord. 610, 1988)
3.40.0650. No discrimination or reprisals.
Employees are entitled to have grievances resolved without fear of recrimination or penalty.
Employees shall be free from interference,restraint, coercion,discrimination or reprisal in utilizing
or for utilizing the grievance procedures contained in this chapter. Employees shall be free from
86
CITY OF SEWARD, ALASKA
ORDINANCE 2018-003
interference, restraint, coercion, discrimination or reprisal in testifying in a grievance procedure
conducted under this chapter.
(Ord. 437, 1977; Ord. 92-23)
Section 2. This ordinance shall take effect ten days following its enactment but does not
apply to current grievances at Step 2 or above.
ENACTED by the City Council of the City of Seward, Alaska,this 25t' day of June,2018.
THE CITY OF SEWARD, ALASKA
David Squires,Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Brenda J. Ballou, MMC
City Clerk
(City Seal)
87
REDLINED VERSION
Sponsored by: Hunt
Introduction: June 11, 2018
Public Hearing: June 25, 2018
Enactment: June 25, 2018
CITY OF SEWARD, ALASKA
ORDINANCE 2018-003
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, TO REVISE SEWARD CITY CODE 3.40, GRIEVANCE
PROCEDURE.
WHEREAS,the current grievance procedure was drafted in 1977 and last updated in 2000;
and
WHEREAS, the current grievance procedure requires a citizen appeal board for all
grievances, regardless of the nature of the complaint; and
WHEREAS, the current time limits are not practical; and
WHEREAS,the current procedure provides the same process for all grievances regardless of
due process rights; and
WHEREAS, the proposed amendments provide more practical time limits; and
WHEREAS, the proposed amendments provide a heightened procedure for significant
disciplinary matters.
NOW THEREFORE,THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA,
HEREBY ORDAINS that:
Section 1. Seward City Code Section 3.40 is amended as follows:
(Deletions are Bold Strikethrou Additions are Bold Underline)
Chapter 3.40. Grievance Procedure
3.40.010. Policy
3.40.015. Discussion of a problem with supervisor.
3.40.020. Definition of a grievance.
3.40.04725. Supervision of grievance procedure.
3.40.025. Diseussion of a problem with sup
3.40.030. Grievance procedure steps.
3.40.035. Employee representation.
507486\1006\00693554
88
CITY OF SEWARD, ALASKA
ORDINANCE 2018-003
3.40.045. Violation of r-oeedur-e.
3.40.0-40. Time limits.
3.40.0-545. Extension of time limits.
3.40.0650. No discrimination or reprisals.
3.40.010. Policy.
It is the policy of the City of Seward to treat all employees equitably and fairly in matters
affecting their employment. Pursuant to SCC 3.25.035(a), probationary employees,including
seasonal employees, are excluded from this grievance procedure, but may approach their
supervisor or the appropriate authority to report violations of City code or policy.
employee of the eity will be pr-ovided ample oppor-tunity to tinder-stand and r-esolve matters.
affeeting employment whieh the employee doetiments as being a violation of r-tiles and
regulatio The presentation of any grievance shall be the right of each employee without fear of
reprisal.
The purpose of this article is to resolve disputes at the lowest level possible. Informal
resolution is encouraged. The City has an open-door policy and all employees are encouraged
to discuss matters of concern with members of management,including the City Manager at
any time,without having to file a formal grievance.
(Ord 437, 1977)
3.40.015. Discussion of a problem with supervisor.
Any employee having a problem regarding employment shall first and promptly discuss
the problem with the immediate supervisor. If the problem is not settled and the problem is
defined as a grievance,the employee has the right to present the grievance in accordance with
the procedure outlined in Section 3.40.030. No employee shall be intimidated, harassed,
retaliated against or reflect in their evaluation because they bring forward a problem,concern
or grievance. However, willful abuse of the grievance policy may be subiect to discipline in
accordance with Section 3.55.020,
(Ord 437, 1977, Ord 2000-011, $1, 2000)
3.40.020. Definition of a grievance.
A grievance is a written complaint by the employee or group of employees alleging a
specific violation of rights under or failure to apply a section or sections of the city charter,city
code, personnel rules and regulations or misapplication or interpretation thereof, or
departmental rules and regulations, which directly pertain to the terms or conditions of
employment of such employee or group of employees by the City of Seward.
89
CITY OF SEWARD, ALASKA
ORDINANCE 2018-003
A grievance is not to resolve general complaints or concerns regarding other employees.
Complaints are resolved at the department level. Personnel policies and Code guide the
behavior and actions of employees; the grievance process addresses the violation,
misapplication or interpretation, or neglect of those policies and Code.
Where there is disagreement about whether a matter is defined as a complaint or a
grievance,the appointing authority's decision shall prevail. Where an employee disagrees with
the appointing authority's decision, the employee may document the disagreement for
placement in their personnel file.
(Ord. 437, 1977)
3.40.0-125. Supervision of grievance procedure.
The appointing authority(City manager,or in regard to the City Clerk's office,the City
Clerk shall oversee the handling of all employee grievances so that they are processed in
accordance with the procedures stated in this chapter. Supervisors and department heads shall keep
the appointing authority and Personnel Officer informed of all grievances in progress.
Assistance in understanding the grievance procedure will be provided by the Personnel
Officer if requested.
(Ord 437, 1977; Ord 610, 1988; Ord 95-05)
employment of sueh employee or- gr-oup of employees_by the City of Seivar-d.
emoWyee-
(Ord-. 4 ' 977)
90
CITY OF SEWARD, ALASKA
ORDINANCE 2018-003
defined a - . �,the employee has the right to present the gr4elvanee in flee-or-danee-A,itk
(Ord 43 9 77. Opd-. 2000 011 R 1 2000)
3.40.030. Grievance procedure steps.
A. General grievances.
Disciplinary grievances involving dismissal, demotion, or unpaid suspension of more
than one week for regular non-appointed employees will proceed directly to hearing in section
B below. All other grievances shall be handled in the following manner:
Step 1. The aggr-ieved employee or-gr-oup of employees shall present he gr-ievanee or-ally to th
immediat within five wor-king days of its oeetir-r-enee,not ineluding the day of the
period. The super-visor- shall give an or-a! reply within three wor-king days of the date of
presentation of the g i t ineluding the date of presentation-.
An employee shall present their grievance to their immediate supervisor within fifteen (15)
working days from the time of occurrence of the problem. The supervisor shall attempt to
resolve the problem within ten (10)working days after the grievance is timely received from
the employee.
Step 2• , s shall e r-edueed to
wr-iting,dated,signed by the aggrieved employee or-gr-oup of employees and shall be presented
to the department head within wor-king days after- the super-visor- s or-a! reply is given. The
department head shall reply in wr-iting to the- i ithin wor-king days of the date of the
presentation of the wr-itten gr4evanee, not ineluding the day of the presentation.
If the employee has not received an answer from the immediate supervisor within ten (10)
working days,or if the employee feels the answer received is not satisfactory, s/he will reduce
to writing the facts and circumstances of the grievance and present the written statement to
their Department Head within ten (10)working days after the supervisor's deadline in Step
One. The Department Head will investigate the grievance and meet with the employee to
discuss the grievance within five (5) working days. The Department Head will notify the
employee of their decision within five (5) days following the meeting date.
In regard to employees of the Office of the City Clerk,non-disciplinary grievances not resolved
at Step 1 will be forwarded to Council in a confidential informational memorandum and will
not proceed to Step 3.
Step 3. if the_grievanee
Step 2, if the gr-ievanee of any other- employee or- gr-oup of employees is not sett! i H S t e"r 2,
91
CITY OF SEWARD, ALASKA
ORDINANCE 2018-003
infor-mation neetimulated to date to the eity manager- within wor-king days after- the
going to the department head. The eity manager- may meet with the aggrieved employee or-
gr-oup of employees,the immediate super-visor-y personnel and the department head. The eity
manager-shall reply to the gr-ievanee in wr-iting within wor-king days of the date of pr-esentati
of the wr-itten gr-ievanee,not ineluding the day of pr-esentat .If the employee has not received
an answer from the Department Head within five(5)workin2 days,or if the employee believes
the answer received is not satisfactory,s/he may appeal in writing to the City Manager within
five(5)working days after the supervisor's final deadline in Step Two. The City Manager,or
Acting City Manager,will investigate the grievance and meet with the employee to discuss the
grievance within five(5)working days.The City Manager,or Acting City Manager,will notify
the employee of their decision within five (5) days following the meeting date. For any
grievance not involving unpaid suspension of more than one week,demotion or termination of
employment, the decision of the City Manager is final.
The City manager shall maintain a confidential file containing all Step 3 grievance responses
and will provide a general summary of the prior year for review by the City Council annually
in executive session,without identifying specific employee information.
B. Significant disciplinary grievances.
a.
if not satisfied with the deeision of the appointing author-ity in the pr-eeeding
Aelr,For disciplinary actions involving dismissal, demotion, or unpaid
suspension of more than one week for regular non-appointed employees,
including employees of the Office of the City Clerk, an employee or- gr-oup o
eeyees may request a hearing before an appeal board by submitting a request for
a hearing to the appointing authority within five working days after receiving the
decision from which the appeal is taken, not including the day the decision is
received. The appeal board shall consist of three people chosen from a list of
available supervisory and non-supervisory local representatives of management
an' who are not City of Seward employees or elected city officials. The
appointing authority will select one person from the list, the employee shall select
one person from the list and the third person shall be mutually agreed upon. In the
event of inability to agree on a third member,the employee and appointing authority
will alternately strike names from the list until only one name remains. The
remaining name will be the third board member. The employee will be given the first
opportunity to strike a name from the list. The appeal board will agree to designate
one of its members as chairman.
b. The board shall conduct the-a closed hearing expeditiously and in a manner to obtain
a clear understanding of the facts. The procedure shall be informal. Technical rules
regarding evidence and witnesses do not apply.Witnesses will be considered on duty
status if they would otherwise be on duty at the time of the hearing. Witnesses shall
92
CITY OF SEWARD, ALASKA
ORDINANCE 2018-003
be encouraged to express themselves fully without fear of intimidation or reprisal.
The hearing shall be recorded.
C. The sole issue to be determined by the board is whether there was iust cause to
substantiate the discipline and/or the severity of the discipline. The board shall
submit a written report of its findings and determinations to all interested parties
within five working days after hearing testimony. The decision of the board is the
final step within the administrative process of the City of Seward.
(Ord 437, 1977; Ord. 95-05; Ord 2000-011, §1, 2000)
3.40.035. Employee representation.
Each employee shall be afforded an opportunity to be represented at each of the above steps
by a representative of his/her choice. Employees shall contact and discuss their problems with their
representative only during break periods,lunch hour,before or after work or at any other time when
they are not on duty. However, grievance hearings may be held during work hours.
(Ord. 437, 1977; Ord. 2000-011, §1, 2000)
All appeals &om diseiplinary net 0 on shall be initiated at Step 3 of the grievanee
proeedure-.
Wpd-. 4L19;z7)
3.40.045. Violation of roeedure.
Any employee who takes a gr-ievable issue outside the eity without first attempting-to.
resolve said proble - . -- - - Fdaftee with the grievanee proe dure shall be subjeet
diseiplinary aetion. However, nothing in this ehapter shall be deemed to revoke afly leg*t
means of redress to the eour-ts.
l-vrd-.-4 ,-Trr; vP4. 640> > 2000 > > �I
3.40.0-40. Time limits.
(a) If the grievance procedures are not initiated within the time limits established by this
chapter,the employee shall be considered as having waived his/her right to grieve the
particular violation and initiation of a grievance for the same act or omission is
thereafter barred.
93
CITY OF SEWARD, ALASKA
ORDINANCE 2018-003
(b) Any grievance not taken to the next step of the grievance procedure within the time
limits established by this chapter shall be considered settled on the basis of the last
reply made and received in accordance with the provisions of this chapter.
(c) If the city fails to meet or answer any grievance within the time limits prescribed for
such action by this chapter, such grievance shall automatically advance to the next
step.
(d) if the grievanee hearing before the appeal board under step 4 of the gr-ievaftee
pr-oeedur-e is not held within 90 days from the date of the hearing request,the
- . ee shall be eonsider-ed abandoned and the matter- shall end, exeept if
failure to hold the hearing is eaused by the eity's refusal to meet at any time
during that period,it shall be deemed that the eity has eonsider-ed the gr-ievanee
to be in favor- of the grievant and shall resolve the matter- aeeor-dingj�-.
(Ord. 437, 1977; Ord. 610, 1988; Ord. 2000-011, § 1, 2000)
3.40.0-45. Extension of time limits.
The time limits prescribed in this chapter for the initiation and completion of the steps of the
grievance procedure may be extended by mutual consent of the parties so involved. Likewise, any
step in the grievance procedure may be eliminated by mutual consent. Mutual consent shall be
indicated in writing and shall be signed by all parties. Although all efforts should be made to
comply with the time limits for initiation and completion of the steps in this grievance
procedure,each time limit may be waived for excusable neglect or impossibility such as illness
or planned leave.
(Ord. 437, 1977; Ord. 610, 1988)
3.40.0650. No discrimination or reprisals.
Employees are entitled to have grievances resolved without fear of recrimination or penalty.
Employees shall be free from interference,restraint, coercion, discrimination or reprisal in utilizing
or for utilizing the grievance procedures contained in this chapter. Employees shall be free from
interference, restraint, coercion, discrimination or reprisal in testifying in a grievance procedure
conducted under this chapter.
(Ord. 437, 1977; Ord. 92-23)
Section 2. This ordinance shall take effect ten days following its enactment, but does not
apply to current grievances at Step 2 or above.
PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this
day of 2018.
94
Agenda Statement
Meeting Date: ,
To: City Council
Through: City Manager Jim Hun
From: City Attorney
Agenda Item: Grievance Ordinance
BACKGROUND & JUSTIFICATION:
Seward City Code Chapter 3.40 was originally adopted in 1977 and subject to minor
revisions in 1988, 1992, 1995,and 2000. There has been confusion as to what constitutes a grievable
action (a violation of code or policy pertaining to the terms and conditions of employment, i.e.
suspension, demotion,reduction in pay,or discharge)versus a personnel policy complaint having its
own resolution process but not affecting the employee's terms of employment, or an operational
complaint that is not subject to a formal procedure(an offensive co-worker for example.)Personnel
policies and Code guide the behavior and actions of employees;the grievance process addresses the
violation, misapplication or neglect of those policies and Code. All employees are protected under
personnel policies and the law from harassment and unfair treatment, and resolution requires
supervisory discretion and management actions beyond the mere interpretation of code or policy.
It has also been noted that questions regarding response deadlines and the applicability of the
process to employees not defined as regular employees has not been clear. Again,all employees are
protected under personnel policies and the law from harassment and unfair treatment and are
encouraged to address any concerns with their supervisors. The grievance process applies to all
employees except probationary employees. Probationary employees may be discharged if in the
opinion of the appointing authority they will not achieve satisfactory status within the probationary
period.
The proposed revisions outline the purpose and intent of the grievance procedure to resolve
issues at the lowest possible level and to encourage communication. The changes seek to clarify,
within the ordinance,exactly which employees are eligible to file grievances and what constitutes a
grievance versus a complaint. The code also simplifies the procedure and time limits to make the
process more accessible. The proposed revisions also allow for additional flexibility in regard to
time limits within the procedure.
These revisions are based on the input of employees,citizens,and the administration over the
course of three work sessions, and the review of numerous grievance policies from other
jurisdictions.
95
INTENT:
To simplify the grievance procedure and define terms to make the process more accessible to
employees.
CONSISTENCY CHECKLIST: Yes No NIA
1. Comprehensive Plan (document source here): X
2. Strategic Plan (document source here): X
3. Other (list):
FISCAL NOTE:
No fiscal impact.
Approved by Finance Department: ram„
ATTORNEY REVIEW: Yes X No Not Applicable
RECOMMENDATION:
96
Sponsored by: Planning and Zoning Commission
Introduction Date: June 25, 2018
Public Hearing Date: July 9, 2018
Enacted: July 9, 2018
CITY OF SEWARD, ALASKA
ORDINANCE 2018-004
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING PORTIONS OF SEWARD CITY CODE 15.10.140
DEFINITIONS; 15.10.215 PARKING; 15.10.220 DEVELOPMENT
REQUIREMENTS; 15.10.220 DEVELOPMENT REQUIREMENTS
TABLE; AND 15.10.226 LAND USES ALLOWED TABLE
WHEREAS, it is in the best interest of the community to periodically review and update
the City zoning code to reflect community changes and needs; and
WHEREAS, it's recognized that developable land within Seward is limited, and
development requirements should reflect the need to allow more productive use of that limited
land without degrading the quality of community life; and
WHEREAS, Development Requirements are primary part of the zoning code
establishing lot sizes, building setbacks and heights; and
WHEREAS, at its November 7, 2017 regular meeting, the Planning and Zoning
Commission discussed Development Requirements as part of that meeting agenda, and heard
public comments thereon; and
WHEREAS,the Planning and Zoning Commission held work sessions on November 28,
2017, January 9, 2018, March 6, 2018, and April 3, 2018 on Title 15 to further discuss
Development Requirements; and
WHEREAS, at its June 5, 2018 meeting, the Planning and Zoning Commission held a
public hearing and recommended City Council approval of the proposed City Code amendments.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,HEREBY ORDAINS that:
Section 1. Seward City Code Section 15.10 Planning and Land Use Regulations, Seward
Zoning Code is hereby amended to read as follows ( 1et4r-ett� = deletions and are bold,
Underline = additions and are bold italics):
15.10.140 -Definitions.
A. General interpretation.
97
CITY OF SEWARD, ALASKA
ORDINANCE 2018-004
B. Specific definitions. (Parenthetical references are for cross-reference only.) In this chapter,
unless otherwise provided or the context otherwise requires:
An accessory building shall be considered to be a part of the main building when joined by a
common wall or connected by a breezeway to the main building. Accessory building means any
structure regardless of type of foundation or base support, including skid-mounted or other
moveable structures.
30. Dwelling. A building designed or used exclusively as living quarters for one or more
families.
a. Apartment. Any portion of a building which is designed, built, rented, leased, let
or hired out to be occupied or which is occupied as the home or residence of an
individual for daily living and doing cooking independently of any other
individual or family in the same building (see "Dwelling-9.
b. Apartment, commercial buildinz. Commereial building apartmeat An
apartment located within a building designed to accommodate a mix of residential
and commercial uses.
c. Apartment, efficiency (also called accessory apartment;
mot in law, or- studio,) A single separate dwelling unit consisting of not
more than one habitable room which includes combined kitchen, dining and
sleeping areas with accompanying sanitary facilities, and which is located within
or shares a common wall with a single-family dwelling.
d. Apartment, owner or manager. An apartment within a building that is designed to
be used exclusively as the living quarters for the owner or manager family of that
building or a commercial business located in the building.
e. Apartment, studio. A small apartment less than 350 square feet with a fully
functional kitchen and bathroom.
f. Condominium. A form of housing ownership by which a person may purchase
and own one dwelling unit in a multiunit building or development. Each owner
owns a common interest in such things as the underlying land, common walls,
stairwells, elevators, lobbies, laundry rooms and recreation rooms.
g. Guest house. An accessory building occupied on a temporary basis solely by
nonpaying guests.
h. Mobile home. A factory-built home designed to be used as a year-round
residential dwelling and originally designed and mounted on wheels and/or axle
supports for transportation by another vehicle.
i. Modular home. A factory-built residential structure that is transportable in one or
more sections, is built on a permanent chassis, and is used as a place of human
98
CITY OF SEWARD, ALASKA
ORDINANCE 2018-004
habitation, but which is not constructed with a permanent hitch or other device
allowing transport of the unit other than for the purpose of delivery to a
permanent site, and which does not have wheels or axles permanently attached to
its body or frame. Includes factory-built and manufactured home.
j. Multiple-family. A building designed as a residence for three or more families,
with the number of families in residence not exceeding the number of dwelling
units provided and each living independently of the other under one roof.
k. Single-family, attached. A building containing two or more dwelling units, each
of which has primary ground floor access to the outside and which are attached to
each other by party walls without openings. Also commonly called townhouse,
row house and zero-lot line.
1. Single-family, detached. A building designed and/or used exclusively for
occupancy of one family and entirely surrounded by open space on the same lot.
m. Two-family or duplex. A building containing two single-family dwelling units
totally separated from each other by an unpierced wall extending from ground to
roof or unpierced ceiling and floor extending from exterior wall to exterior wall,
except for a common stairwell exterior to both dwelling units.
n. Unit, dwelling unit. A building or separate portion thereof containing kitchen,
living, sleeping accommodations and at least one bathroom and designed to be
occupied exclusively as a residence by one family (see "Apartment").
o. Watchman or caretaker dwelling. An accessory dwelling associated with a
commercial or industrial building or structure for the purpose of housing a
watchman or caretaker and immediate family.
63. Open Area. Open area is any portion of the lot not
a. covered by a structure, or
b. used for Parkinz spaces and maneuverinz.
15.10.215 -Parking.
(a) Except in the CB and the HC districts, there shall be provided permanently maintained off-
street parking for each principal business. It shall be the responsibility of the business owner
to provide and maintain said off-street parking in accordance with this chapter continuously
during the life of the business.
(b) For each principal building or use within a principal building, there shall be no less than the
number of off-street vehicle parking spaces specified under this section:
Land Use Minimum Number of Parking Spaces
Dwellings and Lodges
Single-family and 2-family dwellings 2 parking spaces per dwelling unit
99
CITY OF SEWARD, ALASKA
ORDINANCE 2018-004
and parish houses
Multiple-family dwellings and other 2 parking spaces per dwelling unit plus 1/z space for
places containing multiple dwelling every unit larger than 2-bedrooms or greater than 1,000
units square feet in size
Hotels and motels 1 space per guest unit
Lodging, rooming and boardinghouses I space per guest room plus spaces for the principal
dwelling unit
Dwelling, apartment efficiency 1 off-street parking space in addition to those required
of the principal dwelling
Dwelling, studio apartment I space per dwellinz unit
15.10.220 Development requirements
(a) Table 1 .'r5T10.220 15.10.222, development requirements, is incorporated herein by
reference.,and the restrictions and annotations contained therein are mandatory unless
otherwise modified by this chapter. (See tables at the end of this title; see also section
15.10.210.)
Table '5.'� 15.10.222. Development Requirements
Principally Principally
Zoning Districts Residential Principally Commercial public
RR R1 R2 R3 UR OR AC I HC I CB I I I RM I INS I P
Maximum Lot Coverage (%)
(See Notes 2G and 6, next 30 35 35 40 40 50 50 100* 100 100* 30 50 10
page)
* * * * *
Table 15.10.2220 15.10.222. Development Requirements Table Notes
NOTE 1. Within the HC District, in the area bounded by Fourth Avenue, the boat launch ramp,
the harbor basin and J Float Ramp, building height is limited to 26 feet.
NOTE 2.
a. Buildable/useable area—Lot may have to be larger to have minimum buildable
area available.
b. In the R1, R2, R3, UR, OR , AC and CB Districts, from the Seward
Highway/Phoenix Road intersection South, to include the Bayview Subdivision,
100
CITY OF SEWARD, ALASKA
ORDINANCE 2018-004
3,000 SF and north, 6,000 SF with 30 and 60 foot minimum frontages
respectively, for single-family residences.
c. A single RR lot may be divided into two lots of less than 20,000 SF each if the
reduction below 20,000 SF is to accommodate required widening of an adjacent
right-of-way.
d. In the R1, R2, R3, UR, OR, AC and CB Districts, individual lots of at least 3,000
SF in the Original Townsite, Federal Addition, Laubner Addition, Cliff Addition
and Bayview Addition may be developed for single-family residences provided
all other development requirements of this chapter are met.
e. Multi -Family developments (except studio apartments) with three or more
few units require a minimum of 9,000 SF in the R3, UR, OR, AC and CB
Districts and 20,000 SF in the RM District. All said districts require an additional
1,200 SF per unit of five or more units.
f. Two-Family or duplex developments require a minimum of 6,000 SF in the R2,
R3, UR, OR, AC and CB Districts and 20,000 SF in the RM District. Duplex
developments within the Federal Addition Subdivision require 5,000 SF. All other
development requirements of this chapter shall be met
g Multiple-Family, studio apartments in the OR,AC. CBA HC,I and RM districts
require a minimum of 9,000 SF. The total square footaze required for lot
setbacks shall be reserved as open area. All other requirements set forth in this
chapter shall be met.
NOTE 3. See Notes 2-D and 2-E above.
NOTE 4. From Seward Highway/Phoenix Road intersectionSouth, a five-foot setback, each
side; north, a minimum five-foot setback each side as part of a combined 15-foot setback total
between both sides.
NOTE 5. hi the HC District, parcels abutting mean high tide No rear yard setback; parcels
abutting the waterfront boardwalk—Five feet; and parcels not abutting the waterfront boardwalk
or mean high water mark—Ten feet.
NOTE 6. Excludes setbacks in HC and I.
NOTE 7. 1n the Industrial District, no minimum lot size, width or setbacks are required for
unmanned electronic sites.
NOTE 8. Tract D of USS 1864 Jesse Lee Home Subdivision shall not be used for any uses other
than those allowed in an R1 district, except for a long term care facility, aka skilled nursing care
facility.
Table 15.10.226 Land Uses Allowed
101
CITY OF SEWARD, ALASKA
ORDINANCE 2018-004
KEY:
O -Use Permitted Outright
H - Home Occupation
C -Use Requires Conditional Use Permit
P -Use Requires Administrative Permit
Blank- Use Prohibited
Zoning Districts Principally Residential Principally Principally
Commercial Public
Uses RR R1 R2 R3 UR O A H C I RM INS P
R C C B
Dwelling, apartment in a
commercial building (limited to one O O O O O C
unit)
Dwelling, apartment in a
commercial building (two or more O O C C
units)
Dwelling, apartment, efficiency
O O O O O O O
mother- i ' ,.-� or accessory
Dwelling, apartment, studio C C C C C C
Dwelling, attached single-family, C C C C C C C
i.e.,townhouse, row
Section 2. This Ordinance shall take place ten (10) days following enactment.
ENACTED by the City Council of the City of Seward, Alaska, this 91h day of July, 2018.
THE CITY OF SEWARD,ALASKA
David Squires,Mayor
102
Council Agenda Statement
Meeting Date: July 9, 2018
To: City Council }
Through: Jim Hunt, City Manager
Ron Long, Assistant City Manager
From: Jackie C. Wilde, Planner
Agenda Item: Amending portions of the Seward City Code to include 15.10.140
Definitions; 15.10.215 Parking; 15.10.226 Land Uses Allowed Table;
15.10.220 Development Requirements Notes and Table
BACKGROUND & JUSTIFICATION:
At the request of the public, Planning and Zoning Commission, and City Council, city staff has
completed a review of portions of the City Code. In the past five months the Planning and Zoning
Commission held public work sessions on November 7, 2017, November 28, 2017, January 9,
2018, March 6, 2018, and at the Planning & Zoning Commission's regular meeting on April 3,
2018 time was scheduled to discuss, review, and update portions of Title 15 of the City Zoning
Code relating to Development Requirements. Members of the public were present and expressed
comments and concerns during these work sessions relating to the availability of year round
housing for residents of Seward. Members of the public also suggested ways in which the
Development requirements might be changed to allow for higher density in the construction of
studio apartments. At the June 5, 2018 Planning and Zoning Commission approved resolution
2018-006 recommending City Council amend portions of the Seward City Code to include
15.10.140 Definitions; 15.10.215 Parking; 15.10.226 Land Uses Allowed Table; 15.10.220
Development Requirements Notes and Table.
The Commission has reviewed and discussed parking requirements, the Development
Requirements Table, and the Land Uses Allowed Table sections of the Seward City Code in depth.
The Commission has addressed and accommodated public comments and input throughout the
process.
This proposed ordinance creates a new definition in 15.10.140 for studio apartments. A studio
apartment is a multiple family dwelling unit that is less than 350 square feet and contains a fully
functional kitchen and bathroom. The proposed parking requirement for a studio apartment is one
space per unit. Current code requires two spaces per multiple family dwelling unit, plus an
additional half-space for each bedroom in excess of two, or unit greater than 1,000 square feet in
size.
This proposed ordinance will permit the development of higher density multiple family dwellings
that contain studio apartments. Code currently requires multiple family dwellings of up to four
units to have a minimum lot size of 9,000 square feet, with an additional 1,200 square feet per unit
required for five or more units. Studio apartment dwellings will require a minimum lot size of
103
City Council Agenda Statement
Ordinance 2018-004
Page 2 of 7
9,000 square feet as well. The quantity of studio apartment units allowed on a lot will be
constrained by the parking requirement and an open area requirement. The open area requirement
specifies that the amount of square footage on a particular lot that is required for setbacks must be
reserved as open area, defined herein as area that is not to be used for parking lots, or structures
on the lot. This means that if a developer wishes to utilize any space in the lot setback for parking,
they must assign an equivalent amount of square footage elsewhere on the lot as open area.
The intent is to allow for higher dwelling unit density while ensuring that areas exist for vegetation,
snow accumulation, and visual relief between structures.
HISTORY
Ordinance 314 was adopted in June of 1962 and set forth minimum lot size requirements for
multiple family dwelling units on a square foot per unit basis that diminished as the number of
units increased. For example, a four-plex would require a minimum 8000 square foot lot, a
dwelling consisting of 5-7 units required 1,500 square feet per unit,and a dwelling of eight or more
units required 1,000 square feet per unit. In 1977 Council passed Ordinance 436, which allowed
for a minimum lot size of 1,500 square feet per average number of units per floor. However,
Ordinance 436 was never ratified by the Kenai Peninsula Borough, which retained zoning
authority in the City of Seward based on statutory powers granted by the State of Alaska. In 1978
the Borough enacted Ordinance 78-26,the preamble of which stated that the KPB retains all zoning
powers within the urban and rural districts of the Borough, and that all zoning within the City of
Seward is controlled by the 1962 Ordinance 314. Ordinance 78-26 went on to specify the minimum
lot size requirement for multiple family dwellings to be 6,000 square feet with 1,000 additional
square feet per unit over 4 units. The City of Seward was granted limited zoning powers in 1989
with Ordinance 626, which adopted Title 15 to the Seward City Code. Ordinance 626 specified
the minimum lot size requirements for multiple family dwellings as 9000 square feet for 3-4 units
with 1,200 square feet for each additional unit of five or more.
Section 1. Seward City Code Section 15.10 Planning and Land Use Regulations, Seward
Zoning Code is hereby amended to read as follows(Striketlfettghs=deletions and are bold,Underline
=additions and are bold italics):
15.10.140 - Definitions.
A. General interpretation.
B. Specific definitions. (Parenthetical references are for cross-reference only.) In this chapter, unless
otherwise provided or the context otherwise requires:
An accessory building shall be considered to be a part of the main building when joined by a common
wall or connected by a breezeway to the main building. Accessory building means any structure
regardless of type of foundation or base support, including skid-mounted or other moveable structures.
104
City Council Agenda Statement
Ordinance 2018-004
Page 3 of 7
30. Dwelling,A building designed or used exclusively as living quarters for one or more families.
a. Apartment.-Any portion of a building which is designed, built, rented, leased, let or
hired out to be occupied or which is occupied as the home or residence of an individual
for daily living and doing cooking independently of any other individual or family in
the same building(see-L eIIitg").
b. Apartment, commercial building. GoinmereW-W&Rdift-flyartntent An apartment
located within a building designed to accommodate a mix of residential and
commercial uses.
c. Apartment, efficiency e€Eieieney--ft"rfftent (also called accessory apartment;
met#eir-it-law,—ems studiQ. A single separate dwelling unit consisting of not more
than one habitable room which includes combined kitchen, dining and sleeping areas
with accompanying sanitary facilities,and which is located within or shares a common
wall with a single-family dwelling.
d. Apartment, owner or manager. An apartment within a building that is designed to be
used exclusively as the living quarters for the owner or manager family of that building
or a commercial business located in the building.
e. Apartment, studio. A small apartment less than 350 square feet with a fully
functional kitchen and bathroom.
f. Condominium.-A form of housing ownership by which a person may purchase and own
one dwelling unit in a multiunit building or development. Each owner owns a common
interest in such things as the underlying land, common walls, stairwells, elevators,
lobbies, laundry rooms and recreation rooms.
g. Guest house.An accessory building occupied on a temporary basis solely by nonpaying
guests.
h. Mobile home._A factory-built home designed to be used as a year-round residential
dwelling and originally designed and mounted on wheels and/or axle supports for
transportation by another vehicle.
i. Modular home.,.A factory-built residential structure that is transportable in one or more
sections, is built on a permanent chassis, and is used as a place of human habitation,
but which is not constructed with a permanent hitch or other device allowing transport
of the unit other than for the purpose of delivery to a permanent site, and which does
not have wheels or axles permanently attached to its body or frame. Includes factory-
built and manufactured home.
j. Multiple-family._A building designed as a residence for three or more families, with
the number of families in residence not exceeding the number of dwelling units
provided and each living independently of the other under one roof.
k. Single-family. attached._A building containing two or more dwelling units, each of
which has primary ground floor access to the outside and which are attached to each
other by party walls without openings. Also commonly called townhouse, row house
and zero-lot line.
105
City Council Agenda Statement
Ordinance 2018-004
Page 4 of 7
1. Single-family. detached._A building designed and/or used exclusively for occupancy
of one family and entirely surrounded by open space on the same lot.
in. Two-family or duplex._A building containing two single-family dwelling units totally
separated from each other by an unpierced wall extending from ground to roof or
unpierced ceiling and floor extending from exterior wall to exterior wall,except for a
common stairwell exterior to both dwelling units.
n. Unit. dwelling unit._A building or separate portion thereof containing kitchen, living,
sleeping accommodations and at least one bathroom and designed to be occupied
exclusively as a residence by one family (see "fie-").
o. Watchman or caretaker dwelling.-An accessory dwelling associated with a commercial
or industrial building or structure for the purpose of housing a watchman or caretaker
and immediate family.
R ieieney ey"tmenta See-�,.. ;
63. Open Area. Open area is any Portion of the lot not
a. covered by a structure, or
b. used for parking spaces and maneuvering.
15.10.215 - Parking.
(a) Except in the CB and the HC districts, there shall be provided permanently maintained off-street
parking for each principal business. It shall be the responsibility of the business owner to provide
and maintain said off-street parking in accordance with this chapter continuously during the life
of the business.
(b) For each principal building or use within a principal building, there shall be no less than the
number of off-street vehicle parking spaces specified under this section:
Land Use ` Minimum Number of Parking Spaces
Dwellings and Lodges
Single-family and 2-family dwellings
2 parking spaces per dwelling unit
and parish houses
Multiple-family dwellings and other 2 Parking spaces per dwelling unit plus '/z space for every
places containing multiple dwelling units unit larger than 2-bedrooms or greater than 1,000 square
� feet in size
Hotels and motels 1 space per guest unit
—i.
Lodging, rooming and boardinghouses 1 space per guest room plus spaces for the principal
dwelling unit
Dwelling, apartment efficiency 1 off-street parking space in addition to those required of
the principal dwelling
Dwelling, studio apartment duce per dwelling unit
106
City Council Agenda Statement
Ordinance 2018-004
Page 5 of 7
15.10.220 Development requirements
(a) Table 475.49:2- 815.10.222. development requirements, is incorporated herein by reference,
and the restrictions and annotations contained therein are mandatory unless otherwise
modified by this chapter. (See tables at the end of this title; see also section 15.10.210.)
Table 4-5401—N 15.10.222 Development Requirements
Zoning Districts Principally Principally Commercial Principally
Residential Public
RR R1 R2 R3 UR OR AC HC CB I I RM INS P
Maximum Lot Coverage (%) 30 35 35 40 40 50 50 100* 100 100* 30 50 10
(See Notes 2G and 6, next page) u
* * * * *
Table 4-5�412015.10.222. Development Requirements Table Notes
NOTE 1._Within the HC District, in the area bounded by Fourth Avenue, the boat launch ramp, the
harbor basin and J Float Ramp, building height is limited to 26 feet.
NOTE 2.
a. Buildable/useable area—Lot may have to be larger to have minimum buildable area
available.
b. In the R1, R2, R3, UR, OR ,AC and CB Districts, from the Seward Highway/Phoenix
Road intersection South, to include the Bayview Subdivision, 3,000 SF and north,
6,000 SF with 30 and 60 foot minimum frontages respectively, for single-family
residences.
c. A single RR lot may be divided into two lots of less than 20,000 SF each if the reduction
below 20,000 SF is to accommodate required widening of an adjacent right-of-way.
d. In the R1, R2, R3, UR, OR, AC and CB Districts, individual lots of at least 3,000 SF
in the Original Townsite, Federal Addition, Laubner Addition, Cliff Addition and
Bayview Addition may be developed for single-family residences provided all other
development requirements of this chapter are met.
e. Multi -Family developments (except studio apartments) with three or more €euf
units require a minimum of 9,000 SF in the R3, UR, OR, AC and CB Districts and
20,000 SF in the RM District. All said districts require an additional 1,200 SF per unit
of five or more units.
f. Two-Family or duplex developments require a minimum of 6,000 SF in the R2, R3,
UR, OR,AC and CB Districts and 20,000 SF in the RM District. Duplex developments
107
City Council Agenda Statement
Ordinance 2018-004
Page 6 of 7
within the Federal Addition Subdivision require 5,000 SF. All other development
requirements of this chapter shall be met
g Multiple-Family, studio apartments in the OR, AC, CBD, HC, I and RM districts
require a minimum of 9,000 SF. The total square footage required for lot setbacks
shall be reserved as open area.All other requirements set forth in this chapter shall
be met.
NOTE 3. See Notes 2-D and 2-E above.
NOTE 4._From Seward Highway/Phoenix Road intersectionSouth, a five-foot setback, each side;
north, a minimum five-foot setback each side as part of a combined 15-foot setback total between both
sides.
NOTE 5._In the HC District, parcels abutting mean high tide—No rear yard setback; parcels abutting
the waterfront boardwalk—Five feet; and parcels not abutting the waterfront boardwalk or mean high
water mark—Ten feet.
tiOTE 6. Excludes setbacks in HC and 1.
NOTE 7._In the Industrial District, no minimum lot size, width or setbacks are required for unmanned
electronic sites.
NOTE 8. Tract D of USS 1864 Jesse Lee Home Subdivision shall not be used for any uses other than
those allowed in an R1 district, except for a long term care facility, aka skilled nursing care facility.
Table 15.10.226 Land Uses Allowed
KEY:
O - Use Permitted Outright
H - Home Occupation
C - Use Requires Conditional Use Permit
P - Use Requires Administrative Permit
Blank - Use Prohibited _
Zoning Districts Principally Residential PrincipallyPrincipally
Commercial Public
Uses RR R1 R2 R3 lUR OR AC HC �CB I RM INS P
Dwelling, apartment in a commercial O O O O O C
building (limited to one unit)
Dwelling, apartment in a commercial O O C C
building (two or more units)
Dwelling, apartment, efficiency
�
tether-in-law or accessory O 0 0 0 0 0 O
108
City Council Agenda Statement
Ordinance 2018-004
Page 7 of 7
Dwelling, apartment, studio
' IC C C C CuC
Dwelling, attached single-family, C C C
� � T C C
i.e.,townhouse, row C
CONSISTENCY CHECKLIST: Yes No N/A
........
Comprehensive Plan (2030, approved by Council May 30, 2017)
1 3.7.1.3 Continue to improve the quality and efficiency of City X
governmental services
• Continue to revise and update the Seward City Code page 18
Strategic Plan (Approved by Council Resolution 99-043):
Growth Management and Land Use
2' • X
Promote Residential and Commercial Development inside the
City. (page 9)
INTENT:
Amend portions of the Seward City Code to include 15.10.140 Definitions; 15.10.215 Parking;
15.10.226 Land Uses Allowed Table; 15.10.220 Development Requirements Notes and Table.
FISCAL NOTE:
Implementation of the code amendment will have no direct cost to the City.
Approved by Finance Department:
ATTORNEY REVIEW: Yes X No N/A
RECOMMENDATION:
The Commission recommends the City Council approve the attached Ordinance amending the
Seward City Code 15.10.140 Definitions; 15.10.215 Parking; 15.10.220 Development
Requirements; 15.10.220 Development Requirements Table and 15.10.226 Land Uses Allowed
Table to change, update and accommodate the wishes of the public.
109
SPONSORED by: Staff
CITY OF SEWARD, ALASKA
PLANNING AND ZONING COMMISSION
RESOLUTION 2018-006
2018-006 RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF
THE CITY OF SEWARD, ALASKA, RECOMMENDING THE CITY COUNCIL
AMEND PORTIONS OF THE SEWARD CITY CODE TO INCLUDE 15.10.140
DEFINITIONS; 15.10.215 PARKING; 15.10.226 LAND USES ALLOWED
TABLE; 15.10.220 DEVELOPMENT REQUIREMENTS NOTES AND TABLE;
TO CHANGE, UPDATE AND ACCOMMODATE THE WISHES OF THE
PUBLIC
WHEREAS, City Council requested the Planning and Zoning Commission periodically
review and update the City zoning code to reflect community changes and needs; and
WHEREAS, it is recognized that developable land within Seward is limited and
Development Requirements should reflect the need to allow more productive use of that limited
land without degrading the quality of community life; and
WHEREAS, Development Requirements are primary part of the zoning code establishing
lot sizes, building setbacks and heights; and
WHEREAS, the Planning and Zoning Commission held work sessions on November 28,
2017, January 9, March 6, and April 3, 2018 on Title 15 to discuss Development Requirements; and
WHEREAS, staff has provided a code amendment to provide clarification to the
existing Development Requirements; and
WHEREAS, having complied with the public notification process on June 5, 2018 the
Seward Planning and Zoning Commission held the required public hearing recommending
City Council approves the proposed City Code amendments within this resolution by
ordinance.
that: NOW, THEREFORE,BE IT RESOLVED by the Seward Planning and Zoning Commission
Section 1. The Commission approves Resolution 2018-006 recommending City Council
approve the proposed City Code amendments within this resolution by Ordinance 2018- attached
and incorporated herein by reference, be forwarded to the City Council for approval.
Section 2. This resolution shall take place immediately upon its adoption.
110
Seward Planning and Zoning Commission
Resolution 2018-006
Page 2 of 2
PASSED AND APPROVED by the Seward Planning and Zoning Commission on this 5'day of
June 2018.
THE CITY OF SEWARD, ALASKA
b
Cindy L.' cklund, Chair
AYES: Hatfield, Swann, Seese,Ambroslani, Fleming, Ecklund
NOES:
ABSENT: Charbonneau
ABSTAIN:
VACANT: None
ATTEST:
Br nda Ballou, MC eity Clerk
gd.C�6^�e
uc w
{City Sealy
e O
" fL •
111
Sponsored by: Planning and Zoning Commission
Introduction Date: June 25, 2018
Public Hearing Date: July 9, 2018
Enacted: July 9, 2018
CITY OF SEW ARD, ALASKA
ORDINANCE 2018-004
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AMENDING PORTIONS OF SEWARD CITY CODE 15.10.140
DEFINITIONS; 15.10.215 PARKING; 15.10.220 DEVELOPMENT
REQUIREMENTS; 15.10.220 DEVELOPMENT REQUIREMENTS TABLE;
AND 15.10.226 LAND USES ALLOWED TABLE
WHEREAS, it is in the best interest of the community to periodically review and update the
City zoning code to reflect community changes and needs; and
WHEREAS, it's recognized that developable land within Seward is limited, and
development requirements should reflect the need to allow more productive use of that limited land
without degrading the quality of community life; and
WHEREAS, Development Requirements are primary part of the zoning code
establishing lot sizes, building setbacks and heights; and
WHEREAS, at its November 7, 2017 regular meeting, the Planning and Zoning Commission
discussed Development Requirements as part of that meeting agenda, and heard public comments
thereon; and
WHEREAS, the Planning and Zoning Commission held work sessions on November 28,
2017, January 9, 2018, March 6, 2018, and April 3, 2018 on Title 15 to further discuss Development
Requirements; and
WHEREAS, at its June 5, 2018 meeting, the Planning and Zoning Commission held a public
hearing and recommended City Council approval of the proposed City Code amendments.
NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,
HEREBY ORDAINS that:
Section 1. Seward City Code Section 15.10 Planning and Land Use Regulations, Seward
Zoning Code is hereby amended to read as follows (&tAket4f:0u * = deletions and are bold,
Underline =additions and are bold italics):
15.10.140 - Definitions.
A. General interpretation.
112
City of Seward, Alaska
Ordinance No.2018-004
Page 2 of 6
B. Specific definitions. (Parenthetical references are for cross-reference only.) In this chapter,
unless otherwise provided or the context otherwise requires:
An accessory building shall be considered to be a part of the main building when joined by a
common wall or connected by a breezeway to the main building. Accessory building means any
structure regardless of type of foundation or base support, including skid-mounted or other moveable
structures.
30. Dwelling..A building designed or used exclusively as living quarters for one or more families.
a. Apartment. Any portion of a building which is designed, built, rented, leased, let or
hired out to be occupied or which is occupied as the home or residence of an
individual for daily living and doing cooking independently of any other individual or
family in the same building (see—'$AeRingL4.
b. Apartment, commercial building_ C- —mer-c-iol-Iutkfiftg-a gent An apartment
located within a building designed to accommodate a mix of residential and
commercial uses.
c. A_partment, a icienc ef€ieie��— e> (also called accessory apartment;
tnether-maw eF-s i(4). A single separate dwelling unit consisting of not more
than one habitable room which includes combined kitchen, dining and sleeping areas
with accompanying sanitary facilities, and which is located within or shares a
common wall with a single-family dwelling.
d. Apartment, owner or manager. An apartment within a building that is designed to be
used exclusively as the living quarters for the owner or manager family of that
building or a commercial business located in the building.
e. Apartment, studio. A small apartment less than 350 square feet with a fully
,functional kitchen and bathroom.
f. Condominium. A form of housing ownership by which a person may purchase and
own one dwelling unit in a multiunit building or development. Each owner owns a
common interest in such things as the underlying land, common walls, stairwells,
elevators, lobbies, laundry rooms and recreation rooms.
g. Guest house. An accessory building occupied on a temporary basis solely by
nonpaying guests.
h. Mobile home._A factory-built home designed to be used as a year-round residential
dwelling and originally designed and mounted on wheels and/or axle supports for
transportation by another vehicle.
i. Modular home._A factory-built residential structure that is transportable in one or
more sections, is built on a permanent chassis, and is used as a place of human
habitation, but which is not constructed with a permanent hitch or other device
allowing transport of the unit other than for the purpose of delivery to a permanent
site, and which does not have wheels or axles permanently attached to its body or
frame. Includes factory-built and manufactured home.
113
City of Seward, Alaska
Ordinance No. 2018-004
Page 3 of 6
j. Multiple-family._A building designed as a residence for three or more families, with
the number of families in residence not exceeding the number of dwelling units
provided and each living independently of the other under one roof.
k. Single-family, attached._A building containing two or more dwelling units, each of
which has primary ground floor access to the outside and which are attached to each
other by party walls without openings. Also commonly called townhouse, row house
and zero-lot line.
I. Single-family, detached,_A building designed and/or used exclusively for occupancy
of one family and entirely surrounded by open space on the same lot.
m. Two-family or duplex._A building containing two single-family dwelling units totally
separated from each other by an unpierced wall extending from ground to roof or
unpierced ceiling and floor extending from exterior wall to exterior wall, except for a
common stairwell exterior to both dwelling units.
n. Unit, dwelling unit. A building or separate portion thereof containing kitchen, living,
sleeping accommodations and at least one bathroom and designed to be occupied
exclusively as a residence by one family Fs"-L'4arte 14
o. Watchman or caretaker dwelling. An accessory dwelling associated with a
commercial or industrial building or structure for the purpose of housing a watchman
or caretaker and immediate family.
�-�€€�e��-•;a�ar� �-fee-���
63, Open Area. Open area is any portion of the lot not covered by a structure or used for parking
spaces and maneuvering.
15.10.215 - Parking.
(a) Except in the CB and the HC districts, there shall be provided permanently maintained off-street
parking for each principal business. It shall be the responsibility of the business owner to
provide and maintain said off-street parking in accordance with this chapter continuously during
the life of the business.
(b) For each principal building or use within a principal building, there shall be no less than the
number of off-street vehicle parking spaces specified under this section:
Land Use Minimum Number of Parking Spaces
Dwellings and Lodges
Single-family and 2-family dwellings and
2 parking spaces per dwelling unit
parish houses
Multiple-family dwellings and other 2 Parking spaces per dwelling unit plus 1/2 space for every
places containing multiple dwelling units unit larger than 2-bedrooms or greater than 1,000 square
feet in size
Hotels and motels I space per guest unit
Lodging, rooming and boardinghouses I space per guest room plus spaces for the principal
dwelling unit
114
City of Seward, Alaska
Ordinance No. 2018-004
Page 4 of 6
Dwelling, apartment efficiency I off-street parking space in addition to those required of
the principal dwelling
Dwelling, studio apartment I space per dwelling unit
15.10.220 Development requirements
(a) Table 4-54#;IN 15.10.222, development requirements, is incorporated herein by reference,
and the restrictions and annotations contained therein are mandatory unless otherwise
modified by this chapter. (See tables at the end of this title; see also section 15.10.210.)
Table 1-54.1 338 15.10.222. Development Requirements
Zoning Districts Principally principally Commercial Principally
Residential Public
RR R I R2 R3 UR OR AC HC CB I RM INS P
Maximum Lot Coverage (%) (See 30 35 35 40 40 50 50 100* 100 100* 30 50 10
Notes 2G and 6, next page)
Table 45-40=220 15.10.222. Development Requirements Table Notes
NOTE 1._Within the HC District, in the area bounded by Fourth Avenue, the boat launch ramp, the
harbor basin and J Float Ramp, building height is limited to 26 feet.
NOTE 2.
a. Buildable/useable area—Lot may have to be larger to have minimum buildable area
available.
b. In the RI, R2, R3, UR, OR , AC and CB Districts, from the Seward
Highway/Phoenix Road intersection South, to include the Bayview Subdivision,
3,000 SF and north, 6,000 SF with 30 and 60 foot minimum frontages respectively,
for single-family residences.
c. A single RR lot may be divided into two lots of less than 20,000 SF each if the
reduction below 20,000 SF is to accommodate required widening of an adjacent
right-of-way.
d. In the R1, R2, R3, UR, OR, AC and CB Districts, individual lots of at least 3,000 SF
in the Original Townsite, Federal Addition, Laubner Addition, Cliff Addition and
Bayview Addition may be developed for single-family residences provided all other
development requirements of this chapter are met.
e. Multiple-Family developments (except studio apartments) with three or more #)ms
units require a minimum of 9,000 SF in the R3, UR, OR, AC and CB Districts and
20,000 SF in the RM District. All said districts require an additional 1,200 SF per
unit of five or more units.
115
City of Seward, Alaska
Ordinance No.2018-004
Page 5 of 6
f. Two-Family or duplex developments require a minimum of 6,000 SF in the R2, R3,
UR, OR, AC and CB Districts and 20,000 SF in the RM District. Duplex
developments within the Federal Addition Subdivision require 5,000 SF. All other
development requirements of this chapter shall be met
g Multiple-Family, studio apartments in the OR, AC, CBD, HC, I and RM districts
reauire a minimum of 9,000 SF. The total square footage required for lot setbacks
shall be reserved as open area. All other requirements set forth in this chapter shall
be met.
NOTE 3. See Notes 2-D and 2-E above.
NOTE 4._From Seward Highway/Phoenix Road intersection—South, a five-foot setback, each side;
north, a minimum five-foot setback each side as part of a combined 15-foot setback total between
both sides.
NOTE 5. In the HC District, parcels abutting mean high tide—No rear yard setback; parcels abutting
the waterfront boardwalk—Five feet; and parcels not abutting the waterfront boardwalk or mean high
water mark—Ten feet.
NOTE 6. Excludes setbacks in HC and I.
NOTE 7. In the Industrial District, no minimum lot size, width or setbacks are required for unmanned
electronic sites.
NOTE 8. Tract D of USS 1864 Jesse Lee Home Subdivision shall not be used for any uses other than
those allowed in an R1 district, except for a long term care facility, aka skilled nursing care facility.
Table 15.10.226 Land Uses Allowed
KEY:
O - Use Permitted Outright
H - Home Occupation
C - Use Requires Conditional Use Permit
P- Use Requires Administrative Permit
Blank - Use Prohibited
Zoning Districts Principally Residential Principally Principally
Commercial Public
Uses RR �Rl R2 j R3 UR �OR AC HC CB I RM INS P
116
City of Seward,Alaska
Ordinance No. 2018-004
Page 6 of 6
Dwelling, apartment in a commercial O O O O O C
building (limited to one unit)
Dwelling, apartment in a commercial O O C C
building(two or more units)
Dwelling, apartment, efficiency O O O O O O O
leer- - or accessory
Dwelling, apartment, studio I C C C C C C
Dwelling, attached single-family, i.e.,
townhouse, row C C C C C C C
Section 2. This Ordinance shall take place ten (10) days following enactment.
ENACTED by the Seward City Council this 91" day of July 2018.
THE CITY OF SEWARD, ALASKA
David Squires, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Brenda Ballou, MMC
City Clerk
(City Seal)
117
Sponsored by: Planning and Zoning Commission
CITY OF SEWARD, ALASKA
RESOLUTION 2018-057
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SEWARD, ALASKA, ADOPTING THE PLANNING AND
ZONING COMMISSION PRIORITIES FROM APRIL 2018 TO
APRIL 2019
WHEREAS, on March 27, 2018, the Planning and Zoning Commission and
Seward City Council held a joint work session, and reviewed and updated the Planning
and Zoning Commission's annual Priorities List; and
WHEREAS, the Seward City Council Rules of Procedure, adopted March 14,
1994, states that the Council should meet in an annual joint work session with the
Commission to address areas of mutual concern; and
WHEREAS, at their June 5, 2018 meeting, the Planning and Zoning Commission
reviewed and approved Resolution 2018-007 recommending Council adoption of the
2018-2019 Planning and Zoning Priorities as listed.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA that:
Section 1. The following list of Planning and Zoning Priorities for April 2017
through April 2018 is hereby adopted:
APRIL 2018 TO APRIL 2019 PRIORITIES
Short and Medium Term
1. Review/Update the Title 15
a. Development Requirements 15.10.220
b. Lodging 15.10.225
c. Definitions 15.10.140
d. Signs 15.20.010
2. Explore available funding/policy for infrastructure development (hold jointly with City
Council, if possible)
3. Pursue possible localized Code Enforcement Officer options
4. Current planning and zoning, including subdivision of land
5. Provide research, analysis, and insights in an accessible and straightforward way on
current topics, including demographics, housing, lodging, economic development,
resiliency and sustainability
6. Review and assist with the completion of the Seward Parks& Recreation Plan
118
CITY OF SEWARD,ALASKA
RESOLUTION 2018-057
Continuing
1. Look at current and future community needs to identify a wide range of strategies and
investments that support the neighborhood's growth and vitality
2. Communication tower education / work session with an industry expert (hold jointly
with City Council, if possible)
3. Continue to pursue compliance with the Seward City Zoning Code by prioritizing the
outstanding health and safety issues, such as snow removal,junk vehicles, etc.
4. Identify and implement land use and zoning changes as well as other actions needed to
support the short-term recovery and long-term vitality of City
5. Seek additional funding for Planning & Zoning Commissioner training
a. Search out and add funding to the budget
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska this
25t' day of June, 2018.
THE CITY OF SEWARD,ALASKA
David Squires, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Brenda J. Ballou, MMC
City Clerk
(City Seal)
119
Council Agenda Statement
Meeting Date: June 25,2018
To: City Council
Through: Jim Hunt- City Manager
Ron Long,Assistant City ager
From: Jackie C. Wilde, Planner
Agenda Item: Resolution Adopting the Planning and Zoning Commission Priorities from
April 2018 to April 2019.
BACKGROUND & JUSTIFICATION:
Annually,the Planning and Zoning Commission establishes priorities. The Commission began this
year's process by reviewing their Priority List at their joint work session with Council on March 27,
2018. During the joint work session, the Commission and Council reviewed and updated the
Planning and Zoning Draft Priorities List.
At their June 5,2018 meeting the Planning and Zoning Commission approved Resolution 2018-007
recommending Council adoption of the Commission's April 2018 to April 2019 Priority List
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan: Most of the priorities which the Commission
1. wishes to work on are an outgrowth of goals and objectives established in X
the Comprehensive Plan.
Strategic Plan: The Strategic Plan also identifies many of the priorities
2' addressed b the Commission. X
Planning and Zoning Rules of Procedure: Rule 34 (c.) "The
3 Commission shall meet in a joint work session with the City Council in
March of each year to discuss areas of mutual interest." X
INTENT: Adopt the April 2018 to April 2019 Planning and Zoning Priorities List.
FISCAL NOTE:
Approved by Finance Department:
RECOMMENDATION:_Approve Resolution 2018-057, recommending City Council approval
of the Planning and Zoning Commission Priorities from April 2018 to April 2019.
120
Sponsored by: Planning and Zoning Commission
CITY OF SEWARD, ALASKA
PLANNING AND ZONING COMMISSION
RESOLUTION 2018-007
A RESOLUTION OF THE SEWARD PLANNING AND ZONING
COMMISSION OF THE CITY OF SEWARD, ALASKA,
RECOMMENDING CITY COUNCIL APPROVAL OF THE
PLANNING AND ZONING COMMISSION PRIORITIES FROM
APRIL 2018 TO APRIL 2019
WHEREAS, the Planning and Zoning Commission and Seward City Council held
a joint work session, reviewed and updated the Planning and Zoning annual Priorities List
on March 27, 2018; and
WHEREAS, the Seward City Council Rules of Procedure, adopted March 1.4,
1994, state that the Council should meet in an annual joint work session with the
Commission to address areas of mutual concern; and
WHEREAS, at the June 5, 2018 meeting the Planning and Zoning Commission
reviewed and approved the Planning and Zoning Priority List; and
WHEREAS, Council will address a resolution adopting these recommendations.
NOW, THEREFORE, BE IT RESOLVED by the Seward Planning and Zoning
Commission that:
Section 1. The following list of priorities with status updates and timelines is
hereby recommended to the City Council for approval:
APRIL. 2018 TO APRIL 2019 PRIORITIES
Short and Medium Term
1) Review/Update the Title 15
a. Development Requirements 15.10.220
b. Lodging 15.10.225
c. Definitions 15.10.140
d. Signs 15.20.010
2) Explore available funding/policy for infrastructure development (Hold jointly with City
Council, if possible.)
121
3) Pursue possible localized Code Enforcement Officer options
4) Current planning and zoning, including subdivision of land
5) Provide research, analysis, and insights in an accessible and straightforward way on
current topics- including demographics, housing, lodging, economic development,
resiliency and sustainability
6) Review and assist with the completion of the Seward Parks & Recreation Plan
Continuing
1) Look at current and future community needs to identify a wide range of strategies and
investments that support the neighborhood's growth and vitality.
2) Communication tower education /work session with an industry expert. (Hold jointly
with City Council, if possible.)
3) Continue to pursue compliance with the Seward City Zoning Code by prioritizing the
outstanding health and safety issues, such as snow removal,junk vehicles, etc.
4) Identify and implement land use and zoning changes as well as other actions needed to
support the short-term recovery and long-term vitality of City
5) Seek additional funding for Planning & Zoning Commissioner training.
a. Search out and add funding to the budget
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the Seward Planning and Zoning Commission
this 5"' day of June. 2018.
THE CITY OF SEWARD, SKA
Cind4 .eklund, Chair
AYES: Swann. Ambrosiani. Seese, Fleming. Hatfield, Ecklund
NOES:
ABSENT: Charbonneau
ABSTAIN:
VACANT: None
ATTEST:
Of Rg.
Brenda Ballou, NWMC G.•'
City Clerk ` r.
•.� "
� iilwM1 f4
122 • TF••......,••1�S
OF 14 ,•
l�����sa�sa••R�;
City of Seward,Alaska City Council Minutes
June 11, 2018 Volume 39,Page
CALL TO ORDER
The June 11, 2018 regular meeting of the Seward City Council was called to order at 7:00
p.m. by Mayor David Squires.
OPENING CEREMONY
Police Chief Tom Clemons led the Pledge of Allegiance to the flag.
ROLL CALL
There were present:
David Squires presiding and
Marianna Keil Ristine Casagranda
Sue McClure Suzanne Towsley
comprising a quorum of the Council; and
Jim Hunt, City Manager
Jessica Fogle, Deputy City Clerk
Will Earnhart, City Attorney
Absent—Jeremy Horn
Vacant—One
CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR
PUBLIC HEARING
Patrick Messmer spoke about the Grievance Procedure. He expressed his belief that there
were a lot of wage and hour issues that could come up that were not covered under wage and hour
laws. The ordinance did not address how the panel was picked,and he was concerned that people of
like-minds would be picked for it. He also stated his belief that the phrase, "if you misuse the
grievance procedure, then you can be punished again" should be removed, because he saw it as
double jeopardy. He also said that a note being put in someone's file for them disagreeing with the
grievance process did not accomplish anything. He stated he believed that both council and
administration were good people,but thought the ordinance for the grievance procedure needed to be
worked through some more.
Lynda Paquette stated that the White House signed the Federal Declaration for Disaster
Recovery for Lowell Point Road. She asked for"Mountain Side Yield to Ocean Side" signs to be
erected on Lowell Point Road and an idea on a timeframe for when this might be completed. She
also stated that she would like for the community to have a heads up on any possible road closures
that work on this road might create.
Sharyl Seese stated that her and her neighbors'intentions were to have"No Parking"signs in
the entrance of the Jeep trail. She and her neighbors never minded people parking on their side of the
123
City of Seward,Alaska City Council Minutes
June 11, 2018 Volume 39,Page
street; they just wanted emergency response vehicles to be able to get up the mountain quickly in
case of an emergency.
Karin Sturdy said that seasonal passes were being sold in the Parking Department,and they
had been writing 10-20 warnings every day for parking.The Campgrounds Department was breaking
both attendance and revenue records this year. On Wednesday, June 20, 2018 at 3:00 p.m. there
would be "Free Soccer Play Day" at the elementary school. She also stated that the Teen Youth
Center(TYC)was full for the first few weeks of summer,but they were calling parents of children
on their waiting lists when they had openings. The Teen Rec Room was pretty much on par for the
summer. There was still a job opening for an ALPAR leader to work with all of the kids who were
eager to pick litter this summer. Seward Real Estate Bear Bell Run's attendance doubled this year;
Sturdy thanked the Petersen family and Seward Real Estate for their help with this event.
William Earnhart stated that wage issues were easy to write into the Grievance Procedure.
He said that outside hearing officers,inside hearing officers, and a panel had all been considered as
options for people to conduct the hearings. The whole idea of the grievance process was to have a
process that resolved issues. It should end in a compromise or a resolution, and not result in
arguments. He reminded everyone to be open-minded and have a discussion, not an argument.
Brad Snowden stated that his hotel, Mom's Hotel and Suites, would be opening soon. He
would be using Siri, Google, and Alexa in his hotel to help with his guests' needs. He credited
Highliner Restaurant and the Taroka Inn for fixing up and re-opening some new small businesses.He
also discussed his progress on the Cruise Ship Terminal proj ect.He stated he thought the airport was
absolutely critical to our winter, but believed that it could be useful for summer, as well.
Cindy Clock stated the Chamber of Commerce was excited to see Resolution 2018-054 on
the agenda, and believed that this was a wise investment.
Bill Mans stated that he wished the city would grant him easements across the property at
408 Madison. Public Works had been very helpful and they found where the sewer from 501 Fifth
ran into the main sewer and where it crossed into the property at 408 Madison. He said he had not
received a public hearing announcement. He spoke with Mary Lutz, the potential new owner,who
was also not aware of the public hearing tonight, or any potential easements or set-backs with this
property.He said that the main public sewer line between Fourth and Fifth ran down the alley,but he
thought that a simple easement would be much more economical and this was what he hoped to have
done.He stated that at a previous meeting,Ron Long suggested that the city have administration run
a test on the sewer lines and identify exactly where they were located and to Mans' knowledge,this
had not happened.He stated his belief that it was unethical not to divulge information to a person of
the public who was buying the property.
Jim Hunt stated that the property at 408 Madison was offered to Mans some time ago, if
Mans removed the existing building and replatted it. Public Works found that the sewer line ran
north,northwest. Hunt stated that the city was not obligated to provide an easement on this sale.He
said it was an"as is,where is"piece of land.With no easement already in place,the people who own
this property were at risk. When the land was bought, everything on it was bought, as well.
124
City of Seward,Alaska City Council Minutes
June 11, 2018 Volume 39,Page
David Squires explained that this property was taken under tax foreclosure.Due to this,the
fair market value did not hold on this property.
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:
Approval of the May 29,2018 Regular Meeting Minutes.
SPECIAL ORDERS,PRESENTATIONS AND REPORTS
Proclamations & Awards
Recognizing Michael Moriarty,DDS for his Distinguished Practice
Borough Assembly Report. Kenn Carpenter said that the borough passed a 436 page
budget. Originally,the assembly anticipated$3.5 million in deficit,but after cuts, ended up at$2.7
million in deficit. Some things were still in process,but the budget was passed.The assembly funded
the school district, so no teachers would lose their jobs. They also discussed a new tobacco tax.
Kenai Peninsula Borough Assembly President Wayne Ogle stated that the assembly had a
rather difficult budget time period;there was a lot of public input on the budget. There was about a
$1.6 million increase to the borough's revenue this year. The borough looked into other taxes and
explored the possibility of adding an excise tax or a tobacco tax. Mike Chenault would retire from
District 29, and Ogle has offered himself up as a candidate for that post.
In response to McClure, Ogle stated that the borough wanted participation of all
municipalities, so the city would have an opportunity to discuss the changes to bed tax. They would
appreciate participation from the City of Seward in this.
In response to Squires, Ogle answered that tobacco tax would make the cost of cigarettes go
up about$1.00 per pack.Due to increased difficulty and legal issues,marijuana and alcohol would
not be experiencing an excise tax.He stated that there was a real murky area between an excise tax
and a sales tax.
City Manager Report.Jim Hunt reported the following purchase orders between$10,000
and $50,000 have been approved by the City Manager since the last council meeting: $19,811 to
Electric Power Constructors to upgrade breaker at Fort Raymond; $10,000 to Maddox Electric
Services for electrical work at the harbor; $23,930 to Anixter to restock wire; $13,425 to Potelcom
Supply to restock wire; and, $12,060 to Pyramid Printing Co.for two years of utility billing supplies.
He reported that Seward Mt.Haven reported full occupancy and new services.Due to Alaska
Department of Transportation (ADOT) restrictions, "Mountain Side Yield to Ocean Side" signs
125
City of Seward,Alaska City Council Minutes
June 11, 2018 Volume 39,Page
would not be purchased by the city for Lowell Point Road. President Trump signed the Federal
Declaration for Disaster Recovery for Lowell Point Road. He said the Division of Community and
Regional Affairs(DCRA)was looking to come for a few days at the end of July to do their research.
The issue of ownership and maintenance of the Lowell Canyon tunnel had been postponed for
another 15 years. The $1,073,000 was assigned to the city of Seward for the year of 2019 for the
Jesse Lee Home.The use of this money would not be determined until next year. There was a power
outage over the weekend that was caused by the mast of a public vessel being too tall and hitting a
wire.
In response to McClure, Public Works Director Doug Schoessler explained that use of
"Yield" signs were restricted at a converging point, and there was no legal way for the city to put
signs up. The Federal Emergency Management Agency(FEMA)was willing to work in some other
types of signs.
Towsley suggested putting up"Yield to Oncoming Traffic"signs. She thought that the Public
Works Department should meet with council, ADOT, and the residents of Lowell Point to discuss
possible other solutions that could possibly be done on the state level.
In response to Squires, Schoessler explained he was looking into"Narrow Road"and"Slow"
signs, as well, but it would take about six signs to do this. He stated there was also a maintenance
issue, because temporary signs cannot be drilled down into rocks.
In response to Casagranda, Schoessler said that he had spoken with Sharyl Seese and the
emergency folks about the"No Parking" signs in the entrance of the Jeep trail. They were working
on finding a good solution that would work for the public. He stated that according to the emergency
departments,the signs were not blocking their vehicles right now and they supported them. Squires
agreed that the signs should be in front of the Jeep trail, as Seese had previously requested. He had
experienced difficulty getting up the trail to get cars out in the past.
In response to Casagranda, Hunt stated that he did not have a timeline of when the funds to
repair Lowell Point Road would be available. He anticipated a timeline would not be available until
after Labor Day, at earliest.
In response to McClure, Hunt said that the crane for the Seward Marine Industrial Center
(SMIC)had been in Seward for a few weeks,but it was not up and running yet. It was all a work in
progress.
In response to Towsley,Erchinger said she hoped to have the necessary information from the
state to determine when council would be able to have a work session and finalize the budget by the
end of July or the beginning of August. She hoped to do this in conjunction with the Comprehensive
Annual Financial Report(CAFR).
City Attorney Report.Katie Davies proposed having a work session on Ethics,Conflict of
Interests,and Public Records Requests at the end of July with council. She stated that she would like
to have the clerk's office in charge of Public Record Requests. She said that City Attorney Will
Earnhart would work with the council during tonight's Executive Session for union negotiations.The
total billed hours for last month came to 100 hours.
126
City of Seward,Alaska City Council Minutes
June 11, 2018 Volume 39,Page
Other Reports,Announcements and Presentations —None
PUBLIC HEARINGS
Resolutions Requiring Public Hearing
Resolution 2018 0-43,Authorizing The Competitive Sale Of The Property Deseribed As Wesfl,�
Of Lots 19 And 20, Bloeli 30 Original Twwnsife Of Seward, Tax Par-eel 1D No. 14813010,4
Madison, For The Amount Of$40,052 To Mary Lutz in Aeeordanee With Seward City Co
This item was removed from the agenda.
Resolution 2018-0549 Authorizing The City Manager To Enter Into A Contractual Agreement
With The Bering Sea Fisherman's Association, The Alaska Small Business Development
Corporation,And The Seward Chamber Of Commerce To Establish A Blue Pipeline Ocean
Cluster For Entrepreneurship Business Incubator In Seward By Funding A Part Time Small
Business Development Manager And Appropriating Funds.
Motion (Keil/Casagranda) Approve Resolution 2018-054
Hunt said that this resolution was brought forth after the Bering Sea Fisherman's Association
had their presentation before the community. He expressed his belief that it was a fantastic
opportunity to establish a small business development and incubator in our community.He thought it
would help grow small businesses we have, as well as create other small business opportunities. It
was a three year project, but they had only requested funding for the first year. The Bering Sea
Fisherman's Association had already developed their manager's job description, which was very
intense and in depth.
McClure was very supportive of this resolution and happy to see it on the agenda.
In response to Squires and Towsley, Hunt said that this part-time manager reported to the
Bering Sea Fisherman's Association and the city was not obligated to provide housing for the Bering
Sea Fisherman Association's employee. Hunt and the chamber would receive quarterly reports from
them.
Notice ofthe public hearing being posted and published as required by law was noted and the public
hearing was opened. No one appeared to address the Council and the public hearing was closed.
Motion Passed Unanimous
Ordinance 2018-003,To Revise Seward City Code 3.40,Grievance Procedure.This ordinance is
being introduced tonight, and will come for public hearing and enactment at the June 25, 2018
meeting.
Motion to Postpone (Casagranda/Kell) Postpone the Introduction of Ordinance
127
City of Seward,Alaska City Council Minutes
June 11, 2018 Volume 39,Page
2018-003 to June 25,2018.
Towsley wanted this item have two public hearings before being adopted in July.
Keil requested that any amendments that council wished to make be sent to administration,so
they would have time to prepare.
Motion Passed Unanimous
UNFINISHED BUSINESS —None
NEW BUSINESS —None
Other New Business —None
INFORMATIONAL ITEMS AND REPORTS
Clerk's Report on Public Records Requests for May, 2018.
On-Going City Projects and Goals.
COUNCIL COMMENTS
Towsley thanked the public for speaking tonight, and the electric crew for getting the
electricity back up and running this weekend.
McClure congratulated the Parks and Recreation Department for their accomplishments with
the Bear Bell Run. She had received multiple compliments about the Wi-Fi service at the Waterfront
Campgrounds. She extended an invitation to everyone for the Solstice Cemetery Tour on June 21,
2018 at 10:30 p.m., and stated the theme this year would be "Accidents".
Keil thanked administration,the lobbyists,and former Mayors Bardarson and Dunham for all
of their work getting the 15 year commitment from the government to take ownership of the tunnel,
as well as the funds for Lowell Point Road.
Casagranda was excited for the amazing sunshine this past weekend and lots of tourists
visiting this summer. She congratulated Seward Mountain Haven for having a full census for the first
time in eight years. She thanked the owners of the Highliner and the Taroka Inn,the Toloffs and the
Zimmermanns,for their hard work and dedication to improving downtown Seward. She also thanked
everyone who went to Washington, DC to get the government to help fund disaster prevention for
Lowell Point Road.
Squires thanked the congressmen and lobbyists, as well as President Trump,for getting the
money for the disaster prevention for Lowell Point Road.
128
City of Seward,Alaska City Council Minutes
June 11, 2018 Volume 39,Page
CITIZEN COMMENTS
Patrick Messmer wanted to thank council and other city employees for working really hard
during this busy time of year. He also thanked the American Legion for allowing him to use them as
a venue to teach women's firearms class last Saturday. He would also be doing co-ed firearms
courses at the American Legion in the future.
Lynda Paquette expressed her confusion about the Alaska Department of Transportation's
involvement with Lowell Point Road and what was going to happen with the signs. She asked if the
documents about the Lowell Point Sewage Lagoon had been found and when they could start that
conversation.
Sharyl Seese spoke on the power outage this weekend. She stated that we were very lucky
that we did not have a power outage on Thursday as well, because she witnessed a boat come
through Second Avenue from Dairy Hill and hit the wire across from her office. She also thanked
Mayor Squires for agreeing with her about adjusting the Jeep trail parking signs.
Mans thanked the council and administration for giving him the opportunity to speak on
Resolution 2018-054, even though the item had been pulled from the agenda tonight.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS
Hunt reminded boat owners to be aware of their height requirements and measurements for
the boat masts. He said that luckily,no one was killed by the two instances in town this past week.
Three communities in Alaska had been invited to speak to a Trump employee and the Deputy
Assistant Secretary to the Army Corps;they wanted to meet with Nome,Barrow,and Seward about
our relationship and how we developed this relationship. He also reminded everyone that forming a
partnership with an entity and communicating was the way to get things done.
In response to Casagranda,Hunt said that the date for the appointmentto speakwith a Trump
employee and the Deputy Assistant Secretary to the Army Corps was June 19, 2018. He also stated
that Ron Long received the email about the documents for the Lowell Point Sewer Lagoon,but Hunt
had not heard whether or not these had been found yet.
EXECUTIVE SESSION
Motion (Squires/Keil) Go into Executive Session to give direction to
city manager for negotiating the Alaska
Public Employee Association (APEA) and
International Brotherhood of Electrical
Workers (IBEW) contracts.
Council invited City Manager Jim Hunt,Finance Director Kris Erchinger, and City Attorneys Will
Earnhart and Katie Davies to remain.
Motion Passed Unanimous
129
City of Seward,Alaska City Council Minutes
June 11, 2018 Volume 39,Page
Council went into Executive Session at 8:30 p.m.
Council came out of Executive Session ended at 9:30 p.m.
ADJOURNMENT
The meeting was adjourned at 9:30 p.m.
Jessica Fogle David Squires
Deputy City Clerk Mayor
(City Seal)
130
t
Agenda Statement
Meeting Date: June 25, 2018
From: Brenda Ballou, City Clerk
Agenda Item: New Appointment for One Council Member Vacancy
BACKGROUND & JUSTIFICATION:
With the exciting news that Council Member Erik Slater has purchased a new home, there also
comes the unfortunate news that the home is located outside of city limits,and that Council Member
Slater submitted a resignation letter that was accepted by the City Council at the May 29, 2018
meeting. Therefore, one council seat has been declared vacant, with a term expiring in October,
2018.At the same meeting,the city clerk was directed to publicly notice the council seat vacancy and
solicit applications for qualified candidates.
The notice of vacancy was posted in three public places, and emailed to the city calendar list.It was
published in the Seward Journal under the "City Calendar" section on June 7 & 14, 2018.
Declaration of candidacy forms,letters of interest and city financial disclosure statement forms were
solicited; letters of interest and declarations are attached for your review.
Three citizens picked up packets,and two submitted complete applications:John Osenga and Sharyl
Seese.
Chapter 2, Section 2 of the Charter states,the person who fills this vacancy must be an elector of the
city,and shall have resided in the city continuously for a period of not less than one year immediately
preceding the date of filing. A declaration of candidacy was signed and notarized by each candidate
stating they met these qualifications. The council shall be the judge of the election and qualifications
of its members.Both candidates were confirmed on the city voter register as residing within the city
limits.
For filling vacancies, council is not limited to the applicants that filled out the paperwork.
RECOMMENDATION:
Prior to voting on candidates, council (by motion and second) approve all applicants as qualified.
Next, council vote on signed ballots provided by the clerk. After the ballot votes are announced,
council(by motion and second)vote to appoint the candidate receiving the highest number of votes.
Any candidate must receive at least 4 voice votes to be approved.
131
t
CHARTER-2.13 Filling vacancies.
(a)If a vacancy occurs in an elective office,other than a vacancy occurring from a recall:
(1)If the vacancy occurs more than two weeks before the last time for filing for the offices to be filled
at the next regular city election,the council shall fill the vacancy by appointment within thirty days,
with the person appointed serving until the next time when terms of elective officers begin. If the
unexpired term of the vacated office extends beyond the next time when terms of elective officers
begin,the office shall be filled for the remainder of the unexpired term at the next regular city election.
(2) If the vacancy occurs no more than two weeks before the last time for filing declarations of
candidacy for offices to be filled at the next regular city election,the council shall not fill the vacancy
until immediately after the council organizes following such regular city election,and the council then
shall fill any such vacancy by appointment for the remainder of the unexpired term.
(b)If a vacancy occurs in an appointive office,such vacancy shall be filled within ninety days thereafter in the
manner provided for making the original appointment. Such time may be extended for not to exceed an
additional ninety days by council resolution setting forth the reasons therefor.
CITY CODE-2.10.050.Vacancy on council.
(a)In the event any member of the city council departs from the city with the intent of remaining absent for
more than 90 days, or shall have failed to attend meetings of the council for a period of ninety consecutive
days,or shall have attended less than five of the meetings of the council during any continuous period of five
months,the council may declare the office of such member vacant.
(b) With the concurrence of two-thirds of its members, the council may expel one of its members for a
conviction of a violation of AS 15.13 or a felony or misdemeanor described in AS 15.56 as a corrupt practice.
The council shall consider that conviction during the first meeting following final determination of the
conviction.
(c)A vacancy on the council also is created by the resignation of a councilmember in writing approved by the
council,the death of a councilmember,the removal of a councilmember from office by a court of competent
jurisdiction,or a failure of a councilmember to qualify for office within ten days from the date of certification
of the member's election.
(d)If a vacancy occurs on the council,other than a vacancy occurring from a recall,the vacancy shall be filled
as provided in section 2.13(a)of the Charter.
(e)The council shall be the sole authority for determining the qualifications of its members.
CITY COUNCIL RULES OF PROCEDURE -FILLING COUNCIL VACANCIES
RULE 37. If a vacancy occurs in the office of Council member,the Council may elect some qualified
person to fill such vacancy,the person elected shall hold office until a successor is elected at the next regular
election and properly qualified. In order to fill the vacancy with the most qualified person available until an
election is held,the Council will widely distribute and publish a notice of the vacancy,the procedure and any
application form for applying. Each applicant will make a presentation to the Council regarding their
qualifications to serve.The Council will then vote and sign ballots provided by the City Clerk.The City Clerk
will read each ballot aloud,will tabulate the votes and announce the results to the Council. The Council may
then,by motion and voice vote,affirm the appointment of the candidate receiving the highest number of votes
(must have at least 4 per SCC 2.10.050). For time frames during a recall of an elective officer, and when
vacancies can be filled, see City Charter sections 2.12 and 2.13.
132
RECEIVED
CITY OF SEWARD, ALASKA JUN 15 2018
DECLARATION OF CANDIDACY
OFFICE OF T'-iE TF
FOR VACANT COUNCIL MEMBER SEAT CITYCLEHK
This form must be completed in its entirety and filed with the City Clerk or candidacy will not be validated.
Corrections must be initialed.
GENERAL INFORMATION
I, elan (Xc o►,— �j am a qualified voter, have been a resident and resided in the City of Seward
continuously for a period of not less than one year immediately preceding the date of filing, and now declare myself a candidate
for the office of COUNCIL MEMBER—with a term expiring October, 2018.
RESIDENCY INFORMATION
My current PHYSICAL residence address is:
Seward, Alaska
My current MAILING address is:
C
CERTIFICATION
I, the undersigned, solemnly swear and certify that the information in this Declaration of Candidacy is true and complete
and that I meet the specific residency and citizenship requirements of this office. I also acknowledge that should I
choose to withdraw my candidacy, a signed withdrawal of candidacy letter must be submitted to the City Clerk prior to
the end of the candidate filing period (Friday, June 15, 2018 by 5:00 p.m.).
SubsclFibed and sworn to before me this day
of 2018.
i
NOTARY PUBL Candidate's Signature
My commi sion expir s- ���0\111111111!N//�� U
O� A J Home Phone
�07
/ `�C'O'
NOTARY = Work Phone
(Notary Seal)
..
PU1�1st ' '• E To assist staff in verifying candidate/voter identification,please
is,�;9 .�O� provide one or both of the following:
OF.A�'���`\ Last 4 of SSN Voter No
My City of Seward Public Official Financial Disclosure Statement is enclosed with this declaration.
i ial
Vkk1/1r f I'ek �O I(�12c) r 8 133
RECEIVED
City of Seward Council JUN 15 2018
11:4s A.M
Seward, AK 99664 OFFICE OF Tf1E 1 F
CITY CLERK
June 14, 2018
Dear Sirs/Madam:
I am submitting my application for the vacant council seat left by Eric Slater.
Lately there's been a lot of public discussion about the City of Seward and the Council,
I'd like to be a part of the Council to work towards a solution to unify our community.
Currently, I'm the president of the Qutekcak Native Tribe, during my time on the QNT
council we have been working hard to achieve federal recognition which gives me a
unique perspective that I think will benefit the City Council. I am a long term member
of the Seward Community; now that my kids have graduated I feel I have the time to
commit to being a member of the Council.
I look forward to the opportunity to work toward helping my community and the
Council achieve good things. Thank you.
Sincerely,
John Osenga
134
RECEIVED CITY OF SEWARD, ALASKA
JUN 15 2018 ,, DECLARATION OF CANDIDACY
OFFICE OF THE3:so FOR VACANT COUNCIL MEMBER SEAT
1 F
CITY CLERK
is10 ompleted in its entirety and filed with the City Clerk or candidacy will not be validated.
Corrections must be initialed.
GENERAL INFORMATION
I, S hart' I �) ee S e, , am a qualified voter, have been a resident and resided in the City of Seward
continuously for a period of not less than one year immediately preceding the date of filing,and now declare myself a candidate
for the office of COUNCIL MEMBER—with a term expiring October, 2018.
RESIDENCY INFORMATION
My current PHYSICAL residence address is:
5_3 7 1 S T Iq U-e— Seward, Alaska
My current MAILING address is:
CERTIFICATION
I, the undersigned, solemnly swear and certify that the information in this Declaration of Candidacy is true and complete
and that I meet the specific residency and citizenship requirements of this office. I also acknowledge that should I
choose to withdraw my candidacy, a signed withdrawal of candidacy letter must be submitted to the City Clerk prior to
the end of the candidate filing period (Friday, June 15, 2018 by 5:00 p.m.).
Subscri red and sworn to before me this- day
of ,� 2018.
xj62,qL Z4�_e��
NOTARY PUBPi5 Candidate's Signature
My com iscs�ion xpires: /
y gq� // Home Phone
i
NaTP.RY : = Work Phone
(Notary Seal) PAC ,h
�$ To assist
e ofrlboth of verifying
t e following:
identification,please
provide on
n ��` Last 4 of SSN 6P;Z&;1_ Voter No
My City of Seward Public Official Financial Disclosure Statement is enclosed with this declaration.
(initials)
CITY PROJECTS & GOALS
Updated for June 25, 2018 City Council meeting
The following list of City Council projects and goals was reviewed, discussed, and updated at the February 12,
2018 City Council meeting.
1. ADA ACCESSIBLE PARKING AT CITY HALL
Council directed the city clerk to provide a history of why the location for municipal elections
was moved from City Hall to the K.M. Rae Building, as it related to ADA accessibility. City
Clerk history and status provided February 27, 2018. First floor restrooms currently under
renovation to provide one large ADA-accessible family restroom, in addition to one men's and
one women's restroom. The first floor restrooms in City Hall were completed May 14, 2018.
Fifth Avenue parking is not practical due to challenges with grade and distance; Adams Street
parking must be reserved for Police Department access; Public Works is currently researching
the feasibility of a modification to the SE corner of the back lot, as well as modifications to
second floor restrooms.
2. SET LOCATION FOR SATELLITE FIRE STATION AND PUBLIC WORKS
BUILDING
Administration is currently reviewing a concept public private proposal to house the Quint
(ladder truck) on the city-side of the bay.
3. DISCUSSION ON AIR FORCE RECREATION CAMP SITE
Council held a joint work session with the Planning & Zoning Commission on February 28,
2018. Directed administration to have Community Development bring forward multiple land
use concepts. (Previous council work session was held September 25, 2017). April 9, 2018 work
session to discuss development concepts. Following April 9, 2018 work session, administration
has initiated the rezone of the property to Auto Commercial (AC), the replatting of lots
generally as presented at the work session, and the creation of a subdivision and utility
development plan.
4. SALTWATER HEAT PUMP PROJECT
The state capital budget approved $725,000 for this project; currently awaiting Governor
Walker's signature. Administration is working with the design engineer to update costs and ROI
models in order to identify any potential funding shortfall and prepare strategies for additional
funding sources, if necessary.
5. ENERGY EFFICIENCY OF CITY HALL
6. GROUND TRANSPORTATION FOR AMBULANCE SERVICES
Directed administration to provide an update on ground transportation for ambulance services.
7. ANIMAL SHELTER IMPROVEMENTS
(Council passed Resolution 2017-035, Authorizing Replacement Of The Roof Of The Seward
Animal Shelter, In An Amount Not To Exceed$6,851.00, And Appropriating Funds.) March 19,
2018 work session; directed administration to look into potential locations and funding options.
Resolution 2018-049 approved at the May 29, 2018 meeting, authorizing the creation of the
Animal Shelter Relocation Fund and approving start-up funds.
136
8. RESEARCH ELECTED/APPOINTED OFFICIAL TELECONFERENCING
POSSIBILITIES FOR MEETINGS
Directed the city attorney to provide advice on teleconferencing possibilities for elected and
appointed officials. City Attorney opinion provided February 14, 2018.
9. UPDATE THE KPB TSUNAMI WARNING MESSAGE TO INCLUDE SPECIFIC
REFERENCE TO THE LOCAL RADIO STATION (91.7/106.1)
Directed administration to provide an update on the status of modifying the tsunami warning
announcement to include specific radio information, and also request the borough add a sticker
to their brochures which identifies the Seward radio station. Resolution 2018-019 designated
KIBH-FM 91.7 as the city's official radio station for emergencies, and authorized the City
Manager to work with borough to include radio station information in tsunami warning
broadcasts.
10. INCENTIVIZE FAMILY ENTERTAINMENT-TYPE BUSINESSES TO COME TO
SEWARD
It.AFFORDABLE HOUSING(INCLUDING SUMMER WORKER HOUSING)
Council will hold a work session in May, 2018.
(Previous council work sessions were held on May 22, 2017, June 12, 2017, and July 11, 2017)
12. SEWARD COMMUNITY HEALTH CARE CENTER EXPANSION
Directed administration to provide an update on the Seward Community Health Care Center
expansion. March 12, 2018 council meeting authorized to pay up to $1,500 in travel expenses
for Jean Bardarson to travel with city representatives to Washington, DC in April, 2018 (April
14-18, 2018 trip to Washington, DC)
13. BUILDING MAINTENANCE
14. LED LIGHT CONVERSIONS
15. EXPLORE POSSIBILITIES FOR CREATING A REVENUE STREAM FOR THE
ANIMAL SHELTER AND SOS PETS
16. PURSUE AVENUES TO INCREASE WINTER RECREATION OPPORTUNITIES
17. CONDUCT CITY-WIDE DISASTER EXERCISE TO INCLUDE MOVING
RESOURCES, EVACUATION FO THE PUBLIC, ENGAGING OUTSIDE AGENCIES,
AND PUBLIC INFORMATION DISSEMINATION
18. EXTEND CITY UTILITIES INTO VIABLE AREAS TO SUPPORT FUTURE
RESIDENTIAL HOUSING
137
COUNCIL COMMITTEES
1. February 26, 2018, council created an Ad Hoc Committee consisting of Council Member Horn,
Council Member Casagranda, and Mayor Squires to work with administration to develop a
Request for Proposals for conducting a third party investigation of city personnel matters.
Update: At the May 29, 2018 council meeting, the city manager was directed to contact the
DCRA and arrange for an audit of administration, personnel, and council. Based on the results
ofthat event, council will decide whether or not to continue with this committee.
138
� l
OfficeMayor
i
Al 144 N. Binkley Street, Soldotna, Alaska 99669 ' (907) 714-2150 ' (907) 714-2377 Fax
Charlie Pierce
F? CFIvED Borough Mayor
[JUN 1 2018
June 1 1 , 2018 OFF!CE OF THE PPPREc�,9
CITY CLERK
The Honorable Mayor David Squires - r
P.O. Box 167 4
410 Adams Street
Seward, AK 99664
Dear Mayor Squires:
We would be honored to have you attend our annual Industry Appreciation Day
celebration, Saturday,August 25, 2018, from 12:00 to 4:00, at the Park Strip located
on Main Street Loop in Kenai.
This event celebrates the vast contributions made by the oil and gas industry, the
Commercial Fishing Industry, the Tourism Industry and the Medical Industry to the
local and state economies. It honors the commitment of industry employers and
employees that regularly invest both their time and financial resources in the
communities they call home.
Please join us for food and fun at what is annually one of the most well-attended
events on the Kenai Peninsula. There will be something for everyone, young, or
young-at-heart, to celebrate during the festivities.
Please contact Ms. Pam Highley, my assistant, by August 1 St to RSVP, or for any
additional information; we may provide for you on this exciting celebration.
Hope to see you there!
Sincerely,
Charlie Pierce
Mayor
c / RSVP
�`L , Qhighley@kpb.us
907-714-2150
139
018
July 2018 July a Th August Th
SuMo TuW Fr Sa SuMo TuWe Th Fr Sa
1 2 3 4 5 6 7 1 2 3 4
8 9 10 11 12 13 14 5 6 7 8 9 10 11
15 16 17 18 19 20 21 12 13 14 15 16 17 18
22 23 24 25 26 27 28 19 20 21 22 23 24 25
29 30 31 26 27 28 29 30 31
Mori Tue Wed Thu Fri Sat
Jul 1 2 3 4 5 16 7
7:00pm 10.3on
m P& tg I
(C ncil I
I �V
� hambers) D 1� 11
75
8 9l �J 10 11 12 13 14
6:00pm 7:00pm
CCWS
7:00pm 10:30p
y m CC Mtg
(Chambers)
15 16 17 18 19 20 21
6:00pm 9:30pm &-"M-T0:49p
P&Z WS 4*4+P40"
(Chambers) 4Qmfftbe%s
N
u'S
'-1
7
22 2�� � 24 25 26 27 28
7:00pm 10:30p
m CC Mtg
(Chambers)
00 11-11
N
N
7
29 30 31 Aug 1 2 3 4
v
N
7
6/19/2018 5:10 PM
140
August 2018 September 2018
August 2018 SuM Tho TuWe Th Fr Sa SuMo TuWe Th Fr Sa
1 2 3 4 1
5 6 7 8 9 10 11 2 3 4 5 6 7 8
12 13 14 15 16 17 18 9 10 11 12 13 14 15
19 20 21 22 23 24 25 16 17 18 19 20 21 22
26 27 28 29 30 31 23 24 25 26 27 28 29
30
Sun Mon Tue Wed Thu Fri Sat
Jul 29 30 31 Aug 1 2 3 4
Q�
v f;
m
N
5 6 7 8 9 10 11
7:00pm 10:30p
m P&Z Mtg
(Council
Chambers)
u,
Q
12 13 14 15 16 17 18
7:00pm 10:30p 6:30pm 10:00p
m CC Mtg m HP Mtg
(Chambers) (Chambers)
00 /�/^•
71
19 20 21 22 23 24 25
6:00pm 9:30pm
P&Z WS
(Chambers)
N
r-I
m n
26 2 28 29 30 31 Sep 1
7:00pm 10:30p
m CC Mtg
(Chambers)
a
v
N
Q
6/19/2018 5:10 PM
141
September 2018 October 2018
September 2018
SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa
1 1 2 3 4 5 6
2 3 4 5 6 7 8 7 8 9 10 11 12 13
9 10 11 12 13 14 15 14 15 16 17 18 19 20
16 17 18 19 20 21 22 21 22 23 24 25 26 27
23 24 25 26 27 28 29 28 29 30 31
30
Sun Mon Tue Wed Thu Fri Sat
Aug 26 27 28 29 30 31 Sep 1
a
in
N
7
Q
2 3 4 5 6 7 8
6:00pm 7.00pm 12:OOpm 2:00p
P&Z-SBCFA m PACAB
co �\1 Joint WS Mtg
7:00pm 10:30p
v m P&Z Mtg
L,
(Council
Chambers)
9 10 11 12 13 14 15
/11 7:00pm 10:30p
m CC Mtg
(Chambers)
a
v
16 17 18 19 20 21 22
6:00pm 9:30pm 12:00pm 2:00p
P&Z WS m PACAB
N (Chambers) Work Session
(Chambers)
v 6:30pm 10:00p
m HP Mtg
(Chambers)
23 25 26 27 28 29
7:OOpm 10:30p
m CC Mtg
N (Chambers)
M
N
a
v
30 Oct 1 2 3 4 5 6
V
0
O
M
a
N
LA
6/19/2018 5:10 PM
142