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Sponsored by: Bower
CITY OF SEWARD, ALASKA
RESOLUTION 2021-125
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING THE OPTIONAL ONE-YEAR EXTENSION TO
THE OPERATING CONTRACT AS AMENDED BY AMENDMENT #2
BETWEEN THE CITY OF SEWARD AND SEWARD CITY TOURS, AND
APPROPRIATING FUNDS
WHEREAS, in 2010, the City of Seward began providing a shuttle bus service
between the Cruise Ship Terminal, the harbor, and historic downtown Seward; and
WHEREAS, the shuttle service has proven to be of a benefit to visiting tourists,
Seward community members, and local businesses; and
WHEREAS, Resolution 2018-042 approved the contract between the City of Seward
and Seward City Tours for provision of shuttle bus services for 2018 and 2019; and
WHEREAS, Resolution 2019-038 authorized Amendment No. 1 to the operating
contract which increased the contract rate by $21,720, extended the term by two years, and
' added two optional one-year extensions pending City Council approval: and
WHEREAS, the operating agreement for 2021 was reduced in the scope of services
through Amendment No. 2 to the contract in response to the elimination of cruise ship visitation
to Seward due to the COVID-19 pandemic; and
WHEREAS, the amount paid for the operating agreement in 2021 based upon Amendment
No. 2 was $83,800; and
WHEREAS, there is not yet certainty on how many cruise ships will visit Seward in 2022;
and
WHEREAS, no later than February 1, 2022, the City Manager will bring a follow up
resolution before the City Council to decide on whether the contract will be expanded; and
WHEREAS, the above -described resolution will be based upon the projected level of
cruise ship visitation in 2022.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
' Section 1. The City Council hereby authorizes the City Manager to extend the contract,
based upon the operational description in Amendment No. 2, between the City of Seward and
Seward City Tours.
CITY OF SEWARD, ALASKA
RESOLUTION 2021-125
Section 2. Funding in the amount of $83,800 is hereby transferred and appropriated
in 2022 from the CPV fund 11103-0000-3710-0000-30051 to the Bus Transportation Fund
Contracted Services account no. 30051-0000-7009.
Section 3. This resolution shall take effect upon approval.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 8`n
day of November 2021.
AYES:
McClure, DeMoss, Casagranda, Calb
NOES:
None
ABSENT:
Osenga
ABSTAIN:
None
VACANT:
One
ATTEST:
'I. MenJ9111.
(City Seal)
•` SEAL
OF
1
1
City Council Agenda Statement
Meeting Date: November 8, 2021
To: City Council
From: Janette Bower, City Manager
Agenda Item: Resolution 2021:125: Approving the Optional One -Year Extension to the
Operating Contract As Amended by Amendment #2 Between the City of
Seward and Seward City Tours, And Appropriating Funds
Background and justification:
The City of Seward's 2030 comprehensive plan specifically includes the provision of a seasonal
shuttle bus service which will add to local small business growth. The City of Seward has provided
for a shuttle bus service for this purpose since 2010 using funds from the Commercial Passenger
Vessel Tax (CPV). No CPV funds will be received by the City for fiscal years 2020 and 2021 due to a
lack of cruise ship visitation. The projected balance for the CPV accounts by the completion of 2023
is $1,313,444. This figure is based upon the known expenditures and projected usage of CPV funds.
Many of the passengers use this service to travel from the Cruise Ship Dock to downtown Seward.
This in turn has a positive impact on many businesses in Seward. The shuttle service has proven to
be of a benefit to visiting tourists, Seward community members, and local businesses. Seward
City Tours and the City of Seward entered an operating agreement in 2018 to continue this
valuable service to the community.
In 2019, the contract was amended via Amendment No. 1 to extend the agreement, increase
the contract rate, and allow for the City Manager to bring a resolution to City Council for
extensions in 2022 and 2023. The COVID-19 pandemic caused the cruise ship industry to be
unable to visit Seward in 2020 and 2021.
Amendment No. 2 was agreed to by both parties on May 4, 2021, and reduced the scope of
service to daily service from 11 am to 6 pm starting at the train depot and providing
transportation for visitors to access the historical downtown district. The amendment reduced
the rate from $161,335 to $83,800.
As of Fall 2021, it remains unclear as to whether cruise ships will be coming to Alaska in 2022.
However, it is desirable for the service to remain intact, while at a lower operating level,
regardless of cruise ship tourism. By February of 2022, the City Manager will bring a follow up
resolution before the City Council with a recommendation, based upon the likelihood of cruise
ship visitation, to either retain the lower level of service in line with 2021 operations, or to
increase the contract to the level of service as it occurred in 2018 and 2019.
Consistency checklist:
Comprehensive Plan:
Item 8.2 from the Seward 2030 Comprehensive Plan includes the operation of a seasonal shuttle
bus that provides service between the railroad depot, cruise ship terminal, and downtown.
Fiscal note:
ME
Payment schedule:
• 25% of the contract is paid upon approval
• Remaining balance is invoiced NTE 30 in four payments due June 1, July 1, August 1, and
September 1, 2022.
Funding for this contract comes from the Commercial Passenger Vessel Tax Fund 11103. There are
sufficient funds available for this contract extension and revenues will resume in 2023 after the
completion of the 2022 cruise ship season.
t
Finance Department approval:
Attorney Review✓:
Yes ❑ No X❑ Not applicable ❑
Recommendation
City Council approve Resolution 2021- 125.
`ey:
CONTRACT NO. C 18-042
AMENDMENT NO. 02
Agreement between the
CITY OF SEWARD
And
SEWARD CITY TOURS, LLC
SUBJECT: Transportation services for cruise ship passengers and other visitors, between the
Seward Cruise Ship Port, the Alaska Railroad Seward Depot, the downtown business district and
the Seward Boar Harbor in Seward, Alaska, authorized and subsequently amended as follows:
Original Contract:
-- 2019 Seasonal Transportation Services $135,904 approved by Resolution 2018-.042
on April 231d, 2018
- Beginning approximately May 17, 2018 and running the entire 20, i 4 and 2019 tourist
season, concluding at the end of the tourist season 2019 cruise ship schedule, or other date
agreed by both parties pursuant to section 26.2 of this agreement
- 2021 Seasonal Transportation Services $161,335 approved by Resolution 2019- 038
onApril 22" d, 2019
- *2022 Seasonal Transportation Services $228,020 approved by Resolution 2019-038 on
April 22nd 2019
- *2023 Seasonal Transportation Services $241,701 approved by Resolution 2019- 038
on April 22nd 2019
Amendment No. 2
• 2021 Season Transportation Services for limited service in the amount of 83,800 due
to Covid-19
• Invoices will be issued for services rendered with passenger numbers. Invoices will
be paid 30 days after receipt.
• Daily service from 1 l am to 6pm starting at the train depot and providing transportation
for visitors to access the historical downtown district. Many small business owners as
well as the Alaska Sea Life Center greatly depend on the shuttle service to bring traffic
from the Harbor. This option works with the Alaska Railroad's departure and arrival
times to maximize optimal use of transportation needs.
Beginning approximately May 14, 2021 and running the entire 2021 with one-year options to
extend for the 2022 and 2023 tourist seasons. concluding at the end of the 2021, 2022 or
2023 cruise ship schedule, or other date agreed by both parties pursuant to section 26.2 of this
agreement.
Indicates 5easwizl transportation service extensions if awarded by the City Manager as established in Resolution
MIA
SEWARD CITY TOURS, LLC
-4z4r4L-
Jonah w•iderski- Owner
CITY OF SEWARD
Norm Regis_ A g City Manager
ATTEST:
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