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02132023 City Council Packet
V 04 a spo 2ja Seward City Council vp pot Agenda Packet fe 4 -- 9�� � ap god Ob 0 0 9 ft 06 ft 4 It qr 'ILA OP Ip AP 4L La 44 0 or �40 a Monday, February 13, 2023 City Council Chambers Beginning at 7:00 p.m. 1963 1965 2005 The City of Seward, Alaska CITY COUNCIL MEETING AGENDA II City Council Chambers, 410 Adams Street Please silence all cell phones during the meeting Mayor Sue McClure Vice Mayor John Osenga Council Member Liz DeMoss Council Member Mike Calhoon 1. CALL TO ORDER Council Member Randy Wells Council Member Kevin Finch Council Member Robert Barnwell February 13, 2023 at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL y of SE�y 9cAS�P City Manager Janette Bower City Clerk Brenda Ballou City Attorney Brooks Chandler 4. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING (Those who have signed in will be given the first opportunity to speak. Time is limited to 3 minutes per speaker and 36 minutes total time for this agenda item.) 5. APPROVAL OF AGENDA AND CONSENT AGENDA (Approval of ConsentAgendapasses all routine items indicated by asterisk (*). Consent Agenda items are not considered separately unless a council member requests. In the event ofsuch a request, the item is returned to the Regular Agenda.) 6. SPECIAL ORDERS, PRESENTATIONS AND AWARDS A. Proclamations and Awards 1. Remembering Louis Bencardino In Memoriam ................................................... Pg. 4 B. City Manager Report............................................................................... Pg. 5 C. City Clerk Report.................................................................................. Pg. 66 D. City Attorney Report.............................................................................. Pg. 67 E. Other Reports and Announcements F. Presentations 1. Homer Electric Association presentation by Brad Janorschke. 1 7. CONSENT AGENDA A. Minutes of Preceding Meeting * 1. January 23, 2023 City Council Special Meeting Minutes .................................... Pg. 69 *2. January 23, 2023 City Council Regular Meeting Minutes ................................... Pg. 72 B. Introduction of Ordinances * 1. Ordinance 2023-003, Amending Seward City Code Chapter 3.50 — Holidays............ Pg. 81 C. Resolutions *1. Resolution 2023-014, Authorizing the City Manager to Execute R&M Engineering Task Order No. 2734.29, Completing Required Survey Work and Producing a Professionally Sealed As -Built Drawing of the Lawing Substation, in the Amount of $15,765 and Appropriating Funds. Pg. 89 *2. Resolution 2023-015, Authorizing the City Manager to Purchase Six 115kV Voltage Transformers from Instrument Transformer Equipment Corporation (ITEC) in the Amount of $67,122, plus a 10% Contingency for Installation in the Fort Raymond Substation, And AppropriatingFunds................................................................................ Pg. 130 *3. Resolution 2023-016, Authorizing the City Manager to Enter into Amendment 91 to the Contract Between the City of Seward and Yukon Fire Protection to Include the new Animal Shelter in the ServiceContract...................................................................................... Pg. 141 *4. Resolution 2023-017, Accepting and Appropriating Animal Shelter Donations in the Amount of $20,611.57, Collected Until December 31, 2022, to Fund Expenses Related to the New Animal Shelter, And Appropriating Funds................................................................ Pg. 154 *5. Resolution 2023-018, Authorizing the City Manager to Purchase from Royal Switchgear Nine 115kV Vertical Break Switches for Installation in the Fort Raymond Substation in a Not -to - Exceed Amount of $167,455, And Appropriating Funds ....................................... Pg. 159 *6. Resolution 2023-019, Supporting and Requesting the City of Seward Be Re -Established as an Active Port for the Alaska Marine Highway System .......................................... Pg. 165 *7. Resolution 2023-020, Updating The Mobile Vendor And Roving Vendor Policy For Permitting Vendors On City -Owned Property ............................................................... Pg. 256 D. Action Memoranda *1. Action Memorandum 2023-001, Accepting the Resignation of Brandii O'Reagan from the Port and Commerce Advisory Board and Directing the City Clerk to Advertise the Vacant PACAB Seat.................................................................................................... Pg. 276 E. Other Items 8. PUBLIC HEARINGS (Public hearing comments are limited to five (5) minutes per person. After all speakers have spoken, a person may speak for a second time for no more than one (1) minute.) A. Ordinances for Enactment 1. Ordinance 2023-002, Amending Seward City Code Title 2 — Administration ................... Pg. 280 B. Resolutions Requiring Public Hearing 1. Resolution 2023-013, Approving An Agreement With Kenai Mountain Public Media, Inc. For Joint Use Of The City's Satellite Receiving Dish, Equipment Shelter And Tower Located On Lots 9, 10, And 11 Block 16, Original Townsite Of Seward For FM Radio Receiving And Transmitting Purposes............................................................................. Pg. 329 9. UNFINISHED BUSINESS 10. NEW BUSINESS A. Resolutions B. Action Memoranda C. Other New Business II. INFORMATIONAL ITEMS AND REPORTS (No action required.) A. Boards and Commissions Minutes 1. Planning & Zoning Commission 2. Port & Commerce Advisory Board 3. Historic Preservation Commission B. Other Items 12. CITIZEN COMMENTS (There is no sign in for this comment period. Time is limited to five (5) minutes per speaker) 13. COUNCIL AND ADMINISTRATION COMMENTS AND RESPONSES TO CITIZEN COMMENTS 14. EXECUTIVE SESSION A. Per Seward City Code 2.10.033(E)(2): Subjects that tend to prejudice the reputation and character of any person, provided the person may request a public discussion — City Clerk Evaluation. 15. ADJOURNMENT 3 45n DU#na t a #n Louis "Louie" Bencardino Louis Bencardino was born and raised in (Pennsylvania. Before he even finished high school, "Louie" signed up for the `USArmy and was stationed in Germany during the Yorean War. In 1960, Louie came to Alaska and served on police forces in (Fairbanks, Palmer, GCennarren, Nome, and the 914arshalllslands. In 1975, Louie moved to Seward to be the Chief of Police, a role in which he served unti(1991. (Following his retirement in 1991, until (ate 1994, Louis served on the Seward City Council Oe then served for one year on the Wort 6� Commerce Advisory Board, and then was elected as Seward's Mayor from 1995 to 1997. Over the course of those six years of service, Louie contributed to the continued development of the Seward Marine Industrial Center, the extension of mash Road, and the creation of the Alaska SeaLife Center and a new hospital. Louie married Dianne Carlson in 1995 and started a family; they had four children. In 2016, after 13 years of service, Louie retired (again! from the Alaska 12ai(road Corporation. During his tenure with the railroad as the Seward Dock and Real Estate 914anager, Louie consistently advocated for upgrades and improvements to the facilities and docks. Yfe also fought to enable locals to use the Dale R. Lindsey Intermoda(Terminalfor activities and events. Louie was described as service -oriented, know(edgeab(e, professional, and accommodating by the people he served Ois devotion to Seward and his dedication to the community was always his priority..Ife had a warm smile and a quickwit, and he is missed by a((who knew him. On behalf of the Seward City Council, I extend our deepest condolences and present this special recognition In 914emoriam to the family of Louis Bencardino. Dated this 13th day of February, 2023. The City of Seward, Alaska Sue McClure, Mayor City of Seward City Manager's Report February 13, 2023 Mayor McClure and Council Members, Juneau Visits Overall, I believe our trip to Juneau was very productive. Legislators were welcoming, even in the midst of organizational change affecting their workspaces and positions. Department of Labor Workforce Development Our first meeting was with Commissioner Dr. Tamika Ledbetter, Department of Labor and Workforce Development. Attending the meeting was Deputy Commissioner Kathy Munoz. Commissioner Ledbetter shared the AVTEC vision and reported portable trainings are now offered in the rural, bush Alaskan communities. Our group expressed the need to offer programs addressing the upcoming influx of infrastructure projects. We requested more communication with the city regarding the center, including the city's involvement in strategic planning meetings and offered our support for program expansion. Senate President Gary Stevens We met with Senator Stevens and covered a wide range of topics affecting Seward and Alaska. The topics included: • Seward Airport, recognized the issues affecting the current long runway and expressed our desire to continue the conversations regarding Seward's need for a long runway. • Housing issues and the need for funding for water and sewer expansion, allowing housing development within Seward. • Chugachmuit Clinic addressing the medical needs of the native community and veterans and the positive impact on Seward. • Natural gas and the positive impact for our businesses and residents. • The Seward Marine Industrial Center (SMIC) expansion project that not only benefitting Seward but the state of Alaska as well. • Food sustainability and Seward's port having the capability to immediately become a secondary port. • School funding and Seward's declining school enrollment due to the lack of available housing. • Tier 5 legislation and the effect of positive recruitment for public safety and teachers. Department of Corrections (DOC) We met with Commissioner Jen Winkelman and two of her staff members. The conversation centered around the municipal jail issues and need for continued conversations to address the contract issues. We expressed our frustration with continuing to be underfunded. Commission Winkelman indicated her desire to form a task force to bring the department and affected municipalities to discuss the issue. Department of Commerce, Community, and Economic Development (DCEED) We met with Commissioner Sande and discussed the overall issues affecting Alaska. Commission Sande spoke of the Alaska needing to tell Alaska's story to the lower 48. We also discussed: 0 Housing challenges affecting overall economic growth in Alaska. • Strengthening the relationship with the Alaska Railroad Corporation in support of tourism and cruise ship growth. • Professional licensing and the process for licensing. • Commitment to AVTEC programming by DCEED. • JAG's success in Alaska and the importance of their operations in the state. • Childcare and the impact on the workforce. • Nurse Licensure Compact and the importance of the multistate licensing. Department of Transportation (DOT) We met with Commissioner Ryan Anderson and Deputy Commissioner Katherine Keith. The bulk of the conversation centered around the airport and Alaska Marine Highway System. We expressed the need for the department to reexamine Seward's future use of the airport and expressed the impact Chugachmuit Clinic will have on air travel. We spoke of the importance of our airport for emergencies, not only in our community, but emergencies affecting other portions of the state. We further stated that until our questions were answered, the council will not being forward with the land sale. We then spoke of the ferry system returning to Seward. Again, we expressed the anticipated use by persons accessing the Clinic and travel for sporting events. This conversation is the motive for the resolution on tonight's agenda. Governor Dunleavy's Chief of Staff Tyson Gallagher We spoke with Mr. Gallagher about a wide range of topics including: • Community jail issue and the impact on the municipalities who operate them. • AVTEC and our desire for program expansion. • Recognition of Seward as the secondary port for food security. • Renewable energy and the importance of natural gas to the Seward community. • Carbon credits and the benefits to Alaska. Representative Louise Stutes We met with Representative Stutes multiple times and thanked her for her support of Seward and the Seward community. Representative Stutes is passionate about bringing the ferry back to Seward. She recognizes Seward's challenges related to housing and supports our desire to craft legislation, allowing infrastructure funding to be used for utility expansion, in addition to utility replacement. Representative Stutes finds our harbor and harbor operations impressive and supports the expansion project, allowing the harbor to grow. Confluence Strategies The Confluence Strategies weekly status report is attached. Seward Journal — Guest Article I've attached the guest article that will be in the upcoming Seward Journal Purchase Orders Please the attachment for the purchase orders and please note these include the "open POs" for the year. Thank you, J*7.- City of Seward - Human Resources Manager Report Staffing Information # of Department Job Title Positions Filled Administration City Manager 1 1 Assistant City Manager 1 1 Human Resources Manager 1 1 Executive Assistant 1 1 TOTAL: 4 4 Finance Director - unfunded for 2023 1 0 Deputy Finance Director 1 1 Senior Accountant 1 1 Accounting Technician III 1 1 Accounting Technician II 1 0 Accounting Technician - Utilities 2 1 Accounting Tech Payroll 1 1 Accounting Tech Accounts Payable 1 1 TOTAL: 9 6 Public Works Director 1 1 Street Foreman 1 1 Maintenance Mechanic 3 3 Executive Assistant 1 1 Shop Foreman 1 1 Water and Wastewater Foreman 1 1 Water and Wastewater Operator 3 3 Custodian 2 1 TOTAL: 13 12 Community Development Director 1 1 Planner 1 1 GIS Technician 1 1 TOTAL: 3 3 Electric Director 1 1 Operations Supervisor 1 1 Field Engineer 1 0 Executive Assistant 1 1 Lineman 4 4 Plant Operator 2 2 TOTAL: 10 9 Fire Department Chief 1 1 Deputy Chief 1 1 Executive Assistant 1 1 Building Official 1 1 Building Fire Inspector 1 1 Firefighter/EMT 1 1 Seasonal - Summer Laborer 1 0 TOTAL: 7 6 # of Department Job Title Positions Filled Harbor Harbor Master 1 1 Deputy Harbor Master 1 1 Office Manager 1 1 Executive Assistant 2 1 Harbor Worker II 6 6 Harbor Worker III 1 1 Seasonal - Summer Laborer Part -Time 1 0 Seasonal - Summer Laborer Full -Time 1 0 TOTAL: 14 11 IT Director 1 1 Senior IT Tech 1 1 IT Technician 1 1 TOTAL: 3 3 Library Director 1 1 Program Coordinator 1 1 Library Technician 1 1 Curator 1 1 Library Aide 1 1 Seasonal - Aides 2 2 TOTAL: 7 7 Police Chief 1 1 Deputy Chief 1 1 Sergeant 1 1 Executive Assistant 1 1 Patrol Officer 7 4 Patrol Officer not funded 1 0 Corrections Sergeant 1 0 Corrections Officer 4 4 Corrections Officer not funded 1 0 Dispatch Supervisor 1 1 Dispatcher 5 3 Animal Control Officer 1 1 Animal Control Officer Assistant 1 1 DMV Clerk 1 1 TOTAL: 27 19 Parks & Recreation Director 1 1 Deputy Director 1 0 Executive Assistant 1 0 Campground Coordinator 1 1 Program Coordinator 1 1 Recreational Assistant 1 1 Maintenance Technician 1 0 Seasonal - Summer, Rec Aide 15 1 Seasonal - Winter 2 2 TOTAL: 24 7 # of Department Job Title Positions Filled City Clerk's Office City Clerk 1 1 Deputy City Clerk 1 1 Executive Assistant 1 1 TOTAL: 3 3 Total number of authorized positions: 124 Total number of filled positions: 90 CO11f ucnee Strategics City of Seward Alaska Weekly Session Report 2023 Legislative Session 33rd Legislature -1st Session January 28, 2023 Legislature Majority press releases & announcements: House Majority No official website yet up and running Senate Majority Senate Majority Announces Committee Chairs and Priorities for the 33rd Alaska State Legislature ANCHORAGE - Today, the Alaska Senate Majority finalized committee chairs and announced their initial legislative priorities for the 33rd Alaska State Legislature. In November, the Senate Majority announced their leadership structure with Senator Gary Stevens (R-Kodiak) as Senate President, Sen.-elect Cathy Giessel (R-Anchorage) as Majority Leader, Sen. Bill Wielechowski (D-Anchorage) as Rules Chair, Sen. Click Bishop (R-Fairbanks) as Majority Whip, Sen. Bert Stedman (R-Sitka), Sen. Lyman Hoffman (D-Bethel), and Sen. Donny P.O. Box 110190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 10 Confluence Strategics Olson (D-Golovin) as chairs of the Finance Committee, and Sen. Elvi Gray Jackson (D- Anchorage) as Legislative Council Chair. The 17-member Senate Majority's initial priorities will focus on finding long-term solutions to lowerAlaska's high energy and healthcare costs, providing adequate funding for public education while accessing accountability and performance, and identifying and seeking solutions for teachers and public employee recruitment and retention. "We have an opportunity in front of us to advance Alaska to a place where generations of families are proud to call home. That starts with a strong public education system where resources are available for ouryoungestAlaskans, accessible job training for new industries, and finding solutions to reduce the high costs of energy and healthcare," said incoming Senate President Gary Stevens. "We have a lot of work in front of us this upcoming session, and I know all members of the Majority are eager to get to work and provide these opportunities for Alaskans to prosper." https:,(/www.alaskasenate.oW.4/ress-1011123 press release.htm Minority press releases & announcements: House Minority No official website yet up and running Senate Minority No official website yet up and running P.O. Box 110190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 11 Conflucnee Strategics SENATE SB 44 NATUROPATHS: LICENSING; PRACTICE SB 45 DIRECT HEALTH AGREEMENT: NOT INSURANCE SB 46 BRAIN INJURY AWARENESS MONTH SB 47 SB 48 CARBON OFFSET PROGRAM ON STATE LAND SB 49 CARBON STORAGE HOUSE HB 42 ELIMINATE UNNECESSARY AGENCY PUBLICATIONS HB 43 CONVERSION THERAPY PROHIBITIONS HB 44 CULTURAL EDUCATION PROGRAM HB 45 PFD CONTRIBUTIONS TO GENERAL FUND AND PF HB 46 CHILD CARE PROVIDER COLLECTIVE BARGAINING HB 47 DIRECT HEALTH AGREEMENT: NOT INSURANCE HB 48 HUMAN RIGHTS COMMISSION ANNUAL REPORT HB 49 CARBON OFFSET PROGRAM ON STATE LAND HB 50 CARBON STORAGE SENATOR GIESSEL BY REQUEST SENATOR WILSON SENATOR TOBIN SENATE RULES BY REQUEST OF THE GOVERNOR SENATE RULES BY REQUEST OF THE GOVERNOR HOUSE RULES BY REQUEST OF THE GOVERNOR REPRESENTATIVE HANNAN REPRESENTATIVE STORY REPRESENTATIVE PRAX REPRESENTATIVE FIELDS REPRESENTATIVE MCCABE REPRESENTATIVE PRAX HOUSE RULES BY REQUEST OF THE GOVERNOR HOUSE RULES BY REQUEST OF THE GOVERNOR BILL SHORT TITLE SPONSOR(s) STATUS DATE HB 35 REPEAL CERTIFICATE OF RAUSCHER (H) HSS 01/19/23 NEED PROGRAM HB 49 CARBON OFFSET PROGRAM RLS BY REQUEST (H) RES 01/27/23 ON STATE LAND OF THE GOVERNOR HB 50 CARBON STORAGE RLS BY REQUEST (H) RES OF THE GOVERNOR 01 /27/23 SB 33 RENEWABLE ENERGY KAUFMAN (S) RES 01/18/23 GRANT FUND P.O. Box 110190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 12 Conflucnee Strategics SB 48 CARBON OFFSET PROGRAM RLS BY REQUEST (S) RES 01/27/23 ON STATE LAND OF THE GOVERNOR SB 49 CARBON STORAGE RLS BY REQUEST (S) RES 01/27/23 OF THE GOVERNOR Hearing Schedule Next Week:: (S)FINANCE Jan 30 Monday 9:00 AM SENATE FINANCE 532 APPROP: OPERATING BUDGET/LOANS/FUND; += SB 40 SUPP += SB 41 APPROP: CAPITAL/SUPPLEMENTAL *+ SB 42 APPROP: MENTAL HEALTH BUDGET Legislative Finance Overview of Proposed FY24 Budget by Alexei Painter, Director of Legislative Finance Bills Previously Heard/Scheduled (H)FINANCE Jan 30 Monday 1:30 PM ADAMS 519 *+ HB 40 APPROP: CAPITAL/SUPPLEMENTAL + Overview: Capital Budget by Neil Steininger, Director Office of Management and Budget P.O. Box 110190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 13 Conflucnee Strategics (S)EDUCATION Jan 30 Monday 3:30 PM BELTZ 105 (TSBIdg) Presentation: Challenges Facing Public Education in Alaska by Dillingham City School District Superintendent Amy Brower Sandy Thompson Wallace, President of APEA/AFT -- Public Testimony -- Public testimony on the issue of public education funding in Alaska. Bills Previously Heard/Scheduled **Streamed live on AKL.ty** (S)RESOURCES Jan 30 Monday 3:30 PM BUTROVICH 205 Presentation: Cook Inlet Gas Update by John Boyle, Commissioner -Designee, Department of Natural Resources John Crowther, Deputy Commissioner, Department of Natural Resources Derek Nottingham, Director, DNR Division of Oil and Gas -- Testimony <Invitation Only> -- Bills Previously Heard/Scheduled **Streamed live on AKL.ty** (H)TRANSPORTATION Jan 31 Tuesday 1:00 PM BARNES 124 -- Testimony <Invitation Only> -- Overview: Department of Transportation & Public Facilities by Commissioner Ryan Anderson; Deputy P.O. Box 110190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 14 Confluence Strategies Commissioner Katherine Keith; Deputy Commissioner John Binder; Joe Kemp, Acting Northern Region Director; Wolfgang Junge, Central Region Director; Lance Mearig, Southcoast Region Director **Streamed live on AKL.ty** Bills Previously Heard/Scheduled (S)COMMUNITY & REGIONAL AFFAIRS Jan 31 Tuesday 1:30 PM BELTZ 105 (TSBIdg) Presentation: Alaska Municipal League Overview by Nils Andreassen, Executive Director of Alaska Municipal League **Streamed live on AKL.ty** (S)TRANSPORTATION Jan 31 Tuesday 1:30 PM BUTROVICH 205 -- Teleconference <Listen Only> -- Presentation: Federal & State Funding to DOT&PF Overview Department of Transportation and Public Facilities -- Testimony <Invitation Only> -- **Streamed live on AKL.ty** P.O. Box 110190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 15 Conflucnee Strategics (S)HEALTH & SOCIAL SERVICES Jan 31 Tuesday 3:30 PM (H)JUDICIARY Feb 01 Wednesday 1:00 PM (H)RESOURCES Feb 01 Wednesday 1:00 PM (H)FINANCE Feb 01 Wednesday 1:30 PM *+ H B 39 *+ H B 41 BUTROVICH 205 Presentation: Department of Health by Commissioner -designee Heidi Hedberg Deputy Commissioner Emily Ricci Assistant Commissioner Josie Stern Deputy Director Heather Carpenter GRUENBERG 120 Department of Corrections Overview by: TBA BARNES 124 Overview: Responsibilities and Current Issues by Department of Fish and Game University Efforts and Status of Land Grant by Chad Hutchinson ADAMS 519 APPROP: OPERATING BUDGET/LOANS/FUND; SUPP APPROP: MENTAL HEALTH BUDGET Presentation: Deferred Maintenance by Neil Steininger, Director, Office of Management & Budget; Paloma Harbour, Fiscal Management Practices Analyst; Department of Transportation and Public Facilities; University of Alaska P.O. Box 110190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 16 Confluence Strategies + Bills Previously Heard/Scheduled (S)EDUCATION Feb 01 Wednesday 3:30 PM BELTZ 105 (TSBIdg) Presentation: Cost Estimates for a Base Student Allocation Increase by Alexei Painter, Director of the Legislative Finance Division -- Public Testimony -- Public testimony on the issue of education funding in Alaska. BSA Increase Bill <Pending Introduction & Referral> Bills Previously Heard/Scheduled **Streamed live on AKL.ty** (S)RESOURCES Feb 01 Wednesday 3:30 PM BUTROVICH 205 Presentation: Alaska Utilities Panel by Brad Janorschke, General Manager of Homer Electric Association Arthur Miller, Chief Executive Officer of Chugach Electric Association Tony Izzo, Chief Executive Officer of Matanuska Electric Association John Burns, President and Chief Executive Officer of Golden Valley Electric Association Presentation: Alaska Gasline Development Corporation Overview by Frank Richards, President of Alaska Gasline Development Corporation P.O. Box 1 10190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 17 Confluence Strategies -- Testimony <Invitation Only> -- Bills Previously Heard/Scheduled **Streamed live on AKL.ty** (H)TRANSPORTATION Feb 02 Thursday 1:00 PM BARNES 124 -- Testimony <Invitation Only> -- + Overview: Department of Transportation & Public Facilities/Aviation Division by Deputy Commissioner John Binder; Troy LaRue, Statewide Aviation Ops Manager; Ryan Marlow, Statewide UAS Coordinator **Streamed live on AKL.ty** + Bills Previously Heard/Scheduled (H)FINANCE Feb 02 Thursday 1:30 PM ADAMS 519 + Overview: FY 22 Governor's Supplemental Budget by Neil Steininger, Director, Office of Management & Budget + Bills Previously Heard/Scheduled (S)TRANSPORTATION Feb 02 Thursday 1:30 PM BUTROVICH 205 -- Teleconference <Listen Only> -- Presentation: Overview of Alaska Marine Highway Board by Department of Transportation and Public Facilities -- Testimony <Invitation Only> -- **Streamed live on AKL.ty** P.O. Box 110190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 18 Confluence Strategies (H)HEALTH & SOCIAL SERVICES Feb 02 Thursday 3:00 PM DAVIS 106 + Presentation: Department of Health by Commissioner -Designee Heidi Hedberg **Streamed live on AKL.ty** Hearina materials/Documents of interest: Presentation: Department of Education & Early Development DEED Overview for Senate Education 01.20.2023.12df Presentation: Alaska North Slope Oil and Gas Resources 2023 0123 SRES DNR NS Oil and Gas Update v.2.12df Division of Community and Regional Affairs 1.23.22 version DCRA presentation to SCRA Jan 24 2023.pdf Department of Health - Overview DOH Department Overview - DRP 01.23.2023.12df Alaska Mental Health Authority 012523 AMHTA SFC Presentation.pdf Workforce Overview from the Medical Industry 01.25.23 AK Hospital and Healthcare Assoc Presentation.pdf 01.25.23 SCF Workforce Overview Presentation.Ddf Public Education in Alaska Fiscal Challenges and Solutions ACSA Presentation 01.24.2023.12df ACSA 2023 Joint Position Statements 01.24.2023.12df AASB Testimony 01.23.2023.12df AASB 2023 Legislative Priorities 01.19.2023.pdf AASB CPI vs BSA 2012 to 2022 01.23.2023.pdf ASD BSA vs CPI Comparison 01.23.2023.12df P.O. Box 110190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 19 Confluence Strategies NEA Alaska Presentation 01.23.2023.pdf Presentation: 2022 Elections Recap SSTA Presentation Elections 1.26.23.pdf SSAC GOTNV Testimony 1-26-23.pdf Introducing the Frontiers Introducing the Frontiers - Microreactors Idaho National Laboratory - Frontiers Collaboration presentation (2) .odf.pdf Overview: DOT&PF DOTPF Organization Overview 1.25.23.pdf Deferred Maintenance - OMB FY2023 Deferred Maintenance Backlog Combined 012323 1.pdf 012723 OMB DM Overview SFIN.pdf Overview: FY 2024 Fiscal Overview by Leg Finance FY24 Overview HFIN 1-27-23.pdf SB 41 FY2024 Capital Project Review Listing 1160.pdf SB 41 23.01.26 OMB Capital Budget Overview SFIN.pdf SB40/HB39 - APPROP: OPERATING BUDG 012423 OMB Senate Finance Overview.pdf [tevenue Forecast Fall 2022 Revenue Forecast Presentation 2023.01.26.12df Legislative Contact Lists Legislator Contact List Legislator Staff List Legislators by District P.O. Box 110190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 20 Confluence Strategies Legislator Email Address List (csv) Legislative Address Labels - Session Legislator Address Mail Merge - Session (csv) Finance Committee subcommittees - House Committee E-mail Address List (xls) Administration Governor's Office: Governor's Press Releases Governor Dunleavy Delivers Sth State of the State Address Jan 23, 2023 This evening, Governor Mike Dunleavy delivered his fifth annual State of the State Address to a joint session of the Alaska State Legislature, outlining his vision and optimism for Alaska's future. "Our history is always being written, including right now," Dunleavy said. "The question for all of us is what do we want that history to be? Will we still be fighting over the PFD in 50 years? Or, will we have settled this issue long before by respecting the voices ofAlaskans? Will history show that we missed opportunities, or that we seized them? Will we put politics and personalities ahead of the needs of the people? Or, will we transcend politics and personalities, will we do what's right for the people we serve who have become cynical about whatgoes on in Juneau? I believe we are at just such a time. That time is now." View the livestream of the State of the State address. Read the full 2023 State of the State Address here. P.O. Box 110190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 21 Conflucnee Strategics Governor Dunleavy Introduces Carbon Management and Monetization Bills Creating Statutory Structures Jan 27, 2023 Today, Alaska Governor Mike Dunleavy introduced Senate Bill (SBl 48. SB 49.House Bill HB 49, and HB 50, his Carbon Management and Monetization Bill Package, creating statutory and regulatory structures needed to capitalize on carbon markets. The package consists of two pieces of legislation focusing on a carbon offset program; and carbon capture, utilization, and storage (CCUS) program. "In Alaska, we are blessed with the resources of today, but we're also blessed with the resources of tomorrow," said Governor Dunleavy. "With support from the Legislature for our carbon management bill package, we'll change the conversation about new revenue. We've been told by some that we can generate revenue in the billions over 20 years just from our forest lands. This represents the means to fund services, lower the cost of living and improve our quality of life, to create wealth and billions of dollars in economic activity without taxing Alaskans or eliminating the PFD." https:,//gov.alaska.gov/governor-dunleavy-introduces-carbon-management-and- monetization-bills-creating-statutory-structures / Agencies Announcements — Press ReleaseslReports/Public Notices: Oil Prices and Production Oil and Gas Prices for 1/26/2023 ($/barrel) ANS West Coast West Texas Intermediate Brent Henry Hub mmBTU $83.86 $0.83 t $81.01 $0.86 t $87.47 $1.35 t $2.94 ($0.12) 4 (BBLs) ANS Production 489,6801/25/2023 P.O. Box 110190, Anchoragc, AK 99511 423 Seward Street, Juneau, AK 99801 22 Conflucnee Strategies Major News Articles / Political Items of Interest Business/Economy December jobs up 2.1 percent from December 2021 December's job count was up 2.1 percent from December 2021, an increase of 6,400 jobs. A shrinking workforce is hobbling Anchorage's economic recovery, report says Ongoing labor issues mean federal contracts are going to out-of-state firms, and employment in health care and other industries is projected to come up short by "thousands of jobs." State Budget/Programs Alaska Legislature starts budget process facing historically volatile oil prices The Alaska Legislature is starting its annual budget -making process during a period of historic volatility in oil prices. With oil revenue set to account for around a third of the funds that will go toward funding state services, capital projects and the annual Permanent Fund dividend, Alaska Senate members charged with crafting the budget said Friday that they would not bank on high oil prices when planning the budget for the fiscal year that begins in July. httl2s://www.adn.com,/politics/alaska-legislature/2023/01/ 22/alaska-legislature-starts - budget -process -facing -historically -volatile -oil -prices / Gov. Dunleavy appoints 4 to University of Alaska Board of Regents Gov. Mike Dunleavy announced four appointees Monday to the University of Alaska Board of Regents, which is charged with managing the state's university system. https://www.adn.com,/politics/2023/01/1p 23 /gov-dunleavy-aoints-4-to-university-of- alaska-board-of-regents / Alaska lawmakers consider education funding boost, with no agreement on its size Education advocates are calling for an increase of at least 14% to the per -student formula used to calculate funding for K-12 education, but Alaska lawmakers have yet to agree on an exact increase size. P.O. Box 110190, Anchoragc, AK 99511 423 Seward Street, Juneau, AK 99801 23 Confluence Strategies https: [/www.adn.com[politics/alaska-legislature12023101126/alaska-lawmakers- consider-education-funding-boost-with-no-agreement-on-its-size / Big carbon and `small nukes' are state's future, governor says Gov. Mike Dunleavy much -publicized proposal to make carbon credits a cornerstone of the state's revenue stream received much of the focus during a lunchtime presentation before business leaders. https:://www.juneauempire.com/news/big-carbon-and-small-nukes-are-states-future- governor-says/ Federal government awards $285M for Alaska ferries. But to get it, the state needs to put up money, too The U.S. Transportation Department announced this week that it is awarding $285 million to upgrade and modernize Alaska's ferry system. The money comes mostly from programs Sen. Lisa Murkowski added to last year's bipartisan infrastructure bill, but the award to Alaska is larger than even she expected. "I'm so happy. I'm just so happy," she said on a Zoom call with reporters on Thursday, adding, "let's not mess this up, right?" The concern about messing this up hovers over the announcement because the federal money will require the state to put up matching funds totaling more than $100 million and then support the new ferries and facilities with operating and maintenance funds. https://www.ktoo.org/2023/01/26/285-million-for-alaska-ferries/ Politics/Policy Calls Dunleavy urges cooperation to change course of state's history Gov. Mike Dunleavy invoked campaign themes such as a war on fentanyl, offered a long list of bipartisan -minded proposals including greatly extending Medicaid coverage for new mothers, and continued pitching a new financial plan that relies on carbon credit revenues during the first State of the State speech of his second term Monday night_ https: [/www.juneauempire.com/news/dunleavy-to-deliver-first-state-of-state-of-2nd- term Dunleayy keeps u112ing ante on carbon credits, now claims $30 billion in 20 years It was less than two weeks ago that Gov. Mike Dunleavy said that carbon sequestration "has a very real potential of bringing revenue to the State of Alaska to the tune of millions, if not billions, of dollars." P.O. Box 110190, Anchoragc, AK 99511 423 Seward Street, Juneau, AK 99801 24 Confluence Strategies Could it be easy being — and making — green? State, Alaska Native corporations among those who see carbon market potential, but questions remain. Alaska's government might someday be competing for the same customers as Sealaska Corp. in the fast-growing carbon offsets market, but that's likely years away so the Juneau - based Alaska Native corporation that's reportedly earned more than $100 million from its project since 2016 is for now extending an enthusiastic helping hand. https: //www.juneauempire.com/news/could-it-be-easy-being-and-making/ Special Interest Tshibaka sets up campaign group to attack ranked choice voting as anti -democratic Kelly Tshibaka, who is acting as if her next act will be to run against Rep. Mary Peltola for Congress, is trying to keep herself in the public eye with a new nonprofit she has started called "Preserve Democrac,L Ready, set: Petition to repeal Ballot Measure 2 has been approved by Lt. Gov. Dahlstrom A group of Alaskans seeking to repeal a 2020 Alaska law that created no -party primaries and ranked choice voting has had its application to collect signatures on a petition approved by Lt. Gov. Nancy Dahlstrom. https:,//mustreadalaska.com/ready-set-12etition-to-repeal-ballot-measure-2-has-been- app roved-by_lt-gov-dahlstrom/ For the first time in history, mathematics achievement scores in the United States dropped - from 241 in 2020 to 234 in 2022. As new research rolls in, the stark realities of the effects of COVID-19 on educational attainment are setting in. A report from the National Assessment of Education Progress ( NAEP ) shows declines across the board in reading and math scores and a widening inequality gap across various measures such as gender, race, and economic status. Even before the pandemic, the U.S. was falling behind the rest of the world. https:Ilwww.kinyradio.com/news/news-of-the-north/rising-inequality-revealed-ranking_ the -most -and -least -educated -states / Institute for Justice: Parent group brings swift response to NEA lawsuit over public funding of correspondence schools P.O. Box 110190, Anchoragc, AK 99511 423 Seward Street, Juneau, AK 99801 25 Confluence Strategies A group of Alaska families announced Thursday they have brought the Institute for Justice to defend them against the National Education Association's lawsuit that seeks to end public funding of the state's correspondence school program. https: I Imustreadalaska.com/institute-for-j ustice-parent-group-brings-swift-response-to- nea-lawsuit-over-public-funding-of-correspondence-schools / P.O. Box 110190, Anchorage, AK 99511 423 Seward Street, Juneau, AK 99801 26 Seward Journal Guest Column February 8, 2023 On May 2, Seward's citizens will make one of the most important decisions the city has faced in recent history. Special election voters will decide whether the city sells its electric utility to Homer Electric Association (HEA,) or keeps it in current ownership. As Seward's city manager, I encourage voters to carefully weigh the advantages and disadvantages of selling the utility. This decision will impact generations to come, so it's important to think through the issue. In approving the sale and selecting Homer Electric Association (HEA) as its preferred utility provider, our city council attended three executive sessions to evaluate the pros and cons of selling the utility. These sessions included presentations from both HEA and Chugach Electric Association (CEA.) Afterward, it became clear to council members that a larger utility would best serve our community. The council made this determination by focusing on three R's of an electric utility: rates, resources, and reliability. Below are key points for voters to consider: Rates Over the next 10 to 15 years, the city's electric system faces multiple rate increases as the utility plays catch-up on deferred maintenance, and begins updating technology to modern standards. Economic modeling shows ratepayers can expect several of these rate increases to reach 10 percent or more. This is the reality of a small utility that cannot spread costs over a large population —the city of Seward has fewer than 3,000 electric meters. When regular maintenance is postponed, eventually bigger investments are required to get back on track. This is the situation in Seward today. Currently, HEA's residential rates are approximately three cents per kilowatt-hour higher than residential rates in Seward. But this is only a snapshot in time, as Seward's rates will most certainly surpass those of HEA in the not -too -distant future. Unlike Seward, HEA has invested aggressively in maintenance, dependable power generation and storage, and technology (cybersecurity). These strategic investments are moving HEA into a position of rate stability, while Seward is moving in the opposite direction. Additionally, HEA, with approximately 36,000 meters, has a significantly larger customer base for both bringing in revenues and spreading costs. For perspective, Seward will spend more than $10 million over the next two years to upgrade its aging infrastructure. Simple math tells us customer rates will rise much higher when those costs are spread across only 2,900 meters compared with 36,000. Resources A larger utility brings more resources to bear, both human and financial. Our system in Seward operates with only 10 employees, most in positions that are operations focused. HEA operates its system with more than 130 employees. Seward's limited staffing is unlikely ever to allow for the programs and services many of our customers have requested but that only larger utilities provide. Services like equal payment plans, heat pump rebates, energy efficiency education, low-income assistance, commercial rate alternatives, and various others, are more standard in larger utilities. Additionally, limited personnel results in coverage gaps when an employee retires or otherwise moves on from the utility. And as we all know, finding skilled new employees is often hard because of Seward's relatively remote location. 27 Seward Journal Guest Column February 8, 2023 Seward's staffing limitations also mean the utility cannot rely on in-house expertise offered by larger utilities, especially in areas like billing, engineering, rate design, cybersecurity and communications. Instead, Seward's electric department relies on consultants for these services, which is expensive and inefficient. This reality routinely results in project delays. Seward's financial resources are also restricted by the small number of customers (or meters.) Unfortunately, Seward's number of meters has not changed much over the past two decades, making it difficult to increase the electric utility's revenues in any meaningful way. Ironically, what makes Seward such an attractive place to live and visit --large, majestic mountains surrounding the scenic Resurrection Bay --makes it difficult for the city to expand its boundaries and for the electric utility to gain new customers and revenues. Reliability Of course, fewer human and financial resources means less system reliability, bringing us to a fourth "R": reality. Running an electric utility is expensive. It requires regular investments in maintenance, new infrastructure, updated technology, and employee training and retention. In Seward, it is even harder when only 2,900 meters are available to drive revenues and system growth is stagnant. These factors make ongoing upgrades difficult to achieve. Overtime, this places the utility in the difficult position of weighing system investments against the impact those costs will have on customer rates, which could directly impact reliability. As the electric department has begun catching up on its maintenance over the past two years, it has made significant operational investments. The utility has taken out a $10 million bond to rebuild aging transmission infrastructure, spent nearly $1 million to clear transmission rights of way, and paid approximately $300,000 to repair one of the power plant's six diesel generators. These investments are separate from the rising costs the utility is already managing due to higher inflation. All electric utilities have a responsibility to serve their customers with the safest, most reliable and affordable power they can deliver. The citizens of Seward deserve this same level of service from their electric provider. The city is fortunate that it's small team of electric department employees is so dedicated to keeping the lights on. We can rightly be proud of their service to all of us. In closing, I ask voters to ask this question before casting a ballot: "Are rising rates, fewer resources and services, and a potentially less reliable system what I want from my electric utility?" 28 City of Seward Department Activity Reports Assistant City Manager Stephen Sowell ➢ Public Works Shop Project: Work continues on the preliminary design and engineer's estimate. We held a project meeting on January loth to continue work on the project. The survey team from R&M Engineering conducting field work at the Fort Raymond site January 9 through 12 to continue work on facility layout. R&M Engineering is working on completing the preliminary cost estimate and finalize the project schedule. ➢ We are beginning the project to update the Strategic Plan. This document has not been updated since 1999 and the goal is to align the actions described in the Strategic Plan with the 2030 Comprehensive Plan. ➢ The Assistant City Manager and Community Development Director attended the Anchorage Economic Development Convention on January 25th. This was an excellent opportunity to learn more about commerce and economic development in South Central Alaska. 011 Community Development Department Jason Bickling Director Notes: ➢ In September, the Borough and a number of communities in the Borough collaboratively applied for a Safe Streets and Roads for all Grant. This grant enables each entity to create a plan that needs to be in place in order to access federal funding for improvements or expansion of sidewalks and roadways. As we continue in the process that this award has opened, I will keep you posted. ➢ The Free Shuttle RFP will be going out in February for the next cycle 2024-2026. ➢ Working on the Public Works Building Project — both new site development and the development of the current site for residential housing after it is moved. ➢ Working on Port Avenue Improvement Plan and Shuttle Infrastructure and Signage. We believe this will help different visitor groups find their way around the community more effectively and comfortably, especially during inclement weather. ➢ Stephen Sowell and I attended an Anchorage Economic Development Corporation (AEDC) presentation that gave data on what happened in their economy in 2022 and the forecast for the next few years. They also presented a 5 year plan to address the issues they are facing. They are dealing with many of the same issues we are and so we are looking at scaffolding some of their research and work as we look to update the Strategic Plan. ➢ P&Z Commissioner Training: Last year our commissioners had the opportunity to participate in two trainings. The state came down and provided a training on the operations and procedure side of the Commission work— state and local laws, open meetings acts, Roberts Rules of Order, discussing case studies, etc. We are working with the Clerk to have this training opportunity again. The Alaska Planning Association had a virtual conference last year that was a little lacking with the delivery. Thankfully, they are going back to an in -person event this year in mid -August. They have a day dedicated to Commissioner Training Day that we will be attending and those commissioners who have attended before speak highly of it. ➢ Jason Bickling recently attending the Incident Command System (ICS) 300 Training. Courtney Bringhurst will be attending the American Planning Association Conference at the beginning of April. Kai ➢ Selena met with a number of individuals in regards to the process and status of the Cemetery information collection, ground penetrating radar, and GIS work. ➢ We are working with R&M to help us review the Municipality of Anchorage Utility Standards (materials and installation) to see if they would be a good fit for us to adopt /point to into our code as it is currently soft in those areas. This would help make our requirements explicitly standardized and more robust. ➢ Our STR online application is open and we are processing permits. We are modifying the form and process along the way to help make things easier for the STR owners. This is the only year that they will have to input all of their information as it will carry over from year to year and can make modifications as needed. ➢ Compliance: With short term rental owners and operators, like any industry we monitor, we have a very large majority of people that are honest and do great business. Do we have people that are either completely uninformed about the requirements to operate a business but are not doing it intentionally? yes. Do you we have people that are trying to be deceitful about some part of their operation? yes. Those groups are a far minority and we have things in place to monitor and pursue compliance with both. We don't have the time and resources to go physically inspect every single Short -Term Rental or Property for things like making sure they are using the correct percentages of their square footage and I don't think we need to. We work closely with the Fire Department Building Inspectors. If they find something that looks like it could be out of compliance in their Life Safety Inspection Process, they let us know. We also contract with Hamari, which helps us on other types and levels of compliance. We do monitor compliance (with Short Term Rentals and other types of land use) and address those that are not compliant through a documented process that if not complied with, ends up in legal means to make it happen. As you go down the compliance road, it gets resource heavy — people, time, and money — and I'm speaking to the ones who do not want to comply. I spent a lot of time on a couple of these situations this year (with attorneys involved) to bring people / businesses into compliance. I know that the Fire/Building Department has a similar process and is also working on some of those through legal means as well. We know that there are things we need to do to improve but we also have a process in place that works and has teeth. The results from this year have proven that. ➢ Working on the paperwork for the DRP projects that are in process ➢ Continuing conversations with DOT in regards to the Airport Replat issues ➢ Continuing GIS work for Community Development, Fire, Building, Public Works, Utility, and Parks and Rec. We are also developing detailed "work" maps for the Kea departments as well. We will be hiring a temp in the near future to begin digitally archiving maps and records. ➢ We are continuing with our normal business of processing of records requests, short term rental permits, replats, rezones, CUPs, and consulting regularly with community members that have questions about the development and use of their land and helping with applications. 33 Electric System Director Rob Montgomery ➢ Nash Road Infrastructure Work (Ongoing) — Meetings and calls continue to be held each week as Sturgeon Electric prepares for the installation of 12-13 poles in a marsh area off Nash Road while the ground is frozen. We also continue to work with engineering consultant, Dryden & LaRue, to sequence material orders and related Resolutions over the next several months to meet deadlines associated with construction activities. ➢ Potential Utility Sale (Ongoing) — HEA due diligence efforts are winding down as the City has shared a great deal of information via documents, maps, engineering designs and other materials. HEA and the City are now turning their attention to their respective communications related to a potential sale. On February 8, the Seward Journal ran a guest column (op-ed) from Seward City Manager Janette Bower, and HEA is scheduled to provide a short presentation to City Council at its February 13 meeting. HEA and Seward are also beginning preliminary contract negotiations. ➢ Railbelt Utilities in Juneau — The CEOs from Chugach Electric, Golden Valley Electric, Homer Electric and Matanuska Electric were in Juneau the week of January 30 to meet with legislators and legislative committees to discuss the Railbelt's vision and planning for a more robust transmission grid that includes dependable energy storage. Their messaging also included the need to diversify the Railbelt's generation portfolio so that it is less dependent on natural gas, identifying a reliable future supply of natural gas s since the fuel will continue to be a key resource in Alaska, and identifying clean energy alternatives that do not adversely impact rates or reliability. The PowerPoint presentation they reviewed is attached. ➢ Power Outage (Seward Marine Industrial Center) — Seward Electric crews worked with JAG over three days beginning January 14 to identify the cause of a power outage at SMIC and make necessary repairs. The outage was caused by failing underground cable on the SMIC side of the meter. The repair work was completed in difficult weather conditions. JAG Executive Vice President Tim Jagielski emailed the Electric Department to express his appreciation for the crews' hard work and dedication to getting power restored as quickly as possible. 34 RailbelffElectric Energy System and Energy Transition Chugach Elec6icAssociation-,"urMiller Golden Valley E/ecffc Association -John Burgs Homer Elecfric Association - & and Janorschke Mafanuska Elecfric Association - Tony /=* QVEAHomer Electric CHUGACH-1. 7 Association, Inc. folJrn 91 tJMdcAxcu�inn eY MATANUSKA ELECTRIC ASSOCIATION 35 4 MEMBER -OWNED ELECTRIC COOPERATIVES • 1 MUNICIPAL UTILTY 30 Provides power to more than 75% of the state's population Railbelt electric system stretches 700 miles 10 Average Cost of Power on Railbelt is low compared to the rest of the state, and is comparable to areas in the Lower-48 i Uses 41 % of Cook Inlet Natural Gas 36 Railbelt Generation Sources OVA rer. Natural gas supply )o Diversification and energy securi 10, Transmission/energy storage infrastructure 2► Rate stability n 38 bcf Cook Inlet Basin Gas Production --Historic Production —Demand —Forecast 250 200 150 100 50 O N �t w w O N ch LD M O fV It 19 M O N Tr %1D w O O O O O O e q r-I r_1 c 1 r 1 N N N N f V M M M M M �r O O O O O O O O O O O O O O O O O Q O O O N N N N N N N N N N N N N N N N N N N N N 39 After 60 years of affordable and reliable supply, current Cook Inlet gas reserves will not meet demand by the end of the decade ini1hplt Gds Fnrarr 100 90 00 a°Ji 70 60 :n 50 c 40 30 C] 20 10 Cook Inlet Gas Proved Developed & Proved Undeveloped (Truncated Mean Case) p ,va �h rib ,1 ,yO ,yq 9 p 4 2ti ,y`b ,yh 45,140 ,1 '1 e ,yef le", n� r Proved Developed (Mean Case) Incremental Proved Undeveloped (Mean Case) -Demand Source: 2022 Cook Inlet Gas Forecast; State of Alaska, Department of Natural Resources, January 2023. 40 Jntiens to till the cicin Diversify Railbelt energy portfolio through: Pursuing clean energy; when economic Clean energy includes energy from renewable generation (wind, solar, hydro, etc.) and energy from zero -emissions sources including nuclear and carbon capture Exploring natural gas solutions X Alaska North Slope gas lines X, LNG import opportunities The transition will require: Energy storage 10 Transmission upgrades 41 ■►�0III91=�1��I[=1lII■-II[=��l1`L�1.1lIF,'�' Focus is on achievable, sustainable energy policy: Io Diversification of generation sources Sensible approach with no adverse impact on rates or reliability > Fosters and encourages collaboration with stakeholders )0 Provides energy security !m Maximizes carbon reductions 42 •1.""Imm1.1III Ole 180 160 140 — 120 L 100 U r ■ u60 rrWa L O Y 40 20 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 43 2010 Hawaii Wind PPA EVA Creek Wind -Alaska Northeast U.S. Region Solar Fire island Wind -Alaska 2019 Hawaii Solar PPA South U.S. Region Solar ► re Il► Southern transmission Northern transmission Roadbelt transmission Energy storage Delta Junction tl f� :Glennallen 1 aide? -sed New Transmission ng Transmission Upgrades y Energy Storage System H 2oa Was 0 d2 in the vicien will z Increased generation availability and unconstrained dispatch Increased clean energy generation, a: including renewables 10 Increased transfer capabilities Economies of scale 10 Supports military's mission in Alaska Enables economic development �=30 Rate stability - benefits PCE communities 45 Economic/affordable transition to lower carbon Transmission infrastructure/ energy storage 10, Leverage state and federal funding Reasonably priced long-term in -state supply of natural gas 46 -x LIPtio-ctic Ov/ Safe Ot/ Reliable Ow/ Affordable Energy for.4/askans 47 Mission Statement: CMR Finance Department Valuable Objectives: Sully Jusino Deputy Finance Director To provide the highest level of services responsive to our We built trust with all stakeholders through responsible community's expectations and to enhance the quality of stewardship of public resources with integrity, life and economic vitality. accountability, and respect. Utility Department: • FY23 Water rates have been incorporated for the new billing cycle. New rates for Wastewater will be incorporated after the public heading in March. • Carmen Jackson Firm and Finance department continue working with the initial internal and forensic audit work plan and procedure manual for the Utility Department. Carmen Jackson Firm and Finance Staff: - Carmen Jackson LLC continued assisting the Finance Department in account reconciliation, journal entry review, and analysis workflows. - Staff and Camen Jackson Team working with City Clerk regarding Internal Controls and policies following the City code. - Finance and Public Work staff working with the final requirements for reimbursement for the Landslide Emergency. Annual Audit: Carmen Jackson's Team and Finance are starting the preparation for Audit FY22 in conjunction with Altman Rodgers and Co firm. 48 k ]' :pt Fire & Building Department Fire Chief Clinton Crites We NEED volunteers, if you or someone you know is interested in serving your community, please give us a call at 224-3445 or stop by at one of our trainings on Wednesday evenings at 7:OOpm. 2023 TYD Statistical Information: Fire & Life Safety Inspections: 24 with 20 violations noted. Emergency Calls: 021 New Building Permits Issued 2023: 4 with a total construction valuation of $69,500. • Hazardous Materials Awareness and Operations 40hr course beginning March 7', call to inquire. • Check with the Chamber of Commerce for Fire Extinguisher checks and purchases for your home, business and or short-term lodging. • Feb 5-11t" was National Burn Awareness Week, see ameriburn.org for more information 49 A scald injury can happen at any age. Children, older adults and people with disabilities are especially at risk. Hot liquids from bath water, hot coffee and even microwaved soupy can cause devastating injuries. Scald buries are the second leading cause of all burn injuries. Scalck Safety • Teach children that hot things can burn. Install anti -sold devices on tub faucets and shower heads. Always supervise a child in or near a bathtub_ Test the water at the faucet. It should be less than 1 O0" Fahrenheit (38' Celsius). • Before placing a child in the bath or getting in the lath yourself, test the water. Test the water by moving your hand, wrist and forearm through the water. The water should feel warrn, not hot, to the touch_ Place hot liquids and food in the center of a table or toward the back of a counter. • Have a "kid, free zone" of at least 3 feet around the stave and areas where hot food or drink is prepared or carried. Open microwaved food slowly, away from the face. Never hold a child while you are cooking, drinking a hot liquid, or carrying hat foods or liquids. Never heat a baby battle in a microwave oven. Heat baby bottles in warm water from the faucet_ • Allow microwaved food to cool before eating. Choose prepackaged soups whose containers have a wide base or, to avoid the possibility of a spill, pour the soup into a traditional bowl after heating. [oil I NATIONAL FIDE PROTECTION ASSOCIATION( I! FP1A lhswam, wimmaimandlmowkmganemum 50 anima decimal and nelllited hamrde Treat a burn right away. Cool the burn with cx)ol water for 3-5 minutes. Cover with a clean, dray cloth- Get medical help if needed. FACT Prepackaged microwavable swaps are a frequent cause of scald burn injuries (especially noodle soaps) because they can easily tip aver, pouring hot liquid (and noodles) on the F _•iiii Ggnxrlralgh ram'. Rfk�r�:s f: ("rxxnkxs �, rat al ,, cWofSoW:des fbrn ll rftAof JoLmal & l3um Cane and Research. July & s OM 21(Ay 41"? Harbor Harbormaster Norm Regis ➢ The 50-ton and 330-ton Travelift has started to pick up; some fishing vessels are preparing the early fish openers. ➢ We are training four new harborworkers on the maintaining the Travelifts and harbor infrastructure. ➢ We are working on the SMIC yard drainage to keep water flowing into the ditches. ➢ We have opened G, K and L-float; contractor is working on the punch list. ➢ We have an issue with the fire extinguisher and life ring boxes, we are working with the engineers/contractor to alleviate problem with the vender. (Not Resolved Yet) ➢ We are still working with the public with COVID protocol in mind while continuing to do boat lifts and public contact in the Seward Harbor office. ➢ This spring we will continue the cleanup at the old Raibow dump area, just a few more items to deal with and we can lease the property out again. ➢ The harbor office will be closed on Sundays until spring 2023. ➢ The North East harbor launch ramp is completed, the contractor finished on 12-1-2022, waiting on as -built drawings. ➢ I called Washington and checked on the City of Seward Harbors PIDP grant it is in the final weeks of technical review, an announcement of the grant awardees will be in a couple of weeks. (We have a debrief on February 9) ➢ We are waiting on funding for the 5-ton crane on I -Dock, Corp Permit has been approved ➢ We have sent the Coast Guard the resolution and the Purchase and sale agreement for them to look over. ➢ Winter is here please remember do not shovel the snow off your vessels onto the dock; please place the snow into the water. ➢ Please watch your step while transitioning onto the floats the transition plates can get icy very quickly. ➢ Dive Alaska was at the harbor diving and cleaning the bottom of debris by I -dock and T- dock. 62 Seward Community Library & Museum Bailey Sayler MUSEUM TEMPORARY DISPLAY Seward Coal Loading Facility The Temporary Display space presents a history of the now abandoned coal loading terminal. Learn the history of the terminal, along with its machinery pieces, and issues the terminal faced in its 32 years of operation. Also featured are historic photos of the terminal and models of historic Alaska Central Railway train cars and modern Alaska Railroad passenger cars. MUSEUM WINDOW DISPLAY Polar Bear Jum For the month of January, the museum windows will feature objects from the Seward Polar Bear Jump such as pins, patches, programs, and newspaper articles. First held in Seward in 1986, this annual event raises money for the American Cancer Society and will be held on January 14, 2023 at 12:30pm at the small boat harbor. Thank you Museum Volunteers We would like to thank our amazing museum volunteers, from the Resurrection Bay Historical Society and the Seward Community Library Association, for all the hours they put into caring for the museum and its collection. In 2022, both organizations combined contributed over 660 hours to volunteering, with RBHS having 624 of those hours. We would also like to thank local Boy Scout Troop 568 for volunteering 56 additional hours with RBHS to complete other large museum tasks. Play n Chat Every Tuesday and Thursday, Bloom brings arts n crafts, story time, and play time for our younger crowd. New Microfiche Machine The Library & Museum is excited to announce that our new microfiche is up and ready for use, thanks to the Rasmuson Foundation. Please call and schedule a time to use the microfiche. Upcoming Events: Canned Food Drive for the Month of February at the library! Saturday, February 11 @ 2-4 pm —the story Fry Bread will be read. We will demonstrate how to make fry bread and samples of fry bread will be provided. 6% Saturday, February 18th @ 10 a.m. — Gentle Free Yoga by Kara Troglin for Heart Health Month. Saturday, February 18th @ 5-7:30 p.m. -Date Paint Night at the library. Parks n Rec are partnering with the Library to offer childcare. Children can be dropped off at Avtec Gym to enjoy of evening of fun at the Gym and picked up after painting. Tuesday, February 28th @ 9:30-11:15 a.m. Dentist are doing a presentation for Children's Dental Health Month. Thank you to all who participated in our "Stuffed Animal Sleep Over." We had 26 animals show up and participate in our evening of fun and each child received a book that showed the adventures their friends had at the library. Library hours Tuesday —Friday 9 a.m. — 6 p.m. Saturdays 9 a.m. — 5 p.m. Museum Winter Hours Tuesday — Saturday 11 a.m. — 3 p.m. We are currently taking passport appointments for new passports. The library does not do renewals. Please call 907-224-4082 to make an appointment. 53 SEWARD FAMILY DENTISTRY WILL BE COMING TO SEWARD COMMUNITY LIBRARY & MUSEUM! WHEN: FEBRUARY 28TH TIME: 10:00AM BRING YOUR CHILD TO LEARN ABOUT DENTAL HEALTH! SEWARD COMMUNITY LIBRARY & MUSEUM 907-224-4082 54 - 1"I I , r '�I m I,#, , � I NFI � FREE GENTLE YOGA @ THE LIBRARY WITH KARA TROGLIN FEBRUARY 18 @ LOAM MATS WILL BE PROVIDED BUT WE ENCOURAGE YOU TO BRING YOUR OWN. THE CLASS WILL BE GENTLE, SLOW, AND ACCESSIBLE FOR ALL LEVELS, INCLUDING IF SOMEONE WOULD LIKE TO PRACTICE IN A CHAIR INSTEAD OF ON THE FLOOR. IT IS ALSO CANNED FOOD MONTH! IF YOU ARE ABLE TO DO SO PLEASE BRING A CANNED FOOD ITEM TO DONATE! LIBMUS@CITYOFSEWARD. NET 9 0 7 - 2 2 4 - 4 3 5 5 6.1. ol I at / W�- 40 SATURDAY, FEBRUARY 18, 2023 SEWARD COMMUNITY LIBRARY WILL HOST A PAINTING CLASS FOR ADULTS FROM: 5:00-7:30 PM REGISTRATION FOR PAINTING IS REQUIRED. CALL 907-224-4355 SUPERVISED ACTIVITIES FOR CHILDREN AGES 5 AND UP, WILL BET PROVIDED AT THE AVTEC GYM BY PARK N REC DURING THE SAME TIME! 611- To come and enjoy a book then to bake our own bread BR T�h V STOfiy F�III,, 202S 2pm-4pm kf, Parks & Recreation • Currently recruiting for the following full-time year-round and seasonal FT & PT positions: o Park Maintenance Technician o Executive Assistant o Seasonal Winter Maintenance o Seasonal Campground Attendants, Park Maintenance Workers, Gardener & Parking Attendant recruitment to begin by end of month. • Rotary Park Fish and Wildlife Viewing Area project letter of support. • Staining and assembly of 70 picnic tables in progress. • Currently in process of securing first campground host for 2023 season and another for 2024 season. • Research and planning for softball and Little League ballfield repairs and improvements. • Shower house maintenance including hot water heater work, interior painting and fixture repairs. • Coordination with City Clerk providing two new mobile vendor locations for 2023 season. • Year-round operation of Kawabe Park feasibility established. Will remain open this fall for winter season. • Online campground reservation system fine-tuning including working with Finance to establish better revenue closeout and reporting procedures. • Coordination with Harbor for assistance with pre -season parking lot sweeping. • 2023 Campground season prep including policy revision, training tools and procedures and campground host recruitment. • Ongoing department -wide cleaning, organizing and inventory at all P&R sites. • Online reservations open for pavilion and ballfields with opening day of April 14tn • Online reservations for campgrounds will open April 3rd at 10:00am AST. Sports & Recreation at AVTEC Gym: Hours of Operation: Tuesday - Saturday 10am-8pm Sauna hours: Thursday - Saturday Men: 5-6pm Women: 6-7pm Racquetball court reservations: Seward.recdesk.com -Tuesday - Friday: 2-7pm (League nights are Tues & Wed nights so courts might be reserved from 5-8pm) -Saturday: 10-7pm Pricing: Memberships and punch cards can be purchased online at htt[)s://seward.recdesk.com/ Day Pass (Adult, 18+): $5 Youth Pass (6-17): $3 Senior Pass (60+): $3 Yearly Adult membership: $180 Yearly Youth membership: $80 Senior membership: $80 Family membership (2 adults, and any youth 6-17): $350 12 punch passes: $40 6 punch passes: $20 Daily Activities: Tuesday: Open Gym: 10-6pm AVTEC organized activity: 6-8pm (public welcome to join) Wednesday: Open Gym: 11-3pm Open Pickle Ball (half court): 3-6pm Open Soccer (14yrs+): 6-8pm Thursday: Youth Gym: 12-1pm Open Basketball: 6-8pm Chess Meet up: 6-8pm (multi -purpose room) Friday: Senior Walking hour: 12-1pm Youth Gym: 3-5pm Open Volleyball: 6-8pm Saturday: Rock Climbing wall Saturdays in February: 2-4pm Other Events: 58 February 11: Puzzle Battle 5-7pm. Sign up at Seward.recdesk.com, $15 per team (2-4 people on a team), only 1 person needs to register. February 18: Kids Night out, Parents night Off, 5-7:30pm at AVTEC gym. Supervised activities for kids ages 6-16. FREE Library is hosting an Adult Paint night for parents if they want. Need to call Library to reserve, space is limited. February 25: Roller Skating: 6-8pm, $3 for entry Archery at the Cruise ship terminals on Tuesdays till end of March. -Beginner Class 4 week session for ages 8-16, FREE: March 7 - March 28, 5:30-6:15pm -Open Range for Youth, parents must supervise, FREE: 6:15-7:30pm -Adult Range, adults need to bring their own equipment: 7:30-9:00pm. Punch cards can be purchased at Seward. recdesk. com Racquetball Competitive and Recreational League are on: Tuesday and Wednesday nights till the end of March. Standings will be updated next CMR. -Competitive League we have 8 players, for a full league. -Recreational League we have 5 players. Volunteers needed! We are looking for Urbach youth basketball coaches. You will need to be available Saturday mornings starting March 4 - April 22, and 1 hour during the week. If you are interested in coaching, please email sportsandrec@citvofseward.net or call 907-224-4054. We want to see this program thrive again, and we can't do that without the help volunteers. Background check needs to be completed to volunteer, SPR will provide. Seward Kite Festival Logo Contest: -Seward's 3rd Annual Kite Festival will take place Saturday April 22. This festival is a gathering for kite enthusiasts. Design a logo for the 2023 Seward Kite Festival and win a $100 prize. Take pride in your logo representing this year's festival and being promoted on merchandise sold at the festival. Registration is FREE at Seward.recdesk.com. Please have your artwork submitted before March 1 to be entered in contest. Rules at Seward. recdesk. com AVTEC Usage numbers: Jan 13 - Feb 1: 282 users Other Activity numbers: Jan 14, Skate night: 130 participants Jan 21, Puzzle night: 8 Teams, 27 participants. Team Cnidaria took top place for the 2nd time! Congrats: Amy, Deanna, Jane and Elizabeth. Puzzle Battle! Congrats Team Cnidaria! Skate Night! 6T] Public Works Department Doug Schoessler - Director ➢ Public Works Director • Utility extensions: Collaborating with other City departments and developers on new subdivision plans and funding for water, sewer, and roadway infrastructure. • US Army Corp of Engineers -Tunnel: -The next update should be a presentation at the February 27 Council meeting. • Federal FEMA and State Emergency Management work on next steps and reimbursement costs to be paid to the City: - Federal FEMA is complete for reimbursing 75% on the Bear Mountain Landslide costs. We are still working with the State of Alaska Emergency Management for the remaining funds. • Public Works Facility Relocation: -Public Works, Administration, and other involved departments are meeting with engineers to determine road accesses, platting information, and site layout. A site survey was completed the 2na week of January and will be added to the layout and design. ➢ Streets Department -The roads are staying in pretty good shape this winter. Crews have been diligently changing maintenance methods to match weather conditions. All in all, they are doing a great job keeping the City's roads clear and safe. Mountainside debris continues to fall all along Lowell Point Road. 60 ➢ Buildings -Still looking to fill a custodian position, mainly for the library. Meeting with a contractor in mid - February for boilers and heating at some City buildings. ➢ City Shop Mechanics and operators are keeping the sanders and graders fixed and running through the heavy use time of sanding and scraping icy conditions brought on by recent rains and warm temperatures. ➢ Water & Wastewater Department -Some construction is already starting this season. The locate requests are coming in steadily. -Water systems and alarms are all showing normal and being monitored daily to ensure water quality is above standards. -Monthly testing of water and wastewater systems is being done and submitted to DEC as required by the permits. - A repeating reminder to all residents not to flush wipes, feminine products, etc. down the toilet. Also, never put grease down the drain. Sewer clogs due to these items cost the sewer utility thousands of $$ each year to fix the problems that could have been easily prevented. These losses of capital are to be reflected in monthly sewer service rates. ➢ Wastewater and Lagoon: • -The City was successful through Senator Murkowski and others in recently getting approved for $2,000,000 of funding for sludge removal on the City's sewer lagoons. This project is tentatively scheduled for 2025 depending on sludge buildup in the lagoons. There is also a 20% match on those funds that will have to be paid. • -We are currently working on other grant or loan funding to replace the liner at that same time. The liner replacement will also require the use of a helicopter to lift out the 40 biodomes and reinstall them on the new liner. • -This will also be the time to make any upgrades to the air systems and blower components since all "in -lagoon" systems will have to be removed to install a new liner. Because the lagoon will have to be drained (one side at a time). We can capitalize on construction costs and efforts by installing new system upgrades at the same time. • The new DEC permits also added a disinfection requirement to be completed in the next 5 years. • -We are working on the funding and coordination of the many components and the planning efforts in the next few years will help make a successful project. 61 From: Stephen Sowell To: Stephen Sowell Subject: FW: Harbor Cleanup- Waste Receptacle Date: Tuesday, February 7, 2023 7:48:57 AM Attachments: IMG 4719.HEIC IMG 7380.HEIC IMG 8427.HEIC External Email: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Norm, Tony, and Everyone Else, Thank you so much for all the help with the harbor cleanup this last weekend. It was a very clean harbor sans a few boat batteries that made it to the bottom. Was an amazing time and event and wouldn't have been possible without your support. We are hoping to do this as a circuit with Seward, Whittier, then Homer where we clean a different harbor every year. We had just over 75 people present this year for the first one, so if you guys aren't sick of us by then, we'd hope in 2026 we will have grown the number and be looking closer to 200 folks cleaning up the harbor for a day. Attached are a some photos from the day's event. Thank you again and look forward to hopefully working with you in the future. Best, -Alex 62 T 's :. Mon �• ' ^ � - � ,ems' WAS L 1 f!_•' '►� �.%':',� :* oerr .ray 4. �••!'^,k. •; ^-Al V,A i 7 '1rt- City Clerk Report February 13, 2023 In addition to launching the 2023 high school student exchange program with Obihiro, Japan, Deputy City Clerk Kris Peck is working with the Seward High School culinary instructor to organize a food challenge. 16 students from the Seward class will be broken up into four groups; there are four students in Obihiro. Japanese and American recipes have been selected and the students will be challenged to create various dishes, video recording their experiences; Seward student group leaders will engage with the Obihiro students in a live Zoom chat and share their experiences. Tentatively scheduled for February 17, 2023. 2. The KPB special election is February 14th for the Borough Mayor. Election Day voting is in council chambers from 7 am — 8 pm. If a run-off election is necessary, it will be on March 7ch 3. Recodification Project Update Completed: Title 1 Completed August 2022 Title 2 Portions updated throughout 2022 Title 3 Completed March 2022 Title 4 Competed January 2023 Upcoming: Title 2 ^Introduction January 22; enactment February 13 Title 5 Introduction pending feedback from admin re: potential for including improvement district language updates — Jan 12 Title 6 Draft to finance; copy to attorney, city mgr — Jan 17 Title 7 Draft to harbor, parks & rec, comm dev, SPD, public works; copy to attorney, city mgr — Jan 30 Title 10 Draft to police chief, attorney, city mgr — Jan 30 4. Working with the KPB clerk to prepare for the May 2, 2023 special election in Seward. 5. Updated the Mobile & Roving Vendor Program to add two new locations (on tonight's agenda for approval). The interest in this program continues to grow and provides a low barrier to entry for small business start ups. Respectfully submitted, Brenda J. Ballou, MMC City Clerk CHANDLER, FALCONER, MUNSON & CACCIOLA, LLP ATTORNEYS AT LAW SUITE 302 911 WEST EIGHTH AVENUE ANCHORAGE, ALA SKA 99501 TELEPHONE: (907) 272-8401 FACSIMILE: (907) 274-3698 bcf@bcfaklaw.com February 6, 2023 Seward City Council City of Seward PO Box 167 Seward, AK 99664 Re: Status Report Dear City Council: This is our status report covering activity on legal matters worked on during January. General Matters: We advised on several requests for public records. We advised on an RFP for snow removal from fire hydrants. We worked on recodification of Title 9 to incorporate updates to the Fire Code. We reviewed a revised ordinance recodifying Title 4, amendments to the ordinance recodifying Title 2 and draft ordinances recodifying Titles 3, 5, 7 and 10. Electric Utility: We continued to work on responding to an extensive request for documents made by HEA as part of their "due diligence" process. We reviewed the initial draft of the purchase agreement. Personnel: We advised on multiple personnel matters including an employee grievance and arbitration and a PERS contribution issue. Planning: We advised on an easement issue related to the Chugachmiut development. We began work on review of an updated floodplain ordinance. We advised on the process for a local improvement district and a developer reimbursement agreement. We advised on a potential enforcement action regarding short-term rentals. Port: 67 Status Report to Seward City Council February 6, 2023 Page 2 of 2 We advised on lease assignments. We prepared an updated maintenance and operations agreement with JAG. We drafted a demand letter to the owner of an abandoned vessel. Over the next two months the time required to negotiate the agreement with HEA will likely impact our ability to turn around more routine requests for assistance. We will use our best efforts to continue to respond promptly as needed. You can expect to receive our next status report by March 8tn Very truly yours, CHANDLER, FALCONER, MUNSON & CACCIOLA, LLP Brooks Chandler 68 City of Seward, Alaska City Council Special Meeting Minutes January 23, 2023 Volume 42, Page CALL TO ORDER The January 23, 2023 special meeting of the Seward City Council was called to order at 5:30 p.m. by Mayor McClure. OPENING CEREMONY Police Chief Alan Nickell led the Pledge of Allegiance to the flag. ROLL CALL There were present: Sue McClure presiding and John Osenga Mike Calhoon Kevin Finch comprising a quorum of the Council; and Janette Bower, City Manager Kris Peck, Acting City Clerk Sam Severin, City Attorney Excused — None Absent — None Liz DeMoss Randy Wells Robert Barnwell CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Lynda Paquette, outside city limits, said she hoped council would renew PACAB for another year. As vice chair of PACAB, she wanted more responsibility and heavier topics to work on. Lately, she felt disappointed by the lack of content in the PACAB meetings. She encouraged city council to rely more heavily on PACAB. Bruce Jaffa, outside city limits, said he was thankful for the opportunity to participate with PACAB despite living outside of city limits. Historically, PACAB took the opportunity to broaden the commercial aspect of Seward. No other board or commission in the city had their eye on alternative energies, such as the heat loop project. Jaffa noted the chair of PACAB was about to resign and he wanted council input on the direction of PACAB's future. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (DeMoss/Osenga) Motion Passed Approval of Agenda and Consent Agenda Unanimous 69 City of Seward, Alaska City Council Special Meeting Minutes January 23, 2023 Volume 42, Page The clerk read the following approved consent agenda items: There were no consent agenda items. NEW BUSINESS Other New Business Committee of the Whole: Roles and Responsibilities of Boards and Commissions. Motion (DeMoss/Osenga) Go into Committee of the Whole to discuss The roles and responsibilities of boards and commissions. Motion Passed Unanimous Council moved into Committee of the Whole at 5:38 p.m. Council came out of Committee of the Whole at 6:42 p.m. CITIZEN COMMENTS Darryl Schaefermeyer, inside the city, said the information on PACAB's website did not correlate with how city code defined PACAB. Schaefermeyer noted this was a wonderful time to live in this community, but there were some potentially tough times ahead. The sport fishing industry was in danger and the Silver Salmon run was in decline. A serious investment would need to be made in order to save the fishery. Schaefermeyer predicted a public safety crisis due to an aging police force and lack of competitive recruitment for new police officers. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSES TO CITIZEN COMMENTS Sowell thanked council and the boards and commissions for the valuable feedback. Barnwell noted the boards and commissions were very passionate about their work It was an exciting time to be in Seward. Finch appreciated the boards and commissions and wanted to find more work for PACAB. Wells thanked everyone for their time. DeMoss thanked everyone. ADJOURNMENT 70 City of Seward, Alaska City Council Special Meeting Minutes January 23, 2023 Volume 42, Page The meeting was adjourned at 6:47 p.m. Kris Peck Acting City Clerk (City Seal) Sue McClure Mayor VA City of Seward, Alaska City Council Meeting Minutes January 23, 2023 Volume 42, Page CALL TO ORDER The January 23, 2023 regular meeting of the Seward City Council was called to order at 7:00 p.m. by Mayor Sue McClure. OPENING CEREMONY Police Chief Alan Nickell led the Pledge of Allegiance to the flag. ROLL CALL There were present: Sue McClure, presiding, and John Osenga Mike Calhoon Kevin Finch comprising a quorum of the Council; and Janette Bower, City Manager Kris Peck, Acting City Clerk Sam Severin, City Attorney Excused — None Absent — None Liz DeMoss Randy Wells Robert Barnwell McClure stated she wished to extend the 36-minute time limit for citizen comments in order to allow all members of the public to speak. There was no objection from council. CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Rissie Casagranda, inside the city, asked for a reconsideration of Resolution 2023-001 so the decision could be made with a fair process. As a representative of the buyers, Casagranda was confident there would be no grounds for denying ZPA, LLC from purchasing the Breeze Inn. The reason that ZPA owners Elliot Jackson and Toni Strauss were absent during the January 9, 2023 city council meeting was because lease assignments had always been a matter of procedure. ZPA was compliant and in good standing with the City of Seward, the State of Alaska, and the Kenai Peninsula Borough. Michael Zinis, outside the city, said he was currently the operations manager of the new adventure park. He felt the owner went above and beyond for safety requirements and was very fair overall. Zinis also read a letter from a J-1 student from Bulgaria in support of working for ZPA. r`a City of Seward, Alaska City Council Meeting Minutes January 23, 2023 Volume 42, Page Nate Smith, outside the city, read a letter from the AlaskaUSA Federal Credit Union which supported the sale of the Breeze Inn. Smith also read a letter from the Small Business Development Center, also in support of the reconsideration of Resolution 2023-001. Melody Jordan, outside the city, read letters from Exit Glacier Lodge, Phillips Cruises and Tours, and McLane Consulting in support of the Breeze Inn sale to ZPA. J.T. Smith, inside the city, said he was a maintenance man for ZPA. Many of the buildings were very old, such as the Van Gilder Hotel, and needed a lot of work. The incident at the Marina Motel that resulted in a city water main leak was due to a series of miscommunications. Elliot Jackson and Toni Strauss were good people to work for and he recommended the lease transfer. Toni Strauss, inside the city, said she was the 50% owner of ZPA, LLC. There were three points to qualify for the lease transfer described in the packet and she felt ZPA met all the criteria. She intended to continue to operate the Breeze Inn year-round. Many of ZPA's staff were J-1 employees because there were not enough American workers to support summer tourism. Strauss did not think ZPA had a monopoly on local restaurants or hotels. Elliot Jackson, inside the city, said was the 50% owner of ZPA, LLC and marketed his businesses collectively as the Seward Hospitality Group. He thought the lease transfer would be a simple administrative process and had no idea it was going to be controversial. The purchases that ZPA had made in Seward helped others retire. ZPA contributed to local charities and he had planned to redo the Breeze Inn exterior and add murals. Patrick Marrs, outside the city, said the decision to deny a transfer of a lease seemed arbitrary and eroded confidence in the city's leadership. Marrs was concerned this decision would affect future business transactions because buyers would be reluctant to develop or build on city - owned land. Callie Bacon, inside the city, supported the reconsideration of Resolution 2023-001. Along with Nicole Lawrence, she represented Juris Mindenbergs in the sale of the Breeze Inn. The time had come to sell the Breeze Inn and ZPA was the only qualified buyer. The seller should have the right to sell the business and his legacy. Council decisions made on speculation, hearsay, or popularity set a concerning precedent. Bacon suggested the city council develop a framework of criteria when considering a lease transfer. The community deserved further discussion on this lease transfer. Susan Mindenbergs, outside the city, said she owned the Breeze Inn, along with her husband, Juris Mindenbergs. She urged the council to reconsider the lease transfer. The business owners' perspective was not heard at the January 9, 2023 council meeting. This denial would set a bad precedent for future business in Seward. Annie Johnson, inside the city, spoke on behalf of Seward Properties which represented the sellers. Johnson read a letter of support for the reconsideration and approval of Resolution 2023-001. Sue Ward, inside the city, said that Article 14 of the city land lease included three conditions, and she believed ZPA met all three conditions. The continued operation of the Breeze 73 City of Seward, Alaska City Council Meeting Minutes January 23, 2023 Volume 42, Page Inn was in the public's interest. There was no evidence that any of ZPA's businesses were in any type of financial troubles. The Breeze Inn consisted of a hotel, restaurant, and retail space, which were right in line with ZPA's expertise. Andrea Brady, inside the city, felt that ZPA did not have a monopoly on restaurants or hotels. As an employee of the JAG shipyard, she noted that JAG had spent $5 million dollars on lease holder improvements to city -owned land. She was concerned the denial of the Breeze Inn sale would make business owners think twice before making improvements on city -owned land. Tim Jagielski, outside the city, said he supported the reconsideration of the lease transfer. As the owner of JAG shipyard, he recalled a similar public outcry back in 2008. Fortunately, administration conducted their due diligence and gave JAG a chance to field questions. Businesses like JAG spent million dollars on improvements on leased property. The denial of the Breeze Inn lease transfer should be a wake-up call to every business currently operating on city property. Bruce Jaffa, outside the city, said the applicant for the lease transfer had addressed the core issue of staying open over the winter. Every citizen who spoke at the January 9, 2023 meeting was against the lease transfer to ZPA, and Jaffa wondered if council was so easily swayed by public opinion. Peter Micciche, outside the city, thanked the citizens of Seward for their support over the past eight years. As a former senator, Micciche said council was always a pleasure to work and he was proud of their collaborations. Micciche wanted to mention the extrication equipment on the Seward Highway was very important, because modern equipment could save the lives of our families in a vehicle accident. APPROVAL OF AGENDA AND CONSENT AGENDA Motion (DeMoss/Osenga) Approval of Agenda and Consent Agenda Motion Passed Yes: Osenga, Barnwell, DeMoss, Calhoon, Wells, McClure No: Finch McClure wanted to move the reconsideration of Resolution 2023-001 ahead of the two public hearing items out of consideration for the citizens in the audience. There was no objection from council. The clerk read the following approved consent agenda items: Approval of the January 9, 2023 City Council Joint Special Meeting with the Planning & Zoning Commission Minutes. Approval of the January 9, 2023 City Council Regular Meeting Minutes. Introduction of Ordinance 2023-002, Amending Seward City Code Title 2 — Administration. 74 City of Seward, Alaska City Council Meeting Minutes January 23, 2023 Volume 42, Page Resolution 2023-009, Accepting Extrication Equipment Funded By The State Of Alaska Legislative Grant Agreement Number 23-DC-022, Emergency Extrication Equipment Clearing House With A Total Value Of $15,200.95 With No Additional Funds Allocated. Resolution 2023-010, Authorizing The City Manager To Enter Into A Contract With OpenGov, Inc. For Licensing And Professional Services Related To The Expansion Of The Online Business License Portal In An Amount Not To Exceed $45,746.00, And Appropriating Funds. Resolution 2023-011, Authorizing The City Manager To Enter Into A Contract With Metco Alaska, LLC For Fire Hydrant Snow Removal And On -Call Sidewalk Snow Removal Services For A Three -Year Period, With Two Optional 1-Year Extensions, And Appropriating Funds Resolution 2023-012, Adopting An Alternative Allocation Method For The FY2023 Shared Fisheries Business Tax Program, And Certifying That This Allocation Method Fairly Represents The Distribution Of Significant Effects Of Fisheries Business Activity In The Cook Inlet Fisheries Management Area And Authorizing The City Manager To Apply For Funds From The Shared Fisheries Business Tax Program. SPECIAL ORDERS, PRESENTATIONS AND REPORTS Proclamations and Awards — None City Manager Report City Manager Janette Bower said her trip to Juneau last week was very successful and it was great to meet with our legislators. City Clerk Report was provided in the packet. Other Reports and Announcements — None Presentations — None UNFINISHED BUSINESS Items for Reconsideration Resolution 2023-001, Authorizing The City Manager To Enter Into A Consent Assignment To ZPA, LLC, To The Lease Agreement L04-096 With Juris Mindenbergs, For Lot 311, Block 1, Marina Subdivision, City Of Seward, Kenai Peninsula Borough Plat 2005-8, Seward Recording District, Third Judicial District, State Of Alaska, To Amend Articles 3, 6.1, 11.2 And 12.3, And Extending The Term Of The Lease For 17 Years, And To Add Two Five -Year Options To Extend. This resolution had a public hearing and was failed at the January 9, 2023 meeting. A request for reconsideration was filed by Council Member Calhoon on January 10, 2023. r1i City of Seward, Alaska City Council Meeting Minutes January 23, 2023 Volume 42, Page Motion to Reconsider (Calhoon/Barnwell) Reconsider Resolution 2023-001 Calhoon felt that city council didn't have all the information at the time of the January 9, 2023 meeting which is why he brought the item back for reconsideration. Motion Failed Yes: Wells, Osenga, Calhoon, McClure No: Barnwell, Finch, DeMoss Clerk's Note: A motion to reconsider must be passed by a 213 vote in the affirmative, which would require a minimum offive council members out ofseven. Council recessed at 8:00 p.m. City Attorney Sam Severin left the meeting. Council resumed at 8:08 p.m. PUBLIC HEARINGS Ordinances for Enactment Ordinance 2023-001, Amending Seward City Code Chapter 3.50.010 To Recognize Easter As A Paid City Holiday For Regular Full -Time And Regular Part -Time Employees. Motion (DeMoss/Wells) Enact Ordinance 2023-001 DeMoss said her intention was not to have a religious holiday, but rather an additional holiday coming from the standpoint of employee appreciation and retention. Notice ofthe public hearing beingposted and published as required by law was noted and the public hearing was opened. Bruce Jaffa, outside the city, said he understood keeping employee morale high. However, paid holidays didn't increase an employee's yearly income. Jaffa felt a wage increase would be more beneficial to employees than an additional holiday. Jaffa also noted that Easter was most definitely a religious holiday. No one else appeared and the public hearing was closed. Osenga said Easter was not a common paid holiday. He noted there were 12 paid city holidays and wondered if there could be an additional floating holiday that the employee could use at their discretion. Finch said city employees accumulated annual leave which could be used to take time off as needed. rc. City of Seward, Alaska City Council Meeting Minutes January 23, 2023 Volume 42, Page Bower added that each department had their own protocol for employees to use their leave. Barnwell noted that Easter was always on a Sunday and wondered if that holiday only applied to employees who were on shift on a Sunday. He agreed that raising pay would be a better avenue to increase employee retention. Wells said he would not support another paid religious holiday, but would discuss wage increases. Motion Failed Resolutions Requiring Public Hearing Yes: DeMoss No: Calhoon, Finch, Osenga, Wells, Barnwell, McClure Resolution 2022-096, Recommending Kenai Peninsula Borough Approval Of The Preliminary Right Of Way (ROW) Acquisition Plat For The Seward Airport Located In T 1N & 1S R 1W Sec 34, 35, 2 & 3, Seward Meridian SW, That Point Known As The Seward Airport, Physical Location, 2310 Airport Road; Acquiring And Replatting Various Legals Located In Sec 34, 35, 2 & 3, Seward Meridian SW. Bower wished to postpone this resolution again because Department of Transportation (DOT) officials were not present, and more research needed to be done on usage of the runway. Notice of the public hearing being posted and published as required by law was noted and the public hearing was opened. Bruce Jaffa, outside the city, said both the long and short runways were in use. The DOT wanted to consolidate the runway and push it back into the Resurrection River. The DOT had offered an embarrassingly low amount of money for the tidelands. If this property was in Seattle, it would be worth millions of dollars rather than two thousand dollars. Jaffa had spoken with property owners around the area and their property had sold for substantially more than the DOT offer to the city. Rissie Casagranda, inside the city, noted this had been a very long process. She agreed with the previous comment and urged the city not to give away the wetlands for such a low amount of money. No one else appeared and the public hearing was closed. Motion to Postpone (McClure/DeMoss) Motion to Postpone Passed Postpone Resolution 2022-096 until a representative from the Department of Transportation can attend. Unanimous rrIA City of Seward, Alaska City Council Meeting Minutes January 23, 2023 Volume 42, Page NEW BUSINESS Resolutions INFORMATIONAL ITEMS AND REPORTS Boards and Commissions Minutes Planning & Zoning Commission Minutes from the October 11, 2022 and November 8, 2022 Meetings. Historic Preservation Commission Minutes from the November 10, 2022 Regular Meeting. Other Items Planning & Zoning Commission Report for 0' Quarter 2022. Robertson, Monagle and Eastaugh Federal Lobbyist Report through December 2022. Happy Youth Programs & Educational Resources (HYPER) Financial Report through November 2022. CITIZEN COMMENTS Bruce Jaffa, outside city limits, appreciated how difficult these decisions were and he appreciated the council's services. He thanked former senator Peter Micciche for making an appearance at tonight's meeting. Jaffa felt the Eastern Kenai Peninsula had been somewhat neglected and needed strong representation. Jaffa noted the potential sale of the city electric utilities was a very important topic that would soon be at the forefront. He said the city council had voted in favor of the sale to Homer Electric and he wanted to learn more about how council made their decision. Most of the meetings regarding the sale took place during executive session and Jaffa was looking forward to that information being made public. Lastly, Jaffa wanted to invite everyone to the Moose Pass Winter Rendezvous on January 28, 2023. Andrea Brady, inside city limits, wanted to share some employee data about JAG shipyard. They shipyard averaged 135 employees since 2022; JAG peaked at 165 employees during last winter and spring. When they lost the US Coast Guard Healy it caused JAG a substantial layoff. JAG currently had 55 full-time Alaskan residents working in Seward. When JAG took over the shipyard in 2018, there were six Alaskan residents employed at the shipyard. A lack of affordable single- family housing, childcare, and access to womens' healthcare were the three main factors preventing JAG from obtaining a larger Alaskan workforce. Brady also provided updates on various JAG proj ects. Rissie Casagranda, inside city limits, felt extremely vulnerable tonight as a business owner and was nervous to invest in Seward. She provided a laydown written in a satirical manner to show 78 City of Seward, Alaska City Council Meeting Minutes January 23, 2023 Volume 42, Page city code written based on the way council voted tonight. Casagranda questioned why lease assignments even came before city council in the first place. Tim Jagielski, outside city limits, wanted to thank the electric department for their response to a problem JAG had experienced last week. The electric department responded in the middle of the night and helped JAG get back to operational status. As a business owner, Jagielski expressed disappointment that the reconsideration of Resolution 2023-001 had failed. He felt the city council should represent what the majority wanted, rather than the minority. Jagielski implied there was a conflict of interest among council that was not disclosed. Toni Strauss, inside city limits, recited a story about a character with a megaphone who would show up at a large party and drown out everyone's voices. Over time, the other party guests stopped enjoying themselves and stopped believing in themselves. Elliot Jackson, inside city limits, said he flew all the way up from South Dakota for this council meeting. Jackson felt strongly that he should be able to do business, buy business, and sell business as he saw fit. Jackson loved to help other business owners succeed in this town. Jackson knew he would never make a profit on the Van Gilder Hotel, but he wanted to give back to the community. Jackson had big dreams for Seward, such as building a hockey rink and more housing, and now he was reconsidering everything. Jackson said that city council made a big mistake tonight and they should be prepared for a fight. COUNCIL AND ADMINISTRATION COMMENTS & RESPONSE TO CITIZEN COMMENTS Barnwell acknowledged it was a tough evening. He felt the council decision to not reconsider Resolution 2023-001 did not reflect a lack of support for the business community. Rather, it was a rare chance for the community to speak up and share community values. Tonight, council made a strong statement that Seward had values that we wanted to strive for. Council deemed that ZPA was not competent to run the Breeze Inn. There was no support for ZPA owning the Breeze Inn for the best interest of the community. Finch thanked year-round businesses who stay open during the winter and retain their employees. He commended JAG for their excellent work at the shipyard. Wells had a laydown to share with everyone; it was based on a public records for documents and correspondence that related to all of Elliot Jackson's businesses. Wells emphasized his decision was not based on hearsay or backdoor deals. Wells had compiled enough evidence of violations with the city to show that Jackson would be in default of the lease agreement. Wells noted the city had given Jackson ample time to make the necessary repairs because the city was pro -business. From the group of ZPA supporters, the phrase "setting a precedence" came up and how this denial would be setting a bad precedence for future business; however, Wells felt that the city had shown they had worked with Jackson and all entities he represented. On the flipside, Jackson had set his own precedence of ongoing fire and safety failings. It was a constant struggle between the city and Jackson. Wells said he did not make an emotional vote, but rather a vote based on facts. Wells felt 79 City of Seward, Alaska City Council Meeting Minutes January 23, 2023 Volume 42, Page that the city should continue to set a precedent for leasing city property to only those entities and individuals who follow city code requirements. Calhoon clarified that the city council did not vote to sell the electric utility, but rather chose a company to negotiate with. He thanked the boards and commissions for all their hard work and hoped the Planning & Zoning Commission attendance issues could be resolved because it was holding up progress. DeMoss said the trip to Juneau was great and the city manager did the most amazing j ob and shined for all of Seward. She wanted to address the citizen comment which implied a conflict of interest existed among the council members. DeMoss explained that a conflict can only be declared if it's a financial conflict of over $5,000. DeMoss did her research on the Breeze Inn lease transfer though public record requests and made her decision based on facts. She emphasized that city council was pro -business and any statements to the contrary would be doing harm to Seward. Osenga thanked the board and commission members for showing up in the audience during the special meeting. Being on city council was a lot of hard work and they tried to make the best and most informed decision possible. McClure noted this was the most difficult meeting in her many years. She emphasized that no one on city council made their decision tonight without considerable thought involved. McClure commented that the special city council meeting went well, and she looked forward to more interaction with the boards and commissions. McClure said the trip to Juneau with the city manager was fabulous. Lastly, McClure reminded council the evaluations for the city clerk were due to the human resources office by 5:00 p.m. on February 10, 2023. ADJOURNMENT The meeting was adjourned at 9:12 p.m. Kris Peck Acting City Clerk (City Seal) Sue McClure Mayor 80 Ordinance 2023-003 An Ordinance of the Seward City Council, Amending Seward City Code Chapter 3.50 Holidays Documents: • Agenda Statement • Ordinance 2023-003 • Attachment o Excerpt from SPEA Master Agreement 81 City Council Agenda Statement Meeting Date: February 27, 2023 To: City Council From: Janette Bower, City Manager Agenda Item: Ordinance 2023-003: Amending Seward City Code Chapter 3.50 Holidays Background and justification: The purpose of this ordinance is to amend Chapter 3.50 Holidays to: • Enact language providing for holidays falling on an employee's regularly scheduled day off, allowing the employee, with department head approval, to move the holiday to a designated date within the same pay period. • Enact language that allows, at the discretion of the department head, an employee to move the holiday to another date in the same pay period. • Integrates Seward Public Employee Association (SPEA) language regarding holiday pay hours being equal to the number of hours worked in the employee's assigned shift and pays the shift differential the employee is assigned to work. • Clarify and codify current practices. Amended Ordinance Amendment code section Page # Strikes "in regular full time and regular part-time who are in pay status the day before and the day after the recognized holidays" because it is moved 3.50.010 1 to 3.50.025. Subsection B is struck because it has been moved to 3.50.030 and has been amended. 3.50.015 1 Grammatical amendments. 3.50.017 2 New section. Clarifying the use of the holidays. (Note the explanation above). 3.50.025 2 Expands on the existing language and addresses the language struck from 3.50.010 A. 3.50.030 2 Incorporates the SPEA language as described above. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ 82 M Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted ✓ Not applicable Affected Fund (✓): General SMIC Boat Harbor Parking Motor Pool Other Fund Balance Information Electric Wastewater Water F1 Healthcare Fund Balance/Net position — restricted $ Fund Balance/Net position — unrestricted/unassigned $ Available Unrestricted Cash Balance: 1 ✓ Yes Not applicable e✓ Adopt ordinance Other: Note: amounts are unaudited Finance Director Signature: Attornev Review Attorney Signature: Comments: Administration Recommendation 83 Sponsored by: Bower Introduction: February 13, 2023 Public Hearing: February 27, 2023 Enactment: February 27, 2023 CITY OF SEWARD, ALASKA ORDINANCE 2023-003 An Ordinance Of The City Council Of The City Of Seward, Alaska, Amending Seward City Code Chapter 3.50 - Holidays WHEREAS, this ordinance enacts language to provide for holidays falling on an employee's regular scheduled day off and allows employee to move the holiday to a designated date in the same pay period as the holiday; and WHEREAS, the language permits, at the department head's discretion, an employee to move a holiday to a different day within the same pay period; and WHEREAS, the language incorporates the Seward Public Employees Association (SPEA) language concerning holiday hours being equal to the number of hours worked in the employee's assigned shift and being paid at the shift differential the employee is assigned to work. NOW, THEREFORE, THE CITY OF SEWARD ORDAINS that: Section 1. Seward City Code Chapter 3.50 is amended to read as follows (new language is in bolded italics and underlined and deleted language is stricken): 3.50.010 Recognized city holidays. A- The following holidays shall be recognized as holidays with pay for all regular full-time and regular part-time employees: „la- f ill tine and Fe „laF ra� tine T..h a., stat s New Year's Day President's Day Seward's Da Memorial Day Independence Day Labor Da Alaska Day Veterans Day Thanksgiving Da Day after Thanksgiving Day Christmas Eve Day Christmas 3.50.015 Holiday falling on a Saturday or Sunday. A. When a recognized holiday falls on a Saturday, the lief toe -e f and t, ea4e,a ., ., heli,a.,., .,.4 o � � �;fne e,,, pens do Friday immediately preceding the holiday shall be considered the reco,-nized holiday. 84 CITY OF SEWARD, ALASKA ORDINANCE 2023-003 When a recognized holiday falls on a Sunday, the followin Monday fallowing shall be considered the reco,-nized holiday. 3.50.017 Holiday - use of A. Holiday fallin- on an employee's scheduled day off 1. Department heads shall allow an employee to take a different day off durin,- the same Period if an employee's scheduled day off falls on a recognized holiday. 2. The employee's timesheet will reflect the holiday on the alternate date, with all other compensable time recorded as per the employee's normal schedule. B. Holiday - alternate date requested by employee. 1. At the discretion of the department head, the department head may permit an employee to move the reco,-nized holiday to another day within the same pay period as the holiday. 2. The employee's timesheet will reflect the holiday on the alternate date, with all other compensable time recorded as per the employee's normal schedule. 3.50.020 Holiday during annual leave. A recognized city holiday which occurs during an employee's annual leave shall not be counted as a day of annual leave. 3.50.025 Holiday falling between two days of leave without pay. Employees shall forfeit their ri,-ht to payment for any holiday if the employee is on leave without Pay (to include iniury, military, or other non-compensable leave status) or has an unexcused absence on the employee's last re-ularly scheduled workday before the holiday or on the employee's next re-ularly-scheduled workday followinz the holiday. 3.50.030 Computation of holiday pay. A. Full-time employees. 1. Full-time employees shall receive their regular straight time rate of pay for all recognized holidays. 2. Holiday pay hours are equal to the number of hours worked in the employee's assi,-ned shift and shall be paid at the shift differential the employee is assigned to work. 3. Holiday pay hours are not counted as hours worked for the purposes of calculation of overtime pay. B. Part-time employees. 1. A regular part-time employee shall be paid based on their position's percentage of a full- time position. 2. Holiday pay hours are equal to the number of hours worked in the employee's assi,-ned shift and shall be paid at the shift differential the employee is assi,-ned to work. 3. Holiday pay hours are not counted as hours worked for the purposes of calculation of overtime pay. 85 CITY OF SEWARD, ALASKA ORDINANCE 2023-003 Section 2. This ordinance shall take effect ten (10) days upon enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, the 271h day of February, 2023. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou, MMC City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor M1 SPEA 2023 — 2025 Master Agreement Excerpt from SPEA Master Agreement ARTICLE 13 - HOLIDAYS 13.1. Recognized Holidays with Pay Except for Firefighters, the following days will be recognized as holidays with pay for all Employees in full and part-time positions. New Year's Day President's Day Seward's Day Memorial Day Independence Day Labor Day Alaska Day Veterans Day Thanksgiving Day Day after Thanksgiving Day Christmas Eve Day Christmas Day and such other days as may be proclaimed by the Mayor, Governor, or President. 13.2 Holiday Falling on a Regular Day Off When a recognized holiday falls on a Saturday, the preceding Friday shall be recognized as the holiday. When a recognized holiday falls on a Sunday, the Monday following shall be recognized as the holiday. When a full-time Employee's regularly scheduled time off falls on a recognized holiday, the City Administration shall allow, if scheduling permits, that Employee to take another day off during the pay period as the Employee's recognized holiday. In such a case, the Employee's timesheet will reflect the holiday on the alternate date, with all other compensable time recorded as per the Employee's normal Schedule. 50 87 SPEA 2023 — 2025 Master Agreement If the Employee is unable to take the time off, the Employee shall be compensated with regular pay equivalent to the number of hours in an Employee's regular shift in lieu of the holiday. The hours will be recorded on the Employee's timesheet on the date of the recognized holiday. This payment is in addition to and does not impact pay (wages) for hours actually worked during the pay period, whether hours actually worked include a recognized holiday (Section 13.1) or regularly scheduled workdays. This may result in holiday hours entered for a normal day off with no compensable time or holiday hours recorded in addition to actual hours worked on the date of the recognized holiday. 13.3 Computation of Holiday Pay Full -Time Employees: Full-time employees shall receive their regular straight time rate of pay for recognized holidays. a. The number of hours included in holiday pay is equal to the number of hours worked in an Employee's assigned shift and shall be paid at the shift differential of the shift the employee worked. b. In the event the employee is scheduled off, the employee shall be paid 8 hours of holiday pay. 2. Part -Time Employees: Part-time employees shall receive pay for recognized holidays based on their position's percentage of a full-time position. a. The number of hours included in holiday pay is equal to the number of hours worked in an Employee's assigned -shift and shall be paid at the shift differential of the shift the employee worked. b. In the event the employee is scheduled off, the employee shall be paid 8 hours of holiday pay. 3. Holiday during Paid Time Off: A recognized holiday occurring during an Employee's PTO leave shall not be counted as a day of PTO leave. 13.4 Forfeiture of Holiday Pay Employees shall forfeit their right to payment for any holiday if they are on leave without pay (to include injury, military, or other non-compensable leave status) or have an unexcused absence on the Employee's last regularly scheduled workday before such holiday or on the Employee's next regularly -scheduled workday following such holiday 51 88 Resolution 2023-014 A Resolution Of The City Council Of The City Of Seward, Alaska, Authorizing The City Manager To Execute R&M Engineering Task Order No. 2734.29, Completing Required Survey Work And Producing A Professionally Sealed As -Built Survey For The Lawing Substation, In The Amount Of $15,765 And Appropriating Funds Documents: • Agenda Statement • Resolution 2023-014 • Attachments: o Task Order 2734.29 o ADL Permit 89 City Council Agenda Statement Meeting Date: February 13, 2023 To: City Council Through: Janette Bower, City Manager From: Rob Montgomery, Electric Utility Director Subject: Resolution 2023-014: Authorizing the City Manager to Execute R&M Engineering Task Order No. 2734.29, Completing Required Survey Work and Producing a Professionally Sealed As -Built Drawing, in the Amount of $15,765 And Appropriating Funds Background and justification: Throughout 2022, the City of Seward worked through a process to evaluate the potential sale of the Electric Utility. Resolution 2022-087 was passed on May 2, 2022 and submitted the question to the qualified City of Seward voters on whether to sell the electric utility. Resolution 2022-114 subsequently was passed by the City Council and selected Homer Electric Association (HEA) as the preferred electric utility to purchase Seward Electric. The City of Seward is currently working with HEA to gather "due diligence" documentation in order to effectively evaluate the details of the potential transaction and one of the remaining items that must be completed is an as -built survey of the Lawing Substation. The substation itself is on land owned by the Alaska Department of Natural Resources and the Bureau of Land Management. It is unclear exactly what portions of those two parcels the electric infrastructure and fencing is on, and HEA will need to have a definitive layout of the facility. This requires a survey to be conducted and Professionally Sealed As -Built Drawing produced. R&M Engineering is capable and available to complete this work within two weeks of Notice to Proceed. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 1.3.4 Public Facilities and Services Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 15,765 This legislation (✓): Creates revenue in the amount of: $ x Creates expenditure in amount of: $ 15,765 Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): x Not budgeted Not applicable 0111 Affected Fund (✓): General SMIC Boat Harbor Parking Motor Pool Other Fund Balance Information x Electric Wastewater Water F1 Healthcare Note: amounts are unaudited Fund Balance/Net position — restricted $ 9,486,364 Fund Balance/Net position — unrestricted/unassigned $ 7,426,000 Available Unrestricted Cash Balance: $ 16,086,334 Finance Signature: Attornev Review RYes Attorney Signature: Not applicable Comments: x Approve Resolution Other: Administration Recommendation 011 Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2023-014 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Execute R&M Engineering Task Order No. 2734.29, Completing Required Survey Work and Producing a Professionally Sealed As - Built Drawing of the Lawing Substation, in the Amount of $15,765 and Appropriating Funds WHEREAS, Resolution 2022-067 directed the City Manager to develop a timeline and process for examining the advantages and disadvantages of selling the electric utility and bring recommendations back to City Council for adoption; and WHEREAS, Resolution 2022-087 approved submitting the question of selling the City of Seward Electric Utility to the qualified City of Seward voters at a Special Election in and for the City of Seward on May 2, 2023; and WHEREAS, Resolution 2022-114 selected Homer Electric Association as the preferred Electric Utility to purchase Seward Electric; and WHEREAS, the City of Seward has been working with Homer Electric Association to provide the necessary information, reports, and documents to complete the due diligence necessary in order to potentially sell the utility; and WHEREAS, one of the due diligence items remaining is an as -built survey of the Lawing Substation; and WHEREAS, the Lawing Substation infrastructure is located on land owned by the Alaska Department of Natural Resources and the Bureau of Land Management; and WHEREAS, R&M Engineering Task Order 2734.29 will generate a Professionally Sealed As -Built Drawing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is authorized to execute task order R&M Engineering Task Order No. 2734.29 for the creation a Professionally Sealed As -Built Drawing. Section 2. Funding in the amount of $15,765 is hereby appropriated from Electric Fund reserves account no. 15000-0000-3400 to Electric Enterprise Fund Contracted Services account no. 15000-3001-7009. Section 3. This resolution shall take effect immediately upon adoption. rya January 26, 2023 R&M No. 2734.29 Jason Bickling Community Development Director City of Seward, Alaska 410 Adams St., City Hall Building Seward, Alaska 99664 RE: MP 25 Sub -Station As -Build Dear Mr. Bickling, R&M Consultants, Inc. (R&M) has based this response on the information provided by you during recent phone conversations. We have reviewed the materials provided to us and have prepared the following cost estimate for your review and comment. We understand that you would like us to perform a boundary and as -built survey of the electrical sub- station located at MP 25 of the Seward Highway. The sub -station falls within Lot 3, U.S. Survey No. 8666. The as -built information will be referenced to the property boundary and a mapping exhibit will be provided for your use. The extents of the sub -station improvements will be the only items surveyed for this task. We do not anticipate needing to produce a legal description or easement documents, but will produce a final as -built product stamped by a licensed land surveyor. Deliverables: ■ Professionally sealed as -built drawing Schedule: We can begin the project within two weeks of receiving the Notice -to -Proceed (NTP). We expect to produce the final products within two to three weeks of NTP. Cost Estimate: Based on the scope and our understanding of the project, we propose a Time & Materials Fee amount $15,765. We have attached a detailed breakdown of our estimated costs for your review. Should you have any questions, please feel free to contact me at 646-9651. Sincerely, R&M CONSULTANTS, INC. Dave Hale, PLS Attachment: Cost Estimate Accepted by the City of Seward Jason Bickling, Community Development Director (Signature) (Date) Z:\project\2734.00 C Seward On call Engineering Services\19-00 Contract\Estimates\T029 MP 25 Sub Station As-Built\R&M CofS MP 25 Sub Station Proposal.doc ON nchorage, AK uard R&M CONSULTANTS, INC. 2122 F ontgStrreetD##150••Fairbanks, KK99701.907452.2707 Surveying and Mapping Services Cost Estimate FIRM: R&M Consultants, Inc. CLIENT: City of Seward Project Name: MP 25 Sub Station As -Built Project No. 2734.00 Date: January 31, 2023 SUB -TASK SUB -TASK DESCRIPTION Survey Manager LABOR HOURS PER JOB CLASSIFICATION Senior Land 2-Person 2-Person Land Land Party Chief Surveyor Surveyor Surveyor Survey Survey (OT) (PLS) (OT) Crew Crew (OT) Project / Contract Management 3 4 Field Tasks Mobe/Demobe & Travel To/From Seward 5 Boundary Survey 1 3 2 Utilities/Improvements Survey 1 8 2 Office Tasks Coordinate Utilities Markings Field data processing 2 Boundary Computations 8 As -Built Mapping 8 Mapping Exhibit 8 Review & Coordination 6 Professional Review 2 Final documents 2 TOTAL LABOR HOURS 3 40 0 2 16 4 0 LABOR RATES ($/HR) $242.28 $180.36 $121-14 $181-71 $261.12 $391.69 $181-71 LABOR COSTS ($) $726.84 $7,214.56 $0.00 $363-42 $4,177-98 $1,566.74 $0.00 EXPENSES DESCRIPTION QUANTITY UNIT PRICE MARKUP PRICE Misc. Field Supplies 1 $ 75.00 $ 75-00 $ R&M Vehicle 2 $ 95.00 $ 190.00 $ GPS Equip. 1 $ 450-00 $ 450-00 $ Drone $ 1,100.00 $ - $ Per Diem 4 $ 250.00 $ 1,000.00 $ Certificate to Plat $ 375-00 $ - $ Seward Platting Fees $ $ Kenai Pen. Bor. Platting Fees $ 400-00 $ $ Recording Fees $ 25.00 $ $ TOTAL EXPENSES SUB -CONTRACTORS TASK DESCRIPTION FIRM TOTAL PRICE $ 75-00 $ 19o.00 $ 450-00 $ - $ 1,000.00 $ - $ $ $ $ 1,715 TOTAL PRICE COMMENTS: This estimate is to perform an as -built survey and boundary survey of the existing sub -station at MP 25 of the Seward Highway. TOTAL LABOR $ 14,050 TOTAL EXPENSES $ 1,715 SUBCONTRACTORS $ - SUBCONTRACTORS MARK-UP $ - TOTAL SUB- $ - TOTAL T&M COST $ 15,765 1/26/2023 CofS 94 MP 25 Sub Station Estimate.xlsx 1 of 1 1J "' 9 m T D •O OU Y H 0.0-' C? GtT3J-+ a! 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W o z w J oQW < 0 Z 0 O V) LL) = n o = L Li W O z U Q �I N N Resolution 2023-015 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Purchase Six 115kV Voltage Transformers from Instrument Transformer Equipment Corporation (ITEC) in the Amount of $67,122, Plus a 10% Contingency for Installation in the Fort Raymond Substation, and Appropriating Funds Documents: • Agenda Statement • Resolution 2023-015 • Attachments: o ITEC Quote 1919 City Council Agenda Statement Meeting Date: February 13, 2023 To: City Council Through: Janette Bower, City Manager From: Rob Montgomery, General Manager - Electric Agenda Item: Resolution 2023-015: Authorizing the City Manager to Purchase Six 115kV Voltage Transformers from Instrument Transformer Equipment Corporation (ITEC) in the Amount of $67,122 plus a 10% contingency for Installation in the Fort Raymond Substation and Appropriating Funds Background and justification: In 2022, a $10 million revenue bond was approved to complete work over the next 2-4 years to replace aging transmission infrastructure in Seward and upgrade the system's voltage capacity from 69kV to 115kV. Part of this project includes substation upgrades across the system, including the replacement of the older 69kV voltage transformers located inside the Fort Raymond Substation. The work on the substation is expected to begin this summer or early fall, depending upon the supply chain. The Electric Department reached out to multiple vendors before receiving bids. ITEC was able to meet the requested specifications and also provided the lowest bid. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive 3.7.1.4 "Continue to upgrade and expand utilities to meet existing needs and Plan: encourage future development." Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ $67,122 plus a 10% contingency This legislation (✓): Creates revenue in the amount of: $ X Creates expenditure in amount of: $ $67,122 plus a 10% contingency Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): 15340-0000-8103 X Not budgeted Not applicable `K1 Fund Balance Information Affected Fund (✓): General SMIC Boat Harbor Parking Motor Pool Other x Electric Wastewater Water Healthcare Note: amounts are unaudited Fund Balance/Net position — restricted $ 9,486,364 Fund Balance/Net position — unrestricted/unassigned $ 7,426,000 Available Unrestricted Cash Balance: $ 16,086,334 Finance Signature:% j Attorney Review RYes Attorney Signature: Not applicable Comments: xeApprove Resolution Other: Administration Recommendation `KY: Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2023-015 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Purchase Six 115kV Voltage Transformers from Instrument Transformer Equipment Corporation (ITEC) in the Amount of $67,122, plus a 10% Contingency for Installation in the Fort Raymond Substation, And Appropriating Funds WHEREAS, Instrument Transformer Equipment Corporation (ITEC) was selected as the preferred vendor for the transformers following outreach to three vendors; and WHEREAS, ITEC provided the lowest bid while also meeting all operational specifications; and WHEREAS, the new transformers are necessary to upgrade the voltage capability of the Fort Raymond Substation from 69kV to 115kV as part of the overall infrastructure rebuild planned for the City over the next 2-4 years; and WHEREAS, the six new 115kV voltage transformers will replace the four existing 69kV transformers located in the Fort Raymond Substation; and WHEREAS, the new voltage transformers can continue to operate at 69kV until customer demand or system load necessitates a move to the higher voltage capacity. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is hereby authorized to purchase six 115kV transformers for the Fort Raymond Substation from Instrument Transformer Equipment Corporation to replace the existing 69kV transformers and increase the substation's voltage capacity. Section 2. Funding in the amount of $67,122 plus a 10% contingency is hereby appropriated from the System Infrastructure Project budget via the approved Revenue Bond Electric Fund 15000-0000-3710 transferred to 15340-0000-3700 Electric reserves account appropriated in tol5340-0000-8103 Capital Equipment Account. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of February, 2023. 133 Instrument Transformer Equipment Corporation A Power Grid Components, Inc Company PO Box 129 Monroe, NC 28110 Phone: (704) 238-3310 Fax: (704) 283-3017 Email: Sales(c)ltec-ctvt.com Date: February 6, 2023 To: Electric Power Systems, Inc. Tel: (907) 440-2259 cell Attn: Travis Oen Email: toen epsinc.com Proposal ITEC Proposal Number: 202211072675 R2 From: Lee Bigham Email: Ibighama-itec-ctvt.com (Office) 704-282-4331 (Cell) 704-283-3310 RE: City of Seward — Raymond Substation 115 kV Voltage Transformer Inquiry Thank you for your inquiry. ITEC appreciates this opportunity to offer the following proposal. All ITEC products are U.S. manufactured in our Monroe, North Carolina Facility. Our products are built and tested in accordance with the latest IEEE C57.13 standards. Item Qty Description Catalog I.D. Unit Price 1 6 VTO-550, Oil Filled Voltage Transformer VA10550060OT178 $ 11,187.00 Ea. Single bushing, (L-G), Nominal System Voltage: 115 kV Maximum System Voltage: 123 kV BIL: 550 kV Frequency: 60 Hz. Temperature range: -50 deg C to +50 deg C Altitude: 3300 ft Max. Primary Voltage: 69,000 Volts Secondary Voltages: 115/69 & 115/69 Volts Secondary Ratios: 600/1000:1 & 600/1000:1 Accuracy Class/Burdens: 0.3 @ W, X, Y, Z, ZZ Thermal Rating: 6000 VA HV Bushing: Porcelain Creepage: 121.02" / Strike 38.20" Tank: Stainless Steel, Powder Coated Expansion Chamber: Stainless Steel, Powder Coated Paint: ANSI 70 Light Gray Secondary Terminal Box w/ (3) 1.5" Conduit Hubs and Plugs Special Features: Certified Test Reports CC: (Representative) 134 Instrument Transformer Equipment Corporation A Power Grid Components, Inc. Company Page 2 of 7 Dimensional Information: Proposal L 1LCC J 1.75" SPECIFICATIONS 1 2 7 22.00" 750 TYP NSV 115kV 63" (4) PLACES BIL 550kV AN OIL VOLUME 76 GAL, 63" WEIGHT 1345 LB. 25.00" 22.00" CREEP 121" MINIMUM 3.00" 1.75" 36.00" STRIKE 38.19" MINIMUM O L I L-25.00"—J �4.00"�I 27.13" MOUNTING DIMENSIONS 4—HOLE NEMA SPADE H1 9 POLARITY IDENTIFICATION STENCILED 15 BAMEPLATE WITH .75"0 HOLES (4-PLACES) 1 ON EXPANSION 14 2-HOLE NEMA GROUND PAD 1 CHAMBER 13 SECONDARY TERMINAL BOX WITH (3) 1,50" 1 93.87"t1.00" 5 CONDUIT HUBS AND PLUGS 90.37" 12 LIFTING EARS 4 11 MILD STEEL TANK 1 12 0 10 NAMEPLATE 1 41.25" 9 OIL LEVEL INDICATOR 1 GROUND ©13 4 8 PRIMARY CONNECTION 4-HOLE NEMA SPADE S/S 1 PLANE 10 3 7 3/4" VACUUM PORT/ 1/4" NPT PRESSURE 1 3'50"Ek- RELIEF VALVE ESTIMATED xxx:1 16.511 6 EXPANSION CHAMBER 1 COG I0" L 14 0 5 PORCELAIN INSULATOR, GLAZE ANSI 70 LIGHT 1 GRAY P/N 140-11-014 RATIO STENCILED 15 4 HO BUSHING GUARD ON TANK 3 HO NEUTRAL BUSHING/REMOVABLE GROUND 1 2 DRAIN VALVE PLUG 1 1 1/2" DRAIN VALVE 1 ITEM DESCRIPTION OTY. N 12/17/18 REVISED ITEM " (REMOVED S/S), SLA �+rcaw .mvrwa, maGw�nmc m"�vy,unus�Fxcwnxn.Faa � P.O. BO% 129 DATE REVISED OIL VOLUME DO TO 76 CAL MO. BOX NC 3/25/09 M 5/2/18 ADDED P/N TO ITEM /5 SLA DRAWN BY CHECKED BY APPROVED BY 28111-0129 L 10/4/16 ADDED PLUGS TO ITEM 13 SLA K. BALL TITLE I SHEET 1) REVISION K 7/15/16 ADDED ESTIMATED COO MO TOLERANCES (EXCEPT WHERE NOTED ELSEWHERE) I SCALE OIL FILLED VOLTAGE TRANSFORMER N d 12/22/15 ADDED CONDUIT HUBS MD ± +' ± N.T.S. 115 kV CLASS 550 kV BIL I DRAWING NUMBER REV DATE DESCRIPTION BY FRACTIONAL DECIA 1 210-0550-001 `K1-7 Instrument Transformer Equipment Corporation A Power Grid Components, Inc. Company Page 3 of 7 Proposal o XECIquipment Instrument TransFormsr Corporation VOLTAGE TRANSFORMER MODEL NSV/BIL CONNECTIONS ACC/BURDEN Vl0-550 115 / 550 123 MAX kY RATIO CONNECT CONNECT 600:1 X1—X3 YI—Y3 1000:1 X2—X3 Y2—Y3 0.3 W, X, Y, Z—ZZ PRIMARY VOLTAGE 69000 V SECONDARY VOLTAGE 115 / 69 V TERTIARY VOLTAGE 115 / 69 V THERMAL RATING 6000 VA 0 3O'C 60 Hz OIL/TOTAL Wr. 76 GAL 1345LB OIL SPEC, 107—01-001 SER. ND. IEEE Std C57.13-2016 H1 HO X1 X2 X3 Y1 Y2 Y3 TEMPERATURE RANGE —50'C TO +50C FILLED WITH MINERAL OIL PCB LESS MADE IN MONROE, NC USA THAN 1PPM WHEN MANUFACTURED MFG. DATE HERMETICALLY SEALED CAUTION. DO NOT TILT BEYOND 28" KROM VERTICAL O O NOTES: 1. MATERIAL: .031" BLACK ANNODIZED ALUMINUM LASER ETCHED DRAWN BY CHECKED BY I APPROVED BY S ALLEN TOLERANCES (EXCEPT WHERE NOTED ELSEWHERE) SCALE ± ± ± N.T.S. FRACTIONAL DECIMAL ANGULAR 00 NAMEPLATE VA105500600T000 P.O. Box 129 OATS MONROE, NO 12/17/18 26111-0129 A 07 L 1LCC J IiK11.1 Instrument Transformer Equipment Corporation A Power Grid Components, Inc. Company Page 4 of 7 Proposal Shipment: Standard Shipment is 16-18 weeks after release of order for manufacture. Approval Drawings will be issued 2 weeks after receipt of order. All orders are subject to prior factory loading and material availability. Validity: Thirty (30) days after proposal date. Shipping Point: Monroe, North Carolina Delivery Terms: FOB Factory, freight prepaid and add. Buyer is responsible for all freight and unloading costs. Payment Terms: 100% Net 30 days after receipt of invoice. Warranty: Twelve months after energization, not to exceed 18 months after shipment. See attached ITEC terms and Conditions for additional warranty conditions. Sales Tax: This proposal does not include any sales or use taxes (federal, state or local), fees or tariff charges. Delays/Cancellations: In the event of an order cancellation the following schedule of charges will apply per the table below. In the event of a project delay and based on the length of delay the milestone payments may be required along with storage charges based on the schedule below. Cancellations Schedule (Before Shipment Date) Cancellation Charge (% of contract value) 0 - 2 Weeks after receipt of order 5% 2 - 4 Weeks after receipt of order 10% 8 - 10 Weeks before shipment 40% 3 - 8 Weeks before shipment 60% 0 - 2 Weeks before shipment 100% Comments, Clarifications and Exceptions Delays: Schedule (Before Shipment Date) Milestone Payment (% of contract value) 10 - 16 Weeks before shipment 0% 8 - 10 Weeks before shipment 25% 3 - 8 Weeks before shipment 70% 0 - 2 Weeks before shipment 100%* *Additional storage charges may apply based on length of delay • ITEC standard Terms and Conditions of Sales are attached and made part of this offer. 137 Instrument Transformer Equipment Corporation A Power Grid Components, Inc. Company Page 5 of 7 Proposal TERMS AND CONDITIONS I MCC 1. OFFER, GOVERNING PROVISIONS AND CANCELLATIONS: This document constitutes an offer or counter-offer by Instrument Transformer Equipment Corporation or any of its affiliates ("Seller") to sell various products as agreed by Seller ("Products") to the buyer named on the reverse side of this document or in other applicable print or electronic documentation ("Buyer") in accordance with these terms and conditions. This writing is not an acceptance of any offer made by Buyer. This offer or counter-offer is expressly conditioned upon Buyer's assent to these terms and conditions and no others. Buyer is deemed to have assented to these terms and conditions when the first of the following occurs: A. Buyer signs and delivers to Seller an acknowledgement copy of any of Seller's quotation, order acknowledgement or invoice forms; B. Buyer gives to Seller (orally or in writing) specifications of quantity and/or type, assortments thereof, delivery dates, shipping instructions, instructions to bill, or the like as to all or any part of the Products; C. Buyer receives delivery of any of the Products; or, D. Buyer has otherwise assented to the terms and conditions hereof. Where the reverse of this document consists of a quotation, the quotation remains open for acceptance for a period of thirty (30) days or such other period as specified in the quotation. Seller hereby rejects any additional or different terms or provisions contained in any purchase order, acknowledgment or other communication heretofore or hereafter received from Buyer. Seller's delivery of Products does not constitute an assent to any terms proposed by Buyer. Except for an officer of Seller, no representative of Seller has any authority to waive, alter, vary, amend, or add to the terms hereof. THESE TERMS AND CONDITIONS OF SALE CONSTITUTE THE ENTIRE AGREEMENT ("AGREEMENT") BETWEEN SELLER AND BUYER WITH RESPECT TO THE MATTERS ADDRESSED HEREIN. 2. PRICES: The prices for the Products are based on the terms and conditions herein, including the limitations of liability and warranties, and all such terms and conditions are material to the sale of the Products. All quotations and invoices show the net selling price of each item quoted. In the event of a mathematical error, the quoted price per Product governs. 3. TERMS OF PAYMENT: Buyer will pay the fees specified in each invoice provided by Seller in United States Dollars within thirty (30) calendar days after the invoice date. Any amount due under this Agreement that remains unpaid after its due date will bear interest from the date that such payment became delinquent until the date it is paid in full at the lower of 1.5% per month or the maximum rate permitted by law. Seller reserves the right to establish, revoke or modify credit terms for Buyer at any time. No discounts are allowed. Buyer will pay any collection fees, legal fees, or court costs incurred by Seller to collect past due amounts. No offsets or setoffs of payments due to Seller hereunder are allowed with respect to any other agreement between the parties. Seller hereby retains a lien on the goods sold for unpaid purchase money as herein provided. 4. TAXES AND OTHER CHARGES: In addition to the prices quoted or invoiced, Buyer will pay any sales tax, excise tax, use tax, value added or consumption tax, customs duty (that is assessed on the delivery of Product(s) to a destination outside of the U.S.A.), fee or charge of any nature whatsoever imposed by any governmental authority on or measured by the transaction between Seller and Buyer. In the event Seller is required to pay any amount, Buyer will reimburse Seller therefore; or provide Seller, at the time the order is submitted, an exemption certificate or other document acceptable to the authority imposing the same. Seller does not accept and will not pay any fines, penalties or chargebacks from Buyer for any reason. 5. DELIVERY, RISK OF LOSS, CLAIMS AND FORCE MAJEURE: A. All prices quoted for products are Ex -Works (Incoterms 2010) at a shipping facility determined by Seller, unless otherwise noted by Seller ("Seller's Shipping Facility"). Risk of loss or damage, and beneficial ownership, of the Products are transferred to Buyer when the Products are made available to Buyer at Seller's Shipping Facility. All delivery dates are approximate. B. Buyer will only make written claims to Seller for damages, shortages or other delivery errors within seven (7) calendar days after receipt of shipment. All Products received by Buyer, or Buyer's clients, customers, or agents, that are not rejected within such time will be 138 Instrument Transformer Equipment Corporation A Power Grid Components, Inc. Company Page 6 of 7 Proposal I MCC deemed accepted. Failure to provide such written notice constitutes a waiver of all such claims regarding such shipment by Buyer. Buyer will not revoke acceptance. C. Seller is not liable for any damage as a result of any delay or failure to deliver due to any act of God, act of Buyer, embargo or other governmental act, regulation or request, fire, accident, power outage, strike, civil unrest, weather, slowdown or other labor difficulties, war, riot, act of terrorism, delay in transportation, defaults of common carriers, inability to obtain necessary labor, materials or manufacturing facilities or, without limiting the foregoing, any other delays beyond Seller's control. Buyer's sole and exclusive remedy for any delays or for Seller's inability to deliver Products for any reason, in each case, that persists for more than ninety (90) days, is to cancel the order pursuant to Seller's Order Policies and Guidelines available upon request. 6. WARRANTY; DISCLAIMER. Seller's Products will be free of defects related to the material and/or workmanship of the Products for one (1) year from the date of shipment by Seller. The foregoing warranty does not cover any misapplications or misuse of any Product. Buyer must promptly notify Seller of any claim under this warranty. Buyer's exclusive remedy for any breach of this warranty will be the repair or replacement, at the Seller's option, of any defective Product that is returned to the Seller within one year from the date of shipment. The foregoing warranty runs only to the Buyer and is non -transferable and is of no force and effect if asserted by any person other than the Buyer. EXCEPT AS SET FORTH HEREIN, SELLER DISCLAIMS ALL REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, NON -INFRINGEMENT, FITNESS FOR A PARTICULAR PURPOSE OR ANY WARRANTY ARISING FROM A COURSE OF DEALING OR USAGE OF TRADE. NO PERSON (INCLUDING ANY AGENT, DEALER OR REPRESENTATIVE OF SELLER) IS AUTHORIZED TO MAKE ANY REPRESENTATION OR WARRANTY CONCERNING PRODUCTS EXCEPT TO REFER BUYER TO THIS AGREEMENT. BUYER WARRANTS THAT BUYER HAS NOT RELIED ON ANY OTHER WARRANTIES OR REPRESENTATIONS CONCERNING THE PRODUCTS OR THIS AGREEMENT. 7. LIMITATION OF LIABILITY: SELLER WILL NOT BE LIABLE FOR ANY LOSS OF PROFIT, INTERRUPTION OF BUSINESS OR ANY OTHER SPECIAL, CONSEQUENTIAL OR INCIDENTAL DAMAGES SUFFERED OR SUSTAINED BY BUYER FOR ANY REASON. EXCEPT FOR CLAIMS OF DEATH OR PERSONAL INJURY, IN NO EVENT WILL SELLER'S AGGREGATE LIABILITY TO BUYER ARISING UNDER OR IN ANY WAY RELATED TO THIS AGREEMENT FOR ANY REASON (INCLUDING, BUT NOT LIMITED TO, LIABILITY ARISING FROM NEGLIGENCE OR ON THE BASIS OF STRICT LIABILITY, OR OTHERWISE) EXCEED THE TOTAL AMOUNT PAID BY BUYER TO SELLER HEREUNDER FOR ANY PRODUCT GIVING RISE TO A CLAIM UNDER THIS AGREEMENT. 8. RETURNS: Unless otherwise approved by Seller in writing in its sole discretion (which approval may be conditioned on the payment of a restocking charge), Buyer will only return Products in the event of a non -conforming shipment or a warranty issue, and then only if Buyer first: (a) provides notice to Seller as required in this Agreement, (b) obtains prior authorization from Seller, and (c) all Products or containers for which return is properly authorized have been marked with a return authorization number supplied by Seller. Buyer will make all returns via a traceable form such as Federal Express, UPS or insured mail and in resalable condition. Buyer will pay all return shipping charges and any other charges associated therewith. 9. CANCELLATIONS: Cancellation or deferment of all or part of an order is subject to acceptance by the Seller. If accepted, any reduction in quantity of any item to less than 85% of the original item quantity is subject to a 15% cancellation charge. If an order cancellation is accepted, the Buyer will take delivery and pay for all material manufactured and in stock or in process at time of notice for such order, and for any special materials on orders for which the Seller must take delivery. 10. MISCELLANEOUS. This Agreement is governed by the laws of the State of North Carolina, without giving effect to its conflict of laws principles. Buyer hereby irrevocably consents and submits to the exclusive jurisdiction and venue of the state and federal courts Charlotte, North Carolina. The United Nations Convention for Contracts for the International Sale of Goods is explicitly excluded. Each provision contained in this Agreement constitutes a separate and distinct provision severable from all other provisions. If any provision (or any part thereof) is unenforceable under or prohibited by any present or future law, then such provision (or part thereof) will be amended, and is hereby amended, so as to be in compliance with such law, while preserving to the maximum extent possible the intent of the original fB1*l Instrument Transformer Equipment Corporation A Power Grid Components, Inc. Company Page 7 of 7 Proposal I MCC provision. Any provision (or part thereof) that cannot be so amended will be severed from this Agreement; and, all the remaining provisions of this Agreement will remain unimpaired. No modification, addition or deletion, or waiver of any rights under this Agreement is binding on a party unless made in a non -preprinted agreement clearly understood by the parties to be a modification or waiver, and signed by a duly authorized representative of each party. M191 Resolution 2023-016 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Enter into Amendment # 1 to the Contract Between the City of Seward and Yukon Fire Protection to include the New Animal Shelter in the Service Contract, and Appropriating Funds Documents: • Agenda Statement • Resolution 2023-016 • Attachments: o Contracts o Amendment #1 `« City Council Agenda Statement Meeting Date: February 13, 2023 To: City Council Through: Janette Bower, City Manager From: Clinton Crites, Fire Chief Subject: Resolution 2023-016: Authorizing the City Manager to Enter into Amendment #1 to the Contract Between the City of Seward and Yukon Fire Protection to Include the New Animal Shelter in the Service Contract, and Appropriating Funds Background and justification: The Fire Department coordinates the annually required fire extinguisher, fire alarm, and sprinkler inspections for all City buildings. The proposed contact would last one year with one-year extension. The previous contract did not include the new Animal Shelter. It is necessary to add the new Animal Shelter to our annually required fire extinguisher, fire alarm, and sprinkler inspections for the City. The Fire Department, per Seward City Code 2.25.005 Fire Department Power and Duties, "is responsible for maintenance and repair of all City fire alarm systems". It is necessary to add the new Animal Shelter to the contract approved in Resolution 2021-025 and adding an additional $500.00 annually to cover the additional building and fire extinguishers. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Page 19, Promote a safe community with superior police and fire management Other: Seward City Code 2.25.005 Fire Department Power and Responsibility Certification of Funds Total amount of funds listed in this legislation: $ 500.00 This legislation (✓): Creates revenue in the amount of: $ x Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): X Budgeted Line item(s): Not budgeted Not applicable 500.00 `ey: Affected Fund (✓): ✓ General SMIC Boat Harbor Parking Motor Pool Other Fund Balance Information Electric Wastewater Water F1 Healthcare Note: amounts are unaudited Fund Balance/Net position — restricted $ 2,575,000 Fund Balance/Net position — unrestricted/unassigned $ 7,966,028 Available Unrestricted Cash Balance: $ 10,318,577 Finance Director Signature: Attornev Review RxYes Attorney Signature: Not applicable Comments: eApprove Resolution Other: Administration Recommendation 143 Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2023-016 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Enter into Amendment #1 to the Contract Between the City of Seward and Yukon Fire Protection to Include the New Animal Shelter in the Service Contract, And Appropriating Funds WHEREAS, Seward City Code 2.25.055 - Fire Department Power and Duties states the Seward Fire Department "is responsible for maintenance and repair of all City fire alarm systems"; and WHEREAS, the fire department coordinates the annually -required fire extinguisher, fire alarm, and sprinkler inspections for all City buildings; and WHEREAS, the proposed Amendment No. 1 would add the new Animal Shelter to the service contract with Yukon Fire Protection; and WHEREAS, this amendment would increase the current contract (approved by Resolution 2021-025) by an additional amount of $500.00 per year to cover fire detection, suppression system, and fire extinguisher inspection, maintenance, and hydro -testing. 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 sign Amendment No. between the City of Seward and Yukon Fire Protection. Section 2. Funding in the amount to not exceed of $22,500 is included under each department's FY23_FY24 budget under the contracted services line item 7009. No additional appropriation is necessary. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of February, 2023. THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 144 Amendment No. 1 Amendment No. 1 to the agreement between the City of Seward and Yukon Fire Protection., dated February 22, 2021 follows: WHEREAS, Resolution 2021-025 approved the contract between the City of Seward and Yukon Fire Protection for inspection and maintenance of fire detection and suppressions systems for all departments for the City of Seward, as coordinated with the Seward Fire Department plus 2 one-year extensions; and WHEREAS, a separate contract for the inspection, maintenance, and hydro -testing of fire extinguishers for all departments for the City of Seward, as coordinated with the Seward Fire Department plus 2 one-year extensions; and WHEREAS, contract date to begin February 22, 2023 through February 22, 2024 plus one- year extension that could extend the contract to 2025 WHEREAS, Amendment No. 1 would add fire detection, suppression system and inspection, maintenance, and hydro -testing of all fire extinguishers at the New Animal Shelter for an additional $500.00. NOW, THEREFORE, in consideration of the mutual exchange of the promises of the parties the agreed to amendment to the agreement as follows: 3. FEES shall read "Total Cost Not -To -Exceed $22,500.00 Per Year" 4. SCOPE OF SERVICES shall read "The City and Contractor have agreed upon a scope of work described in the Contractor's proposal, in response to the RFP issued by City dated August 14, 2018, to provide professional services based on approved standards and instructions as specifically described in the same RFP." Except as provided herein, all other terms and conditions of the originating agreement remain in full effect. In witness thereof, the parties have set their hands and seals below: Yukon Fire Protection City of Seward Date Date 145 F] 3 YEAR CONTRACT PI.,US 2 ONE-YEAR EXTENSIONS Y U KON FIRE PROTECTION FIRE DETECTION & SUPPRESSION SYSTEMS This contract is between the City of Seward and Yukon Fire Protection, office location is 5601 Silvemdo Way, Anchorage Alaska 99518. Office phone contact 907-563-3608. This is a three (3) year contract for inslicction and maintenance of fire detection and suppressions systems for all departmcnts Im the City of Seward, as coordinated with the Seward Fire Department plus 2 oric-year extensions. CONTRACT DATES: February 2.2, 2021 through February 2023 plus 2 one- year extensions that could extend the contract to 2024 and 2025. Pricing is outlined in the price yunte i c poose. It is further understood that any fire system that needs repairs will be diSCL ,tiCti and the option of repair or replacement will be made. Subject to the extent of the repairs, the cost and type of work involved versus the per hour shop charge for possible upgr,i(lcS. The first inspection of fire detection and suppression systems for the City of Seward, under this contract will be completed during the month of October 2021. City of Sewar epresentative Yukon Frrc 1'rolcction Reprge t ive Erik van Elburg, Operations Manager 6F-a5-;Zj Date 2f 10/2021 Date Mr Es i G ,l `7D IC1: .w+a�9i6sAsaSSga :• SEALOF e� #40fens��ra 3 YEAR CONTRACT PLUS 2 ONE YEAR EXTENSIONS YUKON FIRE PROTECTION FIRE EXTINGUISHER This contract is between the City of Seward and Yukon Fire Protection, off ice location is 5601 Silverado Way, Anchorage Alaska 99518. Office phone contact 907-56 1-3608. This is a three (3) year contract for inspection, maintenance and hydro- test[ii- of fire extin4ouishcrs for all departments for the City of Seward, as coordinated with the Seward Fire Dcpartment plus 2 one-year extension. CONTRACT DATES: February 22, 2021 through February 2023 plus 2 one-year extensions that could extend the contract to 2024 and 2025. Pricing is outlined in the price quote response. It is further understood that an extinguisher that needs to be repaired or replaced will be discussed and the option of repair or replacement will be made. Subject to the extent of the repairs, the cost and type of extinguisher involved versus the per hour shop charge. The first inspection of extinguishers for the City of Seward, under this contract will be completed during the month of October 2021. City of Sew epresentative cr 6!�a Yukon hire Protection R resentative Erik van Elburg, Operations Manager Date 2/10/2021 Date OF s ►. , • ; SEAL +Sri �i OF p't p,7 +• 147 Sponsored by: Regis CITA' OF 5F.IVARD, ALASKA RESOLUTION 2021-025 A RESOLUTION OF T I I E ("ITV COUNCI1, OF THE. CITY OF SEW ARD, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO CONTRACTS «7TH ) LIKON FIRE PROTECTION FOR .ANNUAL INSPECTION SERN'IC:ES FOR THE CITY'S FIRE EXTINGUISHERS, FIRE ALARMS, AN D SPR1N KI.ER SYSTENIS FOR A PERIOD OF THREE YEARS, WITH TWO ONE-YEAR EXTENSION'S, AT A TOTAL COST NOT -TO -EXCEED S22,000 PER YEAR WHEREAS, Seward City Code 2.25.055, Fire Department Power and f.)utics_ states the Seward Fire Department "Is responsible for maintenance and repair of all City fire alarm systems"; and WHEREAS, the fire department coordinatcs the annually -required fire extinguisher, fire alarm, and sprinkler inspections tior all City buildings, and WHEREAS, the proposed contract would last three years with two one-year extensions; and WHEREAS, a longer contract for these services was determined to be more efficient than going out for bid every t\,,o years; and WHEREAS, after evaluating bids for fire extinguisher service, and also bids for fire alarm and sprinklers systems, it was determined that Yukon Fire Protection was the best provider. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ;ALASKA that: Section 1. The city manager is hereby auth01-1led to contract with Yukon Fire Protection to provide annually -required fire extinguisher inspect 10 s and services for all City buildings for three years with the two one-year extension option, as attached therein. Section 2. The city manager is hereby authorized to contract with Yukon Fire Protection to provide annually -required fire alarm and fire sprinkler systems inspections and services for all. City buildings for three ycar5 with the two one-year extension option, as attached herein. Section 3. Both contracts will he e llf ecti t e February 2021 through Decemcber 31, 2023, with two one-year extension options fi)r 2024 and 2025, at a total cost not -to -exceed S22.000 per year. Section 4. This resolution shall take effect inimediately upon adoption. 148 0-11` OF SEWARD, ALASKA RES01.UT10N 2021-025 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22°d clay a I' February, 2021. THE;C FI`l` OF SEWARD, ALjkSKA / ty Terry, M AYES: Baclaan, Osenga, DeMoss, McClure, Casagranda, Seese, Terry NOt.S: None ABS I NT: None ABSTAIN: None ATTEST: l ISMi/ e. 3- r City Clerk %W eaa ,r■ (City Se �1 of 5C ,r, a. OF E 149 ITITWEINU To: City Council Through:o; Regis From: Clinton Crites, Fire Chief Agenda Item: Allowing the City Manager to enter into a contract with Yukon Fire Protection for annual inspection services for fire extinguishers, fire alarm and sprinkler systems for a period of three years with two one-year extensions at a total annual cost not -to -exceed $22,000 [�MUNDJIUIIM1 responsibleThe Fire Department, per Seward City Code 2.25.005 Fire Department Power and Duties, "is ■ department has put out for bids for this matter, with two being three-year contracts for annual fire extinguisher d fire systems inspections. The bid process is time consuming to repeat every two breakears, as we I as the 1 - r w r lid 1M#1 -i # for inspections b� i becausenecessary local businesses affordedseveral contracts, we opportunity to bid for our City contract. This year, aft evaluation of _ scontractorame fire protectionhad the highest scoresboth qW9F*_;;Wmel*WAS, _ INTENT: To allow the City Manager to enter into a contract with Yukon Fire Protection for annual inspection services for fire extinguishers and fire alarm and sprinkler systems for an initial period of three years with two one-year extensions. CONSISTENCY CHECKLIST: Yes No N/A ................ " 1. Comprehensive Plan (document source here): X .............................. 2 Strategic Plan (document source here): Page 19, Promote a safe X community with superior police and ire management 3. Other (list): Seward City Code 2.25.005 Fire Department Power and X .............ResonsibIit 150 FISCAL NOTE: Total annual cost not -to -exceed $22,000. Funding for this contract is included in each department's 2021 budget under contracted services line item 7009 and will continue to be factored into future budgets for the length of the contract. No additional appropriation is necessary. Approved by Finance Department; 1 1 L ATTORNEY REVIEW: Yes No Not Applicable RECOMMENDATION: For Council to approve Resolution 2021- __� ,, allowing the City Manager to enter into a contract with Yukon Fire Protection for annual inspection services for fire extinguishers and fire alarm and sprinkler systems for a period of 3 years with two one-year extensions. IN F] 3 YEAR CONTRACT PI.,US 2 ONE-YEAR EXTENSIONS Y U KON FIRE PROTECTION FIRE DETECTION & SUPPRESSION SYSTEMS This contract is between the City of Seward and Yukon Fire Protection, office location is 5601 Silvemdo Way, Anchorage Alaska 99518. Office phone contact 907-563-3608. This is a three (3) year contract for inslicction and maintenance of fire detection and suppressions systems for all departmcnts Im the City of Seward, as coordinated with the Seward Fire Department plus 2 oric-year extensions. CONTRACT DATES: February 2.2, 2021 through February 2023 plus 2 one- year extensions that could extend the contract to 2024 and 2025. Pricing is outlined in the price yunte i c poose. It is further understood that any fire system that needs repairs will be diSCL ,tiCti and the option of repair or replacement will be made. Subject to the extent of the repairs, the cost and type of work involved versus the per hour shop charge for possible upgr,i(lcS. The first inspection of fire detection and suppression systems for the City of Seward, under this contract will be completed during the month of October 2021. City of Sewar epresentative Yukon Frrc 1'rolcction Reprge t ive Erik van Elburg, Operations Manager 6F-a5-;Zj Date 2f 10/2021 Date Mr Es i G ,l `7D f6'Y: .w+a�9i6sAsaSSga :• SEALOF e� #40fens��ra 3 YEAR CONTRACT PLUS 2 ONE YEAR EXTENSIONS YUKON FIRE PROTECTION FIRE EXTINGUISHER This contract is between the City of Seward and Yukon Fire Protection, off ice location is 5601 Silverado Way, Anchorage Alaska 99518. Office phone contact 907-56 1-3608. This is a three (3) year contract for inspection, maintenance and hydro- test[ii- of fire extin4ouishcrs for all departments for the City of Seward, as coordinated with the Seward Fire Dcpartment plus 2 one-year extension. CONTRACT DATES: February 22, 2021 through February 2023 plus 2 one-year extensions that could extend the contract to 2024 and 2025. Pricing is outlined in the price quote response. It is further understood that an extinguisher that needs to be repaired or replaced will be discussed and the option of repair or replacement will be made. Subject to the extent of the repairs, the cost and type of extinguisher involved versus the per hour shop charge. The first inspection of extinguishers for the City of Seward, under this contract will be completed during the month of October 2021. City of Sew epresentative cr 6!�a Yukon hire Protection R resentative Erik van Elburg, Operations Manager Date 2/10/2021 Date OF s ►. , • ; SEAL +Sri �i OF p't p,7 +• 153 Resolution 2023-017 A Resolution of the City Council of the City of Seward, Alaska, Accepting and Appropriating Animal Shelter Donations in the Amount of $20,611.57, Collected Until December 31, 2022, to Fund Expenses Related to the New Animal Shelter Documents: • Agenda Statement • Resolution 2023-017 • Attachments: o Animal Shelter Donations File 154 City of Seward Agenda Statement Meeting Date: February 13, 2023 To: City Council Through: Janette Bower, City Manager From: Sully Jusino, Deputy Finance Director Subject: Resolution 2023-017: Accepting and Appropriating Animal Shelter Donations in the Amount of $20,611.57, Collected Until December 31, 2022, to Fund Expenses Related to the New Animal Shelter Background and justification: City of Seward welcomes tax-deductible donations from the public and appreciates the support of its programs. Donations can be either general unrestricted donations or designated to specific departments and projects. The Administration will determine a recommended use of the proceeds for unrestricted donations related to the Animal Shelter. Whenever appropriate eligible expenses are made, the Administration will identify those expenses and match the donations that are being used to cover those expenses. The City of Seward considers any donation greater than $5,000 to be a substantial donation. Any substantial donation will be identified separately to the City Council for recognition. The Animal Shelter has received $20,611.57, from the period 01/01/2019 to 12/31/2022. These monies will help to provide emergency medical care, medical supplies, equipment, office supplies, foods and cleaning supplies. It is in the best interest of the City of Seward to accept and appropriate these donations. Donations received prior this date were utilized on the Resolution 2018-049 for the construction of the Animal Shelter. Comprehensive and Strategic Plan Consistency Information This legislation Comprehensive Strategic Plan: Other: is consistent with (citation listed): Plan: Certification of Funds Total amount of funds listed in this legislation: $ 20,611.57 This legislation (✓): x Creates revenue in the amount of: $ 20,611.57 Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact `&V Funds are (✓): Budgeted Line item(s): X Not budgeted Not applicable Affected Fund (✓): X General SMIC Boat Harbor Parking Motor Pool Other Fund Balance Information Electric Wastewater Water F1 Healthcare Note: amounts are unaudited Fund Balance/Net position — restricted $ 2,575,000.00 Fund Balance/Net position — unrestricted/unassigned $ 8,260,377.52 Available Unrestricted Cash Balance: $ 10,189,834.04 Finance Director Signature: Attornev Review RxYes Attorney Signature: Not applicable Comments: fhb: Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2023-017 A Resolution of the City Council of the City of Seward, Alaska, Accepting and Appropriating Animal Shelter Donations in the Amount of $20,611.57, Collected Until December 31, 2022, to Fund Expenses Related to the New Animal Shelter WHEREAS, the City of Seward welcomes tax-deductible donations from the public and appreciates the support of its programs; donations can be either general unrestricted donations or designated to specific departments; and WHEREAS, the city manager will determine a recommended use of the proceeds for unrestricted donations related to the Animal Shelter. Whenever appropriate, eligible expenses are made, the city manager will identify those expenses and attach them with the donations that are being used to cover those expenses; and WHEREAS, the City of Seward considers any donation greater than $5,000 to be a substantial donation; any substantial donation will be identified separately to the City Council for recognition; and WHEREAS, the animal shelter has received $20,611.57 from the period January 1, 2019 to December 31, 2022; these monies will help to provide emergency medical care, medical supplies, equipment, office supplies, foods, and cleaning supplies; and WHEREAS, donations received prior this date were utilized on Resolution 2018-049 for the construction of the Animal Shelter; and WHEREAS, it is in the best interest of the City of Seward to accept and appropriate these donations in the total amount of $20,611.57. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Seward City Council hereby authorizes the City Manager to transfer funds in the amount of $20,611.57 from the Liability Account no. 01000-0000-2322 to the Animal Shelter Donation account 01000-1212-4324. Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of February, 2023. iNA Account 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 01000 0000 2322 0000 00000 Account Description Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations Animal Shelter Donations 01000 0000 2322 0000 00000 Animal Shelter Donations 01000 0000 2322 0000 00000 Animal Shelter Donations 01000 0000 2322 0025 00000 Animal Medical Expenses City Of Seward General Fund Animal Shelter Donations 12/31/2022 Date Reference Description 1/03/20191024 ANIMAL CONTROL Donationfrom Hugh &Iris Darling 1/03/20191108 ANIMALCONTROL Donation from Clearview Haven Jaime Atherton 1/11/20196235 ANIMAL CONTROL donation Kelley Lane/Jessica Fogle 6/04/2019330749345 ANIMAL CONTROL donation fron Ellen Obrien 6/05/20191464 ANIMAL CONTROL donation/fundraiserfrom Alaska Seafood Grill 6/11/2019 9472 ANIMAL CONTROL donation from Rhonda Berklund 9/05/20194170 ANIMAL CONTROL donation from Michael&Adrienne Lynch 9/20/2019135 ANIMAL CONTROL Lions Club Donantion 10/31/2019248 ANIMAL CONTROL Donation Karen Smith (Dorsey) 12/23/20197251 ANIMAL CONTROL Donation- Karyn Clemens 12/31/20192679 ANIMAL CONTROL Donation -Puffin Charters -Bobby Vincent Donation 3/03/2020 Febraury ANIMAL CONTROL February Revenues 3/11/20207732 ANIMAL CONTROL Donation from Douglas Currault-I n Memory of Joan Adele Fox 6/09/202012914 ANIMAL CONTROL ANIMAL SHELTER-CINDY RANKIN-B/D GIFT-R&J SPUR 9/08/20205053 ANIMAL CONTROL Donation -Robert & Brenda Rang 9/08/20205721 ANIMAL CONTROL Donation -Leroy & Barbara Nord 11/24/20202296 ANIMAL CONTROL Donation Suzann G Speckman 12/09/20202482 ANIMAL CONTROL Donation -Heather Shank Indigo's Birthday 1/06/20217274 ANIMAL CONTROL Donation -Karyn A Clemens 3/31/2021 MARCH ANIMAL CONTROL MARCH ANIMAL SHELTER REVENUES 4/30/2021 ANIMAL CONTROL April Animal Shelter Revenues 6/01/2021 MAY 21 ANIMAL CONTROL MAY21 REVENUES 6/30/2021 8866 & 2594 ANIMAL CONTROL JUNE DONATIONS 8/02/2021240 ANIMAL CONTROL Donation for the Animal Shelterform Karin E Hardy 8/17/202171766 ANIMAL CONTROL Donation - Pursuit( KFT&Windsong) 9/10/202171989 ANIMAL CONTROL Donation -Pursuit( Kft&Windsong) 10/14/2021 6161 ANIMAL CONTROL Pioneers of Alaska #9-Payment in memory of Roger Bleth 10/14/202172155 ANIMAL CONTROL Donation -Pursuit( KFT&Windsong) 10/15/202134674 ANIMAL CONTROL Donation for the Animal Shelter 10/19/202172169 ANIMAL CONTROL Donation to animal shelterfrom CATC 11/15/2021 9667 ANIMAL CONTROL Donation -Ron & Nancy Osborn in memory of Roger Bleth 12/01/20218625 ANIMAL CONTROL DONATION TO THE ANIMALSHELTER KNOTEK 12/01/20211315 ANIMAL CONTROL DONATION TO THE ANIMAL SHELTER ATKINSON-ELDE 12/02/20211175 ANIMAL CONTROL Donation -Joni Leopardi in memory of Roger Bleth 12/02/20214339 ANIMAL CONTROL Donation -Linda Ashley 12/22/20217303 ANIMAL CONTROL Donation-Karyn Clemens 1/26/20221095 ANIMAL CONTROL Kristi A Larson 2/01/2022 9091 ANIMAL CONTROL ORS Impact 2/28/2022996488 ANIMAL CONTROL Donation for the Animal Shelterfrom Manette SStanley 2/28/2022288 ANIMAL CONTROL Donation for the Animal Shelterfrom Vickie LDetert 2/28/2022 A.SHELTERCAH ANIMAL CONTROL DEPOSIT FOR ANIMAL SHELTER FEBRUARY22 4/04/2022 447019 ZUDYSCAFEAnimal Shelterdonation 5/06/2022 1035 ANIMAL CONTROL Donation -Chalet of Seward 6/24/2022 ANIMAL CONTROL Donation from April/May Fundraiser 6/24/2022 195 ANIMAL CONTROL Donation-Jon&Teresa Coleman 6/30/2022 ANIMALCONT ANIMAL CONTROL ANIMAL CONTROL DEPOSIT 6/1-6/30/22 7/08/2022 DONATION ANIMAL CONTROL Donation Horseman 9/09/2022 5916 ANIMAL CONTROL Donation inthe name of Kathleen Barkley 9/19/2022 ANIMAL CONTROL Donation inthe name of Kathleen Barkley 11/15/2022 366 ANIMAL CONTROL DONATON FROM ANTHONY W BROWN 12/06/20224244 VERTICALAIR LLC DONATION FORTHE NEW ANIMAL SHELTER 12/28/2022 CK#3062 AMERICAN LEGION POST 5 DONATIONS FROM AMERICAN LEGION - CK#3062. CK#3057 AMOUNT RESTRICTED TO EMERGENCY MEDICAL CARE ONLY 12/28/2022 3878 S.A.L. SQUADRON #5 ANIMAL SHELTER DONATION 12/31/2022 AC123122 ANIMAL CONTROL ANIMAL CONTROL DEPOSIT 12/1-12/31/22 12/28/2022 CK#3057 AMERICAN LEGION POST 5 DONATIONS FROM AMERICAN LEGION - CK#3057. CK#3057 AMOUNT RESTRICTED TO EMERGENCY MEDICAL CARE ONLY Amount $ 100.00 $ 250.00 $ 50.33 $ 200.00 $ 1,061.25 $ 500.00 $ 100.00 $ 3,500.00 $ 100.00 $ 200.00 $ 500.00 $ 20.00 $ 100.00 $ 100.00 $ 200.00 $ 150.00 $ 75.00 $ 25.00 $ 250.00 $ 8.90 $ 1.55 $ 0.85 $ 200.00 $ 150.00 $ 422.09 $ 772.15 $ 150.00 $ 568.98 $ 200.00 $ 2.91 $ 25.00 $ 50.00 $ 50.00 $ 20.00 $ 200.00 $ 250.00 $ 25.00 $ 500.00 $ 50.00 $ 19.65 $ 0.35 $ 425.00 $ 500.00 $ 1,360.00 $ 550.00 $ 130.00 $ 1,900.00 $ 50.00 $ 25.00 $ 100.00 $ 1,512.56 $ 1,160.00 500.00 250.00 1,000.00 Total 5 20,611.57 158 Resolution 2023-018 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Purchase from Royal Switchgear Nine 115kV Vertical Break Switches for Installation in the Fort Raymond Substation in a Not -to - Exceed Amount of $167,455, And Appropriating Funds Documents: • Agenda Statement • Resolution 2023-018 • Attachments: o Royal Switchgear Quote `M City Council Agenda Statement Meeting Date: February 13, 2023 To: City Council Through: Janette Bower, City Manager From: Rob Montgomery, General Manager - Electric Agenda Item: Resolution 2023-018: Authorizing the City Manager to Purchase Nine 115kV Vertical Break Switches from Royal Switchgear for Installation in the Fort Raymond Substation in a Not -to -Exceed Amount of $167,455, And Appropriating Funds Background and justification: In 2023, construction work to replace aging transmission infrastructure and upgrade system voltage capacity will get underway. To upgrade system voltage capacity, the existing transformers and related equipment in the Fort Raymond Substation must be replaced. Vertical break switches are an essential part of any power plant or substation in that they stop power from being transmitted onto the grid when there is a fault on a circuit, thereby preventing outages on the grid. The new vertical break switches will replace the existing, older switches in the substation. Additionally, the installation of the new switches is part of the larger transmission infrastructure project planned for the city over the next 2-4 years. Multiple vendors were contacted about the vertical break switches and Royal Switchgear provided the lowest bid while also meeting all operational specifications. The not -to -exceed amount includes $10,000 for testing to ensure the switches meet seismic requirements. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive 3.7.1.4 "Continue to upgrade and expand utilities to meet existing needs and Plan: encourage future development." Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ This legislation (✓): Creates revenue in the amount of: $ x Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s) x Not budgeted Not applicable 15340-0000-8101 167,455, includes t10,000 for seismic testina f[:36, Fund Balance Information Affected Fund (✓): ✓ General SMIC Electric Wastewater Boat Harbor Parking F1 Wat F1 Healthcare Motor Pool Other Note: amounts are unaudited Fund Balance/Net position — restricted $ 9,486,364 Fund Balance/Net position — unrestricted/unassigned $ 7,426,000 Available Unrestricted Cash Balance: $ 16,086,334 Finance Signature: �t Attornev Review RxYes Attorney Signature: Not applicable Comments: eApprove Resolution Other: Administration Recommendation IN Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2023-018 A Resolution of the City Council of the City of Seward, Alaska, Authorizing the City Manager to Purchase from Royal Switchgear Nine 115kV Vertical Break Switches for Installation in the Fort Raymond Substation in a Not -to -Exceed Amount of $167,455, And Appropriating Funds WHEREAS, Royal Switchgear was selected as the preferred vendor for the vertical break switches following outreach to multiple vendors; and WHEREAS, Royal Switchgear provided the lowest bid while also meeting all operational specifications; and WHEREAS, vertical break switches are an essential part of any power plant or substation in that they stop power from being transmitted to the grid when there is a fault on a circuit, thereby preventing outages on the grid; and WHEREAS, these new switches will replace the existing, older break switches located in the Fort Raymond Substation; and WHEREAS, the not -to -exceed amount includes $10,000 for testing to ensure the switches meet seismic requirements; and WHEREAS, the installation of these new switches are part of the larger infrastructure project planned for the City over the next 2-4 years to replace aging equipment and increase the transmission system's overall capacity. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to purchase nine vertical break switches from Royal Switchgear for the Fort Raymond Substation, including an additional $10,000 to complete seismic analysis testing to ensure the switches meet seismic requirements. Section 2. Funding in the not -to -exceed amount of $167,455 is hereby appropriated from the System Infrastructure Project budget via the approved Revenue Bond from Electric Fund reserves account no.15000-0000-3710 to be transferred to the Electric Critical Infrastructure Fund 15340-0000-3700 and appropriated into 15340-0000-8101 Infrastructure Expense Account. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of February, 2023. `"M Royal Switchgear Quote 1/26/2023 10:33:47 AM Royal Switchgear Manufacturing Company 3995 Pine Lane SE Bessemer AL 35022 (205) 426-4090 RYl Customer: COS0100 Estimate: E000062648 Phone: Customer Quote: Fort Raymond Substation Fax: Quote Date: 1/26/2023 Address: City Of Seward Expiration Date: 1/26/2023 410 Adams Street P.O. BOX 167 Billing Terms: Net 30 Days Seward AK 99664 Cust Currency: USD End Cust.: City of Seward Salesperson: Peak Measure Ship Via: QT5 - Freight Collect or Prepaid/Add Line Quantity Item Cust Item Lead Time in Weeks Unit Price Extended Price 1 9.00 EA AVT11512STD OPTION 1 WITH 26-28 17,495.00000 157,455.00 TR286 INSULATORS 115KV 1200A ALUM,GRP OP LAM VERTICAL BRK RATED 115 KV (123 KV MAX) 1200A (61 KA MOM) 550 KV BIL; THE SWITCH WILL BE CONFIGURED FOR HORIZONTAL OR VERTICAL MOUNTING, COMPLETE WITH 1-1/2" INTERPHASE ROD, 2" VERTICAL CONTROL ROD, WORM GEAR OPERATED CONTROL MECHANISM, TR-286 INSULATORS, AND ARCING HORNS. 2 9.00 EA AVT11512STD OPTION 2 WITH 26-28 18,490.00000 166,410.00 TR287 INSULATORS 115KV 1200A ALUM,GRP OP LAM VERTICAL BRK RATED 115 KV (123 KV MAX) 1200A (61 KA MOM) 550 KV BIL; THE SWITCH WILL BE CONFIGURED FOR HORIZONTAL OR VERTICAL MOUNTING, COMPLETE WITH 1-1/2" INTERPHASE ROD, 2" VERTICAL CONTROL ROD, WORM GEAR OPERATED CONTROL MECHANISM, TR-287 INSULATORS, AND ARCING HORNS. 3 1.00 EA MISC 10,000.00000 10,000.00 DYNAMIC ANALYSIS HIGH SEISMIC DYNAMIC ANALYSIS TEST FEE FOR 1 STRUCTURE TYPE IS $10,000 ($8000 FOR EACH ADDITIONAL STRUCTURE) NOTE: DRAWINGS AND LEAD TIME MAY BE AFFECTED BY 4-5 WEEKS DUE TO DYNAMIC ANALYSIS TEST ***NOTE: DYNAMIC ANALYSIS TEST NEEDED TO MEET HIGH SEISMIC REQUIREMENT. IF CUSTOMER DECLINES DYNAMIC ANALYSIS TEST, ROYAL TAKES EXCEPTION TO HIGH SEISMIC REQUIREMENT PER IEEE 693.*** Quoted pricing is valid for 15 days and through delivery if ordered at quoted lead time. Orders placed with delivery beyond quoted lead time may be subject to price change if material costs increase more than 5% from date of quote to date of shipment. ROYAL Royal Switchgear M?Ufacturing Company 1 2 jmilling@royalswitchgear.com Royal Switchgear Quote 1/26/2023 10:33:47 AM Royal Switchgear Manufacturing Company 3995 Pine Lane SE Bessemer AL 35022 (205) 426-4090 RYl Sale Amount: 333,865.00 Sales Tax: 0.00 Misc Charges: 0.00 Total Amount: 333,865.00 For Group Operated switch orders that require design work, shipment times are based upon receipt of order with detailed structure information. (Note: Quoted lead times allow for 2-4 week design by Royal and 1 week for customer review of drawings. Any delay in sending structure information or approving drawings may delay shipment.) At least 60% structure drawings are required to move forward with approval drawings. Thank you for your business! Terms and Conditions @ https://www.royalswitchgear.com/terms-of-sale/ ROYAL Royal Switchgear Mqjfacturing Company 2 2 jmilling@royalswitchgear.com Resolution 2023-019 A Resolution of the City Council of the City of Seward, Alaska, Supporting and Requesting the City of Seward Be Re -Established as an Active Port for the Alaska Marine Highway System Documents: • Agenda Statement • Resolution 2023-019 • Attachments: o City of Seward Economic Impact Study of AMHS 2005 o AMHS Economic Impact Study 2016 `11-V City Council Agenda Statement Meeting Date: February 13, 2023 To: City Council From: Janette Bower, City Manager Agenda Item: Resolution 2023-019: Supporting and Requesting the City of Seward Be Re - Established as an Active Port of the Alaska Marine Highway System Background and justification: Seward lost Alaska Marine Highway System (AMHS) service in the fall of 2005. The economic study commissioned by the City Council in 2004 and was released in 2005, showed the loss negatively impacted Seward by $1.8 million annually. Returning AMHS Service to Seward would have a significant positive impact on Seward, the Region, and State. According to the ADOT 2016 Economic Impacts of the Alaska Marine Highway System study conducted by the McDowell Group: • The state -run ferry system generates a return of more than $2 to the state for every $1 invested • The AMHS spent $84 million with over 500 Alaska businesses in 2014 operations and capital expenditures • In 2014, the AMHS carried 319,000 passengers, 108,000 vehicles, and almost 4,000 container vans of freight • Two-thirds of AMHS users are Alaska residents • AMHS is a major transporter for the Alaska Seafood Industry The 2030 Seward Comprehensive Plan 2.2.12.6 states: Support establishment of Alaska Marine Highway System service. Positive impacts: • There continues to be traveler and tourist demand for AMHS out of Seward as evidenced by the amount of calls the Chamber of Commerce receives each year regarding availability and schedules. • It would increase the capacity and reach of the Alaska Rail Road for passengers, vehicles, and freight both incoming and outgoing. • It would create access redundancy for Seward in the case of a catastrophic event such as an avalanche or an earthquake that would disrupt the highway access. • By Alaska State Statute, AMHS vessels are to be repaired in Seward. The return of service would ensure business continues. • It would create stronger ties for the Coast Guard Communities between Kodiak, Valdez, Cordova, and Seward with the incoming Fast Response Cutter and updated base coming to Seward in 2024. • With the Chugachmiut Clinic being built in the coming years, it would create another way to access the clinic for our rural community partners. • It would increase work for local Longshoremen and create more local jobs for both direct and indirect services. IGN Other potential impacts include: • Lower costs of freight for local businesses • Increase business for support services (fuel, supplies) • Increase business for our seafood processors (seafood freight is currently being run on the AMHS to Whittier and Homer) • Increase non -summer visitor traffic of Alaska residents to Seward • Reduced travel costs for student athletics in the Region • Create business and increase commerce opportunities between Seward and other AMHS communities • Open opportunities for more federal funding Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 2.2.12.6 Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ X Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Fund Balance Information Affected Fund (✓): General SMIC x Electric Boat Harbor Parking Water Motor Pool Other Fund Balance/Net position — restricted $ Fund Balance/Net position — unrestricted/unassigned $ Available Unrestricted Cash Balance: ]Wastewater Healthcare Note: amounts are unaudited Finance Director Signature: Attornev Review RxYes Attorney Signature: Not applicable Comments: KIM Administration Recommendation eApprove Resolution Other: Sponsored by: Bower CITY OF SEWARD, ALASKA RESOLUTION 2023-019 A Resolution of the City Council of the City of Seward, Alaska, Supporting and Requesting the City of Seward Be Re -Established as an Active Port for the Alaska Marine Highway System WHEREAS, the 2030 Seward Comprehensive Plan, Goal 2.2.12.6, is to support establishment of Alaska Marine Highway System (AMHS) service; and WHEREAS, the 2016 Alaska Department of Transportation Study conducted by the McDowell Group found that the "state -run ferry system generates a return of more than $2 to the state for every $1 invested"; and WHEREAS, by state statute, Seward is the service port for Alaska Marine Highway Vessels that service the region; and WHEREAS, the restoration of Seward as an AMHS active port would have positive social and economic impacts for both Seward and connecting communities through increased access and commerce; and WHEREAS, the United States Coast Guard connections between Seward, Kodiak, Valdez, and Cordova would be strengthened; and WHEREAS, it would create a transportation system redundancy that would be vital in case of infrastructure failure or natural disaster in the region; and WHEREAS, Seward is expected to have a new Chugachmiut Regional Health Center completed in the coming years which will provide services to various communities and tribal members in South Central Alaska; and WHEREAS, resumption of ferry services would enhance accessibility to this new clinic and additional heath and safety needs; and WHEREAS, the re-establishment of Seward as an active port would overall be beneficial to Seward, the South Central Region, and the State of Alaska as a whole. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Seward City Council hereby supports and requests that the City of Seward be re-established as an active port of the Alaska Marine Highway System. 169 CITY OF SEWARD, ALASKA RESOLUTION 2023-019 Section 2. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of February, 2023. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou, MMC City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 170 Transportation Engineering NorthWest, LLC Economic Impact Study DATE: August 2005 TO: Clark Corbridge, City Manager, City of Seward Kirsten Vesel, Assistant City Manager, City of Seward FROM: Linda J. Snow, Southeast Strategies ` Michael J. Read, P.E., Transportation or s RE: City of Seward Economic and Transportation Impact Study of AMHS Services This report summarizes the results of an economic and transportation study that evaluates impacts to the City of Seward due to the proposed elimination of ferry services by the Alaska Marine Highway System (AMHS) ferry service on Seward and the surrounding community. This analysis has been conducted on behalf of the City of Seward to demonstrate that Seward is a vibrant community and a logical location for the Alaska Marine Highway and outline the significant economic and transportation impacts that would occur if Seward were no longer to have State Ferry service. Summary of Economic Impacts Economic impacts are estimated in terms of jobs, business revenue, and payments by businesses for expenses such as wages and salaries, rents, fees and taxes paid over the year. Information of 2004 business activity came from interviews with businesses in Seward who deal directly with AMHS and rely on AMHS business for a portion of their business revenue. The information obtained from these sources was compiled and evaluated using an economic input/output (IMPLAN) model, designed to fit the Kenai Peninsula Borough's (KPB's) economy, to determine secondary impacts of initial spending in the Seward area. The model can only be narrowed enough to show impacts within the KPB, however, it is likely that most of these impacts take place in close proximity to the City of Seward, with little impact in other areas of the KPB. For purposes of this study, impacts were considered to be within the local Seward area. Expenditures of visitors who use the ferry at Seward are likely more widely spread throughout the KPB. Impacts of AMHS Activity on the Seward Area Impacts in the local Seward area as a result of AMHS activity at Seward are counted in terms of jobs (full-time equivalents), earnings by workers and business proprietors, business revenue, rents, royalties and dividend payments, and local taxes and fees paid. Types of impacts are defined below: ➢ Direct impacts are primary impacts in the local area that are a direct result of AMHS activity at Seward and would not exist without ferry service at Seward. These impacts are created by business activity related to AMHS service at Seward, and by spending on non-AMHS-related businesses by visitors using ferry services at Seward. These impacts include money spent in the local area economy by residents from outside the economy, and money spent by local residents in the Seward area that would be spent outside the area if Seward were not a ferry port of call. City of Seward Economic and Transportation Impact Study of AMHS Services Aug4 t 2005 Page I of 37 ➢ Indirect impacts are secondary impacts created by additional spending in the local area by businesses earning revenue directly from AMHS activity or activity of visitors using ferry services at Seward. These impacts are created from re -spending within the local economy (multiplier effect) of money created from direct impacts. ➢ Induced impacts are secondary impacts created by additional spending in the local area by households who earn income (usually as wages and salaries) directly from AMHS activity or activity of visitors using ferry services at Seward. These impacts are created from re -spending within the local economy (multiplier effect) of money created from direct impacts. Table 1 summarizes the economic impacts of AMHS-activities at Seward on the economy of the KPB. Key findings include: ➢ Total Business revenue of AMHS services at Seward is more than $1.6 million annually. ➢ Total Value Added economic impact in Seward is estimated at nearly $9,60,000 annually. ➢ Nearly 20 full-time jobs within the Seward community are related to AMHS services. ➢ Nearly 60 percent of business revenue earned from doing business with the AMHS at Seward is respent in the Seward economy. Table 1: Summary of 2004 Ferry -related Economic Impacts at Seward Ferry Service Generated Visitor Industry Total Impact Jobs (Full-time equivalent) Direct 5.3 6.7 12.0 Indirect/induced 4.9 2.7 7.6 Total 10.2 9.4 19.6 Payroll and Proprietor's Income Direct $147 301 $141 739 $289,040 Indirect/induced $182 076 $97 993 $280 699 Total $330 007 $239,732 $569,739 Average Annual Income/Direct Job $27,019 $16,942 Business Revenue $1 052 966 $568 723 $1 621 688 Rent, Royalties and Dividends $252,059 $76,321 $328 380 Local Fees and Taxes $23 602 $37 599 $61 202 Value Added (retained) $605 668 $353,652 $959,321 Percent Retained Business Revenue 57.5% 62.2% 59.5% Sources: Southeast Strategies, 2005. Additional Economic Impacts Shippers not based in Seward but that use AMHS services at Seward, and businesses that receive shipments through Seward AMHS service were also interviewed about their 2004 business activity dealing with AMHS. While it is beyond the scope of this study to contact every non -Seward business using ferry service at Seward for impact estimates, several of City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page1226f 37 these businesses were interviewed. Attempts to obtain specific traffic figures from AMHS were unsuccessful, and although shippers provided good estimates of additional costs per vehicle shipped, we were unable to fully quantify the total impacts. Communities receiving AMHS service connecting to Seward were also interviewed about use of that service. This report contains discussions of information obtained from those interviews. Impacts of ferry service at Seward reach beyond the Seward city limits. Additional impacts accrue to shippers and their customers, residents of communities with connecting ferry service, and ferry vessel employees working on these routes. While it is not possible to fully quantify these impacts, they can be discussed in general. Discussions with shippers, vehicle transporters and their customers revealed the following: ➢ The highway round trip between Anchorage and Homer adds about 4 hours driving to the trip between Anchorage and Seward. The extra time adds costs from increased fuel use, and increased personnel costs. The longer time also reduces the number of trips that can be made in a day. ➢ Using Homer as a ferry port of call instead of Seward reduces the cost of the ferry fare, but not enough to offset the increased costs of highway travel. ➢ Using Whittier as the cross gulf service port of call instead of Seward reduces highway travel time and costs for some trips. However, Whittier Tunnel operations, tolls, and very limited upland facilities limit this route as an alternative service for cross gulf trips. ➢ Lack of uplands for car delivery, services for loading and unloading of cars, and time delays because of the tunnel toll makes the port of Whittier undesirable for shipping and vehicle transport companies to use. Consequently, some vehicle transport companies indicated they may use highway and barge service rather than ferry service at Whittier in the future. Discussions with retail establishments and community representatives in communities with connecting ferry service to Seward revealed the following: ➢ Kodiak and Aleutian Chain communities like Homer as a ferry port of call because it is a shorter trip, and if Seward is eliminated, the ferry can turn quicker and offer more service to their communities. ➢ While Kodiak receives a lot of commercial shipments via ferry, Aleutian Chain communities receive very little. ➢ Residents on personal trips from Kodiak and the Aleutian Chain are usually going to Anchorage to shop. Although the ferry trip to Homer is slightly shorter and less expensive than going to Seward, the highway portion of the trip is longer and costlier. The increased highway costs to drive from Homer to Anchorage outweigh the savings in ferry fare and travel savings on the ferry. Discussions with ferry crew members and other knowledgeable parties in Seward revealed the following: ➢ Several ferry crew members travel to Seward from Anchorage and areas of Alaska other than Seward for weekly crew changes. If the crew changes were to be made in Homer, the trip to work would be much longer and costlier. ➢ Several ferry crew members live in Seward, and are often able to go home for an hour to visit their families when the ship is in port. If the port of call changes to Homer, that City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Pagel3�if 37 will not be possible. Several crew members stated they would consider moving from Seward if the ferry no longer stops there. Summary of Transportation Impacts Table 2 summarizes estimated direct user costs impacts associated with existing travelers using the Seward AMHS services. As shown, an additional $189,408 would be spent by annually by standard passenger and vehicle travelers using AMHS services currently provided at Seward. Based upon telephone surveys completed as part of this study, an additional $40,675 would be incurred in increased direct travel costs not included in the economic impacts identified previously. In total, increased direct user costs are estimated at a minimum of approximately $230,000 annually to current ferry travelers on AMHS services at Seward. Table 2: Estimated Annual AMHS Traveler Direct User Cost Impacts if the Ferry stops in Homer rather than Seward Major Travel Corridors 2003 Annual Passengers 2003 Annual Vehicles Travel Time Costs Change In Driving Costs Change in Direct Fares Net Change in Annual User Costs Seward o Soutnwest, Seward o cross Gult, lAnchoragelutners to southwest , c orage ers to Cross GuIr 1 402 7 1 1 wtv 1 3,, , Net Annual Increase in Direct User Costs $ 189,408 Note: These figures consider changes in travel time and direct travel expenses only, and do not consider other such factors as changes in system demand or service frequency. Total Impact When considering direct user, and direct, indirect, and induced economic impacts, over $1.8 million in total economic and transportation impacts are estimated to Seward and the surrounding communities as a result of AMHS's proposed termination of ferry services at Seward. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page144of 37 Existing Conditions Assessment This section documents available historical information on socioeconomic conditions and transportation access within and through the Seward community as part of the Seward AMHS Trans iortation and Economic Impact Study. As part of this effort, economic and transportation telephone survey research was conducted involving key community stakeholders. The results of the survey were incorporated into the evaluation of. impacts. Socioeconomic Profile of Seward The City of Seward was founded on the east coast of the Kenai Peninsula when workers on the Alaska Railroad terminus settled there. Resurrection Bay's ice -free harbor made Seward an essential port for transshipment of goods via rail to and from Interior Alaska, and it grew to be the largest city on the Kenai. The railroad terminal was destroyed by a tsunami from the 1964 earthquake, and although the terminal was rebuilt, Seward was never able to regain its status as the transportation gateway to Southcentral Alaska. Seward is connected to Anchorage (127 miles north) and the Alaska Highway system by the Seward Highway. The Alaska Railroad delivers cargo pear round and passengers seasonally to the City of Seward, and cruise ships, cargo vessels, and the state ferry call at the Port of Seward. Seward has an airport with two runways. The 2004 estimated population of the City of Seward was 2,540, about 20 percent of which is Alaska Native. Seward's Native population is active and important as reflected by the millions of dollars invested in the community each year by Chugach Native Corporation and CIRI. Population growth within the census subarea which includes Seward has been slightly greater than the growth of the City itself, with nearly 800 new residents since 1990, for an estimated total of approximately 5,453 residents in 2004. Bear Creek is the second largest community in the census subarea, with an estimated 2004 population of 1,897. Table 3 shows population growth of the Seward Census Subarea since 1990. Census 2000 data indicates that the median age of Seward residents is about 37 years, and about 620 residents (about 22%) are under 18 years old. About 9 percent of Seward residents (253) were aged 62 and older in 2000. In 2000, the average household size in Seward was 2.4 persons, and 86.7 percent of residents were high school graduates. In that year, the annual median household income for the City of Seward was $44,306, and the average per capita income was $20,360. Just over 10 percent of the population lived below the poverty level. Also in 2000, nearly 28 percent of the wage and salary jobs were with government entities, and 10 percent of workers were self-employed. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 576f 37 Table 3: 1990-2004 Population of Seward and Surroundinq Area Year Seward -Hope Census Subarea % Change 1990 4,662 -- 1995 5,105 -- 2000 5,590 -- 2001 51696 1.9% 2002 5,708 0.2% 2003 51601 -1.9-IV 2004 5,453 -2.676 14-Year Average 1.1% Source: State Demographer's Office, Alaska Department of Labor and Workforce Development Economic Activity Seward has a diversified economy. Economic sectors with some presence in Seward include tourism, commercial fishing and fish processing, shipbuilding and repair, transportation, and government. The visitor and fish processing industries located in the area lend a strong seasonality to the local economy. Gross sales in Seward between 2000 and 2003 showed an average distribution over calendar quarters as follows: first quarter = 14.2 percent; second quarter = 29.1 percent; third quarter = 40.3 percent; and forth quarter = 16.4 percent. General economic conditions in Seward have been favorably positive during the past 10 years, with 10-year gross sales increase of over 66 percent between 1994 and 2004, from approximately $100 million to over $166 million. Other key indicators and recent economic conditions include: ➢ Recent construction of a new Safeway store, the newest in the Northwest. ➢ Home rule City since 1960, providing maximum local self-government. ➢ Lowest property tax rates in the State stable for the last 20 years. ➢ Diverse fishing cod, halibut, and salmon all fished commercially (i.e. Fourth of July - Mount Marathon Race and the Salmon Derby). ➢ Regional, national, and international annual events. ➢ Gateway to the Kenai Peninsula due to its location, excellent transportation linkages, and the wide variety of visitor services and attractions within the Kenai Fjords National Park. ➢ Seward is the only port on the Kenai that has both shipyard repair facilities and an ice -free harbor. ➢ Intermodal facilities of rail, marine, air, and highway connections. The following analysis addresses the major economic sectors in Seward. Information for this analysis came from examination of available economic trend data and telephone interviews with business and community leaders in Seward and around the region. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 6�,6f 37 Tourism Tourism has been a strong economic sector in Seward. The beauty of the area, proximity to visitor attractions, and great sport fishing opportunities, has also contributed to a strengthening tourism sector in the area. It is the center for the Kenai Fjords National Park, and visitors travel to Seward to visit the park, Exit Glacier, the Alaska SeaLife Center, and other attractions. Local activities such as the Mt. Marathon Race and Fourth of July festivities, the Seward silver salmon and halibut derbies also attract visitors from the regional and around the world. In 2004, the Kenai Fjords National Park attracted an estimated 244,232 visitors. In the same year, nearly 125,000 visitors traveled to Seward via cruise ship. About 22,000 people traveled to Seward by railroad, and about 317,500 people traveled to Seward by highway in 2003. Total annual visitor trips to Seward in 2004 were estimated at just over 720,000 people by the Seward Chamber of Commerce. 2004 visitor trips to other major attractions in the community include approximately 134,600 to the Alaska SeaLife Center and 124,800 to Exit Glacier. Seward has about 460 hotel rooms, and about 73 bed and breakfasts, most with multiple rooms. The summer of 2004 found local accommodations business up about 10 percent from the prior year. Local business owners say that 2002 was a good year because travelers stayed within the U.S. for their vacations. Visitor traffic slowed some in 2003, but increased again in 2004. Independent visitor traffic has continued to increase each year. The harbor's 550 slips are full of boats. There is a 400+ boat waiting list for slips and a harbor expansion is being planned. Many of the boat owners renting slips are residents of other areas of the state who travel to Seward to go boating. In 2004, nearly 130 charter -fishing boats were licensed to operate out of Seward, although not all of those boats call Seward their homeport. Visitors entering the Kenai Fjords National Park (headquartered in Seward) have increased from 135,859 in 2000 to 244,232 in 2004. A waterfront multi -agency building with room for the Chamber of Commerce, the Kenai Fiords National Park headquarters and the US Forest Service is being planned and construction should begin by 2006. Seward is a terminus port for cruiseships visiting Alaska. Approximately 52 cruise ship dockings occurred in 2004, bringing approximately 125,000 visitors through Seward. An additional cruise line has started making port calls to Seward in 2005, increasing these levels from 2004. Disembarking tourists board buses or trains to travel to the Anchorage International Airport, while incoming visitors are bused or trained down from Anchorage to embark on their cruises. A new train terminal at the Anchorage International Airport makes this system even more convenient. Fisheries and Fish Processing In 2003, 66 Seward residents held commercial fishing permits and 106 residents held crew licenses. Forty-one Seward residents fished commercially in 2003, and caught over 5 million pounds of fish for a value of about $6.4 million. Prices were reported to be up in 2004. Seward has four large commercial fish processors and several small processors. One local processor stated they were expanding in some areas and that their halibut, sablefish and other bottom fish market was strong, although the market for salmon {the largest portion of City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 77of 37 their processing business by weight) is not as good. The largest processor, Icicle Seafoods, was the 6`" largest employer in Seward in 2003 with an annual average of 90 employees. Although fish processing tends to be seasonal, it does provide some high -paying year-round jobs. The City of Seward received $275,345 for its share of fish landing taxes in 2002. Transportation The transportation sector brings goods and visitors to Seward via rail, highway and oceangoing vessel. Although most of the transshipment of goods to interior Alaska now occurs at the Port of Anchorage, some shippers use Seward, especially when ice is present in Cook Inlet near Anchorage. Coal exports from the Port of Seward resumed in the fall of 2003, with rail cars bringing the coal into Seward from the Usibelli mine in Interior Alaska for transfer to ships. The Alaska Railroad has a maintenance station at Seward. Alaska Railroad representatives were not able to provide information about the tonnage of freight at Seward that actually had Seward as an origin or destination from the tonnage of freight that was transshipped through Seward. Transshipment includes goods brought in by sea and transferred to train for shipment to other parts of Alaska, or brought in by train from other parts of Alaska and transferred to marine containers for shipment out. This generally occurs when ice builds up in Cook Inlet and marine vessels are unable to reach the Port of Anchorage. Freight tonnage on the dock at Seward was 4,202 tons in 2001, 14,876 tons in 2002, and 29,344 tons as of July 2003. This tonnage does not include fuel and some other freight transferred by rail to Seward. Some of this increase may be attributable to significant capital improvements at the Seward railroad dock, and a new dock manager who helps with marketing. One major fuel wholesaler ships fuel to Seward via rail. Government Seward has a strong government sector, accounting for about a third of the employment in the area. In addition to the City government and school district office, the Spring Creek correctional facility, the Alaska Vocational and Technical Center, the University of .Alaska's Institute of Marine Sciences, the headquarters for the Kenai Fjords National Park, the Alaska SeaLife Center, and an office of the U.S. Forest Service are located in the Seward area. Seward's top five employers are government agencies. Government jobs in Seward are high paying, with a 2003 monthly average wage of $3,247, compared to a $2,452 per month average for all industries. Other Industries Shipbuilding and repair is also an important business sector in Seward. The community has 50-tan and 250-ton moveable boat lifts, a 5000-tan Syncrolift, a marine surveyor, and several marine repair shops and support businesses. An Anchorage consulting firm is seeking funding to conduct feasibility studies of a laminated veneer plant to be located in Seward, and a fiberboard plant to be located in the central Kenai Peninsula. Seward is a strategic location due to available property at tidewater and close to the rail line. These plants would process timber from interior Alaska. If built, the Seward plant would create about 200 local jobs. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 876f 37 Employment and Earnings Table 4 presents Alaska Department of Labor data for average annual employment by industry in the City of Seward. This information can be somewhat misleading because self- employed people such as commercial fishers and sole proprietors of small businesses (such as bed and breakfasts) are not counted here. Also, the figures reported are average annual employment and do not show the seasonal changes in employment. In addition, they count the number of jobs, not the number of individuals working, so if a person held two or more jobs throughout a year, he would be counted here more than once. Table 2 also indicates that employment levels within Seward almost equal to its population. That is because jobs are counted where they are located, not where the worker lives. It is likely that many of the people who work in the City of Seward live outside the city limits in the surrounding areas. Table 4: 1990 —1999 Seward Area Annual Average Employment by Industry Industry 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Mining NA NA NA NA 0 0 0 0 0 0 Construction 63 54 20 38 31 60 100 110 93 85 Manufacturing 312 334 239 298 259 229 168 143 230 250 Trans., Comm., 8t Utilities 106 1 118 129 147 1 149 149 162 1 190 218 300 Trade 266 323 378 318 334 324 349 377 412 393 Finance, Ins., R.E. NA NA NA NA 22 22 21 24 23 22 Services 8t Misc. 223 242 284 346 366 338 363 340 404 429 Ag., Forestry, a Fishing 135 173 353 342 3 2 1 1 1 1 Government 626 586 604 602 604 652 660 617 656 653 Federal 46 48 50 51 52 54 63 62 90 95 State 416 369 378 371 364 367 371 366 377 364 Local 164 170 176 181 188 231 226 189 189 194 Total Employment 1,753 1,851 2,029 2 111 1 767 1,777, 1,824 1,802 2,037 2,133 Source: Alaska Department of Labor and Resource Development, Research and Analysis Section. Notes: 1999 Local Government figure assumes school district employment is at the same level as 1998. Totals may not add due to rounding. NA indicates that the number is not available for confidentiality reasons. In 2000, national standards for grouping employment by industry changed, so information from later years is not comparable to prior information. Table 5 presents employment by industry for the City of Seward in 2002 and 2003. Although total employment is comparable with earlier years, employment in many of the industry categories is not. Table 5: Seward Area Employment by Industry in 2002 and 2003 Industry 2002 2003 Total Employment 2 134 2,310 Agriculture, Fisheries, Forestry - 8 Mining 9 11 Construction 86 73 Manufacturing (mostly seafood processing) 206 252 Wholesale Trade 42 42 Retail Trade 190 203 Transportation Si Utilities 208 162 City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 97of 37 Information 10 10 Finance Insurance & Real Estate 45 52 Business Services 18 14 Health Education 8i Social Services 167 144 Hospitality 245 326 Leisure 118 138 Other Services 89 103 Government 701 774 Source: Alaska Department of Labor and Workforce Development, Transportation Access Highway Access In addition to air travel, Seward can be reached by several other modes of transportation. The community is located on the Seward Highway, approximately 126 miles from Anchorage. Table 6 shows annual highway traffic passing Moose Pass between 1990 and 2003. Moose Pass is on the next community north on the highway to Anchorage, so this permanent count location provides an excellent indication of highway demand to the Seward community. Overall, traffic has increased by an average of 2.2 percent per year since 1990. Table 6: 1990 - 2003 One Wav Vehicle Traffic Through Moose Pass Year Average Annual One -Way Daily Traffic Total Annual Traffic 1990 663 241 995 1995 766 279,408 2000 831 303133 2001 820 299,300 2002 809 295,285 2003 870 317,550 Source: Alaska Department of Transportation and Public Facilities. Passenger/Vehicle Ferry Service Seward is also a year round port of call for the Alaska Marine Highway System. Table 7 summarizes ferry traffic (both passengers and vehicles) into and out of Seward between 1990 and 2003. In 2003, both the M/V Kennicott and M/V Tustumena served the Seward community, providing connections to Southwest Alaska communities along the Alaskan Peninsula and to Prince William Sound/Southeast Alaska. Table 7: 1990 - 2003 Historical AMHS Ferry Traffic to and from Seward Year Passengers Embarking Passengers Disembarking Total Passengers Vehicles Embarking Vehicles Disembarking Total Vehicles Vessel Departures 1990 3,171 3,077 6,248 1,179 11123 2,302 44 1991 791 862 1,653 506 607 1,113 38 1992 2,939 3,237 6,176 1,281 1,267 2,548 66 1993 3,317 3,289 6,606 1,355 1,385 2,740 60 1994 21574 2,570 5,144 1,112 1,095 21207 52 1995 2,492 2,378 4,870 1,127 1,151 2,278 51 1996 2,545 2,593 5,138 1,079 1,141 2,220 55 City of Seward Economic and Transportation impact Study of AMHS Services August 2005 Page Woof 37 1997 2,819 2,750 5,569 1,289 1,230 2,519 69 1998 3,437 3,357 6,794 1,503 1,433 2,936 72 1999 4,044 3,638 7,682 11831 1,622 3,453 86 2000 3,746 4,044 7,790 1,706 1,697 31403 84 2001 31641 3,773 7,414 1,797 1,621 3 418 90 2002 3,625 3,986 7,611 1,711 1,752 3,463 72 2003 3,844 4,653 81497 1,825 1,935 3,760 76 Source: Alaska Marine Highway System Traffic Volume Reports. In 2003, approximately 8,500 passengers and 3,760 vehicles arrived or departed on AMHS services at Seward. There was an approximate 50/50 split of this ridership between the M/V Kennicott and M/V Tustumena. The year 2003 recorded the highest ridership levels of both vehicle and passenger traffic to/from Seward although overall levels of service (measure by total vessel departures) was reduced back to levels provided in 1998. In fact, since 1991, total annual boardings have been reduced by approximately 15 percent, while ridership levels have increased between 10 and 15 percent for vehicle and passenger traffic, respectively. Ecotourism has enjoyed historical success in Seward, including previous ecotours provided by the US Forest Service on AMHS vessels at Seward. Significant increases in ridership on Seward AMHS routes were experienced over those levels cited recently in this report. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 1 t1of 37 Table 8 provides approximate travel times between Seward and other major communities currently provided in Southcentral Alaska. A comparison is also provided of travel times between Southwest Alaska communities and Anchorage via Seward and Homer. As shown, approximately 4 hours in travel times is required for AMHS service via Horner compared to Seward. Table 8: Travel Time Comparisons in Seward Vicinity AMHS Travel Times Highway Travel Times From To (Approx.) (Approx. at 40 mph Speed) 2.5 hours (91 miles) plus Seward Cordova 11.0 hours 7•0 hours via AMHS 9.5 hours + 1 hour terminal transfers Total = 10.5 hours Seward Valdez 11.0 hours 12 hours (430 miles) Seward Kodiak 13.25 hours Not Applicable Homer Kodiak 9.5 hours Not Applicable Kodiak Anchorage 13.25 hours 2.25 hours (55 mph @ 126 miles) via Seward Kodiak Anchorage 9.5 hours 5.25 hours (226 miles) via Homer Source: Alaska Marine Highway System and TEN W. Rail Service In addition, Seward is the southern terminus of the Alaska Railroad and receives year-round cargo and seasonal passenger service to Anchorage and beyond. Table 9 provides recent historical railroad passengers embarking at Seward and charter train traffic (embarking and disembarking) at Seward from 1999 to 2004. Some rail cars are chartered by cruiselines and are not available to the general public. City of Seward Economic and Transportation Impact Study of AMHS Services August 2,005 Page Mif 37 Table 9: 1999 — 2003 Alaska Railroad Passengers from Seward to Anchorage Year Embarking Passengers Embarking st Disembarking Charter Passengers 1999 11,348 0 2000 12,525 6,119 2001 13,282 31,701 2002 14,678 34,863 2003 16,168 39,391 2004 N/A 38,472 Source: Alaska Railroad Corporation. Note: Although a directional breakout of charter passengers is not available for most years, in 2003, about 60% of the charter traffic traveled from Seward to Anchorage, and 40% traveled from Anchorage to Seward. Historic Air Service The majority of Seward intercommunity air traffic is flights to and from Anchorage. Historically, scheduled and charter service was provided by small, mostly twin engine planes. The flight takes about 35 minutes. ERA Aviation, FS Air, and Scenic Mountain Air flew fixed -wing charters to and from Seward in 2003. Many of the summer charters were hired to bring baggage or stragglers in or out of Seward for the cruiselines. FS Air flies medivacs one to two times a month. Several companies flew tours out of Seward in 2003. Scenic Mountain Air flew summer tours in Cessna 172 and 206 planes. They flew about three one -hour tours per day in the summer of 2003, and averaged about 2.5 passengers per flight. They also flew occasional charters. Godwin Glacier Tours has a hanger across the street from the airport where they base two Eurocopters in the summer season. They averaged five or six tours per day during their 100- day summer 2003 season, and carried two or three passengers per tour (about a 40 percent load factor). Next summer they may take their operations off of the airport to a piece of land about a mile away, which they leased from the State of Alaska. ERA Aviation began flying local helicopter tours during the 2003 cruiseship season using A -Star helicopters. During the summer of 2003 they based two or three helicopters at Seward for those tours. Godwin Glacier Tours and ERA Aviation both provide charter service with their helicopters, mostly during the summer season. Scheduled Air Service Table 10 presents historic passenger, mail and cargo traffic on scheduled commercial air carriers at Seward between 1992 and 2002. There is no visible trend in enplanements at Seward. Enplanement numbers appear to react quickly to external forces, likely because City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 1-13)f 37 there are many other modes of transportation to and from the Seward. Statistics in Table 9 excludes scheduled helicopter traffic and charters by fixed -wing aircraft and helicopters. Table 10: 1992-2002Commuter Passenger, Mail and Cargo Volumes (in pounds) Enplaned Passengers Outbound Cargo Outbound Mail Inbound Cargo Inbound Mail Total Mail/Cargo Year 1992 11055 16,709 0 35,815 0 53,579 1993 91 1,328 0 1,723 0 3,142 1994 1,133 2,013 0 5,140 0 8,286 1995 565 1,339 0 7,707 0 91611 1996 678 943 3 5,271 8 6,903 1997 1,196 167 25 4,355 5,264 11,007 1998 1,161 1 1,037 1 14,461 10 16,670 1999 566 1,776 0 8,274 0 10,616 2000 509 2,569 0 11,558 2,200 16,836 2001 328 390 0 1,008 0 1,726 Soun;e: U.S. DOT, Bureau of Transportation Statistics, Small Air Carrier Information Form 289C, Schedule T-1. *The only tamer providing scheduled service stopped that service in July of 2002. The 2002 enplanement data came directly from that carrier. The huge annual differences in cargo and mail carried in the past the ten years is likely because special circumstances for a particular project or occurrence required one-time or short-term air shipment of goods or mail. Cargo and mail are most frequently shipped via highway or railway. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 11"f 37 Charter Traffic (fixed -wing and helicopter) Fixed -wing aircraft charter traffic information was obtained from USDOT statistics and confirmed by the air carriers. Charter flights are currently used mostly in the summer cruiseship season to bring baggage and stragglers in or out of Seward for the cruiselines using the port. Charters are also used for medical evacuations. One carrier who -frequents Seward is approved for Department of Defense charters for operations dealing with security and safety. Table 11 presents fixed -wing charter enplanements at Seward for 1995 through 2002. Fixed -wing charter traffic has declined in recent years. Table 11: 1995 — 2002 Fixed -wing Charter Traffic at Seward Year Enplaned Passengers 1995 50 1996 131 1997 197 1998 72 1999 647 2000 585 2001 377 2002 160 Source: U.S. DOT, Bureau of Transportation Statistics, Small Air Carver Information Form 289C,Schedule E-1. Helicopter charters also occur at Seward and provide medivac, remote equipment servicing and other service on demand. Enplanements and operations for charter helicopter traffic are not collected by the USDOT so these estimates were developed from interviews with the air carriers and other knowledgeable parties. One helicopter operator estimated that his company performs about 10 to 15 charters per month at Seward during the summer season. Another operator performs a few charters a month in summer also. Helicopter charter traffic slows in winter, although charters may occur when fixed -wing planes cannot get through the mountain passes between Anchorage and Seward. Tour Traffic (fixed -wing and helicopter) Three operators provided tours from Seward in 2003. Two carriers operate with helicopters, and one with fixed -wing planes. Tours are of the local area and occur during the summer season, between May and September. USDOT does not collect enplanement or operations data from tour operators so estimates of this traffic was developed from interviews with the air carriers and other knowledgeable parties. The only fixed -wing tour operator has decided to pull out of Seward after the 2003 summer season. 2003 was the first year for tours in Seward by one of the helicopter operators. The other helicopter tour operator has applied for a permit from the Chugach National Forest for 1,200 glacier landings (3,200 client days) on the Godwin Glacier in 2004. This request constitutes a large increase over this company's traffic in 2003. The same company is requesting an increase in allowable glacier landings in 2005 to 1,500 (4,000 client days). City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page lftf37 Economic Impact Analysis This section summarizes impacts of AMHS ferry service at Seward on the economy of Seward and the surrounding Kenai Peninsula Borough (KPB) for 2004. It estimates the monetary impacts and number of jobs that result in the local area from businesses engaged in ferry service activity at Seward. It also identifies impacts to the local economy of spending by visitors who use ferry service at Seward. These are impacts that would not be felt in the Seward area if Seward were not a ferry port of call. Ferry activity at Seward brings money into the Seward economy from outside of the area, and captures money from local residents that would be spent outside of the Kenai area if Seward were not a ferry port of call. A presentation of applied methodologies to estimate the impacts of ferry service on Seward is followed by an overview of economic impact from ferry activity at Seward on the surrounding economy. Methodology In order to determine the 2004 impact of ferry service at Seward on the economy of Seward, Southeast Strategies followed the methodology outlined here. The most current full year of information available for all variables considered for these estimates was used to capture as close to a current (2004) estimate as possible. All Seward businesses determined to be directly impacted by ferry service in Seward were interviewed about that impact. These businesses include shipping companies and businesses that provide goods and services to the ferry system at Seward. They also include businesses in Seward that serve AMHS crew members. Information was also gathered about AMHS employment and expenditures for their operations at Seward. The information gathered from these business interviews and from interviews with knowledgeable parties was compiled. Business owners estimated the amount of their business in 2004 that was related to AMHS at Seward. Income and employment for those businesses were weighted accordingly and only employment and income that was directly attributable to ferry business was used for the impact analysis. The finalized employment and income information was then evaluated using a well known economic input/output (IMPLAN) model calibrated to fit the KPB's economy to determine secondary impacts of initial spending in the Seward area. The IMPLAN (IMpact Analysis for PLANning) model is a community and regional level input/output model initially developed by the U.S. Forest Service in cooperation with the Federal Emergency Management Agency, and the U.S. Department of the Interior, Bureau of Land Management to assist the Forest Service in land and resource management planning. The model uses census area level data about employment, income, and various other indicators to determine how direct economic impacts will produce multiplier affects (indirect and induced economic impacts) within the KPB. The model uses census area level data about employment, income, and other indicators to determine how direct economic impacts will produce multiplier effects (indirect and induced economic impacts) within the KPB. The IMPLAN model can only be refined to show City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 116bf 37 impacts within the census area (which coincides with the boundaries of the Kenai Peninsula Borough), and cannot be narrowed to show impacts within the City of Seward boundaries. However, it is likely that most of these impacts take place in close proximity to the City of Seward, with little impact in other areas of the KPB such as Kenai and Homer. For purposes of this study, impacts will be considered to be within the local Seward area, although some Borough taxes and fees paid as part of this economic activity impact the entire KPB. Expenditures of visitors who use ferry service at Seward are likely more widely spread throughout the KPB. The IMPLAN model is detailed enough to address industries individually within a local area. Survey responses were compiled by type of industry and that information was run separately through a model specific to that industry within the KPB. Results for each industry type were then compiled to get the aggregate impacts presented here. In addition to annual impacts created from businesses related to ferry service in Seward, an estimate of annual spending in the KPB by visitors to Seward arriving or leaving by ferry was developed through the following methodology. The local ferry terminal manager provided an estimate of percent of ferry traffic attributable to visitors in 2004. That percentage was applied to the 2003 count of ferry passengers embarking and disembarking at Seward (the latest full year of data available), to estimate the number of visitor using that ferry port of call. The estimated number of visitors using ferry service at Seward was applied to average estimates of visitor spending on items other than transportation to obtain total direct impact of those visitors (2001 estimated expenditures updated to 2005 dollar amounts). The information was also fed through the IMPLAN model to obtain secondary impacts of this spending. The IMPLAN model calculated direct, indirect, and induced impacts on the KPB economy of ferry -related spending of industries surveyed and visitors using the ferry at Seward in 2004 in terms of: ➢ Employment; ➢ Wages and Salaries; ➢ Business Revenue; ➢ Rents, Royalties and Dividends paid; and ➢ Fees and Taxes paid. Types of impacts are defined below: Direct impacts are primary impacts in KPB that are a direct result of ferry activity at Seward and would not exist if Seward did not receive ferry service. These impacts are to businesses such as the ferry terminal in Seward, freight haulers, and ferry support businesses. Direct impacts also include primary impacts created as a direct result of activity by visitors using the ferry at Seward, and include impacts to non -ferry related businesses such as hotels, restaurants, gift shops and other visitor -related businesses. These impacts count money spent in the KPB economy by residents from outside the economy, or money spent by local residents in the Seward area which would be spent outside the Seward area if they did not receive ferry service. Indirect impacts are secondary impacts created by additional spending in KPB by businesses earning revenue directly from ferry activity or activity of visitors using ferry City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page lg7of 37 services at Seward. These impacts are created from respending within the local economy (multiplier effect) of money created from direct impacts. Induced impacts are secondary impacts created by additional spending in KPB by households who earn income (usually as wages and salaries) directly from ferry activity or activity of visitors using ferry services at Seward. These impacts are created from respending within the local economy (multiplier effect) of money created from direct impacts. While an attempt was made to survey all businesses which derive income from ferry service at Seward, a few may have been missed. Therefore, these impact estimates should be considered a minimum level. Similarly, visitor expenditures were estimated on the assumption that each visitor using the ferry at Seward spends only one night in the KPB. It is unlikely that the average stay for visitors is as low as that, so the visitor impacts are also likely underestimated and should be considered a minimum level. And finally, we should note that the interviews that provide much of the information for this study were done in spring of 2005. As fuel cost is a large element in the cost of transportation alternatives, the costs presented in this report will change with the cost of fuel. In early May of 2005, retail price of unleaded gasoline in Seward was about $2.44 per gallon, and the price of diesel was $2.55 per gallon. Economic Impact of the Ferry Service at Seward The 2004 economic impact of the ferry service at Seward was estimated by obtaining income and employment information from all ferry -related businesses in Seward, including operations of the ferry terminal. Expenditures of visitors using the ferry at Seward for 2003 (latest available data) were also estimated using published data sources and interviews with knowledgeable parties. Adjusted survey information was then processed through the IMPLAN economic model to determine initial (direct) and secondary (indirect and induced) economic impacts of ferry service on the Seward area in 2004. While every attempt was made to identify and survey all Seward area businesses which benefited directly from ferry activity at Seward, a few businesses may have been missed, so these projections should be considered a minimum level of impacts. In addition, estimates of visitor expenditures were conservative, and those estimates should also be considered a minimum level of impacts. Table 12 presents a comprehensive look at these impacts. Each segment of this comprehensive table will be reviewed in subsequent pages of this section. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 4fiof 37 Table 12: 2004 Economic Impacts of Ferry Service at Seward Ferry Generated Visitor Industry Total Impact Business Revenue Direct $583 624 $328,962 $912,586 Indirect $143 012 $61 622 $204 635 Induced $326329 $178 138 $5041467 Total $1 052 966 $568 723 $1 621 688 Jobs (Full-time equivalent) Direct 5.3 6.7 12.0 Indirect 1.1 0.6 1.7 Induced 3.8 2.2 6.0 Total 10.2 9.4 19.6 Payroll and Proprietor's Income Direct $147 301 $141 739 $289 040 Indirect $43 002 $18 086 $61 088 Induced $139,704 $79 908 $219 612 Total $330,007 $239 732 $569 739 Rent Royalties and Dividends Direct $173 220 $29 582 $202 802 Indirect $26 790 $14,564 $41 354 Induced $52 049 $32,174 $84 223 Total $252 059 $76 321 $328 380 Local Fees and Taxes Direct $2 793 $24 815 $27 608 Indirect $5 878 $3 552 $9 430 Induced $14 931 $9 232 $24 163 Total $23 602 $37 599 $61 202 Total Value Added Direct $323 314 $196136 $519 450 Indirect $75,670 $36,202 $111,872 Induced $206 685 $121314 $327 998 Total $605 668 $353 652 $959 321 Percent retained locally 57.5% 62.2% 59.5010 Source: Southeast Strategies, 2005. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 19bf 37 The following economic impacts were quantified in various expenditure categories: ➢ Business Revenue — This is the value of the business's total production. Some of this revenue will be spent locally on payroll, rent, taxes, and other expenditures, while some of the income will leave the local economy. Total business revenue impact of AMHS services at Seward is estimated at more than $1.6 million annually (2004 dollars). ➢ Value Added — This is the amount of business revenue that remains in the local area economy as payments to employees and business proprietors, for rents and leases, and for local tax and fee payments. Much of this money will be respent in the local economy to create indirect and induced economic impacts. Total value added direct economic impact in Seward is estimated at nearly $960,000 annually. ➢ Full-time Equivalent Jabs — These are jobs created by business activity related directly or indirectly to ferry activity. Jobs are counted as the equivalent of full-time, year round jobs. Even though some of the jobs created by ferry activity at Seward may be part time or seasonal, they are combined here and counted as full-time equivalents in this report. Approximately 20 full-time jobs within the Seward community are related to AMHS services. ➢ Payroll and Proprietors' Income — This category of impacts includes wages and salaries paid to employees as a result of ferry -related activity, as well as payments received by self-employed individuals as income. ➢ Rents, Royalties and Dividends — This category of impacts (also called Other Property Type Income) accounts for lease and rent payments, royalties and dividends that are paid by impacted businesses within the Seward area economy. ➢ Local Fees and Taxes — This category of impacts (also called Indirect Business Taxes) accounts for sales (City and Borough), property and other local taxes paid, as well as local fees and commission paid within the KPB economy. While construction projects impacts of the ferry terminal at Seward are not analyzed in this report, it should be noted that future improvements and upgrades to the terminal area will greatly increase annual impacts to the Seward area during the years they are being built. The final row of Table 12 represents the percentage of business revenue that is spent locally as Value Added (for payroll, rents, fees and taxes) through direct (primary) impacts. As shown in 2004, this represented approximately 60 percent of all direct impacts to the Seward economy. Additional business revenue will be spent in the local economy as a result of indirect and induced (secondary) impacts. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 20oof 37 The following tables provide additional definition and summary of the various expenditure categories and economic impacts in the Seward area. Economic Impacts of Ferry Activity Table 13 presents the direct and secondary impacts of ferry activity in the Seward area in 2004. While every attempt was made to identify and survey all Seward area businesses that benefited directly from ferry activity at Seward, a few businesses may have been missed, so these estimates should be considered a minimum level of impact. These impacts include operations of the ferry terminal at Seward, and all operations expenditures in Seward by the AMHS in 2004. Businesses directly engaged in ferry -related activity in the Seward area earned minimum revenue of $538,624 in 2004. Total impacts on business revenue from ferry activities were at least $1,052,966, and employment impacts from ferry activity at Seward equaled at least 10.2 full-time equivalent jobs in that year. Table 13: 2004 Ferry -Related Business Impacts at Seward Economic Measure Direct Indirect 8z Induced Total Business Revenue $583 624 $469,341 $1 052 966 Payroll (includes owner's income) $156 332 $189 865 $346 197 Rent royalties 81 dividends 173,220 $78 839 $252,059 Fees 8z Taxes (sales property, etc.) $2 793 $20 809 $23 602 Full-time Equivalent Jobs 5.3 4.9 10.2 Source: Southeast Strategies, 2005. Table 13 shows the combined 2004 impacts of Seward ferry service on several types of business. These Seward -based businesses include: ➢ the ferry terminal operations at Seward; ➢ trucking companies that load and unload vehicles using the ferry at Seward, and that deliver supplies for the ferry at Seward; ➢ laundry companies providing services for the ferry at Seward; ➢ hotels and motels used by crew members making crew changes at Seward; ➢ restaurants serving truck drivers taking vehicles or vans to or from the ferry and ferry crewmembers making crew changes at Seward; ➢ gas stations fueling vehicles using the ferry at Seward (including visitors using the ferry, as transportation items were not included in visitor expenditure estimates); ➢ bus lines serving crew members and visitors using the ferry at Seward (transportation items were not included in visitor expenditure estimates); ➢ vehicle maintenance services used by truck drivers taking vehicles or vans to or from the ferry at Seward; ➢ miscellaneous services used by truck drivers using the ferry and ferry crew members at Seward; and City of Seward Economic and Transportation Impact Study of AMHS Services August 2.005 Page ;Jlof 37 ➢ Seward -based vehicle leasing companies who will have additional costs with alternative ferry ports of call and routes, and will not be able to pass those costs on to their customers. These business categories were analyzed separately using IMPLAN multipliers specific to their industry types, and results were compiled to determine the direct business impacts. Analyses of individual business categories are discussed below. Ferry Terminal Operations: The amount of $308,917 was used for the 2004 operations budget at the Seward ferry terminal. While this amount is higher than AMHS's estimate, it is the estimate that the IMPLAN model made for business operations associated with 1.15 FTE's employed by State government enterprises. This estimate makes more sense when you consider that $40,000 to $50,000 of fuel purchased by AMHS annually at Seward and possible other purchases made in Seward are not accounted for in the AMHS estimate. Trucking Companies: Several trucking companies serve either AMHS {delivering goods for use on the ferry) or customers of AMHS (delivering, loading, unloading or retrieving vehicles, vans and other equipment at the Seward ferry). Owners or managers of these businesses were interviewed about their employment and the amount of their business that is directly attributable to AMHS activity at Seward in 2004. An estimated employment of 1.6 FTE in Seward trucking businesses that is a direct result of ferry activity at Seward was then fed through the IMPLAN model. The Model estimated $174,037 in direct business revenue in Seward from this activity in 2004. Laundry Companies: AMHS has a contract for about $62,000 this year with Seward Laundry for laundering linens on the ships. If ferry service to Seward stops, AMHS will not continue this contract. Although only $62,000 was used as the impact to this business, loss of this contract will affect the efficiency of the Seward Laundry, and the actual impacts will likely be greater. Hotels andMotels: Some crew members travel to Seward the night before the early morning crew changes, and stay in a hotel over night. Interviews with the two motels most popular with crew members allowed for a conservative estimate of four stays per month averaged over .the year. Average prices over the year for these motel rooms are approximately $75.00 per night, for a total annual expenditure of about $3,600. Restaurants. • Truck drivers traveling to Seward, because of business with the ferry, frequently eat meals in town. The total 2004 impact estimate of $3,040 includes an estimated 4 meals per week by truck drivers, 48 meals for the crew members who overnight in Seward, and an additional 48 meals by truck drivers and crew members in general or when ships are late (there can be as many as 12 crew members waiting for crew change at a time, 3 weeks a month). The estimate of $10.00 per meal was used to complete the calculation. Gas Stations. The 2004 estimated impact to gas stations is $13,950. Interviews with the Seward ferry terminal manager, several crew members and a local gas station manager revealed that most vehicles traveling to or from the Aleutian Chain and Kodiak fuel in Seward because fuel is less expensive in Seward. In 2003 (latest year of data available), 1,860 vehicles embarked and disembarked the M/V Tustumena at Seward. Assuming a similar number for 2004, and that 3/a of those vehicles each purchased five gallons of gas at $2.00 per gallon gives us a conservative total of $13,950 in 2004. In addition, gas stations sold City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page ��pf 37 between $40,000 and $50,000 worth of fuel to AMHS to operate the ferry in the past year, but that total is included in the ferry operating costs discussed previously. Bus LinesSome crew members who live away from the road system fly into Anchorage and take the bus into and out of Seward. An estimate of 16 round trips in 2004 by crew members was added to an estimated 20 round trips in that year by ferry passengers at Seward. Each round trip costs $80.00, for a total 2004 impact to bus lines in Seward of $2,880. Vehicle Maintenance and Repair Truck drivers using the ferry at Seward sometimes need tire, windshield wiper and other minor vehicle maintenance and repairs in Seward. A 2004 estimate of $1,000 was used for this category of spending. Miscellaneous Goods and Services• Truck drivers using the ferry at Seward and ferry crew members purchase miscellaneous goods and services in Seward. An estimate of $1,000 in spending for 2004 was used for this category. Visitor Expenditure Impacts In addition to impacts created from businesses related to ferry service in Seward, visitors to Seward using ferry service also create impacts on the local area economy. Visitors to the Seward area include residents of communities outside of the KPB with connecting ferry service, as well as tourists from out of state or from other regions of Alaska. Residents of communities with connecting ferry service travel to Seward and spend time and money on the Kenai Peninsula. Visitors from other Alaska regions or out of state come to the Peninsula for sightseeing and recreational activities, and use the ferry to connect to other communities they wish to visit. Currently, visitors are able to travel a loop in the Kenai Peninsula by driving to Seward, ferrying to Homer, and driving back, or the reverse. A 2004 estimate of spending in the Seward area by visitors using the ferry at Seward was developed as follows. Local ferry terminal management estimated that about of 15 percent of ferry passengers using the ferry at Seward were local residents. In 2003 {the latest available data), 8,497 passengers either got on or off the ferry at Seward. According to the 2001 Alaska Visitor Statistics Program (AVSP), the statewide annual average visitor expenditure per person, per night of visitors traveling on the State ferry was about $55.03 per day. This total includes spending on transportation (about 24.67 percent of total spending), which is accounted for in another section of this report as part of ferry system revenues and gasoline sales. The total average spending per day not including transportation expenses for visitors traveling on the State ferry was $41.45 in 2001. When adjusted to 2004 dollars, the average spending per day by visitor in the Kenai Peninsula using the ferry is about $45.55. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 233Df37 Assuming 85 percent (or 7,222) of passengers using the ferry at Seward were visitors, if each visitor stayed in the Seward area for only one day, they would contribute about $328,962 directly to the Seward Economy in 2004. This is a conservative estimate, as it is likely that some visitors who traveled into or out of Seward on the ferry would spend more than one day in the Seward area. The multiplier effect of this visitor spending creates additional indirect and induced impacts provided in Table 14. Visitor expenditures in the KPB created at least $568,723 in business Revenue and at least 9.4 jobs in the Seward area in 2004. Table 14. 2004 Impacts of Ferry -Related Visitor Expenditures in the KPB Direct Indirect 8T Induced Total Business Revenue $328 962 $239 761 $568 723 Payroll (includes owner's income) $113 437 $82 501 $195 939 Rent royalties 81 dividends $29 582 $46739 $76 321 Fees 891 Taxes (sales property, etc.) $24 815 $12 784 $37,599 Full-time Equivalent Jobs 6.7 2.7 9.4 Source: Southeast Strategies, 2005. Total Impacts (Business Operations and Visitor Expenditures) The following table combines 2004 economic impact estimates from operations of ferry - related Seward -based businesses with expenditures of visitors using the Seward ferry service in 2004. Table 15 indicates that the total 2004 economic impact of ferry service at Seward from both AMHS-related business activity and from expenditures of visitors using the ferry is at least $1,621,688, The minimum number of jobs created from this activity in 2004 was 19.6 jobs. Table 15: Total 2004 Economic Impacts of Ferry Service at Seward Direct Indirect 81 Induced Total Business Revenue $912 586 $709 102 $1 621 688 Payroll (includes owner's income) $269,769 $272 367 $542,135 Rent, royalties 8T dividends $202,802 $125 577 $328 380 Fees 8T Taxes (sales property, etc.) $27 608 $33,593 $61 202 Full-time Equivalent Jobs 12.0 7.6 19.6 Source: Southeast Strategies, 2005. Economic Impacts by Expenditure Category Tables 16 through 20 present direct and secondary economic impacts from business operations and visitor expenditures in 2004 separated into the types of expenditure. Table 16 shows 2004 business Revenue impacts of at least $1,621,688 from ferry activity at Seward. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 9A of 37 Table 16: 2004 Seward Business Revenue Impacts Direct Indirect ex Induced Total Ferry -related Businesses $583 624 $469 341 $1 052 966 Visitor Expenditures $328 962 $239 761 $568 723 Total $912 586 $709 102 $1621 688 Source: Southeast Strategies, 2005. Table 17 shows total payroll impacts (including proprietors' income) of ferry service at Seward of at least $738,074 in 2004. Table 17: 2004 Payroll Impacts at Seward (including Business Owners' Income) Direct Indirect U Induced Total Ferry -related Businesses $269 769 $272 367 $542 135 Visitor Expenditures $1 13 437 $82 501 $195 939 Total $383,206 $354,868 $738,074 Source: Southeast Strategies, 2005. Rent, lease, royalty and dividend payments accruing in the Seward area economy in 2004 are presented in Table 18. At least $328,380 impacts the area economy in that year from this category of spending. Table 18: 2004 Rent, Ro alties and Dividends Impacts at Seward Direct Indirect 81 Induced Total Ferry -related Businesses $173 220 $78 839 $252 059 Visitor Expenditures $29 582 $46 739 $76 321 Total $202,802 $125 577 $328,380 Source: Southeast Strategies, 2005. Table 19 presents impacts to the Seward area economy of taxes and fees paid by businesses and individuals receiving income from ferry -related activity in 2004. Fees and taxes can include local property taxes, City and Borough sales taxes, local government fees and commissions, and other local payments. In 2004, at least $61,202 in local fees and tax impacts were generated from ferry activity at Seward. Table 19: 2004 Fees and Tax Impacts at Seward Direct Indirect 8T Induced Total Ferry -related Businesses $2 793 $20 809 $23 602 Visitor Expenditures $24,815 $12,784 $37,599 Total $27 608 $33 593 $61 202 Source: Southeast Strategies, 2005. Table 20 shows the minimum level of employment generated in 2004 by ferry activity at Seward. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page lM of 37 Table 20: 2004 Employment Impacts at Seward (in Full-time Equivalent Jobs) Direct Indirect U Induced Total Ferry -related Businesses 5.3 4.9 10.2 Visitor Expenditures 6.7 2.7 9.4 Total 12.0 7.6 19.6 Source: Southeast Strategies, 2005. While construction projects impacts of the ferry terminal at Seward are not analyzed here, future improvements and upgrades to the terminal area will greatly increase the annual job count and other impacts during the years they are being built. Value-added Impacts and Economic Retention Annual value-added impacts represent the amount of business revenue that is spent in the local economy, and include direct business spending for payroll and proprietors' income; rents, royalties and dividends; and local fees and tax payments. The 2004 percent of ferry - related (direct impacts) business revenue that remains in the local economy as value-added impacts were 57.5 percent (Table 12). While a portion of the other 42.5 percent of business revenue is re -spent locally through secondary impacts, much of it leaves the local economy. Primary value-added impacts remaining in the local economy from ferry -related visitor expenditures in 2004 were about 62 percent of business revenue (Table 12). Additional business revenue beyond the value-added amount was spent in the local economy in 2004 as a result of indirect and induced (secondary) impacts. Those additional expenditures (see Table 12) totaled at least $204,635 in 2004. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 2t§(pf 37 Direct User Costs In addition to the general economic analysis that calculates the total monetary value of ferry system activity at Seward from directly impacted businesses, and from visitor expenditures, direct user or traveler impacts to shippers and shipping customers outside of Seward, and impacts to residents of communities with connecting ferry service to Seward is also discussed. Although the scope of this study and the availability of information did not allow us to fully quantify those impacts, the discussions include estimates for additional costs per vehicle, shipment, or traveler if ferry service is moved from Seward to alternative ports. General Direct User Cost Impacts In practice, estimating all the benefits and costs of a proposed transportation system with precision is impossible. In particular, a wide range of spillover costs and benefits of transportation facilities and programs have yet to be estimated reliably. Moreover, it is very difficult to foresee long-range changes in transportation, land use, and energy markets that could have profound effects on the performance of different components of the transportation system. While it is important to keep these limitations in mind, the framework and tools of a Least Cost Planning {LCP) methodology still provide the best approach for addressing the relative benefits and costs of transportation alternatives. Given the limitations of scope in this study, evaluation and consideration of transportation system benefits is not contemplated as this study focuses solely on impacts to the Seward community and existing users of the system. However, changes in direct user costs as a result of the proposed loss of ferry service is estimated to quantify those impacts as they relate to vehicles and persons using the existing Seward AMHS services. The following user measures represent the majority of user benefits of any transportation system: ➢ Changes in travel and waiting time ➢ Changes in trip frequency ➢ Changes in out of pocket costs ➢ Changes in total number of trips made Changes in travel time and out of pocket costs are the focus of the quantitative analysis in this study. Out of pocket costs are also estimated for additional driving that is introduced between certain origins and destinations where roadways would replace all or a portion of ferry travel. Value of Time Transportation systems move multiple people and goods that are sensitive to time differentials with widely different time value depending on their unique demographic and personal values. While some broad user profile information is available on travelers using the regional transportation system and their trip purpose, this information is quite limited, often dated and varies between the different air, marine and land transportation services. The user profile varies by transportation mode, by transportation route and by season. Ferry traffic in Alaska contains a very high seasonal tourism component that on many routes exceeds in volume the entire annual resident traffic volume through the system. In addition City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 PageW of 37 to adults, the traffic data includes infants and children whose time can be argued holds minimal immediate economic value. Because current, consistent and detailed user profile information is not available for air, marine and land transportation across the various transportation routes, an average value for time to represent all users was employed to compute and compare the economic of user costs between communities affecting by proposed route changes. For selection of an average time value, TENW researched previously applied statistics used by DOT&PF in other cost benefit -analysis, the most recent being, the U.S. Department of Labor's annual average hourly wage for all workers in the nation for 2003. The data source is considered to best represent the majority of users on the Alaskan transportation system. For 2003, this figure was estimated at $15.35 per hour. This figure was reduced however, to represent an average of all travelers on the AMHS system, including children. Available AMHS traffic data for 2002 provides a breakout of the percentage of traffic by tariff codes, which indicates the percentage of several age groups traveling AMHS during 2002: ➢ a. Children under 12: 10.6% ➢ b. Seniors: 3.2% ➢ c. 12 and over: 86.2% To remain conservative, the 12 and over group to was reduced to 80 percent of total travelers to represent adults 18 and over, which reduces the average US Average Hourly wage of $15.35 by roughly 20 percent or approximately $12.50 per hour. This value of time ($12.50/hour) was employed as the economic hourly time value in quantifying changes in traveler costs. Table 21 summarizes estimated direct user costs impacts associated with existing travelers using the Seward AMHS services. As shown, an additional $189,408 would be spent by annually by standard passenger and vehicle travelers using AMHS services currently provided at Seward. This figure considers changes in travel time and direct travel expenses only, and does not consider other such factors as changes in system demand or service frequency. Additional costs associated with goods movement are provided in the following pages and are based upon telephone surveys conducted by Southeast Strategies as part of this study. Based upon these surveys, an additional $40,675 in increased direct travel costs not included in the economic impacts identified previously. In total, increased direct user costs are estimated at a minimum of approximately $230,000 annually to current ferry travelers on AMHS services at Seward. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page N of 37 PR Table 21; Estimated Annual AMHS Traveler Direct User Cost Impacts Ma or Travel Corridors 2003 Annual passengers 2003 1 Annual vehlefes Change in Ferry Time Hours Change In Drive Time' Net Change in Trip Travel Thine Travel Triving Castosts• nge In Change in Ferry/Tunnel Fares pa /veh Change in Direct Fares Net Change In Annual User Costs Seward to SW 560 270 3.75 4. 0.25 3 i 431 -$8/-$23 10690 $ 4241 71 2 0 0 4.25 4.25 $ 75 ;X7- 6 504 $12/ 20 l4 320Anchora e/O ers to SV/ 3 00 1 5b0 -3.75 3.00 0.75 b0 5 037 B/- 23 $ b i 480 bb 443Anc�hara e! thers w Cross uif 27 1640 100 i h00 121 20 8 t 124 $1 155,3491 Net Annual Increase in Direa user Costs $ 189,408 Footnote I • Changes in drive time along major travel corridors Include a penalty, for the Whittier Tunnel due to limited operations of this roadway link. Foornme 2 • Travel time costs are valued at $12.50 per hour to assess direct Impacts of system route changes. Foonote 3 - Changes In driving mileage were cakulamd at $0.126 per mile based upon average driving costs in 2004 from AAA 2004 statistics of average W/oif, maintenance, and tare operating costs.. 199 Additional Costs to Shippers and their Customers Estimated From Shipper Interviews The impacts of AMHS activities at Seward spread beyond the Seward city limits, and changes to ferry service on the Kenai Peninsula will have impacts on various businesses and communities using that service. It is beyond the scope of this study to fully quantify these impacts; however, they are discussed in this and the following sections. In some cases we were able to obtain estimates for additional costs of moving individual vehicles on various alternative routes. AMHS administrative staff was able to provide the following information regarding unaccompanied vehicles boarding the ferry at Seward in calendar year 2004: ➢ 472 unaccompanied cars and trucks; ➢ 4 unaccompanied RVs; and ➢ 83 unaccompanied vans. However, without knowing the destination of these vehicles, or the numbers of unaccompanied vehicles unloading at Seward and from what origins, we cannot fully calculate monetary impacts to shippers and their customers. The following information was obtained from interviews with shipping companies, automobile dealerships and rental companies, community representatives, store owners and managers, representatives of the U.S. Coast Guard base and the rocket launch facility at Kodiak, and other knowledgeable parties. While some information was obtained from AMHS, we could not obtain actual counts of commercial traffic on the routes of interest. Seward has traditionally been the ferry port of call for three ferry routes. Traffic between the Kenai Peninsula and Kodiak and the Aleutian chain uses Seward as well as Homer for that route. Cross gulf traffic to Southeast Alaska uses the port of Seward. The following sections discuss ferry traffic on these routes. Traffic between Prince William Sound and the Kenai Peninsula used Seward as port of call till its recent move to Whittier. Tustumena — Seward to Kodiak and the Aleutian Chain Commercial vehicle traffic using the Tustumena is mostly to and from Kodiak. Most of the commercial traffic to communities in the Aleutian chain travels via barge, although loads occasionally go by ferry. The kind of commercial vehicle traffic that uses ferry service in Seward and moving from Seward to Kodiak generally includes: ➢ vans full of wholesale goods for resale at local stores; ➢ household goods of people moving jKodiak has the largest U.S. Coast Guard base in the world and transfers personnel frequently); ➢ automobiles sales and rental companies; ➢ vans with equipment and/or goods for the Coast Guard base or the rocket launch facility at Kodiak; ➢ construction supplies and equipment; and City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page2M of 37 ➢ various other vehicles and loads such as boats on trailers; Commercial traffic from Kodiak to Seward is generally made of up of ➢ household goods of people moving; ➢ occasional reshuffling of commercial rental vehicles; ➢ backhaul of empty vans; ➢ construction equipment; and ➢ various other vehicles and loads such as boats on trailers. Most of this traffic originates in Anchorage or beyond. The distance between Anchorage and Seward is 127 highway miles, and round trip takes about 4.5 to 5 hours (part of the highway allows 65 mph travel). If the Tustumena's port of call at Seward is discontinued, traffic would have to travel to Horner to catch the ferry to Kodiak and the :Aleutian chain. Homer is 233 highway miles from Anchorage, and the round trip takes about 10 hours (road design and conditions reduce average travel speed compared to the Anchorage to Seward route). It should be noted that ferry fares between Horner and Kodiak/Aleutian Chain cost less than fares from Seward. Seward to Kodiak fare for a car less than 19 feet in length is currently $180.00, while the same car from Homer to Kodiak is $157.00, for a $23.00 cost savings per vehicle. Prices are similarly lower for Aleutian Chain destinations. So while there are additional costs traveling the highway to reach a ferry port of call, there are some costs savings in ferry fares, which slightly mitigate the increased highway costs. Discussions with Teamsters Union representatives in Anchorage revealed that line drivers (drivers hired for long haul) can drive 15 hours per day before they must be paid overtime. Line drivers can nearly make three round trips between Anchorage and Seward in that time, but they can only make one round trip between Anchorage and Homer in 15 hours. City drivers (such as those working for construction supply stores who are sometimes called upon to deliver vans of construction materials to the ferry port) must be paid overtime after 8 hours of driving. City drivers could complete one round trip between Anchorage and Seward, but could not complete a round trip between Anchorage and Homer without overtime pay. Additional costs of getting to the ferry port would accrue to the store selling the goods, and some portion would likely pass through to the customer as higher prices for those goods. Car rental companies in Kodiak receive shipments of cars via ferry. The cars are often put on a trailer and driven to Seward during the daytime, the cars are unloaded and left near the staging area at the terminal, and the driver takes the trailer back to Anchorage. A local company then loads the cars on the ferry when it comes in, sometimes at odd hours. One Kodiak car rental company representative stated that they bring a trailer of cars in from Anchorage about six times per year. If the ferry port of call were moved to Homer, each load of cars would need to travel an extra 5 hours round trip for an additional cost of $950 per trip. Total impact to that car rental company of the additional costs for six trips per year would be about $5,700. On more, depending on the cost of fuel. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 3Tbf37 A new car dealer in Kodiak stated that they send about 20 to 25 cars per year to Kodiak. Changing the ferry port of call to Homer will add $200 to $250 in transportation costs for each car, for an additional cost of $4,000 to $5,000 per year. Another new car dealer in the Anchorage area delivers individual cars to the ferry at Seward bound for Kodiak. Changing the port of call to Homer would add 5 hours drive time round trip for two cars and drivers per trip (two cars go down, one is dropped off, and the driver of that car goes back in the second car). The drivers are paid $10.00 per hour, so two drivers would cost an extra $100 per round trip. An extra 318 miles are driven (106 miles times three — two cars down and one back). If the cars average 25 mpg, that is an extra 12.72 gallons of gas. With a price of gasoline at $2.20 per gallon in Anchorage, the addition cost of fuel would be $27.98 per trip. Each trip would cost an additional $127.98, resulting in an extra $895.86 in transportation costs for seven trips per year. Another transportation company in Anchorage that moves cars to dealers in Kodiak and the Aleutian Chain stated that several times a year they calculate their landed costs and change routes/methods accordingly to be able to offer the best rates to their clients. In their examination, they consider road haul, barge, and ferry costs for various ports and routes. Currently 95 percent of their cars travel by ferry. They sometimes transport individual cars, and sometimes have a full trailer load. This company has used Seward as their port of preference for years because that route has consistently had the lowest landed cost. Also, the port of Seward is more convenient for this company to backhaul cars from Kenai. Because of that convenience, car dealers in Kenai receive a special backhaul rate which would increase if the port of call changes from Seward to Homer. Figure 1 shows the cost comparison this company offered for using the port of Seward vs. the port of Homer for vehicles traveling to Kodiak. As shown, an increased cost of approximately $460 per trailer load would result in use of Homer vs. Seward. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 32bf 37 Figure 1: Cost Comparison for Vehicles Shipped from Anchorage to Kodiak via Ferry. Cost to the customer (All summer rates for cars under 19 ft (standard Alaska vehicle)). Includes $10 AMHS fee per unaccompanied vehicle: VIA SEWARD Seward ferry loading or unloading. $50.00 per vehicle Anchorage/Seward charge per vehicle: $329.00 per 1 vehicle, $113.00 per vehicle (8 vehicle minimum) Seward/Kodiak: ferry cost ($190) + 15% advancing charge ($29) Seward/Kodiak, I car = $598, trailer of 8 cars = $3,052 VIA HOMER Homer ferry loading or unloading: $65.00 per vehicle Anchorage/Homer charge per vehicle: $712.00 per vehicle, $182.00 per vehicle (8 vehicle minimum) Homer/Kodiak: ferry cost ($167) + 15% advancing charge ($25) Homer/Kodiak,1 car = $969, trailer of 8 cars = $3,512 Increase Cost = $3,512 - $3,052 = $460 per trailer. One transportation company that ships containers of goods between Seward and Kodiak stated that they ship about one container per week in winter and two per week in summer, for a total of about 58 containers per year to Kodiak. One of their customers in the rocket launch facility at Kodiak. They charge customers $525 to move a container from Anchorage to Seward and about $950 to move a container from Anchorage to Homer — an extra $425 per load. Company representatives stated that they will start moving about 40 percent of their containers via barge from Seward if the ferry is no longer available, and will use the ferry at Homer for the rest. So roughly 35 containers would go via ferry at Homer, for extra costs to the customer of about $14,875 per year for the road portion of the trip. Another freight company ships vans weekly to Kodiak via Seward, one van each way, and sometimes two vans each way. Although the ferry ticket is less expensive from Homer, it is an extra three hour drive each way. If there is road construction, a traffic accident, or some City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 33Daf 37 J other obstacle to driving, the driver might have to stay overnight on the road. Traffic between Moose Pass and Homer is greater than between Anchorage and Seward. The company passes the additional costs onto the customer. Also, this company ships goods into Alaska Correctional Industries near Seward, and ships manufactured wood products made there out to Anchorage and beyond. Since the freight company is in Seward so often dealing with ferry shipments, they can give Alaska Correctional Industries a special rate. With a change in ports of call from Seward to Homer, that shipping rate would increase. Kennecott — Seward Across Gulf to Southeast Alaska Commercial traffic traveling across the Gulf of Alaska from Southcentral to Southeast is mostly cars being delivered to dealers, and busses leased for the tour season in Southeast. Occasionally, van loads of household goods for interstate military transfers occur. AMHS moved its cross gulf Southcentral port of call from Seward to Whittier in late May 2005. Most of this traffic originates in Anchorage or beyond. The distance between Anchorage and Whittier is about 60 highway miles. Because access to and from Whittier and the ferry terminal is through a one -lane toll tunnel, it takes longer than the two hours driving time to reach Whittier from Anchorage. In the summer, the tunnel is only open during daylight hours, and only for 15 minutes per hour each way. Trucks only have about a 20 minute window to be able to catch the next tunnel opening in the other direction; otherwise they must wait for an additional hour. The DOT&PF tunnel policy is that trucks go last of all traffic. In addition, a toll is charged to use the tunnel. Figure 2 summarizes the 2005 summer and winter schedules and tolls for the Whittier Tunnel. Every vehicle -transporting company interviewed mentioned the lack of uplands around the Whittier ferry terminal where vehicles can be dropped off for loading on the ferry. Also, Whittier does not currently have a business that will take delivery of these cars and load them onto the ferry when it comes in. Consequently, deliveries of vehicles to the ferry must be made just before the ferry comes in (which can be all times of the day or night), and directly to the staging area. A problem arises if the ferry comes in when the Whittier Tunnel is closed. Also, vehicle transporters must load the vehicles on the ferry themselves. If the load is a trailer with several cars, it will take a long time for the driver of the trailer to load all the cars by himself, slowing the loading schedule for all ferry customers. Consequently, vehicle transporting companies may have to take additional personnel with them to the Whittier terminal to help load cars, creating additional costs. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 344of 37 J Figure 2: 2005 Whittier Tunnel Schedule and Tolls Winter Schedule: open each way for 15 minutes every hour (8:30 am to 7:15 pm). — mid -day maintenance closure for an hour. 6.5 minute transit time in good conditions — probably slower if icy. Trucks go last. Summer Schedule: open each way for 15 minutes every hour (5:30 am to 11:15 pm). 6.5 minute transit time. Trucks go last. Oversized trucks only allowed twice per day each way, Monday through Thursday. Tolls: Passenger vehicles = $12 round trip. Passenger vehicles with trailers or RVs less than 28 ft. _ $20.00 Wider or longer RV's/trucks vans or busses $35.00 30-passenger busses = $125.00 Truck -tractor and trailer combinations = $125.00 Extra large vehicles = $300.00 .;nnrr e- Alnckn D7 arrmP f of TninGnnrtntinn nnrl Pnhlir A car and bus rental company based in Seward ships leased busses to Southeast Alaska on the Kennecott each year for the tour season. They move 10 to 15 busses per year at an extra cost of $600 round trip through Whittier. if 12 busses are sent, that is an additional cost of $7,200. This same company also sends cars to Southeast Alaska. They send more cars than busses, and estimate total additional shipping costs for those cars at about $6,000 per year. This company will have an additional annual cost of about $13,200 to use the Whittier ferry terminal. A company representative stated that in the future to avoid the hassle of Whittier tunnel and small staging area for cars; they may start driving cars to Haines or Skagway and barging them to other ports in Southeast rather than using ferry service. A company in Anchorage that transports cars to dealers in Southeast Alaska explained that several times a year they calculate their landed costs and change routes/methods accordingly to be able to offer the best rates to their clients. During this examination, they consider road haul, barge and ferry costs for various ports and routes. Currently 95 percent of their cars travel by ferry. They sometimes transport individual cars, and sometimes have a full trailer load of them. Figure 3 presents the cost comparison for cross gulf transport using Seward and Whittier as the Southcentral port of call. Although landed costs at the Whittier terminal are only slightly higher than at Seward, lack of uplands to unload cars and lack loading services in Whittier concerns this company. They stated that they would consider driving trailers of cars to Haines and barging them to destinations in Southeast rather than using ferry service if the cross gulf port of call is moved permanently to Whittier. Figure 3: Cost Comparison for Vehicles Shipped from Anchorage to Southeast Alaska via Ferry City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 355of 37 Cost to the customer (All summer rates for cars under 19 ft (standard Alaska vehicle). Includes $10 AMHS fee per unaccompanied vehicle, and costs of tolls and additional tzme for Whittier tunnel - VIA SEWARD Seward ferry loading or unloading: $50.00 per vehicle Anchorage / Seward charge per vehicle: $329.00 per 1 vehicle, $113.00 per vehicle (8 vehicle minimum) Seward / Juneau: ferry cost ($516)+ 15% advancing charge ($77) Seward/Juneau, 1 car = $972, trailer of 8 cars = $6,051 VIA WHITTIER Whittier ferry loading (T/L only): $45.00 per vehicle Anchorage / Whittier: $380.00 per 1 vehicle, $119.00 per vehicle (8 vehicle minimum) Whittier / Juneau: ferry cost ($516) + 15% advancing charge ($77) Whittier/Juneau, 1 car = $1,018, trailer of 8 cars = $6,059 Prince William Sound Access using Seward In past years, the AMHS would use the M/V Tustumena to cover Prince William Sound in addition to their Kodiak run in winter months. If they continue that practice, and wish to use Homer and Whittier as the Kenai Peninsula ports of call in lieu of Seward, the ferry would have to cover additional ground. For the Kodiak — Kenai Peninsula — Prince William Sound route, Seward as the Kenai Peninsula port of call is the most efficient. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Paged of 37 Additional Costs to Kodiak and Aleutian Chain Residents Interviews with community representatives and businesses on the Aleutian Chain revealed a preference for Homer as their connection to Southcentral Alaska. They feel that if service to Seward is stopped, the ferry will be able to turn around faster, and offer the Chain additional service. None of those communities routinely ships goods via ferry. Occasionally, loads of construction materials or other one-time shipments will travel via ferry, and increased costs of using the Homer terminal may be passed on from the shippers to the customers. Community representatives from Kodiak and several Aleutian Chain locations mentioned that their residents travel to Anchorage via ferry for personal shopping trips. Representatives of the U.S. Coast Guard base at Kodiak estimated that roughly 80 percent of their 1,000 personnel travel to Anchorage at least once per year on an unofficial shopping trip. Individuals bringing personal vehicles on the ferry to and from Southcentral, and those taking shuttle bus service, would have a longer trip to reach Anchorage if they land in Homer instead of Seward. While their ferry fare would be less, their land transportation costs would be greater, and may offset and surpass the cost savings from the shorter ferry route. The ferry trip between Kodiak and Homer is about 4 hours shorter than the trip between Kodiak and Seward. As the road trip between Anchorage and Homer is only about 2.5 hours longer than the trip between Anchorage and Seward, using Homer as a port of call would save Kodiak residents time over all (about 1.5 hours each way). AMHS Employees In addition to the loss of the full time and part time positions at the Seward terminal, other AMHS employees will be impacted by the closure of the Seward terminal. AMHS administration was not able to supply information about employees living in the Seward area, and information received from several Tustumena employees was not consistent. Reports indicate that between three and eight Tustumena crew members live in the Seward area. Many others of the Tustumena's 24 crew members who change at Seward reportedly live in Anchorage, the Matanuska-Susitna Valley, and communities on the Kenai Peninsula other than Seward. Currently, the Tustumena changes crew at Seward weekly, three weeks out of the month. On any given crew change week, up to 24 crew members will cycle through a crew change at Seward. Typically, those living in Anchorage, the Mat -Su Valley and other locations on the Kenai Peninsula will drive in the same day as the crew change. If the Seward terminal is closed, crew changes will occur at Homer, an additional 2.5 hours drive (one way) for these employees. Those crew members who live in Seward will have to travel to Homer for that crew change. Also, many of the crew members living in Seward moved there because of its convenience to the Tustumena, and they were frequently able to go home for an hour or two when the ship was in port at Seward to visit their families. If the Seward terminal is closed, the advantage to living in Seward is diminished. Several crew members stated they would consider moving from Seward if the terminal there is closed. City of Seward Economic and Transportation Impact Study of AMHS Services August 2005 Page 397of 37 Page 1 of 1 Clark Corbridge From: Clark Corbridge Sent: Friday, July 15, 2005 8:39 AM To: 'Kirsten Vesel'; 'Sarah Spanos' Subject: Mike Read and AMHS contract. Kirsten and Sarah: Gee, they just now noticed their contract expired June 30? Maybe they should have completed things a bit earlier .. . 1. 1 have no objection to extending the contract, in terms of time for performance. 2. It's fine with me to have them sent us an invoice at the end of July for the air fare (for which we've already said we'll reimburse them). 3. However, I'm very reluctant to give them an open-ended "bill us for the hours you spend" commitment to pay anything beyond the amount in the original contract. Kirsten, I'd suggest you negotiate with them, keeping in mind that: a) We do need them to finish their work and do it timely, and b) Council is already not happy with the amount of money spent (given the results obtained) and it would be wise to minimize the additional expenditure. 4. While I'm not absolutely determined to have a contract extension in writing, given the caliber of our dealings with this outfit so far, I'm inclined to think we might be wise to reduce the terms of the extension to writing. Kirsten, I'm happy to have you use your judgment on the cost/benefit of devoting a block of your very scarce time to drafting a one -page extension. THANKS for being so conscientious and giving me an opportunity for input! Clark 208 7/15/2005 Sent By: ARRC SEWARD; and trm 9072652880; Aug-24-05 12:51; Page 2/2 Subject: srd trm From: Larry Perri <1awwreence—peni@dot.state.ak.us> Date: Wed, 24 Aug 2005 10:32:26 -0800 To: Lawrence E Perri <lawr=ca_perri@dot.state.ak.us> Subject: Seward Ak Ferry Date: Wed, 24 Aug 2005 10:24:04 -0800 To: <dot.comments@ost.dot.gov> Ir- - 94 n* 1, N ip ,. of' T1?va%5 Hello, My name Is Lawrence Perri and I work for the Alaska Marine Highway System ( DOT) The state of Alaska is closing the Seward Ferry terminal the end of september. I wanted to know if they had federal approval to do so. Since its funded - in part by the federal gov. Last year I was reading title 19 highways and ferries and it said they need fed approval to pull service out of any communities. If this Is true did they get approval? A lot of people milli be affected here In Seward by the pull out including myself. 1 hope this gets to the right people If not could you please pass it on to whom it may concern as time Is running out.l can be reached at 907 224-4604 hm 224-5485 wk 491-1432 Coll Thank you, Lawrence Perri Content -Type: messagelr&822 Seward Ak Ferry.eml' Content -Encoding: 7bit NOR P110APIrkng In-21 At 9072652660; .rt me Aug-24-05 13:33a Peggy PAIL Sent By;_AR1k SEWARD; 9072852660; Aug-24-05 13:33; Page 2/2 <AUTO> JBTSIU360-4841 seward Ferry temikal closure Subject: <AUTO> {BTSM#360-484}seward Feny terminal closure From: DOT Comments <dot.commvnU@ostdot.gov> Date: Wed, 24 Aug 2W5 14:39:54 -0400 To: Larry Perri <lawrenceper iQa dot.state.ak-us> Dear DOT Customer: Thank you tar contacting the Department at Transpottation. Your entail has been forwarded to the National Transportation Library Reference Service in the Bureau of Transportation Statistics. This is to acknowledge that we received your email message on Aug 24 2005 2:33PM. Your tracking number for this inquiry is 360484 . We strive to answer each question we receive by referring you to the web page, publication, or person who can answer your question. We try to respond within two business daye. Sincerely, Reference Services National Transportation Library Bureau of Transportation Statistics Research and Innovative Technology Administration U.S. Department of Transportation -----priginal Mestsage----- From: Larry Berri tlawrence_2erri@dot.state.ak.ua] Sent: Wednesday, Aug 24 2005 2:31PX To: doc.comments8ost.dot.gov [dot.comments9ost.dot.govl Subject: seward Ferry terminal closure Please read attachment. PAN OMAOIInne In.ee AIRL, r�q,bCr of $ 0 s41 August 11, 2005 Department of Transportation and Public Facilities Office of the Commissioner 3132 Channel Dr. Juneau, AK 99801-7898 Dear Commissioner Barton, Seward Chamber of Commerce, CVB PO Box 749 Seward, AK 99664 (907) 224-8051 The Seward Chamber of Commerce, CVB Board of Directors formally requests that the Alaska Department of Transportation and Public Facilities retain Seward as a main port of call on the MN Tustumena schedule. Throughout the years, Seward has served as a valued main port on the cross -Gulf and South - Central routes. As a port of call, Seward has enabled the Alaska Marine Highway System to fulfill its mission of connecting remote communities to Alaska's road system. As a main port, Seward serves as a vital link for the island communities of Prince William Sound, namely Chenega Bay and Tatitlek. Testimony offered earlier this year by leaders of those communities during public meetings regarding the 2005 AMHS schedule indicated that Seward has enabled their residents to easily reach Anchorage, connecting them with a vast transportation network. Most of the other regional ports served by the Alaska Marine Highway System increase the clock hours required to complete the trip or increase the driving demands on residents of remote communities. Maintaining Seward on the MN Tustumena schedule as a port of call provides a clear and direct benefit to Prince William Sound Communities — those communities dependent on the Alaska Marine Highway System to connect them to critical services. As a community, Seward's economy is impacted year-round by the MN Tustumena. A recently completed Economic Impact Study identified direct and indirect impacts of the MN Tustumena on the Seward community. The study indicates that nearly 20 full-time, year-round positions are related to MN Tustumena service to Seward. These jobs impact a diverse set of industry sectors and provide valuable full-time, year-round employment to Alaska residents living in Seward. Many of Alaska's smaller coastal communities are challenged to maintain a viable and consistent year-round economy. Those without a strong year-round economic basis rely on the state to assist their residents in maintaining basic standards of living. Communities that successfully maintain a year-round economy, with stable year-round employment, support populations that are generally more self-sufficient and rely less on state assistance. The MN Tustumena contributes to Seward's year-round economy, thereby fostering a more self- sufficient population, in turn, contributing positively to Alaska's overall economic position. A transportation hub from the early 1900's, Seward's economy is largely tied to our transportation industry. Our year-round, deep -water, ice -free port connects to both the Alaska Railroad and a well -maintained paved state highway. As a result, Seward serves the entire state of Alaska as a critical sea -land transportation hub, maximizing efficiencies for cargo cc: City Manager, City of Seward PAVA G�$�nber ofC ode a Seward Chamber of Commerce, CVB PO Box 749 Seward, AK 99664 (907) 224-8051 suppliers delivering goods to Alaskan consumers. The MN Tustumena is active within this hub, facilitating cargo movement between Anchorage and regional port communities. The short driving distance between Seward and Anchorage allows shipping companies to reduce the gas and maintenance costs associated with transporting goods to a seaport. Maintaining Seward as a main port also allows these companies to minimize personnel costs associated with longer driving distances and reduces the length of road traveled by the large vehicles. This serves to reduce the maintenance costs to the State, boroughs, and cities associated with heavy -load traffic on our roads. Minimizing the overall distance between freight hubs serves to save money across the board, a savings passed on to Alaska's residents, businesses, and communities. Reduced transportation costs are attractive to and benefit nearly all sectors of the economy, helping to support economic development initiatives statewide. The Seward Chamber of Commerce believes that continuing MN Tustumena service to Seward as a port of call serves not only the Seward community, but is in the best interest of the State of Alaska. We request that the Department of Transportation retain Seward as a main port of call for current and future Alaska Marine Highway System routes serving the Prince William Sound, South Central, and Southwest regions. Sincerely, Laura S. Cloward, Executive Director, Seward Chamber of Commerce cc: City Manager, City of Seward PAR The Economic Impacts of the Alaska Marine Highway Prepared for Alaska Marine Highway System 40 M January 2016 k stem- % vh-eool\\U \\ \ Prepared by McDowell GROUP January 2016 The Economic Impacts of the Alaska Marine Highway System Prepared for Alaska Marine Highway System Prepared by McDowell GROUP www.mcdowellgroup.net PAN Table of Contents ExecutiveSummary.................................................................................................................1 Introduction and Methodology..............................................................................................5 AMHSOverview......................................................................................................................6 AMHSHistory.........................................................................................................................6 AMHSVessels.........................................................................................................................7 AMHSService and Traffic........................................................................................................8 AMHS Employment and Payroll...........................................................................................14 Employmentin Alaska..........................................................................................................14 Payrollin Alaska....................................................................................................................15 AMHSSpending....................................................................................................................16 OperationsSpending...........................................................................................................16 CapitalExpenditures............................................................................................................18 TotalExpenditures................................................................................................................19 EconomicImpacts.................................................................................................................20 Employment and Payroll Impacts..........................................................................................20 IndustryBenefits...................................................................................................................22 Impact on the Cost of Living in Rural Alaska Communities....................................................24 Public Service Benefits of AMHS............................................................................................24 AMHS' Role in Coastal Communities....................................................................................25 Haines.................................................................................................................................. 25 Cordova............................................................................................................................... 29 Angoon................................................................................................................................ 34 Impacts of Reduced AMHS Service.......................................................................................37 Appendix............................................................................................................................... 39 0119, Executive Summary The Alaska Marine Highway System has been providing essential transportation to Alaska's coastal communities since 1963. Fifty-three years later, the system's 11 vessels serve 33 Alaska communities stretching from Metlakatla, north to Prince William Sound and the Kenai Peninsula, and east to the Aleutian chain. With only five of these communities connected to Alaska's road system, AMHS provides a critical transportation link for Alaska residents and businesses, as well as for non- residents visiting our state. With the State of Alaska facing a severe fiscal challenges, this is an important time to examine how AMHS contributes to the state's economy and quality of life. AMHS contracted with McDowell Group to measure its economic impact for 2014. Following are key findings of the study. The Alaska Marine Highway System accounted for 1,700 Alaska jobs and $104 million in Alaska wages in 2014. • AMHS employment and spending resulted in 1,700 Alaska jobs in 2014, including 1,017 direct jobs and 683 indirect jobs. • AMHS accounted for $103.7 million in Alaska wages in 2014, including $65.0 million in direct wages and $38.7 million in indirect wages. Table ES-1. AMHS Employment and Wage Impacts in Alaska, 2014 Direct impacts 1,017 $65.0 million Indirect/induced impacts 683 $38.7 million Total impacts 1,700 $103.7 million The State of Alaska's General Fund investment of $117 million resulted in a total return on investment of $273 million, a return of more than 2-to-1. • AMHS' economic activity resulted in total spending of $273.0 million in 2014, including $184.7 million in direct spending and $88.3 million in indirect spending. • The State of Alaska invested $117 million in General Fund monies in AMHS in fiscal year 2014. That investment was more than doubled in terms of economic benefits to Alaska. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 7 217 AMHS employees reside in 44 different Alaska communities, bringing home over $100 million in total wages and benefits in 2014. • Nearly all AMHS employees reside in Alaska, representing 95 percent of all AMHS employment. • Four -fifths (82 percent) of 2014 AMHS employees resided in the Southeast region; 17 percent in Southcentral; and 1 percent in Southwest. Wages were distributed similarly. • Ketchikan has the highest number of AMHS employees of all Alaska communities. With 318 workers, AMHS is one of the community's largest employers. • While Anchorage is not an AMHS port, it is home to 34 AMHS employees. AMHS directly spent $84 million with over 500 Alaska businesses in 2014 in operations and capital expenditures. • AMHS spent $45.7 million on operations in 2014, not including personnel costs. Major spending categories include fuel/oil/lube (52 percent), services (30 percent), and supplies/ equipment (10 percent). • Two-thirds (65 percent) of Alaska operations spending occurred in Southeast; 26 percent in Southcentral; and 8 percent in Southwest. • AMHS spent $38.2 million on capital projects in Alaska in 2014. Major capital projects included new engines for the Columbia ferry, initial construction of the new Alaska Class Ferry, and Kennicott refurbishment. Chart ES-1. AMHS Capital and Operations Spending, 2014 • Capital spending was heavily concentrated (94 percent) in Southeast Alaska due to shipbuilding and repair facilities located there. AMHS carried 319,000 passengers, 108,000 vehicles, and nearly 4,000 container vans in 2014. • About three-quarters of AMHS' 2014 passengers were attributable to the Southeast System, while one - quarter were Southwest System passengers. The top five embarkation ports in 2014 were Juneau (70,538 passengers), Haines (36,134), Ketchikan (33,254), Skagway (20,732), and Whittier (20,543). • AMHS provides essential transport for not only passengers and their vehicles, but freight — including fresh seafood, groceries, and other products critical to Alaska businesses and residents. AMHS transported 3,862 Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 2 218 container vans in 2014. The most important links were Homer -Kodiak (867 vans to/from) and Haines - Juneau (399 vans). Two-thirds of AMHS passengers are Alaska residents - including significant numbers from non-AMHS communities like Anchorage and Palmer/Wasilla. • AMHS transported 215,509 Alaska residents in 2014, representing 68 percent of all passengers. • Passengers who booked AMHS trips hailed from across the state, not only port communities. Anchorage was the number two source of AMHS trips booked. Additional non-AMHS port communities that landed in the top 10 were Palmer/Wasilla (#4) and Fairbanks/ North Pole (#7). Chart ES-2. Number of AMHS Trips Booked by Community of Residence, Top 10, 2014 Juneau Anchorage Ketch i ka n Palmer/Wasilla Sitka Haines Fairbanks/North Pole Metlakatla Petersburg Wrangell � 2,479 1,994 1,752 1,671 1,602 1,512 1,487 1,445 = 8,452 7,638 AMHS plays an integral role in Alaska's visitor industry, carrying over 100,000 non-resident passengers annually and bringing in outside dollars to the state. • In 2014, AMHS carried 103,000 non-resident passengers, along with 27,000 vehicles. AMHS carried 4,320 RVs in 2014. • Ferry visitors travel widely throughout the state, with just over half (52 percent) of summer passengers visiting Anchorage. Other popular destinations not served by AMHS included Denali (37 percent), Fairbanks (30 percent), and Tok (24 percent). • AMHS non-resident summer passengers spend about $1,300 per person while in Alaska (according to a summer 2011 survey), making a wide range of purchases including lodging, dining, tours, and transportation. • Among those who entered and/or exited Alaska via AMHS, the average per -person spending was $1,700 — significantly higher than the average among all Alaska summer visitors ($941). Applying this average to the roughly 17,000 ferry passengers who enter/exit Alaska via the ferry yields a total Alaska spending estimate of $29 million. Economic Impacts of Alaska Marine Highway System 219 Chart ES-3. Top Ten Destinations of AMHS Visitors, Summer 2011 Anchorage 52% Juneau 1 52% Skagway 46% Ketch i ka n 1 40% Denali 37% Haines 35% Fairbanks 30% Seward 29% Tok 1 24% Valdez 21 % 0 McDowell Group, Inc. • Page 3 AMHS contributes to a wide variety of business and resident activity in Alaska. Coastal communities are particularly dependent on the ferry for their economic health. Following are some examples of the various ways in which coastal Alaska's residents and businesses rely on the ferry system. • Employment: AMHS is a valuable employer in many coastal communities, providing an important source of family - wage and year-round jobs. • Sales of goods and services: AMHS makes purchases from over 500 Alaska businesses annually. These purchases impact a wide variety of businesses: engineering, architecture, ship repair, fuel, groceries, laundry, and business supplies, for example. • Tourism: AMHS brings visitors to communities who may not otherwise visit, particularly those traveling with their vehicles. Spending by these visitors supports a wide variety of local businesses including restaurants, tour companies, transportation providers, and retail stores. • Seafood shipment: A number of seafood companies rely on AMHS for shipment of fresh seafood. The ferry offers an essential alternative to air freight, which can be prohibitively expensive, have insufficient capacity, and lack proper refrigeration. Having a ferry option lowers transportation costs, allowing seafood processors to pay local fishermen more for their product. • Shipment of groceries and other goods: Many communities rely on the ferry system for delivery of groceries as well as other essential freight such as construction equipment and supplies, seafood processing equipment, household goods, etc. • Health care: Smaller communities with limited health care resources rely on AMHS for access to health care in larger population centers like Anchorage and Juneau. AMHS is particularly critical in communities where flights are frequently canceled due to weather. • School travel: AMHS allows students in Alaska's coastal communities to visit other schools for a variety of purposes including sports, leadership development, drama/debate, and arts -related events. For most of these events, air travel is not reliable or financially feasible. These issues are explored in more detail in a subsequent chapter of this report, which examines the role of AMHS in three "case study" communities: Haines, Cordova, and Angoon. Economic Impacts of Alaska Marine Highway System 220 McDowell Group, Inc. • Page 4 Introduction and Methodology Introduction The Alaska Marine Highway System (AMHS) has provided essential transportation service to coastal Alaska since its inception in 1963. Over the years its services have expanded to encompass 33 Alaska ports stretching from Ketchikan north to Prince William Sound, and west to the Aleutian Chain. Its 11 vessels carry visitors as well as Alaska residents, in addition to a wide variety of vehicles and freight, to these predominately small communities, most of which are unconnected to Alaska's road system. Advantages of the state's marine highway system go beyond transporting people and goods between coastal communities. The system provides jobs to hundreds of Alaskans, supports businesses around the state, and plays an important role in the state's visitor industry. Providing these services requires investment by the State of Alaska — AMHS was supported by $117 million in General Fund revenue in fiscal year 2014. The state's current fiscal challenges resulted in significant budget cuts in 2015 and 2016. To better understand the role of AMHS in our state and communities, and the implications of potential further cuts, AMHS contracted with McDowell Group to analyze the economic impacts of AMHS in Alaska. Methodology AMHS provided the study team with extensive data on passenger and vehicle traffic, freight, employment, payroll, capital spending, and operational spending. The AMHS Annual Traffic Volume Report 2014 (ATVR) and Annual Financial Report 2014 (AFR) provided additional data. Visitor industry data was drawn from the Alaska Visitors Statistics program, conducted by McDowell Group for the Alaska Department of Commerce, Community, and Economic Development. Economic impact analysis was conducted using the econometric modeling tool IMPLAN. IMPLAN is a predictive input-output model of local and state economies, and is widely used to measure the economic impact of industries and industrial/commercial development. For the "case study" communities of Haines, Cordova, and Angoon, the study team conducted 22 interviews with local community leaders and business owners. A list of these contacts is provided in the Appendix. Unless otherwise indicated, all data in this report refers to calendar year 2014 All photos were provided by AMHS with limited usage rights. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc.. Page S 221 AMHS Overview This chapter includes a brief history of AMHS and an overview of the fleet, services, and traffic. AMHS History The history of the Alaska Marine Highway System actually predates Alaska's statehood: the Territory of Alaska first purchased a ferry and started servicing Lynn Canal in 1951. The ferry was transferred to the new State along with other territorial assets upon statehood. The first Alaska Legislature approved the Alaska Ferry Transportation Act in 1959, authorizing the new Department of Public Works to acquire ferry terminals and regulate ferry operators. In 1960, Alaska voters statewide approved a bond proposition to invest in a marine highway system, with additional ferries and docking facilities. Operations of the Alaska Marine Highway began in 1963 with four vessels. The service expanded rapidly in the 1960s and 1970s, with additional ships and ports being _ added to the point where in 1980, AMHS had nine ships and served 30 communities. The number of people and vehicles served by AMHS continued to grow steadily until traffic peaked in l, 1992 at over 420,000 passengers. A long-term Z.i -7N - =T11"%u . decline in traffic lasted through the 1990s and early 2000s, likely attributable to several factors, including improvement of road conditions on the - ALCAN, a downturn in the U.S. long-distance vehicle market, and increasing reliance on air s, atravel. AMHS continued to improve service and vessels, adding the long -haul vessel Kennicott in 1998 and two fast ferries, the Fairweather (2004) and Chenega (2005). The long-term decline in traffic ended in the late 2000s; traffic has fluctuated only slightly over the last ten years, averaging 320,000 passengers. AMHS continues to provide essential transportation service to coastal Alaska, calling at 33 Alaska communities — 28 of which are not connected to Alaska's road system. Two new day boats are currently under construction at the Vigor Shipyard in Ketchikan. They will have a capacity of 300 passengers and 53 standard vehicles, and are scheduled for delivery in 2018. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc.. Page 6 222 AMHS Vessels The AMHS fleet consists of 11 vessels, including seven operating in the Southeast System and four in the Southwest System. Seven vessels were constructed in the 1960s and 1970s, with the remaining four constructed between 1998 and 2005. Passenger capacity ranges from 149 (Lituya) to 600 (Columbia), while vehicle capacity for 20-foot vehicles ranges from 18 (Lituya) to 134 (Columbia). Six vessels have staterooms. Most vessels provide food service, shower facilities, observation lounges, and recliner lounges. The larger vessels provide additional amenities, including play areas for children. Table 1. AMHS Vessels Matanuska 1963 499 88 106 Malaspina 1963 499 88 72 Taku 1963 370 69 40 Tustemena 1964 174 36 24 Columbia 1974 600 134 103 Leconte 1974 247 34 - Aurora 1977 300 34 - Ken n i cott 1998 499 80 109 Lituya 2004 149 18 - Fairweather 2004 250 36 Chenega 2005 250 36 Source: AMHS Economic Impacts of Alaska Marine Highway System McDowell Group, Inc.. Page 7 223 AMHS Service and Traffic AMHS currently provides year-round scheduled ferry service to Southeast, Southcentral, and Southwest Alaska, in addition to serving two non - Alaska ports: Prince Rupert, British Columbia and Bellingham, Washington. Following are more details on routes, traffic, and services. Routes and Ports AMHS served 33 Alaska ports and two non -Alaska ports in 2014. Seventeen ports represent the "Southeast System" (which extends from Bellingham to Yakutat), and 18 ports comprise the "Southwest System" (covering the area between Cordova and Dutch Harbor). The Southeast System is divided into "mainline" (multiple -day) routes, and "day boat" routes, where vessels typically return to their home port on the same day. Vessels connect with the continental road system at four ports on the Southeast System (Bellingham, Prince Rupert, Haines, and Skagway) and three ports on the Southwest System (Valdez, Whittier, and Homer). Figure 2. AMHS Southwest System Routes Figure 1. AMHS Southeast System Routes Ya Haines Skagway Gustavus Pelican Hoonaha Tenakee Sitka Kake Petersburg Metlakatla� Valdez Whittler 7atitlek Chenega Bay Homer Cordova Juneau Angoon bl Wrangell Ketchikan Prince Rupert Part Lieons Lion' Kodiak Chignik Old Harbor Cold BaY King Cave Palse Pass Sand Point Bellingham Dut[h Harbor Akutan Source: AMHS. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. ! Page 8 224 Passenger and Vehicle Traffic TOTAL TRAFFIC In 2014, AMHS transported just over 319,000 passengers and over 108,000 vehicles. There were nearly 7,000 port departures in 2014. About three-quarters of the traffic occurred in the Southeast System: 76 percent of passengers, and 72 percent of both vehicles and port departures. Passenger Traffic Source: AMHS. TRAFFIC BY PORT Chart 1. AMHS Traffic by System, 2014 Vehicle Traffic Port Departures The charts below show embarking passenger traffic by port for each system. Juneau has by far the highest volume of passengers (70,538), followed by Haines (36,134), Ketchikan (33,254), Skagway (20,732), and Whittier (20,543). Chart 2. AMHS Embarking Passenger Traffic, 2014, by System Southeast System Southwest System Juneau 70,538 Whittier Haines 36,134 Homer 13,126 Ketchikan 33,254 Valdez 12,788 Skagway 20,732 Cordova 12,034 Annette Bay 15,214 Kodiak i� 11,236 Bellingham 13,647 Seldovia im 2,467 Sitka 13,451 Port Lions im 1,288 Petersburg � 7,961 Ouzinkie 11 587 Prince Rupert � 7,209 Dutch Harbor 11 538 Wrangell � 6,835 King Cove ii 490 Hoonah 5,368 Sand Point ii 365 Gustavus 4,165 Akutan ii 274 Angoon 3,982 Chignik 11 259 Kake ■ 2,208 Cold Bay 143 Tenakee 1 1,355 Chenega 113 Pelican 1 461 Tatitlek 58 Yakutat 134 False Pass 26 Source: AMHS. Old Harbor 21 20,543 Economic Impacts of Alaska Marine Highway System McDowell Group, Inc.. Page 9 225 AMHS AS ESSENTIAL TRANSPORTATION PROVIDER Smaller communities not connected by road to the rest of the state are particularly reliant on AMHS. The chart below shows the ratio of resident population to embarking traffic in 2014 among communities not connected to the statewide road system. For example, Seldovia had 2,467 embarking passengers in 2014, and a population of 233: 2,467 divided by 233 is 10.6. For every one resident of Seldovia, there were 10.6 passenger embarkations in 2014. Seldovia, Tenakee, and Metlakatla had the highest ratios of traffic to population, implying a heavy reliance in these communities. The communities on the lower end of the spectrum, such as Yakutat, Dutch Harbor, and Old Harbor, tend to receive very few port calls: 30, 11, and 4 (respectively) in 2014. Chart 3. Ratio of Resident Population to Passenger Embarkations, 2014, Communities Not On Statewide Road System Seldovia Tenakee Metlakatla Angoon Gustavus Port Lions Hoonah Pelican Cordova Kake 3.5 Ouzinkie 3.4 Wrangell 2.8 Chignik 2.7 Petersburg 2.5 Ketchikan 2.4 Juneau 2.1 Chenega 2.0 Kodiak 1.8 Cold Bay 1.6 Sitka 1.5 False Pass 0.8 Tatitlek 111111M 0.6 King Cove = 0.5 Sand Point 1111111 0.4 Akutan ■ 0.3 Yakutat ■ 0.2 Dutch Harbor 1 0.1 Old Harbor 10.1 10.6 10.6 10.3 9.6 8.1 7.3 6.8 M 6.1 5.3 Source: AMHS. Population estimates from Alaska Department of Labor and Workforce Development. Economic Impacts of Alaska Marine Highway System 044: McDowell Group, Inc.. Page 10 TRAFFIC COMPOSITION AMHS moves large numbers of both Alaska residents and non-resident visitors. Among Alaska resident travelers are people from all across the state. • Alaska residents represented 68 percent of all passengers; non-residents represented 32 percent. • AMHS attracted passengers from all 50 states and over 80 different countries in 2014. Besides Canada, the top foreign countries of origin in terms of passenger volume were Germany, Australia, Switzerland, and United Kingdom. • Among Alaska residents, Juneau residents booked the highest number of trips at 8,452 (see Chart 5). • Anchorage residents booked the second highest number of trips at 7,638. Additional communities that landed in the top 15 despite not being AMHS ports were Palmer/Wasilla (#4) and Fairbanks/North Pole (#7). Chart 4. Alaska Resident versus Non - Resident AMHS Passenger Traffic, 2014 Source: AMHS. Chart 5. Number of AMHS Trips Booked by Community of Residence, 2014 Juneau Anchorage Ketch i ka n 2,479 Palmer/Wasilla 1,994 Sitka 1,752 Haines 1,671 Fairbanks/North Pole 1,602 Metlakatla 1,512 Petersburg 1,487 Wrangell 1,445 Homer 954 Cordova 835 Skagway 816 Kodiak 777 Hoonah 753 Source: AMHS. 7,638 8,452 Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 11 227 TRAFFIC TRENDS AMHS passenger traffic has averaged 320,000 passengers over the last ten years. The lowest traffic of the decade was in 2005 (282,236), while the peak was in 2008 (340,412). Passenger traffic in 2014 was about average at 319,000, and was up 2 percent over 2013. AMHS vehicle traffic has averaged 106,400 vehicles over the last ten years. The lowest vehicle traffic of the decade was in 2005 (86,518), while the peak was in 2012 (1 15,448). Vehicle traffic in 2014 was a little above average at 108,500, about the same as in 2013. 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Chart 6. AMHS Annual Passenger and Vehicle Embarkations, 2005-2014 2005 2006 2007 2008 2009 2010 2011 2012 201 201' ■ Passengers Vehicles Source: AMHS. Freight and Other Transport In addition to transporting passengers and their vehicles, AMHS plays an essential role in transporting freight (using container vans), vehicles without drivers, trailers, ATVs, etc. • AMHS transported 13,110 vehicles without drivers and 4,320 RVs in 2014. RVs are defined as truck/campers, camper vans, motorhomes, and vehicles with trailers. • AMHS transported 2,269 non -motorized vehicles in 2014. These include bicycles, kayaks, and canoes not being transported in a car, truck, or trailer. • AMHS transported over 18,000 pets/livestock in 2014. Table 2. Vehicles, Freight, and Other Car Deck Usage, 2014 Container vans 3,862 Vehicles w/o drivers 13,110 RVs 4,320 Non -motorized vehicles 2,269 Pets/livestock 18,016 ATVs 115 Trailers 331 Source: AMHS Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 12 228 Marine freight plays a particularly important role for coastal communities, which rely on AMHS for transportation of time -sensitive cargo such as fresh produce, meat, and dairy products. Container vans are also used to move fresh Alaska fish and seafood to markets.' • AMHS transported nearly 4,000 container vans in 2014. The most important routes for container vans are Homer -Kodiak and Kodiak -Homer at 436 and 431 vans, respectively (see Chart 7). Juneau is also an important container van port, accounting for seven of the top 15 links. 436 431 Chart 7. Top 15 AMHS Container Van Links, 2014 206 202 193 191 154 150 138 122 92 1 89 1 88 1 � \��c`� �QJ �Q Fo o ��, ��, �P �J� oo �� �QO L�\� o`P� \c'�5 P� �PJ ��� J of �J�\ o RZ e� Source: AMHS. ' ATVR. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 13 229 AMHS Employment and Payroll Jobs and income directly created by AMHS are an important part of the system's economic impact. This chapter describes AMHS employment in terms of employee residence, payroll, and benefits. Employment in Alaska Table 3. AMHS Employment, by Region/ Community of Residence, 2014 AMHS employed 1,017 Alaska residents in 2014, Southeast 829 representing 95 percent of total system workforce. Ketchikan 318 Juneau 297 • Employees hailed from 44 separate communities Haines 51 throughout the state (see Figure 3, below). Wrangell 39 Petersburg 25 • Southeast residents constituted the bulk of Sitka 21 employees (82 percent); Southcentral residents Metlakatla 15 represented 17 percent; and Southwest Southcentral 175 Anchorage 34 represented 1 percent. Homer 34 • Ketchikan and Juneau alone accounted for 60 Cordova 19 Southwest 11 percent. With 318 employees, AMHS is one of Kodiak 10 Ketchikan's single largest employers. Other Alaska 2 Total Alaska 1,017 % Alaska Resident 95% Source: AMHS Figure 3. AMHS Employee Communities of Residence, 2014 WILLOW • � ALI�IFR WASILLA ANCHORAGE. .EAGLE RNER IRDVODOD NIKISKI - VNFTTIER KENAI. 5ULpUSNA. STERLING NINILCHIK• F •KASILO•4Rr�<l F'I ANCHOR POINT • FRFF7 CR?F'. HO&k I i a 1'KA II• _ Source: McDowell Group. i AIR&ANKS �AEr,�eFNn AftE BAY cu5TAt ui �%fUNEAU r1dONFH rtucnn •,£IVAnEE srelhcs SITKA.. r RF �'EiEx Sd UaC: �l': I:nrvGttL j0fM1IAN COVE I rvax �� eAv el ay.ex R}} `Naxln cnvl IRAIC� I.YICHIA'AI� UYPAr�WRG Ad RI AI(YT!6 A' LI-HJPA L • • �NAEDE2 • CORDO A �• • SNA(:LkAY • •wf UNEAU 11 D IAK SFKA • i li,k�l � • i K 111PK Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 14 230 Payroll in Alaska Employee spending of payroll dollars have important economic impacts in their local communities. • AMHS paid its Alaska employees just over $100 million in wages and benefits in 2014, including $65 million in wages and $36 million in benefits. • Four -fifths (82 percent) of payroll/benefits accrued to employees residing in Southeast Alaska; 17 percent accrued to employees residing in Southcentral; and 1 percent accrued to employees living in Southwest. • Ketchikan resident employees received the largest amount of wages/benefits at $31.5 million, followed closely by Juneau residents at $29.4 million. • While Anchorage is not an AMHS port, Anchorage residents received $3.4 million in wages/benefits. Anchorage ranked fifth compared with other communities in terms of total wages/benefits, along with Homer. Chart 8. AMHS Payroll and Benefits to Alaska Employees, By Region, 2014 Southwest, Other, SUM $0.2m Source: AMHS. Table 4. AMHS Payroll and Benefits, By Community of Residence, 2014 Southeast $82,074,000 Ketchikan $ 31,495, 000 Juneau $29,387,000 Haines $5,035,000 Wrangell $3,863,000 Petersburg $2,459,000 Sitka $2,107,000 Metlakatla $1,522,000 Southcentral $17,328,000 Anchorage $3,395,000 Homer $3,395,000 Cordova $1,873,000 Southwest $1,054,000 Other Alaska $234,000 Total Alaska $100,690,000 Source: AMHS estimates based on distribution of employment. Economic Impacts of Alaska Marine Highway System 231 McDowell Group, Inc. • Page IS AMHS Spending Spending by AMHS creates significant jobs and income with Alaska businesses that provide goods and services. This chapter describes AMHS' direct spending in terms of operations and capital expenditures. Operations Spending Operations spending includes expenses associated with keeping AMHS running: fuel, maintenance, and office supplies, for example. • AMHS spent $45.7 million on operations with Alaska businesses in 2014. • Spending occurred with roughly 500 individual businesses throughout the state. • Two-thirds (65 percent) of Alaska operations spending occurred in Southeast; 26 percent in Southcentral; and 8 percent in Southwest. • By community, Juneau represented the most spending at $24.1 million, followed by Cordova ($4.4 million), Anchorage ($4.1 million), Ketchikan ($3.9 million), and Whittier ($2.2 million). • Operations spending did not necessarily reflect traffic levels by community. For example, Anchorage is not an AMHS port, but it received the third -highest amount of spending. Cordova ranks 11 t" in terms of passenger traffic, but second in terms of operations spending, due to fuel purchases. Chart 9. AMHS Operations Spending in Alaska by Region, 2014 Southwest, All other $3.8m Alaska, Table 5. AMHS Operations Spending in Alaska By Region/Community, 2014 Southeast $29,512,000 Juneau $24,117,000 Ketch i ka n $ 3, 935, 000 Skagway $556,000 Petersburg $235,000 Haines $208,000 Sitka $163,000 Southcentral $12,051,000 Cordova $4,430,000 Anchorage $4,093,000 Whittier $2,152,000 Seward $ 728,000 Valdez $166,000 Southwest $3,792,000 Kodiak $3,557,000 Dutch Harbor $180,000 All other Alaska $357,000 Total $45, 712,000 Source: AMHS Economic Impacts of Alaska Marine Highway System 'ric30A McDowell Group, Inc. • Page 16 OPERATIONS SPENDING BY CATEGORY • By expenditure category, fuel, oil, and lube accounted for just over half (52 percent) of all spending. • Services accounted for 30 percent. Examples of services include advertising, engineering, courier, inspections, laundry, stevedoring, plumbing, and snow removal. • Supplies and equipment accounted for 10 percent of spending; travel (which includes lodging, meals, and training) for 4 percent; utilities for 4 percent; and non -categorized expenses for 2 percent. Chart 10. AMHS Operations Spending by Category, 2014 Travel/ Util Training $1.9m Supplies/ Equip., $4.2 Source: AMHS $16_Other, $0.7m Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 17 233 Capital Expenditures Capital expenditures are used to acquire assets or extend the life of existing assets. AMHS capital spending in 2014 consisted primarily of vessel design, construction, refurbishments, and repair; and terminal upgrades and repair. • AMHS spent $38.2 million in Alaska on 37 different capital projects in 2014. • The biggest capital line item was Columbia repower (new engines) at $15.8 million, followed by Alaska Class Ferry construction at $6.2 million, Kennicott refurbishment and upgrades at $6.2 million, Fairweather propulsion system replacement at $3.2 million, and lifesaving equipment upgrades at $2.3 million. S Chart 11. AMHS Capital Spending by Region, 2014 All other Alaska, Source: AMHS. • Southeast accounted for 94 percent of all capital expenditures in Alaska; Southcentral accounted for 4 percent; and all other regions accounted for 2 percent. • Ketchikan alone represented 81 percent of Alaska capital expenditures, primarily attributable to ship- building and repair facilities located at the Alaska Industrial Development and Export Authority (AIDEA)- owned shipyard. Table 6. AMHS Capital Expenditures by Region/Community, 2014 Southeast $36,659,000 Ketchikan $ 30, 804, 000 Juneau $5,598,000 Petersburg $108,000 Southcentral $1,506,000 Anchorage $1,033,000 Seward $ 387,000 Southwest $7,000 All other Alaska $70,000 Total Capital Expenditures $38,242,000 Source: AMHS Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 18 234 Total Expenditures The chart and table below show total expenditures after adding together capital and operations expenditures. • AMHS spent $84.0 million in Alaska in 2014 counting operations ($45.7 million) and capital ($38.2 million) expenditures. • Four -fifths (79 percent) of total Alaska expenditures occurred in Southeast; 16 percent in Southcentral; and 5 percent in Southwest. • The top five communities in terms of total spending were Ketchikan ($34.7 million), Juneau ($29.7 million), Anchorage ($5.1 million), Cordova ($4.5 million), and Kodiak ($3.6 million). All other communities accounted for $1.1 million or less in spending each. Table 7. AMHS Total (Operating plus Capital) Expenditures by Community (Top 10) and Region, 2014 Southeast $66,171,000 Ketch i ka n $ 34, 7 39,000 Juneau $29,715,000 Skagway $582,000 Petersburg $343,000 Haines $210,000 Southcentral $13,557,000 Anchorage $5,126,000 Cordova $4,470,000 Whittier $2,152,000 Seward $1,115,000 Southwest $3,799,000 Kodiak $3,564,000 Other Alaska $427,000 Total Expenditures $83,954,000 Source: AMHS Chart 12. AMHS Total Spending by Region, 2014 Southwest. Other AK. Source: AMHS. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 19 235 Economic Impacts The Alaska Marine Highway System has significant economic impact on the many communities and businesses that rely on it. These economic impacts are distributed throughout Southeast, Southcentral, and Southwest Alaska, touching numerous sectors of the economy. In general, the economic impact of AMHS includes the following: • jobs and labor income for AMHS employees. • AMHS spending with Alaska businesses (vendors) in support of its operations. • All of the indirect and induced employment and labor income effects connected in some way with AMHS. This includes spending by Alaska businesses that serve AMHS, as well as spending by their employees. • Spending by Alaska visitors who sail on AMHS and rely on it as a key aspect of their Alaska trip. This chapter describes and (to the extent possible) measures these economic impacts. Employment and Payroll Impacts Based on detailed analysis of vendor spending and capital project spending, it is estimated that AMHS economic activity created 1,700 Alaska jobs in 2014, including 1,017 in direct jobs and 683 in indirect jobs. AMHS- associated wages totaled $104 million, including $65.0 million in direct wages and $38.7 million in indirect wages. Total spending resulting from AMHS' economic activity is estimated at $273.0 million in 2014, including $184.7 million in direct spending (wages, benefits, and non -personnel operating and capital expenditures) and $88.3 million in indirect spending. Table 8. AMHS Direct and Indirect Economic Impacts, 2014 Direct impacts 1,017 $65.0 $184.7 Indirect and induced impacts 683 $38.7 $88.3 Total impacts 1,700 $103.7 $273.0 Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 20 236 Economic Impacts by Region In terms of direct spending, four -fifths (80 percent) of AMHS spending in 2014 occurred in Southeast Alaska; 17 percent in Southcentral Alaska; 3 percent in Southwest Alaska; and less than 1 percent in other Alaska regions. Direct spending includes capital expenditures, operating expenditures, and payroll/benefits. Table 9. AMHS Total Direct Spending and Payroll by Region, 2014 Southeast $66,171,000 $82,074,000 Southcentral $13,557,000 $17,328,000 Southwest $3,799,000 $1,054,000 Other Alaska $427,000 $234,000 Total Expenditures $83,954,000 $100,690,000 Regional distribution of AMHS employment is similar to spending impacts, with 82 percent of employees residing in Southeast Alaska, 17 percent in Southcentral, 1 percent in Southwest, and less than 1 percent in other Alaska regions. The regional distribution of indirect and induced impacts are dictated by the direct impacts of employment, payroll, and spending. Economic impacts by region are estimated at 81 percent for Southeast Alaska, 17 percent for Southcentral, 2 percent in Southwest, and less than 1 percent in other Alaska regions. $148,245,000 80% $30,885,000 17% $4,853,000 3% $661,000 <1 % $184,644,000 100% Chart 13. Distribution of AMHS Economic Impacts by Region, 2014 Southwest, 2% Economic Impacts of Alaska Marine Highway System McDowell Group, Inc.. Page 21 237 Industry Benefits Role in Alaska's Visitor Industry The Alaska Marine Highway System has long played an integral role in Alaska's visitor industry. AMHS offers a unique mode of independent travel to, from, and within Alaska. Many visitors travel to and/or from the state using the Bellingham, Washington terminal or the Prince Rupert, British Columbia terminal. AMHS offers a flexible and "off -the -beaten path" style of travel, and allows visitors to travel with their vehicle and pets. W, • In 2014, 103,475 visitors traveled on the Alaska Marine Highway, representing 32 percent of all passenger traffic. Visitors brought 27,131 vehicles with them, representing 25 percent of all vehicle traffic. Overall, AMHS carried 4,320 RVs in 2014.2 • Visitors represent higher revenues than Alaska residents on a per -person basis: non-residents represent approximately one-third of all AMHS passenger traffic, yet account for 42 percent of fare revenue.' In the summer of 2011 (the most recent visitor research available), visitors who reported using the ferry to travel to/from Alaska or to travel between communities had the following characteristics.4 • Summer AMHS visitors spent an average of 14 nights in Alaska, much higher than 9- night average reported among all summer visitors. • These visitors traveled widely throughout the state (see chart at right). The most popular region visited was Southeast Alaska (82 percent). Over one-half (55 percent) visited Southcentral Alaska, including 52 percent who visited Anchorage. Nearly one-half (49 percent) visited the Interior, including 37 percent who visited Denali. • AMHS users were highly satisfied with their overall Alaska trip, with 74 percent very satisfied, and another 24 percent satisfied. Chart 14. Top 10 Alaska Communities Visited by Non -Resident AMHS Passengers, 2011 Anchorage 52% Juneau 52% Skagway 46% Ketchikan 40% Denali 37% Haines 35% Fairbanks 30% Seward 29% To k 24% Valdez - 21 % Source: AVSP. 2 Source: AMHS. ' Source: AMHS. 4 Alaska Visitor Statistics Program VI, prepared by McDowell Group for Alaska Department of Commerce, Community, and Economic Development. Economic Impacts of Alaska Marine Highway System 238 McDowell Group, Inc. • Page 22 These satisfied ferry travelers are more likely to spread "word-of-mouth" positive information regarding their trip to Alaska. Nearly all (98 percent) said they are likely or very likely to recommend Alaska to others as a vacation destination. In addition, 64 percent said they planned to return to Alaska at some point in the next five years. VISITOR SPENDING AMHS visitor spending is based on visitor survey data collected in summer 2011. The fall/winter survey sample of AMHS non-resident ferry passengers is too small for analysis and, in any case, represent a comparatively small number of visitors and spending. • AMHS non-resident passengers spent an average of $1,300 per person while in Alaska, not including transportation to enter/exit the state. (They spent an average of $412 per person on ferry tickets.) • In terms of economic impacts attributable to AMHS, it is more accurate to consider the subset of AMHS non-resident passengers for whom the ferry played a critical role in their Alaska trip: those who entered and/or exited the state via the ferry. Among these visitors, the average per -person spending was $1,700 — significantly higher than the average of $941 among all Alaska visitors. • Applying the $1,700 per person average to the estimated number of AMHS non-resident passengers who entered and/or exited the state via ferry (17,000) results in a total spending estimate of $28.9 million. Role in Alaska's Seafood Industry While the exact amount of seafood shipped via AMHS is difficult to estimate, it is clear that ferries are an essential method of transport for a number of seafood companies, which need to get their fresh fish to the road system as quickly and efficiently as possible. AMHS provides a critical alternative to air transport, which can be prohibitively expensive, insufficiently refrigerated, and offers limited capacity. A representative of a Juneau -based seafood company stated that AMHS is "very important" to their business model. They ship significant amounts of seafood from Juneau to Skagway, as well as from Juneau to Bellingham and Prince Rupert, where it gets transferred to long -haul truckers en route to Seattle and Los Angeles. The affordability of AMHS and the higher quality of chilled fish allows them to pay fishermen more per pound. He stated that if AMHS operations were to cease, they would be significantly impacted. A representative of a Cordova seafood processing company stated that his company ships seafood out of Cordova aboard the marine highway three to seven days a week from May to September. The Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 23 239 marine highway system is essential to his business not only for seafood shipment, but also shipment of supplies, parts, and equipment necessary to keep their processing plant running. According to an AMHS representative, the primary ports for seafood shipment are Kodiak, Cordova, Petersburg, Wrangell, and Juneau. Seafood freight disembarks at ports with road access like Homer, Whittier, Skagway, Prince Rupert, and Bellingham. Other Benefits to Alaska Businesses As a key part of the state's transportation infrastructure, AMHS helps reduce Alaska's dependency on out-of- state goods and services. By providing a type of transportation that would be unavailable in most parts of Alaska without public sector support, AMHS encourages purchase of goods and services in -region or in -state and reduces regional and statewide economic leakage (dollars leaving a particular region of the state or the state as a whole). AMHS fosters development of local businesses that ship heavy or bulky items that are also perishable or otherwise time constrained such as produce, seafood, frozen food, construction equipment, and various types of industrial supplies and spare parts. Impact on the Cost of Living in Rural Alaska Communities An unrecognized benefit of the Alaska Marine Highway is its effect on the cost of living in communities served by the system. Ferries provide residents of smaller, outlying communities with improved access to lower -priced goods and services in larger port communities, as well as health care, legal, financial, and other services that may not be available in their hometown. Ferries can accommodate large numbers of passengers on short notice for community and sports events. They are faster at moving freight than barges and much cheaper than airplanes on a dollars per pound basis. As a result, the cost of living in rural areas served by AMHS is lower than it would be without AMHS services. Public Service Benefits of AMHS AMHS is an important, weather -independent link between outlying villages and larger regional healthcare facilities. The system also transports student groups on field trips or in extracurricular activities at a much lower cost than air travel, allowing for more frequent travel. The same is true for cultural and other community events. This travel facilitates interaction between people from different communities and different cultures that would be much less frequent without AMHS. AMHS' role in Alaska's economy is clearly diverse and far-reaching. These impacts can be more clearly articulated at the community level. The following chapter explores the role of AMHS in three "case study" communities: Haines, Cordova, and Angoon. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc.. Page 24 240 AMHS' Role in Coastal Communities It is difficult to generalize about the role of AMHS in local economies, though for a number of communities ferry service is critical. That role varies depending, in part, on the size of the community, the types of local industries, proximity to regional "hub" communities, and availability of alternative transportation modes. Historical social and cultural ties between communities are also a factor. Three communities were selected to help illustrate the role AMHS plays in local economies: Haines, Cordova, and Angoon. Sources of information included AMHS traffic and passenger data and executive interviews with community representatives. Haines Haines plays a unique role in the AMHS system and in Southeast Alaska. Along with Skagway, it provides the region's only access to the statewide road system, linking ferry passengers with the Haines Highway, and to points further north. Among the many markets served by ferry service to Haines are: • Visitors traveling the popular "Golden Circle" route between Haines, Skagway, and Whitehorse • Long -haul visitors traveling between Southcentral/Interior Alaska and Prince Rupert/Bellingham • Day -tour visitors from Juneau and/or Skagway • Juneau (and other Southeast) residents visiting Haines and/or points north • Yukon residents traveling to Southeast Alaska • Military personnel re -locating to/from Alaska • Haines residents traveling to Juneau for health care, travel, major retail purchases, and other services not available in Haines • Haines students traveling for school -related activities Unlike some other Alaska communities with ferry service, Haines does not receive jet air service; it relies on small planes, which have much more limited load capacity than either jets or the ferry, and are subject to frequent weather cancellations. This makes Haines residents particularly reliant on the ferry system for activities like school travel, doctors' appointments, retail purchases, and other essential travel. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 2S 241 The ferry is critical to Haines' visitor industry, which in turn is critical to the community's economy. The last time the visitor industry's economic impact was measured (2001), the industry accounted for 300 local jobs — or roughly one -quarter of local employment (counting direct and indirect impacts).' A more recent study focused on the winter industry found total employment impacts of 100 jobs between October 2013 and April 2014 — essential employment during the economically slow winter period.' While the ferry system is clearly integral to Haines, Haines is also integral to AMHS: Haines carries the second -highest number of AMHS passengers annually, after Juneau (which has 13 times the population of Haines). In 2014, Haines saw nearly 70,000 passengers (either embarking or disembarking) and over 25,000 vehicles (see Chart 15). The three most important port links for Haines passengers and vehicles are Juneau, Skagway, and Bellingham. The map at right shows the number of passengers and vehicles in terms of on/off traffic — for example, 43,631 passengers either embarked in Haines then disembarked in Juneau, or vice versa, along with 14,251 vehicles. The equivalent figure for the Haines- Skagway link is 15,456 passengers and 6,316 vehicles; and for Haines -Bellingham, 6,011 passengers and 2,967 vehicles. Haines is also an essential shipment port, with 574 container vans onloaded or offloaded in 2014. The Haines -Juneau and Juneau -Haines routes have the third and fifth -highest number of vans transported statewide, respectively. Other important van link ports for Haines are Ketchikan and Sitka. Chart 15. Haines AMHS Passenger and Vehicle Traffic, 2014 69,058 25,287 Passengers Vehicles ■ Embarkations ■ Disembarkations Source: AMHS. Figure 4. On -Off Passenger and Vehicle Traffic to/from Haines, Top Three Connecting Ports, 2014 Skagway Haines - Skagway Passengers: 15,456 Vehicles: 6,316 • Haines Haines - Bellingham Haines - Juneau Passengers: 6,011 Passengers: 43,631 Vehicles: 2,967 Vehicles: 14,251 5 Haines Tourism Management Plan, prepared by McDowell Group for the City of Haines, 2002. 6 Haines Winter Visitor Industry Economic Impact and Market Assessment, prepared by McDowell Group for Haines Borough, 2015. Economic Impacts of Alaska Marine Highway System Pzy: McDowell Group, Inc.. Page 26 A chart of traffic by month (see below) reveals the high amount of traffic during the visitor season: passenger embarkations in August, the peak month (7,099) is over five times that of the low month of February (1,319). Chart 16. Haines Passenger and Vehicle Embarkations by Month, 2014 8000 7000 6000 5000 4000 3000 2000 1000 IN IN in 0 IN Jan Feb Mar Apr Source: AMHS. 1 1 111111 May Jun Jul Aug Sep ■ Passengers ■ Vehicles 1. . IN Oct Nov Dec A series of interviews with Haines community leaders revealed the extent to which Haines is dependent on the marine highway. • Tourism: Haines serves a vital role in linking visitors to Southeast Alaska to the road system. According to local tourism representatives, many highway visitors avoid back -tracking; when the ferry is not available, they will skip the drive to Haines altogether. Tourism affects a wide variety of economic sectors: transportation, lodging, tours, retail, and restaurants/bars, for example. Local businesses experience significant repercussions when the ferry schedule is released late, or service is limited. We get traffic going into the interior of Alaska, to Anchorage. We're the gateway to the rest of the state, along with Skagway. When cuts happen to Northern Lynn Canal, it affects all of Alaska. It's important for us that the ferry has space for cars and RVs, is running, has a consistent schedule. We really need to have the ferry running. The ferry schedule has a major effect on our business. About 40 to SO percent of our customers come to Haines because of the marine highway. We felt the impact this year. We lost quite a bit of revenue this year because the ferry schedule was out so late. I'm hearing that the schedule for next year is not very good for Haines. I can feel the difference already in reservations. There's a noticeable change when we don't have ferries. The motel gets very quiet, the town gets very quiet. If ferry service stopped, our business would not survive. The groups we get book a year in advance. We lose whole groups when the ferry schedule changes or is late. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 27 243 • Special events: According to representatives, the ferry is integral to the survival of Haines' primary special events: the Home Brew Festival, the Southeast Alaska State Fair, and the Bald Eagle Festival. Significant portions of attendees use the marine highway to access the event; in the absence of the ferry, the cost, limited capacity, and cancellation risk of air travel would prevent the majority of people from attending these events. Even the schedule release can have an impact: a delay in the ferry schedule resulted in the loss of at least one-third of Bald Eagle attendees in 2015, the majority of them from outside Alaska, who need to plan their trips far in advance. The ferry makes our events attainable, affordable. The Alaska Marine Highway System is the only mass transit option available to Haines from other Southeast communities, and the only affordable way for most people to attend the Fair. The ferry system is really important to our event. We noticed a fairly large decrease in attendance this last year due to some confusion on when the ferry schedule would be released. We had work on the terminal here last year, so we didn't have the extra fast ferry. We saw our first drop in attendance at the State Fair in a decade. We're very concerned about sustainability of our events if the ferry schedule is impacted... If the ferry system were not here, we would have a very difficult time having a regional event. Loss of AMHS ferry service could mean a significant contraction of what is currently a very socially and economically vibrant event. Furthermore, the region would be a significantly poorer, more isolated, and more difficult place to live without it. • School -related travel: Haines students traveling for sports, drama/debate, and other school -related activities are heavily reliant on the ferry system. Traveling by air is an option but prohibitively expensive, and subject to frequent cancellations. According to school district representatives and parents, student activities have already suffered from the recent decline in service, with some trips cancelled. An additional burden associated with service declines is when infrequent ferries force students to take extra days off of school to attend events outside Haines. The ferry schedule has a major impact on school - related travel, and in turn on the students, and their families. It's so hard to travel in the winter, we left on a Tuesday, for an event that started on Friday. We're going to fly one way but the weather is really difficult. To participate in our kids' activities, you have to miss a week of work. When kids interact with other schools and other activities, it's part of a well-rounded education. Without the ferry system, we will truly limit that activity for our kids. We probably use the ferry every week transporting the kids to/from regional events, from 10 to 30 kids... I can't stress enough how important it is. We rely on the ferry all the time. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 28 244 In summary, the ferry's critical role in Haines' economy and way of life cannot be overstated. Many contacts made general statements about the dependence of local residents on the ferry system. If people have a choice of where to live, if people don't have the option of ferry, they're not going to want to live in Haines. You book your whole life around the ferry schedule. The marine highway system is critical to the community as a whole. The ferry is our highway. It's how we get to the rest of our region, Southeast Alaska. Without good ferry service, even though we're on the road, we're stuck. As we try hard to improve the economic status of our community, if we can't count on the ferry system, that puts a wrench in the plans. The ferry is a critical part of our success or failure... This is our road system. It just happens to be on the water. AMHS expenditures and employment in Haines represent additional impacts in the community. • AMHS employed 51 Haines residents in 2014, accounting for $5.0 million in wages and benefits. • AMHS spent $209,000 with Haines businesses in 2014, including $207,000 in operational expenditures and $2,000 in capital expenditures. Cordova Table 10. AMHS Employment and Spending in Haines Number of AMHS employees 51 Payroll and benefits $5.0 million Total expenditures $209,000 Operational expenditures $207,000 Capital expenditures $2,000 Source: AMHS Cordova, a community of 2,200 on Prince William Sound, is heavily reliant on AMHS for transportation of both goods and residents. The ferry is particularly critical to the local commercial fishing and seafood processing industries. Cordova hosts a fleet of more than 450 commercial fishing vessels and a number of processing plants; in 2014, more than 41 million pounds of salmon was harvested by Cordova residents.7 Other key industries in the community include government, education, health care, and tourism. The US Forest Service and the US Coast Guard maintain operations in Cordova. Ferry service plays a unique role in the shipment of freight to and from Cordova. While much of the freight arriving in the ' Commercial Fisheries Exchange Commission. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 29 245 community is shipped via barge service from the Lower 48, Cordova retailers use AMHS service to ship freight from Anchorage. During the summer visitor season, ferry service is used by travelers to Cordova, embarking from either Whittier or Valdez. While the community does have daily jet service, the ability to take a vehicle on the ferry enables residents to transfer goods from the Kenai Peninsula, Anchorage, and the Mat -Su Valley. Residents also purchase vehicles and get them serviced via AMHS. In addition to these markets, ferry service supports the following activities: • Commercial fishermen use the ferry to transport nets, line, equipment, and other supplies from the Kenai Peninsula, Anchorage, Mat -Su Valley, and other locations to Cordova. • Seafood processors transport fresh fish from Cordova to Chart 17. Cordova AMHS Passenger processing plants in Anchorage and other locations. and Vehicle Traffic, 2014 Processing employees, equipment, and supplies are transported to Cordova, mainly from Whittier. 24,198 • Medical travel, primarily to Anchorage, is a common usage of AMHS by Cordova residents. • Local stores move non-perishable items (dry goods, construction supplies, furniture, etc.) into Cordova using the ferry. • Students use the ferry to travel to sport, academic, and other events. • Conferences and festivals in Cordova benefit from increased travel options into Cordova. In 2014, more than 24,000 passengers and 10,000 vehicles embarked and/or disembarked in Cordova (see Chart 17). Four -fifths (83 percent) of 2014 passenger embarkations at Cordova were by Alaska residents. Whittier is the primary destination for Cordova residents and travelers. In 2014, roughly 21,000 passengers and nearly 9,000 vehicles traveled to/from Whittier and Cordova. Valdez saw approximately 3,500 passengers and nearly 1,200 vehicles arrive from or depart to Cordova in the same period. Container vans either on loaded or off loaded at Cordova totaled 259. The most important factor driving traffic to Whittier is the port's proximity to Anchorage. While Valdez is 300 road -miles from Anchorage, the distance from Whittier to Anchorage is 60 road -miles. 10,157 M 0 Passengers Vehicles ■ Embarkations Disembarkations Source: AMHS. Figure 5. On -Off Passenger and Vehicle Traffic to/from Cordova, Top Two Connecting Ports, 2014 Cordova - Valdez Passengers:3,466 Valdez Vehicles: 1, 174 • Whittier Cor • Cordova - Whittier Passengers: 20,727 Vehicles: 8,983 Economic Impacts of Alaska Marine Highway System McDowell Group, Inc.. Page 30 246 Similar with other AMHS ports, ferry volume is much higher in the summer. By month, passenger embarkations peaked in August of 2014 at 1,846, more than five times the amount of the lowest month (February; 346 embarkations). Chart 18. Cordova Passenger and Vehicle Embarkations by Month, 2014 2000 1800 1600 1400 1200 1000 800 600 400 200 '0 Jan Feb Mar Apr May Jun ■ Passengers Source: AMHS. .11 Jul Aug Sep Oct Nov Dec Vehicles Interviews were conducted with local leaders to gain a better understanding of the impact ferry service has on Cordova. A number of themes emerged from these discussions, summarized below. • Seafood processing: Cooper River Seafoods uses ferry service to transport fresh seafood from Cordova to Whittier, where it is then trucked to a processing plant in Anchorage. The facility supports 250 seasonal and 100 full-time jobs in Anchorage. Other seafood processors in the community use the ferry service as well. In 2014, we spent over a million dollars on Alaska Marine Highway System services. We ship our own trucks on the ferry three to seven times a week from early May until late September. We transport fresh fish and equipment from Cordova to Whittier. From Whittier to Cordova, we transport groceries, packaging materials, processing supplies, spare parts, and equipment daily to keep our Cordova plant operational. Both directions transport employees to and from Cordova. Our fresh products need to be on the market ASAP. Any delay in the process has a negative impact on our sales. The only fast option besides the fast ferry is air travel, which is many times more expensive. Copper River Seafoods uses the ferry to move millions of pounds of fresh seafood from Cordova to Anchorage during the months of May through October. Ferry service helps keep costs low which in turn makes it economical to bring this resource to Anchorage for value-added processing. The alternative is to take this product directly to Seattle for processing, eliminating hundreds of Alaskan positions. There is a severe shortage of airfreight capacity out of Cordova requiring us to rely heavily on the ferry to make those connections in Anchorage. We know many people living and working in regions of Alaska served by the ferry system rely heavily on it and have likely expressed their concerns to the reductions in services. We feel it is also very important to discuss the effect these reductions have on businesses both of the region and the greater State of Alaska. If we are unable to economically move our fish from Cordova to Whittier we will not have the ability to return the highest value for those fish. We will be forced Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 31 247 to freeze fish that would have been worth more in a fresh state, depressing the value returned to the fishermen and the State. Freezing fish will allow us to ship it to Seattle to be further processed both reducing its value while also moving Alaskan jobs out of state. • Commercial fishing: Commercial fishermen are heavily reliant on the ferry service to move supplies. The most activity occurs in the spring and fall when fishermen are preparing for or finishing the seine and driftnet salmon fisheries in Prince William Sound. Ferry service is fairly affordable; more affordable than having fishermen commercially ship what they need. Fishermen from around the state come to Cordova each summer. The ferry allows movement of nets, equipment, and supplies in and out of the community. • Tourism: Ferry use is highest during the summer, attributable in part to visitors. Representatives stated that without ferry service, the local hospitality industry would be severely damaged. Reliable service was another theme which emerged from discussions; if tourists are not able to plan ahead because of uncertainty surrounding the ferry service, many will cancel. We lost thousands of dollars this summer in canceled booking after the ferry service limited service. When tourists come to Cordova they spend money in the community. Every cancelation is lost income for local businesses. We have been trying to expand our tourism business around the fast ferry. The fast ferry is an attraction itself; tourists like riding it. Many tourists come by ferry because it is cheaper than flying. Because our visitor season is so short, even a week of cancelations is extremely harmful to us. • Community sustainability: Interviewees discussed how much they value being able to travel to the road system by ferry. A number of contacts mentioned that easy access to Anchorage allows residents to reduce "cabin fever." One source noted one of the reasons their family moved to Cordova was because the ferry service provided travel options. We looked at a number of locations in Alaska to move to once we decided our kids should be raised in a small town. In addition to other factors, we chose Cordova because of quick access to Anchorage. It is great for people in Cordova to be able to take a trip in the winter. Even just a day trip to Anchorage is enough to feel rejuvenated after weeks of rain and darkness. Economic Impacts of Alaska Marine Highway System 248 McDowell Group, Inc. • Page 32 The ferry is important to the culture of our community. Many people have great memories of traveling somewhere on the ferry. Without reliable transportation, it is difficult to attract professionals to Cordova. You talk to most employers in town, they will tell you that AMHS is absolutely critical to recruitment and retention of employees. It's a big selling feature. • Impact on Anchorage: The impact of Cordova resident's spending in other Alaska communities, primarily Anchorage, was noted by many contacts as a result of ferry service. It is common for residents to do their shopping in Anchorage and bring purchases back on the ferry. Many in the community schedule these trips around medical appointments. The ferry is our highway. It allows us to spend money in Anchorage —I probably spend $2,000 to $3,000 per trip on groceries, clothes, and household products. And I make five to seven trips per year. But with the unreliable ferry service I am starting to purchase groceries on Amazon Prime; I am purchasing more stuff from Seattle. If I have to fly over to Anchorage for a medical appointment, I may as well go to Seattle. Cheaper medical cost and just a few more hours on the plane. We had an informal meeting with some of the local businesses. We estimated we spend $10 to $1 S million per year in Anchorage. • School -related travel: Cordova students traveling for sports, drama/debate, and other school -related activities nearly always use the ferry. While flying is an option, the price is much higher: one contact estimated it was three times more expensive to fly than take the ferry. The ferry service really allows our kids to participate in statewide activities. Without ferry service we would have to fly our students out, and I don't know if we could afford that. We want our student to be exposed to different people, cultures, perspectives, and events. In summary, ferry service plays an important role in Cordova's economy and culture. Interviewees made general statements about the dependence the community has on the ferry system. The ferry is threaded into everything we do. We have been building our economy around the marine highway, especially the fast ferry, for over 10 years. The Coast Guard relies on the ferry system. They use the ferry system to bring people/supplies in and out. I'm actually starting to buy more items through Amazon, especially as ferry service becomes unreliable. Any reduction in ferry service will result in higher prices in local stores. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 33 249 AMHS expenditures and employment in Cordova represent additional impacts in the community. • AMHS employed 19 Cordova residents in 2014, accounting for $1.9 million in wages and benefits. • AMHS spent $652,000 with Cordova businesses in 2014, including $612,000 in operational expenditures and $40,000 in capital expenditures. Angoon Table 11. AMHS Employment and Spending in Cordova Number of AMHS employees 19 Payroll and benefits $1.9 million Total expenditures $652,000 Operational expenditures $612,000 Capital expenditures $40,000 Source: AMHS Angoon is the only permanent, year-round community located on Admiralty Island is Southeast Alaska. In 2014, Angoon's population was estimated at 446.8 W TA.&A6,4 A Nearly 90 percent of the population are Tlingit, and many 1 residents support themselves through a subsistence lifestyle.9 Local government, education, and health care are key sources of wage and salary jobs, and tourism provides a number of jobs during the summer months. Lacking both regularly scheduled barge service and an airport, transportation to and from the community is limited. AMHS ferry service and float planes are the only options for residents, businesses, and other organizations to transport goods and passengers to and from Angoon. As one of the few Alaska communities without an airport, Angoon is particularly reliant of AMHS service, especially when float planes are not able to fly. Ferry service helps support the following business and resident activity: • Lodges use the ferry service, when possible, to transport supplies from other Southeast communities, primarily Juneau. • Schools regularly transport books, furniture, and food from Juneau. • Students use the ferry to travel to sport, academic, and other events. • Businesses restock using AMHS service to ship wholesale items into Angoon. • Shopping/recreation by Angoon residents is supported by ferry service which allows travel to other communities. • Medical travel, primarily to Juneau, is a critical usage of the ferry by Angoon residents. 8 US Census. 9 US Census. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 34 250 In 2014, more than 8,300 passengers and nearly 1,900 vehicles embarked or disembarked in Angoon (see chart at right). While Angoon's traffic is low compared to most other AMHS ports, it is high relative to population. Out of 28 AMHS ports not connected by road, Angoon has the fourth - highest ratio of population to traffic. For every one resident, there are 9.6 passenger embarkations annually. Container van traffic to or from Angoon included 142 vans in 2014, primarily traveling to/from Juneau and Hoonah. On a per capita basis, Angoon is one of the communities most dependent on AMHS freight service. Juneau is the primary destination for Angoon residents and travelers (see map at right). In 2014, more than 6,608 passengers and nearly 1,494 vessels traveled to/from Juneau and Angoon. Other important ports for Angoon include Hoonah and Sitka, accounting for 500 and 776 passengers in 2014, respectively. In contrast to other AMHS port communities, Angoon ferry volume does not exhibit significant seasonal fluctuation (see chart, below). The primary reason for this is a relatively limited visitor industry and limited nearby commercial fishing activity. In 2014, peak embarkations of 488 passengers occurred in October, and average monthly embarkations was approximately 330 passengers. Chart 19. Angoon AMHS Passenger and Vehicle Traffic, 2014 8,327 Passengers ■ Embarkations Source: AMHS. 1,877 Vehicles uuuui Disembarkations Figure 6. On -Off Passenger and Vehicle Traffic to/from Angoon, Top Three Connecting Ports, 2014 Angoon- Juneau Hoonah Passengers: 6,608 Vehicles: 1,494 Angoon - Hoonah Passengers: 500 Vehicles: 237 Angoon - Sitka Passengers; 776 Vehicles: 146 Angoon Chart 20. Angoon Passenger and Vehicle Embarkations by Month, 2014 600 500 400 300 200 100 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ■ Passengers Vehicles Source: AMHS. Economic Impacts of Alaska Marine Highway System ON McDowell Group, Inc.. Page 35 Interviews were conducted with local leaders to gain a better understanding of the impact ferry service has on Angoon. A number of themes emerged from these discussions. • Community sustainability: Many contacts affirmed AMHS' vital importance to the community. We basically have no other options besides the ferry. We have no barge landing and no airport. We get the mail plane three times a week in the summer, two times a week in the winter. When the weather is bad and the mail stacks up, mail is placed on the ferry. If AMHS stopped service, the population would drop substantially. It is extremely difficult to attract and retain employees in Angoon. If ferry services were limited, this would have a huge impact on our local workforce. • Impact on other communities: With limited local retail and grocery stores, interviewees said it is common for residents to shop in other Southeast communities. Several contacts pointed to the economic impact occurring from Angoon residents spending money in these communities. Most people make a trip over to Juneau at least once a month where they buy food, supplies, and maybe go to a medical appointment. Our residents spend a lot of money outside Angoon. We purchase about 40, 000 gallons of fuel each year from a company in Petersburg. • Reliable service: A number of contacts explained reliable service was the most important factor AMHS should be considering. We have not been able to schedule guest movement on the ferry because it is not reliable. Instead we charter planes and vessels at a substantial cost to our lodge. Sure the fast ferry is great, but if it is tied up to the dock because of rough weather, what is its value? We don't need a fast ferry; we need a reliable ferry. We could get by with ferry service once a week. Maybe even once every two weeks. But we need it to be reliable. In summary, ferry service plays an important role in Angoon's economy and culture. Interviewees made the following additional statements about the dependence the community has on the ferry system. It is really difficult to put a coffin in a plane. Ferry service allows us to return our loved -ones to Angoon when they pass away in other communities. As a local business owner, I would be willing to pay more for ferry service. This community will not survive without AMHS. Floatplanes can't always fly. Usually the ferry is reliable enough to make it through weather planes can't fly in. If we lost ferry service our business would likely go bankrupt having to deal with increased shipping cos ts. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 36 252 Impacts of Reduced AMHS Service This report details the many and diverse ways AMHS impacts Alaska's economy. As the State of Alaska considers various ways to close its budget gap, it is important to consider the role of AMHS from another perspective: what happens to Alaska's communities and residents when AMHS reduces service? Following are the types of impacts that can be expected from reduced ferry service. • Loss of return on investment: For every dollar of General Fund money not budgeted to AMHS, there will be $2.30 less economic activity in Alaska. • Loss of AMHS employment and wages: Communities like Ketchikan and Haines, small towns with relatively high AMHS employment (and less diversified economies), will be particularly hard hit by AMHS employment and wage cuts. • Loss of AMHS spending with local businesses: Cuts to AMHS service will affect a wide range of Alaska businesses that AMHS makes purchases from, such as engineering firms, fuel companies, shipyards, and food suppliers. • Loss of spending by non-residents: Fewer ferries means fewer out-of-state visitors traveling to Alaska's coastal communities and spending money there on lodging, retail, transportation, and tours. These outside -sourced dollars are particularly valuable as they generate new jobs and income for Alaska residents, and impact a wide variety of economic sectors. • Reduced seafood shipment capacity and loss of income to fishermen: Reduced AMHS service will negatively impact seafood processing companies and, in turn, the fishermen from whom they purchase products. • Increased cost -of -living in coastal communities: Fewer ferries will lead to increased cost of goods, as communities scramble to find other ways of transporting goods in and out — groceries, construction equipment and supplies, household goods, and more will all cost more as transportation costs rise. • Decline in quality of health due to limited access: With fewerferries, residents of coastal communities will be forced to fly to access the health care they need — and many may choose to postpone care, or may decide they cannot afford the associated airfare costs. • Fewer and/or shorter regional special events including cultural events: Many regional events, such as the Southeast Alaska State Fair (Haines), Celebration (Juneau), and the Copper River Wild Salmon Festival (Cordova), rely on AMHS to transport significant portions of their attendees. The cost and limited capacity of air service would preclude many attendees from participating, and the local economy would lose valuable visitor spending. Further, residents would miss out on these unique opportunities to interact with, do business with, and learn from each other. • Reduced school -related travel: Reduced AMHS service will limit the opportunities for students in coastal Alaska to compete in sporting events, attend performing arts events, and attend student Economic Impacts of Alaska Marine Highway System McDowell Group, Inc. • Page 37 253 leadership training, among other school activities. Air service is often prohibitively expensive for schools and students, and subject to weather cancellations. Students in coastal Alaska will suffer from a reduced ability to participate in these enriching and valuable activities. In conclusion, the impacts of reduced AMHS service will be broad and far-reaching, affecting a diverse range of Alaska residents, businesses, and organizations. The economies of Alaska's smaller and more isolated coastal communities will be particularly hard hit. Economic Impacts of Alaska Marine Highway System McDowell Group, Inc.. Page 38 254 Appendix Case Study Contacts HAINES Fred Bretthauer, Haines Hitch -Up RV Park Jessica Edwards, Southeast Alaska State Fair and Great Alaska Craft Beer and Home Brew Festival Mike Gainy, Alaska Marine Lines Jan Hill, Mayor of Haines Borough Alison Jacobson, Alaska Fjordlines Cheryl Katsik, Captain's Choice Motel Leslie Ross, Haines Convention and Visitors Bureau Sarah Swinton, Olerud's Market Center Tiana Taylor, Haines School District Samanth Wolson, American Bald Eagle Foundation CORDOVA John Bitney, City Lobbyist Jennifer Gibbons, The Cordova Times, Cordova Chamber of Commerce Barb Jewel, School Board President Jim Kasch, Cordova Mayor Martha Nichols, Prince William Motel Alex Russin, Cordova School District Superintendent Cassandra Squibb, Copper River Seafoods ANGOON Albert Howard, Angoon Mayor Jim Parkin, Angoon School Principal Mark Powers, Whaler's Cove Lodge Shane Thompson, Angoon Trading Post Maxine Thompson, former Angoon Mayor, Angoon Oil & Gas, Marine Transportation Advisory Board Additional Contacts Allison Cheeseman, Commercial Service Manager, AMHS Reservations Jim Erickson, Alaska Glacier Seafoods Economic Impacts of Alaska Marine Highway System McDowell Group, Inc.. Page 39 255 Resolution 2023-020 Updating The Mobile Vendor And Roving Vendor Policy For Permitting Vendors On City -Owned Property Documents: • Agenda Statement • Resolution 2023-020 • Attachments: - Mobile & Roving Vendor Policy - Mobile Vendor Location Maps - Roving Vendor Application - Mobile Vendor Application P47: City Council Agenda Statement Meeting Date: February 13, 2023 To: City Council From: Brenda Ballou, City Clerk Agenda Item: Resolution 2023-020: Updating The Mobile Vendor And Roving Vendor Policy For Permitting Vendors On City -Owned Property Background and justification: The city's Mobile & Roving Vendor Program began in 2014, and had some success in the early years. In 2018 and 2021, improvements were made to the program in response to feedback received from the participants. In 2022, the city issued the most permits to date for this program — seven locations out of eight were permitted. For 2023, there is interest in expanding the program to include two new locations — one near Branson Pavilion, and one at Benny Benson Park. This will enable up to ten (10) Mobile Vendors to be permitted for the summer season. In addition to adding two new locations, the policy has been consolidated where there were similarities for both mobile and roving vendors (previously the policy was redundant), and there have been updates and clarifications made to simplify the language that will help potential vendors understand the program more effectively. The policy is in keeping with the program provisions set forth in Ordinance 2014-004 which established the program. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Economic Development 3.1.1 Strategic Plan: Vision, Page 2 Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted Not applicable 257 Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): General SMIC Boat Harbor Parking Motor Pool Other Unassigned Fund Balance*: Available Unrestricted Cash Balance*: Electric Wastewater Water F1 Healthcare Finance Director Signature: *unaudited numbers Attorney Review-' Administration Recommendation RxYes x Adopt Resolution Not applicable Other: 258 Sponsored by: City Clerk CITY OF SEWARD, ALASKA RESOLUTION 2023-020 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, UPDATING THE MOBILE VENDOR AND ROVING VENDOR POLICY FOR PERMITTING VENDORS ON CITY -OWNED PROPERTY WHEREAS, the city enacted Ordinance 2014-004 on May 27, 2014, which created a new program allowing mobile and roving vending on city -owned property; and WHEREAS, each year since the program began, there has been more and more interest in the program and over time, improvements have been made in response to vendor requests and feedback; and WHEREAS, Resolution 2014-048 set forth the policy which outlined the rules and requirements for administering the program; Resolution 2018-039 amended the program by adding an eighth location, changing the application period to make it more convenient to vendors, and relocating one of the mobile vending locations to make it more visible to customers; and, Resolution 2021-044 amended the policy to create a "first right of refusal" renewal process for returning vendors; and WHEREAS, based on feedback from vendors throughout the 2022 summer season, this resolution will further update the policy to meet the needs of business owners, consolidate the policy information to make it easier to understand, and add two new locations to the program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The Seward City Council hereby adopts the updated Mobile and Roving Vendor Policy as attached herein. Section 2. The Mobile Vendor locations maps have been updated to add two new locations and are approved as attached herein. There is no change to the Roving Vendor maps previously approved by council. Section 3. The applications for the Mobile and Roving Vendor Program are approved as attached herein. Section 4. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 131h day of February 2023. O City of Seward Mobile & Roving Vendor Policy The purpose of this policy is to provide rules and regulations for the Mobile and Roving Vendor Program on city -owned property. This policy is developed in accordance with Seward City Code Section 15.10.140 (Definitions) and Section 15.10.226 (Land Uses Allowed and Land Uses Allowed Table) and is provided to prospective vendors as part of the application packet. APPLICATIONS Applications & Fees Permits shall be issued on a first -come, first -served basis. Applications will be date- and time - stamped as they are received and will be processed by city clerk's office in the order in which they are received. New Applications New applications for a vending permit will be accepted by the city clerk beginning March Ist each year for the current year. Exception: Applications for Mobile Vending at Locations 6 & 7 at SMIC may be submitted at any time throughout the year. Renewal Applications Returning vendors may submit a renewal application for the same location they were permitted for the previous year beginning February 15th. In this regard, returning vendors have the "first right" to return to their prior year's location. Exception: Renewal applications for Mobile Vending Locations 6 & 7 at SMIC may be submitted beginning December Ist Fees Application Fee. A $50 non-refundable application fee is required to initiate a new or renewal application. Permit Fee. Once the application is approved, the vendor will remit a $250 permit fee and the permit shall be issued by the city clerk's office. Wait List For mobile vendors, applications for multiple permits may be submitted in order to be put on the waitlist for different locations. If an applicant is issued a mobile vendor permit for one location, they may remain on other waitlists for any other locations and will have the option of changing locations, provided they surrender their current location with written notification to the city clerk. Separate applications and application fees for each location are required. If a vendor surrenders a permit for one location in order to receive a permit for a new location, a separate permit fee is required. Program established by Ordinance 2014-004 Policy Updated by Resolution 2023-020 Page 1 260 City of Seward Mobile & Roving Vendor Policy Application Processing Applications must be completed within a sixty (60) calendar day period. This period begins upon written notice from the city clerk's office to the applicant that their application is being processed. From the date of that written notice, the applicant has sixty (60) days in which to satisfy the application requirements. Applications must include the following in order to be complete: • Application form filled out completely and $50 application fee paid; and • Certificate(s) of Insurance — CGL and WC (if applicable), plus additional as may be required by the city's risk manager; and • Two color photos of the vendor's operation set up; and • Measurements of operations (length and width); and • Proof of a current City of Seward business license; and • Indemnification statement signed. If these criteria are not satisfied within the sixty (60) day processing period, the application becomes null and void and the next application on the waitlist will be taken up and processed. In addition, a permit which has been issued, but which has been revoked or suspended or which has been voluntarily vacated by the permittee, shall also cause the next application on the waitlist to be taken up and processed. Permit Term The term of all vendor permits shall be from May 1 to October 31. Exception: Mobile Vendor Locations 96 & 97 at the Seward Marine Industrial Center (SMIC) shall be valid from date of issuance or January 1, whichever is later, through December 31. Permits Generally Permits are non-transferrable and are not eligible for subleasing. Vendors may surrender their permit at any time by submitting a written statement to the city clerk. INSURANCE Insurance Review A review of the permit application will be conducted by the city's risk manager (in consultation with the city's insurance provider, if applicable). Commercial General Liability Insurance - Required for all Mobile & Roving Vendors Each vendor shall be required to provide a Certificate of Insurance with the City of Seward as an Additional Insured for a Commercial General Liability policy with coverage for $2 million aggregate/$1 million per occurrence. Workers Compensation Insurance If the business has employees, state law requires Workers Compensation insurance. The City of Seward may require the vendor provide a Waiver of Subrogation. Program established by Ordinance 2014-004 Policy Updated by Resolution 2023-020 Page 2 ►41.1 City of Seward Mobile & Roving Vendor Policy The Alaska Workers' Compensation Act requires each employer having one or more employees in Alaska to obtain workers' compensation insurance, unless the employer has been approved as a self -insurer by the Alaska Workers' Compensation Board. Effective August 1, 2019, the following business owners/executives are exempt from having to insure themselves for workers' compensation liability: • Sole proprietor of a sole proprietorship; • Partners in a partnership; • Members of a limited liability company with a minimum 10% ownership interest; • Executive officers of municipal, religious, and legally registered nonprofit corporations are not considered to be employees unless the corporation specifically elects to cover them; and • Executive officers of for -profit corporations with a minimum 10% ownership interest. All entities listed above must still maintain workers' compensation coverage for employees, including family members and friends. In Alaska, workers' compensation insurance is provided either by the voluntary commercial market or the involuntary commercial market. Alaska does not have a state fund for workers' compensation insurance. Employers should contact their insurance agent or broker for assistance in acquiring a workers' compensation policy for their business. If a person is unable to obtain coverage from a commercial carrier, they may purchase insurance through Alaska's Assigned Risk Pool, which is administered by the National Council on Compensation Insurance (NCCI). NCCI may be contacted at 800-622-4123 and found online at: https://www.ncci.com. (Source: State of Alaska/DOLWD/Workers' Compensation) Commercial Auto Insurance - Required for all Roving Vendors May also be required for Mobile Vendors, if determined by the city's risk manager. Proof of Viable Insurance Policy If the vendor's insurance policy expires at any time during their permitted operation period, the vendor shall provide the clerk's office with an updated policy before the expiration date of the current policy. Failure to do so shall result in the permit being revoked. OTHER Food Safety & Sanitation Food vendors must comply with all state and federal regulations necessary for proper food handling requirements as prescribed by the Alaska Division of Environmental Health. Indemnification Prior to acceptance of their permit, each vendor shall execute an instrument under the terms of which the permittee shall agree to indemnify, defend, and hold harmless the City of Seward from any and all claims for injury or damage to persons or property suffered in connection with vendor activities. This clause is included on the permit application form and, when signed by the applicant, becomes binding upon issuance of the permit. Program established by Ordinance 2014-004 Policy Updated by Resolution 2023-020 Page 3 ►41M City of Seward Mobile & Roving Vendor Policy Waste Management Vendors shall keep their site free of litter at all times. Trash may not be deposited in any trash bin or receptacle owned by the city or privately owned without express permission from its owner. Traffic Laws Vendors must park their vehicles and equipment within the traffic patterns recommended by staff and in accordance with all traffic laws. Suspension Or Revocation Of Permit And Appeals In addition to the requirements of a mobile and or roving vendor listed in this policy and in Seward City Code Section 15.10.225, the city clerk may revoke, suspend or otherwise restrict a permit for the same reasons listed for business licensing in Seward City Code Section 8.30.035. The Seward Police Department has the right to close down or relocate a vendor if vending is causing or contributing to an imminent public safety hazard. Additionally, the permittee will have the same hearing and appeal rights as outlined for a city business license in SCC 8.30.035 and 8.30.040. ROVING VENDORS Permits Multiple roving vendor permits are allowable. Locations The City of Seward shall limit the number of roving vendors to four (4). Seward City Code 15.10.225(d)(1) designates roving vendors shall not vend on any public street where the legal speed limit exceeds 25 miles per hour, or on Fourth Avenue between Port Avenue and Van Buren Street, and also excluding that portion of Fourth and Fifth Avenues between Jefferson Street and Railway Avenue. Please refer to Maps attached to this policy for specific route exclusions. Hours of Operation The hours of operation will be 6:00 a.m. to 10:00 p.m. Program established by Ordinance 2014-004 Policy Updated by Resolution 2023-020 Page 4 263 City of Seward Mobile & Roving Vendor Policy MOBILE VENDORS Permits Only one mobile vending permit per person or business may be issued at any given time. Locations The City of Seward shall designate mobile vending locations and boundaries within city limits as follows: 1. Washington Street — 10 x 20 feet 2. Waterfront Park Campground (South) — 10 x 20 feet 3. Waterfront Park Campground (North) — 10 x 20 feet 4. South Harbor Uplands — 10 x 20 feet 5. Permit -Only Parking Lot on Fourth Avenue in Harbor — 10 x 20 feet 6. Seward Marine Industrial Center (South) — 20 x 20 feet 7. Seward Marine Industrial Center (North) — 20 x 20 feet 8. Ballaine at Wellington Park 9. Branson Pavilion — 10 x 20 feet 10. Benny Benson Park — 10 x 20 feet Please refer to Maps attached to this policy for specific site locations. Each site's boundaries will be clearly marked and will be signed as a designated mobile vending location with the hours of allowable operation. Vendors are required to operate within their designated areas only. Hours of Operation The hours of operation are 6:00 a.m. to 10:00 p.m. Exception: Location 91 (Washington Street) is designated in the downtown business district and is permitted to operate between 10:00 p.m. and 6:00 a.m. Serve to Sidewalk Location 91 (Washington Street) must serve to the sidewalk located on Washington Street. Location 95 (Permit -Only Parking Lot) must serve to the sidewalk located on Fourth Avenue. Blackout Periods Location 91 (Washington Street) will not be permitted to operate during the Annual Fourth of July Festival conducted by the Seward Chamber of Commerce and Visitors' Bureau. Location 94 (South Harbor Uplands) will not be permitted to operate on the day scheduled to set up the fireworks event during the Annual Fourth of July Festival conducted by the Chamber of Commerce and Visitors' Bureau. Program established by Ordinance 2014-004 Policy Updated by Resolution 2023-020 Page 5 264 1. c. i a. t i 170 R Y Y Va N P - , F—L w. M r ' rl Location 1 ' i l��l� 'ai � •�i z y 1� oa n. M Washington Street Resolution 2023-020 Mobile Vendor Locations N Vendor Space Size 10 x 20 feet Vendor spaces are not to scale. Map 0 45 90 180 Feet Due to different data sources property lines and aerial imagery do not overlay correctly. Map is to be used for orientation and reference purposes only. 1 Mapping Assistance by Alaska Map Company, LLC 265 • Irww'T" "I'll Location 3 Location 2 Waterfront Park Resolution 2023-020 Mobile Vendor Locations N Vendor Space Size 10 x 20 feet Vendor spaces are not to scale. Map 0 50 100 200 Fee Due to different data sources property lines and aerial imagery do not overlay 2 Mapping Assistance by Alaska Map Company, LLC correctly. Map is to be used for orientation and reference purposes only. 266 M n Q j Pr .Y L , 1 y� 4a � rIkk v � , ., 4 MiN Po u , oil —v t Location 4 Location 5 !017 r I 1. d �1 I Y Mr South Harbor Uplands Resolution 2023-020 Mobile Vendor Locations N Vendor Space Size 10 x 20 feet Vendor spaces are not to scale. +' Map 0 70 140 280 Feet Due to different data sources property lines and aerial imagery do not overlay 3 Mapping Assistance by Alaska Map Company, LLC correctly. Map is to be used for orientation and reference purposes only. 267 Location 7 "b AM Location 6 Vq 1A EI Seward Marine Industrial Center Resolution 2023-020 Mobile Vendor Locations N Vendor Space Size 20 x 20 feet Vendor spaces are not to scale. Map 0 100 . 200 400 Fee Due to different data sources property lines and aerial imagery do not overlay 4 Mapping Assistance by Alaska Map Company, LLC correctly. Map is to be used for orientation and reference purposes only. I 268 M 016 e e flq .- vn' �. v .• .�rp� a ri n y a , ,,��y.y a r•'�t Y»t! lo .04 4 , . 1 Location 10 foal mv 00 n , _i s. a - a. "1]°I e f w r M1 ' ,t Or s. Benny Benson Memorial Area Resolution 2023-020 Mobile Vendor Locations N Vendor Space Size 10 x 20 feet Vendor spaces are not to scale. +' Map 0 40 80 160 Feet Due to different data sources property lines and aerial imagery do not overlay 7 Mapping Assistance by Alaska Map Company, LLC correctly. Map is to be used for orientation and reference purposes only. 271 �6 2023 Roving Vendor Permit APPLICATION Check ONE: ❑ NEW Application (March I") ❑ RENEWAL Application (Feb 15th) Business Name: The name of the business MUST match the city business license name. Applicant Name: Mailing Address: PO Box Seward, AK 99664 or other: Phone: ( ) - E-Mail: 2023 City of Seward Business License 4: How many employees does this business have? Check ONE: ❑ Only Myself ❑ One+ Other Note: With few exceptions, Alaska law requires that each employer having employees working in Alaska carry a workers' compensation insurance policy which specifically covers their Alaskan exposure. For more information, contact the Alaska Division of Workers' Compensation at (907) 465-2790 or www.labor.alaska.gov/wc . I certify, to the fullest extent permitted by law, I agree to defend, pay on behalf of, indemnify, and hold harmless the City of Seward, its elected and appointed officials, employees and volunteers and others working on behalf of the City of Seward against any and all claims, demands, suits, or loss, including all costs connected therewith, and for any damages which may be asserted, claimed or recovered against or from the City of Seward, its elected and appointed officials, employees, volunteers or others working on behalf of the City of Seward, by reason of personal injury, including bodily injury or death and/or property damage, including loss of use thereof, which arises out of or is in any way connected or associated with this mobile vendor permit. Applicant's PRINTED Name Dated: Applicant's Signature ►AF`: �6 2023 Roving Vendor Permit APPLICATION Describe the type of pre -packaged foods you are vending: Measurements of vehicle set up: Length x Width Note: Two color photos taken from different angles clearly showing the vending operations set up must be submitted with this application. Please read each item below and initial each item: I have sixty (60) days to complete this application with the City Clerk's office. I must display my permit in a prominent location on my vehicle. I can operate from 6:00 a.m. to 10:00 p.m. I must comply with all traffic laws. I must vend on public streets, parked within one foot of the curb or edge of the street, and I must serve to the side which is away from moving traffic. I may not remain stopped in one position for more than 30 minutes. I may not stop in any area where the speed limit exceeds 25 mph. I may not vend on Fourth Avenue between Port Avenue and Van Buren Street, nor on Fourth and Fifth Avenues between Jefferson Street and Railway Avenue. I received information about rules for allowable signage. This permit may be revoked for non-compliance. I will report any concerns or issues I have to the city clerk immediately. 273 �6 2023 Mobile Vendor Permit APPLICATION Check ONE: ❑ NEW Application (March I") ❑ RENEWAL Application (Feb 15th) Business Name: The name of the business MUST match the city business license name. Applicant Name: Mailing Address: PO Box Seward, AK 99664 or other: Phone: ( ) - E-Mail: 2023 City of Seward Business License 4: Desired Location: F F 2 1 F 3 1 F 4 1 F 5 1 F 6 1 F Pick ONE Washington Street Waterfront (South) Waterfront Harbor Harbor SMIC SMIC Wellington (North) Uplands Permit Lot (South) (North) F 9-1 Fi-o Benny Benson Park Branson Pavilion How many employees does this business have? Check ONE: ❑ Only Myself ❑ One+ Other Note: With few exceptions, Alaska law requires that each employer having employees working in Alaska carry a workers' compensation insurance policy which specifically covers their Alaskan exposure. For more information, contact the Alaska Division of Workers' Compensation at (907) 465-2790 or www.labor.alaska.gov/wc . I certify, to the fullest extent permitted by law, I agree to defend, pay on behalf of, indemnify, and hold harmless the City of Seward, its elected and appointed officials, employees and volunteers and others working on behalf of the City of Seward against any and all claims, demands, suits, or loss, including all costs connected therewith, and for any damages which may be asserted, claimed or recovered against or from the City of Seward, its elected and appointed officials, employees, volunteers or others working on behalf of the City of Seward, by reason of personal injury, including bodily injury or death and/or property damage, including loss of use thereof, which arises out of or is in any way connected or associated with this mobile vendor permit. Applicant's PRINTED Name Dated: Applicant's Signature 274 �6 2023 Mobile Vendor Permit APPLICATION Describe your operation. Check ALL THAT APPLY: 111 use a motorized vehicle (car, truck, etc.) to TRANSPORT my equipment. While I am operating, the vehicle is parked (either within my allotted vending space or in an authorized parking space outside my allotted space). My vehicle is NOT part of my operations. ❑ My motorized vehicle is REQUIRED for my operations or my operations are completely contained within my motorized vehicle and my vehicle fits completely within my allotted space. ❑ I use a pop-up tent as part of my operations. ❑ Other — please describe: Measurements of operations set up: Length x Width Note: Two color photos taken from different angles clearly showing the vending operations set up must be submitted with this application. Please read each item below and initial each item: I have sixty (60) days to complete this application with the City Clerk's office. This permit affords me with a dedicated space assignment and my operations must be completely contained within that space. I must display my permit in a prominent location at my site. This permit allows me to operate during specific hours of the day only. I must set up and take down my vending operation daily; no items may be left or stored during off hours. I am responsible for providing waste receptacles within my space for the proper disposal of customer and business waste; disposal of waste in a city dumpster is prohibited. I received information about rules for allowable signage. This permit may be revoked for non-compliance. I will report any concerns or issues I have to the city clerk immediately. ►AF&.7 Action Memorandum 2023-001: Accepting the Resignation of Brandii O'Reagan from the Port and Commerce Advisory Board and Directing the City Clerk to Advertise the Vacant PACAB Seat Documents: • Action Memorandum 2023-001 • Attachments: o Resignation Email M12, City of Seward Action Memorandum 2023-001 Meeting Date: February 13, 2023 To: City Council From: Janette Bower, City Manager Subject: Action Memorandum 2023-001: Accepting the Resignation of Brandii O'Reagan from the Port and Commerce Advisory Board and Directing the City Clerk to Advertise the Vacant PACAB Seat Background and justification: On January 25, 2023, PACAB Chair O'Reagan submitted her written resignation from the Board. The vacancy will be filled for the remainder of the term, which will expire July 2023. PACAB will be voting to appoint a new Chair during their March 1 meeting. This action memorandum approves the following: 1. Accept the resignation of Chair O'Reagan. 2. Directs the City Clerk to notice the vacant Board seat. SCC 2.30.315 - Terms of office; filling vacancies: A. Members of the port and commerce advisory board shall be appointed for a term of three years; provided, that the terms of initial appointments shall be staggered so that as nearly as possible a pro rata number of members shall be appointed for each year. B. The council may appoint any qualified person to fill a vacancy of any member of the board provided that the appointment shall be for the unexpired term of the vacancy. C. Following a member's absence from three consecutive regular meetings of the board, the remaining board members shall decide whether the board member should be retained or whether to request council appointment of a new member. D. Members shall not be paid for services on the board or participation in board activities without prior approval of the city council. (Ord. 512, 1982; Ord. 93-23; Ord. 2000-13, § 2, 2000) Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ This legislation (✓): eCreates revenue in the amount of: $ Creates expenditure in amount of: $ 277 Creates a savings in the amount of: $ x Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Affected Fund (✓): General SMIC Boat Harbor Parking Motor Pool Other Fund Balance Information Electric Wastewater Water F1 Healthcare Note: amounts are unaudited Fund Balance/Net position — restricted $ Fund Balance/Net position — unrestricted/unassigned $ Available Unrestricted Cash Balance: $ Finance Director Signature: Not applicable Attorney Review RYes Attorney Signature: Not applicable Comments: Administration Recommendation xeAdopt AM Other: Disposition (Completed by the City Clerk's Office) 278 From: To: Cc: Subject: Date: Kris Peck Janette Bower; Stephen Sowell Brenda Ballou FW: PACAB Wednesday, January 25, 2023 10:05:45 AM Dear Council and PACAB, Brandii O'Reagan has asked the Clerk's Office to share this letter with you: ---------- Forwarded message -- From: Brandii O'Reagan <sewardgana gmail.com> Date: Wed, Jan 25, 2023 at 10:25 AM Subject: PACAB To: Brenda Ballou <bballouna cityofseward.net> Brenda - Please forward this message to City Council and PACAB. Dear Council and PACAB members, It has been an honor to serve on the PACAB board for the last year and a half. PACAB is made up of a group of people with the biggest heart for Seward and its community that I have come across during my years of living in Seward. It is with deep regret that I am forced to tender my resignation from the board. My employment has taken me away from Seward, and while I will be back and forth in the next three months, my health and time spent in the hospital combined with work absence will make me an ineffective leader and member of the board. It is never easy to say good bye to a community but I know that this board is strong and ready to respond to the needs of Seward. Thank you all for your time and dedication to the town and home that I love and will miss. Sincerely Brandii O'Reagan 279 Ordinance 2023-002 Amending Seward City Code Title 2 — Administration Documents: • Agenda Statement • Ordinance 2023-002 or -it, City Council Agenda Statement Meeting Date: January 23, 2023 To: City Council From: Brenda Ballou, City Clerk Agenda Item: Ordinance 2023-002: Amending Seward City Code Title 2 — Administration Background and Justification: The purpose of this ordinance is to complete the update for Title 2 part of the city's recodification effort. In 2022, several ordinances were enacted to amend portions of Title 2, and this ordinance is intended to update the remaining portions. Key: The Source column indicates who brought the change forward (Atty=City Attorney, Mgr=City Manager, DH = Department Head, Clerk=City Clerk) Code Citation Source Amendment 2.01.015 Atty Strike entire section; the city is required to have WC insurance by state law; no need to address this in city code. 2.01.020 b 18 Atty, Mgr New item referencing a Charter provision. 2.05.030 Atty Updating in accordance with AS 40.25.122 2.10.010 Atty Strike entire section; already covered by Charter 2.2. 2.10.015 Atty Strike entire section; already covered by Charter 3.1 and 3.2. 2.10.051 Atty Strike entire section; already covered by Charter 3.5. 2.10.056 B Clerk Items 1 and 2 striken; already covered in Charter 2.13. 2.10.066 Clerk Added additional items to the Order of Business 2.10.110 Atty Strike entire section; already covered by Charter 3.7. 2.15.010 Atty Language added to cover giving direction in executive session as allowed under the Alaska Open Meetings Act. 2.15.015 Atty, Clerk Clarifying language added. 2.15.040 Atty, Clerk Clarifying language added. 2.20.010 Atty Strike entire section; already covered by Charter 5.3. 2.20.015 Mgr Strike entire section. 2.20.020 Atty, Clerk Strike entire section; already covered by Charter 2.6. 2.20.030 Atty, Clerk Strike entire section; AML/1IA confirmed in writing that the city manager bond is no longer necessary. 2.20.035 9 Clerk Updating reference to code, per Ord 2021-001. 2.20.035 10 Mgr Updating reference to code. 2.20.040 (1) Clterk Clarifying language added. 2.20.045 (10) & 11 Atty, Clerk Confusing language deleted. 2.25.030 Mgr, DH, Atty, Clerk Strike entire section to eliminate "Engineering and Construction Department". 2.25.035 Mgr, DH, Atty, Clerk Strike entire section to eliminate "Engineering and Construction Department". 2.25.030 Mgr, DH, Create new section for Building Department. Wl Atty, Clerk 2.25.035 Mgr, DH, Create new section for Building Department. Atty, Clerk 2.25.037 DH, Atty, Mgr Updating language as appropriate; adding new language for Building Official. 2.25.040 Atty, Clerk Striking language that refers to a deleted portion of code. 2.25.050 Atty, Clerk Striking language that refers to a deleted portion of code. 2.25.055 DH, Atty Updating language for Fire Department. 2.25.065 DH, Atty, Clarifying language added. Clerk 2.25.070 Mgr Updating title from manager to director. 2.25.070 Atty, Clerk Striking language that refers to a deleted portion of code. 2.25.085 (11) & DH, Atty Updating language as appropriate. 12 2.25.090 Atty, Clerk Striking language that refers to a deleted portion of code. 2.25.095 DH, Atty Updating language as appropriate. 2.25.150 Clerk Clarifying language added. 2.25.155 Clerk Clarifying language added. 2.25.160 DH, Mgr, Atty, Clerk Create new section for Information Technology Department. 2.25.165 DH, Mgr, Create new section for Information Technology Department. Atty, Clerk 2.30 Article 1 Atty, Clerk Strike but Reserve. 2.30.100 Atty, Clerk Strike entire section. 2.30.310 Article Clerk Updating for consistency with Article 2 updates made in 2022. 3 2.30.320 a Atty Clarifying language added. 2.30.320 c Atty Strike a portion of language; already covered by AS 44.62.310. 2.30.325 Atty, Clerk Updating language as appropriate. 2.30.330 Atty, Clerk Strike entire section; assume the continuation of PACAB is no longer in uestion. 2.30.410 Article Clerk Updating for consistency with Article 2 updates made in 2022. 4 2.30.410 Clerk Add new footnote to explain what "36CFR 61" means. 2.30.420 Atty Strike a portion of language; already covered by AS 44.62.310. 2.35.010 Clerk Clarifying language added. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 2.2.8 and 3.7.1.3: Continue to review and update the city code. Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ This legislation (✓): Creates revenue in the amount of: $ Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): QYA Budgeted Line item(s): Not budgeted Not applicable Finance Signature: Attorney Review N/A Yes Attorney Signature:'co__—� Not applicable Comments: Administration Recommendation e✓ Adopt Ordinance Other: 283 Sponsored by: City Clerk Introduction: January 23, 2023 Public Hearing: February 13, 2023 Enactment: February 13, 2023 CITY OF SEWARD, ALASKA ORDINANCE 2023-002 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING SEWARD CITY CODE TITLE 2 — ADMINISTRATION WHEREAS, in May, 2020, Seward City Council approved Resolution 2020-040 to review, update, and recodify Seward City Code; and WHEREAS, there are 16 Titles contained in Seward City Code; and WHEREAS, due to the sheer volume of material to be reviewed, it is more efficient and reasonable to provide the changes in smaller, more manageable portions for consideration; and WHEREAS, in 2022, council enacted several ordinances to update portions of Title 2, including: Ordinance 2022-004, Amending Seward City Code Chapter 2.30 Boards And Commissions, Article 2 Seward Planning And Zoning Commission By Enacting Section 2.30.217 Staff Assistance To Commission And Providing For Housekeeping Amendments; Ordinance 2022-009, Amending Seward City Code Section 2.25.045 Finance Department; and, Ordinance 2022-011, Amending Seward City Code Chapter 2.10 City Council To Integrate The Rules From The City Council Rules Of Procedures And To Provide For Clarifying Amendments; and WHEREAS, this ordinance is focused on the remainder of Title 2 — Administration and reflects input from the city manager (including department heads), city attorney, and city clerk and will complete the recodification for Title 2. NOW, THEREFORE, THE CITY OF SEWARD ORDAINS that: Section 1. Seward City Code Title 2 — Administration is hereby amended as follows: (Deletions = Bold ; Additions = Bold Italics Underlined.) TITLE 2 - ADMINISTRATION Chapter 2.01. - General Provisions 2.01.010 - Injuries to persons and property. (a) Any employee of the city involved in any occurrence resulting in injury to property or persons other than city property or city employees, or any city employee witnessing such an occurrence, shall: 284 SEWARD, ALASKA ORDINANCE 2023-002 (1) Immediately secure or provide emergency care for injured persons in the same manner as would an average prudent person; (2) Immediately secure or provide emergency warning devices to prevent further injury to property; (3) Immediately thereafter report such occurrence in writing to the chief of police on forms provided by the city and including any additional information he may require; (4) In case of serious injury, verbal notice shall be given immediately to the city manager; and (5) The complete report describing in detail the above -stated elements of a potential claim against the city and including names and addresses of witnesses shall be referred to the city manager and the city clerk. (b) No employee of the city may acknowledge liability in damages for injury to persons or property. (c) Any occurrence involving injury to both a city employee and city property and to persons other than city employees or other than city property shall be reported and processed in compliance with the procedures applicable to both worker's compensation and public liability insurance and the foregoing. 2.01.015 Worker's benefits. eompensation sieliness, disability or death of its offieers or employees arising out of and during the eour-s-e of their- employment. Claims shall be filed with the eity eler-li, subjeet to the time find by the Alaska Worker's Compensation Aet Alaska Statut as preseribed 22.2�Q. and 2.01.020 - Conflict of interest. (a) For the purposes of public disclosures required by this section, "municipal officers" shall include the mayor, councilmembers, the city manager, and Seward planning and zoning commissioners. These municipal officers shall be required to complete the financial disclosure statement form, as prescribed and approved by resolution by the city council, when initially applying for a vacant elected or appointed position, and annually thereafter so long as they hold the position. A city manager shall file the disclosure statement within thirty (30) days after the first day of employment. (b) Code of ethics for municipal officers. 1. For purposes of this section "city municipal officers" shall include the mayor, council members, city manager, city clerk, city attorney, and Seward planning and zoning commissioners. 2. City municipal officers, while acting in such capacity, shall not knowingly make false statements to influence official action. 3. City municipal officers shall not seek office or position or use their office or position for the purpose of obtaining anything of value for the official, an immediate family member, or a business owned by the council member or in which the council member holds an ►Z11 SEWARD, ALASKA ORDINANCE 2023-002 interest, or for the purpose of influencing any matter in which the council member has a substantial financial interest. 4. City municipal officers shall not use the implied authority of office or position for the purposes of unduly influencing the decisions of others or promoting a substantial personal interest within the community except when discussing in a public meeting a matter before the body. Municipal officers shall refrain from using their title except when duly representing the city in an authorized capacity. Unless expressly authorized to represent an official position of the city or a body of the city, municipal officers shall refrain from implying their individual representation is that of the City of Seward by the use of their title. 5. City municipal officers shall not, for compensation, represent or assist those representing private business or personal interests before the city council, administration, or any borough board, commission or agency. Nothing herein shall prevent a municipal officer from making verbal or written inquiries on behalf of constituents or the general public to members of the city council or from requesting explanations or additional information on behalf of such constituents. No municipal officer may solicit or accept a benefit or anything of value from any person for having performed this service. 6. City municipal officers may not disclose information they know to be confidential concerning employees of the city, city property, city government, or other city affairs, including but not limited to confidential information disclosed during an executive session, unless authorized or required by law to do so. 7. City municipal officers may not engage in business or accept employment with, or serve as a state elected or appointed official or render services for persons where that activity, office, or position is incompatible with the proper discharge of the municipal officer's duties or would tend to impair the municipal officer's independence of judgment in performing their duties. 8. For one year after leaving office, city municipal officers shall not hold any compensated city office or employment that was created, or the salary or benefits of which were specially increased, in a vote by the council during the last year the member was in office. 9. City municipal officers shall not accept a gratuity from any person engaging in business with the council or having a substantial financial interest in a decision pending with the city. No municipal officer shall give a gratuity to another municipal officer for the purpose of influencing that person's opinion, judgment, action, decision, or exercise of discretion as a council member. This subsection does not prohibit accepting: a. A meal of reasonable value; b. Discounts or prizes that are generally available to the public or large sections thereof, c. Gifts presented by an employer to its employees in recognition of meritorious service, or civic or public awards; d. A lawful campaign contribution made to a candidate for public office; e. An occasional gift of insignificant value; f. Any gift which would have been offered or given to the officer even if the officer were not a municipal officer. or-i: SEWARD, ALASKA ORDINANCE 2023-002 10. City municipal officers may not use, request or permit the use of city vehicles, equipment, materials or property for any non -city purpose, including but not limited to private financial gain, unless that use is available to the general public on the same terms or unless specifically authorized by the council. This subsection does not prohibit de minimis personal use. 11. An employed municipal officer may not take an active part in a non -city sanctioned political campaign or other political activity when on duty. Nothing herein shall be construed as preventing such municipal officers from exercising their voting franchise, contributing to a campaign or candidate of their choice, or expressing their political views when not conspicuously representing the city. Similarly, any municipal officer may not take an active part in a political campaign or other political activity during an official meeting. 12. City municipal officers are strongly encouraged to dress in business casual attire at council meetings. Business casual is defined as relating to or denoting a style of clothing that is less formal than traditional business wear, but is still intended to give a professional and businesslike impression. 13. City municipal officers may not place items on the dais in such a manner as to outwardly display to the public anything of an ideological nature. Ideological is defined as based on or relating to a system of ideas and ideals, especially concerning economic or political theory and policy. 14. City municipal officers may not attempt to influence another municipal officer's vote or position on a particular item through contact with the municipal officer's employer or by threatening financial harm to another municipal officer. 15. A city manager who has or may have a substantial personal or substantial financial interest in an official action shall disclose the facts concerning those interests to the city council prior to taking the official action. If the council determines the manager has a substantial personal or substantial financial interest in the action, the council shall excuse the manager and assign another city employee to the matter. The city administration may adopt written policies setting forth additional standards and requirements for excusing the manager and assigning another city employee to the matter. Such written policies will be approved by the city council. 16. Perhaps the most fundamental role of a council member is communication. Council members will communicate with the public to assess community opinions and needs, and to share the vision and goals of the city with constituents, and will also communicate with staff to provide policy direction and to gain an understanding of the implications of various policy alternatives. 17. Official correspondence may be requested from council by citizens, businesses, or other public agencies; the mayor shall have the authority to transmit the city's position on policy matters to outside agencies on behalf of council, upon informing council of the request and receiving no objection thereto. City letterhead is available for this purpose and shall be coordinated through the city clerk and or city manager to ensure appropriate retention. Council members who wish to prepare letters of recommendation for students or others ►NFA SEWARD, ALASKA ORDINANCE 2023-002 seeking employment or appointment may do so and may use their council title, clearly indicating that they are speaking on their own behalf and not for council as a whole. 18. The city council delezates to the city manazer the authority to address with any council member, the member's potential violation of Charter Section 3.7. If, after the city mana,-er has addressed the potential violation, the city council member's actions continue, the city manazer shall report the matter to the full city council. Chapter 2.05. - Records 2.05.010 - Open records. Except as provided by § 2.05.030 of this code, or by other provision of municipal, state or federal law, the books, records, papers, files, accounts, writings and transactions of the city are open to inspection by the public under reasonable rules during regular office hours. The city recognizes the competing interest of personal privacy and the right of the public to have access to information concerning the conduct of the people's business. 2.05.015 - Access and inspection of records. (a) Public records may be inspected at the city office where the records are kept during the regular office hours of that office. All city officers and employees shall, consistent with the orderly conduct of city business, make a good faith and diligent effort to respond to requests for inspection of records made pursuant to this code. (b) Except as otherwise provided in this section, the fee for copying public records may not exceed the standard unit cost of duplication established by the city and shall be set by city council resolution. The resolution may also contain a separate fee schedule for providing electronically -generated public records, to be based on recovery of the actual incremental costs of providing the electronic record. (c) If the production of records for one requester or agent of a requester in a calendar month exceeds five person -hours, the city shall require the requester to pay the personnel costs required during the month to complete the search and copying tasks. The personnel costs may not exceed the actual salary and benefit costs for the personnel time required to perform the search and copying tasks. The requester shall pay the fee before the records are disclosed, and the city may require payment in advance of the search. (d) The city may reduce or waive a fee if the city determines that the reduction or waiver is in the public interest. Fee reductions and waivers shall be uniformly applied among persons who are similarly situated. The city may waive a fee of $5.00 or less if the fee is less than the cost to the city to arrange for payment. 2.05.020 - Certified copies. The city clerk shall give, on request and payment of costs, a certified copy of any public record required to be disclosed under this code. A fee may be charged for certified copies, reflective of the actual costs involved in providing the certification, to be set by city council resolution. 288 SEWARD, ALASKA ORDINANCE 2023-002 2.05.025 - Compilation or creation of records. Nothing in this code shall require the city to create records, compile, summarize, outline or in other ways create information from existing public records. In those instances where the city official who is the custodian of the record determines that the city has the requisite resources to compile or create records to comply with a request for information, the city may charge the requestor with the costs of such compilation or summary, which costs shall include the salary and benefits and overhead charges for the city employees who accomplished the work. 2.05.027 - Personal and proprietary records available for public disclosure. (a) If the city official who is the custodian of a record that is subject to public disclosure considers all or a portion of the information requested to be of a sensitive personal or proprietary nature, he may attempt to notify any party who is the subject of the record or may be concerned with its pending release. Failure to notify shall not be grounds for action against the city or its employees. (b) If an objection to release of the record is filed, the city shall delay release of the record for five working days in order to provide time for the objecting party to seek appropriate restrictions on release of any portions of the record. 2.05.030 - Exemptions for particular records. (a) This chapter shall not be construed to require disclosure of the following records or information which, by law, are required to be confidential: (1) Records of vital statistics and adoption proceedings; (2) Records pertaining to juveniles unless disclosure is authorized by law; (3) Medical and related public health records; (4) Records required to be kept confidential by a federal law or regulation or by state law; (5) Records required to be kept confidential under 20 U.S.C. 1232g and the regulations adopted thereunder in order to secure or retain federal assistance. (b) This chapter shall not be construed to require disclosure of the following business and proprietary records or information: 1. Trade secrets, patented and/or copyrighted material; 2. Records held by the city or any public utility pertaining to any client, customer, tenant, operator, user or subscriber, the release of which would constitute an unwarranted invasion of privacy of that person or entity; 3. Records of engineering, marketing, accounting or other technical or financial data, which, if released, would provide a competitive advantage to any other persons or business engaged in similar or related activities; 4. Proprietary information which a manufacturer, consultant or provider reasonably expects to be kept privileged or confidential to protect the property interests of persons providing the information or data; and 5. Personal information other than name and address given to the city with the legitimate expectation of privacy in conjunction with licenses, permits or other municipal services. 289 SEWARD, ALASKA ORDINANCE 2023-002 (c) This chapter shall not be construed to require disclosure of the following law enforcement records or information: 1. Records or information compiled for law enforcement purposes, but only to the extent that the products of the law enforcement records or information: a. Could reasonably be expected to interfere with enforcement proceedings; b. Would deprive a person of a right to a fair trial or an impartial adjudication; c. Could reasonably be expected to constitute an unwarranted invasion of the personal privacy of a suspect, defendant, victim, or witness; d. Could reasonably be expected to disclose the identity of a confidential source; e. Would disclose confidential techniques and procedures for law enforcement investigations or prosecutions; f. Would disclose guidelines for law enforcement investigations or prosecutions if the disclosure could be expected to risk circumvention of the law; or g. Could reasonably be expected to endanger the life or physical safety of an individual. 2. Name, address, telephone number or other identifying information about complainants in actions to enforce building, zoning, environmental or other municipal ordinances or regulations. This subsection does not protect from disclosure the contents of the complaint, so long as the complainant is not identifiable; or, the name of the complainant when such disclosure becomes necessary to fair and just disposition of the charge or complaint in enforcement proceedings. (d) This chapter shall not be construed to require disclosure of the following personnel records or information: 1. City personnel records, including employment applications and examination materials, financial status, medical records which reveal the medical status of any specific individual and, in addition, those records the disclosure of which would constitute an unwarranted invasion of privacy. This subsection does not protect from disclosure the following personnel information: a. Employment applications and examination materials of city officials appointed by the city council; b. The names and position titles of all city employees; c. The position held by a city employee; d. Prior positions held by a city employee; e. Whether a city employee is in a collective bargaining unit; f. The dates of appointment and separation of a city employee; and g. The compensation authorized for a city employee. A city employee has the right to examine the employee's own personnel files and may authorize others to examine those files. 2. Information which municipal governments engaged in collective bargaining regularly consider to be privileged or confidential for purposes of successful collective bargaining. (e) This chapter shall not be construed to require disclosure of the following privileged records or information: 290 SEWARD, ALASKA ORDINANCE 2023-002 1. Communications between any agency and the city attorney which contain legal questions concerning potential, pending or actual litigation. This subsection does not protect from disclosure documents that were public records prior to the commencement of the litigation, and public records that are otherwise subject to disclosure may not be protected from disclosure by mere submission to the attorney. Any documents marked "confidential" which are submitted to the agency from the municipal attorney's office shall only be produced if the city attorney so authorizes. With respect to a person involved in litigation, the records sought shall be disclosed in accordance with applicable court rules; and 2. Information obtained by and in the custody of insurance carriers insuring the city and their attorneys and agents regarding possible and pending claims against the city. (f) This chapter shall not be construed to require disclosure of records or information specifically prepared for or produced during a legally convened executive session; provided, however, that public records which are otherwise subject to disclosure may not be protected from disclosure by mere submission during an executive session. O This chapter shall not be construed to require disclosure of public records to a person involved in litigation. All such records sou,-ht shall be disclosed in accordance with the rules ofprocedure applicable in a court or administrative adiudication. In this section, "involved in litigation" means a party to litigation or representing a party to litigation, includin- obtaining public records for the party. 2.05.032 - Filing of exempt records. City records classified as exempt from public disclosure under section 2.05.030 shall be maintained in files providing a physical separation from general city records subject to public review. 2.05.035 - Denial of request; appeal. A. If the city official who is the custodian of a record considers the information requested to be privileged or confidential pursuant to applicable federal, state or city law, within ten working days of receiving the request he shall prepare and provide the party requesting the information a written statement setting forth the following information: 1. Date; 2. Item of information requested; 3. The specific provision of applicable state, federal or city law exempting the requested information from disclosure; 4. The title and signature of the person withholding the information; and 5. The right of the requester to appeal the decision pursuant to subsection (b) herein. B. In the event aparty is denied access to requested information under the provisions of subsection (A) of this section, he may submit a written appeal within ten days to the city manager. Failure to timely appeal will result in a waiver of any subsequent right of appeal. Within ten days of receiving the appeal, the city manager shall issue a written response to the requester, either granting or denying the appeal and notifying the requester of his right to appeal the decision to the city council at the next regular or special scheduled meeting occurring at least 30 days Qs SEWARD, ALASKA ORDINANCE 2023-002 following the date of the appeal. The city council shall issue a written decision within 30 days of hearing an appeal, which shall be the final and binding authority. The final decision of the city council is appealable to the Superior Court pursuant to the rules of procedure governing appeals to the Superior Court. 2.05.037 - Notice regarding personal information. A. When the city requests personal information that may be included in a public record directly from the person who is the subject of the information, the city shall give the person a written notice at the time of the request that states: 1. The name and address of the city department; 2. The citation of the statute or regulation that authorizes the city to request the information; 3. A statement indicating whether the person is required to supply the information; 4. The consequences to the person, if any, of not providing all or part of the requested information; 5. A statement of the city's anticipated uses of the information, including the city's internal uses of the information and disclosure of the information to other city departments; 6. The fact that the information may be subject to inspection and copying under Seward City Code Chapter 2.05; and 7. A statement summarizing how aperson may challenge under section 2.05.038 the accuracy or completeness of personal information maintained by the city. B. This section does not apply to a request for information on a person if: 1. The request is made by a police officer; 2. The person is a city employee; 3. The information is related to litigation; 4. The information is being collected by the city when investigating a possible violation of law; or 5. The information is exempt from inspection and copying under section 2.05.030. 2.05.038 - Challenging accuracy of personal information. A. A person who is the subject of personal information that is maintained by the city and not exempt from public disclosure under section 2.05.030 may challenge the accuracy or completeness of the personal information. B. To challenge the accuracy or completeness of personal information under subsection (a) of this section, the person must file with the city a written request that the personal information be changed. The request must provide: 1. A description of the challenged personal information; 2. The changes necessary to make the personal information accurate or complete; and 3. The person's name and the address where the city may contact the person. C. Within 30 days after receiving a written request made under subsection (b) of this section, the city may request verification of the disputed personal information from the person who made the request. PUPA SEWARD, ALASKA ORDINANCE 2023-002 D. Within 30 days after receiving the written request under subsection (b) of this section or the verification under subsection (c) of this section, the city shall review the request and: 1. Change the personal information according to the request and notify the person in writing of the change; or 2. Deny the request and notify the person in writing of the reasons for the decision and the name, title, and business address of the person who denied the request. E. If a request is denied under subsection (d) of this section, the person may provide to the city a concise written statement that states the person's reasons for disagreeing with the decision. The city shall maintain in its records the request made under subsection (b) of this section and the statement provided by the person under this subsection. On all of the city's records that contain the disputed information, the city shall clearly note which portions of the records are disputed. If the record is in electronic form, the city may note the dispute in one field of the electronic form and maintain the other information about the dispute in paper form. F. This section does not apply to criminal intelligence or criminal investigative records, city personnel or retirement system records, records of applicants for employment with the city or information in documents recorded under AS 40.17. 2.05.040 - Records retention and disposal schedule. A general government records retention and disposal schedule, meeting all requirements set by state and federal law, shall be established by resolution of the council and shall be administered by the city clerk. Chapter 2.10. - City Council 2.10.005 Composition. The city council is composed of one mayor and six council members who are elected at large. 2.10.007 Powers and duties generally. The city council shall exercise all of the legislative and policy -making powers of the city and shall provide for the performance of all duties and obligations imposed upon the city by law. 2.10.012 Term of office. The term of office of each council member shall be for three years and shall commence immediately before the council organizes following the council member's election. 293 SEWARD, ALASKA ORDINANCE 2023-002 2.10.020 - Organization of council; election of vice -mayor and seating arrangement. A. The city council shall meet and organize not later than thin (30) days after each regular city election. B. At the organizational meeting, the council shall elect one of its members to act as vice mayor in the absence of the mayor and the mayor shall make all appointments as required of the mayor. C. Council members shall occupy their respective seats in the council chamber assigned to them. The seats shall be assigned so the vice mayor sits on the left-hand side of the mayor and other members are seated in order of seniority with those newest council members filling the outermost seats on the dais. 2.10.025 - Duties of mayor, vice -mayor, acting mayor. A. Mayor. 1. The mayor shall: a. Possess all powers and shall exercise all duties required by law or the city council. He shall be presiding officer of the council; b. Be presiding officer of the council at all council meetings and recognized as the head of the city for all ceremonial purposes. c. Be a member of council with all powers and duties of that office. 2. The mayor has no regular administrative or executive duties. 3. The mayor shall not possess veto power. B. Vice mayor. 1. In the absence of the mayor, the vice -mayor shall possess all the powers of the mayor. 2. The vice mayor shall possess all duties provided for or required by law or the city council. C. Acting mayor. 1. In the absence of the mayor and the vice mayor, and if a quorum is present, the council shall choose one of its members to serve as acting mayor for that session or until the appearance of the mayor or vice mayor. 2. The acting mayor shall possess all duties provided for or required bylaw or the city council. 2.10.027 Public meetings. A. All city council meetings, except for executive sessions, are open to the public and, with the exception of executive sessions, shall be recorded in accordance with Charter Section 5.5. ME SEWARD, ALASKA ORDINANCE 2023-002 B. The public shall be given a reasonable opportunity to be heard at all regular and special meetings. 2.10.030 - Meetings. A. Regular meetings. 1. Regular city council meetings shall be held in the Seward City Hall council chambers, unless otherwise designated by the council. 2. Regular city council meetings shall be held on the second and fourth Mondays of each month at 7:00 p.m.; provided that any regular meeting may be canceled by the affirmative vote of at least four council members. B. Special meetings. 1. Special meetings may be called by the city clerk on written request of the mayor, city manager or of any two members of the city council. 2. Notice of the special meeting will be prepared in writing by the clerk. The notice must contain the time, place, and business to be transacted. 3. No business shall be transacted at any special meeting of the council except that stated in the meeting notice. 4. Special meetings shall be held at the regular meeting place of the council or at such other place as may be specified in the meeting notice. The location of the special meeting shall be selected with consideration for the reasonable accommodation of the public. C. Emergency meetings. 1. In an emergency, any special meeting held for the purpose of addressing an emergency shall be a legal meeting if all members are present, or if there be a quorum present and all absent members waived, in writing, the required notice requirements. 2. Waivers may be before or after the time of the meeting. 3. A waiver shall be made a part of the journal of the meeting. D. Work sessions. 1. Upon written request of the mayor, city manager, or any two members of the city council, council may hold work sessions for the purposes of planning, studying and discussing any question permitted by law. 2. No action shall be taken by the council on any matters discussed in the work session until the matter is placed on a regular or special meeting council agenda. 3. Work sessions shall generally be held in the regular meeting place of the city council; however, the council may designate any other location provided that consideration is given to the reasonable accommodation of the public. E. Recessed meetings. The council may recess any of its regular or special sessions to a time not beyond the next regular meeting; and the city clerk shall publish the time and date to which recessed in the best manner. F. If, after having been lawfully assembled in a properly designated location, the council determines that a condition exists which renders the location unsuitable, the council may recess the meeting and reconvene at a different location suitable to the needs of the council. The SEWARD, ALASKA ORDINANCE 2023-002 location to which the meeting shall be reconvened shall be made known publicly prior to recess and notices shall be posted at the place originally designated by the city clerk. 2.10.033 Executive session. A. If permitted subjects will be discussed at a meeting in executive session, the meeting must first be convened as a public meeting and the question of holding an executive session to discuss matters that are within the exceptions of subsection (D) of this section shall be determined by a majority vote of the council. B. The motion to convene in executive session must clearly and with specificity describe the subject of the proposed executive session without defeating the purpose of addressing the subject in private. C. Subjects may not be considered at the executive session except those mentioned in the motion calling for the executive session unless auxiliary to the main question. D. Action may not be taken at an executive session, except to give direction to an attorney or labor negotiator regarding the handling of a specified legal matter or pending labor negotiations. E. Upon adoption of a motion stating the purpose for an executive session, the council in closed session may discuss: 1. Matters, the immediate knowledge of which would clearly have an adverse effect upon the finances of the public entity; 2. Subjects that tend to prejudice the reputation and character of any person, provided the person may request a public discussion; 3. Matters which by law, municipal Charter, or ordinances are required to be confidential; 4. Matters involving consideration of government records that by law are not subject to public disclosure. F. This section does not apply to quasi-judicial boards when holding a meeting solely to make a decision in an adjudicatory proceeding. 2.10.36 Meetings —Time restrictions, uncompleted agenda. A. Adjournment time —mandatory. 1. The council shall take no official action or address any other item on the agenda after 11:00 p.m. and shall adjourn any regular or special meeting no later than 11:00 p.m. 2. Adjournment is mandatory unless extended to 12:00 a.m. by council vote. 3. In the event the agenda has not been completed by the time set herein, the council may adjourn the meeting to another day, call a special meeting to complete the agenda and adj ourn, or adj ourn. B. Remaining agenda items. If the meeting is adjourned without making other provisions for completion of the agenda items, the uncompleted matters shall be presented at the next regularly scheduled council meeting under the agenda section for unfinished business. C. Presentations and public comments. The council shall not adjourn prior to 12:00 a.m. unless all presentations and comments by members of the general public have been heard. 2.10.041 — Meeting notification. SEWARD, ALASKA ORDINANCE 2023-002 A. All public notices must include the date, time, and place of meeting. B. The city clerk shall provide at least 24-hour advance public notice, setting out the date, time, place and agenda or issue of the meeting shall be given for all regular and special meetings and work sessions of the council. 1. The notice shall be served personally on each council member, or left at the member's usual place of business or residence, or emailed by the city clerk. 2. The city manager shall receive the notice via email by the city clerk. 3. A copy of the notice shall also be delivered or emailed to the place of business of each newspaper printed and published in the city and each radio station, but this requirement shall not be jurisdictional to the holding of the meetings. 4. Notice delivered via e-mail and/or telephonically to media, each council member, and the city manager, and posted in three public places at least 24 hours prior to the meeting, shall suffice as proper notice. 5. Six -hour notice for a special meeting due to an emergency shall suffice. 2.10.046 Voting —sequence, procedure, conflicts of interest. A. The voting sequence of the council shall be alternated for each meeting by the city clerk. B. Any vote of the council may be by voice vote upon demand of any member, either prior or subsequent to any vote. The vote shall be by roll call. Each member shall answer by the word "yes" or "no." C. All council members, unless lawfully excused, shall vote on each question before the council. D. Four affirmative votes are required to carry any measure before the council unless a greater number is required by the code or charter. Any lesser number, even though it constitutes a majority of the members present, shall not carry and the measure shall be defeated. E. Direct or indirect financial interest. No member of the council may discuss or vote on any question in which the member has a direct or indirect substantial financial interest. 1. Direct or indirect financial interest shall be disclosed to the presiding officer prior to the beginning of debate on the question for a ruling on a request from the member with the financial interest to be excused from the discussion and vote. 2. The decision of the presiding officer on a request by a member of the city council to be excused from discussion and a vote may be overridden by the majority vote of the council. 3. If there are not at least four council members in attendance who are qualified to vote, the matter shall be tabled until the next regular or special meeting at which four council members qualified to vote on the matter are in attendance. F. A municipal employee or official, other than a member of the city council, may not participate in an official action in which the employee or official has a substantial financial interest. G. "Substantial financial interest" means a financial interest that would result in a pecuniary gain or loss exceeding $1,000.00 in a single transaction or more than $5,000.00 in the aggregate in 12 consecutive months. ► IN SEWARD, ALASKA ORDINANCE 2023-002 Four- members of the eity eotifteil shall be a quor-tim for- the tr-afisaetiofi of busiffess. iff the abseHee of a quor-um, nHy Humber- less thaH a quor-um may adjour-H a fHeetiHg to a later- date. 2.10.056 Vacancy on council. A. The council seat shall become vacant upon the occurrence of any of the following: 1. Expiration of the term of office; 2. Death of the incumbent; 3. Resignation approved by council; 4. Removal from office in the manner provided by law; 5. Ceasing to possess at any time the qualifications or eligibility required by the Charter for election or appointment to office; 6. After final conviction of a felony involving moral turpitude, or of any offense involving a violation of an oath of office; 7. A judicial determination that the incumbent is of unsound mind; 8. A decision of a competent tribunal declaring the election or appointment of the incumbent void; 9. Failure to take the oath or make the affirmation or file the bond required for the office within ten days from the date of appointment or certification of election or within such other time not exceeding twenty days thereafter as the council may fix; 10. A member departs from the city with the intent of remaining absent for more than 90 days; 11. Failure to attend council meetings for 90 consecutive days; 12. Attends less than five council meeting during any continuous five -month period; 13. 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. B. Filling vacancies. If a vacancy occurs in an elective office, other than a vacancy occurring from a recall, the vacancy shall be filled in accordance with Charter Section 2.13. 1. Alor-e thaH t�vvo weeks before the eafididate filifig period. if the vaeaftey oeetir-s more than two weeks before the last time for- filing for- the offiees to be filled at the next days, with the per -son appointed serwing until the next time when terms of elee time when terms of eleetive offieer-s begin, the offiee shall be filled for- the r-effiflin 2. Less than two weeks before the eandidate filing period. if the vaenney oeetir-s no more thaH two weeks before the last time for- fi!iHg deelar-afioHs of eftHdidaey for- offiees to eouneil then shall fill any sueh vaenney by appointment for- the r-effiflinder- of the tmexpir-ed term. C. Process for filling vacancies. The process for filling vacancies in this section is: 0�x: SEWARD, ALASKA ORDINANCE 2023-002 1. The city clerk will distribute and publish a notice of vacancy, the procedure, and any application form for applying. 2. Each applicant will make a presentation to the council regarding their qualifications to serve. 3. The council will then vote and sign ballots provided by the city clerk. 4. The city clerk will read the ballot aloud, will tabulate the votes, and announce the results to the council. 5. The council may then, by motion and voice vote affirm the appointment of the candidate receiving the highest number of votes and the required votes for official council action. 2.10.061 Excused absences. A. In order for an absence to be excused, a council member shall contact the city clerk prior to a council meeting and state the reason for their inability to attend the meeting. B. The city clerk will inform the presiding officer of the request for an excused absence prior to the meeting and the presiding officer will rule whether absence is excused or unexcused. C. When calling the roll call for the meeting, the city clerk will indicate whether a member's absence was ruled to be excused or unexcused, and the clerk will make an appropriate notation in the minutes. D. If another council member questions the member's absence, the presiding officer will inquire if there is a motion to excuse the member. This motion is non -debatable. E. Upon passage of the motion by a majority of members present, the absent member will be considered excused and the city clerk will make an appropriate notion in the minutes. 2.10.066 Agenda. A. Order of business. The order of business for the regular meetings of the city council shall be as follows: I. Call to Order; 2. Pledge of Allegiance; 3. Roll Call; 4. Citizen Comments of any Subject Except those Items Scheduled for Public Hearing; 5. Approval of Agenda and Consent Agenda 6. Special Orders, Presentations and Reports Proclamations and Awards b. City Manager Report c. City Clerk Report d. City Attorney Report e. Other Reports and Announcements f. Presentations 7. Consent Agenda a. Minutes of Preceding Meeting b. Introduction of Ordinances c. Resolutions 299 SEWARD, ALASKA ORDINANCE 2023-002 d. Action Memoranda e. Other Items 8. Public Hearings a. Ordinances for Enactment b. Resolutions Requiring Public Hearing 9. Unfinished Business 10. New Business a. Resolutions b. Action Memoranda c. Other New Business 11. Informational Items and Reports a. Boards and Commissions Minutes 1. Planninz & Zoning Commission 2. Port & Commerce Advisory Board 3. Historic Preservation Commission b. Other Items 12. Citizen Comments 13. Council; and Administration Comments and Response to Citizen Comments 14. Executive Session 15. Adjournment B. Consent agenda — use of. 1. Items on the council agenda which are considered routine by the city manager and city clerk shall be on the consent agenda. 2. Unless the mayor or a council member specifically requests that an item be removed from the consent agenda, all items appearing under the consent agenda are approved with a single motion, no discussion, and one vote. If an item is removed from the consent agenda, the item shall be considered under the regular meeting agenda. 3. Council member agenda items. Council members who wish to add items to the agenda must present the item, in writing, to the city clerk no later than 12:00 p.m. on the Tuesday preceding the Monday meeting. 4. Prior to the final vote on the agenda, a council member may delete any item from the agenda or postponing any item on the agenda to a subsequent council meeting. However, if any member objects, the member wishing to delete or postpone an agenda item must make a motion to do so. The motion requires a second and must receive four affirmative votes for approval. 5. No matters other than those on the agenda shall be acted upon by the city council; provided, matters that seem to be emergencies or of an urgent need by the mayor, or any council member, or the city manager, with an explanation of the emergency or urgency stated in open council meeting, may with the consent of the council majority present, be considered and acted upon by the council. 2.10.071 Council packet. 300 SEWARD, ALASKA ORDINANCE 2023-002 A. All reports, ordinances, resolutions, contracts, documents or other matters to be submitted to the council at the regular meeting shall be submitted to the city clerk not later than 12:00 p.m. noon on the Tuesday preceding the Monday meeting. B. The city clerk shall prepare the agenda for all matters according to the order of business, numbering each item consecutively. C. A complete copy of the agenda and supporting materials shall be delivered provided to each council member, and the city manager, and department heads no later than 7:00 p.m. on the Saturday preceding the council meeting. D. The agenda packet shall be available to the public in the city clerk's office at 9:00 a.m. on the day of the council meeting and in the council chambers during each meeting. E. The agenda will be published in the local newspaper during the week prior to the meeting. 2.10.076 Minutes. A. The minutes of the council shall be kept by the city clerk and shall be in a book kept for that purpose with a record of each particular type of business transaction set off in paragraphs, with proper subheads. B. The city clerk shall be required to make a record only of the business actually passed upon by a vote of the council and shall not be required to make a verbatim transcript of the proceedings; provided, that a record should be made of the names of the persons addressing the council, the subject matter to which the remarks related and whether they spoke in support of or in opposition to the subject matters. Provided, however, that any council member may request that the member's remarks on any subject be recorded in the minutes verbatim as a matter of public record. C. Unless the reading of the minutes of a council meeting is requested by the majority of the council, the minutes may be approved without reading if the clerk has previously furnished each council member with a copy. 2.10.081 Motions. All city council legislation shall be in the form of an affirmative motion. The affirmative vote of four members of the council is required for passage of any motion of the council, unless otherwise noted in code. 2.10.086 Rules of order. A. Roberts Rules of Order. All meetings shall be conducted in accordance with the current edition of Robert's Rules of Order, Newly Revised. The city clerk shall serve as parliamentarian and shall advise the presiding officer as to correct rules of procedure of specific rule application. B. Presiding officer may debate and vote. The presiding officer may move, second and debate from the chair, subject only to the limitations of debate imposed by the code and charter on all council members, and shall not be deprived of any of the rights and privileges of a council member by reason of acting as presiding officer. Kill SEWARD, ALASKA ORDINANCE 2023-002 C. Getting the floor; improper references to be avoided. Every council member desiring to speak shall address the chair, and upon recognition by the presiding officer, shall speak to the question under debate, avoiding all improper language and references to personalities. D. Interruptions. A council member, once recognized, shall not be interrupted in speaking unless to call the member to order or as herein otherwise provided. If a council member, while speaking, is called to order the member shall cease speaking until the question of order be determined and, if in order, the member shall be permitted to proceed. E. Reconsideration. A motion to reconsider may be applied to any ordinance, resolution or action of the council and has precedence over all motions except the motion to adjourn. 1. A council member may make a motion to reconsider only if: a. The council member voted on the prevailing side on the question to be reconsidered; b. The council member makes the motion to reconsider on the same day and at the same meeting at which the vote to be reconsidered was taken; or c. The council member files with the city clerk not later than 5:00 p.m. on the first city business day following the day on which the vote was taken a written notice of intent to reconsider and then makes the motion to reconsider at the next regular council meeting. 2. A motion for reconsideration requires a two-thirds vote to carry. 3. For the purposes of this section, a council meeting which is recessed and reconvened on a different day shall constitute one meeting. The reconvened session of such a meeting shall not constitute the next regular council meeting as that term is used in this section. 4. Only one motion to reconsider shall be entertained on any ordinance, resolution or other action even if the council overturns the original action. If a motion to reconsider a particular ordinance, resolution or other action fails, a second motion to reconsider the same action shall not be in order. 5. Actions which may not be reconsidered. The following motions may not be reconsidered: a. A motion which can be renewed within a reasonable time; b. An affirmative vote whose provisions have been partly carried out; c. An affirmative vote in the nature of a contract when the party to the contract has been notified of the outcome; d. Any vote which has caused something to be done which it is impossible to undo; e. A vote on a motion to reconsider; or f. When practically the same result can be obtained by some other parliamentary motion. 2.10.091 Addressing the council by the public. A. Generally. The council shall provide the opportunity for the public to be heard at regular and special meetings as required by AS 29.20.020 and Seward City Charter section 3.5(g). All persons desiring to address the council shall first secure the permission of the presiding officer to do so, shall approach the podium before the council and give their name, state whether they live inside or outside the city Seward city limits, and, unless further time is granted by the presiding officer, shall limit their address to the time limits specified on the council agenda. B. Public hearings. MY, SEWARD, ALASKA ORDINANCE 2023-002 1. Unless further time is granted by the presiding officer, each person testifying under public hearing shall limit their presentation to five minutes. 2. The city clerk shall make available sign-up sheets on which persons desiring to speak on items scheduled for public hearing may indicate their desire. The presiding officer shall request comment from persons in the order in which they have signed up on the sheets and then shall take comments from all other persons desiring to speak. 3. No person who has previously spoken during the public hearing on a particular item may speak again unless all other persons desiring to give testimony at the public hearing have spoken. 4. A person speaking for a second time shall give testimony for not more than one minute unless the presiding officer designates a different time. 5. No person may speak on an item after public hearing on that item has terminated unless the presiding officer determines otherwise. C. Presentations. 1. There will be no more than two presentations scheduled during each council meeting. 2. Presentations are added to the agenda on a first come, first serve basis and must be approved by the city manager. 3. In the event there are already two presentations scheduled on any given agenda, the requestor will be provided with future date opportunities. 4. There is a 10-minute time limit for presentations. The city clerk will time each presentation. 2.10.096 Forms of address. A. The mayor shall be addressed as "Mayor (surname), "Your Honor", "Mister/Madam Chair", or Mister/Madam Mayor". B. The vice mayor, when acting for the mayor, shall be addressed as "Vice Mayor (surname)", or Mister/Madam Chair. C. Members of the council shall be addressed as "Council Member (surname)". 2.10.100 Decorum. A. Council members. When the council is in session, council members must preserve order and decorum and no council member shall, by conversation or otherwise, delay or interrupt the proceedings or the peace of the council, nor disturb any council member while speaking, nor refuse to obey the orders of the council or the person presiding. B. Other persons. Any person making personal, impertinent, threatening or slanderous remarks, or who shall become boisterous while addressing the council, shall immediately, be barred by the presiding officer, from further audience at the meeting before the council, unless permission to continue be granted by a majority vote of the council. C. Enforcement. 1. The chief of police shall be ex officio sergeant -at -arms of the council. 2. The chief shall carry out all orders and instructions by the presiding officer for the purpose of maintaining order and decorum in the council chambers. 303 SEWARD, ALASKA ORDINANCE 2023-002 3. Any person in the audience who uses loud, boisterous or profane language at a council meeting, or language tending to bring the council or any council member into contempt, or any person who persistently interrupts the proceedings of the council or refuses to keep quiet or take a seat when ordered to do so by the presiding officer, shall be deemed guilty of a misdemeanor. 4. Upon instruction from the presiding officer, it shall be the duty of any police officer present to eject any person from the council chambers, or place the person under arrest, or both. 2.10.105 Council as board of adjustments. The city council is designated to be the board of adjustments for the city. The mayor shall act as chair. .. ... . ...... .. . . .. ... .. Y. . ... . . . .. . . .. . . . . . . .. . . .. . .... . . . .. . . . I 2.10.115 Council direction to city attorney, city clerk, or city manager. A. The attorney, city clerk, and city manager work for the council as a body and may not take direction from any individual member of the council. B. City council requests for research or drafting of council legislation and other documents shall be made at a meeting. C. The city council may direct the city attorney, city clerk, or city manager via motion provided the motion regarding substantive directives are included on the agenda before a vote is taken on the motion. 2.10.120 Processing of city council mail by the city clerk. A. The city clerk is authorized to receive and open all mail addressed to the city council, with a copy of all correspondence needing action immediately forwarded to the city manager for timely attention. B. All administrative business referred to in the communications and not necessarily requiring council action may be disposed of between council meetings; provided, all action taken pursuant to the communications shall be reported to the city council thereafter. C. Any communications needing council action shall be reported to the city council at the next regular meeting, together with the report and recommendations of the city manager, and copies of the communications shall be provided to the council. 019y,I SEWARD, ALASKA ORDINANCE 2023-002 2.10.125 Compensation. A. Compensation for service on the city council is as follows: 1. The mayor shall be compensated at the rate of $600.00 per month; and 2. Each council member shall be compensated at the rate of $400.00 per month. B. Compensation shall be paid quarterly on the payday for the first pay period ending in January, April, July and October of each year. C. Council members are not eligible to participate in the Public Employees' Retirement System of Alaska (PERS). 2.10.130 Retirement from council — recognition. A. Council members who retire from service on city council after one term or who are not reelected following their first term of office will receive a plaque in recognition of their service to the city. B. Council members who retire or fail to be reelected after two or more terms on the city council will receive an engraved gold pan in recognition of their service. C. A mayor who retires or fails to be reelected will receive a plaque bearing a gavel in recognition of their service to the city. Chapter 2.15. - Ordinances And Resolutions 2.15.010 - Methods of council action. (a) Except as otherwise provided in this code and Charter, city council shall take legislative action only by means of an ordinance or resolution. (b) Except as otherwise provided in this code and Charter, council may direct the city attorney, city clerk, and/or city manager via motion so long as motions regarding substantive directives are included on the agenda before a vote is taken on such motions. 2.15.015 - Preparation. A. All ordinances, except ordinances initiated by the electors of the city under the provisions of the Home Rule Charter § 4.6, shall be prepared in writing and approved as to form by the city attorney. B. No ordinance shall be prepared for presentation to the council unless ordered by the majority vote of the council or requested by the city manager, or prepared by the city attorney or the city clerk on hs their own initiative. 2.15.020 - Title. Each ordinance and resolution shall be preceded by a brief title which shall indicate the subject or contents thereof. 2.15.025 - Ordaining clause. SEWARD, ALASKA ORDINANCE 2023-002 The ordaining clause of all ordinances enacted by the city council shall be: "The City of Seward Ordains." The ordaining clause of all ordinances enacted by the people shall be: "The People of The City of Seward Ordain." 2.15.030 - Prior approval by city attorney, etc. A. All ordinances, except ordinances initiated by the electors of the city under the provisions of City Charter § 4.6, shall have been approved as to form by the city attorney or hi-s the attorney's authorized representative prior to presentation to the city council. B. All ordinances and resolutions addressing substantial administrative matters shall have been examined for the administration by the city manager or h�s the manager's authorized representative prior to presentation to the city council. C. Resolutions and contracts of the city shall be reviewed and approved as to form by the city attorney only upon request of the city manager or the city clerk. 2.15.035 - Introduction; public hearing; amendment; publication. A. (a) An ordinance or resolution may be sponsored by the city manager, city clerk, city attorney, one of the boards or commissions, the mayor or any member of the city council. B. Ordinances and resolutions may be introduced by reading the title only and shall be read in full only when requested by a majority of the council or unless otherwise provided by law. C. When an ordinance or resolution has been introduced, copies thereof shall be made available to the public in the council chambers and by in the office of the city clerk. D. (b} No ordinance except an emergency ordinance shall be passed at the same meeting at which it is introduced. E. An ordinance shall be set for hearing by the affirmative vote of a majority of the votes authorized on the question. A summary of the ordinance and its amendments, together with a notice of time and place for public hearing, shall be posted on the bulletin board at city hall and shall be published in one or more of the newspapers of the city. The publication must precede the public hearing by at least five days. Copies of the ordinance must be available to all persons present or the ordinance must be read in full. The council shall hear all interested citizens wishing to be heard. F. (e) After the hearing, the council shall consider the ordinance and may enact it with or without amendments; provided, any amendments do not change the general scope and original intent of the ordinance. The correction of typographical or clerical errors shall not constitute an amendment within the meaning of this section. G. (d) Each ordinance or code provision and each resolution involving financial matters, elections and real property transactions or establishing rules and regulations affecting the public, or as required by the council in the passage of the specific resolution, shall be posted on the bulletin board at city hall within a reasonable time after enactment and for the number of days between enactment and the effective date, and a notice of the place of posting and a brief statement of the purpose of the ordinance or code provision shall be published in one or more of the newspapers of the city within a reasonable time. MD] SEWARD, ALASKA ORDINANCE 2023-002 2.15.040 - Emergency ordinances. A. (a) No ordinance shall be passed at the same meeting at which it is introduced unless an emergency is declared to exist by the council. B. Any ordinance declared by the council as being necessary as an emergency nature for preserving the public health, welfare and safety must contain a statement of the facts upon which the emergency finding is based. This exception shall not be employed for the sole reason that the rules for introduction, reading, etc. of legislation are waived to permit passage on the first reading due to the existence of an emergency. C. The ememency ordinance may be enacted, amended and enacted, or rejected at the meeting at which it is introduced. D. The affirmative vote of all members present, or the affirmative vote of three -fourths of the total membership, whichever is less, is required for enactment. E. The city clerk shall print and make available copies of enacted emergency ordinances and provide for the posting and publication as set forth in § 2.15.035 D. F. (4) An emergency ordinance may not be used to levy taxes, to grant, renew or extend a franchise, or to regulate a charge for a city service. G. (e) Emergency ordinances are effective for sixty days and are not codified. 2.15.045 - Signatures. A. The mayor shall sign all ordinances and resolutions as enacted and approved by the council at the meetings in which he the mayor is in attendance; and if he the mayor is absent, the vice mayor may sign such documents as have been enacted and approved by the council. B. In the absence of the mayor and vice mayor, the acting mayor may sign such documents that have been enacted and approved at the meeting at which he the acting mayor presided. 2.15.050 - Effective date. (a) The effective date of each ordinance or code provision or resolution shall be stated therein. (b) Ordinances. All ordinances or code provisions enacted by the council shall become effective ten 10 days after enactment; except that: (1) All code provisions which provide for or establish a tax shall become effective not less than thirty 30 days after enactment; (2) All code provisions which provide for or establish a salary for an elective office shall become effective on the Monday following the next general municipal election or such later date as the official elected to said office qualified for office; (3) An ordinance or code provision may become effective immediately upon enactment providing an emergency described therein and declared to require the enactment of such legislation to alleviate the emergency is declared to exist, pursuant to § 2.15.040. (c) Resolutions. All resolutions passed by the council become effective immediately; except, that: (1) Those involving real property transactions shall become effective not less than thir 30j days following passage and approval; (2) Those establishing rules and regulations affecting the public shall become effective not less than ten 10 days following approval, or as otherwise provided by law. SEWARD, ALASKA ORDINANCE 2023-002 Chapter 2.20. - Officers and Employees 2.20.010 Appointed offieer-s and terms of offiee-. 2.20.015 Appointments to eer-tain positions. notiee to eouneil upon neeeptanee of the offer- letter- appr-oval of the eouneih (2) Chief of poliee; al! offireer-s of the poliee depar-tmeHt shall take alld file with the eity eler-k a eoHstitutioHal oath of offiee before eHter-iHg upoH the duties thereof. 2.20.025 - Combining offices. Two or more of the city offices provided for in this chapter may be combined by the council. •. . .. . . �.. �. 2.20.035 - City manager duties. The city manager shall have the following duties. The city manager: 1. 1 e Shall be the chief administrative officer of the council and shall perform the duties of the office under authority of and shall be accountable to the council. 1 e The city manager shall supervise and coordinate the work of the appointed officers and departments of the city, except the city attorney, city clerk and city clerk department, and 4ie shall act as coordinator between those officers and other administrative officers. 2. 1 e Shall sign for the city -approved contracts, leases and agreements as authorized by the city council. 3. He may Recommend the council's sale and lease of materials, property, equipment and real estate of the city. 4. Shall negotiate such contracts and leases as the council may authorize. 5. 1 e Shall recommend to the council a schedule of fees and rates of all types of services performed by the city departments. MIIR: SEWARD, ALASKA ORDINANCE 2023-002 6. Recommend to the council any basic organization and plans for the city departments and enforce changes as approved by the council. 7. 1 e Shall prescribe and enforce such rules and regulations as may be deemed necessary for the operation and management of all offices and departments of the city under h�s the manager's control. 8. 1 e Shall submit annually a report on the preceding year's financial and administrative activities of the city to the council. 9. 1 e Shall present to council a biennial budget proposal for the city, pursuant to #.$ Chapter 5.05 - Budget ef t4e Sewafd City Cede. 10. He Shall appoint the personnel officer and provide for the management and administration of the city personnel regulations pursuant to $ Title 3 - Personnel Ofdaoee Ne.3,:-as amended. 11. Shall provide for long and short term and municipal planning. 12.1 e Shall provide input and aid in the field of economic development by working with businesses, groups, and individuals interested in locating in Seward. 13. 1e Shall perform the duties as set forth in the charter. 14.1 e Shall perform such other duties as may be required ef hiHi by the council. 2.20.040 - City attorney. The position of city attorney is hereby established and the individual appointed by council shall have the following duties. The city attorney: 1. Me,"all advise the council, and the city manager, city clerk mW boards, commissions, and all offices and departments of the city, on all matters of law. 2. Shall draft and assist in the drafting of all ordinances, resolutions, contracts and agreements to be made or entered into by the city, and approve the form of such instruments. 3. Shall prosecute violators of this code and other city ordinances and shall represent the city in all actions of law. 4. Shall perform the duties as set forth in the charter. 5. Shall perform such other duties as may be required ef him by the city manager or the city council. 2.20.045 - City clerk. The position of city clerk is hereby established and the individual appointed by council shall have the following duties. The city clerk. 1. Shall be the clerk of the council, shall attend all meetings of the council and shall keep a record of its proceedings. 2. Shall keep all ordinances, resolutions, contracts and agreements of the city and authenticate such records as shall be necessary. 3. Shall publish ordinances, resolutions and other legal notices as required. 4. Shall administer all city elections and maintain related records. 5. Shall keep informed of all matters pending before the council and other bodies as council may require. Kip SEWARD, ALASKA ORDINANCE 2023-002 6. Shall keep and maintain appropriate files and records for the accomplishment of his duties. 7. Shall attest the city manager's signature on all contracts, except as otherwise provided herein, as approved by the council. 8. IWShall administer all oaths required by law. 9. Shall be custodian of the city seal and the official records of the city. 10. Shall have the power to appoint deputies, if needed. , pr-ovided that the appointment o 11. Shall supervise the city clerk department and shall be responsible for the employment of all employees in the city clerk department. fame. 12. Shall perform the duties set forth in the charter. 13. Shall perform such other duties as may be required of him by law or the city council. Chapter 2.25. - City Departments �. - MIMI will .. .. IWO- 01iN SEWARD, ALASKA ORDINANCE 2023-002 Ri FIN &AM .. Mr - - o. ILI P.M 2.25.030 - Buildin,- department - Established. There is established the Citv of Veward Building Department. The principal officer shall be the Buildin,- Official who shall fulfill the duties and have the responsibilities as set forth in the emplovee's iob description. and who shall be subiect to the direction and supervision of the Fire Chie . 2.25.035 - Buildin,- department - Powers and duties. The Buildin,- Department shall. A. Inspect all permitted construction work done by and for the City and require compliance with all city adopted buildin,- and fire codes; B. Examine all plans and specifications for compliance with applicable codes and re-ulations; C. Review applications for buildin,- permits and demolition permits, and issue buildin,- permits and demolition permits when appropriate; D. Enforce building and fire codes by giving instructions, explaining the requirements for construction proiects to meet applicable codes, conductin'- inspections, issuin'- warnin'-s, notices, and orders of abatement or correction, and recommendin'- stop work orders. E. Perform other tasks as directed by the Fire Chief,• F. Provide for the abatement of dan,-erous buildin,-s and public nuisances accordin'- to law; G. Coordinate services with the boron,-h assessor to provide such records of buildin,- chanzes which could affect the boron,-h assessed valuation for tax purposes; H. Assist with the investi,-ation of collapsed buildin,-s, fire lama'-e, or other factors that influence structural inte-city of buildings; L Inspect and witness the installation and testing of fire protection or fire detection systems to determine if such systems are installed in accordance with applicable codes, re-ulations, standards, and department rules; J. Inspect the installation of foundations, floors, walls, roofs, mechanical and electrical systems, and plumbin,- systems to determine if such systems are installed in accordance with applicable laws, codes, re-ulations, standards, and department rules. MIS SEWARD, ALASKA ORDINANCE 2023-002 2.25.037Buildin,- Official. The Buildin,- Official shall fulfill the duties and have the responsibilities as set forth in the employee's iob description. The Buildinz Official shall be subiect to the direction and supervision of the Fire Chief and shall: A. Work with departments to provide for the planninz, design, construction, maintenance and repair, and improvement of all city -owned buildings; B. Provide necessary technical enzineerinz services to other City departments; C. Inspect all permitted construction work done by and for the City and require compliance with all city adopted buildinz and fire codes; D. Provide other services and duties as may be reasonably related and as directed by the Fire Chief, E. Provide for the lawful compliance of new construction and buildinz renovation within the City limits by the issuance of buildinz permits and the performance of buildinz inspections, rezulatinz buildinzs, housinz, fire zones, plumbinz, heatinz and electrical installations; F. Provide for the abatement of danzerous buildin-s and public nuisances accordinz to law; G. Interpret code requirements and recommend compliance procedures to contractors, craft workers, and owners. 2.25.040 - Finance department —Established. There is established the City of Seward Finance Department. The principal officer shall be the Finance Director who shall fulfill the duties and have the responsibilities as set forth in the employee's job description, and who shall be subject to the direction and supervision of the City Manager. (see seetion 2.20.015 regarding Gotineil approval of appointment). 2.25.045 - Finance department —Powers and duties. The Finance Department shall: A. Formulate, recommend and administer policies and procedures on all city financial matters; B. Prepare and maintain all necessary and appropriate financial records and statements and reports for the city; specifically, annual and quarterly reports reflecting revenues and expenditures of the individual departments, current monthly statements reflecting unencumbered balances for all city accounts; C. Review the proposed biennial budget for all departments of the city and consolidate them into a proposed biennial city budget for presentation to the city manager and city council; D. Establish procedures and provide for the administration of the city's various insurance policies, advising as to the status and expiration of all the various policies; E. Reconcile the inventory of property for the city as maintained by department directors; F. Provide for compliance and appropriate city funding of employee retirement program; G. Provide for telephone, cashier and utilities billing services; H. Maintain the records as necessary for the fulfillment of the departmental function; I. Provide for the payment of all valid warrants and claims against the city; J. Provide for the city payroll function; K. Provide other services and duties as directed by the city manager; OV, SEWARD, ALASKA ORDINANCE 2023-002 L. Provide for all city purchases in conformity with the procedures established for that purpose; M. Facilitate the completion of the annual audit and issuance of financial statements; N. Manage and ensure sufficient cash flows to meet current and future obligations; O. Monitor and maintain proper oversight of grant compliance and fiscal reporting; P. Ensure timely and accurate review and reconciliation of financial accounts, including bank, credit card, and investments as appropriate. 2.25.050 - Fire department —Established. There is established the City of Seward Fire Department. The principal officer shall be the fire chief who shall fulfill the duties and have the responsibilities as set forth in the employee's job description, and who shall be subject to the direction and supervision of the city manager {see seetion 2.20.015 regarding eouneil approval of appointment). 2.25.055 - Fire department —Powers and duties. The Fire Department shall: A. Formulate, recommend and administer policies and procedures pertaining to the enforcement of fire regulations; B. Be responsible for the prevention of fires, the protection of life and property against fires and the removal of fire hazards; C. Be responsible for providing emergency services as equipment provides; D. Be responsible for the construction, maintenance, ; inspection, and repair of all city -owned buildin-s in re -ands to their fire alarm, fire suppression systems, and fire extin-uishers. E. Provide for the enforcement of the fire prevention code by the inspection of businesses and other premises for fire hazards and compliance with the Code; F. Work with other departments to provide for the lawful compliance of new construction and buildinz renovation within the City limits by the issuance of building permits and the Performance of buildinz inspections, re-ulatin- buildinzs, housinz, fire zones, plumbinz, heatin,- and electrical installations; G. Work with other departments to provide for the abatement ofdanzerous buildin-s and public nuisances, accordinz to law; H. Provide for the conduct of fire prevention programs; I. Notify the borough assessor and city building inspector of all property damaged by fire within the city; J. Maintain the Seward Hazard Mitization Plan and the Emergency Operations Plan. K. Provide other services and duties as directed by the city manager. 2.25.060 - Harbor department —Established. There is established the City of Seward Harbor Department. The principal officer shall be the harbormaster who shall fulfill the duties and have the responsibilities as set forth in the employee's job description, and who shall be subject to the direction and supervision of the city manager. Mr.] SEWARD, ALASKA ORDINANCE 2023-002 2.25.065 - Harbor department —Powers and duties. The Harbor Department shall: A. Formulate, recommend and administer policies and procedures pertaining to the operation of the Seward Harbor and its facilities, and the Seward Marine Industrial Center (SMIC) and its facilities; B. Collect harbor- fees and charges and maintain such records as are necessary for the fulfillment of the department function; C. Provide for the enforcement of all city regulations pertaining to the harbor and SMIC; D. Provide other services and duties as directed by the city manager. 2.25.070 - Electric utility department —Established. There is established the City of Seward Electric Utility Department. The principal officer shall be the utility director who shall fulfill the duties and have the responsibilities as set forth in the employee's job description, and who shall be subject to the direction and supervision of the city manager 2.25.075 - Electric utility department —Powers and duties. The electric utility department shall: A. Recommend a schedule of fees and rates to be charged for services performed by the electric department; B. [Reserved.] C. Provide other services and duties as may be reasonably related and as directed by the city manager; D. Provide policies and procedures pertaining to the management, operation, design, construction, repair, development, maintenance, improvement and extension of the electric utility owned and operated by the city; E. Maintain such maps and records as are necessary for the fulfillment of the departmental function and record thereon any changes on the official copy, which shall be filed with the city clerk and maintained by the department; F. Obtain easements necessary for the maintenance and extension of the electrical system; G. Provide advice and assistance in formulating policies and rate schedules to be used in the sale of services and answer customers' inquiries regarding the electrical tariff, H. Install, maintain and operate the street lighting system of the city; I. Provide for the necessary inspections relative to new and extended electrical services. 2.25.080 - Public works department —Established. There is established the City of Seward Public Works Department. The principal officer shall be the public works director who shall fulfill the duties and have the responsibilities as set forth in the employee's job description, and who shall be subject to the direction and supervision of the city manager. 2.25.085 - Public works department —Powers and duties. KiEl! SEWARD, ALASKA ORDINANCE 2023-002 The public works department shall: A. Work with the engineering and construction and electric utility departments to provide for the planning, design, construction, maintenance and repair, and improvement of all public works owned or operated by the city; B. Recommend a schedule of fees and rates to be charged for services performed by his department; C. Provide other services and duties as may be reasonably related and as directed by the city manager; D. Maintain such maps and records as are necessary for the fulfillment of the departmental function and record thereon any changes on the official copy, which shall be filed with the city clerk and maintained by the department; E. Provide advice and assistance in formulating policies and rate schedules to be used in the sale of services and answer customers' inquiries regarding the water and sewer services; F. Operate the city garage and machine shop, keeping a record of the work performed; G. Maintain the operating records of all motorized equipment used or operated by the city; provide for a preventive maintenance program for all mechanical equipment owned and operated by the city; provide maintenance for all public buildings and mechanical equipment of the city; H. Be responsible for the function and maintenance of all markings for traffic control placed upon the streets or curbs; I. Provide policies and procedures pertaining to the management, operation, design, construction, repair, development, maintenance, improvement and extension of the city water and sewer utilities; J. Cooperate and coordinate departmental efforts with the fire department in the installation, repair and maintenance of a water system adequate for the needs of the fire department; provide for the necessary inspections relative to new and extended water and sewer services. 2.25.090 - Police department —Established. There is established the City of Seward Police Department. The principal officer shall be the chief of police who shall fulfill the duties and have the responsibilities as set forth in the employee's job description, and who shall be subject to the direction and supervision of the city manager (see-* 2.15.015 regarding eouneil approval of appointment). 2.25.095 - Police department —Powers and duties. The Police Department shall: A. Operate and maintain the contracted, community C4ty jail facility; B. Enforce all traffic regulations (see title 11); C. Be responsible for the preservation of public peace and order, the prevention and detection of crime and apprehension of offenders, the protection of persons and of property, and the enforcement of the law; D. Provide for the annual sale of unclaimed property at public auction or as specified by law; E. Coordinate law enforcement activities with other governmental entities; OR SEWARD, ALASKA ORDINANCE 2023-002 F. Operate and maintain the City animal control shelter and provide for the administration of the animal control laws (see chapter 9.05); G. Maintain all related department records as required; H. Provide other services and duties as directed by the City Manager; I. Operate and manaze the Department of Motor Vehicles (DMV) services through state contract. 2.25.120 - Parks and recreation department —Established. There is established the City of Seward Parks and Recreation Department. The principal officer shall be the parks and recreation director who shall fulfill the duties and have the responsibilities as set forth in the employee's job description, and who shall be subject to the direction and supervision of the city manager. 2.25.125 - Parks and recreation department —Powers and duties. The Parks and Recreation Department shall: A. Organize various recreational programs for individuals of all ages within the City; B. Coordinate recreational activities and programs with the Kenai Peninsula Borough Community Schools programs and other local recreational entities; C. Maintain City recreational facilities; D. Provide for the operation, maintenance and collection of fees for the municipal campgrounds and parking facilities; E. Provide other services and duties as directed by the City Manager. 2.25.130 - Library museum department —Established. There is established the City Library Museum Department. The principal officer shall be the library museum director, who shall fulfill the duties and have the responsibilities as set forth in the employee's job description and who shall be subject to the direction and supervision of the city manager. 2.25.135 - Library museum department —Powers and duties. The Library Museum Department shall: A. Assemble, preserve and administer, in organized collections, books and related educational and recreational material in order to promote the communication of ideas and enrich the personal lives of residents of the City of Seward; B. Collect, preserve and make accessible materials relating to the history of Seward, the Resurrection Bay area and the eastern Kenai Peninsula of the State of Alaska; C. Organize library and museum related programs for residents of the City of Seward; D. Consult with the Seward Community Library Association, Inc., a nonprofit Alaska corporation, which may serve in an advisory capacity to the Library Director and the City Council on matters of interest to the community with respect to the operation of the City Library and its programs; K1i[y SEWARD, ALASKA ORDINANCE 2023-002 E. Consult with the Resurrection Bay Historical Society, Inc., a nonprofit Alaska corporation, which may serve in an advisory capacity to the Library Museum Director and the City Council on matters of interest to the community with respect to the operation of the City Museum and its programs; F. Manage, operate and maintain the city's library museum facilities and programs, including materials and collections. G. Provide other services and duties as directed by the City Manazer. 2.25.140 - Community development department —Established. There is established the City of Seward Community Development Department. The principal officer shall be the community development director who shall fulfill the duties and have the responsibilities as set forth in the employee's job description and who shall be subject to the direction and supervision of the city manager. 2.25.145 - Community development department —Powers and duties. The Community Development Department shall: A. Provide for long and short term and municipal planning with regard to the city comprehensive plan, land use plan and other internal plans for the use of city owned lands; B. Provide overall management, as coordinated with other departments, of City owned lands and tidelands to include their use, development, lease, acquisition, sale, appraisal and platting; C. Formulate, recommend and administer policies and procedures pertaining to City zoning regulations; D. Develop and maintain demographic and other resource information about Seward; E. Provide staff services in the field of community promotions such as development of City displays, graphics and brochures; F. Provide staff services in the field of economic development by working with businesses, groups and individuals interested in locating in Seward by supplying land use, permitting and statistical information; G. Maintain a reference library of plans, reports and documents about or pertaining specifically to Seward; and H. Provide other services and duties as directed by the City Manager. 2.25.150 - City clerk department —Established. There is established the City of Seward City Clerk Department. The principal officer shall be the city clerk who shall fulfill the duties and have the responsibilities as set forth in Charter Section 5.5 and section 2.20.045 of this Code and who shall be subject to the direction and supervision of the city council. 2.25.155 - City clerk department —Powers and duties. The city clerk department shall perform the duties of the city clerk set forth in Charter Section S.5 and section 2.20.045 of this Code. OVA SEWARD, ALASKA ORDINANCE 2023-002 2.25.160 — Information technology department — Established. There is established the City of Seward Information Technology Department. The principal officer shall be the information technology director who shall fulfill the duties and have the responsibilities as set forth in the employee's iob description and who shall be subiect to the direction and supervision of the city manazer. 2.25.165 —Information technology department —Powers and duties. The Information Technology Department shall. A. Implement and perform all functions necessary for operations of the city information systems. B. Oversee the information technology. C. Provide other services and duties as directed by the City Manawer. Chapter 2.30. - Boards and Commissions Article 1. Reserved bIRTIM ITI•. Article 2. - Seward Planning and Zoning Commission 2.30.210 - Established. A. Composition. There is created the Seward Planning and Zoning Commission, consisting of seven citizens, all of whom shall reside in the city and who shall be appointed by the council. 1. If there is more than one applicant for the position, the council shall appoint by ballot voting. 2. Applicants must receive at least four votes in order to be appointed. 3. No officer or employee of the city may be an appointed member of the commission. B. Chair and vice chair. 1. The commission shall select a chair and vice chair annually. 2. The chair shall preside at all commission meetings, may participate in the debate, and vote on any matter of the commission. 3. In the absence of the chair, the vice chair shall exercise all the powers of the chair. 2.30.215 - Terms of office; filling vacancies. A. Members of the Seward Planning and Zoning Commission shall be appointed for three years; provided that the terms of initial appointments shall be staggered so that as nearly as possible a pro rata number of members shall be appointed each year. B. The council may appoint any qualified person to fill a vacancy of any member of the commission; provided, that the appointment shall be for the unexpired term of the vacancy. QW] Article 2. - Seward Planning and Zoning Commission 2.30.210 - Established. A. Composition. There is created the Seward Planning and Zoning Commission, consisting of seven citizens, all of whom shall reside in the city and who shall be appointed by the council. 1. If there is more than one applicant for the position, the council shall appoint by ballot voting. 2. Applicants must receive at least four votes in order to be appointed. 3. No officer or employee of the city may be an appointed member of the commission. B. Chair and vice chair. 1. The commission shall select a chair and vice chair annually. 2. The chair shall preside at all commission meetings, may participate in the debate, and vote on any matter of the commission. 3. In the absence of the chair, the vice chair shall exercise all the powers of the chair. 2.30.215 - Terms of office; filling vacancies. A. Members of the Seward Planning and Zoning Commission shall be appointed for three years; provided that the terms of initial appointments shall be staggered so that as nearly as possible a pro rata number of members shall be appointed each year. B. The council may appoint any qualified person to fill a vacancy of any member of the commission; provided, that the appointment shall be for the unexpired term of the vacancy. QW] SEWARD, ALASKA ORDINANCE 2023-002 C. Following a member's absence from three consecutive regular meetings in a 12-month period of the commission, the remaining commission members shall decide whether the commissioner should be retained or whether to request council appointment of a new member. 2.30.217 Staff assistance to commission. A. The city manager, or designee, shall: 1. Assist the commission and shall be qualified by special training and experience in the field of city planning; 2. Will be the regular technical advisor of the commission, but shall not have the power to vote. B. City staff shall provide a clerk to the commission. The clerk shall: 1. Properly advertise the meetings as required by the Alaska Open Meetings Act; 2. Prepare the commission packet; and 3. Attend the commission meeting and keep a record of commission proceedings. 2.30.118 Quorum. Four members of the commission shall constitute a quorum for the transaction of business; except that, in the absence of a quorum, any number less than a quorum may adjourn the meeting to a later date. 2.30.220 - Meetings. A. Regular meetings. Regular meetings shall be held at 7:00 p.m. in the city council chambers on the first Tuesday of each month. B. Special meetings. Special meetings may be held at the call of the chair or the city manager, and at such other times as the commission may determine. C. Meetings open to the public. All meetings and records of the commission shall be open to the public. D. Meeting rules of proceedings. Meetings shall be conducted under the current edition of Robert's Rules of Order, Newly Revised Edition. 2.30.221 - Meetings —Time restrictions. A. The commission shall take no official action or address any other items on the agenda after 10:30 p.m. and shall adjourn any regular or special meeting no later than 10:30 p.m. 1. The time for conclusion of business and adjournment is mandatory. 2. In the event the commission's business has not been completed by the time set herein, the commission may recess the meeting to another day, call a special meeting to complete the agenda and adjourn, or adjourn. B. If the meeting is adjourned without making other provisions for completion of the agenda items, then such uncompleted matters shall be presented at the next regularly scheduled commission meeting under the agenda section for unfinished business. C. The commission shall not adjourn prior to 10:30 p.m. unless all agenda items have been addressed, and presentations and comments by members of the general public have been heard. SEWARD, ALASKA ORDINANCE 2023-002 2.30.223 Voting. The affirmative votes of at least a majority of those Commissioners present shall be required for official action unless a larger majority is required by law. 2.30.224 Minutes. A. The clerk to the commission shall keep minutes of all meetings. B. The minutes shall record the vote of each member on every question. C. The minutes shall be filed with the City Clerk's Office and shall be a public record. 2.30.225 - Powers and duties. A. The commission shall perform the following duties: 1. Interpret the provisions of this title and make compliance determinations when requested by the administrative official; 2. Review and act upon requests for variance permits, conditional use permits, and other matters requiring consideration under the Seward Zoning Code; 3. Review the City of Seward Comprehensive Plan on an annual basis and conduct a minimum of one public hearing. Said recommendations shall be forwarded to the council for consideration; and 4. Promote public interest and understanding of comprehensive planning, platting, zoning, land management and other issues relating to community planning and development. B. The commission shall act in an advisory capacity to the city council regarding the Seward Zoning Code, Seward Comprehensive Plan, Official Zoning Map, Official Land Use Plan Map, and other duties as requested by the city council. C. The commission shall act in an advisory capacity to the Kenai Peninsula Borough Planning Commission regarding the following matters: 1. Subdivision plat proposals; 2. Right-of-way and easement vacation petitions; 3. Kenai Peninsula Borough Comprehensive Plan and Coastal Zone Management Plan development, updates and amendments; and 4. City of Seward Comprehensive Plan amendments not otherwise delegated to the City of Seward. D. The commission shall have no authority to solicit or commit city funds without first obtaining approval of the city council. 2.30.230 — Compensation of commissioners. A. Commissioners shall be compensated for service on the planning and zoning commission at the rate of $100 per month; and B. Each commissioner shall be paid quarterly on the payday for the first pay period ending in January, April, July and October of each year. Article 3. - Port and Commerce Advisory Board 320 SEWARD, ALASKA ORDINANCE 2023-002 2.30.310 - Established. A. Composition. The port and commerce advisory board is hereby created, consisting of seven residents of the City of Seward or surrounding areas, and who shall be appointed by the council. 1. If there is more than one applicant for the position, the council shall appoint by ballot voting. 2. Applicants must receive at least four votes in order to be appointed. 3. No officer or employee of the city may be appointed a member of the board. B. Chair and vice chair. 1. The board shall select a chair and vice chair annually. A ehair-man of the board shall b 2. The chair shall preside at all board meetin,-s, may participate in the debate, and vote on anv matter of the board. 3. In the absence of the chair, the vice chair shall exercise all the powers of the chair. C. The eity manager will appoint a eity employee to serve as an ex offieio member- of the boar-d who shall have the pr-ivilege of the floor- but not the right to vote. 2.30.315 - Terms of office; filling vacancies. A. Members of the port and commerce advisory board shall be appointed for a term of three years; provided, that the terms of initial appointments shall be staggered so that as nearly as possible a pro rata number of members shall be appointed for each year. B. The council may appoint any qualified person to fill a vacancy of any member of the board provided that the appointment shall be for the unexpired term of the vacancy. C. Following a member's absence from three consecutive regular meetings of the board, the remaining board members shall decide whether the board member should be retained or whether to request council appointment of a new member. D. Members shall not be paid for services on the board or participation in board activities without prior approval of the city council. 3.30.217 Staff assistance to board. A. The city manager, or desi,-nee, shall. 3. Assist the board and shall be qualified by special traininz and experience in the field of ports, harbors, and commerce; 4. Will be the re-ular technical advisor of the board, but shall not have the power to vote. C. City staff shall provide a clerk to the board. The clerk shall. 4. Properly advertise the meetin,-s as required by the Alaska Open Meetin,-s Act, 5. Prepare the board packet, and 6. Attend the board meetinz and keep a record of board proceedinzs. 2.30.320 - Meetings and quorum. A. The board will meet at a time and place to be designated by the board. In selecting its meeting place, the board shall consider the reasonable accommodation of the public. 01A SEWARD, ALASKA ORDINANCE 2023-002 B. Four members of the board shall constitute a quorum for the transaction of business except that, in the absence of a quorum, any number less than a quorum may adjourn the meeting to a later date. C. The affirmative votes of at least a majority of those board members present shall be required for any action. D. All meetings and reeords of the board shall be open to the publie. The board clerk to the commission shall keep minutes of proceedings showing the vote of each member upon each question and shall keep records of any actions, all of which shall be immediately filed in the office of the city clerk and shall be a public record. 2.30.325 - Powers and duties. A. It shall be the responsibility of the port and commerce advisory board to: 1. Report annually to the city council at the first council meeting of the new fiscal year and at any other time as may be requested by the city council. The annual report shall include, at the minimum, a report on the prior year's activities, and a list of any aft6eip requests for appropFiations fo-r- the upcoming year's planned activities and a r-eeommendation regarding the eontintiation of the board--. 2. Make recommendations to the city council concerning the design and coordination of projects to promote and develop transportation, trade, energy and commerce throughout Seward; 3. Provide input to the city council on policy and procedural matters involving the establishment and continuance of commercial activity, improving the quality of life and protecting the public's best interest; 4. Advise the city council on matters involving the establishment of support services towards the objectives outlined in subsections 2.30.325(a)(2) and 2.30.325(a)(3); 5. Perform other duties as requested by the city council. B. The board shall have no authority to solicit, expend or commit city funds without first obtaining approval by and any necessary appropriations from the city council. 2.30.330 Continuation. - The eit-y eouneil, > may eontim the existenee of the board. lia the absenee of an eease to exist within 30 days. affirmative vote by the eouneil, the board wiU Article 4. - Historic Preservation Commission 2.30.410 - Established. A. An historic preservation commission is hereby created, consisting of seven residents of the City of Seward or surrounding areas, who shall be appointed by the council. If there is more than one applicant for the position, the council shall appoint by ballot voting. Applicants must receive at least four votes in order to be appointed. No officer or employee of the city may be appointed a member of the commission. SEWARD, ALASKA ORDINANCE 2023-002 B. To the extent available in the community, three commission members shall be professionals, as defined in Appendix A of 36CFR 611, from the disciplines of history, architecture or architectural history and archaeology. If the commissioners are not professionals in the disciplines of history, architecture or architectural history, and archaeology, then consultants in these disciplines will be appointed as consultants to the historic preservation commission. Consultant appointments shall be approved by the historic preservation commission and must be qualified under the standards defined in Appendix A of 36 CFR 61. C. A chairman of the commission shall be selected annually by the appointed members. D. The city manazer, or desi,-nee, shall assist the commission and shall be qualified by special traininz and experience in the field of historic preservation. City staff will be the regular technical advisor of the commission, but shall not have the power to vote. E. City staff shall provide a clerk to the commission. The clerk shall. 1. Properly advertise the meetin,-s as required by the Alaska Open Meetings Act; 2. Prepare the commission packet, and 3. Attend the commission meetin,-s and keep a record of commission proceedin,-s. Footnote: 36 CFR Part 61, Appendix A - Professional Oualifacations Standards; Code of Federal Regulations, Procedures for Approved State & Local Government Historic Preservation Prozrams; related to Certified Local Governments (CLG). 2.30.415 - Terms of office; filling vacancies. A. Members of the historic preservation commission shall be appointed for a term of three years, provided that the terms of initial appointments shall be staggered so that as nearly as possible a pro rata number of members shall be appointed for each year. B. The city council, may appoint any qualified person to fill a vacancy of any member of the board provided that the appointment shall be for the unexpired term of the vacancy. C. Following a member's absence from three consecutive regular meetings of the commission, the remaining commission members shall decide whether the commission member should be retained or whether to request council appointment of a new member. 2.30.420 - Meetings and quorum. A. The commission will meet at least twice each year at a time and place to be designated by the commission. B. Four members of the commission shall constitute a quorum for the transaction of business, except that, in the absence of a quorum, any number less than a quorum may adjourn the meeting to a later date. The affirmative votes of at least a majority of those commission members present shall be required for any action. C. All meetings and reeords of the eommission shall be open to the pu The eommission clerk to the commission shall keep minutes of proceedings showing the vote of each member upon each question and shall keep records of any actions, all of which shall be immediately filed in the office of the city clerk and shall be a public record. 2.30.425 - Powers and duties. 323 SEWARD, ALASKA ORDINANCE 2023-002 A. It shall be the responsibility of the historic preservation commission to: 1. Develop a local historic plan that will include provisions for identification, protection and interpretation of the area's significant resources. Such a plan is to be compatible with the Alaska Historic Preservation Plan and to produce information compatible with and for the Alaska Heritage Resources Survey. 2. Survey and inventory community historic architectural and archaeological resources within the community. 3. Review and comment to the state historic preservation officer on all proposed National Register nominations for properties within the community area. 4. Act in an advisory role to other officials and departments of local government regarding the identification and protection of local historic and archaeological resources. 5. Work toward the continuing education of citizens regarding local historic preservation and community history. 6. Support the enforcement of the Alaska Historic Preservation Act, AS 41.35. 7. Review local projects and recommendations about the effect on properties identified in the local historic preservation inventory. B. The commission shall have no authority to solicit, expend or commit city funds without first obtaining approval by and any necessary appropriations from the city council. Chapter 2.35. - Indemnification 2.35.010 - Definitions. As used in this chapter: A. Claim means any claim, demand, administrative proceeding, arbitration or lawsuit. B. Employee means any individual who currently serves, or in the past has served, as any of the following: 1. An officer of the city, as defined in section 2.1 of the Charter. 2. An appointed member of any city board, commission or committee. 3. An employee of the city. C. Employment means rendering services to the city as an employee. 2.35.015 - Indemnification. Subject to the conditions and limitations set forth in this chapter, the city shall defend, indemnify and hold harmless an employee against any claim resulting from any conduct, act or omission of such employee within the scope of employment by the city. 2.35.020 - Exclusions. A. The city's obligations under section 2.35.015 shall not apply to any claim against an employee: 1. Based upon the gross negligence, willful misconduct, or dishonest, fraudulent or criminal conduct, of the employee; or 2. By or on behalf of the city, including without limitation any action initiated by the city under title 3 of this code. 324 SEWARD, ALASKA ORDINANCE 2023-002 B. The obligations of the city under section 2.35.015 shall not apply to the extent that the employee is indemnified or defended under: 1. A policy of insurance provided by or on behalf of the city; or 2. An agreement between the city and a third parry. C. Nothing in subsection (a) of this section shall limit the coverage of any policy of insurance or agreement between the city and a third party that otherwise would provide for the indemnification or defense of an employee. 2.35.025 - Determination of exclusion. The city attorney, or an attorney designated by the council, shall determine whether the city's obligations under section 2.35.015 apply to a claim against an employee. There shall be no appeal from such determination, except to the superior court by an action for declaratory judgment. 2.35.030 - Conditions to indemnification and defense. The city's obligations under section 2.35.015 shall not apply to any claim against an employee where the employee fails or refuses to comply with any of the conditions in sections 2.35.035 through 2.35.045. 2.35.035 - Cooperation in defense and settlement. The employee shall cooperate in the defense and settlement of the claim, including without limitation: A. Promptly giving the city attorney written notice of any incident potentially giving rise to a claim against the employee, which notice shall identify the employee and provide all information concerning the incident known to the employee, including without limitation the date, time, place and circumstances of the incident, the names and addresses of all persons allegedly injured or otherwise damaged thereby, and the names and addresses of all witnesses; B. Forthwith delivering to the city attorney any claim, demand, notice, summons or other process received by the employee and relating to the claim; C. Cooperating with the city attorney or attorney designated by the council in defending the claim, including without limitation attending interviews, depositions, hearings and trials, responding to discovery requests, and assisting in securing and giving evidence and obtaining attendance of witnesses; D. Assisting the city in recovering any award for subrogation, contribution or indemnity against any third person that may arise from the claim from which the city indemnifies or defends the employee. 2.35.040 - Control of defense. The city shall have the sole right to control the defense and settlement of the claim. Defense of the claim shall be provided by the city attorney or other attorney designated by the council to represent the city with respect to the claim; provided that where conflict of interest between the city and the employee would cause that representation to violate applicable rules of professional conduct, the employee may select other counsel subject to the city's reasonable approval. SEWARD, ALASKA ORDINANCE 2023-002 2.35.045 - Discretion to compromise or settle. The city may, in its sole discretion, and without the consent or participation of the employee, compromise or settle the claim on any terms that impose no legal or financial obligation upon the employee. 2.35.050 - Payment of defense costs. A. Where the employee selects counsel as permitted under section 2.35.040, the city shall pay the reasonable fees and costs of such counsel for defense of the employee. B. Except as provided in subsection (a) of this section, after notice by the city to an employee of the city's assumption of the obligation under section 2.35.015 to indemnify and defend the employee with respect to a claim, the city shall not be liable to the employee for any legal or other expenses subsequently incurred by the employee in defending against the claim. 2.35.055 - Effect of city's assumption of obligations. A. No assumption by the city of the indemnification of defense of a claim against an employee shall be construed as a waiver by the city of any right under this chapter, including without limitation the right to determine that the claim, or any part thereof, is excluded under section 2.35.020, or that the employee breached any conditions or duties owed to the city under this chapter. B. No assumption by the city of the indemnification or defense of a claim against an employee shall preclude the city from taking any disciplinary or other employment action with respect to the employee under title 3 of this code. 2.35.060 - Reimbursement of expenses. If the city attorney or other attorney designated by the council under section 2.35.040 determines that the city's obligations under section 2.35.015 do not apply to a claim against an employee, and a court of competent jurisdiction later determines the obligations of the city under section 2.35.015 do apply to that claim, then the city will pay any judgment on the claim rendered against the employee and reasonable attorney's fees incurred by the employee in defending against the claim. Nothing in this chapter authorizes an award against the city of attorney's fees or costs incurred by an employee in obtaining a determination that the city's obligations under section 2.35.015 apply to a claim. 2.35.065 - Pending claims. The provisions of this chapter shall apply to any claim against an employee now pending or hereafter presented or filed, irrespective of the date of the events or circumstances which are the basis of the claim. Chapter 2.40. - Seward Community Health Center Board 2.40.010 - Purpose. K�1: SEWARD, ALASKA ORDINANCE 2023-002 It is the purpose of this chapter to authorize the board of directors for the Seward Community Health Center, an independent non-profit entity, to operate a community health center in Seward. The city and the board intend to work cooperatively together- to improve access to primary health care in the community, pursuant to Section 330 of the Public Health Service Act (42 U.S.C. § 254b). 2.40.020 - SCHC Board. A. There is established the Seward Community Health Center ("SCHC") Board of Directors ("board"), serving as the co -applicant board providing the required community -based governance for the community health center. B. The board shall operate the SCHC consistent with the requirements of federally qualified health centers under Section 330 of the Public Health Service Act (42 U.S.C. §254b), in the best interests of the community, this chapter 2.40 of the Seward City Code, and in accordance with its own bylaws. 2.40.030 - Powers and duties of the board. A. The board shall operate SCHC consistent with the requirements of community health centers under Section 330 of the Public Health Service Act (42 U.S.C. § 254b), and shall appoint an executive director for SCHC, who shall serve at the pleasure of the board. The board shall submit an annual budget for the health center to the council for approval, as a co -applicant requirement of Section 330. The board shall submit the budget no later than October 1 of each year, for the following fiscal year. If the board unreasonably fails to approve an annual budget, the city may still submit the annual funding request under Section 330 of the Federal Public Health Service Act. No budget shall become effective without council approval. B. The board shall provide annually all the SCHC records necessary to assure that the SCHC operations comply with applicable federal, state and local laws and regulations. C. The board shall enter into a co -applicant agreement with the City of Seward. 2.40.040 - City powers and duties. A. The city shall have access to SCHC records necessary to assure that the SCHC operations comply with applicable federal, state and local laws and regulations. B. The city shall provide fiscal oversight in accordance with current law and city policies. C. The city council shall be responsible for adopting the community health center's annual operating and capital budgets as finally approved by the board; the city council may not unilaterally revise a budget approved by the board or approve an alternate budget for the community health center without review and final approval by the board, which then returns to council as governed in Seward City Code 2.40.030 (a). D. If approved by council resolution, the city may provide human resources, risk management, legal, accounting, and general administrative services to the SCHC. Section 2. This ordinance shall take effect ten (10) days following its enactment. 327 SEWARD, ALASKA ORDINANCE 2023-002 ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA this 13th day of February, 2023. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Brenda J. Ballou, MMC City Clerk (City Seal) THE CITY OF SEWARD, ALASKA Sue McClure, Mayor 328 Resolution 2023-013: Approving an Agreement with Kenai Mountain Public Media, Inc. for Joint Use of the City's Satellite Receiving Dish, Equipment Shelter and Tower Located on Lots 9, 10, and 11 Block 16, Original Townsite of Seward For FM Radio Receiving and Transmitting Purposes Documents: • Agenda Statement • Resolution 2023-013 • Attachments: o Joint Use of Equipment Lease Agreement 019 City Council Agenda Statement Meeting Date: February 13, 2023 To: City Council Through: Janette Bower, City Manager Agenda Item: Resolution 2023-013: Approving an Agreement with Kenai Mountain Public Media, Inc. for Joint Use of the City's Satellite Receiving Dish, Equipment Shelter and Tower Located on Lots 9, 10, and 11 Block 16, Original Townsite of Seward For FM Radio Receiving and Transmitting Purposes Background and justification: Kenai Mountain Public Media, Inc has requested to use of the City's Satellite receiving dish, electronic building, equipment rack, and tower located on Lots 9, 10 and 11 Block 16 that provide FM Radio service at 91.7 KIBH-FM and 106.1 MHZ to the Community. This allows accessibility to commercial radio broadcasting for public service announcements, emergency announcements, news, weather, entertainment, and business. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive 3.9 Quality of Life Plan: Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): X Creates revenue in the amount of: $ 450.00 Quarterly Creates expenditure in amount of: $ Creates a savings in the amount of: $ Has no fiscal impact Funds are (✓): Budgeted Line item(s): x Not budgeted Not applicable Finance Director Signature: �7 Attorney Review,/ Administration Recommendation X Yes X Adopt Resolution Not applicable Other: wit, Sponsored by: Bower Public Hearing: February 13, 2023 CITY OF SEWARD, ALASKA RESOLUTION 2023-013 A Resolution of the City Council of the City of Seward, Alaska, Approving an Agreement with Kenai Mountain Public Media, Inc. for Joint Use of the City's Satellite Receiving Dish, Equipment Shelter and Tower Located on Lots 9, 10, and 11 Block 16, Original Townsite of Seward For FM Radio Receiving and Transmitting Purposes WHEREAS, Kenai Mountain Public Media, Inc. (KMPM) has requested that the City allow a joint use of its TV/Radio electronics building and tower located on Lots 9, 10 and 11, Block 16, Original Townsite of Seward to provide FM radio service at 91.7 KIBH-FM and 106.1 MHZ to the community; and WHEREAS, KMPM has acquired access to a satellite signal and the required Federal Communications Commission (FCC) licensing for the proposed site; and WHEREAS, it is in the public interest to provide the citizenry of the City of Seward the accessibility to commercial radio broadcasting for public service announcements, emergency announcement, news, weather, entertainment and business; and WHEREAS, the City Charter Chapter 12.3 states, "The council shall have power to enter only into contracts which, by the terms thereof, will be fully executed within a period of five years. This limitation shall not apply to contracts concerning interests in real property"; and WHEREAS, the City Council has determined that the use of its electronic satellite receiving dish, equipment shelter and tower by KMPM for the purposes described herein would be in the public 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 sign the Joint Use Of Equipment Lease Agreement, attached and incorporated herewith by reference, with Kenai Mountain Public Media, Inc. for the use of a portion of City -owned satellite receiving dish, electronics building, and tower located on Lots 9, 10 and 11, Block 16, Original Townsite of Seward to provide FM radio service at 91.7 KIBH-FM and 106.1 MHZ to the Seward community. Section 2. This resolution shall take effect immediately upon its adoption. WE JOINT USE OF EQUIPMENT LEASE AGREEMENT between CITY OF SEWARD, ALASKA and KENAI MOUNTAINS PUBLIC MEDIA, INC. 332 TABLE OF CONTENTS ARTICLE 1 - EQUIPMENT 1.1 DESCRIPTION OF EQUIPMENT l 1.2 LESSEE'S RIGHT TO USE 2 1.3 EQUIPMENT ACCEPTED "AS -IS" 2 1.4 PERMITS 2 ARTICLE 2 - TERM 2.1 TERM 2 2.2 TERMINATION 2 2.3 NO PURCHASE OPTION 2 ARTICLE 3 RENTAL RATE 3.1 RENTAL RATE 2-3 3.2 LATE PAYMENT CHARGE 3 ARTICLE 4- USE OF EQUIPMENT 4.1 USE OF EQUIPMENT 3 4.2 OBLIGATIONS OF LESSEE 3-4 4.3 NO PREFERENTIAL RIGHTS TO USE PUBLIC FACILITIES 4 4.4 CONDITION OF EQUIPMENT 4 4.5 PAYMENT OF TAXES 4 4.6 OTHER USES 4 ARTICLE 5 - INSTALLATION BY LESSEE 5.1 IMPROVEMENTS OF EQUIPMENT 5 5.2 CITY REVIEW OF CONSTRUCTION 5 ARTICLE 6 RETURN OF EQUIPMENT CONDITIONS 5 ARTICLE 7 - FORCE MAJEURE ARTICLE 8 - CITY ACTS OF DEFAULT 5-6 51 ARTICLE 9 - REMEDIES FOR CITY'S ACTS OF DEFAULT 7 ARTICLE 10 - LESSEE'S ACTS OF DEFAULT 3 ARTICLE I 1 REMEDIES FOR DEFAULT BY LESSEE 9-10 ARTICLE 12 TITLE TO IMPROVEMENTS INSTALLED BY LESSEE 10 ARTICLE 13 SUBLEASE OR ASSIGNMENT 13.1 ASSIGNMENT OF AGREEMENT OF SUBLEASING 10 333 13.2 ASSIGNMENT OF AGREEMENT FOR SECIjRITY 10-11 13.3 ASSIGNMENT BY CITY 11 ARTICLE 14 - LESSEE'S DUTY TO DEFEND4NDEMNIFY I 1-12 ARTICLE 15 CITY'S DUTY TO DEFEND/INDEMNIFY 12 ARTICLE 16 INSURANCE 16.1 MINIMUM INSURANCE REQUIREMENTS 12 16.2 SUBROGATION RIGHTS WAIVED 12-13 ARTICLE 17 ARBITRATION 13-14 ARTICLE 18 MAINTENANCE AND REPAIRS 18.1 NONNA/MAINTENANCE 14 18.2 SAFETY ISSUES 14 18.3 COST OF REPAIRS 15 ARTICLE 19 NO WAIVER OR BREACH 15 ARTICLE 20 TIME OF THE ESSENCE 15 ARTICLE 21 - COMPUTATION OF TIME 15 ARTICLE 22 - SUCCESSORS IN INTEREST 16 ARTICLE 23 - ENTIRE AGGREEMENT 16 ARTICLE 24 - GOVERNING LAW 16 ARTICLE 25 PARTIAL INVALIDITY 16 ARTICLE 26 RELATIONSHIP OF PARTIES 16 ARTICLE 27 INTERPRETATIONS 16 ARTICLE 28 CAPTIONS 17 ARTICLE 29 - AMENDMENT 17 ARTICLE 30 - NOTICES 17 334 JOINT USE OF EQUIPMENT LEASE AGREEMENT This JOINT USE OF. EQUIPMENT LEASE AGREEMENT (the "AGREEMENT") is made by and between the CITY OF SEWARD (the "CITY"), a municipal corporation located in the Kenai Peninsula Borough, State of Alaska and whose mailing address is P.O. Box 167, Seward, Alaska 99664, and KENAI MOUNTAINS PUBLIC MEDIA INC. ("LESSEE"), an Alaskan nonprofit corporation whose mailing address is P.O. Box 816, Seward, Alaska 99664. WHEREAS, Kenai Mountains Public Media, Inc. (KMPM) has requested that the City allow a joint use of its TV/Radio electronics building and tower located on Lots 9, 10 and 11, Block 16, Original Townsite of Seward to provide FM radio service to the community; and WHEREAS, the Seward City Council did, by Resolution 21 X& authorize the City administration to negotiate an agreement with Kenai Mountains Public Media. Inc. ; and WHEREAS, KMPM has acquired access to a satellite signal and the required FCC licensing for the proposed and WHEREAS, it is in the public interest to provide the citizenry of the City of Seward the accessibility to public radio broadcasting for public service announcements, emergency announcement, news, weather, entertainment and business; and WHEREAS, the City Charter Chapter 12.3 limits agreements contracts with no land interest to terms of five (5) years or less; and WHEREAS, the City Council has determined that the use of its electronic satellite receiving dish, equipment shelter and tower bye PM for the purposes described herein would be in the public interest. NOW,THEREFORE, BE ITRESOLVED BYTHE CITY COUNCIL OFTHE CITY OF SEWARD, ALASKA, that: ARTICLE l -EQUIPMENT 1.1 Description of Equipment, The EQUIPMENT is located in the City of Seward, Alaska on Lots 9, 10 and 11, Block 16, Original Townsite of Seward. The EQUIPMENT is described as follows: • City of Seward's 5-meter satellite receiving dish, equipment shelters, equipment rack and tower 335 • Lessee's current equipment is depicted in the photograph marked Exhibit A 1.2 Lessee's Right to Use. Subject to the provisions of this AGREEMENT, CITY hereby coveys the non-exclusive use of the EQUIPMENT for the full term of this AGREEMENT. The EQUIPMENT shall at all times remain the property of the CITY. LESSEE will at all times protect and defend, at its own cost and expense, the ownersh ip of CITY against all claims, liens and legal processesofcreditorsofLESSEE and oth--r persons, and keep the EQUIPMENT free and clear from all such claims, liens arid processes. The EQUIPMENT is and shall remain personal property and not part of any real estate. Upon the expiration or termination of this AGREEMENT, LESSEE at its sole expense shall return the EQUIPMENT unencumbered to CITY and in the same condition as when received by LESSEE, subject to normal, non -abusive use. 1.3 Equipment. Accepted "As -is". LESSEE acknowledges that it has inspected the EQUIPMENT and accepts the same "as -is" and without reliance on any cxpressf:d or implied representations or warranties of CITY, or agents of CITY, as to the actual physical condition or characteristics thereof, including but not limited to the description) of the EQUIPMENT found in Section 1.1. 1.4 Permits. LESSEE, at its sole cost, shall obtain all local, state and federal permits necessary to the operation of the EQUIPMENT. ARTICLE 2 -TERM 2.1 Term. The term of this AGREEMENT shall be in accordance with CITY authorization Resolution No. 2022-XXX (the "Resolution") and continue in effect for four (4) years, 364 days unless sooner terminated as described in this AGREEMENT. The term shall commence with the effective date of the Resolution, and that date shall be the effecti, e date of this AGREEMENT (the "Effective Date"). This AGREEMENT is not subject to renewal. 2.2 Termination. Either party may cancel this AGREEMENT upon thirty (30) days' written notice to the other. 2.3 No Purchase Option. LESSEE shall have no option to purchase or otherwise acquire title to or ownership of any of the EQUIPMENT, and shall have only the right to use the same under and subject to the terms and provisions of this AGREEMENT. ARTICLE 3 - RENTAL RATE 1i Rental Rate. Throughout the term of this AGREEMENT, rental rate for use of the 2 336 EQUIPMENT shall beset atone dollar ($1) per year which includes the cost of utilities and use of the EQUIPMENT. Rent shall be payable annually in advance upon the Effective Date of this AGREEMENT and thereafter on or before the 30th day of the October each year during the term of this AGREEMENT. ARTICLE 4 - USE OF EQUIPMENT 4.1 Use qf' EQUIPMENT. Use of the EQUIPMENT by LESSEE has been determined by the City Council of CITY to be in the public interest. 4.2 Obligations of Lessee. LESSEE may use the EQUIPMENT provided the following conditions are met: a) The EQUIPMENT is to be completely cleaned and restored to its present condition or better upon termination of this AGREEMENT b) LESSEE agrees to prohibit the use, keeping, storage, or disposal of hazardo-is materials on or near the EQUIPMENT or the land upon which the EQUIPMENT is located. c) LESSEE shall use the EQUIPMENT solely to provide FM radio service to the Seward community. d) LESSEE shall, at its own expense, firmly affix, in a conspicuous place on its equipment, a decal, or metal or plastic plate identifying each piece as belonging to LESSEE. LESSEE shall not affix any other signs, decals or labels to the EQUIPMENT. So long as LESSEE shall not be in default under this lease, LESSEE may possess and use the EQUIPMENT in accordance with this AGREEMENT. e) The EQUIPMENT shall be used in the lawful business of LESSEE and shz.11 be kept at Seward, Alaska. LESSEE shall not, without CITY's prior written consent, remove the EQUIPMENT from such location, part with possession or control of the EQUIPMENT or sell, pledge, mortgage or otherwi ie encumber the EQUIPMENT or any part thereof or assign or encumber arty interest under this AGREEMENT. f) LESSEE is solely responsible for the security of all personal property )f LESSEE which LESSEE attaches to or places in or on the EQUIPMENT. 4.3 No Preferential Rights to Use Public Facilities. This AGREEMENT does not grant ;o 3 337 LESSEE any exclusive rights to use any public facilities constructed or operated by CITY. LESSEE will be subject to any tariffs, procedures, rules and regulations of CITY concerning the use of such facilities as they may now exist or from time to time be amended, and LESSEE shall not be entitled to any exclusive use. The CITY is not awarding a franchise ormonopoly to LESSEE via this AG REEM ENT since the Federal Communications Commission regulates FM transmission service. 4.4 Non -Interference. LESSEE's use of the EQUIPMENT shall not interfere with the reception or broadcast of CITY or State of Alaska VHF and UHF stations and shall not unreasonably interfere with the transmission signals of any other tenant of CITY. If interference develops, LESSEE shall be responsible for correcting any interfereni:e problems generated by LESSEE'S personal property or use of the EQUIPMENT. If LESSEE fails to correct such interference this AGREEMENT shall be null and void whether or not CITY issues a notice of termination. 4.5 Condition oj'EQUIPMENT. LESSEE hereby acknowledges that CITY is not the manufacturer of the EQUIPMENT, nor manufacturer's agent, and that CITY makes no warranty or representation, either express or implied, as to the fitness for arty particular purpose, the quality or capacity of the materials in the EQUIPMENT or workmanship of the EQUIPMENT, or that the EQUIPMENT will satisfy the requirements of any law, rule, specification or contract which provides for specific machinery or operators, a special methods. No defect or unfitness of the EQUIPMENT shall relieve LESSEE of any obligations to CITY under this AGREEMENT. 4.6 No WarrantylIntegration. No oral agreement, guaranty, promise, condition, representation or warranty, nor any oral modification hereof shall be binding. All prior conversations, agreements or representations related to this AGREEMENT or to the EQUIPMENT are integrated herein, and LESSEE has inspected the EQUIPMENT and has satisfied itself that the EQUIPMENT is sufficient for the intended uses by LESSEE. CITY makes no representations or warranties of arty nature with respect to the commercial practicability or accuracy of any information provided by CITY. 4.7 Payment of Taxes. LESSEE will pay all taxes related to its operations of the EQUIPMENT and LESSEE's interest in this AGREEMENT, if any, before such obligations become delinquent; provided, that LESSEE may, in good faith and before such delinquency, contest any such charge or assessment. 4.8 Other Uses. This AGREEMENT 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 land or EQUIPMENT should this AGREEMENT be terminated for any reason.. 2 338 ARTICLE 5 - INSTALLATION BY LESSEE 5.1 Improvements on Equipment CITY expressly consents to placement of all LESSEE'S personal property currently attached to or placed on the EQUIPMENT. LESSEE shall have the right to erect, maintain, alter, remodel, reconstruct, rebuild, and/or install improvements on the EQUIPMENT, or to attach or place additional LESSEE personal property in or on the EQUIPMENT subject to the following conditions: a) Prior to any such construction or installation LESSEE shall have submitted plans to CITY for review and approval. b) The cost of any such construction, reconstruction, demolition, or of any change s. alterations or improvements, shall be bome and paid for by LESSEE. c) The EQUIPMENT and the land upon which the EQUIPMENT is located shall at all times be kept free of mechanic's and materialmen's liens_ d) LESSEE shall supply CITY with a copy of all Radio Frequency (RF) and Frequency Inter -modulation studies, equipment plans and specifications prior .o commencement of installation e) CITY may, as contemplated by Alaska Statutes, give notice of noa- responsibility for any improvements constructed or effected by LESSEE on the EQUIPMENT f) LESSEE shall comply with all federal, state and local statutes and regulations with respect to such construction including any required finding by the City Council of Seward that such action is in the public interest. 5.2 City Review of Construction. CITY shall have the right to review initial plans, including those supplied to CITY under Section 5.1 above, and any future chang:s or additions to the EQUIPMENT, by reviewing the design thereof prior to the commencement of installation or modifications. CITY shall have the sole and exclusive right to approve or deny any such proposed construction and installation. ARTICLE 6 - RETURN OF EQUIPMENT CONDITIONS Subject to the provisions herein, upon termination of this AGREEMENT for any reason, LESSEE shall return the EQUIPMENT to CITY in the same condition as at the commencement of this AGREEMENT, subject to normal, non -abusive use. 5 339 ARTICLE 7 - FORCE MAJEURE In the event either LESSEE or CITY is delayed from performance of any of its obligations under this AGREEMENT, due to acts of God, acts of the enemies of the United States -)f America, sabotage, war, blockade, insurrection, riot, epidemic, fire, flood, explosion, earthquake/tsunami, civil disturbanceor 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 8 - CITY ACTS OF DEFAULT Each of the following shall be a "City Act of Default" under this AGREEMENT and the ternis "acts of default" and "default" shall mean, when they are used in this AGREEMENT, any one or more of the following events: 8,1 Failure by CITY to fulfill, observe or perform any covenants or agreements on its part to be observed or performed under this AGREEMENT for a period of thirty (30) days afterwritten notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to CITY by LESSEE; 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 CITY within the applicable period and diligently pursued until the default is corrected. 8.2 Violation by CITY of any applicable laws or regulations of the United States, the State of Alaska, the Kenai Peninsula Borough, or the City of Seward or any conditions of arty permits issued by agencies of the City of Seward, the Kenai Peninsula Borough, the State of Alaska or of the United States Government pursuant to the regulations of such agencies for a period of sixty (60) days after written notice specifying such violation his been given by the agency to CITY; 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 CITY within the applicable period and diligently pursued until the violation is corrected. Furthermore, if CITY 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. ARTICLE 9 - REMEDIES FOR CITY'S ACTS OFDEFAULT 9.1 Whenever an act of default by CITY shall have occurred, and any applicable period fir giving notice and any opportunity to cure shall have expired, LESSEE shall have the following rights and remedies in addition to any rights and remedies that may be given to LESSEE by statute, common law or otherwise: 6 340 a) Withhold payment of any rent otherwise due CITY; b) Refuse to proceed with any of LESSEE's other performance obligations under this AGREEMENT; c) Recover from CITY, whether this AGREEMENT be terminated or not, reasonable attorney's fees and all other expenses incurred by LESSEE toy reason of the default by CITY; and d) Declare this AGREEMENT terminated. 9.2 No expiration or termination of this AGREEMENT shall expire or terminate arty liability or obligation to perform of CITY's which arose prior to the termination -)r expiration except insofar as otherwise agreed to in this AGREEMENT. 93 Each right and remedy of LESSEE provided for in this AGREEMENT shall lie cumulative and shall be in addition to every other right or remedy provided for in this AGREEMENT, now or hereafter existing at law or in equity or by statute or otherwis and the exercise or beginning of the exercise by LESSEE of any one or more of the rights and remedies provided for in this AGREEMENT, now or hereafter existing at law or n equity or by statute or otherwise, shall not preclude the simultaneous or later exercise l,y LESSEE of any or all other rights or remedies provided for in this AGREEMENT, now or thereafter existing at law or in equity or by statute or otherwise. 9.4 No delay or omission to exercise any right or power accruing following an act of defat It shall impair any such right or power or shall be construed to be a waiver thereof, but at.y such right and power may be exercised from time to time and as often as may be deem( d expedient. ARTICLE 10- LESSEE'S ACTS OFDEFAULT Each of the following shall be a "LESSEE Act of Default" under this AGREEMENT ar.d the terns "acts of default" and "default" shall mean, whenever they are used in this AGREEMENT, any one or more of the following events: 10.1 Failure by LESSEE to observe, fulfill or perform any covenants, conditions - )r agreements on its part to be observed or performed under this AGREEMENT other than payment of rent for a period of thirty (30) days after written notice specifyir-g such failure, requesting that it be remedied, and stating that it is a notice of default, h: is been given to LESSEE by CITY; provided, however, that ifsaid default is such that it cannot be corrected within the applicable period, it shall not constitute an act of defaL It 7 341 if corrective action is instituted by LESSEE within the applicable period and diligent y pursued until the default is corrected. 10.2 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 )r bankrupt, the petition or application by LESSEE to any tribunal for any receiver or arty 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 avy jurisdiction, whether now or hereafter in effect which shall remain undismissed for a period of six (6) months from the date of commencement thereof. 10.3 Violation by LESSEE of any laws or regulations of the United States, or of the State A 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 EQUIPMENT, pursuant to the regulations of such agencies, for a period of sixty (60) days after written notice specifying such violation h.Is 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 un-.il 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 co cause a stoppage, interruption or threat to the activities of any person or entity other than those of LESSEE. 10.4 LESSEE shall cease to do business as a going concern or the FCC license expires or is revoked. 10.5 LESSEE attempts to remove or sell or transfer or encumber or sublet or part with possession of any of the EQUIPMENT. ARTICLE 11-REMEDIES FOR DEFAULT BY LESSEE 11.1 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: 8 342 a) 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 45.09.504) with respect to sale of property shall be a commercially reasonable disposal. b) CITY may take possession of the EQUIPMENT and, except for arty personal property of LESSEE which CITY has waived its right to distrain under sub -paragraph 11.1 above, remove all personal property of LESSEE from the EQUIPMENT. 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. 11.2 In addition to the above, CITY may: a) Declare this AGREEMENT terminated; b) Collect any and all rents due or to become due; c) Recover from LESSEE, whether this AGREEMENT 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 rent reserved under this AGREEMENT discounted to the date of such breach at the rate of eight percent (S%) per year. If the EQUIPMENT or any part thereof be re -let by CITY for the unexpired term of this AGREEMENT, CITY shall reimburse to LESSEE upon receipt an amount not to exceed the amount received by CITY under this paragraph. 11.3 If LESSEE does not immediately surrender possession of the EQUIPMENT after termination by CITY and upon demand by CITY, CITY may forthwith enter into and upon and repossess the EQUIPMENT 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. 11.4 No expiration or termination of this AGREEMENT shall expire or terminate arty liability or obligation to perform of LESSEE's which arose prior to the termination or expiration except insofar as otherwise agreed to in this AGREEMENT. 9 343 I I.5 Each right and remedy of CITY provided for in this AGREEMENT shall be cumulati—e and shall be in addition to every other right or remedy provided for in this AGREEMENT or now or hereafter existing at law or in equity or by statute or otherwis and the exercise or beginning of the exercise by CITY of any one or more of the rights and remedies provided for in this AGREEMENT or now or hereafter existing at law )r in equity or by statute or otherwise shall not preclude the simultaneous or later exerci;e by CITY of any or all other rights or remedies provided for in this AGREEMENT Jr now or thereafter existing at law, or in equity or by statute or otherwise. 11.6 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 al�y such right and - power may be exercised from time to time and as often as may be deemi:d expedient. ARTICLE 12 - TITLE TO IMPROVEMENTS INSTALLED BY LESSEE Any other provisions of this AGREEMENT to the contrary notwithstanding, LESSEN, upon termination of this AGREEMENT for any reason, may, but need not, promptly remove, in no event later than thirty (30) days from the termination ofthe AGREEMENT, LESSEE's trade fixtures and equipment provided that LESSEE shall repair any damages to the EQUIPMENT caused by such removal. Any equipment not removed shall at sole discretion of CITY, be removed by the CITY at LESSEE's expense or be retained by the CITY .is CITY property. ARTICLE 13-SUBLEASE OR ASSIGNMENT 13.1 Assignment of Agreement or Subleasing. The parties recognize that this AGREEMENT has been determined to be in the public interest by the City Council of CITY for the reasons set forth in the Resolution. LESSEE may not assign or sublease this AGREEMENT or any part of the EQUIPMENT. 13.2 Assignment of Agreement for Security. Notwithstanding Section 13.1 above, LESSEE may assign, encumber or mortgage its interest in this AGREEMENT, by deed of trust or other security instrument, to an institutional lender ("Lender") for development of LESSEE's broadcasting operations on the EQUIPMENT, provided that Lender shall be subject to all obligations of LESSEE under the terms of this AGREEMENT upon foreclosure. CITY shall furnish Lender, at the address provided to CITY by Lender in writing, with notice of any default or breach of LESSEE under this AGREEMENT. Lender shall have the right (without being required to do so and without thereby assuming the obligations of LESSEE under th is AGREEMENT) tomakc: good such default or breach within thirty (30) days aft:r written notice specifying such breach. Notwithstanding the provisions of Article : 1 above, no "Lessee Act of Default" shall exist until expiration of thirty (30) days after such notice is furnished to Lender; provideds UNI 344 a) If Lender, with respect to any default or breach other than a failure to make ally 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 AGREEMENT or reset the EQUIPMENT 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 10.3, CITY sh,- 11 not exercise any of the remedies afforded to it under Article 1 I above so long as LESSEE or Lender remains in possession of the EQUIPMENT ar-d satisfies LESSEE's obligations under the terms of this AGREEMENT. Upc n foreclosure or other assertion of its security interest, Lender may furth :r assign, transfer, or dispose of its interests, provided that any subseque-it assignee, purchaser or transferee shall remain bound by each and every ter.n of this AGREEMENT. 13.3 Assignment by City. This AGREEMENT and all rights of CITY hereunder shall he assignable by CITY without LESSEE's consent, but LESSEE shall not be obligated to any assignee of CITY, except after written notice of such assignment sent by regular mail from CITY. ARTICLE 14 - LESSEE'S DUTY TO DEFENDANDEMNIFY LESSEE shall defend, indemnify and hold the CITY harmless from any and all liability and loss of any kind, arising out of or resulting from actual or alleged use of the EQUIPMENT by LESSEE, its agents, employees, contractors or the public, except for damages arising from the sole gross negligence or willful acts or omissions of CITY, its agents, employees or contractors. LESSEE shall, at LESSEE's own cost and expense, defend any and all suits or claims which may be brought against CITY, either alone or in conjunction with others, upon any such liability or claim and shall reimburse the CITY's costs and expenses incurred in negotiating, settling, defending or otherwise protecting the CITY against such claims. 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. LESSEE shall satisfy, pay and discharge any and all judgments and fines that may be recovered against CITY in any such action, provided, however, that CITY shall give LESSEE written notice of any such claim or demand. ARTICLE 15 - CITY'S DUTY TO DEFENDIINDEMNIFY 345 CITY shall defend, indemnify, and hold LESSEE harmless from any and all liability )r claims for damages, including personal injuries, death and property damage arising from the sole gross negligence or willful acts or omissions of CITY, its agents, employees, -rr contractors or from the condition of the EQUIPMENT prior to the Effective Date. ARTICLE 16 - INSURANCE 16.1 Minimum Insurance Requirements. Prior to commencement of the AGREEMENT Term, LESSEE shall procure and maintain, at its sole cost and expense, commercial general liability insurance, with limits of liability of ONE MILLION DOLLARS ($1,000,000) for all injuries and/or deaths resulting to any one person and ONE MILLION DOLLARS ($1,000,000) limit from any one occurrence, and maintain at all times property damage, fire, and comprehensive insurance for the full insurabce value of LESSEE's equipment. Coverage under such insurance shall also include explosion, collapse and underground property damage hazards. Such insurance shell include contractual liability. The minimum amounts and types of insurance provided by LESSEE shall be subject to revision in accordance with standard insurance practices, in order to provide continuously throughout the term of this AGREEMENT, a level A protection consonant with good business practice and accepted standards in the industry. All insurance policies shall naive the city as insured and provide for thirty (30) da) s' notice of cancellation and/or material change to be sent to CITY at the addreis designated in ARTICLE 30 of this AGREEMENT. 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). LESSEE shall furnish CITY, certificates evidencing that it has procured the insurance required herein prier to LESSEE' s possession and operation of the EQUIPMENT. Nothing here n 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. 16.2 Subrogation Rights Waived. All of the insurance policies required above as well as any other insurance carried by LESSEE or CITY shall provide that the insurers waive their rights of subrogation against each other and their respective officers, servants, agents )r employees. LESSEE and CITY further agree to waive and agree to have their insurers waive any rights of subrogation (whether by loan receipts, equitable assignment )r otherwise), with respect to deductibles under such policies and with respect to damage to EQUIPMENT including the loss of use thereof, whether insured or not. LESSEE shall also name CITY as an additional insured on the general liability insurance polii y maintained by LESSEE as required above, excluding coverage for claims resulting from CITY's sole negligence. 12 346 ARTICLE 17 — DISPUTE RESOLUTION 17.1 Disputes between the parties with respect to the performance of this AGREEMENT that cannot be resolved by the parties, shall be resolved exclusively in the courts for the State of Alaska Third Judicial District. ARTICLE 18 - MAINTENANCE AND REPAIRS 18.1 Maintenance. During the entire term of this AGREEMENT, LESSEE shall, at its sole cost, risk and expense, maintain the EQUIPMENT, including any improvements placed thereon by LESSEE, in as good condition as received or installed by LESSEE, subject to normal, non- abusive use. LESSEE shall, at its ova n cost and expense, (a) pay all charges and expenses in connection with the day-to-&y operation of the EQUIPMENT; (b) comply with all laws, ordinances, regulations, requirements, and rules with respect to the use, maintenance and operation of the EQUIPMENT. LESSEE shall maintain in first class condition at all times all fire, pollution and other protective equipment, if any are placed on the EQUIPMENT. LESSEE agrees to test, adjust and service the EQUIPMENT, if needed. 18.2 Cost of Repairs. If any facility or service provided by CITY to the EQUIPMENT shall become inadequate due to changes in local, state or federal laws or regulations or should EQUIPMENT require updating or improvement by reason of such a change LESSEE shall either construct such improvements at its own cost or reimburse CITY for such wo -k at the option of CITY. ARTICLE 19 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 AGREEMENT or to exercise any right or remec'y 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 AGREEMENT, but each and every term, covenant and condition of this AGREEMENT shall continue in full force and effect with respect to any other then existing or subsequent breach. ARTICLE 20 - TIME OF THE ESSENCE Time is of the essence of this AGREEMENT and/or each provision. ARTICLE 21- COMPUTATION OF TIME 13 347 The time in which any act provided by this AGREEMENT is to be done by shall lie 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 22 - SUCCESSORS IN INTEREST Each and all of the terms, covenants and conditions in this AGREEMENT shall inure o the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. ARTICLE 23 - ENTIRE AGREEMENT This AGREEMENT contains the entire agreement of the parties with respect to the matters covered by this AGREEMENT, and no other agreement, statement or promise made by any party which is not contained in this AGREEMENT shall be binding or valid. ARTICLE 24 - GOVERNING LAW This AGREEMENT shall be governed by, construed and enforced in accordance with the la%,s of the State of Alaska. The terms of this AGREEMENT are subject in all respects to the Chartsr and Code of Ordinances of CITY in effect on the date of this AGREEMENT, including without limitation, Chapter 7.05 of the Seward City Code. ARTICLE 25- PARTIAL INVALIDITY If any provision of this AGREEMENT 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 26 - RELATIONSHIP OF PARTIES Nothing contained in this AGREEMENT shall be deemed or construed by the parties or by any third person to create the relationship of employer and employee or 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 AGREEMENT nor any acts of the parties, shall be deemed to create any relationship between CITY and LESSEE other than the relationship of lessee and CITY. 14 348 ARTICLE 27 - INTERPRETATION The language in all parts of this AGREEMENT 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 assistance of counsel in drafting and reviewing this AGREEMENT. ARTICLE 28 - CAPTIONS Captions of the articles, paragraphs and subparagraphs of this AGREEMENT 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 provisio-is of this AGREEMENT. ARTICLE 29 - AMENDMENT This AGREEMENT is not subject to amendment except in writing executed by both parties hereto. ARTICLE 30 - 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 Seward, Alaska 99664 All notices, demands or requests from CITY to LESSEE shall be given to LESSEE at the following address: Kenai Mountains Public Broadcasting, Inc. P.O. Box 816 Seward, Alaska 99664 Each party shall have the right, from time to time, to designate a different address by notice given in conformity with this Article. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the IF, 349 dates herein set forth. CITY: CITY OF SEWARD By: Janette Bower ITS: City Manager Date: ATTEST: Brenda Ballou City Clerk LESSEE: KENAI MOUNTAINS PUBLIC BROADCASTING, INC. By. // ITS: ✓[i p7lN . HN • / �OYNfR xS avb / //y•s�- Date: 4� O 707-5 l4� l�a-e L lqo 4� v-1 MAE L. SILOOK (City Seal) Notary Public State of Alaska My Commission Expires Apr 7, 2026 STATE OF ALASKA ) )SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this day of , 2022, before me, fie undersigned, a Notary Public in and for the State of Alaska, personally appeared , known to me and to me known to be the city manager for t ►e City of Seward, Alaska, and authorized to execute documents on its behalf, and is the individ►. 31 named in and who executed the foregoing document on behalf of the City of Seward for the us s and purposes therein set forth. WITNESS my hand and notarial seal the day and year first herein above written. 16 350 Notary Public in and for Alaska My Commission Expires: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this 7 1 day of VIU1 GI , 2025, before me, the ndersigned, a ry Public in and for the State of Alaska, personall appeared d , known to me and to me known to be the ti of Kenai Mountain4 Public Broadcasting, Inc. and authorized to execute docbments on its behalf, and is the individual named in and who executed the foregoing document on behalf of the Corporatior for the uses and purposes therein set forth. WITNESS my hand and notarial seal the day and year herein above written. -P&Z rZ� a Notary Public in and for Al ska My Commission Expires: Y! /71 v�O 17 351 Legislation Modification Tracking Legislation Creator: Shannon Thorne Department: Administration Title: Approving an Agreement with Kenai Mountain Public Media, Inc. for Joint Use of the City's Satellite Receiving Dish, Equipment Shelter and Tower Located on Lots 9, 10, and 11 Block 16, Original Townsite of Seward For FM Radio Receiving and Transmitting Purposes u Action Memorandum X Resolution u Ordinance Executive Assistant Assistant City Manager Fixed a few grammatical issues in the Agenda Statement Added a comma to a sentence the Resolution. Added ""0" to the ""total amount of funds" in the Agenda Statement Finance Department City Manager Kai: February 2023 February 2023 March 2023 SuMo TuWe Th Fr Sa SuMo TuWe Th Fr Sa 1 2 3 4 1 2 3 4 5 6 7 8 9 10 11 5 6 7 8 9 10 11 12 13 14 15 16 17 18 12 13 14 15 16 17 18 19 20 21 22 23 24 25 19 20 21 22 23 24 25 26 27 28 26 27 28 29 30 31 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Jan 29 30 31 Feb 1 2 3 4 12:00pm PACAB --Wg 5 6 7 8 9 10 11 6:OOpm CC Spc Mtg (Executive Session City 7:00pm P&Z - Meeting Mgr Evaluti 12 13 14 15 16 17 18 7:00pm CC Mtg 7:00am KPB 12:00pm PACAB (Council Mayor Special Mtg Election (Ordinance (Council 2023-XXX Chapter 2.30 Boards & 19 20 21 22 23 24 25 Holiday - 6:00pm P&Z President's Work Session (Council 26 28 Mar 1 2 3 4 (7:00pmCC Mtg C.ha... Council Calendar 1 2/8/2023 4:12 PM 353 March 2023 March 2023 April SuMo TuWe Th Fr Sa SuMo TuWe Th Th Fr Sa 1 2 3 4 1 5 6 7 8 91011 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 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Feb 26 27 28 1 2 3 4 (12:00pmPACAB g 5 6 7 8 9 10 11 7:OOpm P&Z Meeting_.... 12 3 14 15 16 17 18 30pm CC Spc Mtg - Pub Wx Facility (7:00pm CC Mtg (Council 19 20 21 22 23 24 25 6:OOpm P&Z Work Session (Council 26 27 28 29 30 31 Apr 1 Holiday - 7:OOpm CC Mtg ..ha.. Council Calendar 2 2/8/2023 4:12 PM 354 April 2023 May 2023 April 2023 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 SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY Mar 26 27 28 29 30 31 Apr 1 2 3 4 5 6 7 8 7:OOpm P&Z 12:OOpm PACAB Meeting Mtg 9 10 11 12 13 14 15 7:OOpm CC Mtg 6:OOpm HPC (Council Work Session Chambers) 7:OOpm HPC Regular Meeting (Council Chamber) 16 17 18 19 20 21 22 6:OOpm P&Z Work Session (Council Chambers) 23 24 25 26 27 28 29 7:OOpm CC Mtg (Chambers) 30 May 1 2 3 4 5 6 Council Calendar 3 2/8/2023 4:12 PM 355